The new math for India's $50 billion restaurant industry

Covid-19 has turned up the heat on Indian restaurants—orders are dropping by 60-70%; revenue is expected to fall by more than 40%. Restaurants are now turning to other options to bring home their bacon

Nearly 30-35% of the restaurant industry may not exist post-Covid

Revenues are down, but fixed costs like rent and salaries will still have to be paid

The industry must reimagine the business—from dine-in services to hygiene practices

Restaurants may also have to rent out kitchens and move to revenue-share agreements

Uncertainty and fear were the overriding emotions of the nearly 1,000 Indian restaurateurs who tuned into an hour-long webinar last week. Appropriately called “After the Bloodbath, Emergency Revival Plan for the Restaurant Sector,” the webinar was replete with questions and strategies to salvage their businesses.

But many will not survive.

“30-35% of our industry will not exist post-Covid,” Jimmy Shaw, managing director at luxury hotel The Waterfront Shaw told The Ken. The ones that do will not see business bounce back in a hurry, added Shaw, a member of The Federation of Hotel and Restaurant Associations of India (FHRAI).

AUTHOR

Abinaya Vijayaraghavan

Abinaya is a Bengaluru-based writer, covering the sprawling and exciting world of Indian e-commerce. When she is not trying to understand alpha sellers and complex supply chains, she enjoys travelling and playing badminton. Abinaya was previously a reporter at Reuters.

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