Taking a control on the food being supplied and to formulate the regulatory controls, FSSAI is bringing all the e-commerce and food-tech start-ups under the food safety policy.
With rising concern of safe food, e-commerce partners being the main partners to deliver the food to the door, FSSAI has recommended a strong policy to deliver fresh and healthy food.
Hence, in order to provide consumer with uniform level of protection through the availability of the option of making informed choices, FSSAI organised an open discussion with leading players and experts to deliver safe food to consumers.
A meeting with Food Business Operators (FBOs) in India, to discuss concerns of such food businesses and to formulate due regulatory controls on such businesses, was conducted on 18th March, 2016 at 11 AM at 4th floor conference room, FDA Bhawan FSSAI under the chairmanship of CEO, FSSAI. Here are few takeaways from the discussion:
1) Ensuring safe and wholesome food : After round of introduction, CEO, FSSAI explained the mandate of FSSAI, of ensuring safe and wholesome food to the citizen of India followed by a brief presentation on the need of formulating regulations for e-commerce food businesses. The officers at FSSAI clarified that not only manufacturing and processing but also packaging, storage, transportation, distribution, import of food, food services, catering services, sale of food or food ingredients has been defined as ‘Food Businesses’ in the FSS Act, 2006 and thus covered under the ambit of FSSAI. Therefore as per the definition, the e-commerce platforms, selling/buying food products as well as facilitating food related services would fail under the purview of FSSAI.
2) Seamless experience: The members also suggested that buying and selling of food products should be a seamless experience for consumers and that consumers should have access to the digital imprint of all the information of food products so as to make an informed choice. He further emphasized the need for safeguards on e-commerce in order to avert any food frauds.
3) Food Hygiene: CEO FSSAI also informed about the Project Clean Street Food recently initiated by FSSAI, to promote food hygiene among street food vendors. Drawing parallels, he stated that reaching out to all kinds of food businesses and getting all kinds of FBOs on board is imperative for evolution of food Authority as well as e-commerce food business. He further informed that the FSSAI license no, is a unique identity no for food businesses and displaying this no prominently on food business premise is mandated under law.
4) Food licensing: CEO, FSSAI opened the forum to seeking opinion of the players. It was informed by representatives of Amazon that they are not buying any food products, but offering storage for these products and has already taken license for the same. It was added by the representative from Snapdeal that, along with their entire consumer centres already licensed, they also ensured that they buy food products which are licensed, however, they expressed that displaying details of the FBOs on their websites would be a problem. Ish Anand, COO, Just Buy Live, expressed the ambiguity regarding obtaining a license for transportation of food. Saurabh Kocchar of foodpanda emphasized the need for deriving a common solution for enforcing compliance, as the different business models; exist in the food e-commerce sector.
5) Cashing on comsumers: On the issue of establishing liability in case of food grievance, it was stated by Amazon that their customer care services take up any grievance with the manufacturer and time limits for redressal are defined and refunds. If necessary are also given. It was supplemented by representatives of Snapdeal that it has been mandated to upload any consumer complaints on the Jago Grahak Portal. Further on their query of making available details of licensed FBOs on the FSSAI website, it was informed that all such information is already available in the public domain. It was suggested by Amazon that a list of repeated defaulters may be sent to FSSAI and necessary action could be taken against them. Nandita Shetty from Innerchef requested that a separate category for online marketers may be incorporated in the FLRS.
6) Way forward: Replying to all the issues raised, CEO, FSSAI, expressed that FSSAI and e-commerce FBOs have a common goal of maintaining the consumer trust and continuous work needs to be done to realise this goal. To dispense with the ambiguity regarding licensing, CEO, FSSAI informed that delivery and storage are components of food businesses and thus are covered under FSSAI ambit.
7) Food Safety App: CEO, FSSAI, informed the members about the FSSAI app on Food Safety which was launched recently for empowering consumers to make informed choices and to report any food safety concerns. He emphasized the need of building global confidence and realising the objective of safe and hygienic food to all. He encouraged the e-commerce FBOs to commit to the objective of Food Safety and promote the same by reaching out to other FBOs. He rationalised that adherence to regulations and guidelines would facilitate e-commerce food businesses through developing consumer trust. He encouraged the e-commerce players to promote the FSSAI app on their websites to generate consumer awareness on food safety.
