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By Author
Published on November 25, 2024
India’s Tier-II cities—such as Indore, Surat, Bhopal, and Jabalpur—are fast emerging as the next frontier for food and beverage (F&B) growth. With rapid urbanization, increasing disposable incomes, and evolving consumer tastes, these cities offer a fertile ground for the F&B industry’s expansion. Yet, the pace of development in these regions raises an intriguing question: Are we doing enough to tap into their immense potential?
While Tier-I cities like Mumbai, Delhi, and Bangalore have traditionally been the epicenters of F&B growth, Tier-II cities are no longer playing second fiddle. Rising aspirations and improved connectivity are transforming these cities into thriving urban centers. The middle-class demographic in these areas is keen to embrace organized dining experiences, making them fertile ground for national and global F&B brands.
However, the true appeal lies in the untapped nature of these markets. With less saturation compared to metros, F&B brands can establish a strong foothold and build loyalty early on. Lower operational costs in terms of real estate and labor further enhance the attractiveness of these regions.
Despite their evident potential, the entry of big players into Tier-II markets has been cautious. The reasons are multifaceted—lack of robust infrastructure, limited consumer exposure to niche cuisines, and logistical hurdles. For instance, while cities like Indore and Lucknow have seen the entry of brands like Domino’s and McDonald’s, others like Raipur and Jabalpur remain underserved.
Additionally, the consumer base in Tier-II cities often seeks a delicate balance between affordability and quality. This requires F&B businesses to rework their offerings to suit local preferences without compromising on the brand’s value proposition.
To truly unlock the potential of Tier-II cities, the F&B industry must adopt a nuanced approach. Here are a few suggestions:
Localized Offerings: Understand the regional palate and customize menus to resonate with local tastes. For example, introducing vegetarian-friendly options or flavors rooted in local traditions can help brands connect with consumers.
Hybrid Formats: Instead of large standalone outlets, brands could experiment with smaller kiosks or cloud kitchens to reduce initial investment and operational costs.
Community Engagement: Building trust is essential in these markets. Hosting food festivals, collaborating with local influencers, or supporting community-driven initiatives can help brands establish a strong presence.
Digital-First Strategy: With growing internet penetration, digital platforms can play a crucial role in reaching Tier-II consumers. Brands should focus on targeted social media campaigns, online ordering, and app-based loyalty programs.
Infrastructure Partnerships: Collaborating with local governments to address logistical and infrastructural challenges could pave the way for smoother operations and long-term growth.
India’s Tier-II cities are not just the next big thing—they are the now. As these cities continue to grow, so does their appetite for diverse and high-quality dining experiences. The F&B brands that can innovate, adapt, and connect with these evolving consumers will find themselves at the forefront of a new wave of growth.
At Hospitality News, we believe that embracing this shift is not just an opportunity—it’s a necessity. The road to success in Tier-II markets might be less traveled today, but it’s one that promises immense rewards for those bold enough to take the leap.
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Published on April 23, 2025
On April 22, 2025, a tragic terrorist attack in Pahalgam unfolded at the picturesque Baisaran meadow, a popular spot among tourists in Jammu and Kashmir, India. Unidentified militants opened fire on a group of Indian tourists, leading to the death of at least 24 people and injuring several others. Indian security agencies have officially classified the incident as a terror attack, allegedly carried out by militants opposing India’s presence in the region.
This tragic event marks one of the deadliest attacks on civilians in Kashmir in recent years. The hospitality industry, which has been instrumental in promoting tourism in the region, faces renewed challenges in ensuring the safety and security of visitors.
Pahalgam, known for its scenic beauty and tranquil environment, has long been a favourite among tourists. The attack not only resulted in the loss of innocent lives but also threatens to deter future visitors, impacting local businesses and the broader hospitality sector.
In response to the incident, Indian Prime Minister Narendra Modi condemned the attack and emphasised the government's commitment to combating terrorism. Union Home Minister Amit Shah travelled to Srinagar to assess the situation and coordinate security measures. Authorities have launched a manhunt to apprehend the perpetrators and established a helpline to assist affected tourists.
The attack has drawn widespread condemnation from political leaders and civil society. Chief Minister Omar Abdullah described the incident as "much larger than anything we've seen directed at civilians in recent years." Congress leader Priyanka Gandhi Vadra called it a "crime against humanity," and Defence Minister Rajnath Singh labelled it an "act of cowardice."
Local hospitality businesses are grappling with the aftermath, focusing on supporting victims' families and reassessing security protocols to restore tourist confidence. The incident underscores the need for enhanced safety measures and collaboration between government agencies and the hospitality industry to ensure the well-being of visitors.
As the region mourns the loss of lives, the hospitality sector must navigate the challenges posed by such incidents. Strengthening security, fostering community resilience, and promoting transparent communication are essential steps in rebuilding trust and ensuring that Pahalgam remains a welcoming destination for all.
