Speaking at an event organised by the National Restaurant Association of India (NRAI) on the changing dynamics of the restaurant industry post COVID-19 and the way forward, several restaurant owners said they felt the need to become more efficient so that they can reduce fixed costs and focus on quality of food.
Anurag Katriar, President of NRAI, said that enough had been spoken about the crisis in the past one year and it was time to look ahead and explore opportunities.
“We may need to redesign our offerings and retool our business models, but it is absolutely incumbent upon to move beyond the pandemic-induced status quo and regain our lost vibrancy.” Mr. Katriar said.
Strong business model
Stressing the importance of a strong business model to make the business more profitable and sustainable, Riyaaz Amlani, CEO & MD, Impresario Entertainment, said the pandemic has taught them more efficient management. “We need to develop a viable alternative to aggregators. Use your own fleet for delivery and remember three D’s for a sustainable business – delivery, discovery and digital mechanism,” Mr. Amlani said.
He added that in India from the time a customer enters the restaurant to the time the food arrives, he makes contact with numerous employees. This, he feels, needs to change with people starting to multi-task.
Share of service tax
“A small but efficient team is better as the service tax that the customers are charged then gets distributed among fewer employees. This should encourage them to work more efficiently,” Mr. Amlani said.
While many restaurants were forced to shut down, Sagar Daryani, Co-Founder & CEO, Wow! Momo and Wow! China said that the pandemic gave him the opportunity to open more than 50 new outlets. He said that the trick is to go lean and deliver the right food and food quality to ensure that the customer will come again.
