QSRs eye a bigger bite of FMCG pie, firms speed up expansion plans

Packaged foods become QSRs' new flavour; retail shelves and exports open up

QSR, FMCG, Packaged food and beverage — The Belgian Waffle Co entered the FMCG space 3 years ago, and offers pancake mixes, waffle crisps, and spreads

4 min read Last Updated : May 14 2025 | 11:13 PM IST

Home-grown quick-service restaurant (QSR) chains in India are dialling up expansion beyond restaurant services, solidifying their presence in the fast-moving consumer goods (FMCG) space.

Kolkata-based Wow! Momo recently expanded its FMCG presence with the launch of cup noodles in March this year — a segment that quickly clocked ₹1 crore in revenue.

“When we started FMCG with frozen momos, the competition was grossing almost ₹5 crore. Over two years later, we are grossing almost ₹5 crore, while the competition is grossing ₹7.5 crore in revenue. We have come a long way,” says Sagar Daryani, cofounder and chief executive officer of Wow! Momo.

The company is exporting frozen momos to the Gulf Cooperation Council countries and Singapore. The products will also soon be available in the UK and Germany, among other countries. Exports currently contribute 10 per cent to the vertical’s revenue.

Daryani expects the FMCG vertical to clock revenue of ₹75 crore in the ongoing financial year (2025-26). “We should be net profit-positive in FMCG in two years, when we start clocking revenue of ₹120-130 crore,” he said.

He further expects the vertical to reach ₹200-250 crore in revenue in the coming years.

The company aims to strengthen its presence in the Oriental flavour market, with new products like cake noodles, spices, and sauces expected in the next two years. The emerging quick commerce (qcom) channel has aided growth, contributing 52-55 per cent of the segment’s revenue.

“Qcom also becomes a good tool to experiment, helping us understand what’s working and what’s not. This allows us to quickly scale up products that customers like, while holding back on what’s not working,” Daryani added.

New Delhi-based tea café chain Chaayos is also working to strengthen its consumer-packaged goods segment. The company currently sells a selection of tea premixes, tea bags, snacks, and tea packs, among others.

“Venturing into consumer-packaged goods is a good way to build a brand. It enables us to be closer to our consumers in more ways, and we have seen impressive growth in the segment, with qcom aiding it further,” Nitin Saluja, founder of Chaayos, told Business Standard.

The segment currently contributes a high single-digit percentage to the company’s overall revenue and is an “integral part of brand strategy”.

According to data sourced from business intelligence firm Tofler, Chaayos recorded consolidated revenues of ₹248.5 crore in 2023-24, while its net loss decreased to ₹54 crore from ₹109 crore in the previous year.

“For the QSR segment, which has been witnessing a slowdown for at least four consecutive quarters, expanding their FMCG play is a good way to bring in more revenue. This not only helps the top line but also serves as a natural extension of the brand’s identity,” said a senior industry executive.

For some, however, this foray can also become a point of pain.

Waffle chain The Belgian Waffle Co. entered the FMCG space three years ago, and now offers pancake and waffle mixes, waffle crisps, and spreads.

“We are working on figuring out the next steps for the business,” a top leader at the company said.

“A lot of brands end up launching their products, but they don’t solve any real customer problems with them. Therefore, that part of the business does not scale up for them,” said another industry executive, pointing out the need for a careful foray into the FMCG space.