The restaurant industry is expected to recover, buoyed by India’s strong economic fundamentals, after facing temporary challenges in the first quarter, including high food inflation and reduced dining out, says Anjanmoy Chatterjee, CMD of Speciality Restaurants Ltd.
Speciality Restaurants’ Growth Focus:
The company, known for its brands like Mainland China, Asia Kitchen by Mainland China, Episode One, Haka, and Sweet Bengal, which closed 29 outlets during the pandemic, is now concentrating on profitable growth while expanding its footprint.
Chatterjee stated, “It should be clear that I don’t believe India’s dining out habits or inflation issues are a significant concern. India is performing better than many other countries…”
He was addressing a question about the duration for which high food inflation and a decline in dining out—after the surge in ‘revenge eating’ post-pandemic—would continue to impact the restaurant sector.
“It’s a short-term issue that will resolve as food inflation decreases,” he said, noting that the impact will also depend on employment growth and rising disposable incomes.
“I’m confident that this situation will improve,” he asserted.
Food Inflation Eases:
According to government data, food inflation dropped to 3.45% in July from 10.87% in June, largely due to a month-on-month decrease in the prices of vegetables, cereals, pulses, and onions.
Chatterjee noted that in the first quarter of this fiscal year, the sector—including QSR, fine dining, and casual dining—has faced challenges. The decline in ‘revenge eating,’ combined with high food inflation and competition from lower-cost unorganised players, has negatively impacted the industry.
When asked about the company’s expansion plans, he said, “We are focusing on controlled, profitable growth, deliberately expanding geographically without cannibalising our existing stores.
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Key Growth Drivers:
He added that the flagship brand Mainland China, along with its variant Asia Kitchen by Mainland China and the new brand Episode One, will be the primary drivers of growth.
He said the company opened four restaurants last fiscal year and expects to open another three to four, depending on the availability of suitable space.
In the first quarter ended June 30, Speciality Restaurants reported total income of INR 111.52 crore and a PAT of INR 7.64 crore.
