What is the biggest marketing tool for a restaurant? Definitely not the IoTs and the digital marketing strategies and ads but the power of word of mouth. As pity as it may sound, word-of-mouth marketing has the ability to surpass all the heavy jargons that the new age marketers may use to promote a restaurant business. Technically, word-of-mouth is the oldest and the most effective form of restaurant marketing that we can think of.
The fastest and most effective marketing technique is one where one investment (one customer) can yield more outputs (more customers). According to a report, 92 percent of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family. It’s estimated that 1,000 pleased customers could generate 500,000 additional customers in a restaurant.
Let’s talk maths. Building brand loyalty assures you that it will increase your customer retention rate. According to the National law review, Cost of acquiring a new customer = five (Cost of retaining a customer). And Bain & Co estimate that a five percent increase in customer retention can boost a company’s profitability by 75 percent. The most important aspect of this is that positive word of mouth marketing will land you new customers.
The traditional four Ps of marketing do not work for word of mouth marketing for restaurants, and getting people talking about your restaurant is not as easy as it seems. However, smart restaurants know how to make people talk about their restaurant and leverage it as a potential restaurant marketing strategy.
Taking cues from Swarna Daga, founder of Social Neeti who has helped many restaurant brands to get the much-needed traction, she suggests following three E's of word of mouth marketing - Engage, Equip, Empower.
Engage
Give your fans the gift of you. Engage with them. Listen to what they are telling you. Be part of the conversation about your brand. Be a presence in your fans’ lives. In simple terms, let your customer base know that their opinions matter, get to know what they are looking for from your restaurant and menu, and make the conversation a two-way street.
Equip
Give them reasons to talk. It can be amazing products, great service, insider knowledge, social elevation, incredible stories, unbelievable facts or even funny disclosures. Equipping customers with reasons to start talking should be the core mission of your restaurant.
Empower
Give consumers different ways to talk and share. Let them know that they are important to you and that sharing their opinions is important to you. In order to conjure up the best word of mouth marketing for your restaurant, you’ll need to provide them with different avenues to share their opinions.
Focus on relentless customer and product
For any food brand, relentless customer focus is a tenet they cannot do without. The founder of Zomos, Shouvik Dhar informed that they have processes in place that enable them to listen to the customers better to serve them better. “This helps us prioritize what offerings to come up with, enhance the ones that see similar complaints and remove ones that our customers don't like. Over time, this proves to be the most powerful tool to increase word of mouth,” he added.
In a food business, every order is a moment of truth. Very few things run on autopilot. Having a back-end process to ensure that the same quality products are enjoyed by customers across geographies is very essential. Dhar was happy to inform that his team has cracked this code to have the right mix of automation and stringent process to ensure that the products are of the same superior quality every day across every location.
Positive word of mouth is the after-effect sales emotion
Gaining positive word of mouth is the goal for every restaurant business which means the restaurants should deliver what they promise and never under-deliver and over-promise to meet the satisfactory level. “Our first few important techniques to gain a positive piece of mouth is identifying our top customers and creating a unique experience for them by creating a unique product after detailed market research. Next, we move to create an exceptional customer experience by connecting to the needs of the customer by training and grooming our staff,” Azra Golam, DoSM of Aminia commented.
Golam further shared that one should take every review/feedback in account and work on the negative review to understand the loophole to make our customers feel that their opinion matters and it is also an important way to boost business since more than 52 percent of the customers order after going through the reviews.
Provide avenues for word of mouth marketing
Give customers different reasons to offer feedback. Have competitions where customers can suggest a new dish they’d like the restaurant to serve. Offer customers who give feedback on the restaurant a lucky draw for a meal voucher or another suitable reward. Give them different options in how they give their feedback. Prompt them online to subscribe to a weekly email listing any promotions and other news.
When customers are empowered with knowledge and incentives for reviews, they are more likely to participate. In addition, they will be more willing to spread the news about the establishment. If you want to get people to offer you the word of mouth marketing, offer them a reward.
The Nielsen study concluded that only 33 percent of restaurants surveyed are actively seeking feedback. This means that they are not exploiting the potential for word-of-mouth marketing. Management marketing meetings are focused on conventional marketing strategies.
These are important tools. However, they are not the only tools at the restaurant’s disposal. Word of mouth marketing is growing in importance. Restaurants that use it will soon see that it eclipses most other mechanisms. Word of mouth marketing is an organic and long-lasting way to get the brand talking and help more than 2x conversion ratio of customers compared to online marketing strategies.
Garnering customer loyalty is the only way to influence word-of-mouth tendencies. With happy customers and appreciative business owners comes the type of marketing that you can’t pay for. The secrets of word-of-mouth marketing (WOMM) aren’t secrets at all.
The world of food has always been more than just sustenance. I have seen it evolve, adapting to changing times—an unfolding narrative of cultures, ambitions, and human connection. As the landscape of dining transforms, from bustling market stalls to opulent hotel dining rooms and the invisible networks of cloud kitchens, one truth remains: food is never just food. It is an experience, a memory, a moment shared.
Over the years, I have watched those who dare to venture into this space begin with a singular focus—the quality of what is placed on the plate. But time has a way of revealing deeper truths. Success is not just about recipes or ingredients; it is woven into something more intangible. It lies in the precision of execution, the warmth of service, the courage to innovate, and the resilience to withstand storms.
Whether in the grand corridors of luxury hotels, the intimate corners of world-class restaurants, or the unseen yet powerful networks of cloud kitchens, I have come to recognize that the true architects of food businesses build on these unseen foundations. Here are five essential qualities that, time and again, I have seen shape the most remarkable food ventures—stories from India and across the globe.
It’s about Detailing
Excellence in the food business is often found in the details. From the crispness of a linen napkin to the precise plating of a dish, every tiny element contributes to the guest experience. A lack of attention to detail can mean the difference between a memorable meal and an average one. In high-end restaurants and hospitality chains, precision is not just preferred—it’s a non-negotiable standard.
Attention to detail in food businesses isn’t about perfection for the sake of perfection; it’s about making every customer feel valued. It signals a deep respect for the craft, a commitment to quality, and an unyielding desire to offer nothing but the best. When a restaurant or cloud kitchen masters the small things, it builds an invisible thread of trust with its patrons—one that turns a single visit into a lifelong relationship.
Service at the Top
The food industry, at its core, is a service-driven business. The intent to serve must go beyond transactions—it should be about making people feel welcomed, comforted, and cared for. The best food businesses don’t just focus on feeding people; they focus on nurturing them.
Eleven Madison Park, one of the most celebrated restaurants in the world, has redefined hospitality through a philosophy of deep personalization and generosity. Under the leadership of Chef Daniel Humm, the restaurant doesn’t just provide a fine dining experience—it creates moments that leave an indelible mark on guests. The team at Eleven Madison Park goes to great lengths to make every diner feel special, whether it’s crafting a dish inspired by a guest’s childhood memory or sending them home with a carefully selected parting gift that resonates with their experience.
Experience Drive Success
A food business with a strong intent to serve naturally creates an atmosphere of warmth and loyalty. Whether it’s a Michelin-starred fine dining establishment or a small cloud kitchen, the way customers feel about their experience will define its long-term success.
Innovation doesn’t always mean reinventing the wheel; sometimes, it’s about recognizing opportunities that others overlook. Whether through menu engineering, technology integration, or unique branding, an innovative mindset ensures that a food business stays relevant and competitive. El Bulli proved that the most groundbreaking ideas often come from a willingness to question everything—and that true innovation is about challenging the status quo.
El Bulli, the legendary restaurant led by Chef Ferran Adrià, revolutionized modern gastronomy through relentless innovation. More than just a restaurant, El Bulli became a laboratory of culinary experimentation, redefining what food could be. Adrià and his team closed the restaurant for six months each year to focus solely on research and development, pushing the boundaries of taste, texture, and presentation.
Resilience is Important
Resilience in the food business is about adapting without losing identity. Whether it’s dealing with supply chain disruptions, pandemic-related shutdowns, or shifting culinary trends, a strong food entrepreneur must possess the grit to rebuild, rethink, and reemerge stronger. Rebel Foods proved that resilience is not just about survival—it’s about thriving through reinvention.
Staff is the Backbone
A food business isn’t just about food—it’s about people. Those that make a lasting impact are the ones that integrate themselves into the community they serve. When customers feel a personal connection with a brand, they become lifelong advocates. Building a community connection doesn’t necessarily mean longevity alone; it’s about staying authentic to your mission and ensuring that customers feel like they’re part of something bigger. Whether it’s through local sourcing, sustainability efforts, or cultural storytelling, businesses that prioritize people over profits naturally cultivate deep loyalty.
The Indian Coffee House is not just a restaurant chain; it is a movement. Established in the early 20th century and later turned into a worker-owned cooperative, Indian Coffee House has been a silent witness to India’s changing social, cultural, and political landscape. What sets it apart is not just its affordable food or simple ambiance, but its deep-rooted connection with the community.
Involvement of Senses
A great meal may delight the senses, but a truly remarkable food business transcends the act of dining. It orchestrates moments that move beyond taste—moments that touch the heart, evoke nostalgia, and create bonds that last a lifetime. It is not just about the technical precision of a perfectly seared steak or the symmetry of a plated dessert; it is about the silent artistry of an experience carefully crafted, where every interaction leaves an imprint on the guest’s memory.
The precision of detail ensures excellence, the intent to serve builds warmth, innovation drives progress, resilience keeps the business standing, and community connection fosters belonging. The true masters of this industry understand that food is only the medium—the real magic lies in the stories it tells and the emotions it stirs.
What separates the truly exceptional from the ordinary is not found in a recipe but in a philosophy—a deep-rooted belief that hospitality is not a service, but a calling. A well-run food business does not merely satisfy hunger; it leaves behind an echo, a lasting presence in the hearts of those it serves. So, as you step into the world of food entrepreneurship, ask yourself: Are you creating meals, or are you creating meaning? Because the greatest food businesses do not just feed the body—they nourish the soul, one experience at a time.
In the dynamic world of food and beverage business, especially restaurant business where taste matters the most and the experience lasts longer, the role of emotional intelligence cannot be over ruled.
Today, restaurants are not just limited to serving a good food and delivering an everlasting experience, it also involves a deeper connection, empathy and an understanding of what they require. And, that’s where Emotional Intelligence enters into the picture by transforming a good service into a wow! Experience.
What is Emotional Intelligence?
Emotional intelligence refers to the collection and analysis of data on food consumption, preferences, and trends to gain insights into consumer behavior and the food market as a whole.
It encompasses understanding the journey of food from farm to fork, including production methods, supply chain logistics, and sustainability practices. By leveraging technology such as big data analytics and artificial intelligence, Emotional intelligence helps businesses make informed decisions about product development, marketing strategies, and inventory management, ensuring that consumer needs are met efficiently and effectively.
Creating a Personalised Touch
From a warm welcome at the door to the personalised touches throughout dining, every interaction is packed with warmth, attention to details, leaves guest not just feel satisfied but valued in a long run.
“With Emotional intelligence, restaurants can create customized menus based on customer preferences. For instance, by analyzing data from online ordering platforms or loyalty programs, they can identify each customer’s favorite dishes and make menu recommendations tailored to their tastes,” shared Chef Dheeraj Mathur, Cluster Executive Chef, Radisson Blu, Kaushambi, Delhi NCR.
Commenting on the same, Gopichand Cherukuri, Co-Founder, ICB, pointed that, “For centuries food or beverage has always been an emotional need as much as they are functional need. So it's quite important for brands to understand the customer's mood, preferences and what enables them to make certain choices.”
He also mentioned that a recent survey in Bangalore shared that more than 65% of the customers prefer personalization. “We are not just catering to their functional needs, emotional needs are also equally important for them to decide on where to dine, what to consume. So, emotional intelligence plays a vital role, mapped to the data. And the best part is, AI is a great help in this regard. And ICB is working towards this development to delight our customer base,” he further added.
Sharing a similar insight, Aji Nair, CEO, Mirah Hospitality shared, “Prioritising guest preferences is both a science and an art. It is about knowing what the guest wants—even before they do. Restaurants today blend data analysis with a human touch to anticipate preferences. By tracking dining patterns, guest feedback, and emerging food trends, we create menus that resonate with our customers. But beyond data, it’s the art of reading the room—understanding a guest’s body language, mood, or subtle cues—that allows us to personalize their dining experience. The right mix of insights and intuition helps us craft meals that feel both thoughtful and memorable."
Helping Menu Design
Staying ahead of emerging trends, fluctuating consumer needs, and tastes is essential for success. One of the crucial aspects of adapting to this is effective menu planning, which involves creating innovative, appetizing, and visually appealing dishes that cater to a diverse clientele.
“Our commitment to sensory-driven innovation—whether through umami-rich ingredients, natural sweeteners, or immersive tableside finishes - ensures that every dish tells a story and every meal becomes an experience to remember. In a city where food trends evolve rapidly, we stay attuned to local tastes and global influences, creating meaningful connections through food that touches the heart as much as it delights the palate,” pointed Gagandeep Singh Sawhney, Executive Chef & Culinary Centre of Excellence Cuisine Specialist, MEIA Region at Shangri-La Group.
By using the power of real-time analytics, data-driven insights, and artificial intelligence, Emotional intelligence is transforming the way culinary professionals approach menu planning.
"The dining experience extends beyond food—it’s about forging emotional connections. At Hitchki, emotional intelligence is integral to menu development, allowing us to craft offerings that resonate deeply with our guests. By decoding moods, nostalgia triggers, and cultural influences, we design menus that evoke comfort, excitement, and curiosity. Whether it’s curating seasonal specials that spark memories or reinventing flavors to align with evolving preferences, our approach ensures every dish feels both personal and refreshingly innovative,” added Nair.
When it comes to creating, growing and sustaining a successful restaurant business in this era, brands will have to tap AI to drive expansion, success and establish strong leadership to survive difficult times.
Over the last 2-3 years, AI has not just helped enhance the customer experience but has also reduced operational costs for some of the top global chains that have adopted AI and Emotional Intelligence early into their business.
“AI over the recent few months has significantly helped GOPIZZA to reduce its operational costs by helping us with innovative solutions across departments. From tracking inventory for timely shipment, automated POS systems for taking orders and understanding customer order pattern, AI driven GOVEN and GOBOT which helped us with training and SOPs to ensure consistent taste of our pizzas, effective manpower shift planning so that our team is not overburdened to accurate sales forecasting for reducing food wastage and efficient use of resources,” shared Mahesh Reddy, CEO, GoPizza India by adding that AI is playing a very important role in the restaurant industry today.
Not only this, restaurants are heavily investing in technology and hiring people to look after the same. And, these teams are adopting tools rooted in artificial intelligence to better control their operating costs, undertaking initiatives that will continue to pay benefits no matter how economic conditions unfold.
From automating work, to helping in understanding the customer mind better and driving growth, AI is helping saving the costs associated with the inventories and labor.
“AI has unlimited potential to automate tasks across industries, and while we’re in the early stages of its integration, its impact is already evident. The computing power exists, but customized applications are still evolving. At Burger Singh, AI is enhancing efficiency and cutting costs,” pointed Rahul Seth, Co-founder, Burger Singh.
One major development in AI is the emotional intelligence via chatbots and voicebots that manages customer query by eliminating the extra workforce that earlier use to manage and look after the data that came from the customers.
“Chatbots and voicebots manage customer queries and franchise leads, reducing manual effort. AI-driven analytics optimize call-center performance, improving conversions and sales. Additionally, AI streamlines operations and enables smarter, data-backed decisions,” added Seth by mentioning that though the full-scale automation is still ahead, but AI is already transforming the food industry, driving productivity and cost efficiency.
Similarly, Blue Tokai has partnered with Umwelt.AI’s intelligent platform for deeper workforce insights, enabling timely actions based on employee feedback. By streamlining HR processes, measuring engagement more effectively, and personalizing employee interactions, the collaboration aligns with Blue Tokai’s commitment to building a high-performance, people-first work environment.
“Our vision has always been to create a workplace that fosters growth, inclusivity, and well-being. Partnering with Umwelt.AI gives us the opportunity to take a much more proactive and tech-driven approach to employee experience, ensuring our teams really feel valued and empowered. This will reflect our commitment to innovation not only in coffee but also in our workplace culture,” said Sujit Bose, Chief Human Resources Officer at Blue Tokai.
And, hence, restaurant operators should view today’s inflationary habitat as an opportunity to pause and take a closer look at their operating costs to identify areas to reduce expenditure. Meanwhile, restaurant that will adopt AI technology to reduce their operational costs rather than investing heavily will definitely grow and position themselves as one of the top brands getting loyal and regular customers.
In today’s world, social media is the game-changer for restaurants aiming to build their reputation. What once was just a place to share food photos has evolved into a powerful marketing engine that can propel restaurants into the spotlight—or sink them with a single bad review. It's not just about pretty pictures anymore; it’s about managing the buzz and ensuring a loyal customer base. And trust us, Instagram reels and influencer shout-outs can either bring floods of customers or tarnish your brand overnight.
Let’s face it: in the age of digital media, every guest’s experience is public property. A single negative comment can do more damage than you can imagine. On the flip side, a glowing review can drive more business than any ad campaign. Reputation is everything, and how you manage it can make or break your restaurant. This is where online reputation management becomes your secret weapon for success.
The Power of Social Media in Shaping Restaurant Reputations
1. Visibility & Reach: Social media is a megaphone for your restaurant, letting you amplify your presence and engage with customers worldwide.
2. Customer Interaction: It’s no longer just a platform for posting updates. It’s a real-time conversation with your patrons, building trust and loyalty.
3. Influence on Perception: While positive posts can elevate your brand, negative reviews can spread like wildfire. Managing this delicate balance is essential.
Pro Tips for Managing Online Reviews
1. Constant Vigilance: Keep an eye on review sites like Google, Yelp, Zomato, and TripAdvisor—don’t miss a single mention!
2. Swift Responses: Respond to both good and bad reviews quickly. Show customers you care, and they’ll come back for more.
3. Encourage Positive Reviews: Prompt happy customers to share their experiences. A flood of positive reviews can bury any negative ones.
Sidney Dcunha, Director of Food and Beverage & Culinary at Sofitel Mumbai BKC, emphasizes, “Effective management ensures that social media becomes an ally in sustaining and growing our restaurant’s reputation. With the rise of digital reservations, online payments, and loyalty programs, safeguarding customer data is a non-negotiable priority.”
Tackling Negative Criticism Like A Pro
“We take our guests' privacy and security extremely seriously. We respect our guests' privacy at all times and work to ensure they feel safe in their interactions with us,” says Christina Roach, Director for Radisson Blu Bengaluru Outer Ring Road. While negative reviews can be disheartening, they’re an opportunity to improve your game. Address criticism professionally, and you'll turn an upset guest into a loyal customer.
Shahrom Oshtori, Co-founder of Sixteen33, agrees: “Negative feedback can spread quickly, making reputation management crucial. We assess it based on how we respond—whether we take corrective actions or offer a better experience.”
How to Maintain Data Privacy and Keep Your Restaurant Secure
1. Adopt Secure Technologies: Always use encrypted payment gateways and secure reservation systems to protect customer data.
2. Train Your Staff: Make sure everyone is aware of how to handle sensitive information responsibly.
3. Be Transparent: Clearly communicate your data handling policies to customers. Compliance with laws like GDPR is a must.
Why Marketing is a Game-Changer for Your Restaurant
1. Increased Awareness: Partnering with influencers expands your reach to untapped audiences and builds buzz around your brand.
2. Credibility & Trust: When influencers rave about your restaurant, their followers trust them—and your restaurant reaps the benefits.
3. Engagement Boost: Influencer posts aren’t just eye-catching—they drive foot traffic and boost sales.
Dharmendra, COO of Gigu Hospitality, explains, “Increased Awareness, Credibility, and all these factors play an important role in developing the business.”
Navigating Influencer Marketing Challenges
1. Finding the Right Fit: Not all influencers will align with your restaurant's brand. Choose wisely to avoid mismatched messaging.
