Weak rupee hits fine dining
Updated: Aug 10, 2013 03:55:59pm
New Delhi, Aug 10 (KNN) Five star hotels and fine dining restaurants have registered a significant decline to the extent of 20 per cent during the last three months owing to falling rupee, according to recent findings of the associated chamber of commerce and industry of India (ASSOCHAM).
The study revealed that fine dine market registered a decline of over 20 per cent compared to last year in major metropolitan cities like Delhi-NCR, Mumbai, Chennai, Hyderabad, Ahmedabad etc.
Releasing the ASSOCHAM paper titled “Weak rupee dampens sprits of fine dining restaurants” earlier this week, Secretary General ASSOCHAM, D S Rawat, said due to fall in rupee, the five star hotels and fine dining restaurants are revising their menu card rates as the weak rupee pushes up prices of imported food ingredients and spirits.
With negative market sentiments of an economic slowdown and weak rupee, the fine dine market segment may lose its sheen, Rawat added.
The paper further points out that due to rupee depreciating against major foreign currencies, prices of imported products have shot up by as much as 30-35 per cent. It appears that some restaurants import 85 per cent of their ingredients from Japan, France, Italy and Thailand for their signature dishes.
With a growing number of Indians travelling abroad, they are well versed with fine dining and want when they return. Further, the international fine dining restaurants in five-star hotels and growth in the mall culture have boosted the demand for fine dining restaurants.
The rupee devaluation has majorly impacted imports of meats and seafood to cheese and legumes. Nearly 60 per cent of food produces at specialty restaurants are imported and do not have local substitutes here in India; as a result they are bound to revise the prices of their menus.
The current size of the Indian food industry stands at Rs 2,50,000 crore per annum and is expected to grow at 12 per cent to touch a staggering Rs 4,25,000 crore by 2018.
In terms of market segments, the Quick Service Restaurants and casual dine-in formats account for nearly three-fourths of the total chain and cafes make up 12 per cent, with fine dining outlets, pubs, bars, clubs and lounges comprising the rest, adds ASSOCHAM.
The paper also highlighted that imported spirit prices increased between 7 per cent and 12 per cent in three months, the bars, nightclubs and family-dining chains also seeing a similar bump. (KNN)
The study revealed that fine dine market registered a decline of over 20 per cent compared to last year in major metropolitan cities like Delhi-NCR, Mumbai, Chennai, Hyderabad, Ahmedabad etc.
Releasing the ASSOCHAM paper titled “Weak rupee dampens sprits of fine dining restaurants” earlier this week, Secretary General ASSOCHAM, D S Rawat, said due to fall in rupee, the five star hotels and fine dining restaurants are revising their menu card rates as the weak rupee pushes up prices of imported food ingredients and spirits.
With negative market sentiments of an economic slowdown and weak rupee, the fine dine market segment may lose its sheen, Rawat added.
The paper further points out that due to rupee depreciating against major foreign currencies, prices of imported products have shot up by as much as 30-35 per cent. It appears that some restaurants import 85 per cent of their ingredients from Japan, France, Italy and Thailand for their signature dishes.
With a growing number of Indians travelling abroad, they are well versed with fine dining and want when they return. Further, the international fine dining restaurants in five-star hotels and growth in the mall culture have boosted the demand for fine dining restaurants.
The rupee devaluation has majorly impacted imports of meats and seafood to cheese and legumes. Nearly 60 per cent of food produces at specialty restaurants are imported and do not have local substitutes here in India; as a result they are bound to revise the prices of their menus.
The current size of the Indian food industry stands at Rs 2,50,000 crore per annum and is expected to grow at 12 per cent to touch a staggering Rs 4,25,000 crore by 2018.
In terms of market segments, the Quick Service Restaurants and casual dine-in formats account for nearly three-fourths of the total chain and cafes make up 12 per cent, with fine dining outlets, pubs, bars, clubs and lounges comprising the rest, adds ASSOCHAM.
The paper also highlighted that imported spirit prices increased between 7 per cent and 12 per cent in three months, the bars, nightclubs and family-dining chains also seeing a similar bump. (KNN)
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