We Appeal For Restoration Of Input Tax Credit For GST In Restaurant Industry: Zorawar Kalra, Massive Restaurants

What are your expectations from this budget, considering it's an interim budget with elections around the corner?

The most significant challenge that the industry is currently facing, and this applies to organisations like ours that diligently pay taxes, is the absence of an input tax credit. I want to emphasise the importance of this, as it's a critical issue for the industry. Already, it's a high-profit industry and the removal of input tax credit for the restaurant sector is a major obstacle we're grappling with. We appeal to the government, humbly requesting the restoration of input tax credit for GST in the restaurant industry. We're incurring significant losses; our rents have increased by 18 per cent, construction costs have risen by 18 per cent, and procurement expenses for certain materials have also surged by 18 per cent. Basic services like legal and chartered accountancy have seen an 80 per cent increase. Almost every cost has escalated, and we don't have the opportunity to recover these costs. It's a substantial concern. The restaurant industry is the second-highest employer in the country, contributing between two and three per cent of the GDP. Restoring input tax credit will be a significant incentive and a lifeline for our survival and growth. With this, the industry will expand at a much faster rate, leading to more capital investment and the opening of additional restaurants. This, in turn, will result in more job opportunities and increased tax contributions to the government. Everyone involved, including employees, the industry and the government, stands to benefit from a strengthened restaurant sector. While I don't anticipate it happening in this budget, we remain hopeful that it is considered soon, leading to the restoration of input tax credit for the restaurant industry. This is our primary requirement for the survival and prosperity of our industry.

What inspired your involvement in the culinary industry and earning the title of the Prince of Indian Cuisine?
Being born into a family deeply immersed in the culinary world, I was always fascinated and had a keen interest in this field. Since my preteen years, I decided to pursue a career in the restaurant business, influenced by my father who crafted exceptional restaurants in five-star hotels across the country. Growing up in a household with a rich culinary legacy, it became a natural interest for me. My father, recognizing that passion cannot be forced but developed, cultivated my enthusiasm for the industry by showcasing his remarkable lifestyle and the impact of putting Indian cuisine on the global map. Witnessing the respect he earned fueled my intrigue, and early on, I determined that this was my life's calling. Even during my MBA in 2000 at Boston University, I had a clear goal to return and establish myself in the F&B industry. It's the only path I've ever envisioned for myself, and I consider myself fortunate to be living that dream.

How do you articulate the mission and vision for the Indian food industry, drawing from your extensive experience in cafes and broader ventures within the restaurant sector? Your unique perspective, shaped by both your father's legacy and your journey, brings a distinctive flavor to the industry.
Defining the mission and vision for the industry is a complex task, but speaking about it, I believe the food industry is incredibly significant in India. It stands as the second-largest employer, engaging around 8-10 million directly and an equal number indirectly through restaurants and supporting businesses. Contributing between two and three per cent to the GDP, it plays a substantial role in India's economy, being the world's fifth-largest. We're still in the early stages, with immense growth potential, given our vast population and their penchant for dining out. Despite being the largest industry, the percentage of our market share in dining and delivery is a single-digit when compared to global counterparts like China and the US. The upside is substantial, considering the Indian population's love for food, making it a crucial part of their entertainment and spending patterns. My vision, inspired by my father, is clear: contribute to the global culinary landscape. Starting with Farzi Cafe, our goal was to redefine how the youth perceives Indian food, making it trendy, cool and appealing. We aim to revive interest and pride in our culinary heritage, making it a part of everyday life rather than reserved for special occasions. The mission is an extension of my father's legacy - putting Indian cuisine on the world stage, and that's precisely what I am committed to continuing.

Why, despite the prominence of the food industry in India, we do not have Michelin guides? Chefs like Garima Arora and others, achieving Michelin recognition for restaurants like Gaa in Bangkok, showcase the caliber of Indian culinary talent. What factors contribute to the absence of Michelin stars in the Indian gastronomic landscape?
While we don't have the Michelin Guide, India boasts its prestigious awards, showcasing culinary excellence. The Michelin Guide is a substantial undertaking, requiring considerable funding. It's a business decision, and Michelin may need time to establish a significant presence in the country. Historically, the guide was initiated to promote tire sales, tying in with more driving. Since Michelin doesn't sell many tires in India, the process may take time. However, we have our forms of external validation through reputable awards. While personally not our driving force, external recognition, including Michelin stars, would undoubtedly be a remarkable accolade for the industry. Indian chefs exhibit exceptional talent and craftsmanship, with a unique skill set that may not be globally acknowledged yet but deserves recognition on the international stage. The quality of Indian restaurants and chefs is, in my opinion, of a global caliber.

Whenever you're planning to open new restaurants, like Switch, Swan Burger Delivery and Luis Vogel? What makes these additions significant, and what concepts do they bring to the table?
When we introduce a new brand, we always consider something we enjoy. For example, with Luis Burger, I identified a gap in high-quality American-style burgers in India, which I felt was lacking. I started it based on my passion, and when it gained traction, it confirmed the market demand for such a concept. While passion is crucial, we also conduct demographic and market research to ensure the concept aligns with potential demand. It's essential to blend the artistic and scientific aspects, considering not just personal preferences but also market dynamics. Our upcoming project, a super restaurant in Mumbai, exemplifies this approach. It's a large establishment with three unique sections, offering an outdoor area, indoor dining, and a high-energy party floor in collaboration with Sunburn. This innovative concept aims to set a new standard in the industry, emphasizing the need for differentiation and a unique selling proposition. With the restaurant industry's high mortality rate, we prioritize meticulous planning to deliver a solid business case and create something distinct, aligning with the evolving preferences of Indian consumers. Our previous ventures like Masala Library, Farzi Cafe and Papaya have successfully brought about paradigm shifts in how Indians perceive and experience food and nightlife.

