Maharashtra Tourism Minister releases NRAI India Food Services Report 2016 in Mumbai
~Report’s
Mumbai pull-out highlights the city as the second largest food services
market in India~
~Also
states employment generated by food services in the city is
around 5,00,000 people in both organized and unorganized segments~
by Shrutee K/DNS
Mumbai, September 19, 2016: After the
roaring launch in New Delhi by Shri Amitabh Kant, CEO, NITI
Aayog in July 2016, the NRAI India Food Services Report 2016 (NRAI
IFSR 2016), industry’s most influential and respected
trade-report, was released by Shri Jaykumar Jitendrasinh
Rawal, Hon'ble Minister of Tourism, Government of Maharashtra, in the city
today along with a special pull-out
carrying information on Mumbai’s food services
industry. Commissioned by the NRAI and compiled by Technopak, NRAI
IFSR 2016 is the only and most comprehensive trade report on the Indian
food services sector. It states that Mumbai, which ranks among the
world’s top ten centres of commerce, also boasts the highest GDP in India
making it a lucrative market for all food businesses. Shri Madan
Madhukarrao Yerawar, Hon’ble State Tourism Minister also graced
the occasion as the ‘Guest of Honour’.
Discussing
the report with the restaurant fraternity in
Mumbai and the chief guest, Mr. Riyaaz Amlani,
President, NRAI, remarked, "The organized food
services market in Mumbai is estimated to contribute INR 3,500-4,000 crore as
taxes. Out of 5,00,000 people employed by the food services
industry in Mumbai, organized segment itself employs around
2,70,000 (53%) people of the total workforce. As per the NSDC, restaurants
contribute the maximum manpower requirement within the hospitality sector. This
is by no means a small achievement.”
While addressing industry
concerns to the hon’ble chief guest, he pointed out, “Out of
the top 10 restaurants in the city in 2012, only two survived in 2016. As
no ministry covers restaurants, we have to go to several
departments for our paperwork and to get the plethora of
licenses and NOCs issued, like- the shops and establishments
department in the BMC for our licenses and health permits, the legal
metrology department for our weights and measures, and the fire
department for fire licenses. We report to multiple departments and no one in
particular. Regulation of our business is hyper-local, and the need is to
deregulate the business and incentivise people to open restaurants.”
He further added, “While we appreciate the recent
initiatives of the Maharashtra Government to improve the
business environment for the industry, complex maze of approvals and
licenses and high tax brackets are not favorable for government’s
agenda of ‘Ease of Doing Business’. We wish to
continue working with the state authorities to overcome
challenges including single-window licensing, permission for
24/7operations, reduction in the drinking age, and usage of terrace
area for serving food, among others, so that the city’s food
services sector, citizens and the government can all be beneficiaries.”
Noting
that this is an exciting time for investors to be in the F&B Sector, Rahul
Singh, Honorary Secretary, NRAI, mentioned, “Tapping into the
immense potential this sector holds, many multinational brands have entered the
country and prospered. The industry has also seen tremendous support and
investment coming in from VC & PE firms. The potential for growth is also
cemented by the fact that previously international companies that preferred
entering through a master- franchise route only, are now launching through
company-owned outlets or joint ventures with Indian affiliates.”
While
presenting details from the report, he also highlighted the
following key points with respect to Mumbai’s food services industry:
•
The organized
market (chain and organized standalone) is valued at INR 14,665 crore (~USD 2.3
billion), which is significant at 14% of the total organized food services
market in India
•
The chain market
in Mumbai is estimated to INR 4,715 crore (~USD 725 million) and is ~ 23% of
the overallchain market in the country
•
The unorganized
market holds a 55% share in the pie and is valued at 17,665
crore (~USD 5 billion)
•
Organized
standalone market in Mumbai is dominated by Casual Dining formats
•
Mumbai has
the highest eating-out and ordering-in frequency in the country
Addressing
the restaurateurs and Mr Amlani’s concerns, Shri
Jaykumar Jitendrasinh Rawal, Hon'ble Minister of Tourism, Government of
Maharashtra said, “The Department of Tourism, Government of
Maharashtra, is in the process of creating a single window clearance mechanism
for the hospitality industry and restaurants backed by an empowered committee.
