Research Paper

"Average Spending Per Week on

Eating Out"

Malvika Bansal
April, 2019
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A Research Paper
On
"Average Spending Per Week on Eating Out"

Submitted for partial fulfillment of requirement for the

award of degree of
MBA International Hotel & Restaurant Management
Le Cordon Bleu, GD Goenka University, Gurgaon (2018-
2020)

Supervision By: Ms. Nidhi Nayna Submitted by: Malvika Bansal

Name of the Guide: Ms. Nidhi Nayna Roll No.:
Designation: Assistant Professor MBA International Hotel &
Department: Hospitality Restaurant Management Sem II

GD Goenka University,
Gurgaon, Haryana 122 103
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Declarataion

I the undersigned solemnly declare that the report of the project work entitled

"Average Spending Per Week on Eating Out", is based my own work carried out

during the course of my study under the supervision of Ms. Nidhi Nayna.

I assert that the statements made and conclusions drawn are an outcome of the

project work. I further declare that to the best of my knowledge and belief that the

project report does not contain any part of any work which has been submitted for

the award of any other degree/diploma/certificate in this University or any other

University.

Signature: ____________

Submitted by: Malvika Bansal

Roll No.:

MBA International Hotel &

Restaurant Management Sem II

 Page 4

Certificate by Supervisor

This to certify that the research paper submitted is the outcome of the project work

entitled "Average Spending Per Week on Eating Out" carried out by Malvika Bansal

bearing RollNo.:............ & Enrollment No.:........... Carried by under my guidance

and supervision for the award of Degree in MBA International Hotel & Restaurant

Management.

To the best of the my knowledge the report

i)  Embodies the work of the candidate him/herself,

ii)  Has duly been completed,

iii)  Fulfils the requirement of the ordinance relating to the MBA degree of the

University and

iv)  Is up to the desired standard for the purpose of which is submitted.

Signature: ____________
Supervision By: Ms. Nidhi Nayna
Designation: Assistant Professor
Department: Hospitality
 Page 5

Certificate by Guide

This to certify that the research paper submitted is the outcome of the project work

entitled "Average Spending Per Week on Eating Out" carried out by Malvika Bansal

bearing RollNo.:............ & Enrollment No.:........... Carried by under my guidance

and supervision for the award of Degree in MBA International Hotel & Restaurant

Management.

To the best of the my knowledge the report

i)  Embodies the work of the candidate him/herself,

ii)  Has duly been completed,

iii)  Fulfils the requirement of the ordinance relating to the MBA degree of the

University and

iv)  Is up to the desired standard for the purpose of which is submitted.

Signature: ____________
Name of the Guide: Ms. Nidhi Nayna
Designation: Assistant Professor
Department: Hospitality
 Page 6

Acknowledgement

I would like to acknowledge the contribution of my

guide and professor, Ms. Nidhi Nayna, Assistant

Professor for giign me an opportunity to do this

project. I would like to extend my warm gratitude to her

for her guidance and searing endeavour throughout the

project. 

The project has been a source of great learning for me

and gave me access to the data through primary

research, and allowed me to understand

the consumption patterns and trends and what shapes

such behaviour. 

I am delighted to present my research project on

"Average Spending Per Week on Eating Out" and my

thoughts on the same. 

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Research Proposal

The topic for research in this research project is “Average

Spending Per Week on Eating Out”.

The objective behind doing this research is to find out the

following:

Average Spending Per Week on Eating Out

Change in the spending trends and lifestyle of people

Average Spending Per Week on Alcoholic Beverages

Popularity Comparison of Different Types of Food

Outlets
 Page 8

ABSTRACT
The paper reviews the average In the urban India today, among

spending of different the city folks, there has been a

individuals, from different rising culture of wanting to go

professions and age groups, on out to eat, drink and “hang out”

eating out per week. It goes on with the family, friends,

to trace the impact of lifestyle colleagues and even make new

changes and sending power on acquaintances.

the level of disposable income

people are exposed to and The spending power is

willing to spend. increasing and so is the

disposable income, on a more

The paper also strives to find dispersed level capturing a

out the popularity of different greater percentage of the

types of food outlets, from a society, in contrast to the

cafe to a bar, among people of concentration of such spending

varied age groups and power in the previous years. 

professions, from the sample.

