Why Ayodhya could be the Next Dining Destination for Homegrown Restaurants

The high-end catering business in India has transformed into a flourishing industry that marries culinary artistry with luxury service. It caters to a clientele that values premium experiences, customized menus, and impeccable attention to detail. While traditionally concentrated in metropolitan cities, this segment is now making significant inroads into tier 2 and tier 3 cities, fuelled by rising disposable incomes, growing urbanization, and evolving consumer preferences.

High-end catering is far more than delivering food; it is about creating bespoke experiences that include personalized menus, thematic presentations, and a seamless integration of food and event management. Leading names in the industry, such as Nikk Gourmet, Foodlink Catering, and The Kitchen Art Co., exemplify the shift towards a more luxurious dining approach. These companies are known for sourcing premium ingredients, offering fusion dishes that blend local and global flavors, and delivering meticulously curated services that resonate with modern sensibilities.

“Food is no longer just a part of an event; it has evolved into an experience in itself. This transformation encompasses all aspects of the catering experience, from decor and presentation to service. Luxury caterers in India are now focused on addressing even the minutest concerns of event attendees,” Sanjay Vazirani, CEO, Foodlink F&B Holdings India Pvt. Ltd said.

Growth Potential in Tier 2 and Tier 3 Cities

The expansion of high-end catering businesses into tier 2 and tier 3 cities marks a paradigm shift in India’s luxury service market. These smaller cities, including hubs like Jaipur, Chandigarh, Indore, and Coimbatore, have seen an impressive increase in demand for upscale catering services. This is driven by several factors:

India’s tier 2 and tier 3 cities have reported a consistent rise in disposable incomes. For instance, household disposable income in smaller cities is projected to grow at a compound annual growth rate (CAGR) of over 8% in the coming years. This growing affluence is encouraging residents to spend on premium services.

“Individuals are increasingly opting for luxury catering services for smaller functions and get-togethers…these could be small office meets for clients like Deloitte or launches like Media meet for Royal Enfield Bullet 350 launch or parties such as Gadar 2 success party or Ritesh Sidhwani’s 50th Birthday celebrations,”  Vazirani further added.

Improved infrastructure and connectivity have made these cities more accessible. According to recent data, urbanization in India has grown to 34.93%, with smaller cities contributing significantly to this growth. These developments make it easier for catering businesses to operate in these regions.

The younger demographic in tier 2 and tier 3 cities, exposed to global trends through digital platforms, is increasingly opting for unique culinary experiences. Destination weddings, corporate events, and theme parties have become common in these regions, fuelling the demand for high-end catering.

The Luxury Catering Experience

Companies venturing into these markets have adapted their offerings to meet local tastes while maintaining the premium essence of their services. For instance, Foodlink Catering has tailored its services to include Indian-inspired gourmet dishes alongside global cuisines, ensuring a balance between tradition and modernity. The Kitchen Art Co. has introduced sustainable and locally sourced ingredients into their offerings to appeal to eco-conscious consumers in these areas. “We are increasingly experimenting with cuisines to cater to evolving tastes and preferences, it includes fusion menus, dietary diversity, interactive food stations and themed menus,” Bhawishya Rituparn, Director of Sales and Marketing, Radisson Blu Pune, Hinjawadi said. 

High-end catering businesses also emphasize presentation and experience. Services include live counters, thematic food stations, and elaborate decor that align with the event’s overall theme. Furthermore, many companies offer integrated event management services, including entertainment and hospitality, ensuring a seamless experience.  “During the lockdown people experimented with cooking and eating more which made them crave new regional flavours,” said Sarita Bazaz, founder of The Food Affairs. 

Challenges and Opportunities

Despite the immense opportunities, expanding into tier 2 and tier 3 cities comes with its challenge. Logistic remains a critical issue. High-end catering often relies on premium, perishable ingredients such as imported cheeses, exotic seafood, and rare spices. Ensuring a reliable supply chain and maintaining cold chain infrastructure in smaller cities can be daunting. Additionally, the availability of skilled personnel trained in gourmet cooking and luxury service standards is limited in these regions. High-end catering companies often need to invest in extensive training programs to upskill local talent. Building brand awareness and educating potential clients about the value proposition of premium catering services is another challenge, particularly in cities where such services are still emerging.

Nevertheless, the prospects for growth in these cities are promising. Experts project the high-end catering market to grow at an impressive CAGR of 25%-30% over the next five years. This growth is supported by government initiatives aimed at improving infrastructure and promoting tourism in smaller cities. Digital penetration has also played a transformative role in creating demand. Social media platforms like Instagram and Pinterest have amplified consumer aspirations by showcasing lavish weddings, themed parties, and high-profile events, encouraging residents in smaller cities to seek similar experiences. Luxury caterers are leveraging these trends through strategic marketing campaigns, trial events, and collaborations with local event planners and venues to expand their reach.

The high-end catering business in India is on the cusp of a major transformation. While the metros remain strongholds, the burgeoning demand in tier 2 and tier 3 cities represents a new frontier for growth. Companies that can navigate the challenges and adapt to the unique needs of these markets are poised to benefit immensely. With the Indian middle and upper-middle classes increasingly embracing luxury experiences, the future of high-end catering is as vibrant as the country’s diverse culinary landscape.

India has a huge population and they are more willing to try new foods around the world. Due to a number of market-driven and strategic factors, international burger franchisees are opening in India.

Young Gen-Z and millennials makes up an important segment of India's population, and they are greatly impacted by international culinary trends. Burger chains find this group to be an appealing market since they are more willing to try and embrace foreign cuisine. With less stringent laws and simpler standards for foreign direct investment (FDI) in the food and beverage industry, India has become a more business-friendly place.

It was projected that the Indian burger market would grow to 20.4 billion dollars by 2025. From 2022 to 2028, the fast food industry in India is anticipated to expand at a compound annual growth rate (CAGR) of 7.3%.

What’s pushing the growth

Quick-service restaurants (QSRs) are replacing traditional home-cooked meals in the Indian market, particularly in urban areas. Affordability, newness, and convenience are important in this business to be successful.

Also, International chains are also customising menu to suit Indian palates, depending on the region and geographies.
After partnering with Franchise India, Burgeratory and Wow Burger is all set to broaden their footprints by venturing in Indian markets.

Regarding the launch Tarun Sachdeva, Global Partner, Burgeratory said, “Our Brand ‘Burgertory’ is an Australian brand which has entered the Indian market and we plan to open 100 stores in India, with the first locations in major cities like Mumbai, New Delhi, and Bangalore.”

The brand is focusing on serving a menu that will feature a mix of Australian dishes and local adaptations, like the Tandoori Chicken Burger and Paneer Tikka Burger. Burgertory is committed to using local ingredients, while also importing some proprietary components from Australia. 

Health in focus

These days’ consumers are focused more on health-conscious diets and are looking at options that is both tasty and healthy.

Sachdeva added, “Our slogan is sinfully delicious healthy burgers. Everything we use is fresh in our kitchen.” 
Overall, they have 14 types of burgers and produce everything in-house and no frozen items. Similarly, there is a growth in the Plant-based burgers segment. By 2033, the market for plant-based burgers in India is anticipated to grow at $362 million.

Emphasizing on their plant-based burgers, Sunil Datwani, Managing Director, Wow Burger commented, “We are a Hong Kong based brand. We want to promote healthier way of eating. So, the main focus is to promote vegetarian burgers which are mostly soy-based. The patties are wheat based and no chemicals or preservatives used. The brand also serves rice bowls, wraps and much more.” 

Regarding the brand name, he added, “We will enter the Indian market with a different name as there is Wow Momos in India, so to avoid the confusion we will come up with a new name and logo. We are planning to launch 15 stores in India by end of 2025. For the start, the brand will open in Mumbai and Gujarat and later will expand to other locations. We also have decided to localize 65 percent of the menu as per the different cities in India.”

Although, the challenges will be there, but it is certain that the international brands are likely to grow in the Indian market with their unique concepts and creativity. 

South Indian restaurants are popular because they are true to their heritage while incorporating contemporary elements into traditional recipes. Innovative foods, unusual vegetables, and organic products are a few instances of how South Indian restaurants are popular right now. By serving special dishes from different regions and emphasizing the distinctive flavors and cooking techniques of each area, chefs are showcasing India's rich diversity. Not all restaurants cater to all the foods from various South Indian states as every state and city has their own peculiarity of food.

Modern presentations, fusion cuisine, health-conscious foods, vegan and gluten-free options, seasonal promotions, social media interaction, and partnerships are some of the ways of South Indian restaurants are innovating themselves. South Indian food is considered to be a comfort food among the consumers like you can have them at anytime of the day without feeling bored. It’s quite healthy and it is said to be the best breakfast options.

The Market Size

The Indian restaurant industry is growing at a CAGR of 8.1%, with the South Indian segment playing a significant role. The market is predicted to reach $125 billion by 2029, indicating that the business will continue to expand in the years to come. South Indian restaurants, both quick-service and fine dining, are mushrooming in tier-1 and tier-2 cities.

“The South Indian culinary landscape is undergoing a vibrant evolution, and at Santosham Foods, we’re proud to be part of this exciting journey. While overcoming challenges is part of the process, moving beyond the stereotype of South Indian food being limited to dosa and idli to highlight its vast diversity remains a priority,” shared Bhagyalakshmi Gohokar, Co-Founder & Head Chef, Santosham.

Also, balancing authenticity and consistency with flavors that appeal to diverse regional palates continues to be a challenge these restaurants embrace. Despite the challenges, the South Indian food industry is thriving with newer entrants than before. 

Exploring Niche Cuisines

As restaurants explore niche cuisines from Tamil Nadu, Kerala, Karnataka, Telangana and Andhra Pradesh, there is a stronger emphasis on creating unique regional culinary experiences.

Regarding this, Gohokar added, “Going back to our roots is central to our ethos at Santosham, and we are excited to share this journey with a wider audience as we continue to increase our footprint, not just in Mumbai but Pan India.”

The Growth Drivers

There has been a significant growth in this industry as we can see even road vendors or thela walas selling south indian food in their tapris because of the increasing popularity and affordability.

Expressing his views on significant growth, Harshdeep Pawar, Fnb Head & Corporate Manager, Muttuswami said, “The South Indian restaurant segment in India has been experiencing significant growth in recent years. This growth is being driven by several factors, including changing consumer preferences, increased demand for regional cuisines, and a growing middle class in the country.”

What’s Trending

Current trends highlighted the South cuisine’s health focus and ingredient-driven nature, supporting creativity and cross-cuisine fusion. Its unpretentious style and ability to adapt to various dining atmospheres enhance its appeal in contemporary food culture.

Highlighting his views on sustainable packaging, Pankaj Gupta, Founder, Kerala Quarters owned by Flavor Pot Foods Hospitality, said, “Sustainable packaging is becoming essential, with biodegradable materials like areca leaves and paper replacing plastic, aligning with eco-conscious dining preferences.”

He also pointed that food wastage is minimized through root-to-stem cooking, which utilizes all parts of produce for broths and dishes. Surplus ingredients are creatively repurposed in special menus, and staff meals ensure excess food is used effectively while maintaining sustainability who added that they serve authentic Kerala cuisines in Kerala Quarters.

What Lies Ahead

The future of South Indian cuisine lies in blending tradition with modernity. Global influences, cloud kitchens, and tech-driven operations are expected to complement its wellness and community-focused appeal. Community dining formats like Sadhyas and innovative concepts will continue to attract diners. This cuisine is poised for growth both in India and internationally, offering an exciting blend of authenticity and innovation.

Indian cuisine is steeped in tradition, known for its rich flavors and intricate preparations. Yet, as dining trends evolve, fine dining restaurants in India are transforming these time-honored recipes in ways that excite the modern palate. Here’s a look at how chefs are striking a balance between respecting the old and embracing the new, offering a fresh take on the classics.

- Blending Tradition with Innovation

Fine dining establishments are constantly pushing the boundaries of what defines "traditional." Instead of sticking to the same recipes passed down through generations, chefs are taking creative liberties to add a contemporary flair. What makes these dishes stand out is that the core ingredients and flavors remain familiar, but the way they are prepared and presented changes completely.

For instance, a simple dal might be slow-cooked using modern sous-vide techniques, locking in deep flavors while maintaining the integrity of the dish. Other examples include elevating basic naan with unique stuffing like truffle butter, or reworking classic curries to offer lighter, more refined textures.

- Street Food Goes Gourmet

Street food holds a special place in India’s culinary heart, with its bold flavors and casual appeal. Today’s fine dining restaurants are taking these much-loved snacks and giving them an elegant twist. Imagine chaat, bhel puri, or samosas elevated with exotic ingredients like quinoa, avocado, or delicate chutneys infused with herbs you've never heard of!

This transformation does more than just make the dishes look fancier—it offers diners the nostalgia of street food combined with the sophistication of a high-end meal. It's an exciting fusion where comfort meets elegance, appealing to both the taste buds and the eyes.

- Creative Plating and Presentation

One major change in how traditional dishes are being reinvented is in the presentation. Fine dining places focus on making every dish look like a work of art, with intricate garnishing, careful color contrasts, and sculptural plating. A simple dish like biryani may be served in a deconstructed form, with every element laid out separately for the diner to experience each flavor individually.

This approach not only enhances the dining experience but also transforms how diners perceive and enjoy their food. Visual appeal plays a huge role in how people connect with their meals, and these creative presentations are helping traditional dishes feel new and exciting again.

- Health-Conscious Alternatives

In today’s health-conscious world, fine dining restaurants are responding by offering healthier versions of beloved Indian dishes. Whether it’s using alternative grains like quinoa or millet in place of rice or replacing rich gravies with yogurt-based alternatives, these dishes maintain the flavor while cutting down on calories. Traditional comfort foods like kebabs are being prepared with plant-based ingredients, appealing to vegetarians and health-conscious eaters alike.

This shift towards healthy options demonstrates the versatility of Indian cuisine and its ability to adapt to modern dietary preferences without losing its essence. The fine dining experience is thus evolving to cater to more diverse audiences.

- Reintroducing Regional Cuisines

India’s diverse regional cuisines are often underrepresented in mainstream restaurants, but fine dining establishments are bringing these lesser-known flavors to the forefront. From Rajasthani laal maas to Kerala’s fish curries, chefs are showcasing the vast culinary heritage of India. They are modernizing these dishes with refined techniques but maintaining the authentic spices and preparation methods that make these regional dishes so special.

This not only introduces diners to new flavors but also celebrates India’s rich culinary history in a way that feels both modern and respectful of tradition.

To sum it up

Fine dining restaurants are doing more than just reinterpreting old favorites; they are creating a new language of Indian cuisine that blends tradition with innovation. From street food with a gourmet twist to using sustainable, local ingredients, and experimenting with unexpected flavors, the way fine dining presents Indian food has changed significantly. 

These modern adaptations allow diners to experience the comfort of familiar dishes while enjoying the thrill of something new, ensuring that Indian cuisine remains dynamic, vibrant, and relevant in the contemporary food scene.

Next time you visit a fine dining restaurant, don’t be surprised if your favorite dish is completely transformed—but still holds the essence of what you love about Indian food!

New Age Restaurants are redefining the food industry by updating the operating processes, increasing labor efficiency, and adapting to changes in consumer behavior. Focusing on the 4’Cs of hygiene which are cleaning, cooking, cross-contamination and chilling, these restaurateurs are changing the new age business game. 

What’s New?

“The growing appetite of people to try international cuisines are increasing day-by-day. We are catering to the trend by serving seasonal menus. Next year summer, we are planning to get mangoes and litchis from our Orchids in Uttarkhand and inculcate in to the dishes by promoting organic healthy foods,” shared Ritika Sharma, Director, Litchi Bistro-Delhi who believed that people are looking for personalized, healthy, and a global food options.

Emphasizing his points on innovations, Manoj Rai, CEO, Punjabi by Nature added, “We have added healthy options in the menus. We have wheat-based breads, gluten-free products, millet salads. But we need to look in to brand as well as we serve Punjabi food and are known for that. We have cheesecake with low sugar; Shahi-Tukda with less sugar so yes, the desserts we serve has less sugar.”

Though, people want to indulge today but meanwhile, they look for healthier alternative for it and that’s where these new age restaurant owners are playing the game.

Highlighting his points on the same, Tejasvi Suresh Bala, CEO, Swirl Lifestyle said, “We serve comfort food across the globe. We serve mainly in Chennai. We started around 7 years back. There is a growing demand for comfort food, and we do get family and Gen-Z crowds. The rise of experiential dining is amazing. We are planning to use technology which will help us more with live cooking."

He also pointed that sustainability, and ethical consumption is not a trend, it’s a norm. And we all should follow and abide by the same.

How Social Media is Influencing People What to Eat?

“It’s all about social media these days. Some days, I go to restaurants just to make reels and curate something that is instagram friendly and aesthetic. We do have a strong base of traditional signature dishes while we do take cues from the social media,” explained Ritika.

Putting out his views, Manoj said, “We are active on social media. We have to be very sure about the content we post, and the team has to make sure that the content reaches the right people. We have modified our standard of services. People get the feel of the dish by the presentation, they click the picture and if they like it, they post it. We have done changes in the way we present our cocktails, so it’s eye catchy for the consumers. It’s been going well with our customers. We are getting more views on our instagram reels these days.”

Retaining the Identity of Brand

“The ideology of the food needs to go with the trend. We try to make our entire menu go viral on social media platform with influencers and though leaders. The activity led menu also works with high aesthetics. There is fire in pop-up menu happening in Mayfair right now, we are doing since last one month, and this is popular in social media. We are extending this till Diwali. Social media helped a lot. User generated content makes a lot of difference. We came up with Kids menu with a coloring book. Micro-influencers are a community itself. Workshops and pop-up really help. Creating an experiential product is an important thing. Consistency also plays a major role. For us, Google ads work wonders as it targets the right customers. Not to chase the trend, but to create user generated content.”

Integrating Technology

“My café is instagrammable. Litchi is more about food. We are focusing on freshness and taste and quality,” said Ritika. Highlighting on delivery services, she added, “The brand tone is about freshness and quality we provide. We haven’t indulged into delivery services. We are focusing on food menu which complements the beverages.”

