Riding on the boom in the food and beverage business, Chandigarh is all set to become the food capital of the region. Over the past few years a number of world wide chain restaurants like Mcdonalds, Pizza Hut, Subway etc have set their base in the city. With many new formats like Fine Dining, Cafeterias, and Lounges emerging, the retail space is offering a wide array of choices for the food lovers. Taking the cue many new entrepreneurs have also entered the market or are on an expansion spree to tap the burgeoning opportunities.
Speaking to FE on the reasons behind the upsurge in the restaurant business, Bobby Garg, director, Oven Fresh said, “The city has witnessed a perceptible demographic change. Many migrants including young professionals and students have settled here. It has further pushed the demand for the fast food joints.”
Many businessmen also feel that the city’s well planned infrastructure, healthy environment and high security makes it a lucrative destination. Commenting on the market, Mandeep Grewal, director, Bakes and Beans, a caf? cum restaurant said, “The people in the city are experimenting a lot with their cuisine. The trend of eating out has finally caught up with them. They are making a beeline for eating joints.” He further added that Chandigarh, like metros, has a segment of double income couples with exorbitant spending power. This segment has further bolstered the sales. Meanwhile, Vinod Mittal, MD of Nik Bakers added, “The region is growing with many sectors being developed in the periphery. It has the potential to absorb more cafes and restaurants. This increase in growth has created market for niche restaurants and brightened up the prospects of business.”
In the era of neck to neck competition, Capt Mohan Bir Singh owner Hot Millions chain feels that to survive in the market, the restaurants have to constantly reinvent themselves. It is a service-based industry. “The quality of food and services rendered will decide the success and failure of any venture. Branching out to different cities and segments will help the businesses stay a float. Innovations with products and tie ups with other retailers during special occasions also help them with sales,” he said.
According to market experts, an average food joint with an area of 2,000 square feet will have to generate revenue of Rs 12-14 lakh to break even. Since rentals are high and prices low, only those who will economise on their costs will benefit in the long run.