Budget 2016 did not pronounce any major changes directly to the restaurant industry. However, the butterfly effect of the changes in other sectors is set to impact the restaurant industry, hopefully in a positive way.
The government announced a 100% FDI in the food retail sector that allows giants like Walmart and IKEA to sell multi brand food products, as long as they are sourced and manufactured within India. They would, however, have to seek an approval from the Foreign Investment Promotional Board (FIPB).
The decision has been received with enthusiasm, with expectations that it would bring more employment opportunities, and provide top class products, while encouraging the industry to produce locally. Local production and distribution would also reduce losses that occur due to poor storage and logistics.
It would also be beneficial for restaurants, as they would now have a multitude of better options, get better quality of raw materials for stable prices. Purchasing high quality products at economical prices would help in reducing the restaurant food costs, and lead to overall boost in profits.