BENGALURU: The ad hoc manner in which the city’s civic agency and excise department crack down on restaurants, pubs and bars for issues such as use of terraces and playing live or recorded music, has left businesses high and dry, according to the National Restaurant Association of India (NRAI) Food Services Report.
“The public entertainment licence requires establishments to have an occupancy certificate (OC),” Manu Chandra, chef and head of Bengaluru chapter of NRAI, said about the ease of doing business in Bengaluru. “However, most of the businesses are tenant-run and it isn’t possible to procure the OC suddenly from the landlord. The same goes for the fire safety certificate,” he added, talking about how it is not easy to build a 20,000-litre water tank on a 20x40 site.
“Several laws are contradictory and crackdown is ad hoc in nature. High graft in renewal of licences is curbing the growth of the industry. We have been working with the government to have a single-window clearance for licences,” said Chandra, who owns nine brands, including Toast and Tonic, Monkey Bar and Cantan.
The restaurateurs also pointed out other challenges, such as opposition from residents, plastic ban without alternatives from the government, and the excise department not releasing liquor stocks. Bengaluru’s organised food service market stands at Rs 20,014 crore out of the country’s market size of RS 4,23,865 crore. The city accounts for the third largest market among metros. “The growth of Bengaluru’s food service industry is due to the cosmopolitan culture and the technology sector sparking a revolution in eating habits. The city has over 42,300 organised and unorganised restaurants,” Chandra added.
“Disposable incomes, growing young population and working couples who don’t have full-time help at home are other reasons for the growth,” Samir Kuckreja, past president and trustee, NRAI, said, adding that 44 per cent of the consumers belong to Gen Z, who are particular about health and wellness-oriented nutrition. “We expect the industry to grow at an annual growth rate of 9 per cent. Last year, it gave Rs 18,000 crore in taxes,” Kuckreja added.
Food for thought
26% of consumers in B’luru prefer North Indian cuisine The next most popular delicacies are biryani (10.81%) and South Indian food (10.1%) City spends `3,586 per month per household on average on ordering food or dining out National average for expenses on non-home cooked food is Rs 2,500 per month per household.
Source: NRAI Food
Services Report 2019