In 2025, loyalty was no longer tied to a restaurant name but rather to categories, experiences, and access convenience, writes Ankur Sharma, Co-founder of Rebel Foods
The food services sector in India was not simply another year of growth in 2025. It was the year when the industry actually started operating as a serious, scalable business rather than a hospitality hobby. I have been a witness to the market maturing, rethinking, and resetting after my more than ten years’ experience of building and scaling internet-first food businesses. The outcomes of this year will be the criteria that determine the winners in 2026 and subsequent years.
The consumer was the most significant source of change by far. The fact that people kept ordering throughout 2025 is the only thing that remained unchanged, but they became much more thoughtful in their behavior. Cheapness was no longer the main factor for value; instead, it was defined by predictability, reliability, and convenience. Consumers insisted on consistent quality, accurate delivery times, and a smooth ordering experience. Loyalty was no longer tied to a restaurant name but rather to categories, experiences, and access convenience. The “trust premium” actually became tangible: consistently delivering brands were the winners, while the others were losing the struggle to retain the attention of consumers. The message for the operators was very clear: the basics are now more important than the marketing noise or the short-term growth spikes.
Channel behaviour was equally as pragmatic. Delivery established itself firmly as the main method of city consumption, not only out of convenience, but because it was compatible with contemporary lifestyles. Extended working days, crowded cities, and changing timetables made delivery the normal way of ordering. Dine-in got back gradually, but only to certain extent. Consumers came back not for every meal but for experiences they could gain fast-casual, beverage-led, or purpose-driven formats. The message was very clear: delivery and dine-in are two sides of the same coin, not rivals. Operators who can handle both with the same level of discipline and efficiency are the ones to succeed in the future.
However, the challenges of 2025 were a trial to the strongest ones among the prepared. Cost of inputs was very unstable – this was the case for milk, oils, fresh fruits and vegetables, proteins, and packaging. The whole industry was affected by the volatility of input costs. It was hard for any procurement system to be very well-structured and at the same time not have to change rapidly. Kitchen staff had to look for more efficient methods of work, make menus less complicated, rationalise SKUs, and tighten portion controls. The level of difficulty became the main enemy of the level of standardisation. Operators who have skillfully used these operational disciplines were able to keep their margins, while some others felt the pressure right away.
If there was one lesson that the industry learned from the year 2025, it would be that supply chain is at the core of the strategy. It was no longer a matter of choice for companies to have dependable supply sources, temperature-controlled logistics, micro-warehousing in tightly packed urban areas, and accurate demand forecasting; these became absolute necessities. Those brands that regarded their supply chains as a means to gain a competitive advantage rather than just another expense account, were the ones that survived the crisis and became stronger. Consistency, the year has shown, is not only something that can be “fronted,” but it is actually created through preparation rooms and cold chains.
Festive 2025 provided a real-life exam. The period was among the most powerful of the last few years, with the need being mainly influenced by more valuable occasions, group orders, late-night consumption, and luxury selections. It was not only the volume that was impressive but also the accuracy that was needed to carry it flawlessly. If the operations were a little off, the effects of the festive weeks could have been wiped out. This pointed to a bigger trend: customers are ready to spend money on these factors if they are assured of them – they want convenience, reliability, and predictable experiences.
By categories, 2025 was mostly about a more developed food appetite. The trend of Indian comfort food continued to be the most popular, however, regional cuisines became more popular as consumers looked for new things within the familiar. The popularity of bowls, combo meals, and complete-meal formats increased because these formats were seen as more valuable. The demand for beverages and snacks increased as the number of non-meal occasions rose, while the better-for-you categories were growing slowly and mostly in urban segments. The consumer was always on the lookout for products that combined convenience, quality, and value and this was true across all formats.
Scaling With Discipline
Looking ahead to 2026, the industry, in my opinion, will be going through a stage of scaling with discipline. The next wave of the food business will be characterised by hybrid models – kitchens preparing food for delivery, takeaway counters, and small dine-in spaces. Tech will be the main driver of this change. By then, predictive demand planning, automated kitchen workflows, AI-enabled routing, and inventory optimisation will not be just pilot experiments but will be the normal operational activities of businesses. However, upgrading with technology only will not make winners. The turnover will be a combination of operational discipline and profound understanding of consumer behaviour.
Just as important is the manner in which innovation is introduced. The industry is evolving from the strategy of releasing a multitude of ideas in the hope of one being successful. Rather, winning will be the result of a handful, very scalable models backed by data, operational efficiency, and true consumer needs. Innovation will concentrate on solving first and foremost problems: providing a convenient meal in less than 30 minutes, keeping the standard across kitchens, and growing the customer base without making quality worse.
2025 was more than just a volatile year, it was a reset. It put to test the assumed things, made the operations more precise and required a higher level of maturity. Those who responded to the call of discipline reaped the fruits of it in the form of stability, clarity, and insight.
The food services industry is still growing in size but it has gained more wisdom and experience in 2026. That, I am sure, is the most encouraging change, by far, to exist.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
