India loves to eat out — the rise and proliferation of QSR (quick service restaurant) outlets and fast food chains is a clear indicator. According to a report from ResearchAndMarkets, the QSR market in India India was valued at approx ₹172 Bn in FY22 and is expected to touch ₹431 billion in FY27, with a CAGR (compound annual growth rate) of 20.47% during the FY22-FY27 forecast period. The report also highlights how this segment is highly consolidated, with a handful of global brands maintaining a strong presence through their extensive network of physical outlets. Their overall share (as of FY22) stands at 44%, contributing 53% to the total revenue of the QSR chain market.
The segment is typically viewed through the lens of these multi-national consumer giants like Jubilant FoodWorks (Domino’s), Westlife Foodworld (McDonald’s), and Devyani International (KFC, Pizza Hut, Costa Coffee). While they bring the brand name, it’s the smaller companies in the supply chain that help put these brands put their food on a tray. Here’s how a handful of smallcaps like Chatha Foods, Mrs. Bectors Food Specialities, and Hatsun Agro Product, have become an integral part of India’s fast-food ecosystem.
How QSR chains work
Global QSR chains require operational agility and regular supply and work on a highly standardised, asset-light model, where most core ingredients are sourced from specialised third-party suppliers and not produced in-house. Ingredients are sourced from specialised vendors and distributed centrally, while restaurants focus on the final preparation and service.
Brands like McDonald’s and Domino’s rely on a multi-tier vendor ecosystem, including suppliers for proteins (like chicken and meat), bakery inputs (burger buns and pizza bases), dairy, sauces, and packaging. But they retain control over quality checks, final assembly, and customer experience at the store level. This model allows QSR brands to scale rapidly while maintaining consistency across locations.
McDonald’s India, for example, sources domestically and works with multiple local suppliers to ensure global standards, while Domino’s follows a similar commissary-led/central kitchen system where ingredients are centrally processed and distributed to outlets.
As global and domestic QSR chains expand deeper into India, they are increasingly dependent on reliable, scalable, and compliant domestic suppliers, creating a big opportunity for small caps. Here is a look at three companies that make their way into millions of QSR orders across India on a daily basis.
Chatha Foods: The Food Processing Pros
Chatha Foods Limited manufactures frozen and RTE (ready-to-eat) processed foods. They operate a B2B model catering to QSRs, cafes, and institutional clients in India. They supply to major global QSR chains including Domino’s and Subway as well as Indian chains like Cafe Coffee Day and Burger Singh.
- Headquarters: Mohali, Punjab
- Product portfolio: Flat breads and tortillas, frozen ready-to-fry snacks, retort rice (shelf-stable, ready-to-eat cooked rice), base gravies and pastes, chicken wings and nuggets, chicken fingers, kebabs, pizza and sandwich fillings, burger patties, cold cuts and sausages.
- USP: Chatha Foods specialises in a complex category: protein-based QSR inputs, and they are able to customise products to global specifications. As Domino’s and other chains expand stores across India, the demand for standardised frozen inputs also rises — and with QSR supply contracts being long-term and heavy on specifications, vendors like Chatha Foods become deeply embedded in the supply chain and stand to gain.
Mrs Bector’s: Buns, Bases, and Biscuits
We’ve written about Mrs Bector’s before, but the company demands mention here because they manufacture biscuits and bakery products. Their products are sold B2C under the Mrs. Bector’s Cremica and Mrs. Bector’s English Oven brands, but a notable portion of their business comes from the B2B side. The company is a leading institutional supplier, partnering with major QSR chains like McDonald’s, Domino’s, KFC, and Subway for bakery needs and institutional bakery contributes about 11-12% of overall revenue.
- Headquarters: Ludhiana, Punjab
- Product portfolio: All kinds of biscuits; bakery products including sliced bread, pav, buns, specialty breads like focaccia, muffins, and brownies; ready-to-eat desserts like muffins, fudge brownies, chocolate lava cakes etc.
- USP: Bector’s has a balanced business model, supplying to QSR chains while also selling its own retail products. The company’s long-standing relationship with McDonald’s India has been foundational to its growth. As QSR chains expand, demand for essentials like buns and bread grows with every new outlet, directly benefiting Bector’s.
Hatsun Agro: The Dairy Backbone
Hatsun Agro has been in the dairy business for over 30 years, and is an indirect beneficiary of the QSR system, supplying dairy products like cheese, milk and ice cream. They began their journey with Arun Ice Creams and sell milk, curd and other dairy products under the Arokya brand. While there are no citations of tie-ups with global QSR chains, the company has deep penetration in the HoReCa (Hotels, Restaurants, Cafés) space and a strong distribution-led dairy supply chain.
- Headquarters: Chennai, Tamil Nadu
- Product portfolio: Ice creams; milk variants like curd, ghee, cooking and table butter, lassi, buttermilk, paneer, cheese spread and more; chocolates and premium chocolates under the Havia and Hanobar brands, and an in-house brand for cattle feed and cattle care called Santosa.
- USP: The company has a large manufacturing capacity, operating 20 facilities across Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, and Maharashtra and processing over 4 million litres of milk and milk products everyday. As the QSR segment grows in India, cheese consumption (in pizza chains), milk usage in beverages and desserts, and ice cream demand is likely to go up — and Hatsun may benefit from category-level demand expansion, especially since the company is less dependent on a single institutional client.
India’s QSR growth story isn’t just about adding more outlets, it’s also driven by the supply chain that supports it. Companies like Chatha Foods, Mrs. Bectors Food Specialities, and Hatsun Agro Product don’t need to compete for consumer attention or spend on branding, but they play an important role in every burger, pizza, and dessert served. As India’s QSR market grows over the next decade, these smallcaps are well positioned to scale alongside the ecosystem.
Sources
Food services sector may grow at 8% CAGR in 2024-28: NRAI report – The Economic Times
Dominos CORPORATE STEWARDSHIP REPORT
Mrs Bectors Food Specialities Ltd share price
Hatsun Agro Product Ltd share price