CEO, FSSAI, expressed serious concern on misleading representation of food products in e-commerce platforms and directed for complete sanitization on misleading claims in e-commerce platforms. Finally, CEO, FSSAI, requested a draft regulation for e-commerce food businesses may be developed, in consultation with the representatives from all the e-commerce companies, taking into consideration the nuances of different e-commerce businesses. It is suggested that e-commerce division (FICCI) would be requested to coordinate this effort.
In an interview with Franchise India, Benu Sehgal talks about the growth of e-commerce, the current trend in the restaurant industry and the mall gastronomy.
What is the reason that real estate is moving towards e-commerce?
There are many factors; it is like the people are becoming more computer savvy these days and the mobile have become smarter. And this is because the world is changing constantly. The trend which is available 50 years back was no longer available now. The values are different; the platforms are different from the earlier period. It is not that the people have moved, the entire business has moved to another platform there by breaking the walls of the shop.
People sitting in Gurgaon have a peak of the menu which is offered by the restaurants in Far East Delhi. So, the world of the shop has been broken and everything is available at your doorstep, on your table without facing any problem.
Real estate is about two things, the experience and the convenience. When the convenience is backed up the experience take it forward and when the experience is backed up the convenience take it forward.
How can one locate the right combination of High street, Malls & Food courts?
It always depends on what kind of outlet you are planning. If you are planning small kiosks where the kitchen size is smaller and you are not giving the experience but the taste to the clients, then I would suggest that go for the food court where small different types of cuisine is present where the group can enjoy the different cuisines at the same table. But if you are looking at some high-end experience where you want to concentrate on the same cuisine and give a better experience to your client then you can either be at a mall or in the high street. In a mall as regarding timings and charges which are very high but it depends where you have positioned your restaurant. If your restaurant is casual dining a mall is more appropriate but if your restaurant is fine-dining, I would recommend high street.
How do non-traditional locations for food service, such as hospitals, cinemas make decisions on restaurant tenancies?
It has become the necessity. When retentions happen, F&B become an integral part of planning. The hospitals become like malls. I no longer call a hospital a hospital now; it is mall which is meant for treatment of ailment. Food is an integral part; you cannot retain anybody if you cannot retain food. Most of the hospitals have certain restaurants because patients and their near ones spend the entire day on the facility. People from Middle East, Africa and the Far East come to India for treatment. So, the hospitals change their formats; they are no longer a traditional hospital but they are also looking at the convenience of the people who come from far-off places.
Talking about cinemas, when you plan a day out, distances and traffic have become so intense that when you plan a movie it has to be at a place where you can shop and eat. Wherever there is a good movie with good food, you move plan.
How do landlords view Restaurant tenants individually?
A property demands certain types of clientele. If it is a mall then the certain percentage of mall has to be food and beverage and some percentage has to be for fashion. When I am talking about mall developer, I have to allocate certain area to food and beverage because I cannot do without it and I would develop that property with restaurant in mind. I would have planned a space for kitchen, I would have a place for inlet and outlet of water; I would have place for air washer and a constant supply for fresh vegetables and fruits but this is keeping the mall aspect in mind.
Explain something about mall gastronomy?
As a developer I would like to have a small eatery plant at every 10 shops. Ideal situation would be when all the stations have a small coffee shop or a small QSR. Impulse food should be there at every 200 feet. Food not only gives you good revenue but also adds to the flavour of the mall and brings in stickiness. Not only does the area become alive but you also get a good aroma when you visit the mall that make people nibble at the food.
What is the current scenario of retail in India?
India has a very large population of young and as long as there would be people saying ‘I want & I want’, retail will be there. Only thing is one should identify the current trend of the market. The market is low that doesn’t mean you’ll die, as long as this population is there, I want, I desire will be there. The thing is you should know where to put your money and identify which business you should enter.
E-commerce is having great business over retail. Reason
The world is changing and I think that every retailer should become computer savvy and put their product online. You should identify the need and move forward. E-commerce would never take over retail but you should meet the demand of time.
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