Gujarat is looking to put its emerging business and tourism destinations on the restaurant map, with the National Restaurant Association of India (NRAI) expecting 25-30 national and international restaurant brands to open outlets in GIFT City over the next four to five years.
The timeframe for the proposed expansion broadly coincides with Ahmedabad hosting the 2030 Commonwealth Games.
However, the restaurant industry’s Gujarat opportunity is not limited to the financial hub. The state government is also planning to develop plug-and-play facilities at destinations such as the Statue of Unity, Dholavira in Kutch, and Saputara to allow restaurants and food brands to establish outlets at these locations, Sagar Daryani, president of NRAI and co-founder and CEO of Kolkata-based Wow Momo Foods, told FE.
At its fifth Food Delivery Summit in Ahmedabad on Thursday, the association is facilitating meetings between restaurant brands and GIFT City developers, in coordination with the GIFT City administration.
Daryani further said that the restaurant concepts that had earlier stayed away from the state are now showing interest, including international and NRI-backed brands.
However, the industry’s pitch is not based only on GIFT City’s special regulatory environment. NRAI representatives said Gujarat’s food market itself has changed substantially, making it easier for restaurant brands to build a customer base.
“Gujaratis now can have a vegetarian Khao Suey. Five years ago nobody thought Mexican, Burmese, or Korean food would be available in Ahmedabad,” Daryani said.
The state is increasingly developing a reputation for fusion food and has more pizza outlets than any other state, he said. The market remains predominantly vegetarian, but that too is creating opportunities rather than limiting them. Daryani said vegetarian food accounted for around 70% of sales at his restaurants in Ahmedabad.
The restaurant industry also does not see Gujarat’s prohibition policy as a hinderance for expansion. Anal Kotak, chapter head of NRAI Gujarat, said the state’s consumers and entrepreneurs had created a market that did not necessarily depend on liquor. Citing restaurants such as Komo by Kaffa, she said Gujarat had demonstrated that food businesses could build successful formats without relying on alcohol. However, they did appreciate the Gujarat Government’s move of reducing the VAT of 65% on liquor to 25%. The NRAI president further remarked that the way things are moving, liquor could be available in Ahmedabad by the time of the Commonwealth Games scheduled for 2030.
Food delivery is another area where the industry sees scope for improvement. Although delivery in Gujarat is not yet at the levels seen in markets such as Hyderabad and Bengaluru, NRAI believes the changing consumer base and expansion of organized food businesses could drive higher penetration. The association is using the Ahmedabad summit to bring the Gujarat restaurant ecosystem and national brands closer.
“We are showcasing Gujarat to the rest of the country to more than 1,500 restaurateurs. We believe that the food ecosystem in the state has evolved over the years, and it is high time that the state gets its due recognition,” Daryani said. The summit is expected to bring together more than 5,000 attendees, 1,500-plus brands, and delegates from more than 30 cities. Technology, franchising, direct ordering, artificial intelligence, loyalty, marketing, and restaurant valuations are among the issues which would be on the agenda.
