BUSINESS
Food Service Industry:
Tackling the Pandemic
Food Service Industry, India’s third-largest service industry, which was almost wiped out during the initial phase of the pandemic is now set to make a comeback. During 2020 a large number of restaurants had to down shutters due to COVID-19. However during the third quarter of 2021 a large number of them are back in business and as the country and the States relax restrictions on the capacity and timings the food service outlets are adopting all SOPs to ensure that customers feel comfortable visiting these places under the new normal. The people too, with relaxations, are now in a mood to socialize and willing to trust their favourite restaurants. Ashok Malkani finds that the industry is now set to regain its past glory – and more!
R
estaurant entrepreneurship is a challenging business as this industry must continuously evolve to meet the consumers' ever‐ c hanging tastes and preferences. The National Restaurant Association of India’s ‘Indian Food Services Report 2019’ states that the F&B sector experienced a tremendous growth over the last 3 years. However, over the last one-and-a-half years, the Restaurateurs, due to corona virus and the subsequent lockdowns, have been severely impacted. Since many restaurants had to pivot on
30
an online-only model for survival many of them closed down. A report published by the National Restaurant Association of India (NRAI) on October 25, 2021 showed that the Indian food services industry declined by 53% during the FY 2021 (Apr. 2020 to March 2021). The report said that the industry was estimated to be worth Rs. 2 lakh crore in FY 2021, down from Rs 4.23 lakh crore in FY 2019. Revenues of restaurants took a beating due to the pandemic. According to the report, the average revenues of
Hammer Food & Beverage Business Review
restaurant after the first lockdown, was d ow n by 4 6 % as co m p a re d to p re pandemic levels. The restaurant entrepreneurs face significant uncertainties in consumer demand as they avoid public places and are increasingly concerned about hygiene a n d s afety. Acco rd i n g to t h e rat i n g agency CRISIL, the restaurant industry is witnessing a 50-70 per cent decline in revenues in this fiscal year because of the disruptions caused by the pandemic. The dine‐ i n restaurants are now dependent on
Oct-Nov ’21
