Indian restaurant chains, including Daryaganj and Wow! Momo, are targeting a 3-7% quarterly revenue boost by expanding into home catering and premium party boxes. With per-person event spending rising up to 22%, companies are moving beyond traditional dine-in models to capture bulk orders from private and corporate gatherings.
Restaurants in India are shifting their business focus this festive season, moving aggressively toward home catering and curated party packages to capture higher demand. Major food service brands, such as Daryaganj, Ishaara, and Wow! Momo, are promoting customized menus and bulk delivery options to attract customers who prefer hosting private celebrations over dining out. This strategic pivot aims to deliver a 3% to 7% growth in overall business for the December quarter.
Strategy to Capture Higher Event Spending
The industry is responding to a noticeable change in consumer behavior, where per-person spending for private events has increased by up to 22% compared to the previous year. Operators are designing specific packages for groups ranging from 30 to 120 guests to ensure they capture this high-value spending. By moving away from traditional dine-in models, restaurants hope to improve their revenue per customer. Some premium event packages are now commanding as much as ₹5,500 per person.
For delivery-focused chains, this means scaling their logistics networks to handle large, complex orders. Delivery volumes for these premium, multi-person orders in cities like Gurugram and Noida are expected to climb between 20% and 30% during the Diwali period.
Challenges to Profitability
While the focus on bulk catering can improve average order values, it also introduces specific operational risks. Restaurants must manage increased logistical costs, labor demands, and the potential impact of food price inflation. The final impact on bottom-line profitability will depend on how efficiently companies can execute these large-scale orders without sacrificing quality or service speed.
The broader Indian food services market remains large and growing, with the National Restaurant Association of India valuing the sector at ₹5.69 trillion in FY24, potentially reaching ₹7.76 trillion by FY28. However, the success of this catering pivot will depend on whether chains can effectively manage the overhead costs associated with these large-scale, chef-curated experiences.
Investors tracking the sector will monitor how these catering strategies impact quarterly profit margins. Key indicators include the company’s ability to handle delivery logistics during peak demand, the stability of raw material costs, and whether these festive catering models can generate repeat revenue beyond the peak holiday season.