This year restaurant business may cross 85 percent level of FY 2020

In FY22, the Indian food service industry may manage to reach over 85% of the pre-covid estimates. NRAI estimates that in a normal financial year the industry would have reached approx. ₹5.5 trillion. it has been modified below ₹4.7 trillion.

The restaurant industry faced causation due to the multiple lockdowns imposed to contain the spread of the coronavirus. This was true for both organized and unorganized chains.

NRAI President Kabir Suri said that in FY2011, 25% of restaurants closed completely and over 2.3 million people employed in the sector lost their jobs.

The food services market also saw an inclination towards home delivery as convenience for consumers and restaurants alike.

The study drew insights from food business operators and their partners, including aggregators, manpower and staffing agencies, logistics partners and others affected by Covid.

According to NRAI estimates, it will take time for the industry to fully recover and crawl back to pre-Covid levels despite normalcy amid a steady immunization drive.

The substantial reduction for pre- and post-Covid financial year 2011 is a measure of how severely the industry has been affected.

Not surprisingly, restaurants in large cities with high caseloads suffered the most. These include Delhi and Mumbai.

“Food business outlets in the top two cities in the country have been most affected by Covid-19, which severely impacts both these cities, because of population density and economic activity, among other factors. The state governments had imposed a complete lockdown during both the first and second wave of Covid. Even on operational days there were restrictions on seating capacity and business hours. This means that the food services business hardly operates without any restrictions since the onset of covid. The report stated. Even when restaurants reopened, they operated under time and capacity restrictions.

Tier-II markets, on the other hand, reported a faster recovery. Many restaurants reported rapid recovery in markets like Chandigarh and Indore.

“The industry is undergoing a profound restructuring to adapt to the challenges posed by Covid. Nitin Saluja, Founder, Chaayos and member of NRAI Managing Committee, said, “The NRAI report aims to highlight the many trends that have emerged in the last 18 months and act as a compass for policy makers to give the much needed boost to the industry. Is.

A restructuring is taking place with more orders being moved to online or takeaway. Pre-Covid, the average contribution of delivery to the total share of revenue for restaurants was 10%. After the first unlock it increased to 29% and after the second unlock it increased to 33%.

However, as the Covid situation improves and things return to normal, the delivery segment is expected to shrink from current levels, but well above pre-Covid levels, said the report.

Cloud kitchens have also boomed in some of the top cities of the country during the lockdown.

The industry employs 7.3 million people and is one of the biggest job creators for the economy.