While, Manoj noted, “Customer should receive the delivery without the spillage. The packaging has to be good enough. We have 40% customers from online food platform and 60% from offline platform.”

“Inventory management is a key thing which we navigate. And the major boom is QR code. Customise add-ons on each menu. Training our staff is difficult so QR code made our services easier,” explained Tejaswi who added that Kitchen automation is booming in the market.

India’s restaurant industry is soaring, driven by a ‘revenge dining’ trend, where customers are eagerly returning to eateries post-pandemic. Currently valued at Rs 569,487 crore, the sector is on track to grow at an impressive CAGR of 8.1 percent, expected to hit Rs 776,511 crore by 2028. Recognizing this momentum, Restaurant India and Franchise India Group organized the 13th edition of the Indian Restaurant Congress at Yashobhoomi, Delhi, drawing a dynamic crowd of restaurateurs, policymakers, chefs, foodservice professionals, and suppliers. Held over two inspiring days, October 8-9, the event became the place for the industry’s best to share, learn, and grow.

Leaders across the food and beverage space discussed customer engagement, food quality, best practices, regulatory concerns, and future trends in dining. The theme, “HEALTH, WEALTH, AND GROWTH – YOUR MENU IS YOUR TRUMP CARD,” spotlighted the shift toward consumer-consciousness. As diners become more selective about what they consume, how much, and when, restaurants are being urged to respond with innovative menus tailored to new preferences.

Customer is King

“Customer is King” remains a timeless truth, especially in the hospitality industry. Listening to customers isn’t just a choice—it’s the secret ingredient to long-term success. Rahul Agarwal, CEO of Barbeque Nation, emphasized, “What’s driven our success over 18 years with 200 restaurants is our relentless focus on guest feedback. We call back 20 percent of our customers across India to gather qualitative insights. It gives us a real-time pulse on customer preferences, which we convert into quantitative data, helping us score each restaurant on culinary quality, service, ambiance, and more.”

Amit Bagga, Co-Founder & CEO of Daryaganj Hospitality, echoed this sentiment, “Customer experience is paramount. When it’s exceptional, your customers become your most powerful marketers, spreading the word and driving brand loyalty without any extra effort.”

The Power of a Great Team

“A team can make or break a business,” is a common saying, and the restaurant industry is no exception. Building a strong team has proven essential for successful restaurant brands. “When we started Pirates of Grill 18 years ago, finding and retaining talented people who believed in our vision was challenging, but essential,” said Interjeet Singh Banga, Promoter of Pirates of Grill, which is now set to enter the London and Dubai markets. “With changing dining habits in India, from monthly outings to almost daily dining out, having a committed team has been key to our growth.”

Delivery: A Vital Channel

Food delivery has transformed from a secondary revenue stream to a core component of business strategy for many restaurants, now accounting for 20-25 percent of their revenue. “Delivery is no longer just an add-on; it’s become a main channel for the industry,” said Rakesh Ranjan, CEO of Food Delivery at Zomato. “While food delivery has become a standard for many, the more strategic brands look at delivery’s impact store-by-store, not just at the brand level. This approach allows them to maximize delivery’s potential as a revenue driver.”

Data as the Driver

Data has emerged as a powerful tool in shaping business strategies in the restaurant industry. From understanding customer demographics to tailoring experiences, data is essential for staying competitive. Shivam Shahi, Co-Founder & COO of Blue Tokai Coffee Roasters, shared, “Before launching in a new market, data plays a crucial role. When we expanded into Japan, we first introduced our FMCG line to gauge market response. This feedback gave us insight into what customers enjoyed or disliked, helping us tailor our approach when opening our cafes.”

Celebrating Excellence with Culinary Awards

For the first time in its 13-year run, Restaurant India hosted the ‘Culinary Awards’ on October 8, celebrating outstanding achievements by chefs, foodservice professionals, suppliers, and brands within the F&B sector. On September 25, the Indian Restaurant Awards 2024 recognized top industry players like Chef Nita Mehta, Michelin-starred Chef Atul Kochhar, and veteran Chef Saby Gorai. This recognition highlighted the best in the industry, celebrating innovation, growth, and resilience among chefs, restaurateurs, and brands.

Backed by prominent sponsors like Cremica, Maggi Professional, NuTaste, Lee Kum Kee, and On2Cook, the awards gathered major industry players like Devyani International, Jubilant FoodWorks Ltd., Massive Restaurants, and The Empire Group. The Culinary Awards reflected Restaurant India’s commitment to showcasing excellence in food and beverage, while the industry’s luminaries applauded their peers and fostered a sense of community.

The Role of Technology in Restaurant Success

In an era where technology is integral to nearly every industry, the restaurant world is no exception. Restaurants today leverage technology to streamline their operations, enhance customer experiences, and improve decision-making. From online ordering systems and reservations to customer management and feedback tools, technology has revolutionized the way restaurants operate and interact with customers.

Shivam Shahi of Blue Tokai Coffee Roasters discussed how technology supports their international expansion efforts. "We use data gathered from our FMCG products in new markets to understand customer preferences and gain valuable insights. This data helps us design our cafes to reflect the local market while maintaining brand consistency," he said.

The Importance of Customer Experience

Customer experience has become the cornerstone of restaurant success. Today’s diners are more demanding and discerning than ever, expecting high-quality food, excellent service, and a memorable dining experience. As Rahul Agarwal from Barbeque Nation and Amit Bagga from Daryaganj Hospitality highlighted, focusing on customer experience drives customer loyalty, word-of-mouth marketing, and business growth.

By listening to their customers and gathering feedback, restaurants can continuously improve their offerings and stay ahead of competitors. This commitment to customer satisfaction was echoed by the industry leaders at the Indian Restaurant Congress, who agreed that customer experience should be the priority for every restaurateur.

A Look to the Future

With the rapid growth of India’s restaurant industry and the increasing demand for high-quality dining experiences, the future looks bright for restaurateurs. The Indian Restaurant Congress and Awards have become a symbol of excellence, fostering innovation, collaboration, and growth in the F&B sector. As new trends emerge and consumer preferences continue to evolve, the IRC provides a vital platform for restaurant professionals to connect, learn, and adapt.

The event's closing evening was a grand celebration, with Franchise India honoring the achievements of those who’ve made remarkable contributions to the industry. By bringing together leaders from every corner of the restaurant ecosystem, the IRC reaffirms its role as the premier event for shaping the future of India’s restaurant industry.

In a country with a rapidly evolving food landscape, the IRC 2024 proves that the restaurant industry’s future is bright and filled with possibilities. With innovation, technology, and a deep commitment to customer satisfaction, Indian restaurateurs are well-equipped to meet the demands of a new generation of diners. The Indian Restaurant Congress isn’t just an event; it’s a celebration of the industry’s resilience, creativity, and endless potential.

The Indian food and beverage industry has undergone a remarkable transformation in the last few years. Growing at an incredible pace, the industry is now valued at ₹6 lakh crore, offering significant opportunities for both homegrown and international brands to capture a larger share of the restaurant market.  Varun Kapur, Executive Director at Travel Food Services and K Hospitality Corp, talks about why it’s the best time to be in the Indian F&B space. K Hospitality is home to award winning home-grown brands like Copper Chimney, Bombay Brasserie, The Irish House, Joshh, Blue Sea to name a few and is also bringing in globally renowned brands such as Wagamama and Gordon Ramsay’s Restaurants to India, Here are 4 Key-takeaways from him:

Right Industry at the Right Time:

“There’s no denying that we are in the right industry, in the right country, at the right time," Kapur pointed out. He highlighted, that after financial and retail services, the F&B sector is now the third largest in India. The Indian GDP is projected to grow at 7-8%, but the F&B industry is set to grow even faster, by an additional 1-2% over that. This means, the F&B sector will play a pivotal role in driving the country’s economic growth. "Earlier, people would eat out just 1-2 times a month. Today that same consumer is eating out 10 times a month, whether at restaurants or through online deliveries. That’s where the 400% growth is coming from,” Kapur noted.

The Emergence of the Organised Sector:

As consumer demand grows, the F&B sector is becoming increasingly organized. A major shift is underway, with large corporations entering the market and small restaurants growing into corporate groups, contributing to the formalization of the industry. "In the next five years, the organized sector will surpass the unorganized sector," Kapur predicted.

Indian Food has Become Cool:

Concept-driven restaurants have transformed Indian cuisine, making it more appealing and modern. “Indian cuisine is now considered one of the coolest in the world,” said Kapur. Ingredients like millets and coconut, once our traditional staples, are now featured prominently on menus globally, giving Indian food a trendy edge.

Travel Retail is the Next Big Thing:

Travel retail is booming, presenting a massive opportunity for F&B brands. “Airports are becoming hubs for new dining experiences as travellers seek to try new things on the go,” Kapur observed. Similar to and even surpassing most restaurants, some of the  top international lounges feature elaborate menus with creative dishes that change weekly, offering a customized and personalized experience. This trend is very much visible in India, signalling a bright future for F&B in travel retail.

The concept of solo dining has undergone a remarkable transformation, especially in urban centres across the globe, and India is no exception. Historically, dining alone in public was often viewed with curiosity, if not sympathy. Individuals sitting alone at a table would be assumed to be lonely, without friends, or perhaps waiting for company. However, in recent years, dining alone has shifted from being a social anomaly to a symbol of independence, introspection, and personal empowerment. Today, solo dining is embraced as a growing trend, with more people opting for a table for one as a form of self-care, especially in an increasingly individualistic, fast-paced world.

The Global Rise of Solo Dining

Across the globe, solo dining has seen significant growth. In the U.S., solo dining reservations have risen by 29% over the last two years, according to OpenTable, with similar trends emerging in Europe and Asia. Japan, a country where individualistic dining behaviours like "ohitorisama" (the act of doing things alone) have long been accepted, has seen a noticeable increase in people dining out solo, rising from 18% to 23% over six years. In South Korea, nearly half of all meals are consumed solo, signalling a significant cultural shift from traditional communal dining.

This is not just a Western phenomenon countries like the UK and Germany have seen increases of 14% and 18%, respectively, in solo dining reservations. Globally, solo dining is becoming part of a broader lifestyle shift, where individuals prioritise self-care, independence, and convenience. This trend has been spurred on by factors such as the rise of remote work, longer working hours, and urbanisation, which has pushed people to embrace dining experiences that fit seamlessly into their schedules.

The primary factors driving this trend include changing demographics, the shift of dining out from a luxury to a lifestyle, the rise of individualism and the move toward more personalised lifestyles, work-related stress, and the desire to fully immerse in flavours and textures. "Interestingly, I often find myself eating alone during business trips or between meetings," says Adeeb Shah, co-founder of Kofteci Group.

Shah anticipates that this trend will grow as more individuals become comfortable with solo dining, and as society increasingly accepts it as a normal and enjoyable experience.

India: A Cultural Shift towards Dining Alone

In India, where food has always been central to family and community life, the rise of solo dining signals a significant cultural shift. Traditionally, meals in Indian households and restaurants are social events where people share, and celebrate with family or friends. However, this is gradually changing as solo dining, especially in metropolitan areas, becomes a reflection of the evolving urban lifestyle. Driven primarily by millennials and Gen Z, solo dining in India is closely tied to emerging ideas of "me time," self-care, and a rejection of traditional social expectations.

Why Solo Dining is Thriving Among India’s Youth

One of the key reasons behind this rise in solo dining in India is the demographic shift towards younger generations who value personalised, flexible dining experiences. Millennials and Gen Z have grown up in a fast-paced, digital world where independence and individual expression are celebrated. For them, dining alone is not about social isolation but a form of self-expression, reflecting a desire for control over their time and space.

Social media also plays a significant role in this shift. Many solo diners document their experiences, turning their meals into personal moments shared with their online communities. Vamsi Mareddy, co-founder of Paper & Pie in Bangalore, observes that “me time” has become a powerful motivator for solo diners, especially among those looking for time to reflect or recharge away from the demands of their social and professional lives.

Changes in work culture, such as remote work and the gig economy, have also contributed to the increase in solo dining. Professionals now have the flexibility to dine alone during breaks or between meetings, and restaurants have adapted to meet this demand by offering options that cater to solo diners’ need for efficiency, such as quick meals or smaller portion sizes.

How Indian Restaurants are Catering to Solo Diners

The rise of solo dining has prompted Indian restaurants to rethink their traditional approaches to hospitality. While Indian dining establishments have historically catered to large groups and families, many are now recognizing the value of creating welcoming environments for solo diners. In response, restaurants are offering smaller portion sizes, curated set menus for one, and thoughtfully designed seating arrangements. Some restaurants, like Chowman in Kolkata, have introduced "Meals for One" packages, while others, like Burma Burma, offer solo dining menus that feature a range of their most popular dishes tailored to individual portions.

Ajit Singh Garcha, Area General Manager, THE Park Hyderabad shares that, THE Park Hyderabad celebrates solo dining. “Our spaces are thoughtfully designed for those who cherish their own company too. We understand the unique needs of solo diners and strive to make their experience truly Anything But Ordinary. Aqua, our glamorous poolside al-fresco, serves beautifully pre-plated single portions. Our specially crafted menus allow guests to savour a complete dining experience without feeling overwhelmed by large servings.”

Is Solo Dining Here to Stay?

The rise of solo dining reflects broader societal changes and is likely to stay, particularly in India’s urban centres. The increasing emphasis on individualism, flexibility, and self-care among younger generations suggests that dining alone will become a more common and accepted practice. While India’s communal dining culture remains strong, solo dining has carved out its own niche, offering a space for introspection, relaxation, and culinary enjoyment without the need for social interaction.

Moreover, with restaurants recognizing the value of catering to solo diners, this trend is set to grow. The Indian restaurant industry is adapting, providing an array of options that range from casual eateries to fine-dining establishments, all designed to make solo diners feel comfortable and valued. In a world where people are increasingly seeking balance between social life and personal time, solo dining offers the perfect blend of independence and indulgence.

The global trend of matcha started with Hollywood actor Gwyneth Paltrow, who had posted on social media, about trying a matcha latte at a local coffee shop way back in 2015. For some, drinking matcha was just a status symbol while presently people are increasingly going after it for health benefits. Since, people are going crazy for trying to be healthy; matcha is one of the most preferred options in India. With the use of social media and influencers promoting the healthier options, many restaurants are coming up with matcha drinks or desserts. So, ever wondered what is the origin of it?

Origin of Matcha

More than 900 years ago, a Buddhist monk imported matcha from the Chinese Tang era to Japan. Since then, matcha has been seen as an important component of the Zen Buddhist. Matcha, which means "powdered tea" in Japanese, is either a beverage or a component of the food preparation process. This tea is served at their tea rituals and has held a high status for ages. This stimulating beverage is a member of the green tea family. 

According to reports, the matcha market would be valued USD 2.36 billion in 2024 and rise at a compound annual growth rate (CAGR) of 4.17% to reach USD 2.89 billion by 2029.

Emerging trends

More creative flavor combinations are probably in store as companies try to reach a larger market. Innovative pairings like matcha chocolate or matcha-infused energy bars, as well as matcha-infused drinks like kombucha or sparkling water is on trend. There are countless options because of its potent antioxidants; matcha is an excellent choice to be the next major ingredient in skincare products.

Tech-driven Matcha experiences

The food and beverage business has undergone a technological transformation, and the matcha sector is no different. Future matcha experiences will likely be tech-driven and tailored toward the needs of the contemporary consumer. For matcha consumers, Virtual reality (VR) and Augmented reality (AR) have the potential to bring ancient Japanese tea ceremonies to life through immersive and beneficial experiences.

The Rise of Matcha Cafés in India

Expressing her viewpoints, Pinky Chandan Dixit, Chef & Owner at Aamchee explained that “Over the years, matcha has evolved from a traditional Japanese tea ceremony staple into a global phenomenon. We’ve seen firsthand how it’s gained popularity, not just for flavours, but for its health benefits like the ability to boost metabolism. The market for matcha is expanding widely because of both consumer demand for healthier options and the influence of social media, where influencers and nutritionists regularly share matcha recipes and benefits. We’ve seen it grow from a niche product into an everyday item, featured not just in tea but in desserts, smoothies, and even beauty products. If we talk about challenges, matcha is still relatively new to many regions, and its higher price point can be a hurdle. It will still take time for consumers to fully embrace it so innovations like matcha-infused snacks and beverages have made it more accessible and versatile. Because it offers a unique flavour and a sense of mindful, elevated consumption, we believe matcha is here to stay, and as consumer awareness grows, its place in restaurants and cafés like ours will grow too.”

“Historically the use of matcha in restaurants was limited to high end kaiseki meals and speciality establishments focussed on Japanese tradition. In 2000s, matcha was introduced in modern Japanese cafes and tea houses as a key ingredient in matcha lattes & desserts .It soon gained global popularity largely driven by social media and the rise of wellness culture owing to its various health benefits and it became a fashionable ingredient in cafes with matcha lattes, smoothies and baked goods. The use of Matcha has grown and diversified into products such as matcha infused cocktails, sauces, cheesecakes, puddings etc. The challenges faced in this segment are high cost, taste, sourcing, storage and the fact that using it in F & B is time consuming and skill based,” commented Ashish Singh, COO & Culinary Director at Cafe Delhi Heights who added that it's trending because of both consumer demand and its perceived health benefits. 

Health-consciousness among the consumers

Speaking about the various matcha-infused drinks, Pallavi Shetty, Founder of Luuma House said, “The evolution of matcha in the restaurant industry has been significant over the past decade, growing from a niche ingredient in traditional Japanese tea ceremonies to a mainstream global trend. Initially introduced in upscale cafes and health-conscious eateries, matcha’s popularity surged due to its rich antioxidant profile, unique flavor, and versatility. Its applications now span from lattes and desserts to savory dishes, with restaurants incorporating matcha into diverse menus. We also have introduced Matcha in our dessert menu - The ‘Matcha-Misu’ in our dessert menu is a twist on the classic Italian Tiramisu.”

She added, “The global matcha market was valued at around $3 billion in 2022 and is expected to continue growing as consumers prioritize wellness. However, challenges remain, including expecting customers to know the difference between premium and lower-grade matcha, high production costs, and sustainability concerns in sourcing matcha. Future innovations in the segment include matcha-infused cocktails, plant-based matcha products, and creative uses in fine dining, signaling a bright but competitive future for matcha in the restaurant world.”

