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NRAI Updates and Initiatives


National Restaurant Association of India, the leading association for stand alone and chain restaurants, is abuzz with various activities and initiatives for the benefit of its members. They have recently launched the India Food Service report focussing on consumers eating out behaviour. The association also made a representation to the Ministry of Finance to rollback the additional service tax made mandatory for all air conditioned restaurants

NRAI ties up with Team Lease Services Hospitality division to provide training services to its members

Team Lease Services Hospitality is India’s largest manpower solutions company with more than 70,000 associates placed across 1,400 accounts in multiple cities across the country and provides end-to-end solutions in hiring, deployment and training.

The Hospitality Division Services has specially designed modules for the restaurant industry, with content that is standardised, has industry validation and is dynamically updated with changing trends. Team Lease Services Hospitality has also tied up with AHLEI – the education and training arm of AHLA, which allows them to use the latest videos, training content from AHLA.

The training modules are focussed on areas that have direct guest interaction value with a view to enhancing employee-guest communication, improving menu communication skills and equipping employees with skills required on the shop floor in terms of service delivery and guest handling. The final focus of all the modules is to generate additional sales through enhanced guest experience. To ensure that there is real time learning/skill development, the sessions use role plays, situation analysis and videos. All sessions are concluded with an assessment to help the person and the organisation understand the learning curve and further training need analysis.

Launch of India Food Service Report 2013 

NRAI recently released the India Food Services Report 2013 in New Delhi. Anand Sharma, Honourable Minister of Industry and Commerce, was the Chief Guest at the event. The launch saw the presence of key players and leaders from the industry, government officials and media.

The ambitious project of documenting the growth phase of the Indian Restaurant Sector began with the launch of the first White Paper on the Indian Restaurant Industry in 2010. The association has undertaken a comprehensive research project including covering new trends, segment analysis, opportunities, growth, and size of the sector. The 2013 report demonstrates the key operational and performance benchmarks with respect to revenues, investment and profitability. The report also focusses on the fiscal and socio-economic contribution that the industry makes.

The report is a highlighter on the various aspects of the Indian consumers eating-out behaviour. Detailed chapters on the market segments and formats are covered in the same. It will also showcase the new business opportunities, emerging themes, and have benchmarks to the industry in other countries.

It will truly be a one-stop credible and authentic source of information and will be the ‘cutting edge document’ that can be referred to by the various stakeholders. There will be subsequent events for the report launch in Mumbai and Bengaluru also.

NRAI Representation to Ministry of Finance

NRAI has made two representations to Ministry of Finance against the introduction of Service Tax on all AC restaurants. The first was an appeal addressed to the Revenue Secretary to roll back this proposal totally. Thereafter, the President NRAI also led a delegation to meet the Joint Secretary and explain the industry views on this subject. A follow-up representation has also been sent to the ministry. The main points of the representation are as follows:

•Service tax should not be made applicable to home deliveries, take away/pick-up/drive way models.

•In case of dine-in for self-service/QSRs, the element of service is much lower than the casual and fine dine restaurants. A possible solution offered is to rework the abatement percentage and reduce the present 40 to 10 per cent and apply it across all AC restaurants that do not serve liquor. Would be simpler to say that we have suggested that the service tax applicable be reduced from 4.94 to 1.236 per cent for these formats.

•The tax should also not be applicable to MRP products sold at the outlets.

  •    NRAI has asked for the start of the service tax to be deferred by three months. This would help the industry to put in place the infrastructure and training required to effectively implement the new rules.