To start an establishment, we need 16 to 18 essential licencesnow as many departments are involved. So, single window clearance is a must - Kavitha Mantha, Secretary and National Committee member, NRAI, tellsBizz Buzz

Pie in the sky:

• Previous BRS govt okayed single window proposal
• But it couldn’t take off
• NRAI submitted memorandum to Industry Minister D Sridhar Babu
• Food services sector transforming unskilled workers into skill force
• Organised food service mkt in Hydvalued at Rs10,161 cr

Hyderabad: The previous BRS government had announced its intention in 2022 to launch a single windowfor the food service sector here to fast track clearance of licenses and ease of doing business (EoDB) through TS-iPass portal. Till date, the single window for establishing business in this sector has not been implemented, according to representatives of the Hyderabad chapter ofthe National Restaurant Association of India (NRAI).

“We have to knock on different government departments’ doors every time we establish a business. To start an establishment, 16 to 18 essential licences are needed as there are many departments involved. So, single window clearance is a must.During the previous government’s tenure, they had agreed upon it virtually. Hyderabad NRAI has been working with the government for a single window that will clear all the licensesneeded to open business here. We have met with Industry Minister D Sridhar Babu to make him understand the scale of business we are running,” KavithaMantha, Secretary and National Committee member, NRAI, told Bizz Buzz.

The other major demand the sector has put forward in front of the government is for an industry status. She pointed out that despite contributing a significant amount to the country’s GDP, the hospitality/food service sector doesn’t have a Ministry. She added, “it is not the only fact that we contribute two per cent to India’s total GDP, but we are also converting unskilled labour into skilled. It will be challenging for us unless we are recognised for what we actually offer to the government.”

On the series of inspections conducted by the Food Safety and Standards Authority of India (FSSAI) Task Force set up by GHMC, Manthasaid that the association will be working with the authorities for the formulation of well-defined guidelines. She said, “We need clear cut guidelines with regard to hygiene and operation. The current guidelines are very complicated and it needsto be updated too. Compliance is low because all the onus of compliance is on the restaurant owner.”

Releasing the fifth edition of NRAI India Food Services Report 2024, Mantha said that the organised food service market in Hyderabad, valued at Rs10,161 crore, is reported to be growing at seven per cent CAGR, including online and offline. The city ranks at the sixth position among the top 21 markets, with Greater Mumbai at the first position with a market valued at Rs55,181 crore.

For the food service sector to improve its ranking, SrinivasSampath, Hyderabad Chapter Head, NRAI, said that “we have to up the game, improve our service to achieve better ranking. A business can scale up only when the staff is nurtured and they take up ownership of the place and efficiently run the show even if the owner is present or not. For a restaurant to succeed, 40 to 50 per cent of the business is dependent on taste, while the rest is service, whereas ambience is only an opener for drawing in customers.”

Listing other factors, Sampath said that Hyderabad needs more number of business pockets as it’s mostly concentrated in Jubilee Hills. In addition, compared to large format restaurants, the smaller formats offering specialty cuisine bring in more success and revenue, he added.

The city hastotal 74,807 restaurants, of which organised are 41,144. The industry here is dominated bycloud kitchens with 16,379 facilities functional, followed by 13,544quick service restaurants, 6,468 casual dining spaces, and 3,000 cafes.People in Hyderabad spend Rs990 per visit per capita on dining out, wherein67 per cent prefer South Indian,followed by Indian snacks preferred by 59 per cent, and North Indian by 31 per cent.