2. Measuring ROI: Tracking the direct impact of influencer campaigns on sales and foot traffic can be tricky.
3. Managing Expectations: Ensure that influencers represent your restaurant in a way that matches your image and values.
Overcoming Influencer Marketing Hurdles
1. Do Your Research: Pick influencers whose audiences align with your target demographic.
2. Set Clear Expectations: Outline deliverables and goals upfront to avoid misunderstandings.
3. Track Success: Use tracking tools and discount codes to measure the ROI of influencer campaigns effectively.
In the digital age, social media and influencer marketing are not just trends—they are crucial tools for building a loyal customer base and driving profits. By actively engaging with your audience and addressing feedback constructively, you can establish a reputation that not only attracts customers but keeps them coming back for more.
With the evolving consumer demands, the quick service restaurant (QSR) sector is going through a digital transformation. Drive-through technology, mobile ordering, contactless payment, data analytics and business intelligence, the impact of artificial intelligence, and many other strategies are some of the ways QSRs are adjusting to this change. Restaurants may retain their patrons and keep them satisfied by implementing customer loyalty programs. There are various points to look for in this segment. Here are the key points in this segment:
What’s Trending
“Every month and every day, we see a change in the trend. Now, the change in the trend, it's not happening because of what we are serving. It's because the customers are aware of what's happening across the globe. With today's technology, they know what is trending. What’s new fashion, and they want to get attached to those brands according to that,” shared Mahesh Reddy, CEO, GOPIZZA India.
Focusing on the digital era, Neelam Singh, Founder & CEO, The Burger Company said, “It is about survival, especially when it comes to traditional QSRs. More than 65% of population is under 35 years of age. They are more exposed to the technology. And it's all about following the trends and who is ahead and who is creating trends, which is going viral.”
It is also believed that the usage of technologies through our mobile phones, various apps, advent of AI is has all great impact on the segment and its customers. It is all about who is keeping up with the updated technology. And as QSRs, the brand also need to be available for their customers, because ultimately, they are the ones who are driving the whole business, giving brands the money to survive.
“So in this digital era, we have to respect their choice of convenience. Because when we see all the aggregators’ platforms, all they are doing is bringing convenience to the customers. And we as food brands, especially QSRs, we need to be available at all the touch points wherever they would like to find us, be it on aggregator apps, websites, or QR codes on the table. So it is not only about the delivery, it is also about how they want to place their order,” added Singh.
Building a Multi-Channel Strategy
Also, if we look at numbers and see, most of the successful chains and brands adopt multi-channel strategy to grow and expand. Customers today want their favourite brand to have both online as well as offline presence.
“I think it is extremely prudent to have a multi-channel strategy now. QSRs and retail and dine-in were always a proven model. If we rewind 10 years from now, Cloud Kitchen was still starting up, and people had their doubts, how this Cloud Kitchen model would pan out. In those times, people would start for the sake of low rentals, or probably lesser compliance needs, etc. Today, Cloud Kitchens cannot be ignored. Therefore, we're already seeing a lot of QSRs moving into delivery more and more seriously. In fact, a lot of five-star hotels, etc. also have started their own dedicated, you know, delivery model,” added Varun Madan, CEO & Founder, Salad Days.
Commenting on the same, Reddy pointed, “Gopizza operates in different formats and models. And to scale 1000 outlets, which we want to do it in next two, three years, we can operate in 100 square feet, 500 square feet, 1000 square feet, 2000 square feet. Presently, we are there at all this square feet level dining outlets, or takeout outlets. Even a cloud kitchen, but which may not be there with the signage in the front of the customer with a less capex, because only the capex, not the interior cost will be there. So if I need to open 1000 outlets, of course, I will be getting into the cloud kitchen format. And I think to touch 100 outlets in next two months, 10 outlets are going to be cloud kitchen.”
At a time, when food delivery business is getting hotter day by day, two major players, Zomato and Swiggy are continuously experimenting with something new, making everyone to look at them and grab the opportunity.
Few days back, a customer at Zomato, Param Sharma shared a screenshot of a “Flash Sale” pop-up on his app. Here’s how it works: if someone cancels their order, it goes up for grabs in a flash sale—so you can swoop in and claim a freshly prepared, sealed meal at half the price! In Param’s case, that meant a meal originally priced at Rs. 260 was offered at just Rs. 130, with delivery promised in only 5 minutes.
And, looking at this as an opportunity and to also contribute the ecosystem by saving the food being wasted, Deepinder Goyal, Founder & CEO, Zomato on Monday announced on Linkedin that they are launching the ‘Food Rescue’ feature on the Zomato app. “We don't encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage,” shared Goyal in his post by adding that inspite of stringent policies, and a no-refund policy for cancellations, more than 4 lac perfectly good orders get cancelled on Zomato, per month, for various reasons by customers.
According to him, the top concern for the restaurant industry, and even the customers who cancel these orders, is to somehow save the food from going to waste.
“Today, we are introducing a new feature (being scaled as we speak) – Food Rescue!,” he added by pointing that the canceled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes.
“The canceled order will pop up on the app for customers within a 3 km radius of the delivery partner carrying the order,” he further pointed.
Food Rescue: An initiative to minimize food wastage
Every month, around 4 lakh perfectly good orders on their way to the customers are canceled on Zomato. It’s a serious challenge and we have been working on possible solutions to reduce this food wastage. Introducing Food Rescue! Canceled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes.
How does it work for our restaurant partners?
We are heartened to see that 99.9% of our restaurant partners want to be a part of this initiative. Here’s how it will work for them:
• Restaurant partners will continue to receive compensation for the original canceled order, plus a portion of the amount paid by the new customer if the order is claimed.
• Restaurant partners can see Food Rescue orders in Order history section on the Restaurant Partner app and in their Weekly Payout statement, in the ‘Order Level’ tab
• If, for any reason, restaurant partners don’t wish to participate, they can instantly opt out via their Restaurant partner app and dashboard.
How does it work for our delivery partners?
Delivery partners will be compensated fully for the entire trip, from the initial pickup to the final drop-off at the new customer’s location.
Amazing food is only the start in the fiercely competitive food and beverage (F&B) sector of today. Restaurants have to make an investment in their logo, ambiance, and brand colors if they want to provide a memorable eating experience. Together, these components influence consumer impressions, improve the whole experience, and create enduring bonds with the brand.
The Significance of Brand Colors
Brand colors affect behavior and elicit particular feelings in addition to being merely aesthetic choices. For example, fast-food chains frequently utilize bright colors like red and yellow to pique customers' appetites and energy levels, whereas fine dining venues may choose to communicate luxury with deep blues or golds. When a restaurant's color scheme is appropriate and consistent throughout all brand touchpoints, it strengthens its identity and increases its instant recognition. The psychology of color is a potent weapon for influencing dining decisions and building an emotional bond with the audience since it is fundamental to how consumers view and engage with the business.
Ambience: Establishing the Tone
In order to define the dining experience, ambience is essential. It covers everything, including furniture, design, even music and lighting. Whether it's the loud, dynamic mood of a burger joint or the cozy, romantic setting of an Italian restaurant, a well-designed atmosphere impacts how customers enjoy the cuisine. In order to provide a seamless and pleasurable dining experience, the ambience should complement the restaurant's concept and target demographic. Bright colors and lively music, on the other hand, would be appropriate for a hip café, while soft lighting and comfortable seats might be perfect for an upscale eating experience. A welcoming atmosphere can entice clients to remain longer, place larger orders, and visit again in the future.
The Brand's Visual Identity: The Logo
The face of a brand is its logo, which is frequently the first thing that consumers see. It need to be uncomplicated, unique, and representative of the character of the eatery. Strong logos act as a visual reminder of satisfying dining experiences, which promotes brand loyalty. It must be adaptable, functioning effectively across a variety of media and platforms, including menus and internet marketing. Investing in expert design is essential since a well-designed logo can come to represent quality and reliability. Along with the brand, the logo should alter to keep it appealing and current with shifting consumer tastes and trends.
The Value of Comprehensive Branding
To stand out in the F&B market, a brand identity that is consistent is necessary. Restaurants can stand out, make lasting impressions, and entice repeat business by carefully combining their brand colors, atmosphere, and logo. Serving delicious cuisine is only one aspect of holistic branding; another is creating an atmosphere that draws clients in and encourages them to come back time and time again. Word-of-mouth marketing is another benefit of having a strong brand identification. As patrons tell their friends and family about their experiences, the restaurant's reputation and reach grow even more.
Why Food Isn't Sufficient on Its Own
Though they are very important, food quality and flavor are only a small component of the whole eating experience. Customers of today look for experiences that appeal to all of their senses rather than simply a simple meal. Herein lies the significance of branding. Customers can have a deeper connection to a business with the correct color scheme, ambiance, and logo, which can elevate an ordinary dinner to an amazing experience. The goal is to create a setting where the cuisine, surroundings, and brand identity all complement one another to offer a complete and unforgettable dining experience.
The eating experience is completed with the brand colors, atmosphere, and strong logo, even though the food is the main attraction. Together, these components forge a distinctive character that draws clients and guarantees they leave with favorable perceptions, enabling the business to prosper in a crowded market. Making an emotional connection with consumers through branding investments fosters client loyalty, repeat business, and long-term success. It's not just about looks. The future of dining is about how the entire experience connects with the diners, not simply what's on the plate.
Technology plays an important role in our lives. It has not only changed the taste buds, but also how we have been ordering food at home. From the online delivery numbers in just single digit, today most of the restaurants are depended on 20-25 per cent of the business done online. And, the idea of omni-channel shopping emerged, where each digital touchpoint functions as a stand-alone business. The connective power of social media in various platforms unified the chef population and influencers as they share the restaurant reviews, dining experiences and much more. Here are the key points to note down:
Leveraging the unified commerce platform:
“Unified Commerce is leveraging all channels of revenue means right from e-Commerce, which includes the merchandise sales, to aggregators, which become celebrity sales, walk-in sales, which we have leveraged through application-based, tech-enabled takeaway, application-based process. And other thing to focus on is supply chain because we face the challenge of having small units across the city or country and then it needs to be optimized using technology that the distribution looks more of like an FMCG in the back end than like an F&B considering the space constraints we have in the front end. So what we have done is we have combined all of these factors together to one particular technology solution at the outlet,” shared Abhijeet Anand, Founder & CEO, abCoffee that started from an online space, has now entered by opening its kiosk cafes.
Increasing Efficiency
“At Burgrill, we have understood that we have to coexist with the third party aggregators for that we have Zomato and Swiggy. Having a better flow in the kitchen, that any person who is actually working is not moving anything other than two to three feet and that he is not crushing into each other while they are working together. And then we are also doing automated machineries. We need to create a lot of checkpoints. There were a lot of missing items with the deliveries. We have created stickers which have QR codes wherein one can scan those QR codes and it will automatically mark the Mark FoodReady, which is a compliance of Zomato and Swiggy. The customer service is all about providing consistent food. That's the only thing that we do to make sure that our customers go happy. We have printing labels so that the QR code tells us that this is done or not,” added Shreh Madan, Co-Founder, CMO, Burgrill that has become one of the favourite burger chain in the Delhi-NCR region.
Focusing on Consistency by using Technology
“In the kitchen, we work on a lot of machinery. To automate the processes in the kitchen, we have certain companies that we work with so that we can increase the quality of the product but also reduce the cooking time so that the same chef has to work for a lesser amount of time on the range but he's able to give out the same quality, he's able to give out the same consistency every day. Technology only goes so far in terms of creating consistency. It can create efficiency but it can never improve the taste or the consistency of the product. It can fasten the process. And it is a very thin line between having a consistent product and being extremely efficient,” pointed Mohit Dang, Co-Founder, CurryNama by Seven Seas.
The Online to Offline Transition
Highlighting his views on seamless transitions, Amit Sarda, Chief Operating Officer, Prologic First said, “Implementing an omni-channel strategy, starting from ordering the food till we get the food from mobile to website to the point of sale system that are installed in the restaurants. The promotions that you see online are different than the promotions which are given to the guests when they come in for dine-in restaurants. There has to be some parity around there and if we can connect all the systems together and if we can have a price parity and can get same kind of offers for dine-in it can definitely connect the systems together and restaurants can benefit having guests over to their restaurants instead of ordering food online. There is a personalization of guest data that is available from online channels.”
Focusing on the restaurant point of view from a coffee on the go, Abhijeet added, “The product has to be constant. When a consumer first walks into our store the first thing that we promise to them is great coffee, quality, consistent and then fast service because there is a grab and go coffee chain.”
Blockchain technology has become increasingly vital in today’s era, offering a robust tracking methodology and the ability to provide proof of authenticity for goods. Consumers can trace the journey of their products from farm to table with unprecedented accuracy. Unlike traditional paper ledgers, blockchain acts as a digital ledger, reducing human error and mitigating risks of fraud in both the quality and quantity of food. It enhances transparency and efficiency within the food supply chain, granting consumers access to comprehensive information about the origin and journey of their food.
Moreover, blockchain improves food safety by facilitating the traceability of contaminated products and reduces food waste by ensuring that food is consumed before spoiling. It also strengthens communication between consumers and the supply chain, leading to better service quality and customer satisfaction.
Revolution of Blockchain and Holografs
“Blockchain is revolutionizing the food supply chain and Holografs is at the forefront of this transformation. Traditional supply chains are riddled with inefficiencies, where tracing the origin and journey of food products is time-consuming and prone to error. Holografs, a blockchain-based solution, solves this by offering an immutable, decentralized ledger that tracks every step of the process. From the farm to the consumer, every movement is logged with precision, ensuring food safety, authenticity, and transparency,’’ said Akshay Dhoot, Co-founder, Digilion Technologies who added that Holografs integrates advanced tracking technologies like QR codes, RFID tags, and microdots, providing real-time updates on the status of food products.
This visibility helps companies monitor storage conditions, transportation, and handling, drastically reducing risks of contamination, spoilage, and counterfeiting. By automating compliance reporting and simplifying the verification process, Holografs ensures that food companies can meet regulatory standards more efficiently while offering consumers peace of mind. However, a challenge persists.
Explaining about his views, Saurabh Doshi, Cofounder of Virtualness, said, “Blockchain technology is poised to revolutionize the food supply chain by addressing critical barriers such as transparency, traceability, and food safety. As consumers increasingly demand authentic data about their food sources, blockchain offers a unique solution by creating an immutable record of every transaction from farm to table. This not only empowers consumers to verify the integrity of their food but also enhances accountability among all stakeholders involved - from farmers to retailers leading to ethical sourcing practices and trusted sustainability commitments.”
Various Barriers
The complexity of implementing blockchain is fragmented, global food supply chains, with multiple stakeholders across regions, is a significant barrier. Costs of integration and concerns about data security further complicate adoption. Additionally, scalability remains a concern, as large-scale food supply chains generate significant transaction volumes that blockchain networks need to manage efficiently.
Despite the many barriers, Holografs is helping reshape food safety and traceability. Its blockchain-based system can foster consumer trust and improve accountability. As the technology evolves, trends point toward greater adoption of blockchain solutions like Holografs across the food industry is growing.
Food Safety & Traceability
“Food safety and traceability require a high degree of trust and timeliness. At Virtualness, we recognize the potential of our platform to enhance integrity through robust and dynamic verification capabilities. Our technology enables organizations to establish trust via smart contracts which can be validated by a click of a button,” commented Doshi who added that our dynamic certificates can change labels to reflect the expiry of perishable items thus ensuring every product can be trusted at a glance.
Industry-wide collaboration and deep integration of blockchain with existing systems are paramount. With this in mind, Virtualness offers enterprise grade workflow integration which can be easily deep linked to any system, streamlining operations and automating processes.
By integrating generative AI with blockchain, we can automate compliance checks and streamline operations, leading to fair trade and reducing costs.
Ensure data storage
Blockchain technology has already been implemented across numerous food chains and is expected to grow further. It reduces costs for retailers and manufacturers by minimizing delays and enhancing reliability. The transparency provided by blockchain makes food recall procedures more efficient. Additionally, blockchain ensures that consumers receive their money’s worth and that their funds are not supporting unethical practices such as slavery or child labor as it is crucial to ensure that the data stored on the blockchain is of high quality to maintain consistency and accessibility of information when needed.
Boom in Digital Economy
The digital economy, driven by AI and blockchain, offers a unique opportunity to restructure food production systems for sustainability. By fostering innovation, collaboration, and data-driven decision-making, we can create a more resilient and environmentally friendly food industry.AI and blockchain are powerful tools that can significantly contribute to sustainable food production. By leveraging these technologies, we can enhance efficiency, ensure transparency, and reduce environmental impact, ultimately creating a more sustainable and resilient food system for future generations.
Conclusion
In the future, every food business will incorporate Artificial Intelligence (AI) and the Internet of Things (IoT) to produce food that is safer, more sustainable, and customized for each customer. This technological revolution has changed the ways in which we produce, distribute, and consume food. Food safety and quality have significantly increased thanks to AI's ability to swiftly assess enormous volumes of data and make decisions.
Blockchain technologies preserve data that is irreversible and transparent to all stakeholders, by providing the data its overall uniqueness and legitimacy.
Over the past decade, dining has been transformed by technology, revolutionizing everything from reservations to payments. The shift from paper menus to digital formats, accelerated by post-COVID safety standards and customer preferences, has streamlined operations and enhanced the dining experience. Digital menus now offer guests instant access to detailed descriptions, images, and allergen information through a simple QR code scan, enabling direct ordering and easy digital payments—all from their smartphones.
This shift towards transparency and convenience has empowered customers to make informed choices, enhancing overall satisfaction. Additionally, the adoption of digital menus has proven cost-effective for restaurants, reducing the need for printing and reprinting physical menus and promoting hygiene by minimizing contact points. The environmental benefits are equally significant; the reduction in paper usage aligns with the growing emphasis on sustainability within the hospitality industry.
The rise of delivery apps has further revolutionized the dining experience. Technology now places the best restaurants in the city right in the palm of your hand. Whether you’re craving a wood-fired pizza or a flavourful biryani, these apps deliver piping hot meals from your favourite establishments directly to your home. They also cater to late-night cravings, ensuring access to delicious food without stepping outside your house.
While technology has undoubtedly enhanced the dining and delivery experience for customers, it has also significantly improved operational efficiency for restaurants. Running a restaurant involves managing a multitude of tasks, from finances and inventory to overhead costs and employee satisfaction. Technology has become an invaluable asset in this regard, simplifying complex processes and enabling smoother operations. Imagine smart refrigerators that alert chefs when ingredients are running low or need to be discarded, or intelligent ovens that adjust temperatures based on the specific dish being prepared. From multi-functional cooking appliances to automated, AI-powered kitchen equipment, modern technology has made restaurant kitchens smarter, allowing restaurateurs to deliver quality service more efficiently.
Technology also plays a crucial role in customer engagement, helping restaurants identify and respond to customer preferences. Through data analytics, restaurants can track peak times, popular dishes, and loyal customers, allowing them to tailor dining experiences and foster customer loyalty.
Training and development have also benefited from technological advancements. Virtual reality (VR) and augmented reality (AR) technologies enable chefs to teach new culinary techniques and provide comprehensive kitchen training remotely. These technologies can also be used to create immersive dining experiences, allowing customers to feel as if they’re dining in Madrid while seated in Mumbai.
Looking ahead, technology promises to further enhance the dining experience. Innovations such as 3D food printing are already a reality and could soon become commonplace in restaurants. With advancements in robotics, we might see a future where restaurants resemble a scene from a science fiction movie, although the human touch will remain irreplaceable. Self-order kiosks are increasingly prevalent in quick-service restaurants (QSRs) like McDonald’s and Taco Bell, reducing the need for queues and enhancing the efficiency of service. The ongoing AI boom is also driving sustainable practices, with innovations like hydroponic gardens allowing restaurants to grow fresh herbs right in their kitchens.
