Businesses that thrive on al fresco, or open-air dining, and those present in high street locations are among the worst hit, industry insiders said. The impact is most visible during the lunch hours when the usual hustle and bustle have given way to mostly empty tables.
The lunch business is “almost next to nil”, said Priyank Sukhija, chief executive of First Fiddle Restaurants that operates outlets of brands such as Lord of the Drinks, Miso Sexy, Diablo, Tamasha and The Flying Saucer Café.
The national capital, where temperature arguably crossed 50 degrees Celsius for the first time on Wednesday, is among the worst hit with high street locations such as Khan Market, Connaught Place and Defence Colony seeing a significant fall in footfalls, according to Sandeep Anand Goyle, who heads the Delhi chapter of National Restaurant Association of India (NRAI).
“The heatwave has massively hit sales till about 6 pm for some restaurants. People don’t want to venture out and prefer going to the malls. But we heard of mall air-conditioning also falling apart in some instances… so that is another worry,” he said.
“People prefer taking holidays in such weather conditions, so that has also contributed to the dip in footfalls, which would be in the range of 25-30%,” added Goyle who is also a director at Essex Farms, which operates restaurants such as Cafe Tesu.NRAI has over 1,000 restaurant members in Delhi.Many other cities too are affected.
Roshan Banan, managing director of Sagar Ratna Restaurants, said the chain has seen a 10-15% drop in consumption across North India. “Such extreme temperatures can bring down the appetite,” he said.
Anjan Chatterjee, chairman of Speciality Restaurants that operates Mainland China and Oh! Calcutta chains, said sales are down by 30-40% across locations including Kolkata, Mumbai and Ahmedabad, besides Delhi NCR as mercury levels hit new highs in many places.
“We have not seen such temperatures historically,” said Chatterjee. “In the winter people can whip up an appetite, but when the temperature crosses 40-45 degrees and you hear of people dying from the heat, who would feel like stepping out for food? The appetite takes a hit and people are unable to digest much.”
“I have been telling fellow restaurateurs that the only solution to tide over the heatwave seems to be a ‘yajna’ (for the rain god),” Chatterjee said.
The fall in sales has impacted the profit margins, forcing some restaurants to focus more on deliveries and offer deep discounts.
The restaurateurs are worried about their workers as well, particularly those working in the kitchen.
“Our concern is also to do with the kitchen staff as the kitchens are not air-conditioned… We have to take cognizance of that,” said Pranav Rungta, cofounder and director of Nksha Restaurant in Mumbai.
He said business at the fine-dining outlet at Churchgate was down by 20% this week compared to last week, adding that the heat has picked up after May 25.
Some are modifying their menu to suit the climate.
“People are naturally less inclined to dine out in the sweltering heat, and when they do, they’re craving lighter fare and refreshing drinks,” said Sonali Mullick, head of operations and mixologist at the Bayroute restaurant chain that has outlets in Cuffe Parade, Lower Parel, BKC, Juhu and Powai in Mumbai. “This can be tough on restaurants, especially those known for their heartier dishes. We are offering lighter mezze options and cooling cocktails on our summer specials menu,” she added.
Prasuk Jain, founder of Koa restaurant in Juhu, Mumbai, said patrons do not want to dine outdoors in this weather. “Customers prefer to sit indoors, but due to space constraints, we are unable to accommodate everyone,” he said.
Zorawar Kalra, founder of Massive Restaurants that runs chains such as Farzi Café, Bo Tai and Papaya, said outlets in malls have performed better comparatively.
Ikram Singh Aulakh, regional business manager, North at Impresario Entertainment & Hospitality Pvt Ltd said SOCIAL outlets situated in malls in North India have seen an increase in footfalls.
“People are less inclined to dine out or buy perishable items that may spoil in the heat. Consequently, restaurants and food vendors are experiencing reduced foot traffic and increased operational costs as they rely heavily on air conditioning and refrigeration to maintain food safety standards,” said Saurabh Gahoi VP of Ramee group of hotels in India.
“Furthermore, supply chain disruptions are making the transportation and storage of perishable goods more challenging, leading to delays and higher costs. This is causing fluctuations in the availability of food products in local markets, further driving up prices and affecting consumer choices,” he added.
