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Growth 2013-05-25

Restaurant Employment Growth

Restaurant industry is becoming labour-intensive and manpower driven.

By Deputy Features Editor
Restaurant Employment Growth

The food business requires manpower right from the receipt and storage of raw materials to the production and sale of prepared products to customers. The total food services market both – unorganised and organised – is estimated to provide employment to 4.6 million people in 2013 and this is projected to grow to 8 million by 2018.

Average Employment per outlet in Food services Market

Chain Format Average Employment
Cafe 35-40
QSR 25-30
Frozen Dessert/ Ice Cream 4-5
Casual Dine 40-45
Fine Dine 50-55
PBCL 35-40

 

In contributing to the employment the organized segment provides direct employment to approximately 2 million individuals through its operations in 2013.

The employment generated by the chain outlets is 0.4 million, and that of the standalone is 1.7 million, including the store and corporate level. The ratio tends to growth of both chain and standalone restaurant to 1 million and 3.4 million, respectively, by 2018.

Direct Employment (mn)

Food Service Market Segments 2013 2018
Chain Restaurant 0.4 1.0
Licensed standalone 1.7 3.4
Unorganised 2.5 3.6
Total 4.6 8.0

 

According to Mr. Jayanth Narayanan, a restaurant owner in Bangalore, “Employment opportunity is growing with the new restaurant coming into the market; organised sector is providing good packages to the workforce and also hiring people at large scale”.

However, presently in India majority of employment is generated by the unorganized market, which provides to approximately 2.5 million individuals. It is widely spread in the Indian market and contributes 73% in food services market.

The growth in the market is attracting international players into the Indian market, while fostering the launch of new domestic brands. This is not only boosting the employment but also giving a sudden growth of approximately 8 million people by 2018.

The concept of part time and weekend employment is also making a space in the food business to overcome the operational challenges of maintaining the quality of both food products and services during peak business hours while ensuring an adequate workforce and optimum labour costs.

                                                                                                                                 (SOURCE: INDIAN FOOD SERVICES REPORT 2013, NRAI)

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