In conclusion, the future of dining looks incredibly promising, not just because of the food but because of the technological innovations that continue to redefine our culinary experiences. The next time you dine out, take a moment to observe the subtle yet profound ways in which technology is reshaping the dining landscape, offering a glimpse into the future of gastronomy.
Food safety and hygiene practices in restaurants play an important role. Inadequate food safety procedures may result in food-borne infections, endangering customers and undermining the restaurant's reputation. In addition, there may be severe fines, legal action, and the shutdown of the business for violating food safety regulations.
Hygiene is at the Top
“At QEY, food safety is our top priority. We adhere to stringent protocols, ensuring that all ingredients are sourced from trusted suppliers and stored at the correct temperatures. Our kitchen staff is trained to handle food with utmost care, following the latest food safety standards,” explained Divyesh Thakkar, Founder, QEY: Sip & Vault who further added that we maintain a rigorous hygiene routine, which includes regular sanitization of all surfaces, equipment, and utensils. Our staff follows a strict hand-washing protocol, wears gloves, and uses hairnets while preparing food. We also conduct routine pest control checks and ensure that our kitchen is spotless at all times.
Commenting on the same Ajay Thakur, Head chef, Hitchki & Bayroute said, "Our commitment to food safety is unwavering, and we have implemented rigorous protocols to ensure the highest standards in our kitchen. From thorough staff training on essential hygiene practices such as proper handwashing, the use of gloves, and avoiding cross-contamination, to strict procedures for food storage and handling, we leave no room for error. Regular cleaning and sanitization of all surfaces, utensils, and equipment are part of our daily routine to prevent any contamination risks.”
Handling Food Safety in the Kitchen
• Proper Storage: Store food at the correct temperatures. Perishable items should be kept in refrigerators or freezers at appropriate temperatures to prevent bacterial growth. Raw and cooked foods should be stored separately to avoid cross-contamination.
• Labeling and Rotation: Use a “first in, first out” (FIFO) system to ensure older items are used first. Label food with dates to keep track of freshness and expiration.
• Cooking Temperatures: Ensure that food is cooked to the right internal temperature to kill harmful bacteria.
• Cross-Contamination Prevention: Use separate cutting boards and utensils for raw meat, vegetables, and cooked foods. Clean and sanitize surfaces regularly.
• Regular Cleaning and Sanitizing: Keep all kitchen surfaces, equipment, and utensils clean. Regularly sanitize high-touch areas like handles, knobs, and counters to prevent the spread of bacteria.
Hygiene Practices and Measures Taken:
• Hand Hygiene: Regular hand washing is essential. Employees should wash hands before handling food, after using the restroom, after touching raw food, and whenever hands are dirty. Hand sanitizer can be used as an additional measure.
• Personal Protective Equipment (PPE): Use of gloves, hairnets, and aprons is standard practice. Gloves should be changed frequently, especially when switching between handling different types of food.
• Health Checks: Regular health checks for employees to ensure no one with a contagious illness is handling food. Employees should report any symptoms of illness immediately.
• Cleaning Protocols: Implement a strict cleaning schedule for the entire kitchen. This includes deep cleaning of floors, walls, and equipment, as well as daily cleaning of all surfaces.
• Waste Management: Proper disposal of waste is crucial to prevent pests and contamination. Use closed easily accessible bins that are emptied and cleaned regularly.
Challenges Faced:
• Staff Compliance: Ensuring all staff consistently follow safety and hygiene protocols can be challenging, especially during busy periods. Continuous training and supervision are essential.
• Pest Control: Keeping pests out of the kitchen requires constant vigilance, regular inspections, and sometimes professional pest control services. Even a minor infestation can pose a significant threat to food safety.
• Temperature Control: Maintaining the correct temperatures for storage, cooking, and serving can be difficult, particularly in older kitchens or during peak times when equipment is under heavy use.
• Cross-Contamination Risks: Preventing cross-contamination requires strict discipline and awareness from the entire kitchen team. In a fast-paced environment, mistakes can happen, leading to potential risks.
• Supply Chain Issues: Ensuring that all ingredients are fresh and safe upon arrival can be challenging, especially when dealing with multiple suppliers. Quality control measures must be in place to inspect and verify the safety of all incoming products.
Conclusion
If a restaurant does not maintain good hygiene and food safety, it can lead them to a lawsuit and the brand can lose its reputation and brand value. It is important to follow the basic guidelines by the FSSAI to ensure safety of the customers.
The convenience of online meal delivery is attracting more and more customers, which has led to an accelerated rise in the cloud kitchen business in recent years. Since there are no dine-in customers, food in a cloud kitchen is exclusively made in a commercial kitchen for takeout or delivery. Cloud kitchens enable restaurant owners to swiftly launch a digital brand or grow an already-existing company. Innovative developments such as Artificial Intelligence (AI) and the Internet of Things (IoT) are revolutionizing the cloud kitchens. According to reports, the online food delivery market in India is expected to reach US$43.78 billion in revenue by 2024, with a compound annual growth rate (CAGR) of 15.98%. This growth will culminate in a projected market volume of US$91.88 billion by 2029. The best practices for guaranteeing food safety include laying the groundwork, adhering to regulations, conducting routine audits and inspections, certifying staff, maintaining hygienic food handling practices, FIFO, cleaning protocols, and using technology.
Sustainability is likely to receive increasing attention from the cloud kitchen sector as customers grow more ecologically aware. This can entail buying foods from sustainable and local sources, utilizing eco-friendly packaging materials, and streamlining culinary processes to cut down on food waste.
How AI is Enhancing Safety
Safety remains of utmost importance in the cloud kitchen industry, especially in the wake of the pandemic, which has underscored the importance of stringent hygiene protocols. “AI and IoT devices play a crucial role in monitoring kitchen conditions, ensuring compliance with health standards, and minimizing the risk of contamination,” said Chef Mohammed Anas, Co-founder, Beyondburg Inc. who elaborated that where the demand for food delivery is high, such technologies are essential for consumer trust and maintaining high safety standards.
Food safety is a critical aspect of cloud kitchens. “Following the strict hygiene standards and conducting regular audits ensures that the end products meet the highest safety standards. Extensive training of the staff and using fresh, quality ingredients are essential as well and with that maintaining transparency in operations and adhering to regulatory guidelines is important to build consumer trust,” added Himanshu Chawla, Co-Founder, Bakingo by pointing that in any form of food business, maintaining food safety is non-negotiable and fundamental to delivering a reliable and satisfying customer experience.
"To ensure consumer trust and regulatory compliance. Maintaining hygiene, using quality ingredients, and adhering to food safety standards help prevent foodborne illnesses and protect the brand’s reputation. The key safety concerns includes hygiene practices and ingredient quality," said Richa Sanghvi, Owner, All things Jain who highlighted that AI can help in monitoring kitchen conditions, tracking ingredient and ensuring compliance.
Cloud kitchens in India are addressing food safety concerns through strict hygiene protocols, prevention of cross-contamination, and the use of advanced technology. Varun Madan, CEO & Founder, Salad Days shared, “Measures such as frequent handwashing, the use of protective gear, and color-coded utensils ensure a safe dining experience. Additionally, cloud kitchens monitor food temperatures and implement the FIFO method to reduce spoilage, while following thorough cleaning schedules and complying with food safety regulations, including obtaining FSSAI licenses.”
How AI is Increasing Efficiency, Profitability
Artificial Intelligence (AI) has revolutionized the cloud kitchen industry, optimizing operations from inventory management to customer service. In tech-centric cities like Bangalore, AI-powered analytics predict customer preferences, streamline delivery routes, and minimize food waste, thereby enhancing efficiency and profitability. “Delivery platforms in India, fully leveraging technology, offer real-time insights into order updates, delivery times, customer feedback, and quality metrics, making AI indispensable for modern cloud kitchens,” added Anas.
AI is transforming the future in every industry including the cloud kitchens, bringing efficiency, personalization and innovation. “Various processes can be optimized through AI like inventory management, reducing food wastage and streamlined deliveries. It can help enhance order accuracy and speed through predictive analytics and automated workflows. Individual preferences and dietary needs can be catered by AI-powered data insights for personalized customer experiences. Additionally, AI-driven systems are deployed to monitor and control the temperature and humidity during the logistics as well as storage, which help to maintain the quality of the food. This not only improves the quality and safety of food but also contributes to sustainability by reducing waste,” commented Chawla.
Over the past few years, the Indian food industry has seen a substantial transformation, with some restaurants evolving from multi-billion-dollar ventures. Rising popularity of dining out, with favorable demographics and rising disposable income and an increase in working women are all factors contributing to the industry's success. Consequently, organized players have moved into smaller towns and cities in addition to urban areas, seeing greater opportunities in these market.
Given that Tier-II and Tier-III cities in India are developing into new financial centers, emerging markets in these areas provide substantial income prospects for enterprises, particularly those in the Quick Service Restaurant (QSR) sector. They are setting up units in these areas as rentals and other costing is cheaper than the metro cities. Despite the fact that QSR brands have been around for decades in India, the industry has changed significantly, and there is a lot of room for growth in these areas.
Getting the Right Talent
“To effectively reduce labor costs in QSR restaurants, a comprehensive approach is necessary. It begins with a proper recruitment and selection process to ensure we bring in the right talent. Once they are onboard, mentoring employees on their internal career paths can guide them toward a bright future, fostering loyalty and motivation,” shared Manohar Datta Pularvathi, Co-Founder of Mr. Philly's.
Similarly, implementing a robust training program is crucial for equipping staff with the necessary skills and knowledge. Employee retention is paramount, and brands achieve this by consistently collecting exit feedback to understand and address any underlying issues. Additionally, maintaining adequate staffing according to the restaurant’s requirements is essential for operational efficiency, as inadequate staffing can lead to burnout and attrition. Placing the right people in the right roles ensures optimal performance, and cross-training staff across departments enhances flexibility and productivity. Treating staff with respect and keeping them happy not only improves morale but also reduces turnover.
“Recognizing and rewarding their contributions through rewards and recognition programs further boosts engagement and satisfaction. This holistic strategy not only controls the labor costs but also cultivates a dedicated and efficient workforce, ultimately contributing to the overall success of the restaurant,” added Pularvathi.
Limiting Human Involvement by Enhancing Customer Experience
“Prevailing evidence suggests that these strategies can help QSR brands effectively control their labor costs, and the top players in the market have embraced these solutions. For instance, McDonald has adopted techniques such as self-serve kiosks and mobile applications for ordering to limit human resource contacts at the organization’s operational level. Starbucks deploys efficient tools for schedule planning and matching the employees with the demand that exists among the customers, and Chipotle focuses on employee turnover by offering them extensive training courses which would assist him/her in enhancing the skill set and grow in their carrier,” pointed Sahil Arya, Co-founder and Director, Fat Tiger.
Cross-Training is Important
“Quick Service Restaurants (QSRs) in India are popular for their speedy service and variety of options. However, they face high labor costs and intense industry competition. To manage these challenges, brands can adopt smart staffing strategies. By scheduling staff based on peak and off-peak hours, restaurants can align their workforce with customer traffic. Additionally, cross-training employees allow them to cover multiple roles during busy hours, reducing the need for extra staff,” said Vishal Mahajan, Founder & MD of Optimal Retail Pvt Ltd.
“It's crucial to balance cost-cutting measures with maintaining customer satisfaction and the brand's reputation. Some restaurants in India and internationally, like KFC and Cafe Coffee Day, are using technology such as kiosks for self-ordering/payment and mobile ordering. These innovations help improve waiting times and enhance customer satisfaction without increasing staff numbers,” he concluded.
It's hard to imagine a time before traditional plastics became ubiquitous in single-use food packaging and food-contact applications. It's even harder to envision a future without them using current materials, but that day is approaching, sooner than many might think. As cities and states start to scrutinise their plastic usage and implement new restrictions on items such as bags, cups, lids, stirrers, and straws, biobased and biodegradable products are emerging as viable alternatives for many applications.
The global market for sustainable packaging reached a value of US$ 274.15 billion in 2020 and is forecasted to experience a compound annual growth rate (CAGR) of 6.5 percent from 2023 to 2030. This growth surge is primarily driven by increasing consumer consciousness regarding sustainable packaging and the enforcement of stringent regulations aimed at reducing single-use plastics.
The Indian food and beverage packaging industry is projected to reach US$ 86 billion in 2029 with an annual growth of 14.8 percent, according to Invest India. The industry includes items like containers, cups, tableware, straws, bags, wraps and boxes designed to safeguard or store food. Many restaurants, especially fast-food chains like KFC, McDonald’s, and Burger King, have started pilot programs for eco-friendly containers and are phasing out polystyrene. These efforts are part of a broader move towards biodegradable materials such as sugarcane, bamboo, and seaweed-based packaging.
“At Recipe Cup, we see the immense potential of bio-based packaging solutions for the food and beverage industry, especially for platforms like ours that champion fresh, home-cooked meals straight from kitchens to doorsteps. Sustainable practices are at the core of our vision, and bio-based materials offer a promising alternative to traditional plastics,” Recipe Cup's-Founder & CEO Rushabh Jhaveri commented.
The Shift from Traditional Plastics to Sustainable Alternatives
In the food service industry, traditional plastics have dominated packaging applications since the 1970s, and for good reason. These thermoplastics are highly effective: they are durable enough to preserve food for extended periods, withstand high temperatures without losing shape, and are both inexpensive and versatile. Traditional plastics have revolutionized packaging, offering lightweight, low-cost solutions that excel at protecting and delivering products.
However, the convenience of traditional plastics comes at a significant environmental cost. The growing accumulation of plastic in oceans, and the presence of microplastics in soil and drinking water, highlight the urgent need for change. We must find innovative solutions to combat plastic pollution while maintaining the efficiency and safety that the food service industry relies on.
Companies like Yash Pakka have spearheaded the sustainable packaging industry in India for a long time now. Yash Pakka collaborates with over 40 commercial partners, including Amazon, KFC, and Google, and has a presence in 43 countries such as the US, the UK, Sweden, Turkey, and Australia. With more than 16,000 shareholders, the company’s signature contribution to the environment is the creation of sustainable packaging using agri-residue, which resembles styrofoam, a type of expanded polystyrene commonly used for food containers. With a mission to make “the world eat safe,” Yash Pakka is developing moulded food serviceware made from sugarcane pulp. This modular design allows them to serve food without delivering a dose of carcinogens and bleach with your meal. “We want to cover food packaging and food services from end to end. As part of that, we’re looking at regenerative partnerships with airlines and food delivery companies. We’ll be replacing their entire equipment and packaging. For aircraft, we’ll be providing a compostable bag that everything can be put into once a flight lands,” Ved Krishna, Strategic Head said in an interview.
The Environmental Cost of Convenience
A study by the Economist Intelligence Unit (EIU) revealed a 71 percent increase in the popularity of sustainable goods over the past five years. By adopting sustainable packaging practices, businesses can mitigate the risks associated with government regulations and supply chain operations. The packaging industry is increasingly turning to biodegradable products in response to health concerns and the inefficiency of plastic reuse. While green packaging requires an upfront investment, the long-term savings can be substantial. Eco-friendly materials like corn-starch-based PLA and bamboo-based packaging offer significant environmental benefits. PLA supports sustainability by utilizing crops such as corn, while bamboo packaging is 100 percent biodegradable and compostable within two to six months.
Transitioning to sustainable packaging is not just an environmental imperative; it presents a strategic opportunity for businesses to align with consumer demand, anticipate regulatory changes, and achieve long-term cost savings. The future of packaging lies in innovative, eco-friendly materials that protect our planet while ensuring the same high standards of safety and efficiency.
Commitment to Combating Plastic Pollution
“We express our solidarity with the global community in the mission to combat plastic pollution. We understand the urgent need to tackle the plastic pollution crisis and its devastating impact on our ecosystems. With unwavering commitment, we have taken significant strides to minimise single-use plastics in our restaurant - Maayaa and Falcon café, part of Sublime. From eco-friendly packaging to implementing refillable options, we are determined to be a force for positive change. In the heart of our culinary journey, we recognize the pivotal role of sustainable practices and the preservation of nature's delicate balance. From sourcing local and organic ingredients to minimising food waste, we strive to create a harmonious relationship with the environment. Together, we can create a world where sustainability and gastronomic delights thrive in perfect harmony,” Uzma Irfan, Director, Corporate Communications, Prestige Group and Founder, Sublime commented.
Economic Challenges and Cost-Effective Solutions
Conventional plastic packaging materials are significantly cheaper compared to bio-based alternatives. For instance, traditional polyethylene (PE) costs around $1,200 per ton, whereas bioplastics like polylactic acid (PLA) can range from $2,500 to $3,000 per ton. This substantial price difference poses a challenge for widespread adoption, especially for small businesses
Global bioplastics production is expected to more than triple between 2021 and 2026, which could help lower costs through economies of scale. However, this requires significant investments in production infrastructure and technology advancements to improve the properties of bioplastics and make them more competitive with traditional materials.
“For these solutions to become cost-effective for small players, economies of scale, advancements in production technologies, and supportive regulatory frameworks will be crucial. We anticipate that with continued investment and innovation, cost parity with conventional materials could be achieved within the next 3 to 5 years, enabling broader adoption across the industry,” Irfan further added.
How Restaurants Can Aim for Cost-Effective Sustainable Food Packaging
It's hard to imagine a time before traditional plastics became ubiquitous in single-use food packaging and food-contact applications. It's even harder to envision a future without them using current materials, but that day is approaching, sooner than many might think. As cities and states start to scrutinise their plastic usage and implement new restrictions on items such as bags, cups, lids, stirrers, and straws, biobased and biodegradable products are emerging as viable alternatives for many applications.
The global market for sustainable packaging reached a value of US$ 274.15 billion in 2020 and is forecasted to experience a compound annual growth rate (CAGR) of 6.5 percent from 2023 to 2030. This growth surge is primarily driven by increasing consumer consciousness regarding sustainable packaging and the enforcement of stringent regulations aimed at reducing single-use plastics.
The Indian food and beverage packaging industry is projected to reach US$ 86 billion in 2029 with an annual growth of 14.8 percent, according to Invest India. The industry includes items like containers, cups, tableware, straws, bags, wraps and boxes designed to safeguard or store food. Many restaurants, especially fast-food chains like KFC, McDonald’s, and Burger King, have started pilot programs for eco-friendly containers and are phasing out polystyrene. These efforts are part of a broader move towards biodegradable materials such as sugarcane, bamboo, and seaweed-based packaging.
“At Recipe Cup, we see the immense potential of bio-based packaging solutions for the food and beverage industry, especially for platforms like ours that champion fresh, home-cooked meals straight from kitchens to doorsteps. Sustainable practices are at the core of our vision, and bio-based materials offer a promising alternative to traditional plastics,” Recipe Cup's-Founder & CEO Rushabh Jhaveri commented.
The Shift from Traditional Plastics to Sustainable Alternatives
In the food service industry, traditional plastics have dominated packaging applications since the 1970s, and for good reason. These thermoplastics are highly effective: they are durable enough to preserve food for extended periods, withstand high temperatures without losing shape, and are both inexpensive and versatile. Traditional plastics have revolutionized packaging, offering lightweight, low-cost solutions that excel at protecting and delivering products.
However, the convenience of traditional plastics comes at a significant environmental cost. The growing accumulation of plastic in oceans, and the presence of microplastics in soil and drinking water, highlight the urgent need for change. We must find innovative solutions to combat plastic pollution while maintaining the efficiency and safety that the food service industry relies on.
Companies like Yash Pakka have spearheaded the sustainable packaging industry in India for a long time now. Yash Pakka collaborates with over 40 commercial partners, including Amazon, KFC, and Google, and has a presence in 43 countries such as the US, the UK, Sweden, Turkey, and Australia. With more than 16,000 shareholders, the company’s signature contribution to the environment is the creation of sustainable packaging using agri-residue, which resembles styrofoam, a type of expanded polystyrene commonly used for food containers. With a mission to make “the world eat safe,” Yash Pakka is developing moulded food serviceware made from sugarcane pulp. This modular design allows them to serve food without delivering a dose of carcinogens and bleach with your meal. “We want to cover food packaging and food services from end to end. As part of that, we’re looking at regenerative partnerships with airlines and food delivery companies. We’ll be replacing their entire equipment and packaging. For aircraft, we’ll be providing a compostable bag that everything can be put into once a flight lands,” Ved Krishna, Strategic Head said in an interview.