Elaborating on good-quality macha, Karreena Bulchandani, Founder, Mokai said, “Finding good-quality matcha is important, especially in countries where it’s still new. Social media has helped make matcha more appealing, with celebrities and influencers frequently seen with matcha drinks. While some people enjoy its taste right away, others take time to adjust. Matcha also has several health benefits, like improving focus, boosting metabolism, supporting the immune system, and even helping detox the body” who added that the challenges are more in making a proper matcha.

The water temperature must be precise, and we only use wooden or bamboo tools to maintain its authentic flavor, avoiding steel, which can alter the taste. We exclusively use ceremonial-grade matcha to ensure a premium experience, crucial in introducing such a new ingredient to a tea-loving country.

We are developing a menu with options like 'whisk your own matcha,' matcha shots, and a matcha-misu drink. While matcha is still an acquired taste, we carefully balance it with natural ingredients like strawberries or mangoes to enhance the flavor without overpowering it. With India slowly embracing matcha’s health benefits, we aim to promote it alongside coffee,” she added.

While, it has been said that the consumption of matcha will increase in the long run as people are still educating themselves with the benefits and restaurants venturing in to this segment. This niche industry is bound to grow more in the near future.

The Indian restaurant industry began 2024 on uncertain footing, grappling with challenges from rising food inflation. After a short-lived boom of "revenge dining" following the pandemic, restaurants saw a significant dip in customer footfall. High food prices, particularly for essentials like vegetables, cereals, and pulses, combined with a cautionary approach to spending by consumers, led to reduced profitability across the sector. The first quarter of the year, typically a promising period for restaurants, became a difficult landscape for both fine dining and casual outlets.

Inflation had a particularly acute effect on the restaurant business. For example, food inflation surged to over 10% in June 2024, significantly raising input costs for restaurateurs. Items that form the backbone of Indian cuisine, such as tomatoes, onions, and grains, became more expensive, making it hard for restaurants to maintain profit margins without raising prices on their menus. However, given that customers were already reducing their discretionary spending, this further reduced traffic, creating a cycle of diminished returns.

Teja Chekuri, Founder of Full Stack Ventures, highlights the impact of this price surge, “The surge in food prices in the first part of the year did pose a significant challenge to the restaurant industry, as most of us grappled with the complexities of either absorbing the increased costs and letting it impact our margins or passing it on to customers and bracing for an adverse impact. These problems obviously would come to pass, as the strain was caused by significant natural calamities, geopolitics and socio-economic factors that led to supply chain disruptions.”

The competition from cheaper, unorganised players also exacerbated the issue. Many small-scale eateries and street food vendors, who operate at a lower cost, became more appealing to price-conscious consumers. Quick-service restaurants (QSRs) and organised dining chains faced stiff competition, particularly as they were hit harder by inflation due to higher operational costs.

Economic Optimism and the Promise of Recovery

Despite these hurdles, industry leaders are optimistic about a turnaround. Speciality Restaurants Ltd, which owns popular brands like Mainland China and Sweet Bengal, believes that the challenges are temporary. Anjan Chatterjee, CMD of Speciality Restaurants, noted that food inflation is a short-term phenomenon and expressed confidence in India's economic fundamentals. As inflation begins to ease, he anticipates a resurgence in dining out.

There are reasons for this optimism. By July 2024, food inflation had fallen to 3.45%, a significant drop from June's over 10% rate. This easing inflation, coupled with strong economic fundamentals such as improved employment rates and rising disposable incomes, provides the industry with a more stable environment. As wages rise and employment generation improves, consumers are likely to return to restaurants, further buoying the sector.

“However, with that behind us, we are extremely optimistic that the turnaround is in process and that’s primarily due to investor confidence in the Indian growth story, and the demonstrated resilience of India’s economy in the face of global uncertainties. India’s steady GDP growth, falling fiscal deficit, favourable policies for MSMEs and a burgeoning middle class, has been a marker of this optimistic view we hold,” Chekuri added.

Industry analysts point out that India’s robust economic growth could support a strong rebound. The IMF has projected India’s economy to grow by 6% in 2024, one of the highest rates among major global economies. This growth is likely to increase consumer spending, which will benefit sectors like dining and hospitality.

Key Trends Driving the Industry's Revival

One of the main drivers behind the recovery is the growing demand for food delivery services. The pandemic fundamentally changed consumer behaviour, pushing more people to order food online. Even as restrictions eased, this trend continued, with the food delivery market growing by 52% since the pandemic began. This demand is expected to persist, growing by 10.3% annually between 2023 and 2030.

Restaurants are capitalising on this shift by expanding their delivery options and investing in cloud kitchens. These "ghost kitchens" focus exclusively on online orders, significantly reducing overhead costs like rent and front-of-house staff. By eliminating the need for physical dining spaces, restaurants can increase their profit margins while meeting the growing demand for convenient, at-home dining experiences. “The growth in food delivery services has been a lifeline for us and will continue to fuel recovery. Similarly, automation and cloud kitchens have helped reduce costs and improve operational efficiency,” said Nishit Rajvanshi the founder of Mumbai-based Chango Wings. 

Technological innovations are also transforming the industry. From AI to robotics, restaurants are increasingly adopting advanced technologies to improve operational efficiencies. In cities like Mumbai, fine dining establishments are leading the way by incorporating automated systems that enhance customer service and streamline operations. This push toward innovation is helping restaurants reduce costs and improve profitability, even as they navigate inflationary pressures.

Moreover, digital marketing is becoming a cornerstone of restaurant strategies. With 88% of consumers trusting online reviews over personal recommendations and 75% using social media to decide on a restaurant, a strong online presence is now essential. Restaurants are leveraging social media platforms and digital advertising to engage customers, build loyalty, and drive footfall.

The Resilience of Fine Dining and Casual Dining

The fine dining segment, in particular, has shown resilience amid economic challenges. A report by the National Restaurant Association of India (NRAI) highlights that consumers are increasingly drawn to premium dining experiences. While inflation has raised food prices, it has also led to a shift in consumer preferences toward quality over quantity. More consumers are seeking out memorable dining experiences and are willing to spend more on premium ingredients, ambiance, and service.

This shift has encouraged fine dining restaurants to innovate with their menus, offering niche culinary experiences that cater to evolving consumer tastes. The concept of "farm-to-table" dining, which promotes locally sourced and sustainable ingredients, has gained popularity. By integrating seasonal produce and fresh ingredients, restaurants can not only mitigate the effects of inflation but also align with consumer preferences for healthy, sustainable dining options.

Future Outlook and Challenges Ahead

While the industry is poised for recovery, challenges remain. Inflationary pressures, particularly on labour and food costs, will likely persist, making it critical for restaurants to innovate continuously. The rise of food delivery, contactless payments, and technology-driven operations will shape the industry in the years to come, but staying profitable in a high-cost environment will require careful planning and execution.

Sharing optimistic perspective on the future, Chekuri commented, “With eventual easing conditions, and India’s demographic advantage and growth trajectory, we are bound to see an economic upturn in the restaurant industry, which if backed by policy support from the government, will grow from strength to strength.” 

Restaurants will need to balance pricing strategies with consumer expectations, ensuring that they do not alienate their customer base by passing on too many costs. Additionally, the push for sustainability and local sourcing, while beneficial in the long term, could drive up costs in the short term.

However, the long-term prospects remain bright. With annual growth in the food services sector projected at 8.1% between 2024 and 2028, driven by urbanisation and technological advancements, the restaurant industry is expected to flourish once inflation stabilises. The combination of a growing middle class, increasing disposable incomes, and a shift toward quality dining experiences will fuel the industry's recovery and growth in the coming years.

The culinary industry is experiencing an unprecedented surge in demand for skilled chefs, reflecting a broader shift in consumer preferences, lifestyle changes, and industry innovations. This culinary boom is reshaping the landscape of dining and food preparation, revealing deeper trends that are driving the demand for chefs to new heights.

Evolving Dining Preferences: One of the primary drivers behind the skyrocketing demand for chefs is the evolution of dining preferences. Consumers today are more discerning and adventurous than ever before. The rise of food tourism, where travelers seek unique culinary experiences, has fueled a greater demand for chefs who can deliver innovative and culturally diverse dishes. Restaurants are increasingly looking to attract and retain patrons by offering unique dining experiences that stand out in a crowded market. This trend is leading to a greater need for chefs who are not only skilled in traditional cooking techniques but also adept at creating novel and exciting culinary creations.

The Influence of Social Media: Social media has dramatically changed the way people perceive and engage with food. Platforms like Instagram, TikTok, and YouTube have become culinary showcases where chefs can gain fame and influence through visually appealing and creative dishes. This has led to a heightened demand for chefs who can produce not just delicious but also aesthetically stunning food. The visibility and recognition gained through social media can translate into significant business opportunities for chefs and restaurants, further driving the need for talented culinary professionals.

The Rise of Health and Wellness Trends: The growing emphasis on health and wellness has also contributed to the increased demand for chefs. As more consumers become health-conscious, there is a rising need for chefs who can create nutritious and balanced meals without compromising on taste. This trend is evident in the popularity of plant-based diets, gluten-free options, and organic ingredients. Chefs who can cater to these dietary preferences while maintaining high culinary standards are highly sought after. This shift is encouraging chefs to expand their skills and knowledge in areas such as nutrition, dietary restrictions, and sustainable food practices.

The Growth of the Food and Beverage Industry: The food and beverage industry itself is expanding rapidly, with new restaurants, cafes, and food-related businesses opening at a brisk pace. This growth is driven by factors such as increased consumer spending on dining out, the rise of food delivery services, and the proliferation of specialty food and beverage concepts. Each of these new ventures requires skilled chefs to bring their culinary visions to life. The increase in food-related businesses not only creates more job opportunities for chefs but also raises the bar for culinary excellence as competition intensifies.

Innovation and Technology in the Kitchen: Technological advancements in the kitchen are also playing a role in the growing demand for chefs. The integration of modern cooking technologies, such as sous-vide machines, molecular gastronomy tools, and advanced kitchen appliances, requires chefs to acquire new skills and adapt to evolving techniques. Chefs who can master these innovations and incorporate them into their culinary practices are in high demand. The ability to leverage technology to enhance food preparation and presentation is becoming a key differentiator in the competitive culinary landscape.

The Impact of Culinary Education and Training: As the culinary industry grows, there is a greater emphasis on formal education and training for aspiring chefs. Culinary schools and programs are expanding their offerings to meet the rising demand for well-trained professionals. These educational institutions are providing aspiring chefs with the skills and knowledge needed to succeed in a dynamic and competitive industry. The increased focus on culinary education is helping to produce a new generation of skilled chefs who are ready to meet the demands of a rapidly evolving culinary world.

The Role of Celebrity Chefs and Media Influence: Celebrity chefs and food media have also contributed to the increased demand for chefs. The success of high-profile chefs who have gained fame through television shows, cookbooks, and restaurant ventures has created a surge in interest in the culinary profession. The visibility and influence of these culinary stars have inspired many individuals to pursue careers as chefs and have elevated the status of the profession. As more people aspire to follow in the footsteps of their culinary heroes, the demand for skilled and innovative chefs continues to rise.

The demand for chefs is soaring due to a confluence of factors, including evolving dining preferences, the influence of social media, health and wellness trends, industry growth, technological innovations, advancements in culinary education, and the impact of celebrity chefs. As the culinary world continues to evolve, the need for talented chefs who can adapt to these changes and deliver exceptional dining experiences is stronger than ever. 

Theme-based restaurant is attracting customers for quite a sometime now where the restaurant owners are trying to align the décor, food and interior with the theme. With the rise in social media, the popularity of these restaurants among the customers is high. Also, with the increasing viewers for the online series and dramas, people have this urge to try Korean food in a Korean-theme restaurant or Mexican food in a Mexican-theme restaurant, experiencing those vibes quite literally in the environment.

What’s Pushing this Trend

“Theme-based restaurants have a rich history spanning decades, but their true evolution has taken place over the last 10-15 years as dining experiences have shifted from simply enjoying a meal to seeking immersive, memorable moments,” commented Gaurav Shetty, Director, Peninsula Hospitality that Wakiki, a restaurant that aims to encapsulate the Hawaiian spirit, offering the guests not just a dining experience but a mini vacation through their ambience, décor, and menu. 

There’s no denying that the future of theme-based restaurants is bright, with a growing emphasis on authenticity and the creation of deeper connections with guests through thoughtfully curated environments that offer more than just a place to eat, but a place to experience something truly special.

“By creating a thematic dining environment, restaurants like ViVi take guests to the heart of Italy, combining authentic Italian cuisine with a thoughtfully curated ambiance. This thematic approach not only enhances the dining experience but also caters to the modern consumer’s desire for memorable, engaging outings. The success and future of theme-based dining is evident in its growing popularity, as these venues offer more than just food—they provide a fulfilling experience that appeals to the senses and emotions,” commented Niketa P Sharma, Owner & Founder, The Thane Club - Vivi Italian Bar & Kitchen.

Consumer is at the Forefront

The evolution of theme-based restaurants in India reflects changing consumer preferences and a growing appetite for unique dining experiences. As the industry continues to evolve, we can expect even more innovative concepts that cater to diverse tastes and preferences. Since, there is cultural influence, rise of celebrity chefs, urbanization and changing lifestyle, social media influence, culinary shows etc that’s giving a way to the world of theme-based dining.

“Restaurant owners can attract customers by having an immersive atmosphere, interactive dining, Instagram-able spaces, creative food offerings, interesting fusions, special events, seasonal menus,” added Harshadeep Pawar, Head of Operations and F&B at Ilili.
Commenting on the same, Shaurya Malwa, Co-Founder, Nho Saigon, Mumbai’s first Vientnamese restaurant pointed, “Nho Saigon offers a warm and inviting setting perfect for any occasion, celebrating Vietnamese cuisine through regular food festivals and special events. The restaurant’s commitment to quality and customer satisfaction is evident in every aspect, from the thoughtfully curated menu to the warm, inviting environment.”

Hence, it is evident that the restaurant business is constantly changing as we look to the future. Restaurants may survive in a constantly shifting environment by adopting innovation and staying ahead of the curve. 

The restaurant space across the world is going through a transformation. The changing palette of customers, the awareness around healthy food habits, the coming in of technology and a lot many factors are fast changing the restaurant scene in India and also abroad. COVID- 19 too had a transforming effect on the restaurant ecosystem and has taught the industry a lot many new things while helping it unlearn some. In this ever-changing restaurant industry, here are 5 culinary practices that are fast changing the restaurant scene.
 
Integration of Technology

The restaurant industry has seen unprecedented technological enhancements that have completely changed the way people are dining out. From digital menus, mobile apps to order food and reserve a table, QR code to scan and pay to a backend Artificial Intelligence driven analytics, the restaurant experience is completely digitalized today. While for the consumer, the restaurant experience can be completely contactless, the back-end technology also supports automated inventory management and analysing consumer preferences to serve the customers better. With technology, the experience has become more personalised, curated and seamless. 

Focus on Health and Wellness

Consumers today are becoming more health conscious, leading to a change in eating habits. This has led the restaurants to respond by offering more nutritious menus. The restaurant menu has gone through a complete transformation in recent times with the inclusion of many healthier options beyond soups and salads, often with a calories’ breakup and other detailed specifications. Restaurants today follow the protocol of transparency providing all details about ingredients used along with their nutritional details. There have been new additions in the menu too such as vegan, gluten-free and a lot more options.   

Emphasis on Sustainability

Restaurant Sustainability is the new normal. A lot of emphasis is being given to sustainability, right from sourcing the right ingredients, to reducing food waste to even serving in eco-friendly tableware. The goal today is to reduce the impact on the planet and restaurants are making a positive shift toward sustainability. More and more restaurants are making an effort to narrow the supply chain by ordering locally grown produce. Recyclable paper napkins and linens are being used more often besides focusing on biodegradable packaging. Reducing food waste is another important factor that restaurants take into account very seriously and also go a step ahead in sensitising the customer and staff alike.  

Cloud kitchens are here to stay

The entry of cloud kitchens and their success is a big achievement for the restaurant industry. It has helped many small businesses to grow and expand. Cloud kitchens are a great way to cut overhead costs and hence build a flourishing business. With the trend of ordering food seeing an unprecedented rise during and after lockdown, cloud kitchens have come up as a parallel entity besides sit-down restaurants. And with the demand for outside food increasing among the consumers, there will always be a demand for food from cloud/ghost kitchens. Cloud kitchens also serve a widespread menu including healthy dishes and international cuisines besides the regular Indian fare.  

Celebration of Cultural Diversity

Restaurants today have the most widespread menu. With consumers today becoming more and more experimental in their food choices, restaurants today cover a wide range of global cuisine. While there has been a rise in multi-cuisine restaurants, there has also been a huge growth of restaurants serving international cuisines. There are many restaurants today that serve authentic Pan-Asian, Japanese, Korean and other cuisines. Restaurants today celebrate the diversity in world cuisine besides holding on to the all-time traditional Indian fare.

The much awaited budget for the newly formed government led by the NDA alliance on Tuesday couldn’t bring much relief to the restaurant and hospitality sector. Finance Minister Nirmala Sitharaman unveiled the Union Budget for the fiscal year 2024-25 yesterday. Though, people are appreciating the budget for its focus on infrastructure development, employment generation, and support for spiritual and cultural tourism, it has received a mixed reception from the hospitality and tourism sector.

“Budget 2024 was quite mixed. While it does provide a promising outlook in terms of tax reforms, infrastructure development, skill development in youth as well as aim on reducing the overall fiscal deficit, there seems to be considerable uncertainty in implementation while sector-specific considerations, especially for the hospitality sector remain,” shared Teja Chekuri, Managing Partner at Ironhill India. 

Commenting on the same, Kabir Suri, President, National Restaurant Association of India said, “Reflecting on the recently announced Union Budget, we would like to commend the Government and our Honourable Finance Minister Smt. Nirmala Sitharaman, for looking to establish economic measures that will drive India towards a better economic future. The EPF support for new hires will go a long way in significantly bolstering levels of employment in the country. This is crucial in developing a stable, secure and robust workforce which will be beneficial to all industries including the food services sector. The reduction in income tax slabs is a commendable move, empowering individuals with greater savings and disposable income, thus driving higher consumption levels, an essential catalyst for sustained economic momentum.”

