25% Indian Restaurants Permanently Shut Due To Pandemic; 24 Lakh Jobs Lost

Indian Restaurants Permanently Shut
by Suchismita Pal
by Suchismita Pal291

The COVID-19 pandemic had been a harsh blow to the restaurant sector of the nation. Prolonged lockdowns and lack of businesses have resulted in the permanent shutdown of many Indian restaurants. The National Restaurant Association of India ( NRAI) data has revealed that nearly 25% of Indian restaurants have closed down permanently since March 2020. Nearly 24 lakh people in the sector lost their jobs.

Indian Restaurants Permanently Shut

Picture Credits: Times of India

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The Size Of Restaurant Sector Halved Due To The Pandemic

Indian restaurants bore the brunt of the strict lockdowns during the first and second waves of the pandemic. While some survived on deliveries, some others were entirely deprived of business due to restrictions. Even after the country opened up, these establishments struggled to get back the pre-covid capacities. The restaurant sector in India employs around 73 lakh people. The pandemic almost halved the size of the industry to nearly 53%.  The roadside eateries and small dhabas were worst-hit as after the pandemic, people started giving importance to safety and hygiene.

Indian Restaurants Permanently Shut

Picture Credits: Pixabay

Restaurants To Start Direct Deliveries To Boost Profits

According to a Bloomberg report, the industry experts are now aiming to re-strategise the business models to deal with the challenges. While dine-ins were halted for several months, the food delivery culture has got a boost during the pandemic. Thus, many restaurants are planning to start direct deliveries too, apart from delivering through food aggregators like Zomato and Swiggy. Also, Quick Service Restaurant chains like KFC and Domino’s recovered at a faster pace than other restaurants as they had launched counter pickup and home delivery facilities much before the pandemic.

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On that note, a year back, our CTO Kamiya Jani had a conversation with NRAI President Anurag Katriar on the revival of the F&B industry post-pandemic:

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