The figures for 2019 are expected to be way much higher. Bars and pubs have grown faster than cafes over the past two years driven by younger consumers, competitive pricing and a proliferation of options. Bars and pubs as a category grew 23.5% against 21.6% in cafes in 2014-16. Also, a vast number of pubs, breweries, microbreweries, and bars have opened across markets, while there has been a stagnation in the number of specialised coffee stores being set up by organized players. The consumer segment frequenting cafes and bars is mainly in the age group of 18-35 years. “This is the primary workforce of the country, with higher disposable incomes, fast-paced lives, and consumers who are more comfortable with the idea of grabbing a quick lunch, dinner, or drink.

Other industry data points to a similar trend. According to an NRAI – Technopak report for 2013-16, cafes serving coffee and tea have seen a compounded annual growth rate of 6.9% for standalone and 5.9% for chains during 2013-16. In contrast, pubs, bars, liquor-serving cafes and lounges (PBCL) have witnessed the highest compounded annual growth rate at 25.4%. The report adds that while overall cafe revenues jumped from Rs 5,915 crore to Rs 7,175 crore, the PBCL segment grew from Rs 8,955 crore to Rs 11,545 crore during 2013-16. In terms of outlets spread across urban India, the PBCL numbers have gone up from around 5,300 in 2013 to around 6,700 in 2016. – Euromonitor.