Indian food industry is growing aggressively and is driven by new trends that are coming up in the industry. According to the experts in the industry, increased standard deduction against travel and medical expenses will add to the disposable income in the pockets of the common man. Addition of disposable incomes is directly proportionate to spending power of the customers which increases the competition. Here are few points which could help restaurants and restaurateurs to cope up the challenges and overcome competitive market:
New Year, New Opportunities: Food service sector is growing aggressively and every other person in the industry was looking forward to the next successful year for industry but they were also skeptical about few new norms. The year started with the fuss about re-introducing input tax credit and then budget was the cherry on the cake. “We understand that Budget 2018 has no direct impact on the Food and Beverage Industry. On one hand we were expecting certain relaxations and incentives that would have been good for our industry, especially after GST being implemented in 2017. Nonetheless, we are very confident that the industry will thrive and we are expecting a growth in the industry. We are seeing a trend of new and innovative products being introduced in the industry which will always good for the industry as it promotes good competition. With GST being reduced to 5% on the customers, we are seeing people are willing to go out more often and experiment with their meals. We at Maria's Cookbook have confidently introduced Chimney Cakes as we understand that it was our perfect opportunity to introduce a whole new product in the market. We are very confident with its success in future in regard to the budget,” averts Nakul Vohra, Founder, Maria’s Cookbook.
Perfect Time for Expansion: In regard to 2018, consumer focussed market had settled their eyes on food service sector to increase the agricultural production, increments in farmer wages and reduction in taxes to not burn a hole in consumers’ pocket. “With the focus being driven towards creating smart cities, it is the perfect opportunity for various brands for their expansion. The incentives given to the farmers and focus on the agricultural sector will also impact food service sector in a positive manner. We will slowly see the effect being reflected on the F&B industry in coming years,” Vohra added.
Equilibrium in Demand & Supply: “Every dawn is a birth of new opportunity and I warmly welcome this year as another successful year for the hospitality sector. One of the happiest instances was when the government decided to allocate a corpus of Rs 10,000 crore to fisheries, animal husbandries and related infrastructure. It will surely benefit our business, due to high demand and lower supply of meat products, at times we have to purchase food items at a much higher price. I greatly wait for this bill to come into action so that the food industry can match up with the required supply of meat and offer even better to consumers,” shares, Ashish Bahukhandi, Founder, Dudleys.
Improved Agricultural Productivity: The year has pinned companies’ hopes as the industry wanted something that focuses on revival of consumer confidence especially in the rural markets. Rural wages have been trending down and growth has been stymied due to insufficient job creation and rapid growth in disposable income. The steps to improve agricultural productivity and better target subsidies to put more money in the hands of farmers were indeed. It will also strengthen the linkages between the farmers of rural India and consumers of urban India.