Licensed restaurants will exceed pre-covid revenue this year | Chennai News
Chennai: Recovering from the slowness of the pandemic, the authorized The Indian catering sector is expected to surpass the pre-Covid level turnover of 4,23,865 crore. Post-pandemic, restaurant vertical delivery revenue is up a steep 30% from 2019, even as stand-alone restaurants that have survived Covid are opening new branches.
The National Restaurant Association of India (NRAI), a body representing more than five lakh restaurants, quick service restaurants (QSRs), bars and cloud kitchens, has estimated that another 50,000 restaurants will be added in the country by next year. It comes amid a permanent closure of 30% of restaurants due to the impact of Covid and the sector’s revenue falling by 50% and 35% in 2020 and 2021 respectively. In 2019, around six lakh restaurants spread across India had generated revenue to the tune of 4,23,865 crore. “We will potentially exceed that number this year, if I take a 12-month run rate,” NRAI President Kabir Suri Tell yourself. While licensed stand-alone restaurants are seeing 30-40% growth this year, compared to 2021, their annual revenue is expected to increase by 20% next year. Currently, the country is home to over 5.2 lakh restaurants and the number is expected to increase by 10% by 2023.
Covid has emerged as a game changer by increasing delivery volumes and value. Suri, who is also the co-founder of Azure Hospitality Pvt Ltd said delivery revenue was only 10% in the pre-Covid period, but has since risen to 30% at present.
Although meals at stand-alone restaurants are on time, he said, delivery is a necessity. he said, “Self-contained restaurants will never be replaced by deliveries.”