The hospitality segment which includes majorly Restaurants in India will contribute a huge amount of money through taxes by the end of 2016. The total sum comes approximately at 22,400 Crores INR. The process would also lead to recruitment of millions of aspirants willing to take jobs in the similar sector. At present Indian Food Services Report (IFSR) is planning to revive and create 5.8 million jobs directly.
The respective industry will help boost economy thus making contributions near about 2.1% to the country’s GDP by the year 2021. As per reports submitted by National Restaurant Association of India (NRAI), country’s food services consumption was worth 3.9 lakh crores which eventually would increase to 5 lakh crores by 2021. The growth rate has risen by 7.7% accumulating to 3, 09, 110 and substantially rise by 10% in recent years.
According to NITI Aayog CEO, Amitabh Kant, India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts have given the F&B services sector such a fillip that the industry is currently estimated to be worth $48 billion in terms of overall market size.
Surprisingly, if we take a look at the overall market globally, then India’s restaurant industry contributes mere 33% out of the total. It is sole because of the over regulation of the domestic industry along with the complexity of rules and regulations levied over the sector. The approvals and licences required for putting up a business are complex thus with a high-tax bracket at the other end.
Therefore, government tend to intrude in industry’s socio-economic impact which ought to be recognised thus initiating immediate steps so as to unlock the true potential of such huge size hospitality sector.Apart from many obstacles restaurant industry faces other issues such as personified industry challenges, high real estate, human resource costs, financing issues, infrastructure, inadequate supply chain, and much more.