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Expansion 2016-11-30

How these tips can boost restaurant biz

India has a substantial food loving consumer base leading to a significant market size for F&B sales.

By Deputy Features Editor
How these tips can boost restaurant biz

In the ever growing Indian market, food expenditures hold great prominence contributing a lot to the retail consumption. In fact Indian food retail industry is positioned sixth at the global level with 15 per cent annual growth.

According the report, India has a substantial food loving consumer base leading to a significant market size for F&B sales. Food and grocery retail alone constitue 60-65 % of the total retail market in India. But despite all the opportunities that the sector offers, there are major roadblocks in the growth of the industry on the larger map.

Single Window Clearance: For long restaurant and food industry has been vocal about the hurdles that they face in getting the licenses. At a time when restaurant is one of the major contributors in country’s tourism and pop up culture, getting approximately 15 licenses is very difficult for the restaurant owners as it almost take a whole lot month to meet the requirement.

“I was in Australia and was very surprised to know that it takes only a week time in Australia to get all the licenses and get your restaurant running,” shares Chef Saby who recently entered into the business of restaurant.

Tax Benefits: In the last two years, increase taxes are only increasing the restaurant bill of the customers. “And, to much surprise restaurant industry is one such industry which is paying both service and sales tax,” adds Rahul Singh of The Beer Cafe.

Real Estate Cost: Everyone knows that real estate seen has been turning crazy in India. From rentals going as higher as Rs 600-800 (on carpet area for first floor as F&B are mainly located on upper floors) creating a trouble for the F&B operators to get the best locations.

Man Power: There is no denying to the fact that food service industry is labour intensive market; there is also shortage of skilled and trained man power. According to NRAI food service report, the direct employment in restaurant industry in India (in 2016) is 5.8 million and that it will reach 8.7 million in 2021, which clearly mean that approximately 6,00,000 skilled manpower is required in the industry.

Road Networks: Being a food market leader, India has very fragmented and poor supply chain network. And, this is the reason every year about 40-45 per cent of food wastages come across the supply chain process. Bad road networks, cold chain issues are creating a hindrance in the growth of the industry.

Food Promotions & Festivals: Thanks to celebrity chefs who have promoted India on global road map. Food promotions and food festivals are major component that will help the industry grow. And, India needs to organise many such food festivals and promote Indian food in order to grow Indian food tourism. 

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