This has attracted an ever

The urban population, majorly increasing number of food

youth (age 20-30), hailing in outlets, of varied types,

the cities have been taken as a targeting different groups in the

sample for the review of the population. Such influx has

project and its various given the people the choice,

questions.  which we will observe in the

study, which people tend to

make based on their age and

profession.
 Page 9

The trends are changing in the

market and we see a

considerable influence of the

western culture on the choices

people make. There is a greater

acceptability of the drinking

culture and its consumption has

become accessible like never

before.

Profession

Restaurants

Urban Popultion

KEY WORDS:
Bar: where drinks or
refreshments are served
Disposable income: income
remaining after deduction of
taxes and social security
charges, available to be spent or
saved as one wishes.
Lifestyle: the way in which a
person lives.
Profession: a paid occupation,
especially one that involves prolonged
training and a formal qualification.
Restaurants: a place where people pay
to sit and eat meals that are cooked and
served on the premises.
Urban Population: in, relating to, or
characteristic of a town or city.
CONTENTS
"AVERAGE SPENDING PER WEEK ON EATING OUT"

11
Introduction

i. Weekend culture

ii. Family structure

iii. Youth population

iv. Technology

18 Metholodology

19 Data Anlysis & Interpretation

30 Conclusion

31 Appendix

32 Recommendation

33 References

APRIL, 2019
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INTRODUCTION

In India, the urban population is mainly

WEEKEND CULTURE
characterised by the impressive

percentage of the youth, age 20-30 and We have witnessed a rising culture of

30-40, among the entire population.  “weekends”. As the percentage of

This youth population has been working population is increasing, in leu

exposed to the world of  globalisation of greater number of women working,

that has brought about great levels of better education and increasing

urbanisation, effects of which can be opportunities from the global market

seen by the choices that they make and collaborations, people feel the need to

the embodiment of a great influx of take time out for themselves and their

hospitality units as a result.  family and friends. 

The hospitality industry is on its rise The hospitality industry has been quick

and at one of the highest levels than on its toes to flood the market and

ever encountered before. The demand facilitate such socialising in a

is increasing and so is the supply. This community based setup, with services

has made the market a rather set out for general and customisation. 

homogeneous market, not restricted to

exclusive major players. The market

has become dynamic and everyday, we

see that while a new food outlet comes

up, two other shut down.

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20%

15%

10%

5%

0%
2016 2025

Elite

40%

30%

20%

10%

0%
2016 2025

Affluent
 Page 13

The industry has facilitated the

FAMILY STRUCTURE
accessibility and ease by taking over

the task of provision of food, There is a shift in the family structure.

ambience, and service, while this While initially, India was characterised

population that craves comfort and by the great percentage of the set up of

luxury, is being provided so. Joint-Families, it has been witnessed

that there is a drastic shift in the same

“About 40% of India’s population will to adaptation of more number of

be living in urban areas by 2025, and nuclear families, especially in the

city dwellers will account for more urban cities.

than 60% of consumption.

Expenditures in these cities are already “The proportion of nuclear

rising by nearly 14% a year, while households, which has been on the rise

consumer spending in India’s biggest during the past two decades, has

cities is increasing at about 12% a reached 70% and is projected to

year. Consumers in these cities behave increase to 74% by 2025. This ongoing

differently from big-city consumers.” shift is significant to marketers because

by The Boston Consulting Group’s nuclear families spend 20% to 30%

(BCG) Center for Customer Insight more per capita than joint families.” by

(CCI). The Boston Consulting Group’s (BCG)

Center for Customer Insight (CCI).

 Page 14

It is not a surprise to note that people in

YOUTH POPULATION
nuclear families tend to spend more on

luxuries and comforts, as opposed to “The country has the youngest median

people residing in Joint families. age (27.6 years) currently, among

the BRICS nations and major global

One of the distinguishing features of economies. With an estimated median

the same, especially among the urban age of 29.7 years in 2030, it would

masses, is the need and desire to keep continue to be the leader in that

up with their social positioning, status domain.” By KPMG India’s Food

and the need to socialise to feel a part Service Industry: Growth Recipe;

of the community.  Consumer Markets. 

We see new social trends coming into A great number of the youth population

the market everyday, and that has in the cities comprise of students and

shaped the pattern and composition of job seekers from the developing cities,

consumption in the society. towns and rural areas. Along with that,

the youth population comprises of

Such shifts in the family structure, people from mostly nuclear families.

social trends, and need to sustain and The youth population is liberal and

aspire for social positioning, has given being exposed to the produce of global

rise to increasing expenditure and interaction, is more dynamic and open

modified consumption patterns on the to try new things. 

part of the society at large and

differential groups and classes.