The Environmental Cost of Convenience
A study by the Economist Intelligence Unit (EIU) revealed a 71 percent increase in the popularity of sustainable goods over the past five years. By adopting sustainable packaging practices, businesses can mitigate the risks associated with government regulations and supply chain operations. The packaging industry is increasingly turning to biodegradable products in response to health concerns and the inefficiency of plastic reuse. While green packaging requires an upfront investment, the long-term savings can be substantial. Eco-friendly materials like corn-starch-based PLA and bamboo-based packaging offer significant environmental benefits. PLA supports sustainability by utilizing crops such as corn, while bamboo packaging is 100 percent biodegradable and compostable within two to six months.
Transitioning to sustainable packaging is not just an environmental imperative; it presents a strategic opportunity for businesses to align with consumer demand, anticipate regulatory changes, and achieve long-term cost savings. The future of packaging lies in innovative, eco-friendly materials that protect our planet while ensuring the same high standards of safety and efficiency.
Commitment to Combating Plastic Pollution
“We express our solidarity with the global community in the mission to combat plastic pollution. We understand the urgent need to tackle the plastic pollution crisis and its devastating impact on our ecosystems. With unwavering commitment, we have taken significant strides to minimise single-use plastics in our restaurant - Maayaa and Falcon café, part of Sublime. From eco-friendly packaging to implementing refillable options, we are determined to be a force for positive change. In the heart of our culinary journey, we recognize the pivotal role of sustainable practices and the preservation of nature's delicate balance. From sourcing local and organic ingredients to minimising food waste, we strive to create a harmonious relationship with the environment. Together, we can create a world where sustainability and gastronomic delights thrive in perfect harmony,” Uzma Irfan, Director, Corporate Communications, Prestige Group and Founder, Sublime commented.
Economic Challenges and Cost-Effective Solutions
Conventional plastic packaging materials are significantly cheaper compared to bio-based alternatives. For instance, traditional polyethylene (PE) costs around $1,200 per ton, whereas bioplastics like polylactic acid (PLA) can range from $2,500 to $3,000 per ton. This substantial price difference poses a challenge for widespread adoption, especially for small businesses
Global bioplastics production is expected to more than triple between 2021 and 2026, which could help lower costs through economies of scale. However, this requires significant investments in production infrastructure and technology advancements to improve the properties of bioplastics and make them more competitive with traditional materials.
“For these solutions to become cost-effective for small players, economies of scale, advancements in production technologies, and supportive regulatory frameworks will be crucial. We anticipate that with continued investment and innovation, cost parity with conventional materials could be achieved within the next 3 to 5 years, enabling broader adoption across the industry,” Irfan further added.
On the same lines Jhaveri feels that the cost factor is a significant hurdle, particularly for smaller players. While the technology is constantly evolving, achieving widespread adoption hinges highly on cost-competitiveness. “ I personally believe it's just a matter of time before bio-based materials become a no-brainer for everyone. In my opinion, the following would reduce the cost of bio-based packaging solutions significantly, Economies of scale, Government incentives / subsidies and Consumer awareness,” he added.
On the same lines Jhaveri feels that the cost factor is a significant hurdle, particularly for smaller players. While the technology is constantly evolving, achieving widespread adoption hinges highly on cost-competitiveness. “ I personally believe it's just a matter of time before bio-based materials become a no-brainer for everyone. In my opinion, the following would reduce the cost of bio-based packaging solutions significantly, Economies of scale, Government incentives / subsidies and Consumer awareness,” he added.
The landscape of dining in India has undergone a dramatic transformation with the advent of online reservation systems, which promised a revolution in convenience and operational efficiency. Traditionally, dining out in India often meant making a call to a restaurant, navigating through busy lines, and hoping to secure a table at the desired time. However, as the pace of life has accelerated, so have the expectations of diners. The digital age has ushered in a new era, where convenience is paramount, and this shift in consumer behaviour paved the way for online table reservations. Initially heralded as game-changers, platforms like EazyDiner, DineOut or Zomato have faced numerous challenges that question the long-term viability of this business model in the Indian market.
Economic Pressures and Competitive Dynamics
The primary allure of online reservation systems is undeniable: they offer an easy interface for consumers to book tables and provide restaurants with tools to manage reservations efficiently. However, the reality of operating in this space has proven to be far more complex, particularly under the pressures of an intensely competitive market. Numerous players entering the space have led to market saturation, where differentiation becomes difficult, and consumer loyalty is hard to maintain. The revenue models, heavily reliant on restaurant commissions and user fees, struggle under the weight of such competition.
“Reservations in a busy restaurant actually lose them money. Because you have to be constantly watching the dining room and assessing when people will “possibly get up” and holding tables open for periods of time so they are available for the reservations that are coming vs just seating people when they are open,” Vanshika Khanna, Owner of Cellar Bar commented.
Technological Integration Challenges
Adoption of online reservation systems by restaurants is impeded by several factors. The existing infrastructure in many restaurants is often incompatible with the seamless integration required by these platforms. Many establishments still prefer traditional methods over third-party systems, fearing loss of control over customer data and potential service quality issues. The diversity in technology adoption across different regions and scales of operations further complicates this landscape, making widespread adoption challenging.
Regulatory and Data Concerns
The business practices of market leaders such as Zomato and Swiggy have come under scrutiny for potentially anti-competitive behaviours, such as bundling services and preferential treatment, which could stifle competition and innovation in the online reservation sector. These issues, flagged by entities like the Competition Commission of India, illustrate the complex regulatory environment that these platforms operate within. The implications of such practices include reduced choice for consumers and higher barriers to entry for new platforms.
Customer Loyalty and Market Trends
Despite the convenience offered, customer loyalty to a specific online reservation platform is notoriously low. Customers often choose platforms based on the best available deals or specific features at the moment, rather than brand loyalty. This fickleness requires platforms to continually invest in marketing and promotions, which can erode profit margins. Additionally, the integration of online food delivery with reservation services by some platforms raises concerns about market dominance and the overshadowing of pure-play reservation services.
“Some busy restaurants may refuse to use reservation apps for a variety of reasons. One reason could be that they prefer to manage their reservations through traditional methods, such as phone calls or in-person bookings. Another reason could be concerns about the fees associated with reservation apps, as some apps charge a commission for each reservation made through their platform. Additionally, some restaurants may want to maintain a personal touch with their guests by handling reservations directly,” Shubham, owner of Junkyard Bhopal commented .
Strategic Responses and Future Directions
For online reservation systems to thrive, they must innovate beyond basic table booking services. Potential strategies include deeper technological integration with restaurant operations, from inventory management to customer relationship management (CRM) systems. Providing comprehensive analytics to restaurants about customer preferences and behaviour can offer added value, compelling more restaurants to adopt these platforms.
Additionally, platforms can diversify their revenue streams by offering marketing and loyalty programs, aligning themselves more closely with the needs of both restaurants and diners. Developing unique selling propositions such as exclusive dining experiences or loyalty rewards could enhance customer retention and attract new users.
“I feel the opportunities presented by online reservations platforms outweigh the challenges. The vast customer base, marketing reach, and data insights provided by these platforms contribute to increased footfall and revenue for participating restaurants. With more diners relying on digital platforms for their dining choices, being a part of these ecosystems has become a necessity for restaurants seeking sustained success,” Aditya Sanghavi, owner of casual dining Potli in Mumbai commented.
The future of online reservation systems in India hinges on their ability to adapt to an increasingly complex market environment. By addressing the challenges of technology integration, regulatory pressures, and customer loyalty, these platforms can redefine their role in the hospitality industry. Strategic innovation and alignment with broader market trends will be crucial for these systems to not only survive but thrive in the competitive Indian market. The path forward will likely involve a blend of technological sophistication, strategic marketing, and robust business models that offer real value to both restaurants and diners.
It was well predicted in advance that the world is going to witness water crisis in years to come affecting people, businesses due to the shortages. It all started when South Africa’s oldest city Cape Town in South faced a severe water crisis in 2018. From last 2-3 months India’s third most populous city, Bangalore, known for its nightlife and eating out culture is going through the worst water crisis impacting the people of the city, schools, hospitals, hotels, restaurants, amongst others.
According to reports, it has been estimated that the city needed 2,600 million litres of water per day (MLD) of which 1,450 MLD comes from the Cauvery River and 650 MLD from groundwater, hinting towards a shortage of 500 MLD of water. Bengaluru, that’s also hub for hosting and owning a large number of microbreweries and bars in the city, has seen a severe impact on the business of these restaurants, places. Restaurant India spoke to some of the top bar, brewery owners in the city to understand on how they are combating the growing challenge of water crisis in the city, state.
“As an entrepreneur and Managing Partner of Ironhill India, I acknowledge the gravity of the water crisis confronting Bengaluru and its implications for our industry. In response, we have proactively instituted water conservation measures and sustainable practices,” shared Teja Chekuri of Ironhill India that has optimized their manufacturing processes to minimize water consumption, implemented stringent monitoring and control measures, and instilled a culture of awareness and responsibility among their staff to ensure that they are committed to using water sustainably, responsibly, and efficiently.
“While, the water crisis presents a formidable challenge for breweries in Bengaluru, it also an opportunity for our industry – which is heavily reliant on water, to lead by example and drive positive changes. Through our unwavering commitment to sustainability, we are confident in our ability to navigate these challenges responsibly while delivering exceptional products and experiences to our customers,” he added.
Emphasizing on the fact that water is a valuable resource in any industry, and implementing water conservation measures can have a positive environmental impact. Using two reverse osmosis (RO) plants—one for the kitchen and another one for your brewery if you are a microbrewery—can allow you to have a backup so that if any one of the systems fails, the other can be used for both purposes, Vinay Chandrashekar, Founder, Long Boat Breweing Co, commented, “The thought process behind this is that customers should not any point run out of RO water. We at Long Boat also optimize water usage during the brewing process by installing water-efficient equipment such as water controllers in every washroom and we have a 30 feet waterfall in the middle of our property and implement recycling and reclamation systems not just for waterfalls but also for greenery we have at long boat to minimize water waste.The rejected RO water from the kitchen can also be recycled and used in toilets and for gardening purposes wherever possible.”
On the other hand, Byg Brewski that is known for its craft beers and drinks is using Double RO membrane to increase output and decrease reject water. Every Reverse osmosis membrane works at 70% reject water and 30% recovery so to decrease the reject water quantity it is again fed back into another membrane this way we achieve 50% reject and 50% recovery on every liter of water. “We try to reduce consumption as much as possible by altering cleaning SOP’s. For Eg- Using more hot water (60-65 C) for CIP since it has higher solubility as compared to room temperature water. Will help remove alkaline detergent much quicker,” shared Megha Shamrao Dalimbe, Senior Head Brewer, Byg Ventures by adding that they are also blending some of the filtered raw water back in RO water to increase TDS and again increase output of clean water generated. Post sedimentation and carbon filter the water is clean enough to be blended with Clean RO water to increase TDS (for drinking water - 150 ppm is ideal).
Bengaluru as a city has given many firsts to the Indian dining and delivery scenes. From being the first city to accept the global flavours to becoming the largest nightlife and brewery hub, it was also the first cosmopolitan city to accept the delivery and cloud-kitchen model in the country. From brands like Empire that is running the business from last six decades starting the delivery model to Freshmenu becoming one of the first brand to experiment with cloud kitchen model, we have seen and witnessed many firsts in the city. Now, that we see brands and restaurants are looking at giving an omni-channel experience to their customers by being available on both the platforms and models, we can surely say that going forward ‘phygitisation’ will surely be the keyword in restaurant and dining space.
Recently, Restaurant India hosted its Bengaluru Edition of the Restaurant India Conference Awards on 1st May at Sheraton Bengaluru, where it discussed and talked about being omni-channel. Here are key highlights from the session:
Focusing on Consistency: “Today, for any restaurant business, the biggest challenge is handling people, labour. And we see technology already replacing humans at countries like Korea, Singapore and others. Though in India, the labour cost is not as high as other countries but the consistency is a challenge as you expand. So, consistency has to be taken care of and that was the prime objective on how do we take care of this by using technology,” shared Mahesh Reddy, CEO, GOPIZZA India that invested a lot in the backend technology to focus on consistency, standardisation of the product. Today, the brand has 50 outlets and are looking at 100 outlets by this year end.
Automation is Important: “We are helping our partners For any biz, if you have acceptable product, price and profit and that’s when we say it’s a sustainable, profitable model. The most important thing we follow is the collaboration. We are not directly involved with customers but QSR partners and understanding what consumer is asking for,” pointed Sumit Nair, GM, IFFCO Group that is focusing a lot on automation by technology and embibing it in becoming a great product company. The brand has also minimised human intervention by using automation.
Relying on Data: “Some of the things that we as a company do is to enhance the online ordering experience for the customers and data has allowed us to do way better in terms of managing consumer timelines, restaurant cancellations, menu availability, forecasting orders and what should you be prepared of because you have a pattern of orders and acceptations and I think the use of data in combination with learning over the years has helped us optimise the online customer experience,” mentioned Rashmi Daga, Founder, Freshmenu.
Accessibility is the Key: Empire is a brand that is there in the business for almost six decades now. “We always want to be recalled and we serve a very neutral rather a habitual cuisine. So, we have a certain key factors that Empire is always accessible to its customer,” shared CEO, Shakir Haq of NKP Empire Ventures as it was as early as in 2007 that they introduced the home delivery at that time, having their own bikes, riders. “We went investing in right ways in technology, various systems, and processes. So, today omni-channel is the strategy for the older brands,” he added as they have now entered into the cloud kitchen segment with their brand Easybites by Empire.
Collaborating for Growth: “Our aim is product innovation and innovation by application. We are collaborating with restaurant chefs to create unique recipes and consistency in the products. Our focus is always to work closely with restaurant partners to create standardisation and consistency in the product,” added Jaineet Kalra, Key Account Manager- South, Nestle Professional.
Innovation is Constant: “At Sheraton, innovation is constant for us. Health comes in picture first of all, giving the variety is the other important thing as we have eight FnB outlets and we also accept every customer and believe in creating experience,” concluded Mahesh Padala, Culinary Leader & Director of Operations, Sheraton Grand Bangalore Hotel at Brigade Gateway.
Train travel in India has come a long way, especially with the introduction of the IRCTC ecatering policy back in 2014, offering much-needed food on train services. Previously, despite the popularity of train travel, especially for long journeys, passengers faced challenges in obtaining fresh and hot meals.
Homemade food was often the only alternative, posing issues such as food spoilage and health concerns. Alternatively, pantry and station foods were limited and could be unhealthy. However, IRCTC ecatering partners have revolutionized the train travel experience, providing passengers with delicious, fresh, and safe meal options, thereby eliminating the food-related hassles and enhancing overall train journey satisfaction.
IRCTC's catering partners support Indian Railways' goal of offering passengers diverse food options. Adhering to ecatering guidelines ensures safe, hygienic food with FSSAI certification. Online food order in train during journeys has become convenient, enhancing the travel experience. Alongside existing players like Zoop, which is serving passengers with hot and fresh meals, popular companies like Zomato and Swiggy have also now entered the market, expanding from home and office deliveries to catering to train passengers' needs.
Last year, Zomato, a prominent player in FoodTech, initiated a partnership with IRCTC to offer pre-ordered meal delivery services at five key railway stations in cities, including New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi. Similarly, Swiggy entered into a collaboration with IRCTC, targeting passengers traveling through stations in Bangalore, Bhubaneshwar, Visakhapatnam, and Vijayawada. With India boasting the fourth largest railway network globally, serving over 24 million passengers daily, the need for diverse onboard food services is evident. Both Zomato and Swiggy are taking initial steps, with Zomato partnering with over 500 restaurants, and Swiggy training its support agents extensively. Both aim to enhance passengers' dining experiences during travel and allow order food in train through their platforms.
While Zomato and Swiggy are poised for growth, Zoop, IRCTC's trusted partner since 2016, has expanded to over 195 train stations in India. Collaborating with 2500 restaurants and elevating train food order, Zoop aims to ease food hassles for train passengers. Offering a variety of cuisines including North Indian, South Indian, Chinese, Italian, and Jain options, as well as catering to special dietary needs for occasions like Eid or religious festivals such as Janmashtami or Navratri. With easy ordering via PNR/Train number or station name through various platforms like Zoop’s website, app, phone, and social media platforms such as Instagram and Whatsapp, the journey becomes more enjoyable for passengers.
According to Puneet Sharma, Founder of Zoop, "Introducing the IRCTC ecatering policy and the recent partnership with FoodTech giants like Zomato and Swiggy highlights notable strides by Indian Railways towards enhancing passenger comfort and convenience. This enables Indian Railways to accommodate a larger number of passengers to place IRCTC food order, with the new and existing ecatering partners like Zoop. At Zoop, our focus is on elevating journey standards by eliminating food-related hassles, thereby contributing to seamless passenger experience on Indian Railways. This year, our goal is to serve an increased number of passengers and expand our presence to over 250 train stations across India."
With the current surge in online activity, especially with 800 million internet users in India, the demand for train food services is poised to rise in the upcoming years. As the number of trains and passengers continues to increase, there's a clear opportunity for growth for FoodTech players like Swiggy and Zomato, as well as existing partners like Zoop, to continue enhancing the train journey experience by offering convenient online food delivery options and serving favorite meals on trains.
The food and beverage (F&B) industry is among the world's fastest-expanding service sectors, boasting an impressive annual growth rate of 7.2 percent.The food service market in India was estimated to be about 70 billion U.S dollars in 2023. It is estimated to increase to 125 billion U.S dollars in 2029 as reported by Statista. With the aim of maximizing profits, restaurants and F&B brands worldwide are continually striving for financial success. Beyond the pursuit of profitability, these businesses bear a significant responsibility towards societal well-being, known as Corporate Social Responsibility (CSR). CSR emphasizes the importance of businesses contributing to societal benefit through responsible practices and initiatives.
Under the recent amendment, companies achieving either a turnover of INR 1000 crores or a market valuation of INR 500 crores are now obligated to allocate 2 percent of their average net profits from the past three years towards Corporate Social Responsibility (CSR) initiatives. This marks a significant shift from the previous approach, where CSR activities were purely voluntary for corporations.
Corporate Social Responsibility encompasses a variety of legal and operational measures a business can undertake to positively impact society. For example, KFC has adopted initiatives focused on waste management, water conservation, and staff training to enhance its environmental contributions. Such measures demonstrate how restaurants can actively participate in resource conservation and societal awareness, thereby fulfilling their role in societal betterment through mindful operational practices.
Why restaurants should consider CSR?
Recent research highlights that over three-quarters of global consumers lean towards purchasing from companies that are socially responsible. This trend extends into the dining sector as well, with patrons willing to spend an additional 5 to 10 percent for the assurance that a restaurant invests in its community.
Echoing these findings, KT Prasad, Country Sales Director at Zendesk, emphasizes the critical role of a responsible corporate image in India. He notes, "To navigate the crowded and competitive market landscape successfully, Indian brands have recognized the necessity of presenting themselves as conscientious entities." This insight underscores the strategic importance of Corporate Social Responsibility (CSR) in building brand loyalty and sustaining business growth.
Chains like Starbucks is deeply committed to Corporate Social Responsibility, actively working to expand its FoodShare program. With ambitious goals, the company aims to deliver 50 million meals to those in need by 2021. Through significant investments in research and quality control, Starbucks is perfecting a process to distribute fresh, ready-to-eat food to help alleviate hunger. Furthermore, Starbucks is taking strides to reduce its environmental impact, focusing on decreasing its use of plastics. This initiative is part of a broader strategy to enhance sustainability and support the communities it serves.