He further added, “The emphasis on boosting tourism is a strategic step towards revitalizing the sector, promising a resurgence in hospitality industries. Also, support given to the MSMEs in the form of Mudra loan limit increase needs to be applauded. It is unfortunate that MSMEs in the food service sector will miss out due to the fact that the Food Services sector has not been recognised as an industry yet.”

According to the recent Economic Survey that has laid focus on the creation of 8 million jobs each year till 2036. The food services sector is ideally positioned to drive this goal since it employs people with all education and skill levels. The current direct employment by the industry of 8.5 million people is slated to grow by more than 20% to 10.5 million in the next four years. However, lack of GST Input Tax Credit for the industry is slowing down the growth and job opportunities of this otherwise vibrant sector.

“Finance Minister Nirmala Sitharaman's focus on establishing skill-based programs for the hospitality and restaurant industries is a positive step towards enhancing the sector's contribution and smooth operation. However, while these measures are appreciated, we had hoped for more targeted support for the restaurant industry. Additional initiatives specifically addressing the needs of restaurants and businesses would have been beneficial in fostering further growth and resilience," pointed Pranav Rungta, Co-Founder and Director at Nksha.

Though, Abhishek Sarwate, CEO, Utopian Drinks, believed that the budget is very positive for startups because of 2 major steps: "Angel Tax" abolishment and reduction of LTCG tax on unlisted equities to 12.5% from 20%.

“This will reduce uncertainty and compliance burden on startups and make startup investing more attractive. This should lead to more capital flowing into the startup ecosystem, leading to job creation. This is definitely a step towards Viksit Bharat for 2047,” he added.

The restaurant business is a unique subset of the larger hospitality and food service industries. Restaurants are always adjusting to fit customer preferences. They make things better and more sustainable by utilizing innovative technology and concepts, particularly with reference to sustainable sourcing. Businesses in the food and hospitality industries can succeed in this dynamic industry by having a solid understanding of how restaurants operate. 

A group of committed and enthusiastic workers is the foundation of any successful restaurant business. It can be difficult to hold onto your important team members in an industry for its fast-paced work atmosphere and high employee turnover rates.

Whether you run an upscale fine-dining restaurant or manage a fast-food franchise, you’ve seen the difficulties that come with hiring and maintaining a great restaurant team. It’s important to focus more on how to stay staffed instead of the staffing shortage itself. Understanding the reasons for high restaurant employee turnover rates is just the first step in being able to combat it.

Here are the key strategies to look at to retain staff in the restaurant sector:

Investing in right resources: There’s no denying that restaurants can’t work without their staff and it’s their biggest asset. Therefore, it’s always important to invest in the right resources. “We believe our greatest asset is our people. We are dedicated to nurturing their skills and investing in the resources they need to succeed. By providing continuous training and clear growth paths, we ensure every team member can envision a bright future with us. Our goal is to create a supportive environment that values and appreciates each employee, from the friendly faces in our outlets to the dedicated staff behind the scenes,” shared Tarak Bhattacharya, Executive Director & CEO at Mad Over Donuts by adding that they are committed to spreading joy not just to their customers, but within their team as well, fostering a culture of growth, happiness, and shared success.

Keeping the Environment Pleasant: Over the years we have seen that staffing in the restaurant industry is a challenge and what was there 10 yrs ago will remain for the next 10 yrs and beyond. “We keep the working environment pleasant and amenable and also link store performances with pay out,” said Dheeraj Gupta, Managing Director, JumboKing by pointing that invest in their training is the key and that’s how they keep getting better and more valuable hence better paid.

Commenting on the same, Chef Huang, Corporate Executive Chef at The Oriental Blossom, Hotel Marine Plaza, said, “In my kitchen and restaurant at The Oriental Blossom, I believe the key strategy to retain staff revolves around several core principles. First and foremost, it's essential to cultivate a positive and harmonious working environment. This sets the tone for everything else.”

He added, “Teamwork and bonding are crucial. I make it a point to integrate new team members without overwhelming them, ensuring they feel welcomed and supported. Continuous training is another cornerstone. I believe in on-the-job training that offers our team new learning experiences regularly.”

Offer Career Growth opportunities: “To retain staff in the restaurant sector, focus on competitive wages, comprehensive training, and a positive work culture. Recognize and reward hard work and loyalty, offer career growth opportunities, and ensure there is no burn out. Building a supportive and engaging environment fosters loyalty and reduces turnover, essential for sustained success,” mentioned Eesha Sukhi, Founder, The Bluebop Café as she thinks that being an approachable leader that aligns with everyone with the vision of the company and foster ownership in all employees.

The food services market in India, which encompasses dining out and ordering in, is currently valued at INR 550K Crore. The market is poised to grow at 10%–12% annually over the next seven years, reaching INR 900–1000K crore by 2030,” shared a report by Swiggy and Bain & Company.

According to the report, this growth trajectory will be driven by robust fundamentals including an expanding customer base, growing consumption occasions, and a rise in supply. 

Additionally, online food delivery is expected to grow faster at ~18% CAGR, contributing 20% to the overall food services market by 2030. 

These are among the findings from the latest study, ‘How India Eats’ released today by Bain & Company and Swiggy. The report aims to decode the underlying, complex demand characteristics of the food services market in India and trends that will shape this demand going forward.

“The Indian food services market, especially food delivery, has witnessed buoyant growth over the last few years. Higher incomes, digitization, improved customer experience, and an inclination to try new experiences have all contributed to this growth. For instance, China has four times the number of restaurants per million urban population, as compared to India,” shared Rohit Kapoor, CEO, Food Marketplace, Swiggy by adding that the Indian food service market catering to middle- and higher-income segments will expand from INR 400-500 K crore at present, to about INR 1000 K crore by 2030.

The food services market has undergone substantive evolution over the last decade, with the rise of restaurant chains and the foray of online food delivery, reflecting significant shifts in consumer behavior and industry dynamics. 

“The Indian food services market stands at the cusp of transformation. The sector’s dynamic nature, characterized by shifting consumer behaviours, digitization, and regional diversity, offers immense growth potential. As we look toward the next decade, with an estimated growth rate of 10%–12% annually, exciting opportunities loom on both the demand and supply fronts,” added Navneet Chahal, Partner and co-author of the report by pointing that by 2030, the market is poised to serve an additional 110 million customers, gradually shifting eating out from a special event into a convenient lifestyle.”, said 

Hyperlocal consumption patterns 

According to the study, approximately 70% of food services consumption as of 2023 is concentrated in the top 50 cities and among upper-middle and high-income segments, which are expected to remain demand hotspots in the medium term. However, incremental growth is expected to come from other tier 2 and beyond cities as well.    

Notably, Gen-Z and younger cohorts comprise 40% of consumption but have a higher propensity to eat out, a trend expected to grow further as their purchasing power increases. Another interesting trend is that each customer, on average, orders more than three cuisines from over six restaurants on an online platform in a year, suggesting that Indian consumers seek variety in their dining experiences across different occasions.

Market projections and the 2030 growth story 

The Indian food services market is poised for continued growth, driven by an expanding customer base and significant shifts in dining habits. The addressable customer base for the Indian food services market is expected to expand by 110 million, growing from the current 320–340 million to approximately 430–450 million by 2030. This surge will be supported by macroeconomic tailwinds including rapid urbanization and a rise in affluence. 

Eating out is a special event for Indian consumers with an average of 5 times per month, which is expected to increase to 7–8 times by 2030. This gradual shift will point to a transition in the way eating out will be perceived, moving from special occasions to a matter of convenience, with new occasions (e.g., mid-meal dayparts) and greater access (expansion of organized supply, food delivery growth). A trend that mirrors developed markets like the US and China, where eating out is convenience-led and the monthly eating out frequency is 25–30, thus indicating massive headroom to drive new occasions in India.

Online food delivery on the rise 

Online food delivery has steadily increased, with penetration rising from 8% to 12% between 2019 and 2023, representing a 2.8 times growth in online food delivery compared to overall food services. This rise was accelerated by the Covid pandemic. Nevertheless, there remains significant growth potential when compared to markets like the US and China, which have double the penetration rates of India.    

The shift to online food delivery has also unlocked new growth avenues while permanently altering consumption preferences, including – an uptick in new dining occasions, evolving customer criteria for selecting restaurants, and the increase in competition. Driven by the higher adoption of digitization in customer journeys and greater accessibility, online food delivery is estimated to grow at approximately 18% year-on-year, reaching INR 212K crore over the next seven years. Its market penetration is expected to increase from the current 12% to around 20% by 2030.
    
Furthermore, the study indicates faster growth in convenience-led formats—QSRs and cloud kitchens with propositions such as quick service, simplified menu, value for money, etc. are expected to grow 40% faster than the overall market from 2023 to 2030. 

Key trends that will impact ‘eating out’ in India 

The landscape of 'eating out' in India is undergoing significant transformation, driven by key trends such as ‘Self-love’, ‘Experience Upgrade’, ‘Digitization’, and ‘Glocalization’ that are poised to reshape the industry dynamics profoundly. 

The food and beverage landscape within the hospitality sector is undergoing a remarkable transformation, driven by innovative strategies and evolving consumer demands. 

Implementation of Safety Measure: Highlighting one of the most significant trends, Soumitra explains that the implementation of enhanced safety measures in dining areas is to provide a secure and reassuring environment for guests. This focus on safety is further complemented by a strong commitment to sustainability, with hotels adopting practices to minimize food waste and promote eco-friendly operations.

Health is in Focus: In response to a growing preference for healthier eating, hotels are expanding their offerings to include more organic options. This commitment to health and wellness is further supported by the introduction of convenient grab-and-go facilities, catering to the busy lifestyles of modern consumers. “By offering fresh, organic, and nutritious options, we ensure that our guests can maintain their dietary preferences without compromising on convenience,” he adds.

Innovation is the Key: To stay competitive, hotels are leveraging their food and beverage facilities to drive innovation and expand their services. This involves embracing eco-friendly innovations, integrating advanced technologies to streamline operations, and empowering staff through comprehensive training programs. Soumitra says that enhanced safety protocols have become a cornerstone of this transformation, with hotels implementing rigorous sanitation practices and reimagining dining spaces to ensure social distancing. The safety and comfort of guests are paramount, and these measures instill confidence and peace of mind.

LTOs and Loyalty Programs to Retain Customers: Additionally, the implementation of loyalty programs and dynamic pricing strategies ensures that hotels can attract and retain customers in an ever-changing market. “These programs not only reward repeat guests but also provide valuable insights into consumer preferences and behaviors. Dynamic pricing allows us to adjust our offerings based on demand, ensuring optimal occupancy and maximizing revenue.”

Sustainability is Playing a Crucial Role: Addressing the dual challenges of food waste and sustainability requires a multifaceted approach. Hotels are analyzing purchase patterns to optimize inventory, refining food preparation methods to enhance efficiency and quality, and gaining insights into consumer behavior to tailor their offerings. “Strategic menu planning plays a crucial role. With chefs crafting dishes that utilize seasonal and locally sourced ingredients, we reduce the carbon footprint associated with transportation.”

Optimising Inventory: “Addressing the dual challenges of food waste and sustainability requires a multifaceted approach,” says Soumitra. “Hotels are analyzing purchase patterns to optimize inventory, refining food preparation methods to enhance efficiency and quality, and gaining insights into consumer behavior to tailor their offerings. This comprehensive strategy not only enhances operational efficiency but also ensures that guests enjoy a high-quality, sustainable dining experience.”

The restaurant industry has undergone significant changes in the past ten years, mainly because of new technology and shifting guest preferences. Customers now want their food quickly, with options for delivery, takeout, or dining in. They also expect their meals to accommodate their dietary needs while still tasting great.

Technology plays a great role

These changes have come about alongside the rise of technology, forcing restaurants to adapt in order to keep up. While many restaurants have integrated technology into their operations, there is still room for growth.

To meet the evolving needs of customers and improve efficiency, restaurant owners should invest in new technology to stay current with industry trends. By doing so, they can focus on what they do best: creating delicious dishes and providing memorable dining experiences.

“Being a chef, we have to learn a lot of things like ever-revolving technology. As we see more and more restaurants opening up in Sector 35, Chandigarh, the area is developing as well. The offering has to be different, the concept has to be different and we have to be constantly evolved, because what you do 6 months down the line, somebody is copying the same. So, technology is a vital part. AI has been popular since past 6 months but there were brands that have adopted it long back where they replaced servers with robots and so on,” shared Chef Kunal Kapur, Restaurateur and Chef who is on expansion spree with his restaurant chain Pincode, that’s opening in Mohali this October. “We have a store in Dubai, next we are planning in Abu Dhabi, and in Goa. So, it’s a multi-chain of restaurants,” he added.

Going back to the Roots

Talking about how her entrepreneur journey started, Kiran Dhillon, Co-Owner, Rang Punjab said, “We have a restaurant called Rang Punjab in Amritsar near Golden Temple in a Heritage building. It is a beautiful building built in 1860's by the Britishers. When we were traveling to Amritsar, we realised there were no proper place to sit or eat. Although, ‘Amritsar’ being one of the hub of food, there are marvelous food being available on those streets and dhabas. What we realized was that by the time you finish visiting Golden temple which takes around 4 hour is tiring. If we have to relax and have food, there was nothing. And it has to be hygienic and clean. So, North Indian food is broadly considered as Punjabi Food, but it's beyond that. So, we conceptualized the restaurant, keeping the same in mind.”

With personalization in mind she is serving the food that has resemblance to a farmer’s restaurant.

It’s All about Passion

“Restauranting is a business which you either believe in or do out of passion. It's a dynamic business. I am from a farmer background. We have been in market for 18 years. The passion is required to survive in the market. Currently, we are operating 18 stores in India. We are going to add 7 more stores in next 1.5 years. We have our international expansion in Dubai by end of this year. If a company has to survive for more than 20 years, it's about passion, people, accepting more challenges and technology. To keep the brand alive, we need all these factors,” pointed Inderjeet Singh Banga, Promoter, Pirates of Grill.

Driven by Convenience

Sharing his insights on his journey, Amandeep Singh, Director, Giani’s said, “Firstly, Every Customers have their own preferences and they want convenience. We had started the business in 1956, with just one store in Chandni Chowk, Old Delhi and currently we have 300 plus stores. Few years back, we opened another brand in the name of 'The Waffle Company.' So, for that we have 100 plus stores now. We had also launched another brand for frozen yoghurt and churros in the name of 'Go Fro' and we are currently expanding the same. In all these years, we have focused on being customer-centric and listening to their feedback.”
 

Building a coffee business is much like brewing a great cup of coffee — it requires precision, passion, and a touch of creativity. The right approach can turn a budding coffee venture into a thriving enterprise, something I’ve experienced firsthand after starting Kaapi Solutions in 2017. In this article we’ll be touching upon a few key strategies that can help coffee entrepreneurs turn their dreams into reality in this competitive market:

Understand Your Market and Audience

India's Coffee Market was valued at USD 478 Million in 2022 and is expected to reach USD 1,227.47 Million by 2032 at a CAGR of 9.87% during the forecast period 2024-2033. The coffee space is getting saturated by the day. So, understanding who you're serving becomes more important than ever. In India, we can see consumers increasingly gravitating towards specialty coffee experiences. A growing appreciation for high-quality beans, diverse brewing techniques, and unique coffee flavors drives this shift. If you’re just starting, you want to do thorough market research to identify trends, preferences, and gaps in the market. Understanding this allows you to figure out your USP and tailor your offerings to meet audience expectations.

Invest in Quality Equipment

The quality of your equipment directly impacts the quality of your brew. In a Polish study conducted on 1500 coffee drinkers, it was found that over 70% of them said how the coffee was brewed was important for them. High-quality coffee requires high-quality equipment. Investing in premium equipment not only enhances the quality of your brews but also ensures consistency, which is crucial for building a loyal customer base. Reliable machines also reduce downtime and maintenance costs, contributing to smoother operations and higher profitability.

Focus on Training and Expertise

Even the best equipment can’t compensate for a lack of skill. A study conducted in Java, Indonesia, shows that a barista’s behavior has a direct impact on the atmosphere of the coffee shop, and that the role of the barista is the most prominent human resource in the operation of a coffee shop. Therefore, comprehensive training for baristas and staff is essential. Investing in your team’s education ensures they can deliver exceptional coffee experiences, fostering customer satisfaction and repeat business.

Create a Unique Brand Identity

Your brand identity is what sets you apart. And with the market getting saturated by the day, you need to define what makes your coffee business unique. Whether it’s your beans, your brewing methods, or the ambiance of your café — your brand should tell a story that resonates with your customers. In a competitive market, a strong brand identity is the single biggest factor impacting the brand’s perceived value.

Location, Location, Location

Choosing the right location is critical for a coffee business. Your café should be easily accessible to your target audience, whether it’s in a bustling urban center or a cozy neighborhood. Consider foot traffic, visibility, and the competitive landscape of your chosen area. A strategic location can significantly influence your business’s success by attracting a steady stream of customers.

Embrace Innovation and Trends

Staying ahead in the coffee business means continually embracing innovation and staying on top of industry trends. From cold brews and nitro coffee to sustainable practices and plant-based options, being open to new ideas can attract a broader customer base and also keep your regular ones entertained. The global Cold Brew Coffee market is expected to expand at a CAGR of 22.72%, reaching USD 2808.11 million by 2028.This is the reason that you see big cafes change their menu with the seasons.

Offer Exceptional Customer Service

Great coffee is just one part of the equation; exceptional customer service is equally important. Train your staff to provide a welcoming and knowledgeable service. Personalized recommendations, friendly interactions, and efficient service can create memorable experiences that encourage customers to return. Happy customers are also more likely to spread the word about your café, driving organic growth.

Build a Strong Online Presence

In today’s digital age, an online presence is crucial. Utilize social media platforms to engage with your audience, share your story, and your growth, and promote your offerings. The more creative you are, the more you can drive business from online to offline.

Collaborate and Network

Building connections within the coffee industry can provide invaluable growth opportunities. Attend industry events, join coffee associations, and collaborate with other businesses. Networking can lead to partnerships, increased visibility, and access to industry insights.