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In the hospitality industry, we have This has resulted in a steep increase of

observed that while the people in the food outlets serving alcohol in the

urban areas, like never before.

age group of above 40 years still prefer

to try cuisines they have been more

This access has been further
comfortable with, the youth population
necessitated by the acceptability on the
seems to be demanding to try new
side of the family, on the attempt of 
cuisines and more innovative set ups in
keeping up with the changing liberal

terms of ambience, service, location, urban society.

presentation and alcohol. 

Among the youth, eating out and

TECHNOLOGY
drinking on the weekends is a
The use of technology and social media
population notion and a given aspect of
has widened the horizons and opened
their lifestyle, as oppose to the older
new avenues, which has affected how
popular belief of “occasional
the consumers spend.
indulgence”. It is a steady and

significant part of how they make a

“Already, a rising number of
choice of socialising and being a part
consumers in all segments are using the
of the community.
internet as their first port of call in

framing and driving their purchase

With further liberalisation and greater
decisions,” said Kanika Sanghi, a BCG
exposure, there has been a rise in the
principal and report coauthor. “Our
demand for pubs, bars and restaurants
research found that about 70% of those
serving alcohol, from the youth
who have access to the internet go 
population.
 Page 16

online to make informed purchase Hospitality units are increasingly using

decisions. As consumers get more social media and technology  to reach

comfortable with digital capabilities, out to the masses and show what they

their usage patterns exhibit growth that have to offer.

belies age and other demographic

variables.” With an exhibition of that scale, the

competition is ever increasing. While

Hospitality units are increasingly using the customers have an endless range of

social media and technology  to reach options to choose from, having spoilt

out to the masses and show what they for choice and experimentation, the

have to offer. With an exhibition of hospitality units are under searing

that scale, the competition is ever pressure to outperform the competition

increasing. While the customers have and think two steps ahead. 

an endless range of options to choose

from, having spoilt for choice and Technology and social media has

experimentation, the hospitality units brought these scattered food outlets

are under searing pressure to into a single platform, creating a one

outperform the competition and think place marketplace to a plethora of

two steps ahead.  options.

Technology and social media has Specialisation is on the rise and

brought these scattered food outlets hospitality units are working under

into a single platform, creating a one stress day in and day out, to offer an

place marketplace to a plethora of experience that outweighs what’s

options. already available in the market.

 Page 17

This can be traced further down in our

study, where we see how people spend

on different types of outlets. The

choice that people make are now

extensively based on the trends in the

market and how technology brings it to

their knowledge. 

“Social media is a cost-effective

approach and provides the advantage

of instant reach for food services

brands to effectively market

themselves. Various Indian food

service operators are making use of the

social media to communicate offers,

incentives, product information and

promotions. Several food service

brands have introduced innovative

campaigns on social media to lure

customers to their outlets and increase

their footfall.” By KPMG India’s Food

Service Industry: Growth Recipe;

Consumer Markets.
 Page 18

METHODOLOGY

It is a survey research method eating/drinking out, and some other

collecting actual facts and figures. It is facts about the preference of groups

descriptive in nature using both they want to be eating out with.

primary and secondary data. Secondary

data is used to conceptualize the Secondary data:

spending pattern, urban population, Secondary data were collected through

youth and effects of social media and various sources such as Website

technology. Primary data is used to reports, research papers, etc.

collect actual scenario regarding the

average spending per week on eating Sample Size:

out and the type of food outlets they The researcher had framed a

prefer to visit more. questionnaire containing 10 questions

and distributed it through the medium

Types of Data: of Whatsapp to share the form and

collect data. The integrity of privacy

Primary data: was thoroughly maintained. The

the researcher had collected the sample size was approximately 86. The

primary data through structured target population for the sample was

questionnaire methods. Primary data from the urban areas in particular, and

includes the type of customer mostly comprised of the youth.

(Individual), profession, age group

and  type of spending, no of times opt

for 
 Page 19

DATA ANALYSIS & INTERPRETATION

40 years &
31-40 above
years 7%
1.2%
15-20
years
25.6%

21-30
years
66.3%

Age

The major portion of the This was followed by people

sample population of the
research's primary data
was predominantly the Youth
Population, in the age group
of 21-30 years.
in the age group of 15-20
years. The sruvey was
limited as it didn't have
much access to the older
crowd, in the age of 31 and
above.
 Page 20

Othe
r
8.1%

Busines
s
11.6%

Job
15.1
%

Studen
t
65.1%

Profession

Students dominated the study they have access to. A

of the research sample, at
65.1%. This allowed access to
understand in deeper insight
the consumption patter of the
youth crowd and the
disposable income that
major portion of the student
sample stay away from
home and hail from
developing parts of the
country.

