Thinking of opening a restaurant? Riyaaz Amlani talks about the risks, rewards and consumer segment to focus on

Q: What’s driving this growth in restaurant spending despite economic growth concerns? Is it a cultural shift?

Riyaaz Amlani: Yes, there’s definitely a cultural shift. Earlier, when we were growing up, families would dine out maybe two or three times a year, say on birthdays or special occasions. Today, eating out has become much more frequent. In urban areas, the average has gone from four times a month to about 11–12 times. People want to celebrate life more. For double-income households, it’s often more convenient to dine out than cook, especially with the rising cost of hiring cooks and the time constraints of working couples. Eating out has become normalised, and then there’s a new audience that’s added every year.

However, the number of restaurants has increased by around 25 per cent, and the market overall is growing at 10–15 per cent annually. Naturally, there’s some pressure, but quality restaurants tend to perform well, even in tougher times.

Q: Who is this new audience — people who are joining the workforce?

Riyaaz Amlani: Yes. People joining the workforce, the first-jobbers, second-jobbers, and even college students, who now have a bit more disposable income, like to go out and spend.

Q: How has growth played out across markets, beyond Mumbai and Delhi? Are tier-2 and tier-3 cities catching up?

Riyaaz Amlani: Absolutely. While metros like Mumbai, Delhi, and Bengaluru still lead, aspirations in tier-2 cities like Indore, Jaipur, and Chandigarh are growing fast. People are going out more frequently in these markets too. The number of restaurants in smaller cities has grown 30–40 per cent in some cases, while overall consumer spending might have grown 15–20 per cent. So while the market is expanding, individual restaurants may face degrowth due to increased competition and choice.

Q: With so many new restaurants opening in Mumbai, is the space becoming overcrowded?

Riyaaz Amlani: It is definitely becoming crowded. Many are focusing on the top 1–2 per cent—the wealthy, whose disposable incomes aren’t really affected by inflation. That’s the audience premium restaurants tend to serve. We’re seeing pressure on more affordable segments like QSRs (quick-service restaurants), but premium restaurants are firing!

Q: When deciding to open a new restaurant, what factors do you weigh? Do you consciously look for new markets to avoid saturation?

Riyaaz Amlani: We look for a balanced mix of residential and commercial presence. Areas with high footfalls, slightly affluent populations, and a blend of corporate offices and residential housing tend to do well. Yes, we do look at new markets. For instance, as the city grows into suburbs like Thane, Mira Road, and Bhayandar—where double-income nuclear families are moving—there’s growing aspiration and demand is there, too. Offices are coming up in these areas as well, so the market is naturally expanding. We are currently taking multiple brands of ours to Borivali, including Social, Smoke House Deli, Slink & Bardot and Mezcalita (run by his brother Rizwan Amlani).

Q: Recently, the Maharashtra Government increased the excise duty on liquor—what does that mean for restaurateurs?

Riyaaz Amlani: From the state’s perspective, alcohol and real estate are the only two major revenue generators outside of GST. But we feel this hike is like killing the golden goose. Eventually, it’s the customer who ends up paying more. Prices have gone up 20–25 per cent. If someone used to spend Rs 1,500 on a cocktail, they’ll now pay Rs 2,000. That affects consumption. They might go out three times a month instead of four, or drink less. That hits both the customer and the restaurant. A 25 per cent drop in business is massive. We’re talking about an impact on around 30,000 restaurants and over 3 lakh employees in the bar trade across Maharashtra.

Q: You’ve been vocal about the need for ease of doing business in the restaurant industry. Where do we stand today?

Riyaaz Amlani: We’ve seen some positive steps like Delhi recently abolishing the police licence requirement. Maharashtra did that seven or eight years ago. When I started out with the NRAI, we needed 36 different NOCs and licences. That number has come down to 28 now—but in practice, we still need 28 approvals. A restaurant is often ready long before the paperwork is done, which can financially cripple small operators even before they open. We’re trying to push the Government to move from a licensing system to a registration model, where you notify the government you’re operational, and they can inspect you at any time. Because we shouldn’t have to wait endlessly for permissions.

Q: Finally, a lot of people dream of opening a restaurant. What’s your one piece of advice for them?

Riyaaz Amlani: Don’t do it for the glamour. It might look exciting from the outside, but running a restaurant will take everything you’ve got. It’s a full-time job. If you’re not ready to give it your all, don’t get into it. It’s not something you can do on the side.