By Shreenidhi Jagannathan
Published on April 17, 2025
Let’s call it what it is: the walls around luxury are crumbling.
Once upon a time, buying a Hermès Birkin wasn’t just a transaction—it was an event. Waitlists, appointments, subtle flexes of power and privilege. Today? Scroll through TikTok and you’ll find videos of Chinese factories casually assembling what look shockingly similar to the very same bag, selling them directly to consumers—no velvet rope, no gatekeeper, no mystery.
And that’s the real story here.
Luxury, in its traditional sense, was built on scarcity, secrecy, and a certain untouchable status. But with factory workers showcasing craftsmanship on social media, and influencers educating their audiences on how and where to buy these pieces at a fraction of the price—luxury is being democratized. Some might say disrupted. Others might say liberated.
From Chanel to Prada, these brands are now in a vulnerable position. The aura they’ve curated for decades is being peeled back, layer by layer, video by video.
And here’s the kicker: it’s not just about counterfeits anymore. These are often the same factories making goods for the global brands. It’s the direct-to-consumer revolution playing out in real time, and it's reshaping the very essence of what "premium" even means.
Adapt or fade.
Do brands double down on storytelling, heritage, and emotional value? Or do they reimagine what “exclusivity” looks like in a world where a 22-year-old in Delhi or Chengdu can order a Birkin-lookalike straight from a factory for $200?
One thing is certain: luxury is no longer a one-way conversation from Paris and Milan to the world. Thanks to TikTok, China just flipped the script—and everyone’s watching.
Published on February 17, 2025
The Federation of Telangana Chambers of Commerce and Industry (FTCCI), in association with Food Tech and Snack & BakeTec, organized a panel discussion on “Food Processing Industry—Facilitation, Infrastructure & Technology” at Radisson Blu on Thursday night.
The discussion focused on government facilitation, infrastructure development, and technology adoption in the food processing sector.
Dr. E. Vishnu Vardhan Reddy, IFS, Special Secretary, Investment Promotion & External Engagement & VC & MD of Telangana Industrial Infrastructure Corporation (TGIIC), Government of Telangana, was the Chief Guest. The event also featured prominent speakers from government institutions such as APEDA, FSSAI, TGFPS, and TGIIC, along with key industry representatives from Telangana.
Food Processing: A Crucial Growth Driver
Dr. Reddy emphasized that food processing plays a critical role in increasing farmers' incomes by adding value to their produce. “Every government aims to boost farmer earnings, and without developing food processing, this goal may not be achieved,” he stated. He also highlighted post-harvest food grain wastage as a significant concern.
The Telangana government is committed to establishing an industrial zone outside RRR with a focus on the MSME sector, particularly food processing industries. “While the government aims to set up food processing units near the source of raw materials, industries often prefer locations closer to consumers to reduce logistics costs. We are working to maintain a fine balance between these priorities,” Dr. Reddy added. He also encouraged industry stakeholders to engage with the Telangana Food Processing Society, a government initiative supporting the sector.
Opportunities for Growth
India’s food and beverage packaging industry is projected to grow from $33.7 billion in 2023 to $46.3 billion by 2028. The panelists noted that strategic government and industry collaboration could drive sustainable growth in this sector, expanding both domestic and global markets.
The discussion was moderated by Sri S. Chandra Mohan, Chair, Agro and Food Processing Committee, and Managing Director of Sahasra Crop Science Pvt. Ltd. Panelists included:
Sri R. P. Naidu, Regional Director, APEDA, Telangana
Sri K. Balunaik, Deputy Director, FSSAI, Telangana
Smt. G. Sushma, Director (Business Development), TGFPS
Sri G. V. K. Naidu, Founder & CMD, Sam Agritech Limited
Sri Mukunda Jandhyala, CEO, Jandhyala India Foods
The Need for a Robust Food Processing Industry
In his welcome address, Mr. Ravi Kumar, Senior Vice President of FTCCI, underscored the food processing industry’s crucial role in economic development. He pointed out that although India has achieved self-sufficiency in food production, post-harvest losses remain a challenge. Currently, food processing in India accounts for only a small fraction of total agricultural output:
Fruits: 4.5%
Vegetables: 2.7%
Milk: 21.1%
Meat: 34.2%
Fish: 15.4%
“A strong food processing sector, supported by advanced techniques, can reduce waste, enhance value addition, promote crop diversity, increase farmer incomes, create employment, and boost export revenue,” Mr. Kumar noted.
Sri K.K. Maheshwari, Vice President of FTCCI, concluded the event with a vote of thanks.
With increasing focus on technology and infrastructure, the food processing industry in Telangana is poised for transformative growth, driving economic benefits for both farmers and businesses alike.
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