100% FDI in Food Retail Would Help Reduce Restaurant Food Costs

100% FDI in Food Retail Would Help Reduce Restaurant Food Costs

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 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).

Impact of 100% FDI in Food Retail on the Restaurant Industry

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.

100% FDI in food retail would also be beneficial for the restaurants, as they would now have a multitude of better options to purchase the raw materials. The raw materials would also be sold and purchased at a stable price and economical price. With 100% FDI, restaurants can also expect a better quality produce and consistency in the stock items.

Purchasing high-quality products at economical prices would help in reducing the restaurant food costs, and lead to an overall boost in profits.

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