Monitor and Adapt

And finally, continuously monitor your business’s performance and be open to adapting. Track feedback, sales, trends, and become proactive in making necessary adjustments. Flexibility and responsiveness are key to staying relevant and competitive in the ever-changing coffee market. This is by no means an exhaustive list, but it gives you a fair idea of what to expect and what to watch out for if you’re planning to start your own coffee business.

In the hospitality industry, there is a notable deficiency in the focus on the profitability of Food and Beverage (F&B) operations within hotels. Often, F&B outlets are not treated as standalone profit centres but rather as components that share overhead costs with the hotel. As a result, many of these outlets struggle to demonstrate profitability on their own merit. Despite hotel brands promoting the incorporation of multiple dining options within their properties, there is scant emphasis on ensuring that these outlets are both profitable and offer unique dining experiences. Typically, these F&B outlets are managed as cost centres, which can negatively impact the overall profitability of hotels. A common industry benchmark is that F&B revenue should ideally account for around 25 percent to 35 percent of total hotel revenue.

To combat these challenges, several solutions have been proposed and successfully implemented in various global markets. One effective strategy is the implementation of centralised kitchens or clustered operations for outlets within the same property or across regional properties. This approach significantly boosts operational efficiency. Another viable option is outsourcing, which not only enhances dining experiences but also helps in cost reduction.

Furthermore, it is crucial for restaurant managers and general managers to operate these outlets as independent profit and loss (P&L) entities, separate from the hotel’s finances. Establishing a distinct brand and market identity for these outlets can substantially aid in driving their profitability.

The effectiveness of these strategies is evident as they have been embraced by successful markets worldwide. The implementation of these strategies requires proactive involvement from property owners and their brand partners. Additionally, at the inception of hotel design—overseen by architects and the technical services team—careful consideration should be given to the necessity and viability of multiple restaurants.

Currently, the base fee and incentive fee in many hotels are calculated on the total revenue and Gross Operating Profit (GOP) respectively, leading to a scenario where room revenues subsidise the operating losses of F&B outlets. This raises a significant question: Should the finances of hotel rooms and F&B operations be separated to ensure better accountability and profitability? This could be the crucial change needed to enhance the financial health of F&B services in hotels, ensuring they are not just supplementary services but profitable entities in their own right.

“We firmly believe that the profitability of F&B operations within hotels stems from a comprehensive approach that emphasises quality at every stage. This commitment involves dedicating ourselves to providing exceptional service, sourcing the finest ingredients, and creating unforgettable dining experiences. By ensuring that our guests receive unparalleled value, we foster both guest satisfaction and loyalty, which are crucial for our success. However, quality extends beyond the food we serve. It includes the ambiance we create, the training and development of our staff, and our dedication to sustainability and local sourcing. These factors not only enrich the guest experience but also boost our operational efficiency and profitability. By focusing on these key elements, we transform each meal into a memorable event, embodying our steadfast standard of hospitality, Director of La Mer Events and Hospitality commented in an interaction.

In many cases, F&B cost controls are either limited or entirely absent in the hospitality industry. Effective controls should encompass every aspect of the operational chain, including procurement, receiving, storage, inventory, and production. Unfortunately, numerous hotels lack these necessary cost controls, while others may allocate food and beverage costs across various outlets and catering services based on revenues. This method often obscures less profitable operations.

It is advisable for hotel owners or general managers to query their chefs and F&B managers about the presence of cost controls across all the aforementioned areas. The absence of a clear understanding of these controls by the F&B manager and chef usually signifies that these controls do not exist, which likely has a detrimental impact on departmental profitability.

“It is recommended that owners or general managers ask their F&B personnel to explain the discrepancies between the actual cost of sales and the theoretical cost of sales for each outlet during each period. The theoretical cost is determined by multiplying itemised sales by the cost of recipes for each menu item. Ideally, the actual cost of sales, which is calculated from the beginning inventory plus purchases minus the ending inventory, should only be one to one-and-a-half points higher than the theoretical cost, accounting for normal waste. A significant deviation from this range indicates a potential control issue within the F&B department that needs further investigation,” Chef Mohit, who has served as executive chef in brands like Hilton and Marriott commented.

Adding to Mohit, Gaurav Shetty, the director at Peninsula Group of Hospitality feels that to sustain and thrive in the competitive hospitality industry, focusing on the profitability of F&B operations is paramount. “It's not just about offering exceptional F&B; it's about optimising every aspect of the operation, from sourcing to service, to ensure each plate contributes positively to the bottom line,” he added.

Labour cost controls are another area often overlooked in hotel F&B departments. If the operation has a schedule that is the same every week, labour costs are not being controlled. Scheduling should consider occupancy projections, hotel activity (if there is a group in the hotel on their own for lunch), events in the area, seasonality, etc.  

“From my experience, the profitability of most hotel F&B departments can be significantly enhanced without increasing menu prices. The key departmental costs to manage are sales and labour. Controlling these costs is equally critical as delivering high-quality food, beverages, and service. By boosting the profitability of the F&B department, you also raise the overall value of the hotel,” Chef Mohit concluded.

The tea and coffee markets are incredibly dynamic, and although there are some unique nuances for each sector, they do share some important trends, which in turn presents opportunities to learn from each other. According to reports, India is the second-largest producer of tea after China, and the largest consumer of said beverage, using nearly 30 percent of the world’s tea output. Despite this, the country exported the most tea globally after China and Sri Lanka. The Indian tea market size reached US$ 11.1 Billion in 2023. Looking forward, the market is expected to reach US$ 14.7 Billion by 2032. Similarly, the Coffee market in India was estimated at USD 9,240 Million in 2023. During the forecast period between 2024 and 2030, the India Coffee Market size is projected to grow at a CAGR of 11.99% reaching a value of USD 20,410 Million by 2030. A prominent driver of market growth is the shifting taste preferences of the people in this region. As consumer demographics and lifestyles undergo transformations, there's a noticeable shift in the preferences for coffee products. Increasingly, consumers are gravitating towards specialty and premium coffee offerings, driven by a desire for unique flavors, higher quality, and experiential consumption.

Sustainable Practices are Back: One of the main trends we see across the board for coffee and tea is a major focus on sustainable practices, from sourcing to production, to meet the growing consumer demand for environmentally friendly products.

Innovation is the Key: Innovation is driving new brewing methods and ingredients to cater to evolving consumer preferences for unique and diverse beverages. We see new ingredients and flavours for coffee as well as increased popularity of herbal and functional teas that target specific health benefits.

Premiumisation is at Peak: Premiumisation is also fuelling growth in both the tea and coffee industries by emphasising superior quality, rarity, price, or exclusivity. People are now looking at customises, premium products and options and tea, coffee industry is not behind.

Convenience is Driving the Biz: There is an increasing demand for ready-to-drink products, reflecting consumer preferences for convenient and on-the-go beverage options. In fact, the ready-to-drink tea and coffee market will reach USD 172.28 billion by 2030.

Finally, growth in disposable income plays a crucial role in shaping consumer spending patterns, including the consumption of coffee and tea. We see individuals spending more on premium or specialty coffee and tea products, driving market growth. With inflation coming down in markets such as the US, UK and the EU, consumer spending will likely increase.

Currently, India does not have its own edition of the celebrated French fine-dining Michelin Guide, which is a notable absence in the country’s gastronomic landscape. Michelin stars, an emblem of culinary excellence, are awarded to restaurants, not to individual chefs. This distinction is crucial as it places the emphasis on the overall dining experience provided by the establishment rather than solely on the person behind the menu. Consequently, without a Michelin Guide dedicated to Indian eateries, it is unlikely that any restaurant in India will secure a Michelin Star in the near future.

Gaining a Michelin star is a dream many restaurant owners and chefs across the globe cherish. This accolade not only signifies the peak of dining excellence but also serves as a testament to the skills and creativity of the teams that drive these esteemed kitchens. However, the lack of a Michelin Guide in India casts a shadow over the possibility of Indian restaurants achieving this prestigious recognition.

The Michelin Guide, which is an integral part of a global restaurant rating system managed by the French tire manufacturer Michelin, evaluates dining establishments based on the quality and consistency of their culinary offerings. Since its inception in 1900, the guide has evolved from a manual offering practical information for motorists—including maps and details on restaurants and fuel stations along their routes—to a comprehensive evaluator of gastronomic quality.

In its current form, the Michelin Guide provides concise and insightful reviews of restaurants, employs unique symbols to denote various levels of service and quality, and ranks establishments with up to three Michelin stars. These stars are highly coveted and are awarded to restaurants demonstrating culinary prowess and consistency that meet stringent standards set by Michelin's anonymous inspectors. The guide currently spans more than 36 culinary hotspots around the world, including regions in North America, South America, Europe, and the Asia Pacific.

Despite its rich and diverse culinary heritage that draws from centuries-old traditions and regional flavours, India is yet to be included in the Michelin Guide's expansive coverage. This exclusion means that India’s myriad gastronomic delights and the chefs who craft them remain unrecognised by one of the world's most prestigious culinary accolades, underscoring a significant gap in the global culinary recognition of Indian cuisine.

Obtaining a Michelin star requires the establishment of a refined dining venue, where the focus is not only on the quality of the food but also on the overall dining experience. Most restaurants that earn a Michelin star tend to be upscale, often becoming more expensive due to their use of premium ingredients and commitment to delivering exceptional hospitality. While top chefs in India regard Michelin stars as the ultimate accolade in the culinary world, it's important to remember that these stars are awarded to restaurants, not individual chefs.

The process for awarding Michelin stars involves multiple visits by anonymous Michelin inspectors who assess each restaurant meticulously. The anonymity of these inspectors is crucial as it ensures that the evaluations are unbiased and genuine, with restaurant staff unaware of the inspector's presence and identity.

The Michelin Guide's selection criteria are rigorous and multifaceted, encompassing:

The quality of the ingredients used,

The mastery of flavor and cooking techniques,

The ability to reflect the chef’s personality within the dining experience,

The harmonious balance and blending of flavors,

Consistency of the dining experience across visits by different inspectors.

Restaurants are evaluated annually, and their star ratings and listings in the guide are updated to reflect current standards. Establishments that do not maintain the requisite level of quality risk being removed from the guide.

Despite the absence of a Michelin Guide in India, Indian chefs globally continue to garner recognition and win Michelin stars, showcasing the appeal and excellence of Indian cuisine on the world stage. Notably, in 2023, several Indian chefs at restaurants in the United States achieved this prestigious honor. Chef Chetan Shetty led Rania in Washington DC, Chef Vijaya Kumar headed Semma in New York City, and Chef Sujan Sarkar ran Indienne in Chicago, each earning a Michelin star for their outstanding culinary contributions. These accolades underline the global stature and adaptability of Indian culinary arts, reflecting the skills of Indian chefs who masterfully present traditional flavors in a manner that resonates with an international audience.

Michelin does not cover the entire globe with its guides. Initially, up until 2006, its coverage was predominantly in Europe, after which it expanded to include New York. Over the years, Michelin has extended its reach to include several key global cities and regions such as Japan, major U.S. cities like New York, Chicago, San Francisco, and Washington DC, as well as Rio de Janeiro/São Paulo, Hong Kong/Macau, Singapore, Seoul, Shanghai, and Bangkok. “As a commercial entity, Michelin's decisions on where to introduce guides are driven by its own commercial interests as part of a marketing strategy for its tire business. This approach has led to the discontinuation of guides that do not meet sales expectations, such as those for Las Vegas and Los Angeles in 2008/2009. Additionally, Michelin has started accepting sponsorship from tourist boards to launch guides in places like Bangkok, Seoul, and Singapore. While there is potential for a future guide in India, possibly sponsored by the Indian Tourist Board, no concrete plans are in place,” as commented by a London based Restaurant Critic, Andy Hayler. 

In London, several Indian restaurants, including Jamavar, Tamarind, Benares, Quilon, Trishna, and Gymkhana, have earned Michelin stars, showcasing the global appreciation for Indian cuisine. This recognition extends to other places like Song of India in Singapore and Campton Place in San Francisco.

Jake Kosseff, a Sommelier & Restaurateur from Seattle, notes that Michelin has not yet decided to publish a "green" guide for India or any of its cities. The process of rating restaurants for Michelin is intricate and resource-intensive, hence the limited geographical coverage of the green guides.

A chef from Mumbai, preferring to remain anonymous, pointed out that Michelin (company that hosts Michelin Star) has a minor market share in India's tire industry and has not been among the top ten since 2011. The market dynamics suggest that it's unlikely the Michelin Guide will focus on India soon. The chef further mentioned that the format of authentic Indian cuisine, from its culinary traditions to portion sizes, does not align well with Michelin’s criteria. Except for a few high-end hotel restaurants, standalone Indian eateries have not adopted the global elements that Michelin typically looks for in its star-rated establishments, resulting in only eight Michelin-starred Indian restaurants worldwide.

Michelin's selective geographic expansion is influenced by its commercial interests and market dynamics, which currently exclude India from its prestigious dining guides. However, Indian cuisine continues to gain international acclaim, as evidenced by the Michelin stars awarded to Indian restaurants globally, showcasing its culinary prowess beyond its borders.

In a striking development, major fast-food chains in India are bracing for a tough quarterly earnings announcement. A recent Reuters analysis highlights how economic pressures are prompting consumers to tighten their belts, resulting in a significant revenue decline for these culinary giants. This shift comes after a year of aggressive expansion in 2023, which saw the opening of numerous new locations nationwide.

Notable companies like Jubilant Foodworks, Devyani International, and Sapphire Foods India, operators of renowned franchises such as Pizza Hut and KFC, have faced considerable challenges throughout the year. Their struggles have been exacerbated by escalating competition from global and local burger chains, including McDonald's and indigenous establishments. In an effort to draw in customers, Burger King introduced a budget-friendly 99-rupee combo meal featuring a burger, a beverage, and fries. Despite these initiatives, sales have not improved, as inflation continues to curb consumer spending.

The economic landscape remains daunting, with India's inflation rate consistently surpassing the government's target, straining household budgets and altering eating habits. Kranthi Bathini, an equity strategist at WealthMills Securities, observed a notable change in consumer behaviour, pointing out that visits to fast-food outlets have decreased from three or four times a month to just once or twice.

Financial predictions are equally bleak. Analysts from the London Stock Exchange Group anticipate a sharp decline in net income for the March quarter, with projections showing a reduction of 54 percent to 97 percent for key companies like Devyani and Sapphire, who manage Pizza Hut, and Westlife Foodworld, which oversees McDonald's franchises. Furthermore, a significant drop in same-store sales is expected, particularly for Pizza Hut, with a projected decrease of over 10 percent as reported by Reuters.

Despite these hurdles, franchisees are not halting their expansion. New locations have emerged in places ranging from the hill town of Kalimpong in West Bengal to the rural village of Shoolagiri in Tamil Nadu. This continued growth, fueled by the hope of capturing long-term market share, has yet to yield immediate financial gains and is compounded by intense competition from both international entities and flourishing local ventures.

Local restaurants like La Pino'z Pizza are intensifying the competitive landscape, and regional chains such as Jumboking and Biggies Burger are making significant inroads, fostering a highly competitive market scenario.

Adding to the competitive landscape, Pizza Wings, a fast-growing startup based in Rohtak, Haryana, has recently secured a significant investment, drawing $4 million from Zerodha co-founder Nikhil Kamath's venture capital fund, Gruhas. This financial boost is further supported by contributions from prominent angel investors, including Udaan co-founder Sujeet Kumar. Pizza Wings, which currently operates nearly 50 stores across Haryana, Delhi-NCR, and Goa, is positioning itself as a significant player in the region's fast-food market.

Westlife is poised to initiate the earnings season on May 8 in India, with other major players slated to follow. Despite the current downturn, there is a sense of optimism among analysts and industry insiders for a potential recovery in the second half of the fiscal year, spurred by anticipated reductions in living costs and enhanced consumer purchasing power.

Additionally, local brands are leveraging the current market dynamics. These entities are not only expanding through new franchise agreements but are also attracting substantial investments to support their growth. This dual approach of aggressive market expansion and financial fortification is positioning local operators as strong competitors in the quest for market dominance.

“As the fast-food sector in India navigates these turbulent waters, the upcoming months will be crucial in determining whether strategic expansions and investments can withstand the ongoing economic challenges and shifting consumer preferences,” Mihir Mehta, Restaurant investment advisor commented.

This turbulent period is underscored by a wider socio-economic impact that extends beyond the fast-food industry. The economic pressures affecting consumers are symptomatic of broader challenges within the Indian economy, including job insecurity and rising costs of living, which influence discretionary spending. As families prioritise essentials, dining out and convenience food become luxuries that many are increasingly unable to afford.

The ripple effects are evident in the operational strategies of fast-food chains. These companies are not only revising their menu prices but are also innovating with cheaper, localised menu options to attract price-sensitive consumers. For instance, some chains have introduced smaller, more affordable portions and combo meals specifically tailored to local tastes and budgets.

Moreover, digital engagement and online delivery platforms are playing a pivotal role in this new market dynamic. “With consumer footfall in physical stores waning, brands are intensively focusing on enhancing their digital presence and delivery services to capture the segment of consumers who prefer to order from the comfort of their homes. This shift towards digital has also spurred partnerships with delivery services like Swiggy and Zomato, which offer promotions and discounts that further incentivize consumers amidst financial constraints,” said Shamsher Singh, principal hospitality consultancy at Singh & Co.

As these strategies unfold, the fast-food industry in India is not only battling immediate financial pressures but also adapting to a rapidly changing consumer landscape. The coming quarters will not only test the resilience of these companies but also their ability to innovate and remain relevant in an increasingly competitive and economically sensitive market.

The Indian restaurant market has experienced remarkable growth in recent years, with the National Restaurant Association of India (NRAI) reporting a market size of Rs. 5.99 lakh crore, growing at a compounded annual rate of 9%. However, this expansion has been accompanied by a rapidly changing tax landscape, putting significant pressure on restaurateurs to stay on top of their financial obligations. Here is a sneak peek into some of these shifts.