“Employees are more productive at work when you give them the chance to contribute to their passions and when you incorporate their advocacies with their work. For restaurants, these can result in better service and an overall lighter and more positive atmosphere for everyone,” Abhimanyu, founder of Zing chain of restaurants commented.
What all CSR activities F&B brands can engage in?
There are a lot of scope of small or larger impact CSR that restaurants company can engage. Irrespective of the fact that its a single outlet brand or a multiple outlet brand, CSR can take place in numerous ways.
Adhering to ethical standards, providing fair compensation, and maintaining transparency are fundamental. Implementing motivational schemes and recognizing employees' contributions cultivates loyalty and appreciation, enhancing their connection to the company. Investing in employee development through training and aligning their advocacies with the workplace not only benefits personal growth but also strengthens the business. These practices demonstrate a commitment to fostering a supportive and enriching work environment.
Adopting waste management strategies, including the promotion of reusable containers and the 3 R’s (reuse, reduce, recycle), forms a critical part of Corporate Social Responsibility (CSR) activities for restaurants. These practices not only mitigate environmental damage but also align with efforts to give back to the community through donations or participating in local initiatives. Such CSR activities underscore a restaurant’s dedication to social responsibility and environmental stewardship, enhancing its reputation and community relationships.
Leading by Example: For a Noble Cause
In India, where many face hunger and live in less developed areas, restaurants are emerging as vital support systems. These establishments not only cater to locals in need but also offer a helping hand to budget-conscious travelers, underscoring that access to food transcends luxury, it's a fundamental need. Through their actions, these restaurants exemplify how CSR initiatives can manifest in even the simplest acts of kindness.
Pappadavada in Kochi, led by Minu Pauline, stands out for its unique approach to tackling food waste and hunger. This establishment features a refrigerator outside its premises, named the "tree of goodness," where patrons are encouraged to leave leftover food. This initiative ensures that the excess food is redistributed to those in need rather than being wasted. Pauline notes that this act of kindness has not only elevated the restaurant's reputation within the community but also deepens the ethos of serving the public good through business. This innovative concept is seen as a step towards changing societal attitudes towards food waste and hunger.
Jubilant FoodWorks engages in various CSR activities focusing on nutrition, sanitation, and community welfare. They support meals for underprivileged children, improve sanitation facilities in schools, and run skill development programs for youth and women. Their efforts also extend to healthcare by providing mobile health units and organizing health camps, reflecting a holistic approach to societal development and well-being.
Similary, at Zomato, their CSR efforts are focused on addressing crucial societal issues including hunger, malnutrition, and providing access to quality education and healthcare. Their initiatives aim to promote gender equality, support the elderly and differently-abled, and enhance vocational skills, particularly among women and children. Environmental sustainability forms a core part of their agenda, emphasizing animal welfare, agroforestry, and conservation. Zomato also contributes to national relief funds and engages in projects designed to uplift socially and economically disadvantaged groups, aligning with government-established objectives for comprehensive social development.
The drive towards CSR within the F&B sector illustrates a growing recognition of the industry's role towards betterment of society. It's an acknowledgment that businesses have the power and responsibility to effect positive change. As companies adopt more socially responsible practices, they not only contribute to societal and environmental betterment but also set a new standard for success one that measures achievement not just in financial terms but in the positive impacts to the community at large.
The restaurant industry's struggle with high turnover among its frontline and mid-level employees is becoming increasingly problematic. In 2023, this issue reached its zenith, marking a three-year high in attrition rates during a period of significant sector expansion. This expansion is shadowed by the challenges of long working hours and limited opportunities for career progression, factors that have contributed to the turnover crisis that began unfolding three years prior.
BetterPlace, in its detailed analysis, pinpointed quick service restaurants (QSRs) as the segment suffering the most from frontline worker attrition. The firm's fiscal year 2022 report uncovered that the monthly attrition rate in these sectors stood at an alarming 19%, suggesting that nearly one in every five employees opts to leave each month. The surge in demand for the services and products offered by these industries, both during and in the aftermath of the pandemic, necessitates a large and readily available workforce. The report emphasizes that the demanding nature of the jobs and the ease with which workers can be replaced are principal reasons behind the high attrition rates.
Challenges in the Restaurant Industry
Pravin Agarwala, co-founder and group CEO at BetterPlace, underscores the critical role of India’s frontline workforce in driving the country's economic growth across various sectors. “With the economy on a path to normalization, there's been a noticeable increase in the demand for frontline workers, leading to the creation of millions of jobs. According to Agarwala, the job market is expected to expand significantly, potentially creating up to 50 million jobs by the end of this decade,” he added.
The restaurant industry, however, is facing challenges in attracting the new generation of workers. Kabir Suri, president of the National Restaurants Association of India, highlights the decline in interest among young individuals, attributing it to the demanding and physically intensive nature of the work. This has resulted in a noticeable decrease in the number of students enrolling in professional hotel management courses.
The attrition rate within the restaurant sector reached a record 60% in 2023, as noted by Kartik Narayan, chief executive (staffing) at TeamLease Services. This represents a significant increase from the 50-55% average observed in previous years. “Factors contributing to this high turnover include erratic working hours and a stressful work environment. The sector's growth has also led to a competitive talent market, with businesses vying for mid-level and frontline staff through higher salaries and enhanced job benefits,” he commented.
Need for New Workforce Strategies
Recent trends in investment and funding have shown a resurgence, with both new local ventures and international chains being attracted by India’s young demographic. This has led to a proliferation of job opportunities, contributing to a faster turnover rate as employees seek better compensation packages.
A report by consulting firm Wazir Advisors forecasts substantial growth for India's organized food services market, projecting an increase to $78.8 billion by 2026 from $57.2 billion currently. Factors such as a higher frequency of dining out, increased disposable incomes, and urbanization are driving this growth. Despite facing slowed expansion due to heightened competition, QSR chains are aggressively pursuing expansion strategies. ICRA estimates suggest that these chains are set to open 2,300 new stores with an investment of Rs 5,800 crore between 2022-23 and 2024-25, underscoring the industry's resilience and its adaptability to changing market dynamics.
Moreover, the industry's landscape is being reshaped by technological advancements and changing consumer preferences. Digital ordering systems, contactless deliveries, and an emphasis on health and safety standards have become paramount. Restaurants are now tasked with not only managing the operational challenges posed by high attrition rates but also adapting to a rapidly evolving market where consumer expectations are higher than ever. To retain employees, businesses are increasingly focusing on creating a positive work culture, offering competitive salaries, and providing opportunities for growth and development. These strategies are crucial for addressing the root causes of attrition and ensuring the sustainability of the workforce in this vital sector.
Solutions and Future Directions
To mitigate the high attrition rates within the restaurant industry and safeguard jobs, a multifaceted approach involving both industry leaders and government intervention is essential. Businesses can take proactive steps by investing in employee training programs, offering clear paths for career advancement, and enhancing workplace conditions to make the sector more appealing to potential and current employees. Implementing flexible working hours, providing mental health support, and recognizing and rewarding employee contributions can also play a significant role in employee retention.
On the government's part, support can come in various forms to stabilize and grow the hospitality sector, thus preserving jobs. Policymakers could consider offering tax incentives or grants to businesses that commit to employee development and retention strategies. Additionally, government-funded vocational training programs tailored to the hospitality industry can equip individuals with the skills needed for long-term career success within the sector. Such initiatives not only benefit potential employees but also help businesses by increasing the pool of skilled labor.
The government can also facilitate partnerships between the private sector and educational institutions to update curriculum and training programs, ensuring they are in line with industry needs. This collaborative approach between the industry and government can lead to a more robust, resilient, and attractive restaurant and hospitality sector, ultimately resulting in lower attrition rates and more secure employment for frontline and mid-level workers.
Train travel is renowned for its affordability and comfort has undergone a transformation into a culinary adventure in recent times.
Supported by initiatives like the IRCTC ecatering policy and partnerships with esteemed providers such as Zoop, passengers now enjoy a diverse menu for IRCTC food orders.
As outlined in the IRCTC Corporate Plan for FY 24-28, catering services contributed 27% to the revenue in FY 22, second only to internet ticketing. Notably, the demand for online food orders surges during peak periods such as holidays and festivals, highlighting the increasing popularity of dining on trains.
With the market predicted to grow at an impressive 30% CAGR from FY 23 to 28, expected to reach INR 1,845.76 billion by FY 28, the sector presents substantial growth opportunities.
Zoop, the foremost authorized partner of IRCTC for ecatering, commenced operations in 2016 with a commitment to provide fresh, delectable, and hygienic meals aboard trains.
Aligned with its vision, Zoop has collaborated with IRCTC to enrich the convenience of train travel by introducing onboard food delivery services, proudly serving as IRCTC's ecatering partner.
Currently, Zoop generates a monthly revenue exceeding INR 2 crores and delivers 60,000 meals each month, with a remarkable 400,000 meals served in the last quarter alone.
With a presence at over 180 train stations across India, Zoop reached a significant milestone by serving 2 million train meals in 2023.
In 2023, Zoop implemented a range of innovative strategies that significantly boosted its growth and revolutionized the travel experience. These initiatives comprised:
- Hindi WhatsApp Chatbot - Zoop, in partnership with Jio Haptik, rolled out WhatsApp Train Food Delivery, accessible in Hindi and Hinglish. This novel service aimed to simplify the process of ordering train food, reaching a wider audience through a user-friendly WhatsApp automated Chatbot.
- Google Chatbot - Zoop introduced the Google Chatbot service tailored to train passengers, facilitating food delivery on trains. By searching "Zoop" on Google and selecting "Chat," passengers can seamlessly place orders, monitor their PNR status, and manage orders directly via the chat interface.
- Instagram Chatbot, Ziva - Zoop also launched a food ordering service through Instagram, leveraging the popular social media platform. This innovative initiative enables train travelers to easily order food using their Instagram account with just a few taps.
- Pay At Delivery Payment Option - In collaboration with the online payment platform Simpl, Zoop introduced the 'Pay At Delivery' payment option. This feature allows passengers to pay for their orders only upon delivery, eliminating the need for upfront payment.
"We began before food delivery services were even available for trains. Partnering and aligning with the IRCTC ecatering, our goal has been to deliver hot, fresh and hygienic meals from FSSAI-approved restaurants directly to train seats. With 20 Lac train meals served in FY 2023, we now aim for a revenue of INR 50 Cr for FY 2024. We're expanding our operations to more train stations across India and targeting availability at 250 stations by year end." said Puneet Sharma, Founder of Zoop.
Furthermore, Zoop provides 24/7 food ordering options, including pre-ordering, group orders, and specialized dietary selections such as Jain and festive cuisines, sourced from a network of over 2500 FSSAI-certified restaurants.
In addition to food services, Zoop offers functionalities like PNR status checking, platform locating, train schedules, and coach position tracking, simplifying passenger inquiries and improving food delivery convenience.
With the Railway Ministry's initiative to replace pantry car services on 300 trains with AC-3 tier coaches aimed at boosting revenue by Rs. 1,400 crore, and meal services transitioning to base kitchens, e-catering, and train-side vending machines, Zoop pledges to ensure smooth food ordering and delivery for train passengers, accommodating their diverse preferences effortlessly.
The Hotel And Restaurant Association (Western India) – HRAWI has recently voiced its concern over the current GST structure affecting restaurants within hotels, particularly those linked to room tariffs above INR 7500. The association points out that this taxation model puts hotel-based restaurants at a significant disadvantage compared to standalone restaurants and calls for a crucial overhaul of the GST rates applied to them. HRAWI is advocating for the separation of GST rates for restaurants from hotel room charges, proposing that all restaurants be taxed uniformly, regardless of their location within hotels.
HRAWI's President, Pradeep Shetty, remarked on the issue, stating that the current GST linkage to room rates unfairly burdens hotel restaurants, especially when attracting walk-in diners. The leap in GST from 5 percent to 18 percent for room tariffs over INR 7500 introduces a level of unpredictability for customers and places hotels at a competitive disadvantage.
This practice, according to Shetty, discriminates against hotel restaurants compared to their standalone counterparts, despite offering similar quality dining experiences. The association has made a plea to the government for the standardization of GST rates across all dining establishments to foster fair competition and ensure the industry's longevity, aiming for equitable treatment of all restaurant categories.
The Association also highlighted how this GST disparity adversely affects larger hotel chains in attracting walk-in guests and complicates banquet service offerings, leading to customer dissatisfaction and operational challenges.
Shetty emphasized the importance of creating a level playing field in the hospitality sector by standardizing GST rates for food and beverage services across the board. This adjustment is deemed essential for nurturing a competitive environment, promoting fair practices, and securing the hospitality industry's future.
Echoing HRAWI's sentiments, Siddharth Renganathan, Co-Founder of Suvaii, added, “As the founder of Suvaii, I echo the concerns raised by the Hotel and Restaurant Association (Western India) – HRAWI regarding the current GST framework for restaurants within hotel premises. The existing structure, tying GST rates to room charges exceeding INR 7500/-, poses challenges for establishments like ours. We support the HRAWI's advocacy for reform, calling for uniform GST rates for all restaurants, regardless of their association with hotels. This change is essential for creating a level playing field, promoting growth, and ensuring a fair environment for restaurants to thrive within the hospitality sector.”
According to Kabir Suri, co-founder & Director of Azure Hospitality Pvt Ltd, “Balanced, fair and equitable policies by the government with respect to GST input tax credit, rationalised licensing norms and e-commerce policy will not only benefit businesses and consumers but also make a substantial contribution to overall economic growth and employment opportunities."
Since 2018, hoteliers have been vocal about their concerns that this tax variation is causing a decline in restaurant footfall, as customers opt for standalone restaurants to leverage tax advantages. Industry stakeholders are advocating for a standardized GST rate of 5% across all dining establishments to create a level playing field. Amidst the thriving performance of standalone restaurants nationwide and the already intense competition, the hotel industry is questioning the rationale behind linking hotel room rates to dining preferences.
Further compounding the challenges is the growing trend among hotel guests to opt for food delivery services from external sources. However, Abhishek Sarwate, cofounder and CEO at Utopian Smoothies feels that, “From the customer's perspective, there is practically no difference in dining at a high-end restaurant or at a restaurant operating inside a hotel. However, the customer ends up paying a significantly higher amount in the latter case, if the room tarrif exceeds INR 7,500/-, which seems arbitrary. Moreover, this customer could be a walk-in, in which case there doesn't seem any logical relation with the room tarriff to the bill amount the customer ends up paying. Hence, there is a strong case to re-visit this particular aspect of GST rate applicability.”
The current GST structure, which links restaurant taxes within hotels to room tariffs exceeding a certain threshold, has sparked significant concern among hospitality industry stakeholders. This taxation model is seen as putting hotel-based restaurants at a competitive disadvantage compared to their standalone counterparts, leading to calls for a crucial overhaul. Advocates for change argue that a uniform GST rate for all restaurants, irrespective of their location, would foster fair competition, alleviate operational challenges, and ensure a level playing field across the hospitality sector.
The push for reform is motivated by a desire to create a more equitable and sustainable business environment that supports the growth and longevity of all dining establishments. Addressing this issue is essential for nurturing a competitive and fair hospitality industry, encouraging innovation, and enhancing customer satisfaction by making dining experiences more predictable and uniformly priced.
Ayodhya's tourism is getting a big boost as three well-known hotel chains - Radisson, Taj, and ITC - are coming to the city. This is because more and more people are visiting Ayodhya for its historical and religious significance. The new luxury hotels will not only show that Ayodhya is becoming a popular tourist spot but also help in the city's economic and infrastructural development.
Taj's Arrival:
Taj, a famous luxury hotel group, is also entering Ayodhya with a premium hotel. Taj is known for its impressive architecture and excellent service, and its presence in Ayodhya will add a touch of luxury to the city's tourism. Taj is planning to have two hotels – one under the Vivanta brand and another Ginger hotel.
Radisson's Plan for Ayodhya:
Radisson, a well-known hotel brand, is getting ready to open a luxury hotel in Ayodhya. The hotel is expected to have top-notch amenities, blending modern comforts with a traditional touch. Radisson aims to provide a unique and immersive experience for travelers looking for luxury in Ayodhya.
ITC's Sustainable Luxury:
ITC Hotels, known for their focus on sustainability and luxury, are joining Ayodhya's hospitality scene. The ITC hotel in Ayodhya will prioritize eco-friendly practices while maintaining high-service standards.
Cygnett Hotels & Resorts:
Cygnett Hotels & Resorts is also bringing a new hotel to Ayodhya, called Cygnett Collection KK Hotel. It has 41 rooms, each designed with modern amenities and stylish details.
"We are thrilled to establish our presence in the spiritually significant city of Ayodhya. With the completion of the Ram Temple in January 2024, Ayodhya is poised to become a global tourism hub and spiritual center, attracting visitors from all corners of the world. Prime Minister Shri Narendra Modi envisions Ayodhya as a must-visit destination for future generations, making this the perfect time for Cygnett Hotels & Resorts to enter the Ayodhya market. We are excited about the growth prospects in terms of both tourism and infrastructure development," said Sarbendra Sarkar, Founder & Managing Director of Cygnett Hotels & Resorts.
The arrival of these luxury hotels is not just good for tourists; it's also a big boost to Ayodhya's local economy. The hospitality sector creates job opportunities and supports local businesses. The collaboration between these hotels and local suppliers will contribute to Ayodhya's overall growth. The decision by Radisson, Taj, ITC, and Cygnett to open luxury hotels in Ayodhya shows that the city is becoming more popular among tourists. As the hospitality sector invests in the city's development, Ayodhya is on its way to becoming a destination for both spiritual seekers and those looking for luxury experiences.
In the ever-changing online delivery market, giving customers a great experience has become crucial.
Giving consumers greater financial power is one of the main advantages of offering additional discounts. Offering a little more savings on each order can make a big impact in a world where economic reasons often affect spending decisions. I firmly believe that everyone should have access to high-quality meals, and these extra savings further improve customer interaction, benefiting both the restaurant and the delivery service.
The relationship between a brand and its customers extends beyond the transactional nature of a single purchase. By collaborating with restaurant platforms to offer extra discounts, it also fosters a sense of loyalty among the customer base. This loyalty not only translates into repeat business but also encourages positive word-of-mouth marketing.
Swiggy's Pocket Hero initiative, which provides extra discounts on certain items is an incredible discovery made by the team considering business that hits the mass, hones affordability.
Swiggy's "Pocket Hero" program can be a really good way to connect with restaurants that are looking to gain access to customers who don't want to compromise on their budget while dining. This program goes beyond standard discounts and rewards customers with additional savings based on their order history and preferences.
Contrary to what many believe, offering extra discounts can actually be a strategic move to boost business growth. In a competitive market flooded with restaurants all competing for customers' attention, such initiatives help set a brand apart as one that values and invests in building relationships with its patrons. The resulting increase in customer retention and acquisition contributes to sustainable business expansion.
While the positive effects of additional discounts are clear, it's crucial to navigate potential challenges. Striking the right balance between profitability and customer perks is key. If restaurants can achieve and manage that equilibrium, I believe they can reap tremendous benefits from programs like Pocket Hero!
By making dining more affordable and building loyalty, these types of initiatives significantly contribute to many eateries' overall success. I commend Swiggy for their innovative Pocket Hero program, which sets a standard for the whole industry. It empowers customers while driving business growth.
As consumer preferences in the realm of pleasure and entertainment continue to evolve, the hospitality industry is experiencing a significant transformation driven by the desire for superior customer experiences and convenience. Redefining the very essence of luxury, the hospitality sector is enthusiastically embracing novel trends and innovations in an effort to enhance the ultimate consumer journey.
The Indian hospitality industry is expected to be worth $23.50 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.73% to reach $29.61 billion by 2028, according to a report by Mordor Intelligence.
Amongst the multitude of trends and innovations propelling the hospitality industry's growth, one prominent innovation taking center stage is smart elevators and escalators, elevating the ultimate guest experience. Evolving beyond being mere conveyances, these vertical transportation solutions have become vital in shaping guest experiences and improving operational efficiency. Innovations such as contactless elevator buttons and destination control systems not only provide comfort and convenience to guests but also create a welcoming and inclusive atmosphere within hospitality spaces.
