The bite of Luxurious Indian Culture in Cafe Business
India’s restaurant and food service sector is heating up. Fast-paced growth, world-class processes and high hygiene standards are rapidly changing. What once used to be an unorganised industry that rarely attracted investment is now flourishing . The other surprising trend which came up is the space for Indian design dialogue and collaboration.
The Indian Food Service industry is projected to grow to Rs 408,040 cr (USD 78 billion) by 2018 at a CAGR of 11% . In 2013, the size of the chain casual cafe market was estimated at Rs 3,950 cr (USD 760m), and is projected to grow at a CAGR of 18% to reach a size of Rs 9,035 cr by 2018. The Fine Dining market thrives largely on the affluent consumer, the study notes. The segment is growing at a healthy rate of around 15%.
The Food Safety and Standards Act, 2006 necessitates a Food Business Operator license for anyone involved in the production, processing, import, distribution and sale of food products within India. Therefore, all restaurants or cafes need to obtain a Food Business Operator license from the Food Safety and Standards Authority of India. The purview for licensing restaurants fall under the state level licensing authority and can be easily obtained prior to starting the operations of the restaurant. The food business operator license is granted for 1 year and is renewable.
Challenges and risks
Food price inflation
Unfavourable demand-supply conditions
Lack of trained manpower
High attrition rates of 20 to 25 percent
Rising real estate costs
Lack of established supply chain
Cold storage facilities
Large number of licensing and clearances requirements.
Ideas to discover Indian themed cafes:
A vibrant waiting lounge, carved out from the restaurant space.
Innovative architectural lighting (Example : lanterns)
Walls depicting Indian culture
Seating arrangement according to the customs in Indian villages
Pure Indian Cuisines
Hindustani Vocal Music in Background
Staff dressed in Indian traditional clothes and accessories
Indian traditional cutlery
Sources: India Filings