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ANALYSIS

NRAI IFSR ’19 pegs Mumbai’s organised food service mkt at Rs 40,480 cr
Friday, 14 June, 2019, 13 : 00 PM [IST]
Our Bureau, Mumbai
The organised food service market in Mumbai, India’s financial capital, is estimated to be worth Rs 40,480 crore. This is the highest among metros in India. In fact, the city accounts for the highest share of the organised food service market in the country. These were the findings of the NRAI India Food Services Report 2019 (NRAI IFSR 2019) and a Mumbai-specific report, launched recently by Brihanmumbai Municipal Corporation (BMC) chief Praveen Pardeshi.

NRAI IFSR 2019 is the fourth edition of the National Restaurant Association of India’s (NRAI) study, released once every three years, to map the trends, opportunities and challenges of India’s food services sector.

Pardeshi, in his speech, announced a slew of measures that will ease the working environment of restaurant industry. He added that he was actively looking at reintroducing the rooftop policy for restaurants with proper norms. He also announced the Abolition of Factory Licence as prescribed under the MMC act.

“The government is working for the long-term renewal of excise licenses for a period of 3-5 years at one go. Eating house licences are already being renewed for a period of three years as on date,” Pardeshi said.

“The Shops and Establishment Act already permits businesses to operate 24x7 in Mumbai, unless otherwise restricted by an executive order of a competent authority,” he added.

He assured that the Government of Maharashtra and BMC will collaborate with the industry to transform Mumbai’s food landscape to add to its vibrancy.

Rahul Singh, president, NRAI, while noting contributions of the restaurant sector, said, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organised food service sector, which is only 35 per cent of the total market, contributed a whopping Rs 18,000 crore as way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.”

Sharing the highlights of the Mumbai supplement, Anurag Katriar, Mumbai chapter head, NRAI, and executive director and chief executive officer, deGustibus Hospitality, said, “It is exciting to note that Mumbai has the highest share of the organized foodservice market in the country, and is growing at a CAGR (compound annual growth rate) of 41 per cent since 2015-16.”

“This exponential growth has also made it the provider of the highest employment in the food service sector amongst Delhi, Mumbai, Bengaluru and Kolkata. Home to a large migrant population, Mumbai has the third highest frequency of eating-out and ordering in occasions amongst these cities,” he added.

“However, Mumbai is still grappling with its own set of issues. In the absence of a single ministry and governed by regulations formed by various departments, conflicting orders that create confusion for the restaurant owners,” Katriar said.

“Changes in the limitations on operating hours is required with the implementation of the Model Shops and Establishment Bill. It will boost not only the nightlife, but also employment and revenue for the government,” he added.

“Our industry is still looking forward to a comprehensive policy for operation of food trucks and food truck parks and abolition of the archaic drinking permits in the cosmopolitan city,” Katriar said.

“Mumbai, ranking 13th in the ease of doing business index, needs resolution to these issues for the restaurant industry to thrive to its full potential, with single window licensing being the ultimate prerequisite,” he added.

Introducing the trade report to the audience, Samir Kuckreja, past president and trustee, NRAI, said, “NRAI IFSR 2019 is an in-depth research study which maps out the scale and impact of India’s food services sector.”

“This report is crucial for the industry to garner the necessary support and recognition from the government and its agencies for providing a fillip for consistent and sustained growth. I would like to thank all the NRAI members for their contribution to the research study,” he added.

The report is a comprehensive compilation of data gathered from in-depth interactions with over 130 restaurant CEOs and 3,500 consumers across 24 cities in India.

The exclusive Bengaluru specific pull-out provides extensive data on a variety of parameters, including average monthly spend per person, popular hangouts, employment and consumer eating out behaviour trends.

Highlights of the report
  • Average spend per month per household on eating out is Rs 2,890 in Mumbai, higher than national average of Rs 2,500
  • Average frequency of consuming non-hoe cooked food in Mumbai is 4.2 times per month, including dine-out, delivery and takeaways
  • The city has approximately 87,650 restaurants and employs over 4,28,000 persons
  • Organised food service is the largest industry in the service sector in the country after retail and insurance, and is 20 times the size of the film industry, 4.7 times that of hotels and 1.5 times that of the pharmaceutical sector
  • The NRAI IFSR 2019 estimates the overall Indian food service industry’s market size at Rs 4,23,865 crore in 2018-19 which is expected to grow at a CAGR of nine per cent to reach Rs 5,99,782 crore by 2022-23
 
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