Unveiling technology trends in hospitality transportation
Automated destination control systems: Facilitating the movement of guests within an establishment, vertical transportation plays an indispensable role. Making guest mobility more convenient and allowing access to numerous facilities existing in an establishment, the emergence of automated destination control systems has revolutionized access to hospitality spaces. By optimizing passenger flow and classifying passengers according to their destination floor, these systems minimize stops and cut down on waiting times, making for quicker and more effective travel.
Interactive panels: The time when elevators involved a single button for visitors to traverse their ways is long behind. Technological advancements have ushered in interactive panels with touch screens and displays, allowing guests to easily locate their desired destinations. From displaying information on elevator speed, location, and capacity, to presenting safety features such as emergency call buttons and fire alarms and and even entertainment options, like music or video players, interactive panels enhance the commuting experience of visitors.
Contactless buttons: With health and hygiene becoming a priority for modern-day consumers, especially due to the deadly pandemic, the need for safer vertical travel has arisen. Consequently, this has led to the emergence of AI-facilitated contactless elevator buttons that offer a hygienic means of transportation by enabling users to call out a lift without making physical touch, thereby reducing the possibility of transferring bacteria, germs, and illnesses. This technology ensures effortless travel, particularly for visitors with disabilities, making hospitality spaces more inclusive.
Modern structure and design: In response to the growing trend of conscious consumerism, individuals are largely gravitating towards sustainable options. Consequently, this has led to the emergence of green elevators, featuring environmentally conscious materials and regenerative drives, encouraging green vertical transportation. In addition to structure, the design of elevators and escalators has also undergone a substantial evolution. Going beyond the traditional escalators, glass lifts incorporating technology-enabled features such as fingerprint scanners, biometric security tools, and personalized lighting schemes enhance the travel journey of visitors. As a result, this provides hospitality facilities with the opportunity to ace their aesthetic game, in addition to ensuring a sophisticated and stylish appearance, contributing to a more delightful experience.
Advanced vertical transportation solutions: Enhancing guest experiences
Luxurious experiences have become a necessity for modern-day individuals. As a result, hospitality spaces are going above and beyond by adopting technologies and innovations to guarantee outstanding experiences for contemporary consumers. Amidst other innovations, the integration of smart elevators and escalators equipped with technology-enabled features has enabled hospitality businesses to create more welcoming, efficient, and extraordinary experiences for their visitors, establishing new industry standards.
Playing an imperative role in ensuring a remarkable experience, vertical transportation outfitted with destination control systems, contactless elevator buttons, and interactive panels has enabled businesses operating in the hospitality sector to target greater operational efficiency while facilitating improved consumer experience. Moreover, as technology continues to advance, the future looks bright with the arrival of cutting-edge innovations that will further enhance the functionality and safety of vertical transportation systems, providing the hospitality sector with exciting opportunities to reshape customer service and convenience.
Quick-service restaurants (QSRs) have come a long way, technology has emerged as the unsung hero, transforming the dining experience into a seamless and futuristic affair. Gone are the days of scribbling down orders on paper and shouting them across the kitchen; today's QSRs are using the power of digitalization to not only expedite service but also to create a more engaging and personalized dining journey.
Picture this: you stroll into your favorite burger joint, and before you even reach the counter, your phone pings with a notification. "Welcome back! How about adding your usual double cheeseburger to your cart?" The digital age has ushered in an era of hyper-personalization in QSRs, where algorithms anticipate your cravings almost as accurately as your best friend.
One of the most noticeable trends in QSRs is the rise of mobile apps. These apps aren't just a fancy add-on; they're becoming the backbone of the entire dining experience. Mobile ordering has empowered customers to skip the line, customize their orders effortlessly, and even schedule pickups. It's not just about saving time; it's about giving customers the power to curate their dining adventures with a few taps on their screens.
Speaking of screens, digital menu boards are another tech trend that has found its way into the QSRs. Forget static displays; these digital marvels showcase visuals of every item on the menu, complete with real-time updates and promotions. It's like having a food gallery right in front of you, tempting you to explore beyond your usual choices. The days of squinting at small print menus are fading away, making room for an immersive visual feast.
But the digital transformation doesn't end with the customer interface. Behind the scenes, kitchen operations are undergoing a tech makeover as well. Integrated kitchen management systems are streamlining the cooking process, reducing errors, and optimizing inventory management. It's not just about serving food fast; it's about serving it right every time. With digital tools keeping the kitchen in sync, chefs can focus on what they do best – creating delicious masterpieces.
The introduction of self-service kiosks is yet another chapter in the tech tale of QSRs. These touch-enabled stations allow customers to place orders, customize meals, and pay, all without interacting with a human cashier. While some may argue that this diminishes the human touch in hospitality, others see it as a way to empower customers, especially those who prefer a swift and independent dining experience. It's a fine balance between embracing the convenience of technology and preserving the warmth of human interaction.
Moreover, loyalty programs have taken a digital twist. Forget about stamp cards and physical coupons cluttering your wallet. QSRs are leveraging digital loyalty programs to reward customers for their patronage. From points-based systems to exclusive app-only deals, these programs are not only encouraging repeat business but also providing valuable data for restaurants to tailor their offerings to individual preferences.
Now, some may argue that the charm of a QSR lies in its simplicity – a place to grab a quick bite without the fuss. However, the digital revolution isn't about complicating the experience; it's about enhancing it. The aim is not to replace the essence of QSRs but to infuse it with the efficiency and personalization that today's tech-savvy customers crave.
In a nutshell, the tech trends in QSRs are not a mere addition but a fundamental shift in the dining paradigm. From mobile apps and digital menu boards to kitchen management systems and self-service kiosks, every aspect of the QSR experience is undergoing a digital makeover. Embracing this revolution doesn't mean saying goodbye to the traditional charm of quick service; it's about welcoming a new era where technology and simplicity coexist, creating a dining experience that's not just quick but also smart and tailored to individual tastes. So, the next time you order your favorite meal, remember, it's not just a transaction; it's a digital dance between you and the restaurant, choreographed for your satisfaction.
In today's fast-paced digital landscape, where first impressions are formed in the blink of an eye, the visual appeal of a restaurant’s menu plays a pivotal role in attracting customers and driving sales. Understanding the power of high-quality food images, Swiggy, India's one of the leading on-demand convenience platform, has introduced an industry-first AI-powered ‘Photoshoot’ feature for its restaurant partners.
This feature empowers restaurant owners to enhance their menu offerings and entice diners with mouthwatering visuals.
“High-quality food photos are essential for creating a profitable menu. They assist customers in making informed choices and improve their overall ordering experience. Swiggy's 'AI-enabled Photoshoot Feature' simplifies the process, eliminating the need for costly photographers. We hope restaurant partners and owners will take full advantage of this offering,” shared Rohit Kapoor, CEO of Swiggy's Food Marketplace.
The AI Photoshoot feature simplifies the process of capturing and enhancing high-quality images for menu items. Restaurant owners can easily use their smartphones and the Swiggy Owner app to complete this task efficiently. The 'AI-Powered Image Validation' ensures that the images adhere to Swiggy's guidelines, making the process hassle-free and efficient. Additionally, the 'AI Image Enhancement' feature takes food photography to the next level by improving image quality, enhancing aesthetics, and even offering the ability to change backgrounds.
One of the standout benefits is the speed at which these images become available on the Swiggy platform, typically within just a few hours. This quick turnaround can lead to a significant increase in orders, with high-quality menu images shown to potentially boost orders by up to fivefold. Additionally, restaurant owners can enjoy substantial cost savings, as there's no longer a need for expensive professional photoshoots.
In just one month since its launch, approximately 10,000 restaurants across India have enthusiastically adopted this groundbreaking feature. With the capability to effortlessly capture and upload stunning menu images at no additional cost, restaurant partners can now captivate more customers and watch their orders soar.
Founded in 2014, Swiggy is India’s leading on-demand convenience platform with a vision to elevate the quality of life for the urban consumer by offering unparalleled convenience. It connects consumers to over 280,000 restaurant partners in hundreds of cities.
The hospitality sector is experiencing a myriad of changes driven by technological advancements, changing guest preferences, and a spike in sustainability initiatives. In a bid to stay competitive in this dynamic and evolving landscape, hoteliers are embracing this change. The industry yearns for innovation, where each hotel brand is striving to stand out in terms of providing a seamless experience to guests. And this effort is being reflected in the hotel designs, where the hoteliers are following new architectural trends such as sustainability, technological integration, authenticity, unique storytelling -and personalisation. These trends are helping the hotels transcend brand identity while extending and deepening their relationship with their customers.
Bringing the outdoors inside: Exposure to nature and green spaces is the best antidote for an urban lifestyle. Here, the hoteliers can leverage biophilic designs that aim to plan project abundance of sunlight, open-air landscapes, scattered vegetation, and more. This type of décor helps hotel brands create a memorable and positive experience for their clients. The biophilic design ‘brings the outdoors inside’ by softening the boundaries between the two and weaving biophilic elements into the interiors that range from subtle to overt.
A blend of sustainability: Social and ecological sustainability have gained ground in architecture, which encourages a responsibility towards the environment. This is where architects must strive to design the hotels by following the best sustainability practices. The design can be planned in such a manner that there is a reduction in waste, energy savings, and a decline in water usage. Implementation of renewable energy sources such as solar panels on the rooftop is another great practice. Moreover, recyclable materials such as natural fibres can be used for insulation, which reduces thermal heat gain and enhances comfort for guests.
Technological intervention: In a bid to elevate customer experiences, hoteliers can embrace cutting-edge technologies. The premises can be designed with smart rooms that are equipped with augmented reality (AR), personalised automation, and artificial intelligence to redefine luxury, convenience, and comfort for the guests. Moreover, the rooms can be equipped with mood lighting, electronically controlled beds, in-room tablets, and more to give guests seamless control. In addition, the lounges can be tech-enabled and designed with futuristic elements such as virtual reality (VR) setups to deliver unique experiences to the guests.
More focus on wellness: The future of hotel designs will focus more on holistic wellness, offering a savanna for relaxation and rejuvenation. Wellness design can involve lighting, materials, air and sound quality, neutral colour palettes, greenery, and more, which leans on simple, uncomplicated, and regional influences. Hoteliers can also plan wellness centres, meditation rooms, and serene outdoor spaces that define the benchmark of wellness for modern-day hotels. Apart from the onsite amenities such as group retreats, spas, gyms, and beauty treatments, the wellness-focused amenities can be personalised for the guests and delivered to their rooms.
All things considered: In a nutshell, hotel design matters as it shapes guest experiences, gives it a competitive edge, and directly impacts the bottom line. A carefully designed hotel can maximise operational efficiency, ensure hassle-free guest flow, and optimise the use of space. Therefore, hoteliers must comprehend the latest trends and get a deep insight into customer preferences to create spaces that stand out.
The future of hotel design is anticipated to revolve around biophilic design, sustainability, technological integration, and more. This evolution in the design of the hotels is poised to deliver a luxurious, serene, and guest-centric experience. Therefore, hotel owners are encouraged to strive for design excellence and embrace the transformative potential that these captivating spaces can provide.
In recent years, India has undergone a remarkable transformation in its restaurant sector, driven by the widespread adoption of Point of Sale (POS) systems. These innovative systems have brought about sweeping changes, from optimizing stock management to revolutionizing order processing. Even small-scale restaurants, which traditionally relied on manual methods for operations, have embraced these digital solutions.
POS Systems: A Global Growth Phenomenon
The global restaurant point of sale terminal market is on an upward trajectory, poised to reach a staggering USD 38.16 billion by 2030. With a projected Compound Annual Growth Rate (CAGR) of 8.0 percent from 2023 to 2030, this industry is witnessing exponential expansion. The demand for restaurant POS terminals is driven by the imperative to accelerate inventory tracking, offer multiple payment options, ensure quick service, enable automated analysis, centralize recipe and menu management, and enhance Customer Relationship Management (CRM) capabilities.
Understanding the Traditional Restaurant Business Model
Before diving into the disruptive influence of POS systems, it's essential to grasp the conventional restaurant business model in India. Historically, small-scale restaurants in the country depended on handwritten orders, manual inventory management, and paper-based record-keeping. These antiquated processes were not only labor-intensive but also prone to errors, leading to inefficiencies and financial losses.
Moreover, these traditional eateries grappled with staying attuned to evolving customer preferences and market dynamics. Lacking the data-driven insights that modern POS systems offer, they struggled to optimize their menus, pricing strategies, and overall operational efficiency.
The Ascendancy of POS Systems in India
Over the past decade, the restaurant industry in India has undergone a monumental transformation, largely propelled by the widespread adoption of POS systems. Several compelling reasons underlie the surge in POS system adoption, even among small-scale restaurants. POS systems simplify order processing, reducing the likelihood of errors in taking orders. This enhanced efficiency not only augments customer satisfaction but also saves valuable time for restaurant staff.
With POS systems, restaurants can track their inventory in real-time. This feature enables better stock control, minimizes wastage, and ensures that popular dishes are consistently available. They collect valuable data on customer preferences, peak hours, and top-selling items. This information empowers restaurant owners to make data-driven decisions, optimize their menu offerings, and craft tailored marketing strategies.
POS systems simplify payment processing, supporting various payment methods, including credit cards, digital wallets, and UPI payments. This convenience enhances the overall dining experience for customers. These softwares often incorporate features like kitchen display screens and order tracking, enabling restaurants to serve customers more efficiently. Waitstaff can quickly communicate orders to the kitchen, resulting in faster service.
While the initial investment in a POS system may appear substantial, the long-term cost savings are substantial. Reduced staff errors, improved inventory control, and heightened operational efficiency translate into lower operating costs. They further assist restaurants in adhering to tax regulations and provide automated reporting, simplifying financial management and ensuring transparency.
Lastly, POS systems are scalable, accommodating a restaurant's growth. As establishments expand, they can add more terminals or integrate additional features to meet evolving needs.
A Look at POS Companies Witnessing Remarkable Growth
Petpooja, a prominent provider of restaurant billing software in India, has experienced a remarkable threefold growth in just two years. With approximately 35,000 customers nationwide, the platform has maintained a monthly ARR growth rate of sixfold over the last two years. Notably, it has transitioned from serving 1,200 customers monthly before the pandemic to over 3,000 customers monthly today. Petpooja continues to target over 4,000 customers, with a 33 percent month-over-month growth rate.
On the market front, Petpooja has been consistently onboarding more than 3,000 restaurants every month, with more than 50 percent of its clientele hailing from Tier 3 and 4 regions. Collaborations with industry leaders, including Paytm payment devices, ONDC, WhatsApp Integration, Gupshup, and Knowlarity, further strengthen its network.
"Unlike most POS and ERP companies that offer rigid, standardized reports, Petpooja Analytics provides a dynamic approach to data analysis. Owners and managers can customize reports to suit their specific business needs. We recognize that the reporting needs of a standalone bakery differ greatly from those of a chain of breweries," explained Shaival Desai, VP Growth at Petpooja.
Saurabh Gupta, Co-Founder of Urban Piper, highlights how small food businesses have transformed their operations through technology adoption, especially amidst the challenges posed by the pandemic. Digitizing their businesses has enabled them to connect with customers in innovative ways, adapt to the new normal, and become more organized.
The Impact on Small-Scale Restaurants
The adoption of POS systems has democratized the restaurant industry in India, leveling the playing field for small-scale establishments that once struggled to compete with larger counterparts. These smaller restaurants can now offer the same level of efficiency and service, attracting more customers and remaining competitive.
Small-scale restaurants can benefit significantly from reduced operational costs, courtesy of POS systems that minimize errors and wastage. This newfound efficiency allows them to allocate resources more judiciously, resulting in cost savings.
“Small food businesses were the most impacted segment due to Covid. They started adopting technology to digitize their businesses in the hope of connecting with their customers in newer ways and finding a way to adopt the new normal. This mind-shift on the SME segment of merchants helped them become more adaptable and enabled their business to get more organized. They started seeing the benefits of maintaining a digital stock of their inventory to generate POs and connecting to their suppliers in a much more efficient manner,” Gupta added.
Enhanced customer experiences are another hallmark of POS system adoption. These restaurants can now offer quicker service, accurate orders, and diverse payment options, thereby creating a dining experience that fosters customer loyalty.
Customizability is a key feature of POS systems, enabling small-scale restaurants to adapt to evolving market dynamics and customer preferences. The data-driven insights furnished by these systems empower them to make informed decisions about menu changes, pricing adjustments, and marketing strategies, all of which are pivotal for growth.
In an industry characterized by distributed and unpredictable supply chains, scaling up operations is essential for small food businesses to cover high fixed costs and attain profitability. Start-ups like UdyogYantra in Delhi are facilitating this transformation by digitizing food supply chains, rendering them transparent, predictable, safer, and more efficient. Ankur Jain, Founder & CEO of UdyogYantra, adds that right from food procurement and inwarding to food production and food distribution, UY’s Enterprise Tech enables food businesses to save costs, increase revenue, and achieve scale via standardization.
The Disruption of India's Restaurant Industry
The disruption caused by POS systems in India's restaurant sector cannot be overstated. From efficient stock maintenance to streamlined ordering processes, these systems have overhauled how small-scale restaurants operate. The manifold advantages, including improved efficiency, enhanced customer service, and cost savings, have positioned POS systems as indispensable tools for restaurants of all sizes. In India's ever-evolving restaurant landscape, the adoption of technology through POS systems is not a mere choice—it is a prerequisite for long-term success and growth in the fiercely competitive restaurant industry.
Nestled in the lap of the Himalayas, Himachal Pradesh has long been a coveted destination for travelers seeking respite from the scorching summer heat. However, the idyllic landscapes that attract tourists from far and wide have now become a double-edged sword. The recent onslaught of heavy rains and devastating floods has not only claimed lives and caused widespread damage but has also exposed the vulnerability of the hospitality industry, especially the restaurant sector, in the region. As the rain continues to batter the hill state, the plight of restaurants in Himachal Pradesh paints a grim picture of resilience and adaptation.
Tourist Exodus and Hospitality Industry
The reverberations of the ongoing monsoon have echoed across the tourist hotspots of Shimla, Manali, and Dharamshala, with hotel occupancy plummeting to abysmal levels below ten percent. This dramatic drop is not only attributed to the unforgiving weather conditions but also to the shadow cast by the unfortunate rain-related casualties. Tourists are canceling hotel reservations and holiday plans, contributing to the sector's downward spiral.
The ripple effects of this tourist exodus are felt acutely by the state's hospitality industry, which includes a vibrant network of restaurants and cafes. These establishments, often situated against the backdrop of Himachal's breathtaking vistas, are now grappling with a unique set of challenges. With their business intricately intertwined with the inflow of tourists, many restaurants are facing severe losses due to their association with the scenic beauty that is now shrouded in uncertainty.
Weathering the Storm: The Restaurant Industry's Struggle
While the focus often rests on hotels and lodging, the restaurant industry, silently suffering in the background, deserves attention. Renowned for its diversity of cuisines and local flavors, Himachal Pradesh's culinary landscape plays a pivotal role in enhancing the overall tourist experience. However, the picturesque locations that drew customers to these establishments now place them at a higher risk of damage and loss. Many restaurants built to offer panoramic views now find themselves on the frontline of the monsoon's fury.
"June18 Cafe" in Bir Billing, a popular paragliding destination, is emblematic of the struggles faced by restaurant owners during this period. Typically, the monsoon season would usher in a decline in business, but this time, the situation is more dire. The owner, Preeti Bisht, laments, "The major problem is there is huge infrastructural problem in Himachal what so ever." She points to the deteriorating highways and frequent landslides that make travel hazardous and discourage potential customers.
Bisht further shares her perspective, "These rains have brought not just water but also a deluge of challenges for us. The picturesque beauty that draws tourists to our region has become a double-edged sword, making us more susceptible to damage. It's a battle against both nature and the infrastructure hurdles."