Direct Taxes: Navigating the Income Tax Act, 1961

Restaurant businesses in India fall under the "Profits and Gains of Business or Profession" (PGBP) chapter of the Income Tax Act, 1961. This means that in addition to obtaining a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), restaurant owners must understand the various provisions and deductions applicable to their establishments.
One key consideration is the applicability of presumptive taxation under Section 44AD of the Act. Eligible businesses with a turnover of up to INR 2 crore can opt to pay a flat tax rate of 8% (or 6% for digital transactions) of their total turnover, potentially simplifying the tax filing process. This provision allows for a more straightforward method of calculating taxable income as opposed to maintaining detailed financial records.

Furthermore, restaurateurs must know the deductions available under Sections 30 to 37 of the Income Tax Act, 1961. These deductions can include rent, repairs, depreciation, additional depreciation (if applicable), and other expenses directly related to business operations. Careful documentation and proper categorization of these expenses can help optimise the restaurant's tax liability.

Conversely, the Act also specifies certain disallowances, such as wealth tax, fines, and penalties, which cannot be deducted from the restaurant's taxable income. Understanding these disallowances is crucial to ensure accurate reporting and avoid potential disputes with tax authorities.

Indirect Taxes: Navigating the Goods and Services Tax (GST)

The introduction of the Goods and Services Tax (GST) in 2017 has significantly transformed the indirect tax landscape for restaurants in India. This comprehensive tax regime has replaced the previously fragmented systems of value-added tax (VAT) and service tax, providing a more streamlined approach to compliance. 

Under the GST framework, restaurants are categorised into three broad groups based on factors such as the presence of air conditioning and the availability of a liquor license. These categories determine the applicable GST rates, which range from 5% for restaurants without air conditioning or a liquor licence to 18% for five-star hotels and luxury establishments.

One notable aspect of GST for restaurants is the composition scheme, which allows businesses with a turnover of up to INR 1.5 crore (INR 75 lakhs for special category states) to pay tax at a concessional rate of 5% without the ability to claim input tax credits. This option can be particularly beneficial for smaller establishments, as it simplifies the compliance process and reduces the administrative burden.

Even if the restaurants do not fall under the composition scheme, they have an option to pay only 5% GST without claiming any input tax credits. However, in this scenario, the GST returns need to be filed on a monthly / quarterly basis as opted by the business.
In case they want to avail input tax credits, then they need to pay GST @ 18% on the sales. Again, the GST returns need to be filed on a monthly / quarterly basis as opted by the business.

It's important to note that the GST regime has also impacted the taxation of alcoholic beverages. While GST applies to food and non-alcoholic beverages, alcoholic beverages are subject to state-level value-added tax (VAT), which must be charged separately by restaurants. 

Compliance Requirements: Staying on Top of Tax Filings 

Ensuring timely and accurate tax filings is crucial for restaurant owners in 2024. For income tax, you'll need to file your returns under the appropriate form (ITR-3, ITR-4 SUGAM, or ITR-6) based on your business structure and income. This may include reporting your restaurant's income along with any other personal income sources, such as salary, rental income, or interest earnings.

On the GST front, regular filing of GSTR-1 and GSTR-3B returns is mandatory, with the latter due by the 20th of every month. Restaurants opting for the composition scheme will need to file quarterly returns in Form GSTR-4. Failure to comply with these filing requirements can result in penalties and interest charges, which can significantly impact the restaurant's bottom line.

Additionally, restaurants with a turnover exceeding INR 1 crore (for businesses) are required to undergo a tax audit, wherein a chartered accountant is appointed to review the business's accounts and ensure compliance with tax regulations. 

Staying Ahead of the Curve: Navigating Tax Evolvement 

Tax laws and regulations are subject to frequent changes, and it is crucial to remain vigilant to ensure your restaurant remains compliant and takes advantage of available tax benefits. By proactively managing your tax obligations, you can optimise your financial performance, avoid potential penalties, and contribute positively to the growth of the dynamic restaurant industry in India.

Moreover, the increasing competition in the industry, driven by the rise of third-party platforms has led to a gradual decline in the monthly income for restaurants due to the embedded concept of discounts and freebies. In this challenging environment, effective tax management can play a vital role in maintaining the financial health and sustainability of your restaurant business.

Bottomline 

Navigating the intricate tax landscape is a crucial aspect of running a successful restaurant business in India in 2024. By understanding the direct and indirect tax obligations, leveraging available deductions and incentives, and ensuring timely compliance, restaurant owners can position their establishments for long-term success.

Remember, tax compliance is not just a legal requirement but an opportunity to optimise your financial performance and contribute to the growth of the vibrant restaurant industry in India. Stay informed, work with trusted advisors, and embrace the evolving tax landscape as a means to strengthen the foundation of your restaurant business.

In the last 2-3 years, we have seen there’s huge change in the customer lifestyle, preferences. In fact, if we look in general, Gen Z in our office talk about not gaining weight anymore, they talk about body fat percentage and all the other KPIs, which I failed to understand, right? So there's a bigger lifestyle change and then there is a piece on the nightlife that’s turning big. So, we will talk and discuss here on how some of the top nightlife restaurant owners are balancing the two. 

Eat at Home If You want to Eat Healthy

The covid did definitely shake everyone that has brought a certain kind of a lifestyle change among the customers. But with these people became more aware, more conscious with the habits. “Let’s not fool ourselves. There is no healthy nightlife place. I think the first word that comes to my mind is alcohol and dance. Right? I think it's easier to achieve in a smaller concept,” shared Pankaj Gupta of Flavour Pot Hospitality who believed that it is easier for smaller concept to cater to the customer need and customize as per their palette. “I would just have a roasted chicken with salad. Now, that's very easy to do that. But, you know, talk about the same phenomena in a bigger concept. No, a nightlife place serving healthy food. It's an oxymoron for me,” he pointed.

Customization is a Choice

“If you want to stay healthy, eat at home,” points Ranbir Nagpal of Yazu by adding that if we look at the numbers the highest selling items are the ones which are non-healthy. But as a restaurant owner we try to create that balance. Restaurants can play with ingredients, method of cooking, something which will help you create value for your customer, for your food, for the quality of food.

Know your Market Well

There’s no denying that it is very important to know the market, clientele and neighborhood you are operating your restaurant, brand. “Consumption patterns in each city is different, audiences are different and what they like and dislike are fairly different. For us, there hasn't been a one size fits all concept. Each of our concept has been exclusively curated for that city. Specifically, like the backwaters in Kochi is called the backwaters. I can't pick that brand up and open it anywhere else, right? Because it is curated for that city knowing that banqueting is massive in Kochi. So each city was researched, consumption patterns were understood, footfalls were understood, and then each of these brands took birth,” said Twinkle Keswani, Founder, Pisco Hospitality by adding that they're going to these cities, understanding what is working best there and coming up with brands as per that. 

Adding to the same, Karan Nohria of Silly pointed, “we took six months to prepare to understand what the market is like. We talk about the location perspective in terms of how big is Delhi and Bombay because you've got locations out there, you know, you've got properties that are available out there, people are up for it. Bombay is better in terms of cocktails that we talk about, but Delhi's got great cocktail bars. So, we have to completely understand what the market is really demanding for. You have to design it that way. For us, it was getting the same brand in that city, but we made sure the design, the pattern, the food, the cocktail is designed as per their palette. And what the customer really wants over there.”
 

The India Foodservice Market size is estimated at 77.54 billion USD in 2024, and is expected to reach 125.06 billion USD by 2029, growing at a CAGR of 10.03%, according to reports.

And, with more and more people wanting to try out new things, experiment around food, we have seen lots of exciting brand entering the food and beverages landscape. Not only this, this is pushing the growth of the food and restaurant business in India that is estimated to grow three times bigger in next few years, inviting more and more investors to take a bigger pie of the business.

Restaurant India recently hosted its Mumbai Edition of the Restaurant India Investment & Development Summit where top restaurant, food brands and investors came together to discuss what’s happening at the restaurant funding sector. 

Here are 5 Key takeaways for any restaurant owner planning to raise funds: 

? Irrespective of the size, type and format of a restaurant, SOPs are non-negotiable. They not only bring in more efficiency and optimise resources but also manage costs effectively. 

? Standardisation in the industry is a tough nut to crack but once SOPs are set, leave room for a little flexibility that takes into account location, culture and people and adapt it accordingly. 

? Urbanisation across India will lead to the next boom in F&B. In the next 10 to 15 years, the face of rural India is also going to change as the government of India aims to build 100 smart cities and 6500 urban towns in the next 10-15 years giving rise to an upswing in lifestyles and spending power. 

? Capital can be raised for a concept in several different ways. Earning and reinvesting profits is one way and getting investors in place to ease the initial struggle could be another. However, I am partial to the first route as it gives you more flexibility in choosing an investor and increases the possibility of running the brand on your own steam. 

? The next big markets for F&B exploration will be Sri Lanka and Bangladesh which we need to keep an eye out for.

Embarking on the journey of opening a restaurant is an exciting jouney, but it requires meticulous planning and strategic decision-making to thrive in a competitive landscape. Before you set foot in the kitchen, it's crucial to map out a comprehensive business plan that encompasses various aspects of your venture. Here are five essential components to consider before launching your restaurant, ensuring a solid foundation for success.

1. Choosing the Right Model of Expansion

The first step in your restaurant business plan is to determine the model of expansion that aligns with your vision and resources. Will you operate solely offline, leverage cloud kitchens for delivery services, or adopt a hybrid approach combining both? Each model has its own set of advantages and challenges, so it's essential to evaluate which one best suits your concept and target audience.

2. Deciding on the Investment Mode

Financing plays a pivotal role in realizing your restaurant dream. Whether you opt for internal funding, seek loans, attract equity investors, or consider franchising, it's crucial to weigh the pros and cons of each option. Internal funding offers autonomy but may limit resources, while franchising provides capital infusion and brand exposure but entails relinquishing some control. Assess your financial capabilities and growth objectives to determine the most suitable investment mode for your restaurant venture.

3. Strategic Partnerships and Approach

Once you've outlined your expansion model and investment mode, it's time to approach bankers or potential franchising partners. Present a compelling business proposal highlighting your concept, market research, financial projections, and growth strategy. Whether you're seeking funding or exploring franchising opportunities, articulate how your restaurant concept stands out in a crowded market and how investors or partners stand to benefit from collaborating with you.

4. Telescope: Prepare Your Five-Year Plan and Solve for Scale

A successful restaurant venture requires a long-term vision and a roadmap for growth. Develop a detailed five-year plan outlining your expansion goals, revenue targets, operational milestones, and strategies for scaling your business. Anticipate challenges and devise contingency plans to navigate market fluctuations and evolving consumer preferences. By forecasting your trajectory and addressing scalability early on, you position your restaurant for sustainable growth and profitability.

5. Microscope: Don't Lose Focus on the Essentials

Amidst the excitement of expansion and growth, it's imperative not to lose sight of the core elements that define your restaurant's success. Quality, taste, and the overall dining experience are non-negotiable factors that drive customer satisfaction and loyalty. Uphold stringent standards in food preparation, service delivery, and ambiance to consistently exceed customer expectations. Remember, maintaining excellence in these fundamental aspects is key to sustaining your restaurant's reputation and staying ahead of the competition.

In conclusion, crafting a robust business plan is essential for laying the groundwork for a successful restaurant venture. By carefully considering your expansion model, investment mode, strategic partnerships, and long-term growth strategy, you can set your restaurant on the path to prosperity. However, while planning for expansion, never lose sight of the core values that define your brand – taste, quality, and exceptional customer experience. With a well-rounded approach that balances vision with attention to detail, you can turn your restaurant dream into a thriving reality.

When a brand decides to embark on an Initial Public Offering (IPO), it's stepping into a transformative phase that promises not just financial upliftment but also a broader impact on its market presence and operational dynamics. An IPO is essentially a financial strategy that allows companies to raise significant capital by offering shares to the public for the first time. This move is not just about enhancing liquidity and capital reserves; it's a powerful signal to the market, enhancing the brand's visibility, credibility, and valuation. Moreover, going public opens up new avenues for growth through acquisitions, provides a platform for rewarding employees and early investors, and garners invaluable market feedback. The decision to go public, therefore, is a pivotal moment for brands, signifying a leap into a future where they are scrutinized by a wider audience but also endowed with the resources and esteem to scale new heights.

In India, a burgeoning middle class with increasing disposable income and a keen interest in dining experiences has propelled many restaurant chains toward Initial Public Offerings (IPOs). Over the last few decades, numerous restaurant chains have ventured into the stock market through initial public offerings, with varying degrees of success. As March draws to a close and we step into a new financial year, it's an opportune time to keep an eye on the food and beverage (F&B) brands preparing to launch their IPOs.

Upcoming IPOs: F&B Chains Going Public This Year

Among them, Bikanervala, known Indian brand specializing in sweets, snacks, and restaurants, with revenues surpassing INR 3,000 crore, is charting a course towards an IPO for its food segment within the next three years. In the interim, the company, owned by the discreet Aggarwal family and also known for its Bikano brand, is considering partnerships with private equity investors. With ambitions to cross revenues of Rs 10,000 crore by 2030, Bikanervala Foods is investing heavily in new manufacturing facilities dedicated to Indian snacks, signaling its commitment to growth and expansion in the sector.

Swiggy, a leading competitor of Zomato, is gearing up for a monumental IPO, anticipated to be one of the most significant public offerings by an internet company in the coming year. Slated for a mid-2024 debut on the stock exchanges, Swiggy is eyeing an IPO size of $1 billion (approximately INR 8,300 Cr). Industry insiders suggest that this move could see SoftBank, the world’s largest tech investor, significantly scale down its 9 percent stake, valued at over $800 million. This strategic decision might also pave the way for SoftBank and other investors to divest their holdings in Swiggy, as the food delivery titan progresses towards profitability. This is in stark contrast to Zomato, whose share value has diminished by over 20 percent since its IPO launch in July 2021.

In another development, Rebel Foods, the umbrella company for brands like Faasos, Behrouz Biryani, Oven Story Pizza, and Mandarin Oak, is preparing for its own IPO. Expected to submit its draft red herring prospectus in the latter half of this year, Rebel Foods aims for a 2025 listing on Indian stock markets. This endeavor will mark a significant milestone, positioning it as the first cloud kitchen business in the country to go public. Established in 2011 and based in Mumbai, Rebel Foods leverages both its proprietary platforms and partnerships with Zomato and Swiggy for delivering food, underlining the dynamic expansion of India’s F&B delivery sector.

Impresario Handmade Restaurants, with a network spanning over 60 outlets across more than 20 cities, is focusing on expanding its ‘SOCIAL’ brand, as disclosed by its Founder and Managing Director Riyaaz Amlani. The chain, which also manages other popular brands like antiSOCIAL and Smoke House Deli, anticipates ending FY24 with revenues nearing INR 700 crore. Following this, it aims to achieve a growth rate of 20–25 percent annually. Although currently well-equipped financially to fuel its expansion ambitions, Impresario is considering an IPO in the future, depending on market conditions, and is open to exploring various financing avenues, Amlani noted in a recent interview.

How IPOs Serve Up Success for India's Restaurant Industry

In India, restaurants and food service chains opt for Initial Public Offerings (IPOs) to harness a myriad of benefits, including substantial capital infusion for expansion, operational upgrades, and debt reduction. This strategic move not only enhances their visibility and brand credibility among consumers but also offers a platform for liquidity and potential exit opportunities for existing investors. 

Typically, these entities choose to go public after achieving a stable growth trajectory, a robust business model, and a clear path to profitability, which can vary widely in timing depending on the company's scale, market conditions, and strategic goals. “The decision to launch an IPO is often aligned with favorable market conditions and a strong appetite among investors for new listings, which can provide the necessary momentum for a successful public debut. By leveraging public markets, restaurants in India can accelerate their growth, diversify their offerings, and strengthen their competitive position in a rapidly evolving food and beverage sector,” Investment banker, Miheer Mehta who runs his own investment advisory firm stated.

Investor Opportunities in India’s F&B IPO Landscape

Investing in the IPOs of restaurant and F&B chains in India offers several enticing benefits for investors and the general public. This sector benefits directly from the country's economic growth, with an expanding middle class, increased urbanization, and a shift in consumer behavior towards organized dining and convenience food, making it a fertile ground for investors. The inclusion of such stocks in an investment portfolio not only offers diversification away from traditional sectors but also aligns with a long-term growth trajectory powered by demographic and socioeconomic trends. 

Early participation in these IPOs can provide investors with a front-row seat to capitalize on the sector's expansion and the potential for significant returns as these companies scale operations, improve margins, and explore new markets. “For investors seeking not just financial returns but also alignment with consumer trends and preferences, investing in F&B IPOs allows for a stake in brands with which they have a personal connection or admiration, adding a layer of personal satisfaction to the investment decision,”  Sujeet Mehta, co-founder of Restaurant Consultancy Firm, We Serve commented. This investment avenue thus offers a unique blend of financial opportunity and personal involvement, set against the backdrop of India's dynamic economic landscape.

Restaurants IPOs that are Performing Well in India

Sapphire Foods, a leading restaurant operator across the Indian subcontinent and known for its stewardship of KFC & Pizza Hut outlets, marked its entry into the public market in November 2021. Demonstrating a robust performance, Sapphire Foods has seen a one-year return of 16 percent, with its issue price at INR 1180 and the current share price appreciating to INR 1392.

Devyani International Limited (DIL), with a notable presence in the fast-food sector, launched its IPO at a share price of INR 90, which has since ascended to INR 147. Similarly, Burger King India Limited began its public journey with shares priced at INR 60 during its IPO, now trading at an impressive INR 101, showcasing the vibrant potential and investor confidence in India's restaurant and F&B sector.

As more restaurant and F&B companies in India decide to go public, there's a lot of excitement and opportunity for investors. These IPOs (when companies sell their shares to the public for the first time) are a big deal because they show that the food industry in India is growing fast. This growth is good news for people looking to invest because it means there's a chance to make money by investing in companies that are doing well. With big names like Bikanervala, Swiggy, and Rebel Foods planning to launch their IPOs, investors have a great chance to get involved in a booming sector. This move is not just good for the companies that get a boost of money and attention but also for investors who get to be part of a success story in India's vibrant food scene.

