The scorching heatwave and severe weather patterns sweeping across many regions of the nation have significantly impacted restaurants, pubs, and bars in Indian cities. These establishments are witnessing a staggering decrease of up to 40% in both sales and customer traffic.
According to industry insiders, businesses that rely on al fresco dining or are situated in prominent high street locations are facing the brunt of the downturn. This is particularly evident during lunchtime, with the usual lively atmosphere replaced by mostly deserted tables.
Challenges Faced by Different Restaurant Chains
Priyank Sukhija, CEO of First Fiddle Restaurants, which manages renowned brands like Lord of the Drinks, Miso Sexy, Diablo, Tamasha, and The Flying Saucer Café, remarked that the lunchtime business is nearly nonexistent.
In the national capital, where temperatures reportedly crossed 50 degrees Celsius for the first time on Wednesday, the impact is palpable. Sandeep Anand Goyle, who heads the Delhi chapter of National Restaurant Association of India (NRAI), observes a significant decrease in footfalls, especially in high street locations like Khan Market, Connaught Place, and Defence Colony.
“The heatwave has had a major effect on restaurant sales, especially up until approximately 6 p.m. People are choosing malls over outdoor spaces because they are hesitant to go outside. But there have also been reports of mall air conditioning systems malfunctioning, which raises even more concerns,” he said.
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“People tend to opt for holidays during such extreme weather conditions, which has also played a role in the decline in foot traffic, estimated to be in the range of 25-30%,” added Goyle, who also serves as a director at Essex Farms, the operator of restaurants like Cafe Tesu.
The NRAI represents over 1,000 restaurants in Delhi.
Numerous other cities are also experiencing the effects.
Roshan Banan, managing director of Sagar Ratna Restaurants, noted a 10-15% decrease in consumption throughout North India for the chain. “Such extreme temperatures can suppress appetite,” he commented.
Anjan Chatterjee, chairman of Speciality Restaurants, which oversees chains like Mainland China and Oh! Calcutta, reported a sales decline of 30-40% across various locations, including Kolkata, Mumbai, Ahmedabad, and Delhi-NCR, as soaring temperatures reach unprecedented levels in many areas.
“Such temperatures are unprecedented in our history,” said Chatterjee. People can work up an appetite in the winter, but who would want to go outside for food when it gets over 40–45 degrees and there are tales of heat-related deaths? People find it difficult to digest food, and their appetites fade.”
Chatterjee remarked, “I’ve been advising fellow restaurateurs that the only apparent solution to overcome the heatwave appears to be a ‘yajna’ for the rain god.”
The decline in sales has affected profit margins, leading some restaurants to prioritize deliveries and implement substantial discounts.
Restaurateurs are also concerned about their employees, especially those working in the kitchen.
“Our concern extends to our kitchen staff as well, given that our kitchens are not air-conditioned… We must take that into account,” noted Pranav Rungta, co-founder and director of Nksha Restaurant in Mumbai.
He mentioned that business at the fine-dining outlet in Churchgate had declined by 20% this week compared to the previous week, noting that the heat intensified after May 25th.
Some restaurants are adapting their menus to better fit the climate.
“People naturally have less of an inclination to dine out in the scorching heat, and when they do, they often crave lighter meals and refreshing beverages,” stated Sonali Mullick, head of operations and mixologist at the Bayroute restaurant chain, which has outlets in Cuffe Parade, Lower Parel, BKC, Juhu, and Powai in Mumbai. “This presents a challenge for restaurants, particularly those known for their heavier dishes. We’ve introduced lighter mezze options and cooling cocktails on our summer specials menu,” she elaborated.
Prasuk Jain, founder of Koa restaurant in Juhu, Mumbai, remarked that customers are reluctant to dine outdoors in such weather. “Patrons prefer indoor seating, but due to space limitations, we’re unable to accommodate everyone,” he explained.
Zorawar Kalra, the founder of Massive Restaurants, which operates chains like Farzi Café, Bo Tai, and Papaya, noted that outlets located in malls have fared better in comparison.
Ikram Singh Aulakh, Regional Business Manager for the North at Impresario Entertainment & Hospitality Pvt Ltd, mentioned that SOCIAL outlets located within malls in North India have experienced a rise in foot traffic.
“Eating out and buying items that could go bad in the heat are losing popularity. Because they rely so largely on air conditioning and refrigeration to maintain food safety rules, restaurants and food sellers are experiencing a decline in foot traffic and an increase in operating costs,” said Saurabh Gahoi, vice president of the Ramee group of hotels in India.
“Moreover, supply chain interruptions are complicating the transportation and storage of perishable goods, resulting in delays and increased expenses. This situation is causing fluctuations in the accessibility of food items in nearby markets, thereby elevating prices and influencing consumer decisions,” he elaborated.
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