Gaurav Chandel, the proprietor of a Thai Cafe in Shimla, echoes this sentiment, "The highway has been washed away at multiple places near Manali and remains blocked daily at Pandoh due to landslides. Who do you think would come to Manali in such a situation?" The core issue lies not only in the temporary disruptions caused by weather events but also in the broader context of infrastructure development that has, inadvertently, tipped the ecological balance.
Unraveling the Anthropogenic Factors
The devastation wrought by the monsoon storms has exposed the long-term effects of haphazard infrastructure development and deforestation in the region. The conversion of narrow highways into wider roads for faster connectivity and the loss of forest cover have contributed to erratic monsoons and deadly landslides. As man-made changes disrupt the delicate equilibrium of the ecosystem, Himachal Pradesh finds itself increasingly susceptible to natural disasters.
Vijay Karan, a Dharamshala-based restaurantpreneur who owns Rahi Café, sheds light on the broader sentiment, "The monsoon havoc has cast a shadow over Himachal's safety in this season. It's not just about profits; it's about ensuring the safety of our patrons and staff. Our cherished landscapes need to be protected, and the government's support is crucial for us to weather this storm."
The Road to Recovery: Government's Role
In the wake of this crisis, the hospitality industry has appealed to the government for support. Just as they were grappling with the aftermath of the COVID-19 pandemic, businesses are now faced with another formidable challenge. The widespread damage to infrastructure, particularly the Kullu Manali Road, underscores the urgency for restoration and recovery efforts.
To ease the burden on struggling businesses, hotel owners and restaurateurs have united in their call for economic relief. They have requested the deferment of IT, GST, and loan repayments for at least six months. This temporary reprieve could offer a lifeline for establishments battling not only the natural forces but also the financial repercussions of diminished tourism.
Rebuilding Amidst Adversity
As Himachal Pradesh navigates through the stormy seas of heavy rains and landslides, the challenges faced by its restaurants epitomize the broader struggle of the hospitality industry. The once-thriving culinary scene, intricately intertwined with the state's tourism, now faces an uncertain future. The road to recovery will require not only immediate governmental support but also a reevaluation of infrastructure development practices and a renewed commitment to preserving the delicate balance of nature. In the face of adversity, the spirit of Himachal's people and its businesses remains unbroken, with the hope that brighter days lie ahead for its scenic landscapes and the establishments that call them home.
Swiggy, India's leading on-demand convenience platform, aims to enhance the restaurant experience and offerings with the introduction of its 'Menu Score Tool.'
This powerful, data-driven dashboard empowers restaurant partners with invaluable insights and recommendations for menu optimization.
“The Swiggy Menu Score Tool showcases our commitment to providing data-driven solutions and actionable insights for our restaurant partners. As the restaurant industry increasingly expands into the online realm, understanding what works in this digital space becomes paramount. Consumer behaviours online can differ significantly from offline experiences. We believe the Menu Score Tool will bring a positive impact on the way restaurants approach menu optimization, enabling them to attract more customers and fostering organic business growth,” shared Swapnil Bajpai, VP, Supply, Swiggy.
In today's competitive restaurant landscape, a well-crafted menu plays a pivotal role in driving success. Swiggy's Menu Score Tool is poised to shape the future of menu design and customer engagement.
Customer at the Centre
The Menu Score Tool utilizes cutting-edge data analytics to create a user-friendly dashboard that harnesses the power of competition analysis and customer preferences. Covering crucial aspects such as menu categories, dishes, images, add-ons, and combos, this innovative tool equips restaurant partners with actionable recommendations to elevate their menus and drive better conversions.
Helping Restaurant Partners
The Menu Score Tool offers a comprehensive view of menu performance, providing partners with a score on a scale of 100 at both the brand and individual outlet levels. This unique scoring system is a measure of overall menu quality and serves as a benchmark for improvement. Partners gain access to key metrics such as Menu to Cart conversion percentages, enabling them to make informed decisions and drive menu-related enhancements. The tool also provides information on the Menu Scores of nearby restaurants, helping users gauge their competition and identify areas for improvement.
The dashboard presents detailed insights at a granular level, enabling partners to identify top-performing dishes preferred by customers in similar restaurants, pinpoint items lacking images and descriptions, and uncover the most sought-after add-ons and combos.
The Menu Score Tool also empowers restaurant partners with the freedom to access data points at any time, reducing dependence on direct Swiggy point-of-contact. With the tool's self-serve format, partners can take charge of their menu optimization journey and embrace data-driven decisions that translate to increased menu conversions and sustainable growth.
According to latest reports, two-thirds of Indian adults now prefer ordering, takeout from restaurants compared to pre-pandemic times. Even as the country returns to normalcy, the demand for restaurant delivery continues to grow. The convenience of food delivery has transformed the food industry in India. With just a few taps on a mobile app, people can order their favorite dishes from their favorite restaurants and have them delivered to their doorstep. However, this convenience comes at a cost that is often overlooked: the massive amounts of trash generated by food delivery.
Every time a food delivery order is placed, it comes with a variety of packaging materials, including plastic containers, utensils, and bags. These items are typically used for a very short period and then discarded, often ending up in landfills, water bodies, and other public spaces. This has become a major environmental issue in many parts of the country.
The problem is further compounded by the fact that most of this waste is not biodegradable and can take hundreds of years to decompose. This means that the trash generated by food delivery today will continue to impact the environment for generations to come. In addition to the environmental impact, the trash generated by food delivery also poses a significant public health risk, as it attracts pests and vermin that can spread disease.
The surge in delivery and takeaway orders has led to a significant increase in plastic waste, with a substantial portion of it coming from packaging materials. The issue of plastic pollution is a pressing concern for India as well, and there is a growing national movement to address the excessive use of single-use plastics and disposables in the restaurant industry. At both the federal and local legislative levels, efforts are being made to promote more sustainable practices.
Taking a cue from global initiatives, India has also set its sights on reducing the usage of fossil fuel-based plastics and replacing them with biodegradable alternatives. The government, led by Prime Minister Narendra Modi, aims to achieve a 90 percent reduction in fossil fuel-based plastics within the next two decades. To support this goal, an executive order was passed to prioritize environmental justice, including measures to tackle the plastic pollution crisis.
Numerous restaurants in India, both big and small, have already taken proactive steps to eliminate harmful plastics from their operations. However, making transition does not comes without challenges, as finding the right partners, insurance coverage, and ensuring cost-competitiveness took considerable effort.
Food delivery platforms can also play a role in reducing waste by partnering with restaurants that use eco-friendly packaging and by incentivizing customers to opt for less packaging. They can also explore the use of reusable packaging materials or introduce a deposit system for packaging that is returned after use.
The available solutions
“To this end, we introduced Infinity Box – a reusable food container that is both #environmentallyfriendly -friendly and cost-effective. These containers can be used over 200 times, making them the most sustainable packaging option for food in India. Using Infinity Box is not only good for the environment, but also for your wallet, as it costs no extra money to opt for this sustainable packaging option,” founder, Keshav Godala mentioned.
While offering recyclable and compostable packaging has been an ongoing practice in Indian restaurants for several years, there is now a push to move beyond this commendable effort and completely eliminate single-use packaging. In India, the push for sustainable food delivery is gaining momentum, with several companies actively working to address environmental concerns related to packaging.
Yash Pakka, for instance, has launched an innovative initiative called Chuk, offering 100 percent compostable food packaging containers. These containers are already being used by renowned brands like Haldiram's, Bikanervala, and Chai Point. Not only are they spill-proof and come with snug-fit lids, but they also present a formidable alternative to plastic containers. Additionally, Chuk containers are microwaveable and freezer-friendly, making them convenient for consumers. Yash Pakka ensures these containers are entirely toxin-free, further promoting health and sustainability.
Another notable brand contributing to sustainable food delivery is Pot Pot Yum Yum, specializing in serving North Indian and Coastal Cuisine, along with popular street food like chaat in pots and potlis. Their delivery range incorporates eco-friendly options, such as cardboard boxes, terracotta, and glass containers, as well as paper bags. These choices not only reduce plastic waste but also provide customers with greener alternatives for their orders.
Restaurants’ turn eco-friendly
Madam Curry, a newly established delivery house, has taken significant strides in adopting sustainable practices by utilizing glass jars in addition to earthenware and birchwood cutlery - all of which are reusable. Glass containers are considered an excellent replacement for plastic due to their eco-friendliness and safety. However, the potential issue of an overflow of glass containers for regular customers may act as a deterrent, calling for a need to strike a balance between sustainability and practicality.
Despite these challenges, some companies have embraced sustainable packaging solutions. For instance, Indian tea retail company Chai Point collaborated with India-based sustainable food packaging company Ecoware in 2016 to develop 100 percent biodegradable packaging made of bagasse. While Chai Point's paper cups remain non-biodegradable, their containers, spoons, and sticks are eco-friendly.
Looking at the future, Chai Point's founder, Amuleek Singh Bijral, shares exciting plans to explore even more sustainable options, including using pineapple waste as a container, which would not only prolong the shelf life of the products but also present a truly eco-friendly solution. India has also seen some prominent restaurant chains like Burger King and Starbucks reusable packaging pilots. However, experts argue that it is time to expand these programs beyond small-scale tests and make them a more mainstream option.
In a proactive move to tackle the environmental impact of plastic waste, the authorities in Mumbai have set their sights on curbing the use of plastic boxes and containers for food deliveries, following the successful nationwide ban on single-use plastics. In a recent meeting with restaurant bodies, the Brihanmumbai Municipal Corporation (BMC) proposed the adoption of steel containers as an alternative. This phase II initiative aims to build on the city's efforts to fight plastics and promote eco-friendly practices.
The Challenges
Some restaurant owners, like Pradeep Shetty, the senior vice president of the Hotel and Restaurant Association of Western India (HRAWI), express concerns about the feasibility of using steel containers. They believe that steel containers are impractical and would significantly increase delivery costs. Shetty points out that the challenge lies in catering to the already-demanding customer base, which expects speedy services like 10-minute deliveries.
The major hurdle faced by the restaurant industry is the cost and limited availability of eco-friendly options. While bagasse, made from sugarcane residue, is a relatively affordable option at INR 3,000 a tonne or INR 3 per kilogram, other eco-friendly alternatives like reusable glass containers, bamboo, or edible cutlery come at much higher costs compared to plastic, which costs INR 15-18 per kilogram, according to a report published in Business Insider.
Another significant challenge faced by Indian restaurants and consumers in adopting reusable is the lack of standardization across different reusable programs. This results in varying investment costs for operators, making it harder to mandate or encourage widespread participation. Experts stress the importance of creating a universal system to streamline the adoption of reusable, much like the standardized plug system for electric cars. Government intervention might be necessary to facilitate the integration of reusable into daily habits.
The subscription model has emerged as a prevalent and well-received format within the food-tech and e-commerce industries in India, encompassing both start-ups and established players. This phenomenon has extended to the F&B industry, with numerous food-tech companies and restaurants embracing subscription-based models.
While some companies focus on home-cooked meals, others prioritize healthy diet management. The demand for subscription-based models has experienced substantial growth, particularly with the rise of aggregators witnessing significant user numbers, and the prominence of third-party delivery companies like Dunzo.
As per the data by Apollo Research, the Indian healthy meal subscription market value was estimated at $3,732.8 million in the year 2022 and is projected to reach around $13,757.7 million by 2032 with a CAGR of 14 percent. In India, it projected a great potential for meal subscription start-ups given that only 25 such companies have been established.
Within the F&B industry in India, the subscription model offers a unique and convenient approach to food services, attracting a diverse range of consumers. Leading food delivery platforms such as Zomato Gold and Swiggy Super have introduced subscription programs that provide users with benefits including complimentary deliveries, exclusive discounts, and access to special events. By subscribing to these services, customers can enjoy noteworthy savings on their food orders while elevating their dining experiences.
Sprink’s co-founder, Kumar Setu, believes that meal subscriptions are mainly proposed for individuals who want to save time when it comes to cooking. “Cost-effectiveness is an essential feature for the target customers of this service. Meal subscription platforms primarily target transient population and young professionals who make at least INR 30,000 per month,” he added. Sprink is currently catering to 10,000 meals a day in Bangalore and planning to expand its operations to other cities.
Additionally, meal kit subscription services like FreshMenu, InnerChef, and Box8 have gained considerable popularity. These services deliver pre-portioned ingredients and recipes directly to customers' doorsteps, allowing them to prepare restaurant-quality meals in the comfort of their homes. The adoption of such subscription-based models within the F&B industry not only offers convenience, variety, and cost-effectiveness for consumers but also enables businesses to foster customer loyalty and cultivate recurring revenue streams.
The popularity of the subscription model can be attributed to various factors. Firstly, it offers convenience to customers by enabling them to pre-order meals or food items for regular delivery. This aspect proves particularly beneficial for busy professionals and students who lack the time to cook or shop for groceries. Additionally, subscription models tend to be more affordable compared to ordering food on a per-meal basis, as subscribing to a plan often entails discounts. Moreover, these models provide customers with a wide range of meal options to accommodate diverse dietary needs and preferences.
While the subscription model in the food industry in India has gained traction, it has faced challenges in becoming a consistently profitable business. Vaibbhav Arora after working with Zomato decided to bridge the gap by launching BhojanTech that offer meals under 100. The B2C offering included seven-day, 14-day and one-month subscriptions for different meal options. While the company gained traction in the initial days during pandemic, it is currently temporary closed with now news of reopening anytime soon. According to Arora, the market is not huge for subscription based food delivery apps in India. He feels that the model is not feasible if one is operating with only few number of subscribers.
One of the primary challenges for subscription-based food businesses is customer churn. Subscribers may cancel their subscriptions after a short period due to various reasons such as dissatisfaction with food quality, limited menu options, or changes in personal preferences. Maintaining a steady subscriber base becomes crucial to sustain profitability.
Implementing and maintaining a subscription model can be costly for food businesses. They need to invest in technology infrastructure, logistics, and customer support to effectively manage subscriptions. Additionally, offering exclusive discounts and benefits to subscribers can impact profit margins.
The competitive landscape and market dynamics in the food industry can result in thin profit margins. Offering discounted prices to attract subscribers while covering operational costs can be challenging, especially for small and medium-sized businesses.
Subscription-based food businesses often face significant overhead expenses related to food procurement, storage, preparation, and delivery. These expenses can erode profitability if not carefully managed, particularly as the volume of subscriptions increases. “If you still see many subscription based food apps in India operating in India that is because many are still running with investors’ money rather than own profit. Not even 5 percent of total such companies have reached break-even,” Abhishek Tyagi, founder od Absolute Food Consultants informed.
The target customer base for subscription-based food services may be relatively small, primarily comprising urban consumers, students, or office-goers. Expanding the customer base beyond these segments can be a challenge and may require additional marketing and promotional efforts.
The food industry in India is highly competitive, with a plethora of options available to consumers. The presence of multiple players, both subscription-based and traditional, makes it challenging to attract and retain customers in a crowded market.
The demand for food can be subject to seasonality and fluctuations, affecting subscription-based businesses. Managing inventory, maintaining quality, and meeting customer expectations during peak and low-demand periods can impact profitability.
Food businesses operating on a subscription model need to comply with various regulatory requirements related to food safety, hygiene, licensing, and delivery. Adhering to these regulations can add complexity and cost to the business operations.
The subscription model in the food industry has undoubtedly made its mark in India, offering convenience, cost-effectiveness, and a diverse range of options for consumers. However, achieving profitability in this model remains a complex challenge. The key lies in focusing on customer retention, delivering exceptional quality and service, optimizing operational efficiency, and continuously adapting to evolving customer preferences. Despite the obstacles, the subscription model holds immense potential for growth and success in India's dynamic food industry. As businesses navigate the path to profitability, those that can effectively address the challenges and consistently deliver value to their subscribers will be well-positioned to thrive in this evolving landscape.
In the current scenario, online ordering has become the reigning trend. These days’ customers are opting for brands that provide maximum satisfactory delivery services. And almost every other restaurant, be it small or big has found accord to the online aggregators’ platform to be able to meet the growing demand of online ordering. While this has posed a huge benefit by every means, one cannot negate the commission levied by these aggregators’ apps on the restaurant. Here is where building a self-owned app serves as a boon to persuade customers of delightful end-to-end experience and build brand loyalty while keeping up with their direct and indirect competitors. Owning a delivery app serves advantageous means by accomplishing direct customer engagement with meticulous planning and execution.
Here are some suggestions from my personal experience that would help in building an application that will help in elevating the communication bridge between the restaurant and customers to build an everlasting relationship.
The well-defined objective for an Easy User-face: The first and foremost step is to have a clearly defined objective and identify the target audience that will help in assembling and organising the app based on user preferences and needs. Thus, a well-tailored app features catering to a simple module make it easy for every age group to identify the app features without undergoing any kind of hassle. This further helps in customer engagement where customers get driven to the exclusive app over the top aggregators.
Streamlining the Ordering Process: A simpler ordering module mapped with quick menu browsing, easy customization, and most importantly, prompt payment method are the primary facets to initiate an easy ordering process. Thus, integrating a secure and user-friendly payment gateway followed by smooth checkout option help in attending to both regular and new customers.
Advanced Ordering Feature: Restaurants should insist on having an Advanced Ordering feature in which customers while placing the order has the liberty to choose a delivery time for later periods of the day or even the next day if they so wish.
Live Chat Feature: An important feature in the current competitive market is Live Chat Feature. This feature enables our users to get instant support instantly from a brand representative. It is important to conduct a live customer support that is manually handled by the efficient feedback team, solving any kind of grievances, placing orders, or handling from easy to supercritical circumstances in a jiffy! It is very important to be on time with your customers need to ensure that there are no hiccups in the delivery operations.
Real-time order tracking: An advanced order tracking system enabling customers to monitor delivery progress in real time is a means of two-way communication between customers and delivery personnel. This further caters to customer satisfaction which is a must to drive the customer force to the self-owned app.
Implementing Marketing Strategy: A very crucial step to ensure that a brand’s app is a success or not is marketing. A well-thought, planned, and properly executed marketing strategy based on the target audience is of utmost importance. Running push notifications, promoting trending and new events via App banners, and running exclusive App discounts are the greatest tools to create a buzz centring on the app. Further elements such as a dine-in payment module, gift cards, and refer & earn features would help in stabilizing the regular customers alongside attracting new customers to the app platform.
Efficient backend Team: Lastly, an efficient backend team with skills across inventory management, order tracking, and handling customer reviews among others can streamline a smoother means of enhancing customer satisfaction and experience towards the brand. Further, the direct communication between customer and restaurant is a beneficial facet that tops over going through the hassle of an intermediatory link of the aggregators.
Hence, having an own brand application has many merits that will give maximum results in short as well as long-term business plans in more than one way. An application that has distinct features with an easy usage interface and pleasing design can instantly increase customer experience leading to an increase in loyalty retention. The app can be a fruitful medium by implementing direct communication with consumers for steady business growth.
In recent years, sustainability has emerged as a critical aspect of the hospitality industry in India. As one of the fastest-growing industries in the country, the hospitality sector has the potential to have a significant impact on the environment, society, and the economy. Therefore, the shift towards sustainable practices has become imperative for the industry's growth and future.
Sustainability is crucial for the preservation of India's natural resources. The tourism industry, which is a major contributor to the hospitality sector, often leads to the depletion of natural resources such as water and energy. With India already facing issues related to water scarcity and climate change, the hospitality industry needs to take proactive measures to ensure that it operates sustainably. Hotels and resorts can implement sustainable practices like rainwater harvesting, water conservation, and renewable energy use to reduce their impact on the environment. Sustainable practices can help preserve India's natural resources and reduce the sector's carbon footprint.