QSRs have been one of the fastest-growing segments of the restaurant industry in India and worldwide. According to a report by Researches and Markets, the QSR market in India was projected to grow at a compound annual growth rate (CAGR) of over 18% during 2021-2025. In 2023, the QSR industry in India witnessed a robust growth of around 30-35% in terms of revenue, driven by various factors such as:

1. Increasing urbanization, disposable income, and working population, which created a higher demand for convenient, affordable, and quality food options.

2. Rapid expansion of food delivery services, which enabled QSRs to reach more customers and increase their sales volume and frequency.

3. Changing consumer preferences and dining patterns, influenced by the ongoing pandemic, health awareness, and Western culinary influences. Customers preferred contactless and hygienic meal options, online ordering, delivery, and takeout over dining in at QSR locations.

4. Effective cost management strategies, such as optimizing menu pricing, reducing wastage, exploring cost-sharing opportunities, and leveraging new technologies, such as IoT and analytics, to improve operational efficiencies and profitability.

5. Aggressive store expansion plans, especially in Tier 2 and 3 cities, where QSRs faced less competition and more untapped potential. The QSR industry was estimated to add approximately 2,300 stores between FY2023 and FY2025, with an estimated capital expenditure of around Rs 5,800 crore.

Check More : 5 Trends to Watch Out in 2023 if You Own a Restaurant
 

Trends That Emerged in the QSR Industry in 2023

QSRs have also been adapting to the changing market dynamics and customer expectations by offering more variety, customization, and innovation in their menus, services, and formats. Some of the trends that emerged or gained popularity in the QSR industry in 2023 were:

1. Cloud kitchens, which are delivery-only kitchens that operate without a physical storefront or dine-in facility. Cloud kitchens allowed QSRs to reduce their operational costs, expand their reach, and experiment with different cuisines and concepts.

2. Healthy and sustainable food options, such as salads, wraps, bowls, vegan, organic, and locally sourced ingredients, which catered to health-conscious and environmentally aware customers.

3. Indian homegrown QSR brands, which offer authentic and regional flavors, such as biryanis, chaats, dosas, and parathas, and compete with the global QSR giants.

4. Co-branding and cross-selling, which involves partnering with other brands, such as beverage, snack, or dessert brands, to offer complementary products and services, and increase the average order value and customer loyalty.

Check More : Sustainability in Restaurants a Major Trend in 2023

Conclusion

The QSR industry in India has shown remarkable resilience and growth in the face of the challenges and uncertainties posed by the pandemic and the economic slowdown. QSRs have proven to be the future of the restaurant industry, as they offer a value proposition that appeals to the masses: fast, convenient, affordable, and quality food. With the continued support of technology, innovation, and customer-centricity, QSRs are expected to maintain their momentum and dominate the food service market in the coming years.

Embarking on a journey through the vibrant intersection of gastronomy and entertainment is a personal exploration into the trends shaping the dynamic landscape of Food and Entertainment. In the world of food and entertainment, each trend becomes a chapter, and every experience is a brushstroke in the canvas of indulgence and delight. Let's dive into the captivating world where flavors meet entertainment, and every moment is a crafted masterpiece.

Virtual Culinary Experiences: In the age of digital connectivity, virtual culinary experiences are gaining momentum. From online cooking classes to virtual food tastings, businesses are leveraging technology to bring the culinary world directly into people's homes. This trend not only caters to those who prefer the comfort of their own kitchens but also opens up new possibilities for global collaboration and cultural exchange in the realm of food.

Interactive Dining Concepts: Interactive dining goes beyond traditional restaurant setups. Businesses are incorporating elements of gamification, allowing patrons to engage with their meals in a playful and interactive manner. This could include DIY dishes, table top cooking, or even incorporating technology to create an engaging and memorable dining experience.

Health and Wellness-Centric Menus: As awareness of health and wellness grows, there's a significant shift toward menus that prioritize nutritious and wholesome options. Food and Entertainment businesses are adapting by offering plant-based alternatives, incorporating superfoods, and providing transparent nutritional information. This trend reflects the evolving preferences of consumers who are seeking both enjoyment and well-being in their dining experiences.

Pop-Up Collaborations: Collaboration is key in the ever-evolving culinary and entertainment scene. Pop-up collaborations between chefs, mixologists, and entertainers are creating unique, limited-time experiences. Whether it's a fusion of different cuisines or a collaboration between a chef and a musician for a themed night, these pop-ups generate excitement, draw diverse audiences, and keep the offerings fresh and dynamic.

Nostalgia-Inspired Entertainment: Nostalgia has a powerful impact on people's preferences, and businesses are tapping into this sentiment in the realm of entertainment. From retro-themed arcades to events evoking the ambiance of past decades, there's a growing trend of infusing entertainment spaces with a nostalgic touch. This not only resonates with various age groups but also provides a unique and memorable experience for patrons.

These trends collectively showcase the ever-evolving nature of the Food and Entertainment industry, where innovation, adaptability, and a keen understanding of consumer preferences play crucial roles in staying at the forefront of the market.

As we move closer to the much awaited budget for 2024, the hospitality industry is expecting some major shifts in policies and financial aids that will help in its growth.

Addressing the GST incongruity is paramount for fostering equitable growth within the hospitality sector and the sector is eagerly waiting for the same as the year looks promising for the industry. “We strongly urge for parity in GST rates between standalone restaurants (5%) and hotel restaurants (18%), recognizing that this disparity adversely impacts our industry. A harmonized tax structure will undeniably contribute to a more resilient and competitive landscape within the hospitality and tourism sectors,” said Tejus Jose, Director of Operations, ibis and ibis Styles India.

The sector not only look for a budget that not only acknowledges the significance of the hospitality industry in bolstering India's global appeal but also takes concrete steps to create a conducive environment for sustainable growth and competition.

Sharing his on the same, Vishal Anand, Founder, Moonshine Food Ventures addressed the need for scaling tourism to new heights. “The expectations from the upcoming budget are there as they have been for over the years. Especially for the F&B sector. With an increased focus on scaling tourism to new heights, there is an expectation for allowances, subsidies & steps to push the F&B sector as well,” he further added.

"Lifestyle health problems in India are increasing and unhealthy food is a major contributor to this issue. The government needs to take cognizance of the problem soon and put in place solutions so that long term effects of such unhealthy foods can be contained.

Healthy foods and beverage options are available, however, 74% of people in India find it unaffordable, as per the ‘State of Food Security and Nutrition in the World’ (SOFI) 2023 report by UN. Sufficient tax breaks and financial incentives for healthy foods and beverages as well as boost in spending towards awareness of healthy eating will go a long way in solving this problem,” commented Abhishek Sarwate, CEO, Utopian Smoothies. 

Not only this, in the dawn of the new financial year, the hospitality (specially QSR) sector stands resilient, yet burdened by the inequity of the current TAX structure and hence brands and businesses are expecting a low GST rate.

“The imposition of a 5% GST without availing the Input Tax Credit (ITC) deprives our industry of rightful benefits, resulting in a scenario where both businesses and patrons bear the brunt of the full cost. From raw material to the end product and fixed expenses like rental, utility etc. the hospitality sector diligently pays an 18% GST without reaping the advantages of ITC. As we embark on this fiscal journey, we call upon the government to consider extending ITC benefits against the 5% GST,” pointed Gagan Anand, Founder and Director, Scuzo Ice ‘O’ Magic, India’s first Live popsicle concept and dessert café.

The experts also believed that this thoughtful adjustment will not only alleviate the financial strain on the industry but also empower businesses to provide enhanced services and experiences. Let this new financial year herald a fair and symbiotic relationship between the hospitality sector and the taxation system, fostering growth and prosperity for all, they shared.

Commenting on the same, Vikrant Batra of Dhansoo Café mentioned, “Restaurant industry is one of the most significant contributors to the national economy and one of the highest employment creators in India. The key request that we want to highlight in this budget is the need for reinstating the Input Tax Credit (ITC) under the Goods and Services Tax (GST) for the restaurant industry. The sector is currently subjected to a 5% GST rate without the benefit of ITC, and if this can be certainly looked upon, it will be of great help.”
 

Restaurant patrons are increasingly aware of their unique preferences and seek dining experiences that cater specifically to their individual desires and needs. According to a recent PWC report, a significant 82 percent of consumers are open to sharing personal information if it means receiving a more customized and satisfying experience. Furthermore, the same survey highlighted that 87 percent of respondents consider a personalized experience as a crucial aspect of their purchasing decision, underscoring the growing demand for tailored service in the restaurant industry.

Restaurants today are facing a unique challenge in the digital age: how to sustainably increase revenue while catering to a varied clientele. The answer lies in the strategic segmentation of customers into four categories - new customers, return customers, regulars, and lost customers - and leveraging data-driven insights for personalized experiences. This approach not only elevates customer satisfaction but also significantly boosts revenue streams.

Welcoming New Customers: First Impressions Matter

New customers are potential goldmines for any restaurant. The first interaction sets the tone for future engagement. Indian restaurants are increasingly utilizing integrated WiFi marketing to capture valuable data like visit frequency and preferences. Personalized welcome messages coupled with tailored offers not only make a great first impression but also encourage repeat visits. For example, a first-time guest at a Mumbai seafood restaurant could be greeted with a personalized message offering a complimentary welcome drink that complements the local coastal cuisine.

“I believe our revenue surge is a result of staying attuned to the pulse of culinary trends, consistently elevating our offerings, and fostering a warm ambiance that keeps guests coming back. It’s about creating an experience, not just a meal,” Manik Kapoor, Director of Cafe Hawkers and Sambar Soul commented. 

Offering first-time customers a discount in the welcome message when they enter a physical store can encourage them to make a purchase. This strategy increases the chances of them buying something during their initial visit or coming back later for more purchases, motivated by personalized discounts tailored to their shopping preferences. Creating a data-informed atmosphere that delivers relevant information to customers demonstrates that a business is committed to understanding and creating a unique experience for its customers, setting it apart from its competitors.

Nurturing Return Customers: Beyond the First Visit

Once a new customer walks through the door a second time, they transition into a return customer. This group is crucial as they have shown initial satisfaction and a propensity to revisit. Personalization in this phase focuses on recognizing their previous choices and suggesting new options. Integrated data systems can track their favorite dishes or seating preferences, enabling the staff to provide a customized experience. Loyalty programs tailored to individual preferences can be highly effective. For instance, a Delhi-based restaurant might offer a special discount on a customer's preferred North Indian dish, encouraging them to become regulars.

According to a McKinsey study, subscribers to paid loyalty programs tend to spend 60 percent more on a brand post-subscription. Similarly, those enrolled in free loyalty programs show a 30 percent increase in spending on the brands they follow. Although paid loyalty programs have a stronger impact in motivating repeat purchases and higher spending, free programs also significantly contribute to boosting customer expenditure and loyalty.

Cherishing Regulars: The Backbone of the Business

Regular customers are the bedrock of a restaurant's success in the competitive Indian market. They provide steady revenue and often act as brand ambassadors. For them, the focus shifts to appreciation and recognition. Exclusive offers, priority reservations, and efficient service are key strategies. A Bengaluru tech hub café could implement a loyalty program offering express service or reserved seating during peak hours, recognizing their regular customers' time constraints.

“Driving Gola Sizzlers’ revenue growth requires a nuanced approach — from selecting the right locations that align with our brand ethos to keenly identifying our target audience. It’s about creating a culinary symphony that harmonizes with the pulse of each neighborhood, ensuring our success transcends mere dining to become a cultural and gastronomic centerpiece,” Rajat Kapoor, Director of Gola Sizzlers added. 

Re-engaging Lost Customers: Rekindling Old Flames

The end of a customer relationship with a restaurant is painful, not just due to the loss of potential revenue, but also because the established connection with customers contributes to a healthier business environment. Focusing on re-engaging with former customers is crucial, as they represent the fourth key customer group for businesses. Through integrated marketing efforts, businesses can revive these relationships, recognizing that a temporary pause in patronage doesn't signify a permanent end. "Marketing Metrics" highlights that there's a 60-70 percent chance of selling to an ex-customer, a notably higher probability compared to the 5-20 percent chance of selling to a new prospect.

“Lost customers present an opportunity for reconnection. Analyzing their previous behavior and preferences through data from integrated WiFi systems allows for crafting compelling offers tailored to bring them back. A restaurant might use historical data to identify customers who haven't visited in the past six months and send them a personalized invitation to a special event featuring their previously enjoyed dishes,” Debaditya Chaudhury, founder of Chowman added.

The key to flourishing is not just in the quality of food but in the art of personalization. As customers increasingly value experiences tailored to their unique tastes, restaurants embracing this trend are setting new standards in customer satisfaction and loyalty. The strategic categorization of customers into new, return, regular, and lost, coupled with leveraging cutting-edge data analytics, has become an indispensable tool. This approach not only nurtures a deeper connection with each patron but also propels restaurants towards sustainable growth and a distinguished place in the competitive market. It's clear that in the realm of gastronomy, the future belongs to those who not only serve meals but craft memorable, personalized experiences that resonate deeply with their clientele.

Following Starbucks long-term Triple Shot Reinvention Strategy unveiled in November, Tata Starbucks Private Limited today announced its ambition of operating 1,000 stores in India by 2028 or one new store opening every three days.

The strategy focuses on skilling local partners for jobs, opening new stores that serve customers with an elevated experience, and promoting Indian-origin coffee to Starbucks customers around the world.

Already a trillion-dollar economy, India is at an inflection point and projected to become the world’s third-largest by 2030 according to economic forecasts, making it a focus area of growth for Starbucks.  India’s strategic importance as one of Starbucks fastest-growing markets globally will see Starbucks doubling-down on its presence in the market.

Through a 50:50 joint-venture between Starbucks Coffee Company and Tata Consumer Products Limited that launched in 2012, Tata Starbucks now operates over 390 stores across 54 Indian cities, with approximately 4,300 partners (employees) who proudly wear the green apron.

High on Expansion

To achieve its target of 1,000 stores by 2028 the company will double its workforce to approximately 8,600 partners as it plans to enter Tier 2 and 3 Indian cities, expand drive-thrus, airports and its 24-hour store footprint to serve customers where they are.
“Over the past 11 years, the India market has grown to become one of Starbucks fastest-growing markets in the world. With a growing middle class, we are proud to help cultivate the evolving coffee culture while honoring its rich heritage. With our trusted business partner, Tata, and our green apron partners, we are well-positioned to capture the limitless opportunities as we open one store every three days in India and further our aspiration to become truly global,” shared Laxman Narasimhan, CEO, Starbucks during a recent visit to India.

Elevating India’s Bean-to-Cup Coffee Experiences

Following the success of Starbucks Reserve Fort Mumbai, that opened in 2022, Tata Starbucks will open the second Starbucks Reserve® store this year as part of the long-term commitment to elevate the coffee experience in India. Catering to the growing number of coffee enthusiasts with a penchant for premium coffee experiences, the new Starbucks Reserve® store will create unique moments of connection with customers through the artistry and craft of Starbucks® black apron Coffee Masters.

In line with the mission to elevate high-quality Indian arabica coffee, Starbucks Reserve® whole bean coffee Monsooned Malabar from India will be available both at Starbucks Reserve® Stores in India and the U.S. later this year.

“Tata Consumer Products and Starbucks have enjoyed a remarkable journey, elevating India’s coffee culture and craftsmanship rooted in high-quality Indian arabica coffee beans. As we move into the next chapter of growth, we will continue to develop India’s coffee culture to deepen connections with our customers, while innovating to bring our unique Indian offerings to the global stage,” pointed Sunil D'Souza, CEO & MD, Tata Consumer Products.

Uplifting the Partner Experience to Bridge to a Better Future

Starbucks has a history of being a bridge to a better future for its partners and recently through the company’s Starbucks College Achievement Plan (100% tuition coverage) achieved the milestone of more than 12,000 graduates in the U.S. from Arizona State University to date. Over 25,000 Starbucks partners currently participate in the Starbucks College Achievement Plan and Pathway to Admission fully sponsored by the company.

In India as well, Tata Starbucks invests in the well-being of partners with industry-leading benefits by empowering its diverse partners, creating equitable development opportunities, and becoming the first food and beverage company in the market to establish a five-day workweek for its people. The company is proud to report that over a third of current partners have been promoted within the organization.

Supporting vocational skilling

Tata Starbucks will empower women in India by providing vocational skills training for underserved young women seeking careers in the F&B retail industries. In partnership with The Starbucks Foundation, which awarded a grant to Trust for Retailers & Retail Associates of India (TRRAIN) to provide 2,000 young women workforce development training, skills building and mentoring by 2024, Tata Starbucks extended on-the-job learning options for program participants in stores in Bengaluru, Chennai, Delhi, Hyderabad and Mumbai.

As Tata Starbucks grows across India, the company remains committed to expanding through elevated coffee experiences, unique store formats and personalized moments of human connection for sustainable growth.

“Thanks to the strong foundation we have built in India, we are entering our next chapter of growth, driven by our unwavering commitment to create a uniquely Starbucks Experience that uplifts customers, communities and partners. With partners forming the heartbeat of our organization and shaping our success in India, we will continue to make meaningful investments that bridge a better future for all partners. Coupled with our focus on reimagining the ‘third place’ and extending our coffee leadership, we are poised to catalyze further growth in India,” said Sushant Dash, CEO, Tata Starbucks.

As we step into the year 2024, the travel and hospitality industry is poised for a transformative journey, shaped by emerging trends, technological advancements, and evolving consumer preferences. The aftermath of the global pandemic has accelerated the adoption of digital solutions and reshaped the way people approach travel. Here are top trends that we are going to witness in the hospitality, restaurant sector: 

Digital Transformation and Contactless Experiences: The travel and hospitality industry continues to embrace digital transformation, with a heightened focus on providing seamless and contactless experiences. From digital check-ins and mobile room keys to touchless payment options, technology is playing a pivotal role in reducing physical contact and enhancing overall guest safety and convenience.

Rise of Sustainable and Eco-Friendly Practices: Conscious consumerism is driving a shift towards sustainable and eco-friendly travel options. Travelers are increasingly seeking accommodations and transportation services that prioritize environmental responsibility. Hotels and airlines are responding by implementing eco-friendly practices, such as waste reduction, energy efficiency, and the use of sustainable materials.

