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Hyderabad: Hyderabad may still steal the spotlight with its biryani joints and cafe culture, but when it comes to food business growth, it’s the districts that are quietly rewriting the culinary story.
While the capital sizzles with legacy and volume, tier-2 and tier-3 towns are cooking up a sharp rise in new licences and registrations, proving the real expansion is happening beyond city limits.Data accessed by TOI from the food safety department, under the Directorate of Institute of Preventive Medicine, reveals a dramatic statewide surge. Food business licences across Telangana nearly tripled, rising from 12,096 in 2023–24 to 32,167 in 2024–25.
Registrations also doubled, jumping from 43,473 to 85,941 in the same period.In contrast, Hyderabad’s growth has been more measured. Licences issued in the city increased from 10,504 in 2022 to 16,035 in 2024, with the Greater Hyderabad Municipal Corporation issuing 7,044 licences so far this year.
Officials attribute the rapid rise in the districts to several factors—a surge in new food ventures in smaller towns, increased awareness among entrepreneurs about formalisation, and evolving consumer preferences for hygienic and diverse food options.
“We are witnessing a constant churn. New players are entering, older businesses are exiting, and many operators are shifting from basic registration to full licences,” a senior official from the department told TOI. “This cycle, along with periodic renewals and increased enforcement, is pushing the numbers up. Every five years, we see a visible jump,” he explained.The distinction between a registration and a licence, officials explained, lies in the business scale.
Establishments with annual turnover above ₹12 lakh require a licence, while those below that threshold are issued a basic registration. The fee structure also varies accordingly, an official said. Among the most active districts driving this growth are Warangal, Karimnagar, and Nizamabad, which are seeing a steady rise in urbanisation and food-related entrepreneurship. The growth ranges from cloud kitchens and bakeries to catering units and quick-service restaurants, catering to the evolving tastes of semi-urban and rural consumers.Even Hyderabad, despite slower growth relative to the districts, is seeing a transformation. “The food industry here is dynamic,” said Murthy Raju, assistant food controller in GHMC. “New businesses are constantly stepping in to meet rising demand, while many older ones exit the space. That volatility reflects in our numbers,” he pointed out. Officials believe that the trend will continue, especially as awareness of food safety norms grows and aspiring entrepreneurs tap into Telangana’s fast-changing food economy. While Hyderabad may remain the culinary icon, it’s the rest of the state that’s now shaping the next chapter of the food business story.