A paneer-less future for Gujarat’s street food joints?

But as enforcement reaches food businesses that relied on cheaper substitutes, the debate is moving beyond what one is served to what they can afford to pay.

While the organised restaurant industry says that the ban is unlikely to cause much disruption, informal kitchens and other smaller establishments are most likely to face the brunt.

A popular sandwich vendor in Vadodara’s business neighbourhood of Alkapuri said while his customers frequently ask for extra cheese in sandwich and other snacks, the economics of a cheap roadside or takeaway business leave little room to absorb a steep rise in ingredient costs.

“If we start using only expensive genuine products, we will have to jack up our prices. But our customers come to us precisely because they want a filling snack at an affordable cost. If the prices escalate too much, they will simply go elsewhere,” he said, not wanting to be named.

A Punjabi food restaurant owner in Vadodara’s old city area says customers often compare prices offered by smaller eateries and established restaurants.

“People come here because they want Punjabi food at a price many can afford. We cannot simply increase the price of every paneer dish by Rs 50 or Rs 100. Some of our customers will not be able to pay for the food. Also, we cannot run the business by selling food below a cost,” he says.

For cloud kitchens, the pressure is compounded since they must also pay a commission to food delivery platforms on every order, whose packaging incurs additional costs, says a cloud kitchen operator requesting anonymity. “We already work with a very tight margin. There are customers who order because our food is cheaper than restaurant food. If we replace every analogue product with genuine dairy and increase the prices, we risk losing that entire customer segment. At the same time, we cannot violate the government’s notification.”

Contrarily, brand consciousness restrains bigger players from compromising. Sanjay Kabrawala, the owner of Ganesh Egg Centre at Begampura in Surat, says his family, which has been running the business for more than six decades, has chosen to absorb the higher input costs.

“Our business is over 60 years old, and our first preference is to give good-quality food. As a result, we have a huge customer footfall. We charge more than other egg stalls. Many people have less money to spend on food and prefer other egg stalls. We use branded cheese and butter and never compromise with our products because we have a brand and our connection with customers to look out for,” says Kabrawala.

Nitin Nanavaty, the head of the National Restaurant Association of India’s Vadodara chapter, points out that among 2,000-odd food businesses listed on delivery apps in the city, only 150 are member restaurants of NRAI, which have been complying with the health and safety regulations even before the state government’s decision.

He says that the current ban on analogue milk products will mainly affect the B- and C-grade restaurants and street vendors, who form a sizeable group and cater to mass customers.

Nanavaty adds: “The 150-200 registered members of NRAI are conscious about using original products as we believe that public health safety is crucial… So, the association has put out notifications to only use real dairy products. We regularly host events to emphasise on cleanliness, pest control and quality. The problem will mostly be faced by street vendors and unlicenced kitchens.”

Nanavaty says the registered hotels regularly undergo FSSAI checks, clean kitchens, list vegetarian and non-vegetarian options in kitchens, prepare a health report of staff every six months and a water report, and are equipped with product-checking storage. The checks are conducted by the civic body, he adds.

“In the last three years, the Food Safety and Standards Authority of India (FSSAI) allowed the manufacturing of analogue paneer if it is properly labeled. The problem arises when public health safety is jeopardised because of the widespread consumer deception, especially by lower-grade restaurants and street vendors, who pass off analogue paneer and cheese as real milk products.”

Meanwhile, Nanavaty points out a practical difficulty facing enforcement agencies. Once paneer is cooked in a rich gravy, he says, then distinguishing between genuine and analogue paneer becomes extremely difficult.

The ban can impact Punjabi food the most. At smaller Punjabi food eateries and takeaways, paneer forms the basis of several popular dishes. A switch to genuine paneer will raise input costs, potentially forcing vendors either to absorb the difference or pass it on to customers.

The concern is not necessarily that all small establishments use substitutes, but that the price differential had created a market for them.

Echoing Nanavaty’s sentiments, South Gujarat Hotels and Restaurant Association Vice-President Sanath Relia says established hotels and restaurants are unlikely to be significantly affected because their brand reputation depends on consistent quality. Relia said, “The hotel and restaurant industry has customers who place their faith in the quality of food served, and we do not compromise with our brand image, and prices are fixed… Analogue products are used by street food stall owners who sell food at cheaper rates. Youngsters, especially, prefer more cheese in snacks and other items. Street hawkers have to compete with one another and therefore keep prices low. They may not follow food safety rules and may use substandard items.”