
Hyderabad, renowned for its rich culinary heritage, is experiencing growth in restaurants and a shift in its dining habits.
According to the India Food Services Report (IFSR) 2024 by the National Restaurant Association of India (NRAI), the city’s residents dine out or order approximately seven times a month, slightly below the national average of eight.
Evolution of Hyderabad’s Dining Habits
Social occasions, family gatherings, and meetups with friends are key factors driving the city’s dining-out culture. Hyderabadis also enjoy pairing their visits to restaurants with outings, such as watching movies, and are eager to explore new cuisines and food outlets.
Reasons for dining out area:
- Get-together with family, friends (28.9 percent)
- Before or after a movie at theatre (19.3 percent)
- Festival or national holidays (19.3 percent)
- Birthdays, anniversaries, promotions (19.3 percent)
- Trying out new outlets (13.3 percent)
While traditional South Indian and North Indian cuisines remain popular during dining out in Hyderabad, the city’s palate is diversifying. Western cuisines, including American, Mexican, and Italian, are gaining popularity alongside classic Chinese dishes.
With over 74,000 eateries—spanning both organized and unorganized sectors—Hyderabad’s food services sector is booming. The city’s organized food industry alone is valued at Rs 10,161 crore, making it the fifth-largest in India.
40 thousand organized restaurants in Hyderabad
Hyderabad is home to more than 40,000 organized restaurants, including a significant share of cloud kitchens, which account for 40 percent of the market. These cloud kitchens cater to the growing demand for quick and convenient food delivery.
However, the rise in dining out in Hyderabad brings with it health challenges. Frequent consumption of outside food, if not handled properly, can lead to foodborne illnesses. Issues such as improper storage, substandard cooking practices, and inadequate hygiene standards in some establishments pose significant risks.
Moreover, regular indulgence in calorie-rich restaurant meals can contribute to weight gain, obesity, and related health problems, prompting experts to advise moderation in dining out.