Restaurant industry contracts 53% due to pandemic: NRAI

Restaurant industry contracts 53% due to pandemic: NRAI

The food services industry witnessed a massive decline of 53% in FY2021 compared to the previous financial year, reeling under the impact of the pandemic, a new report released by industry body NRAI, which represents over 5 lakh restaurants, said. In FY21, Indian food services industry contracted severely leading to permanent closure of over 25% of restaurants which resulted in job losses of nearly 24 Lakh people, the report said.

The report which mapped the Covid impact on food services, said globally, the industry was among the hardest hit by the pandemic, with India being no exception.

In FY21, the industry in India declined by 53% and was estimated to be worth Rs 2 lakh crore, compared to Rs 4.2 lakh crore in FY2020.

The report, however, said that with normalcy returning and consumption pickup, the industry is expected to recover and reach a size of Rs 4.7 lakh crore.

The industry employs about 73 lakh people and is one of the largest employment generators for the economy, it said.

The report mapped insights from food business operators, aggregators, manpower and staffing agencies, raw material suppliers, logistics, technology and real estate sectors. NRAI president Kabir Suri, also co-founder of Azure Hospitality, said the report would be crucial for industry to garner the much needed support from the government for sustained growth.

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