Don't go out that
Once in a
month
8.1%
More than
once
65.1%
Going out in a week
About 65% people go out
more than once in a month,
while 24% go out just once in
a week. The percentage of
people choosing to not go out
that often or merely once in a
month is a staggering total of
10% only. This means that
these people, majorly the
Page 21
often
2.3%
Once
24.4
%
youth population, as we
have established from the
previous data in this paper,
go out more than 4-5 times
in a month. This shows a
changing trend towards
lifestyle and how people
choose to socialise.
 Page 22

60%

40%

20%

0%
b
af

s lu
ou
C

/c

ts d
ith
e

ut oo
bs
r h/w

O tF
Pu

le
s
ba wit

Fa
ts
an
ur
ta
es
R

Preference of food outlets

From the graph above, it is difficult Customers are spoilt for choice

to conclude which type of outlet is with an endless plethora of options

most preferred by the sample and the to choose from. 

population at large. 

As is the case of the sample study,

For the findings of this objective, the when consumers are given an

sample was given a choice to make option to make multiple choices,

multiple choices from the above 4 they will end up choosing more

categories.  than one. 

Interestingly, that is the present What is noteworthy from this data

scenario of the market we live in. analysis is that, keeping in mind

 Page 23

Preference of food outlets

the majority percentage of Cafe has gone on to become

population sample is the Youth. "gourmet" and "speciality",

catering to the ever changing

This allows us to understand that, trends in the market, from vegan to

with the global interactions organic and so forth. 

and collaborations, as the market gets

flooded with options, the youth is Restaurants with/without bar:

spoilt for choice. The youth is While the bars were initially only

making multiple choices and is open exclusive to 5-star or luxury

to try new things and new places.  restaurants or pubs/clubs, we today

see a rise in the adaptation of bar

While the presence of these options by almost every. restaurant.

has open a myriad of choices of Restaurants would never go out of

decision making and framed the fashion. It requires huge

consumption pattern. It is quite investment and efforts are made

interesting to note that the youth is extensively to sustain and grow in

the lever for the increase in the the market.

market demand and expanding the

market for ore such new ventures to Pubs/Clubs:

settle in. This is the new model of

"socialising". As significant has

Cafe: Sunday Church been to the

The culture of cafe has taken the Catholics for community, so has

market by storm. What we knew as a the pubs/clubs become integral to

conventional cafe serving coffee and socialising and networking.

make ahead snacks, has now become

the biggest competitior of the There is increasingly

restaurants and clubs. greater acceptability of pubs and

clubs.  
 Page 24

Preference of food outlets

Fast Food Restaurants: bringing forth regional produce

It is not surprising to note the and reviving regional tastes. 

popularity of the Fast Food Outlets,

given the major chunk of the sample A classic example is the increasing

population is dominated by the youth popularity of Chaayos and

crowd, owing to its features such as: Nukkadwala. 

easy accessibility, cheap pricing,

greater options, fast service, etc.  Even packaged foods and sweets

giants, Bikanervala and Haldirams

However, it is also striking to have captured the market greatly

observe that there has been a shift by giving hygienic street food and

away from the consumption of fast regional delicacies at cheap prices,

food as people are becoming more while giving good air conditioned

conscious and aware of their health outlets and seating arrangements. 

and the impact of consumption of

such food products. 

There has been notably a shift

towards more healthier options of

fast food, with fading levels of

income of previously more popular

food joints such as CCD, Barista,

McDonalds, etc. to Starbucks,

Nukkadwala, etc.

The Indian Fast Food Industry has

seen a rapid growth in the

introduction of more Indian QSRs

 Page 25

Don't go out that

often
Once in a 2.3%
month
11.6% Once
24.4
%

More than
once
61.7%
Going out with friends

It can be observed that a -lising more often with

majority of population prefer
going out on the weekends
with their friends at least once.
This is due to the changing
trends which calls for socio-
friends, which is in deep
contrast to how people
preferred going out mostly
with their family.
Friends, here, also
significantly include the
colleagues.
 Page 26

Almost
never
2.6%

Once
Don't go out that
42.9
often
%
39%

More than
once
15.6%
Going out with family

It is interesting to observe the One of the prime reasons is

shift in lifestyle choices that
people make.
About 50% of the sample
population does not go out
with faily that often or almost
never.
the feature that majority of
the youth in the sample stay
away from home.
Also, there is an increasing
disassociation from the
family, in the recent times.
 Page 27

60%

40%

20%

0%
Less than 500 500-1500 1500-2500 More than 2500

Average Spending in one

outing

Approximately 60% of the consumption pattern of the market

population spends in the price range today. Increasing number of

of 500-1500 in one single outing. people are choosing to spend their

disposable income on luxuries and

A major chunk of this population comfort of eating out. 

goes out more than once in a

week. This makes for about 8000- This is also because of the social

10,000 in a month exclusively on trends that rule the way people

eating out.  socialise and how they spend. 

