Akansha Pandey (cbedit@imaws.org)
The cost of food in India has increased 8.38 per cent in April of 2022 over the same month in the previous year, as reported by the Ministry of Statistics and Programme Implementation (MOSPI). With the Russia-Ukraine war crisis going on and the rising food inflation, eating out has also gone costlier. The fine-dining and Quick Service Restaurants (QSRs) have balanced the increasing pressure either by reducing the discounts or increasing prices on the menu card. Amidst such a scenario, the hospitality and restaurant brands are also choosing local produce over the unavailable imported ingredients like never before.
Chef Davinder Kumar, Vice President – F&B Production and Executive Chef, Le Meridien New Delhi comments that during the peak time of COVID, the manufacturing cycle of imported raw materials was all held up. Thus, it has led to a shortage of supply and almost no imports from China which has, in turn, hiked the prices of imported items post-COVID. The Russia-Ukraine conflict has added to the woes. As the fuel prices have increased, it shows on all kitchen raw materials getting dearer.
The food inflation has definitely affected the working of their kitchen too but the footfall is the same, agrees Swapnadeep Mukherjee, Head Chef, The Metropolitan Hotel & Spa, Delhi. “In the past quarter the inflation has risen by 30% and the profit margins have gone down a bit. Even labour costs have gone up. We have become selective and are offering discounts to loyalists. To new customers, we are giving only minor discounts so as to attract them. We will also be increasing the prices for the end customers by 10%. The menu card is also being revised by either removing the pricey food items or by making it value for money,” he shares.
Throwing light on the challenges, Chef Chandra Misra, Area Director and Corporate Chef, Clarks Hotels and Resorts outlines that the commercial gas rates have increased by 20-25%. It is a matter of concern for all in the food and beverage industry. The rise in fuel prices has in turn affected each and every good and service to an extent as there is a steep rise in the transportation cost. “Even buying grocery has gone costly. All this has led to curtailing the hands of restaurant owners as well as chefs. Now the kitchen staff cannot play around with a lot of fancy ingredients while cooking so as to ensure that everything is economically made. The inflation has put an end to a lot of experimentation in the kitchen,” says Mishra adding that however, the other way round, chefs are using locally produced and sourced groceries and ingredients which is a win-win for local vendors. Looking beyond the imported food items, now unavailable, chefs are going innovative and opting for easily available alternatives around or infusing local flavours and herbs wherever necessary.
Even Chef Kumar agrees that hoteliers are not passing on the whole impact to the consumers. Rather they have also curtailed their profit margins while focussing on the quantity in business. In order to counter challenges arising due to food inflation, the hotel and restaurant industry is sourcing raw materials from local vendors, thereby supporting the environment and sustainability. “On the contrary, when chefs need the right ingredient to cook an authentic international cuisine they are also paying the price for it without compromising on the food quality standards. Simultaneously, chefs are also curating menus emphasising on bare minimum usage of imported items and innovating with Indian ingredients and raw materials, states Kumar.
On the other hand, Chef Mukherjee has found alternate source markets for imported ingredients. “The Caviar Fish which was being imported from Russia is now being sourced from Scandinavia or Japan. We have identified strategic alternate markets for some of our raw material requirements so that neither the taste nor the quality gets affected. Simultaneously, we are also looking at local produce. If the quality is similar to the imported ingredient, we are happy to switch and may also stick to it in the long run,” he adds.
Citing his perspective, Chander Baljee, CMD, Royal Orchid Hotels adds that there is surely an increase in the cost of eating out, which is partly being passed on to the customer and the rest is being absorbed by the F&B brands. “Yet, we don’t compromise on the quality of raw materials as it will, in turn, affect the taste of the food item and the company’s reputation. Even in today’s scenario when grocery and raw materials prices have gone up, we continue to stick with the same ingredient that was being used previously. Also, the majority of our kitchen needs are locally produced and sourced and we aren’t heavily dependent on the imported raw materials,” highlights Baljee.
The rising prices have impacted one and all. Though the consumer’s pocket has also been affected yet the sentiment to eat out hasn’t gone down. People have reduced the frequency of their outings a bit, for example, if they used to dine out with the family thrice a month, now those get-togethers are happening twice a month, feels Chef Mishra.
After being in lockdown and under several restrictions from March 2019 onwards, it is a boom time for the food and beverage industry right now, admits Baljee. Food inflation isn’t such a big concern as it is made out to be. People are quite excited to eat out and the restaurant business is doing very well. Hotels and restaurants are witnessing an increased volume of business, which is why the price hike is getting covered up. Even customers are intelligently managing their budget by reducing the number of visits to the restaurant or cutting out on the desert or drink but they are definitely going out more than before. “The hospitality sector has managed at a time when there was a strict lockdown and there wasn’t any business at all. When the business is more than usual, all other things can be managed,” feels Baljee.
These challenges are not permanent and we believe that the prices will reverse in the long run post the war crisis is over, hopes Chef Kumar. Keeping in mind the uncertain nature of the future, Chef Kumar also suggests buying the locally available raw materials and ingredients for the commercial kitchens as much as possible. “The future emphasises going local and lowering our dependability on the imported raw materials. This time has indeed taught us to start becoming self-reliant going forward, as per our Prime Minister Narendra Modi’s vision.”
THIS ARTICLE IS POWERED BY