Personalization through AI and Data Analytics: Artificial Intelligence (AI) and data analytics are empowering travel businesses to personalize customer experiences. By analyzing user preferences and behavior, companies can offer tailor-made recommendations for accommodations, activities, and dining options. This level of personalization enhances customer satisfaction and loyalty.

Immersive Technologies in Travel Planning: Virtual and augmented reality are revolutionizing the way people plan their trips. Travelers can now virtually explore destinations, hotels, and attractions before making a booking decision. This immersive experience not only aids in better decision-making but also creates excitement and anticipation for the upcoming journey.

Blockchain for Enhanced Security: Blockchain technology is gaining traction in the travel industry for its ability to provide enhanced security and transparency. From secure and efficient payment processing to streamlined identity verification, blockchain is playing a crucial role in safeguarding sensitive information and reducing the risk of fraud.

Hyper-Personalized Marketing and Loyalty Programs: Hospitality companies are leveraging advanced marketing techniques to create hyper-personalized campaigns. Through the use of AI and machine learning, businesses can tailor their promotional efforts to individual preferences, making marketing messages more relevant and effective. Loyalty programs are also evolving to offer personalized perks and rewards.

Remote Work Integration in Hospitality: The rise of remote work has led to an increased demand for accommodations that cater to professionals working from different locations. Hotels and resorts are adapting their services to accommodate remote workers, offering co-working spaces, high-speed internet, and amenities that support a comfortable work environment.

Health and Wellness Travel: The pandemic has underscored the importance of health and wellness, leading to a surge in wellness-focused travel. From spa retreats to fitness-centric vacations, travelers are seeking experiences that prioritize physical and mental well-being. Hotels and resorts are responding by incorporating wellness amenities and programs into their offerings.

The year 2024 promises to be a dynamic and transformative period for the travel and hospitality industry. As technology continues to shape the way we travel, businesses that embrace innovation, prioritize sustainability, and cater to evolving consumer preferences will undoubtedly thrive in this ever-changing landscape.
 

Restaurant India hosted its Leadership Series and 2^nd Edition of Hyderabad Conference and Awards on 5^th Dec at ITC Kohenur. Restaurant owners, chefs, professionals, food-tech players, investors and the government officials came together to discuss and debate on the ongoing trend in the Restaurant Indutsry. Here are top 4 Trends from Restaurant India Hyderabad:

Know your Team Well: Restaurants today need professional people of high level, trained and qualified staff as it is very important to know who is the team that work with you. “A training facility by restaurant people is required since restaurant is very different from other sector, the training has to come from within the industry,” mentioned Mr. Jayesh Ranjan, Secretary, ITE&C, Govt of Telangana.

Focus on your ‘Core’ Product:  It is very important to know your core product as this is one item on your menu that’s bringing the business. “Most of the cities where we are essentially south of India and we don’t have to make lot of effort to localise it because Hyderabadi biryani is something which is loved by people across the globe. It is one product/menu which is on every Indian restaurant across the globe wherever you go. In that sense we had a huge benefit when we were planning to move out. As a restaurant company what we realised that you need to have a core product. We have 130 products on the menu but biryani is our core. So, when we planned to move, the first thing we did was to centralise the biryani process,” said Siddharth Arora, COO, Paradise Food Court.

Experience is the Key: “I think the trend has to relate to the experiences. For eg: I am running a Korean Pizza chain that was launched last year, if I would have launched this before COVID, I believe it wouldn’t be successful as Korean food became popular only after the popularity of K-drama and that’s helping me in picking up the trend looking at the customer demand,” pointed Mahesh Reddy, CEO, GoPizza.

Standardisation vs Customisation: Standardisation is playing a key role in the growth of quick service restaurant chains whereas if you are running a restaurant that is based on experience, customers are looking for customisation. “On overall perspective we work with QSR, restaurants and according to me we are at a very interesting time. All the QSRs, Cloud-kitchen wants to scale and they are looking at extreme level of standardisation whereas the customer is looking at an extreme customisation. So, it’s going to be an exciting stage where technology will bring standardisation and chefs over that standardisation will build customisation to cater to the customers,” mentioned Sanandan Sudhir, Founder & Director, On2Cook India.

Known as the city of ‘Nawabs’, the dining scene in Hyderabad has changed from ethic, traditional dining to new age restaurant and bar concepts. Restaurant India and Franchise India hosted the 2nd Edition of Hyderabad conference and awards on 5th December at ITC Kohenur that saw huge participation from the F&B fraternity. The event was attended by the who’s who of the sector including Amar Ohri, MD, Ohri’s, Siddharth Arora, COO, Paradise Biryani, Teja Chekuri, Managing Partner, IronHill India to name a few. 

Restaurant India spoke to Amar Ohri and talked about his business, trends and future plans: Excerpts from the session: 

Growth is a continuous process:

Born into a humble family from Orissa, the 46-year-old Amar Ohri joined his family business in 1988 after completing his education, (BBA from Ecole Lemania in Lausanne, followed by a MBA at Johnson & Wales University in Providence, Rhode Island, USA). “It been more than two decades when I joined my father Mr. Ravi Ohri in the business and most of the brands that we operate today is 25 years, 30 years older,” shared Amar proudly on counting on his legacy and loyalty to the city of Nawabs. 
According to him, if the company is not growing, there's something wrong and for brands and businesses like him learning is the new growth every day.

“Creating a boutique restaurant will have challenge, cost, trends, competition and growth will counter those,” he added by pointing that if your company is growing you really don’t need to go out an experiment. 

When should you innovate?

It’s not always necessary for a restaurant brand to innovate and tweak. If you have got your market, customers’ right, there’s no point fixing it because everyone else is doing or incorporating these new changes and trends. 

“If your business/restaurant isn’t broken don't fix it because if you are running a legacy brand, you need to get the statistics right because the people and the customer never gets bored of trying a legacy restaurant,” he pointed by mentioning that as long as everything look fresh the restaurant doesn't need to change.

Trends in Hyderabad

Known for creating and giving many firsts to the foodie city, he believed that larger spaces that create an experience, fill in great products, energy flows around and has created great way to create a larger than life destinations is the new trend in the market. Today, experience is on top of everything and people are attracted to good food, little drama and experience.
Also, people these days know how to build brand and not just the biz and they are focusing a lot on packaging, customer experience.

Flying High

There is no denying that his father has undoubtedly set up the structures, but Amar has really given his best and put the processes in place for running those structures as F&B establishments. “We are not in a rush. We plan to open 100 outlets in Hyderabad, we are operating 39, next year 50 and may be in few years we can touch the 100 count,” he added by pointing that Hyderabad has given the platform to him and there’s no rush to venture out of the city any soon.
 

There’s no denying that omni-channel brands are the future of restaurants. But we are living in an exciting times where delivery and cloud-kitchen business has a great role to play. And, there’s no denying that whenever there is a crisis people tend to innovate out of it and that’s what happened when Covid struck the world two years back.

Innovation is the Key

“I believe in the statement that anytime there's a crisis it represents an opportunity to get you out of there and do something a little out of the box. So, the motivation was very clear. We had at that time 400 people working with us. We are over a thousand now, probably inching towards 1200. And this is all within the three years Covid and post Covid era. At that point I also decided that while it was nice to kind of get into delivery with the existing brands, it was even more important to have independent identities,” shared Varun Tuli of the Yum Yum Tree Group who ventured into the cloud-kitchen model during the mid of the pandemic when he knew that he can’t let his people go because there was nothing to do in the restaurant kitchen.

Technology is the Need of the Hour

“We have 40 outlets now, and we'll be having 20 outlets by December and by March, we are targeting 100 outlets. We use AI-driven robotics and technology to maintain consistency because when we expand, the pizza has to be same, the sauce has to be same, the cheese & topping has to be same quantity and the quality has to be maintained. So that's where the technology plays a role and helps us create a brand,” pointed Mahesh Reddy, CEO, GoPizza India that is on an expansion spree in different parts of the country.

The Food has to be Right

“I am a chef by profession and not just an entrepreneur. So, I bring a totally different perspective when it comes to the front end and the back end. Restauranting is the only space where an individual is coming to you and he's giving you his attention for good half an hour, 40 minutes, or an hour. Food is what people go out for,” added Sunil Chauhan of FabCafe.

Being Transparent in Approach

“The credit for our fast growth goes to the Indian palate friendly menu that we have. So, the café revolution started when we wanted to open our outlets in tier two or three cities and like I said we have 125 outlets now in 50+ cities and very proudly I would like to share that 80% of our stores are in tier 2 and 3 cities and even in some tier 4 cities. It wasn’t easy because we started very small and with little savings that we had we built a self-sustainable model because we didn’t had any funding at the starting. I think being transparent in our approach and leveraging technology at the same time and being a customer obsessed brand has really worked for us,” concluded Neelam Singh, Co-Founder, The Burger Company.
 

Your whole idea of visiting a restaurant is a big flop if the food served doesn’t meet the expectation. We have always praised the restaurant for its interior, food, quality, music and service and have seen restaurant owners taking all the praises for the work done; but have you ever thought how much effort a chef put to bring the best on the table. It’s all because of the creativity in the kitchen that a restaurant is all praise.

Ever since its inception by Late Chef Dr. Bill Gallagher in 2004, International Chef's Day has been as much about celebrating people in the culinary profession as promoting the importance of healthy and responsible eating.

Here are key learning experiences from the culinary heroes this International Chefs day for the young and aspiring chefs to look and incorporate:

Keep Learning Every day & Strive for quality and consistency: According to celebrity chef Abhijit Saha, it’s about learning new things everyday along with looking for quality and consistency in a restaurant kitchen.

It’s about Team Work: All members of the team contribute in making the customer experience memorable which is of prime importance in the F & B industry. “Effective team work makes the employees more productive and also keeps them driven and engaged,” shared Chef Ashish Singh, Corporate Chef, Dhansoo Cafe, Gurugram. He also pointed that as a chef one should also keep the process of cooking as simple as possible and respect all the ingredients equally so that all the ingredients retain their flavour and the dish comes out well wherein the essence of each ingredient is justified.

Always trust your instincts: “Good is art and there is always a new way or a new approach to something. Ingredients are key and speak to people differently - the best chefs cook on instinct- sometimes it’s great to deviate from a recipe and make it your own,” added Chef Gauri Varma, Founder & CEO- Confect,  Entrepreneur, Food Technologist.

Too much Innovation Ruin the Biz: “Never over play or under play with the authenticity of traditional recipes and flavours. Innovation is important but without losing the original essence of a dish,” believed Chef Kush Koli, Head Chef, SAGA, Gurugram by pointing that it is very important to educate your guest on flavours etc but a Chef should in my opinion never force their opinion instead should understand the palate of the guests / region / culture and imbibe that into their cooking.

Focus on your Work: In the pursuit of a successful career in the hospitality industry, it is imperative to always align yourself with the right individuals who possess a visionary mindset and have a proven track record, particularly skilled chefs who share your culinary aspirations. “Two pivotal lessons emerge from this journey: firstly, during the initial five years of entering the world of kitchens, focus on continuous learning and dedicate yourself to mastering the fundamentals, drawing wisdom from experienced mentors. Secondly, an unwavering commitment to the right attitude is paramount, characterized by an unyielding willingness to learn and an ever-present "yes" to customer needs. Success hinges on the bedrock of passion and discipline. Additionally, one can adopt the three guiding principles of dedication, devotion, and determination, collectively known as the three Ds, to steadfastly pursue their personal and professional goals within the hospitality industry,” commented Chef Vaibhav Bhargava, CHÔ - Vietnamese Kitchen & Bar.

Patience is the Key: According to Chef Nikhil Rastogi, UNOX India, like any other process, the learning process never ends in professional as well as personal life. No matter how hard we try to live multiple lives as a Chef, Father, Son or Colleague, there are some learnings that stay with us and mould as an individual who we are today. “The primary learning for me as a Chef has been PATIENCE. During my professional career as a chef, I have learnt it the hard way that we come across different entities and individuals in the form of Seniors, subordinates, peers, guests, vendors etc who all have different ways of perceiving communication. What we feel as an effective communication sometimes isn’t taken the same way and hence not reciprocated accordingly due to different socio economic backgrounds of all these people. We need to develop this virtue of Patience in order to transform Customer experience, which is at the heart of hospitality,” he added.

World Food Day is celebrated every year on 16 October. The day is dedicated to create awareness about the importance of healthy diet, and highlight the challenges faced by millions of people across the globe due to lack of access to healthy food. The main purpose behind celebrating Food Day on a global level is to promote policies and programs for eliminating hunger to ensure that the upcoming generations do not face food related issues and malnutrition. Restaurant India spoke to some of the top restaurant and food entrepreneurs from across India on the key learnings that these people have over the years while running a successful restaurant business.

Never Ever Compromise on Quality: When we talk about healthy diet, food safety and wholesome food, the most important aspect of a restaurant business that comes to our mind is ‘quality’. According to, Vishal Anand, Founder, Moonshine Food Ventures, food industry is ever evolving and moving forward at a fast stead pace. “The most important learnings I have taken from my years in this industry are that never ever compromise on quality. Always use the best quality and fresh ingredients and ensure you always give your patrons a wholesome experience,” he added by pointing that it is important to innovate but it is even more important to not digress from the authenticity of flavours and preserve the uniqueness of every dish.

Commenting on the same, Harsha Vadlamudi, Cofounder and Managing Partner - Ironhill India said, “Unwavering commitment to quality is non-negotiable. Regardless of the customer's expenditure, quality is a universal priority. As a brand, it is imperative to consistently uphold the highest standards in all facets of the business – from the food served to the ambiance of the establishment and the quality of service provided. This unwavering commitment to quality is not only a hallmark of professionalism but also a key driver in retaining a loyal customer base.”

Customer is the King: No matter how good you are in the business, if your customer is not happy and satisfied, your business will not survive in the market. “The first major learning that I’ve got from the food industry is that customer satisfaction is the key to success. Serving good quality, tasty food and great service go hand in hand in ensuring customer satisfaction. Also constant innovation is important to keep the customer engaged and ensure their return,” pointed Vikrant Batra, Cofounder, Dhansoo Cafe, Gurugram. 

Diverse Culinary Experiences: Sharad Madan and Naresh Madan, Co-Founders, Khubani, Delhi have learned that the restaurant industry is not just about serving food; it's about creating a holistic dining experience. They emphasize that a diverse culinary experience, which includes a blend of flavors, ambiance, and service, is what sets a restaurant apart. This learning has driven them to curate menus that cater to a wide range of tastes, ensuring that there's something for everyone, and to create a welcoming atmosphere that fosters memorable moments for patrons.

Constant Adaptation and Innovation: Sharad and Naresh have learned that staying relevant means being open to change, whether it's experimenting with new dishes, adapting sustainable practices, or embracing technology for efficient operations. They believe that innovation is not just about following trends but also about setting them, and they continually seek fresh and inventive ways to enhance the dining experience for their customers.

Respect your Time: In the realm of the Food and Restaurant Industry in India, though people focus on many fundamental principles but everyone forget to mention the most important aspect of running a business, ‘Time’. According to Harsha Vadlamudi of Iron Hill India, “An entrepreneur's dedication to respecting time is a pivotal aspect. Time is a valuable resource, and in the world of business, punctuality and respecting the commitments made to others are essential. For entrepreneurs, demonstrating respect for everyone's time is not only a mark of professionalism but also a testament to one's reliability and integrity. It fosters trust and bolsters relationships, both of which are integral in the restaurant industry.”

Know what’s Trending: “It is important to recognize that the palate, trends and requirements of the consumers keep evolving over time. Till a few years ago, the only people who avoided sugar were diabetics, but now fitness enthusiasts, especially GenZ and Millennials, try to keep Sugar and sodium levels to a minimum and consume as healthy as possible. Foods and Beverages with higher sugar content may taste better but GenZ and Millennials are ready to forgo them for healthier options. Such trends like healthier foods and Vegan friendly-options are accelerating and the F&B industry needs to offer these in their menu to cater to the growing audiences,” commented Abhishek Sarwate - CEO at Utopian Smoothies.

The Food and Restaurant Industry in India demands a steadfast commitment to quality and an unwavering respect for time irrespective of the country you are in. Embracing these principles not only elevates one's brand but also paves the way for long-term success in a competitive and dynamic market. These key learnings reflect their commitment to providing a diverse and innovative culinary journey for their patrons while adapting to the ever-evolving landscape of the food and restaurant industry.
 

Restaurant Business in not everyone’s cup of tea, one has to be very passionate about operating and owning a restaurant. According to Pizza Hut India Sub Continent, Managing Director, Merrill Perryra, the importance of the three Cs: Consistency, Convenience, and Connection in the food industry is very important. Addressing to audience at 12^th Indian Restaurant Congress, he mentioned that connection with customer is very important. Excerpts from his speech:

Adaptation during the Pandemic: The COVID-19 pandemic forced rapid adaptation in the food industry. It highlighted the need for innovation and evolution to meet changing consumer demands.

The Significance of Connection: Connection with customers is essential. People seek not only good food but also an emotional connection. Familiar comfort food became even more important during the pandemic.

Adaptation to Digital Platforms: Brands need to adapt to digital platforms to connect with younger generations like Gen Z who have specific preferences for communication (e.g., WhatsApp, Snapchat, Discord).

Values and Authenticity: Authenticity and alignment with values are crucial for connecting with today's youth. It's not just about products and marketing; it's about living up to what the brand claims.

Innovation and Sustainability: Innovation initiatives, such as the use of solar panels and reducing food waste, are important for business strategy, appealing to investors, customers, and employees.

Consistency and Convenience: Consistency in product quality and brand experience is key to customer satisfaction and loyalty. Consistency should be maintained while embracing innovation. Meanwhile, convenience, beyond just delivery, is crucial in today's fast-paced world. It includes affordability, sustainable packaging, and ready-to-eat meal options.

Growth Opportunities: The Indian food industry is poised for double-digit growth, and businesses should invest in new technologies, expand into untapped markets, and tailor their offerings to diverse consumer preferences.

Tailored Communication: Personalized and relatable communication is important, especially in the digital medium. Use pop culture and authenticity to connect with consumers.

These points highlight the importance of adapting to changing consumer needs, maintaining authenticity, and aligning with values in the food industry, especially in the context of the three Cs: Consistency, Convenience, and Connection.