Even as India’s restaurant sector stayed sluggish in Q1 FY25, McDonald’s India flipped the script. After three straight quarters of falling revenue and rising losses, the company reported growth in both revenue and profits, signaling a clear recovery despite tough overall market conditions.
Dining out is getting noticeably costlier, and the post-pandemic “revenge” rush is losing steam. With Q1 results hinting at demand normalisation, restaurants are facing a fresh squeeze from higher costs and customers trading down. The key question: is this the start of flattening restaurant growth—or a temporary pause before recovery?
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The National Restaurants Association of India is again clashing with Swiggy and Zomato, this time over their quick-food café formats built around delivery partners that can prepare and serve in as little as 10 minutes. NRAI claims these concepts harm dining standards and local restaurants, while platforms push speed and scale. The next phase could reshape India’s restaurant ecosystem fast.
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