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Growing tourism, disposable incomes big boon for Indian restaurants industry: NRAI
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Monday, 11 January, 2010, 13 : 06 PM [IST]
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 With an objective to promote, encourage, support and execute schemes for the maintenance of high standard in restaurants in India – the National Restaurant Association of India (NRAI) was set up in 1982. After the journey of over 25 years, the association with over 850 members has become the mouthpiece of standalone and chain restaurants in the country. Vyoum Ghai, joint secretary, NRAI, and promoter of the Panhshilla Rendezvous and Buzz, renowned restaurants in Delhi, shares his views on the current problems & prospects and future of the restaurant industry, in an exclusive e-mail interview with Food & Beverage News. Excerpts:
What are the current trends in restaurants foodservice and catering industry?
Restaurants are now become an integral part of the society. The upcoming trends in the restaurants industry is that international companies are entering India, kiosks and food courts are becoming more popular as food joints, expansion of brands into smaller cities and newer locations, Indian companies are making international forays, besides multi-cuisine outlets and chef-led innovations into fusion cuisine.
Does the restaurants industry require tax holiday to recover and grow swiftly?
Tax holidays and better tax structure will be a tremendous boost for the sector. Restaurants should be treated as an infrastructure sector and accorded the accompanying benefits thereof.
What are the current problems and prospects of the Indian restaurants industry?
Despite all the merits of the restaurant industry, there are a few bottlenecks in its way – lack of skilled and trained manpower, lack of adequate training institutes, difficulty in restaurant financing, food price fluctuations, physical infrastructure and the most important, cumbersome licensing.
The complexity of required licence is the major roadblock in expanding the restaurants business in India. There are some basic licences which one has to obtain and it entails an expenditure of Rs 6-10 lakh per outlet.
Are our restaurants ready for the FSSA 2006 regime with focus on food safety and standards?
Our industry always welcomes such regimes that evolve new concepts to improve upon the safety and hygiene of food. Food safety is an important aspect with which all stakeholders have a role in ensuring and maintaining safety of food.
The Food Safety and Standards Authority of India (FSSA) has made the procedure little exhaustive for implementation. The NRAI, being one of the chosen associations by FSSAI, will help them in executing their pilot project “Safe Food, Tasty Food” in Delhi for the upcoming Commonwealth Games 2010. The restaurateurs are expecting some simplified or feasible criteria for attaining different ratings under the project.
What is the role of the National Restaurant Association of India in the restaurant sector? How many members you have?
The aim of the restaurant association is to represent, educate and promote exclusively the independent restaurant owners in India. The NRAI has an important role in building awareness of the food service sector’s credibility.
We have lobbied for the restaurant industry on various issues with the government and now we are about to release a “White Paper” which will be an extensive research on the restaurant business in India. At present we have more than 850 members, we are looking forward to have 1000 by the end of the financial year.
Do you think that tourism is playing a helpful role to develop the restaurant sector as well?
The growth of the tourism sector and restaurants industry is inter-dependent. Restaurants contribute to the brand of the city and attract visitors from elsewhere to dine and hence promote tourism. Tourists are significant users of restaurant facilities.
Also the presence of international chains like McDonald’s, Dominos and Pizza Hut in the country encourages tourism and makes them assured for the same quality and hygiene that extend globally. Similarly, Indian brands like Nirula’s, Haldiram’s, Bikanerwala also ensure that tourism gets the various options in local tastes and cuisine in a hygienic way. Restaurants serve as a source of entertainment, enjoyment to both domestic consumers and international tourists.
What according to you are the growth drivers of the Indian restaurant industry?
The restaurant industry is promising in India. There are several factors which contribute to its growth such as changing consumer profiles, higher disposable incomes, greater exposure to multiple cuisines, changes in lifestyles and tourism driven growth.
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