Crucial Problems Faced by Restaurants in India [How to Overcome]

by Sudeep Giri

Even though running a restaurant can seem straightforward on the surface, it’s one of the most difficult enterprises to start and maintain. Your entire plan ultimately hinges on something as fickle as your taste buds. The prevalent cuisine trends now can become stale in a few months. This doesn’t imply you should give up on it; you must instead grow.

Setting up a restaurant business and overcoming any challenges takes time and effort. Let’s look at some of the major issues that Indian restaurateurs are currently facing.

Employee turnover rate has always been very high in the restaurant industry, but now, even more so than before, you cannot afford to lose employees. A lot of establishments are short of staff due to illness. Given these problems, it’s crucial to ensure your employees are happy.

Solutions: Like any relationship, open communication between managers and employees is essential. Every week, hold staff meetings to give full transparency to management decisions and keep track of employees.

Please encourage them to offer suggestions and provide feedback on the things that are working and not as well as actively listen to their concerns.

Find out what can motivate them to be at the best job regardless of rewards, recognition, scheduling flexibility, or even job perks (such as meals for free, which could also aid in reducing the amount of food wasted). Make sure you lead by your example. Your employees will mirror your behavior.

Take the help of POS Software to streamline everything.

  • Property cost-

If you are planning to start your restaurant in a metropolitan city, most of your capital investment will be spent on leasing space. Finance is even more difficult when you intend to become the sole landlord and purchase your restaurant’s premises.

Restaurateurs’ challenges because of real estate prices have been pointed out in the National Restaurant Association of India (NRAI) in its India Food Services Report 2019. The cost of real estate has seen numerous eateries operating out of Lilliputian-sized restaurants to stay afloat in their business.

  • Licencing requirements

Restaurants in the United States cannot go through formalities to be operational. Obtaining the required certificates and licenses could be costly and time-consuming. You may require between 10 to 12 licenses to establish your restaurant; getting there is not an easy process.

  • Heavy Labor Costs

The cost of labor is among the most expensive expenses for restaurant owners. To compensate for the loss in revenue this year, many establishments are looking for ways to help them employ their employees more efficiently.

Solutions: Think about implementing self-service kiosks (with appropriate sanitization procedures). Customers can create orders that will be delivered directly to the kitchen, reducing the need for face-to-face interaction.

Also, the accuracy of orders can be improved because customers can review their requirements and rest assured that they will receive exactly what they need. Tickets’ sizes tend to increase when self-placed orders are placed partly because the kiosk won’t forget to offer upselling prompts.

The benefit of labor costs owners enjoy is that they can shift your front-of-house workers to facilitate quick fulfillment rather than taking orders.

You could also think about installing a self-pouring tap system for beverages. Customers can pour themselves basic drinks, eliminating the need for bartenders in the bars.

  • Poor Customer Experience

Social distancing has changed restaurants’ operations and impacted customers’ experience. Restaurant owners must be aware of consumer demands to enjoy a fantastic customer experience amid the epidemic. The speed and accuracy of orders are always in high demand, and alternative options to dining in-house should concentrate on these needs.

Solutions Customers appreciate the ease of ordering food online at the convenience of their home or from any location. The accessibility of ordering channels, such as your mobile or website application, can affect a patron’s decision about where to eat. Like kiosks, the accuracy of orders and ticket sizes are improved when the customers enter their orders themselves.

You can take convenience one step further by providing delivery services to ensure customers don’t have to head out to collect their parcels.

Paying online for delivery is a way to provide contactless service for extra security. Delivery management software includes features like GPS and tracking so that customers know when their delivery is expected to arrive, and the managers are aware of when the driver will be back. These software systems ensure that deliveries are punctual, increasing customer satisfaction.

How Does the Restaurant Management System Function?

With a cloud-based integrated Restaurant POS Software management software, you’ll be able to simplify and automate your data and then centralize it.

In this case, your POS system will provide pertinent data like labor, sales, and so on to the restaurant’s management software.

The software that manages restaurant operations back at the back end uses this data to control the menus, inventory, and various other financial and operational reports.

Communication between your POS system and your restaurant management system should occur regularly to provide actionable information to make daily operational decisions.

What do Restaurant Owners Need?

We conducted an in-house poll in the past year with 300 respondents. Food and beverage cafes and food delivery establishments across several regions, including India, Singapore, the Philippines, and the US.

Our team aimed to discover restaurant owners’ needs for inventory management software to manage the business. Our findings were like this:

90% of respondents said to the question that they need easy-to-use software that is user-friendly and simple to use.

87% of respondents were not interested in investing in the same amount and 73% of respondents were in search of a solution that requires minimal maintenance your needs are similar and we can introduce you to Deskera.


While some restaurant issues were in place before the outbreak was discovered, the outbreak has spotlighted the need for some adjustments to operations. If the changes you make need new technology, search for a professional who can guide you through the best solutions for your company.

The challenges confronting the restaurant industry and owners could affect day-to-day operations and threaten its future restaurant. The restaurant’s issues and solutions can serve as a model to identify potential problems and resolve them before they get out of hand.

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