What's your take on the trend of including Kpop and Kdrama elements in restaurant menus, such as adding Sushi, Kimchi and different ramen noodles, even if it's not a part of our native culture?
Cross-cultural pollination is fantastic. Just as we want Bollywood movies to be appreciated globally, we should also consume content from other cultures. My children were once big BTS fans, and celebrating each other's cultures adds spice to life. Experiencing different movies, music, and cuisine diversifies our perspectives. It's a two-way street, and I see it as a positive exchange. The way K-pop and Korean food are making their mark in India is commendable, and I envision a reciprocal exchange where Indian cuisine becomes a global export. In about 20 years, I believe Indian cuisine will be among the top dining choices in every major city worldwide. This vision drives me each morning – to elevate Indian food onto the global stage, showcasing our rich culinary heritage, diverse flavours, and scientific approach to cooking. Indian cuisine is unparalleled, and it's our responsibility to share it with the world, letting them experience the richness our ancestors crafted for us over thousands of years.

Any plans to introduce new fusion foods or open restaurants serving diverse world cuisine, considering the popularity of Kpop and global foods like sushi burritos?
Many of our restaurants already offer global cuisine with an Indian twist. For instance, Papaya serves pan-Asian food, including Korean dishes like the popular Korean fried chicken burger at Louis Burger. We incorporate international flavors into our menus based on personal preferences and what we enjoy. Our approach is to infuse global elements into Indian restaurants and present international cuisines with a unique touch. For example, Papaya focuses on Korean and pan-Asian cuisine, while Swan and Lamar feature a mix of European and Mediterranean dishes. Our goal is to create menus that reflect our tastes and can be well-received by customers.

In terms of diversity, especially with women chefs, there have been stories of struggles to break into the industry. How does your company address diversity, particularly in the kitchen?
Currently, the culinary industry is predominantly male-dominated, especially in the kitchen, but this is rapidly changing. The talent among Indian female chefs is exceptional, exemplified by Chef Garima Arora, the first Indian lady to receive a Michelin star. While it's still a male-dominated field, there's progress. In our company, we have many female chefs, with the heads of pastry at Massive Restaurants and Farzi Cafe London being females. Numerous talented women are working in both front-of-house and kitchen roles. Although the kitchen environment can be intense, our company works to create a supportive culture. For example, we provide drop-offs for female employees in certain cities, ensuring their safety. While there's more progress to be made, the industry is evolving positively, and talented women are rising to the top when given opportunities. We appreciate the positive and nurturing energy that women bring to our restaurants and are committed to promoting diversity within our company.

Can you mention a few trends in the restaurant industry that you've observed over the past five years?
Certainly, one significant trend is the resurgence of regional Indian restaurants. There's a growing appreciation for micro cuisines, and establishments focusing on local flavors are thriving. Surprisingly, cuisines like Goan or Northeastern are gaining popularity. Another trend is the rise of vegan restaurants, capitalizing on India's rich variety of naturally vegan dishes. In 2024, we anticipate the emergence of super restaurants—large spaces that seamlessly blend exceptional dining with vibrant nightlife. Lamar, our upcoming restaurant in Worli, is an example. Veganism will continue to gain traction, with more vegan menus appearing in regular restaurants. Health-conscious diets, including keto, are also on the rise. Despite these modern trends, India's strong vegetarian tradition endures, ensuring the continued success of vegetarian restaurants. Overall, there's a diverse array of trends, from a focus on regional and comfort foods to the rise of super restaurants and an increasing emphasis on health-centric cuisines.

How is Massive Restaurants addressing sustainability, particularly in managing the district and transitioning from plastic to eco-friendly alternatives such as cardboard and paper?
We are trying to get rid of single-use plastics wherever the law allows. We've already eliminated single-use plastics almost entirely. We are also transitioning to biodegradable materials; all our packaging in our dining restaurants is now biodegradable. We are also on a path to becoming carbon neutral in the next half-decade. Within the next four to five years, we hope to achieve carbon neutrality. We are also making efforts to minimise food wastage. Unfortunately, due to certain laws, we cannot give away food in the evening in every city due to potential health issues. You can't simply hand over leftover food; it needs to be safe for consumption and there are regulations around it. Despite this, we have actively participated in initiatives, especially during the Covid-19 pandemic, where we provided food to orphans and people on the streets. We are committed to a future with minimal wastage and are taking positive conscious steps every year. It took us about five years to become carbon neutral at Massive Restaurants and most of the packaging we use in our dining restaurants is made of recycled paper.

For delivery, we are still facing challenges in sourcing eco-friendly packaging, but we are working towards adopting even more sustainable options, such as Adobe products, to achieve a fully recycled or biodegradable form of packaging. This transition will take some time, but we are heading in that direction.

How frequently do you update your menu?
In the fast-paced restaurant industry, it's crucial to keep evolving and introducing new elements to engage consumers. People tend to get bored with food faster than other things, making constant innovation essential to stay relevant. So, we update the menu regularly across our brands. For example, at Farzi Cafe, we change the menu every three months, ensuring a fresh experience for our customers. Louisville introduces at least one new product every 30 to 45 days and Slice Pizza undergoes menu changes several times a year. Our cafes are updated three to four times annually. Additionally, our delivery brands like Louis Burger, Slice Pizza and Nashville Fried Chicken have an aggressive new product development programme, constantly introducing fresh items.