Restaurants in Gujarat will suffer losses in the long-term as they are losing out on the alcohol revenue, a hotelier said at Ahmedabad Management Association (AMA) in Ahmedabad Friday. Most of the restaurants in the state do not serve alcohol due to prohibition.
“The biggest cost (incurred by restaurants) is rent… The second largest cost is skilled labour. In any restaurant, a good chef is the key… These two are the biggest challenges for any restaurant. That’s why, in Gujarat, not being able to serve alcohol in restaurants plays a big part because a majority of the profit in restaurant business comes from it. That’s what sustains the business, not the food,” said Nirav Akshay Oza, CEO of Efcee Hotels. He was speaking on ‘Ahmedabad Next: Foodpreneurs Stories’ at AMA.
Oza added that for restaurants in hotels, a critical reason for them not doing well is often the “intimidating image” that can pose a barrier “for someone going to eat pulao and raita”. In this regard, Oza rated a mixed forecast for the days ahead for the food industry. While hotels in cities like Ahmedabad will do “phenomenally well”, he believes that its successes will be limited to the rooms aspect and will not create much of a dent in the restaurants part of hotels. With hotel staffing seeing a shortage, Oza also implored that one way of retaining employees is by paying them more.
Supriya Sharma, partner at BentoB, a restaurant that serves Japanese cuisine with outlets in Ahmedabad and Vadodara, shared her business model where they have stayed away from facilitating online orders.
Sharma listed that the idea behind her restaurant was to have a community in Ahmedabad that appreciates Japanese cuisine and the perfection it involves rather than going in with the idea of making it a profitable business.