This sheds light on the increase in the

disposable income and also the

 Page 28

40%

30%

20%

10%

0%
Less than 500 500-1500 1500-2500 More than 2500

Average Spending in one

week

Here, in the case of spending per 2500 and above.

week on an average, we can observe

that on an average, people spending This sheds light on the increase in

in the range of 1500-2500.  the disposable income and

lifestyle. The urban population, as

Almost 40% population is spending is the sample in predominance, is

on an average of 500-1500 per week more open to spend on their

on merely eating outside.  lifestyle and socialising, while

feeding their desire to explore new

Strikingly, a cuisines and what the market has

great percentage of population is to offer. 

spending extensively in the range of 

 Page 29

500-
1000
24.4%

Don't
drink
47.7%

1000-
2000
16.3%

2000 and
above
11.6%
Composition of alcohol

expenditure

We can observe from this chart that The urban culture has increasingly

on an average, people are spending in adapted the drinking culture and

the price range of 500-1500, giving become more acceptable about it. 

us a median of 1500 on alcohol

alone.  This has given rise to greater

number of food outlets serving

It is starking to note that alcohol to the consumers, and is at

approximately 52% of the population its heights, like never before. 

is the drinking population, in contrast

to, say, 5 years ago when

the percentage was not so hefty. 

 Page 30

CONCLUSION

Concluding, we observe the changing As consumers are demanding more

trends in the market and the sustained accessibility of new cuisines, luxury

impact of the wester culture on the services and ambience, it has given rise

urban youth and urban families. to a whole new avenue of marketplace

for the hospitality industry units to

We see an an impressive increase in the capitalise on. 

disposable income of not just families

in totality but also individually the However, with such rapid social trends,

youth of the family.  there is also a hanging threat of

obsolete, and we see food

Neutral families are on the rise, with an ventures shutting down every single

inclusive working women professionals day. 

in the market domain. 

The youth population is the lever for

People are becoming more wiling to the social trends in the marketplace and

spend money on lifestyle and luxuries, determines the type and number of

and a major repetitive chunk of that food ventures to enter and sustain in

goes on eating and drinking outside.  the market. 

The demand is ever increasing and to

keep up with this searing demand,

hospitality industry is striving

extensively to meet up. But the trends

are changing everyday, with increased

exposure through global

interactions, collaborations and

technology, and social media. 

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APPENDIX

https://docs.google.com/forms/d/10LxZJ7UTX-

Cdzy1T9ujyIO3CnwwZM3MNB_UkuUetDvE/edit#responses
 Page 32

RECOMMENDATION

The scope of the study has been limited to the urban population, extensively in

Delhi NCR and Mumbai. 

The consumption and social trends and pattern differ from each city to the

other, on account of varied lifestyle demands, disposable income, etc.

This research project can seek to offer data for comparison between the

researched cities and any other city or town in Tier2 or Tier3 cities, to procure

findings and interpretations on different spending styles and "average sending

per week on eating out"

There may be a significant difference when compared so with the Tier3 cities

and the less developed towns in India.

 Page 33

REFERENCES

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%20issue/ICGTETM- en/news/2017/06/shifting-

2016/ICGTETM_2016_paper_95.p consumer-habits-behind-growth-in-

df eating

https://www.bcg.com/d/press/21mar https://www.smergers.com/industry

ch2017-new-indian-changing- -watch/indian-restaurant-industry/

consumer-149010

https://assets.kpmg/content/dam/kp

mg/in/pdf/2016/11/Indias-food-

service.pdf

https://www.goldmansachs.com/insi

ghts/pages/macroeconomic-

insights-folder/rise-of-the-india-

consumer/report.pdf

https://www.goldmansachs.com/insi

ghts/pages/macroeconomic-

insights-folder/rise-of-the-india-

consumer/report.pdf

http://www.ijsrp.org/research-

paper-0214/ijsrp-p26116.pdf