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U.Bharath (cbedit@imaws.org)
Major food delivery apps have been charging exorbitant commission rates from restauranteurs in Chennai, and this unfair trade practice has been a recurring phenomenon affecting restaurant owners in Chennai city, due to which many have dropped out of business bemoaned M. Ravi, President of the Chennai Hotels Association ( CHA)
“The food delivery aggregators are charging over and above the prescribed 20% and go up to 35% due to which restauranteurs suffer enormous losses, and the small players in the restaurant industry, who are unable to cope with this huge demand and other running costs have been dropped out of business in the recent years” he noted.
While on the one hand, the food delivery aggregators help expand the customer base of restaurateurs in Chennai, on the other, their exorbitant demands have only diminished the business potential of restauranteurs said M. Ravi, who spoke to Kitchen Herald on the recent trends and developments in the hospitality sector Chennai and flagged certain issues as affecting their business prospects in a big city like Chennai.
Waste collection, a double whammy
While noting that the collection and disposal of solid waste, has not been an up to the mark and affecting the hoteliers, he said that the hoteliers are facing and fighting this every day problem.
Ravi , also, alleged that the restauranteurs attached to CHA are forced to shell out money to the private waste collection agencies, which are entrusted with the collection and disposal of solid wastes every day, despite paying a waste tax to the civic body.
“ Even though we pay a garbage tax to the Greater Chennai Municipal Corporation, we are again forced to pay to the private agency. This is a double whammy, and we are in an unenviable situation. This is more or less like paying double tax. The waste collection mechanism has to be streamlined further to lessen our burden of running the business,” M. Ravi said, and added that the “respective civic bodies have to find an amicable solution to the ever-growing kitchen waste management problem”
Potable water is yet another challenge.
While flagging the drinking water supply to restaurants, the custodians of which are the respective civic bodies, Ravi said serving and supplying uncontaminated drinking water is yet another challenge, as piped water supplied by Greater Chennai corporation and other respective Municipalities in the city is not exactly potable. The poor state of the water supply network and rusted pipelines only adds fuel to the fire. To tide over this deadlock, every restaurateur has to install an RO Unit in their hotels to serve purified water to the customers the President of the CHA noted.
“Monsoon months are much worse, as waterborne diseases are rampant during the season. We have to depend on individual RO systems to get purified water, despite the City Corporation levying a water tax. We have instructed the member restaurants, consisting of 20,000 members, to adhere to the best practices in the restaurant industry and serve safe drinking water to the customers,” Mr Ravi noted.
GST and State-levied tax structure need a revisit
While dwelling on GST regime, Ravi said that the different slabs for different food items are highly confusing to both the hoteliers and the customers.
“While sweet items attract 5% GST, for savouries the GST levy is 12%. The multiple slabs of taxation both by the Centre and the State Governments should be done away with, and it should be replaced by a streamlined and equitable tax system” Ravi opined.
Legal team to tackle YouTube blackmailers
While commenting on the rise of threats and black mails by a section of unscrupulous YouTubers, Ravi said that the phenomenon has been increasing by the day.
“To counter the threats and blackmails, we have formed a legal team for Chennai Hotel Association, and any such YouTube blackmailers have to face a defamation suit if false complaints are brought forth and circulated on the social media platforms We have also planned to register a complaint to the respective Designated Officer of Food Safety and Drug control in the respective jurisdiction about the nature of social media posts,” Ravi said and added “But, that genuine complains made by any customer would be attended to meticulously by the respective hotelier and remedial actions would be taken”.
CHA obtained police permission to open restaurants around the clock
While answering whether hoteliers are compelled to shut shop by 11 pm, he said that Chennai, being a metropolis, does not face any such problem. Moreover, CHA raised the issue with the State Police authorities and obtained permission to operate round-the-clock services.
Frozen food is the future of the restaurant industry
Commenting on the phenomenon of new culinary trends and the dining out options available to the new generation, Ravi said, that culinary trends have changed a lot among the younger generation and they sought out international cuisine and multi-cuisine restaurants that well serve their palates. Italian, Japanese, and Korean cuisines and dishes have become very popular among Chennaites, and so with that in mind, many multi-cuisine restaurants are operating in the city.
“ I have rebranded our home brand Namma Veedu Vasantha Bhavan as VB- World to cater to this section of modern diners, and we offer international cuisine to our customers. With a new branch of VB- World recently opened in Kanchipuram, we are all set for further expansion plans and to enter other cities in Tamil Nadu soon,” he said. Ravi also said that the general population has taken a liking to frozen foods, which is going to be the future of the restaurant industry.
“ With increasing cold storage facilities in hotels, the concept of frozen food has become an in-demand thing with customers. The customers are increasingly turning to frozen food items, including fruits, seafood, and pre-made meals and snacks, in a big way. “ In a fast-paced world and with the improved cold stage chains and facilities, the frozen food sector is set to grow at a faster pace soon” Ravi noted.
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