India’s food and beverage (F&B) sector is reshaping the retail real estate landscape at unprecedented scale and speed. Since 2023, the expansion of the organised F&B segment has resulted in nearly 4 million sq ft of retail space leased across more than 1,200 deals in the top seven cities. Driven by urbanisation, rising disposable incomes and evolving consumer tastes, F&B is considered a a crucial category that commands premium space allocation in high streets, shopping malls and business parks.

Dining out has transformed into a social experience, propelled by international brands entering the market and domestic operators rapidly scaling their footprint. Developers and institutional investors are responding by intensifying construction of large-scale destination malls with dedicated F&B zones, reimagining real estate strategies, and supporting the surging demand for versatile dining formats.

The food and beverage segment is a catalyst for transformation across India's organised retail landscape. From premium casual dining and quick service restaurants to beverage cafés and destination breweries, F&B formats are attracting consistent footfall and longer dwell times in both high streets and malls.

Bengaluru, Mumbai, and Delhi NCR led the surge in F&B retail leasing, while specialised developments such as Epicuria in Delhi and 32nd Avenue in Gurugram have set new benchmarks for immersive dining experiences. The expansion extends beyond shopping hubs, with business parks now dedicating up to 10% of their leasable area to F&B outlets, enhancing workplace amenities and asset appeal. These trends are not only driving investor interest but also prompting developers to allocate up to 25% space to F&B in upcoming destination malls. The sector’s trajectory signals robust long-term prospects, making F&B a cornerstone of India’s future retail and experiential spaces.

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