Delhi ‘O’ Delhi: Restaurateurs bring to table recipes to make city top culinary hub

New Delhi: The way to a Delhiite's heart and soul is undoubtedly through his stomach. The food services report released by the National Restaurant Association of India (NRAI) in 2024 underlines the city's expansive appetite – accepting the rich and bold flavours of cultural transformation, from the Mughal to the modern—making restaurateurs experiment and explore ways to woo and enhance the palate of every city foodie. However, opening a restaurant in the city is no piece of cake, rue the hoteliers, who hope that the next government that comes to power will address the needs of this thriving industry.

Let's bring to the table some numbers. As per NRAI, Delhi is the second-biggest organised food services market, estimated to be over Rs 42,000 crores, after Mumbai with 66,230 restaurants in the organised segment. The report states that an average Delhi resident consumes non-home cooked food almost nine times a month, dines out four times a month and orders in almost five times a month. On an average, Delhi diners spend Rs 1,165 every time they dine out, the report states.

Corroborating these figures, restaurateur Zoravar Kalra, founder and MD of Massive restaurants and vice president of NRAI, calls the restaurant sector "the biggest entertainment industry right now—bigger than cricket, larger than the Indian movie industry". And yet, Kalra says, the industry needs support and encouragement from the govt that comes to power in Delhi after the elections on Feb 5.

On expectations from the incoming govt in Delhi, former NRAI president Kabir Suri says, "Ease of doing business has been a long time ask. The best start to the industry under the new government would be that pressing issues of the industry that are always swept under the rug are acknowledged and addressed after elections."

One of the long pending concerns, Suri says, is that there is no dedicated department for the industry, which means a restaurateur in order to seek a licence has to go through multiple departments, leading to duplication of licences.

"Every restaurateur needs clearances from various departments – fire, excise, police, MCD or NDMC and the Delhi pollution. A delay from any department leads to a delay in the project and hurts a restaurant financially," says Suri, stressing on the need for a centralised platform to obtain licences and regulations.

Sandeep Goyle, Delhi chapter head NRAI, raises certain key issues in the report. "The challenges that need to be addressed include the need for multiple licences, restricted operational hours, a lack of an effective centralised platform for obtaining licences and regulations regarding serving food and beverage in open areas, among others. Resolving these issues is essential for the restaurant industry in the city to realise its maximum potential."

For the industry's growth to continue, restaurateurs hope Delhi takes a lead in installing a dedicated department and pushing for input tax credit on GST for the sector. NRAI had also written a letter to the LG recently requesting his intervention for resolution of excise, fire NOCs, service in open areas and licensing and documentation related issues faced by the industry.

Minakshi Singh of Sidecar says she hopes rules in adjoining Noida and Gurugram become same for Delhi as well so that businesses are not lost to adjoining markets.

Highlighting how the different rules in Noida and Gurugram affect the business in Delhi, she says, "The minimum drinking age and operation hours are examples of different rules. Delhi too should have a minimum drinking age of 21 years, instead of the current 25 years, to promote responsible drinking."

On how Delhi bars have made it to some of the world's top lists and are wooing tourists, Singh says, "Ease of business needs to be looked at as good dining options will promote F&B tourism in Delhi." She says that higher taxes are making it expensive to drink at bars and hopes the duties will be reduced.

Commenting on the ongoing election phase, Navdeep Sethi of Klap and Khi Khi is worried about the ‘dry days' ahead. He argues it may make sense to stop alcohol retail sales from shops but questions the logic behind stopping liquor sale at bars and restaurants on election days or public holidays. Sethi says it takes almost 9 months for a project to go live from the time they sign a property and limited working hours, dry days, implementation of bans and new notifications derail their business.

While his restaurant has survived for over 80 years, Akash Kalra of United Coffee House says, the Delhi restaurant industry needs policy and infrastructure support. He says high street markets that were retail and dining hubs are facing stiff competition from newer developments and better experiences in Gurugram and Noida. He says dining out needs to be a comfortable experience which is only possible when infrastructure is upgraded.

Akash also hopes restaurateurs are involved in policy making in future. "We need to get people to dine out at local markets more. We need cleaner markets, better parking facilities and traffic management, open air dining facilities and food festivals. We need liberal policies and a vibrant environment where women feel safe to dine out post 10 pm. We need people who understand our industry to liberalise the sector," he says.

An industry veteran, Manpreet Singh Binky, who runs iconic brands Zen and Fujiya, says property tax needs to be the same in NDMC and MCD areas as higher taxes are impacting businesses in markets such as CP, Khan Market and Malcha Marg.

On how poshest areas of Delhi are pockmarked by potholed roads and parking woes, Binky says most people are moving away from dining at restaurants in markets to malls. He hopes carrying out infrastructural upgrade and resolving parking issues and bringing in clarity on rules pertaining to open dining will get people back to experiencing outlets in the markets.

A bar owner says, there was a time when people drove far to dine and drink. Now, fearing traffic, most like to stay closer home. "Untimely rains, water logging, extreme cold or hot days, pollution also hurt food business as people either visit malls or avoid local markets," he says. Due to longer working hours, a restaurateur says, people usually reach around 10 pm for dinner. "With the last order placed around 12.30 pm, most outlets have only a two-hour dinner business window, which is too less," he says, adding, "It should be increased up to 2 am at least."