Some of the expected outcomes for the industry from this mechanism are – faster
clearance and release, single source of information on licenses, processes,
documents and requirements, increased transparency through application tracking
and status checks, enabling online services for submission of all applications, etc. As
the State Government is committed to strengthening this sector in
Maharashtra, our move to introduce shopping, entertainment and city hubs
at 22 points along the up-coming Mumbai-Nagpur corridor is an initiative that
members of NRAI can also look forward to. I believe this corridor shall offer
tremendous investment potential for restaurateurs and QSR chains.”
Mr Samir Kuckreja, Past President and Trustee,
NRAI added, “Over the years, the Indian consumers’ profile,
behaviour and spending patterns have evolved with the changing economic, social
and demographic landscape. I hope NRAI IFSR 2016 will be a guide for
restaurant owners and operators to understand key levers which drive business
and help grow their revenues profitably over the next few years.”
Given Mumbai’s stature
as a financial capital with a high propensity of dining-out, the report seeks
to highlight the major trends and figures of the sector in this hub.
Commenting on
the recent developments in the restaurant industry, Mr. Amit
Jatia, Chapter Head, NRAI Mumbai stressed thatMumbai’s
restaurateurs need to up their game. He remarked, “In this rapidly
changing food retail and service landscape, brick and mortar restaurants will
be competing with an increasingly wider set of peers for the same customer
wallet. Moreover, to be relevant in the future, players need to reinvent their
ways of doing business. Hence, need for fundamental transformation
andpolicy changes like model and shop establishments, GST and the seventh
pay commission implementation would play a pivotal role in the growth of
the sector.”
The
launch was a high-profile event that witnessed the coming together of CEOs
of all the popular restaurants such as Mr Amit Jatia of McDonalds, Mr Anurag
Katriar of Indigo, Mr Chetan Arora of Subway, Mr Sameer Seth of The Bombay
Canteen, Mr Sanjay Coutinho of Baskin Robbins, Mr AD Singh of Olive Bar &
Kitchen, Mr Dheeraj Gupta of Jumbo King, Mr Sumer Vaswani of Blue Frog, Mr
Gaurav Goenka of Rajdhani, Mr Rahul Leekha Di Bella, Mr Rajeev Matta of The
Yellow Chilli, Mr Vijay Kamat of Vithal Kamat, Ms Gauri Devidayal of The Table
including many more. The event also saw presence of popular star chefs like Chef
Vicky Ratnani, Chef Rahul Akerkar and Chef Saransh Goila.
NRAI
IFSR 2016 includes results from in-depth interaction with a variety of
companies, meetings with over 50 CEO’s, consumer research that covered
2000 people across 20 cities of India and trade research at
restaurants. The report addresses international market perspective for
nine countries including USA, China, South Africa, Turkey and UAE and reveals that
the food services market in India has triggered growth across a wide range of
ancillary industries, thus providing a boost to the entire ecosystem.
WatConsult
and Lodha Capital Markets have also contributed chapters on ‘Digital
Marketing Practices’ and ‘Prospects of Private Equity/ Venture Capital
Investing in India’ respectively to this report.
The NRAI IFSR 2016 will be subsequently launched in Bengaluru with a special pull-out on the garden city. A copy of the NRAI IFSR 2016 can be bought at INR 45,000 on nrai.org/buy-report.
About NRAI:
National Restaurant Association of India (NRAI) was
founded in 1982 and since been the leading association of the Indian restaurant
industry. Headquartered at Delhi, we represent both independent and chain
restaurants owners and operators in India.
The association in its 33rd year has a pan India
presence with members comprising of restaurants, suppliers and
educational institutes associated with it. NRAI is governed by a committee
of members and led by a President and Office Bearers representing various national
and international brands from the F&B sector.
The Association represents interests of the members by offering
advisory, training, research services and organizing industry events.
Regional Chapters
NRAI works closely with a network of State and City chapter partners in
Mumbai, Bengaluru and Gurgaon. More Chapters in Noida, Pune, Hyderabad, Chennai
and Kolkata are being set up.
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