Ease of doing biz: Restaurant body seeks a smoother platter in Delhi

Time of India

13-05-2025

New Delhi: The National
Restaurant Association of India
's Delhi Chapter met chief minister Rekha Gupta to apprise her of key concerns and recommend policy changes aimed at revitalising the city's dining and hospitality ecosystem.
Representing more than five lakh employees across 1.2 lakh food outlets and comprising an estimated size in Delhi of Rs 42,000 crore, NRAI urged Gupta to urgently address long-standing regulatory hurdles and institutional bottlenecks that have hindered the industry's growth in the capital.
The delegation, led by NRAI Delhi Chapter head Sandeep Goyle and comprising members Manpreet Singh, Rahul Singh, Goumtesh Singh, Dhruv Goyle and Prakul Kumar, welcomed the BJP govt's commitment to enhancing ease of doing business in the city. They emphasised the restaurant sector's role not only in job creation and tax generation, but also in enhancing the cultural and social vibrancy of Delhi.In a detailed representation, the association discussed the excise fees, outdated licensing processes, inconsistent permissions for open-air service, restricted operating hours and the non-availability of premium liquor brands in the capital, all of which are causing a significant shift in consumer traffic and business to neighbouring Haryana and Uttar Pradesh. Among NRAI's top recommendations were restructuring excise fees through a pro rata model and introducing multi-year licensing options. It also proposed extending the closing hour for restaurants from 1am to 3am, citing the need to remain competitive with nightlife offerings in Gurgaon and Noida. The association also requested approval of liquor service on terraces, open areas and the use of multiple dispensing counters — practices common in other metropolises but restricted in Delhi.A significant concern raised during the meeting was the unavailability of premium liquor brands in the city. Sandeep Goyle also highlighted inefficiencies in the e-Abkari portal and the non-reversal of the burdensome Covid-era VAT hike. NRAI also complained about executive overreach in the implementation of new fire safety norms.Another unresolved issue is the inconsistency regarding open-area dining. While the Municipal Corporation of Delhi permits this, New Delhi Municipal Council is yet to allow service in open spaces at licensed premises, including gardens, decks, terraces and platforms.NRAI said the industry was burdened by the excessive number of licences and approvals required to start and operate a restaurant in Delhi. Rahul Singh pointed out that operators often had to deal with many licences involving separate documentation and renewals across several departments. This fragmented regulatory structure, he pointed out, not only increased the cost of compliance but also discouraged small and unorganised businesses from entering the formal sector.To remedy this, NRAI recommended reducing the number of licences and transitioning to a streamlined registration-based regime with standardised five-year validity for all permits. It also advocated retention of essential regulations related to food safety, environment, taxation and public security, while removing redundant ones such as signage and trade licences.The delegation told TOI they were encouraged by Gupta's positive response. Goyle said CM welcomed the dialogue and assured NRAI of her govt's intent to work closely with the industry. He said she sought suggestions from the industry on ways to boost the sector and increase state revenues.With a new excise policy awaited, Goyle was optimistic that the industry's suggestions would be incorporated in the policy and stressed the meeting with CM marked a major step forward in aligning govt and industry. The delegation was optimistic Gupta would make Delhi one of India's most dynamic and business-friendly food destinations.