Small-town India shows growing enthusiasm for dining out
India’s spending on dining out has surged notably in the first half of FY26, as smaller towns experience a remarkable rise in both consumer activity and digital transactions via UPI. Data indicates a 34 percent increase in UPI payments at restaurants, reaching ₹1.9 lakh crore, underscoring how dining out culture is spreading beyond metropolitan cities.
Digital payments and consumer trends
The surge in UPI usage suggests that digital adoption has become mainstream even in Tier-2 and Tier-3 cities. Many restaurant chains and local eateries have adapted by offering digital-first experiences, including app-based ordering and loyalty programs. This shift is helping consumers in smaller towns participate more actively in modern dining experiences once limited to major cities.
Market expansion beyond metros
Brands such as Domino’s, Wow! Momo, and Biryani by Kilo have been accelerating their expansion into smaller urban centers. According to industry analysts, this move not only broadens the customer base but also helps drive fresh employment opportunities and higher competition among local food service providers.
“We are seeing consumption patterns change rapidly in towns once considered low-spending markets,” said an industry insider. “Digitization and rising disposable incomes are reshaping how people dine and pay.”
Changing lifestyle and cultural influence
The evolution of dining preferences reflects broader cultural and economic shifts. With growing exposure to social media, young consumers in Tier-2 and Tier-3 markets are increasingly seeking quality dining experiences outside their homes. Furthermore, family-oriented gatherings, fueled by easy payment options and promotions, contribute to higher frequency of dining out.
Author summary
Dining out culture in small-town India is booming, driven by digital transactions, lifestyle upgrades, and rapid restaurant expansion beyond major cities.
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