Vizag, popularly known as “The jewel of the East Coast”, is brimming with opportunities and resources and is regarded as an ideal destination for entrepreneurs looking to foray into the food and beverages business. Counted among the top 100 fastest-growing cities across the globe, Vizag is the financial capital of Andhra Pradesh, a prime seaport of the country, and a vital industrial location. The strong food and beverage culture in the city is pretty evident from the fact that the city has over 4000 restaurants and organized eateries and the aggregate revenue earned in 2022 is close to INR 5104 crores.
In Vizag, there has been a remarkable spur in the growth of the food and beverage business and the entrepreneurs are eying to either expand or foray into this business. The state government is focusing on improving the capacity and competency of the food and beverage industry. The consistent rise in the food and beverage sector is encouraging several entrepreneurs to head to Vizag to foray into the food and beverage business in the city. The food and beverage market in Vizag has had a faster recovery after the pandemic, as there was a 42.25% jump in revenue in 2022 compared to the year 2021.
Drivers of Growth for Food and Beverage Business in Vizag
The exponential rise of the food and beverage business in Vizag is mainly because of the following growth drivers that are making this business lucrative for budding entrepreneurs:
- Numerous crops like rice, pepper, apple, grapes, and strawberries are grown here making it a rich agrarian community and a growing food and beverage business.
- In Vizag and its adjacent regions, 16 food processing centers have been built and the establishment of 8 mega food parts, 5 mini food parks, and 4 primary processing centers are also in pipeline.
- The state is also aiming for research and development in the agri and food business
- Vizag is called the Shangri-La of street foods and is popular for its delectable varieties of seafood, kebabs, skewers, etc.
- The city has a culture of visiting restaurants and eateries with friends and families
- Being a coastal place, sea foods are immensely popular and people love to visit restaurants to savor appetizing sea foods.
- Vizag is a popular tourist destination welcoming close to 27 million Indian and 90,000 foreign tourists annually before the pandemic.
- Consuming different beverages like coffee, tea, shakes, coconut water, soda, and beer is extremely popular among people due to humid weather.
- Vizag has a huge hospitality industry having around 505 hotels having one or more restaurants or pubs.
Earlier the food and beverage business in Vizag was dominated by eateries, traditional restaurants, and bars but slowly the culture of fine dining, multi-cuisine restaurants, pubs, and breweries are picking up. In the last five years, there has been significant growth in restaurants and cafes. Because of the cosmopolitan culture, South Indian restaurants are dominating this sector, still, decent numbers of North Indian restaurants along with Chinese, Mughlai, and Thai restaurants are operating in the city. However, restaurants and eateries in Vizag are giving emphasis to the latest and trending food items compared to traditional and authentic menus.
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