The demand for sustainable tourism has increased significantly in recent years. The rise in awareness among consumers about environmental and social issues has led to a growing demand for sustainable tourism practices. As a result, many travellers are opting for eco-friendly accommodations and activities that promote sustainable tourism. The hospitality industry in India can leverage this trend by implementing sustainable practices that appeal to environmentally conscious travellers. By doing so, hotels and resorts can differentiate themselves from their competitors and attract a growing number of tourists who prioritize sustainability.
Sustainability can lead to cost savings for the hospitality industry. Sustainable practices like energy-efficient lighting, water conservation, and waste reduction can help hotels and resorts reduce their operational costs. For instance, by switching to LED lights and implementing energy-efficient HVAC systems, hotels can significantly reduce their energy consumption and save on their electricity bills. Similarly, by reducing their water consumption and waste generation, hotels can save on their utility bills and waste management costs. Sustainable practices can, therefore, not only benefit the environment but also lead to financial savings for the hospitality industry.
Sustainable practices can improve the social impact of the hospitality industry. The hospitality industry is known for its labour-intensive operations and significant impact on the local community. By implementing sustainable practices, hotels and resorts can create employment opportunities for the local community and improve their quality of life. For instance, hotels can source their products and services from local suppliers, thereby supporting the local economy. They can also implement fair labour practices and provide their employees with a safe and healthy work environment. By improving their social impact, hotels and resorts can build a positive reputation and attract more customers who value socially responsible businesses.
Lastly, sustainability is becoming increasingly important for regulatory compliance. The Indian government has introduced several initiatives and policies to promote sustainable tourism and reduce the industry's impact on the environment. For instance, the Ministry of Tourism has launched the Swachh Bharat Abhiyan initiative, which aims to promote cleanliness, hygiene, and sanitation in tourist destinations. Similarly, the government has introduced several schemes and incentives to encourage hotels and resorts to adopt sustainable practices. By complying with these regulations and initiatives, hotels and resorts can not only avoid penalties and fines but also benefit from government incentives and support.
In conclusion, sustainability is the future of the hospitality industry in India. By adopting sustainable practices, hotels and resorts can reduce their impact on the environment, attract environmentally conscious travellers, save on operational costs, improve their social impact, and comply with government regulations. The hospitality industry in India has the potential to become a leader in sustainable tourism, and by doing so, it can contribute to the country's economic growth while preserving its natural resources for future generations.
Marketing concisely leads to generating awareness and building an image of the brand in the market. It is a broad concept involving multiple strategies and processes of execution to attract bookings and optimize revenue. With the ever-flourishing trends, it becomes inevitable for brands to keep up with the latest ones and continue to engage and preserve the interests of the guests. Moreover, the advancement in terms of technology acts as a fuel to all the marketing practices.
The challenge of being in the hotel industry is the overwhelming amount of competition and corresponding to the swiftly changing demands of the present day visitors. Especially with the growth in popularity of a variety of accommodation choices like apartments and homestays, it becomes even more challenging to stand out against the competition to gather more bookings.
Here are a few hacks that would assist hotels to ace their marketing game:
Be Present Everywhere: In order to win any game it is vital for all to first participate in it. People are present at all places but in this blooming tech-savvy world, it becomes essential for the marketing leaders to understand the demographics of their target segment and study their active presence across platforms. These would be the ideal spaces to narrate the brand stories and offerings to the desired set of audiences only. This practice further enables the marketing leader to broaden their knowledge through the guest engagements witnessed around the brand while keeping a check on their changing behaviors and accordingly framing tailored marketing strategies.
Up your Social Media Game: Social media has now turned out to be more than just a mere tool. It is no secret that guests’ decisions are usually influenced by the easy access to the content of these channels. Moreover, these platforms not only provide the gateway to the brands to highlight itself to their potential set of viewers but also aids the viewer to get a chance to interact with the brand directly. The insights garnered through these mediums assist the brands to convey the appropriate information to related audiences. This protects both- the efforts taken by the brand to reach out to its desired viewers and the viewer’s time by catering to the relevant facts.
Seek Collaboration Opportunities: In the hospitality industry, guests are often referred to as ‘King’ and this is because hoteliers believe in curating memorable experiences for them by extending the best offerings based on their requirements. Collaborating with other businesses whose association accelerates the fundamental intent of enhancing the guests’ experiences, is the most sought after exercise for any hotel property. Such initiatives boost the brand to reach out to wider, specific and segmented audiences yielding appreciable results.
Personalize Experiences: Personalized hotel marketing is a vast topic in the hospitality industry and hence is essential to timely remember the fact that every guest is unique. Adding a personal touch to the marketing plan in every possible form right from extending specially portioned food & beverage selections, AI-focused concierge systems, quick and online check-in processes to data driven personalization of ads cast a strong impression in the minds of the brand viewers. The present day guests seek for more and the marketing framework that involves adapting products or services meets the purpose of improving guest experiences while responding effectively to their needs within a short span of time.
Gather User- Generated Content: There is no other practice, which is certain to champion than the guests sharing their stories about the brand themselves. User-Generating Content is similar to the word-of-mouth, a proven age-old practice assuring publicity of the brand at no cost. In other terms, existing guests validate the quality and value of the hotel based on their experiences, which is not possible in brand-generated advertising campaigns. Additionally, studies over the years have confirmed that guests trust content created by other guests more than content created by brands and are more likely to affect them while making a reservation decision. Both marketers and guests agree that peer-influencers are more effective than any other marketing method. To build a trusting relationship with the guests and their communities, incorporating the authenticity of these user-generated contents into the marketing strategy is the way forward.
There has been so much talks and discussions happening over last few days comparing food delivery majors Zomato and Swiggy to ONDC, a government backed network that has been around since September 2022. As per reports, ONDC has surpassed the 10,000 daily order mark and that’s when Netizens have started comparing the food delivery prices offered by ONDC, Swiggy, and Zomato and have found ONDC cheaper.
The Broader Picture
“ONDC seems to be a creative proposal on the part of the government wherein this platform enables us to sell our food straight to consumers. This platform has an edge over Swiggy and Zomato because of the following reasons - The CAC that exists in Zomato and Swiggy may not exist at all on a network like ONDC. Restaurants listed on ONDC will have access to the data of the customers ordering through this platform,” shared Vikrant Batra, Co-Founder, Dhansoo Cafe, Gurugram who is also of the view that a clear and full picture would only happen if the shift happens at a larger national scale.
Though, people might find this website cheaper to order at this juncture but if you really start ordering from it regularly you would notice that they are charging a price that is equivalent or even higher in some cases to that of other food aggregators. As per a brokerage firm Motilal Oswal, the delivery on ONDC apps is only free for the first order. In the case of a discounted /free delivery, this cost has to be borne by the restaurant (possibly to increase competitive advantage against incumbent duopoly) and is not sustainable. Also, after the first free delivery, in some cases, delivery charges are higher than Zomato/Swiggy.
“ONDC does have some shortcomings like the restaurants going on ONDC must have their own runners and delivery boys for this task. Also, ONDC does not provide the benefit of comparative analysis of different food joints to take a quick decision. Also there is no info on details like time of delivery, expected wait time etc. So, even though the costs are lower in ONDC but we will see the full impact only when it is launched in a full-fledged way,” added Batra.
Commenting on the same, Debaditya Chaudhury, MD, Chowman, Oudh 1590 & Chapter 2 mentioned, “I think that this new ONDC initiative by the Government will change the entire ball game. Acting as medium for a direct link between the business and consumers, businessmen like us will be much relieved from the high commissions that were being charged so far. Also I think it will be super convenient for both the restaurant and consumer parties in terms of dealing with any food complaint and delivery issue, since the direct link will manifest a quicker response that were otherwise going through a big loop of intermediary chain.”
Entering the Delivery Game: ONDC vs Swiggy/Zomato
The online food delivery market is valued at 2.9bn USD where Zomato and Swiggy, both acquiring local players as part of their expansion drive. Others in the market include delivery service by international QSR chains ike McDonald’s that also seen a 60% boom in its delivery business in last 2-3 years, followed by KFC, Domino’s, Burger King and cloud-kitchen brands like Rebels Foods and Curefoods amongst others.
But there’s no denying that Zomato and Swiggy enjoy a duopoly when it comes to online food delivery business in India getting your favourite food delivered at the comfort of the home, they are also criticised for the “middleman cut”, which further increases the price.
“ONDC is the way forward and a step towards a non-partial system where the consumer and vendor/restaurant both gets the benefit. It is more about convenience and transparency. Today’s consumer is far more evolved and aware as are the restaurants. Profit margins are not what they used to be pre-pandemic hence the need to work with a more transparent system and rework dynamics with aggregators where commissions take over,” pointed Vishal Anand, Founder, Moonshine Food Ventures, Gurugram that operates SAGA, NUSH MUSH, CAFE STAYWOKE by adding that ONDC is definitely an initiative that will be beneficial for the guest and the restaurant.
Commenting on the same, Pawan Shahri, Co-Founder, Chrome Hospitality said, “India is on the crux of leading the food and beverage landscape. With the introduction of technology, India's F&B industry is expected to grow and an effort like this from the government is always welcomed. A few years ago, we too had piloted a concept to evade the heavy commission fee charged by third party delivery platforms. This is always favorable from a restaurateur's perspective.”
The experts were also of the opinion that this also opens the opportunity for restaurants to control their own discounts and will not be pushed for any platform discounts. This helps restaurants to build a viable connect with the end customer. For third-party vendors too, this will change the game, they will be pushed to rework their commission models and serve better to both restaurants and customers alike.
“This is a great way to introduce some level of standardization in the overall scheme of things. It is very encouraging to see these efforts by the government, this will definitely boost overall scale in the F&B sector,” added Shahri.
Hence, we can say that though it may become beneficial for restaurants that are running self-owned fleet where they too will be able to make a good use of their fleet to serve customers over ONDC platform. But we really need to keep in mind that other aggregators like Swiggy and Zomato have created a duopoly with a huge investment and good marketing strategy. So, it might take some time and strategies for ONDC to really match up to that.
In today's digital age, negative publicity or reviews can quickly spread and potentially harm a restaurant's reputation. In India, where food is an integral part of the culture, restaurants take negative publicity very seriously and have developed various strategies to address it.
One of the most common strategies employed by restaurants in India is to respond promptly to negative reviews. This involves acknowledging the issue, apologizing for the inconvenience caused, and offering a solution. Many restaurants have dedicated staff to monitor online reviews and social media comments and respond to them in a timely manner. By doing so, they demonstrate that they are listening to their customers' feedback and taking steps to address their concerns.
“Negative publicity can be a challenge for any restaurant owner, but it's important to remember that it's not the end of the world. What's crucial is how you respond to it. By taking a proactive approach, listening to your customers' concerns, and taking steps to address any issues, you can not only turn a negative situation around but also build a stronger relationship with your customers," owner of Barkas chain commented.
Another approach taken by some restaurants is to offer free meals or discounts to customers who have had a negative experience. This is done as a gesture of goodwill and to show that the restaurant values its customers. It also helps to turn the negative experience into a positive one, as customers are likely to appreciate the restaurant's efforts to make things right.
Some restaurants have also taken a proactive approach to negative publicity by investing in customer service training for their staff. By providing their staff with the tools and knowledge to handle difficult situations, restaurants can prevent negative experiences from occurring in the first place. This not only helps to improve customer satisfaction but also reduces the likelihood of negative reviews being posted online.
Respond promptly and professionally
When you receive a negative review, it's important to respond as quickly as possible. This shows that you take customer feedback seriously and are willing to address any issues. Be sure to respond in a professional and respectful manner, even if the review is particularly harsh or unfair. Avoid getting defensive or confrontational, as this can escalate the situation and make things worse.
Take ownership of the issue
If a customer has had a negative experience, it's important to take ownership of the issue and acknowledge their concerns. Apologize for any mistakes or shortcomings, and offer a solution or compensation if appropriate. This can go a long way towards restoring the customer's faith in your restaurant and may even encourage them to come back for another visit.
Use negative feedback to improve
Negative feedback can be a valuable source of information that can help you improve your restaurant's operations. Take the time to carefully read and analyze negative reviews, and look for patterns or recurring issues. Use this information to make changes to your menu, service, or other aspects of your business.
“We have a weekly drill in our restaurant when each staff sits down and discuss all the negative reviews that we received over a week on various platforms like google listing, social media and aggregators. Then the manager inspects and regulates what needs to be done. Through this exercise we have been able to pull down the negative reviews by 40 percent over the last six years,” Joseph Mathew, owner of Bob Bar in Goa shared. By addressing the root cause of negative reviews, you can improve the overall customer experience and prevent similar issues from happening in the future.
Encourage positive reviews
One of the best ways to counteract negative reviews is to encourage positive ones. Encourage satisfied customers to leave a review on sites like Yelp, Google, or Facebook. This can help balance out any negative reviews and show potential customers that your restaurant is well-regarded by others. Consider offering a small incentive, such as a discount or free dessert, to customers who leave a positive review.
The importance of addressing negative reviews
Finally, it's important not to ignore negative reviews. Even if you disagree with the review or feel that it's unfair, it's still important to respond and address the customer's concerns. Ignoring negative reviews can make it seem like you don't care about your customers or their feedback, which can be damaging to your reputation. “Best way is to reach out to each customer to is giving such reviews. To be honest most of the time situation is vague and out of our control. For example spillage issue from a delivery boy. By reaching out rather than ignoring, we have noticed that we have built a strong loyal set of customers who have really appreciated the fact that we addressed their concern,” Sural Bhatia, owner of Kavery Ranchi expressed.
Don't Forget About Staff Training
Staff training is crucial in managing negative publicity. Your staff is the face of your restaurant, and how they handle customer complaints can impact your business's reputation. Ensure that they are equipped with the skills and resources to address concerns professionally and promptly. Provide training on customer service and conflict resolution, and give them access to feedback forms and a clear complaint process. By investing in staff training, you can protect your business's reputation and provide a positive experience for your customers.
Despite their best efforts, negative reviews or publicity can still occur. In such cases, restaurants in India often turn to online reputation management services to help manage their online presence. These services monitor online reviews and comments, identify potential issues, and take steps to mitigate any negative impact on the restaurant's reputation.
Negative reviews are an inevitable part of the restaurant business. However, with the right approach, they don't have to be a cause for concern. By responding promptly and professionally, taking ownership of any issues, using negative feedback to improve, encouraging positive reviews, and not ignoring negative reviews, you can navigate negative reviews in a way that benefits your business and keeps your customers happy.
With the rise of digital commerce and the demand for a frictionless omni-channel dining experience, the market is going through various modifications and customer needs are evolving rapidly. To ensure that restaurants are fully equipped to be able to compete for their loyal clients in the digital realm, today's restaurant ecommerce platforms are becoming more digitalized. The digital solutions are blending in with traditional business practises with ease, and this digitalization strategy has empowered the restaurant space in India.
The concept of digitally empowered restaurants is business centric, designed keeping in mind the needs of business owners in mind. The use of digital solutions is helping businesses grow and streamline their operations, further enabling the restaurants to achieve greater success. Digital solutions are partially automating corporate operations, enhancing their efficiency and minimizing any room for human error, which is crucial in the modern world. It can be challenging to stay on top of the rapidly evolving restaurant technologies. However, to sustain in the domain of restaurant market, there is a rising need to adjust to the shifting trends, to stay relevant and viable in the larger industry.
Globally, the restaurant management software market size value is expected to reach around 7 billion dollars by 2025. These statistics by the Grand View Research show that the industry is growing rapidly and therefore, restaurants feel the need to invest in similar solutions. Today restaurants acknowledge that the POS system improves business efficiency and it cuts other operational costs increasing customer experiences all together. The new technical software consists of assisting restaurants in managing orders, operations, online deliveries, payment processing, reports and analytics, guest identification, re-engagement and much more, all through the use of ‘one-system.’
Top Tech trends that will dominate the restaurant industry in 2023 include:
Digital menus and ordering: When we talk about digital menus, we are not talking about PDF menus or image-based menus but actual digital menus that enable customers to be able to place orders at their convenience without depending on a staff to attend to them. Digital menus offer agility and convenience. A well-developed digital menu provides restaurateurs the power to not only impact the customer experience and match their expectations at the restaurant, but also significantly impact the potential revenue that it can generate. Additionally, it cuts down recurring costs and enables restaurateurs to run pricing experiments with new menu items, most of which were nearly impossible before.
Unifying Digital Ordering: Restaurants can effortlessly manage their delivery orders from numerous partners using a single dashboard. It allows the restaurant to manage both in-dining and delivery orders from one page, expediting the order acceptance process when combined with programs like Bridge by Explorex.
Simplified checkout processes: The check-out procedure is another hassle and challenge for restaurant patrons. The complicated billing process leads to customers waiting up to 20 minutes just to make their payment and leave. Digital solutions come handy at times like this, making it possible for restaurant patrons to check out in under a minute, speeding up the procedure.
Technology for all: Platforms will democratise technology for eateries of all kinds and varieties in 2023. The time when only the top 5% of businesses could afford all the technological solutions that could benefit their operations is long gone. All types of restaurants will be able to utilise technology this year. Innovative revenue model will allow companies to further offer their solutions at nearly no cost while still generating good revenue thanks to innovative revenue models.
The ongoing development of technology is leading to emerging of new trends in the restaurant space. The industry will always be in demand, and with the aid of digital technologies, it will continue to expand its entire business model. Entrepreneurs in the restaurant industry are adopting cutting-edge technological solutions to grow their companies and stay ahead of the industry curve. The industry now has the chance to successfully deploy digital technologies to empower their companies and providing the push needed to strengthen the business model.
Financial Support: After the two yearlong Pandemic and post-pandemic hurdles, the hospitality industry is gradually coming back to its pre-COVID sales and performance. However, most of the restaurants in this segment are still not financially balanced and are still trying to pay the liabilities accumulated during the Covid and post-Covid period. As we all know this industry was neither prioritized during any pandemic surveillant assistance by the government nor considered in any of the strategic policies for COVID recoveries during and post-pandemic by the Government. There have been several pleads and cries from various organizations supporting the industry to the Central and State Governments. However, for reasons not known, the support was very limited and that made many of the restaurateurs shut down their operations or survive with huge liabilities. Hospitality is one of the country's most important industries, and millions of families survive through this industry. It should get its due importance and priorities by the Government in its fiscal, monetary, and administrative policies.
Input Tax Credit: As far as financial policies are concerned, we have been requesting to get us the Input Tax Credit since the time the GST was introduced in the country. More than 95% of Indian restaurants are operating from Leased or rented premises. Right away from the construction period and throughout operations, we have been paying almost 18% of GST on Rentals and other purchases. This ranges from 18% to 28% for various purchases and activities. While all other industries are enjoying the benefits of ITC, only the hospitality industry is kept excluded from this facility. So, we do expect the Input Tax credit facilities from Construction time throughout operations to be allowed to the industry or else, the GST for our purchases for Projects and Rent should be brought down to the 5% category. This will help us recover at least a minor part of the losses incurred by us during the pandemic, over the next few years. Reduced GST on the construction of restaurants or benefits of ITC, will also invite more investment in this segment which will contribute significantly to the Indian economy and will also help build more employment opportunities in the country.
Innovative Welfare Plans: As far as Human Welfare is concerned, currently, there are no special packages or welfare funds or pension plans for the employees in this industry. The hospitality industry is totally into people service and like any other Government employees, they are also serving the people and contributing to the overall service industry. After a lifelong service in the industry, below 5% of the overall employees have some savings for the rest of their life. The welfare of the remaining 95% of the employees is not guaranteed in any manner. While in work also, other than very limited medical facilities like ESI and self-contributed PF, there are no benefits given to the employees in our industry. Government should come out with some innovative welfare plans funded by the central and state Government for the employees in this segment in such a manner which will help them during their employment and be a support during their retirement life.
Single Window Clearance: Finally, getting approvals and Licenses for starting and operating restaurants in many states and cities is very complicated. We are forced to knock on many doors and be behind the authorities for approvals. There should be a Single Window system for the Licenses and required approvals.
I hope the upcoming Union Budget will take care of these long-awaited supports which will help us further flourish the industry, operate profitably, and attract further investments.
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