Friday, 26 May 2017

How are the latest government policies going to affect fast food franchisee?



The food industry in India is primarily is at sunrise stage. It is recognized as priority sector in terms of revenue generation by both national and global players presently operating in Indian market. Government at the centre of country has earned worldwide appreciation for its food scheme; encouraging huge investment in F&B could certainly help to get rid of economic troubles, moreover citizens also facilitated with wide array of economical, harmless, fresh and high quality food products. All the fast food franchise operating actively in the country should adhered to regulations made by government. Regulations on food safety are essential so that consumers can enjoy health and delicious cuisines.
In recent time government has implemented number of laws that prove positive as well as negative for the food and drinks. For example, government has initiated a special fund program called ‘food processing Fund’ of approx. US $ 300 million to give power to mega food parks project and also loan will be provided to small business at low interest rate. Make in India campaign generally focuses on manufacturing facilities in India but government has also included food franchiseindustry in their plan in order to explored unorganized market share.



According to report by National Restaurant Association of India, the market size was near about INR 2,47,680 crore and is estimated to INR 4,08,040 crore by 2018 with a CAGR accounts for 11 per cent. Good and service tax (GST) introduced by government will definitely has huge impact on both consumers and restaurant chains. While visiting any restaurant you will find several taxes like service charge, service tax and VAT. Under GST all the taxes merged into single one and you will certainly get benefit. For restaurant chain owner there are some reasons for cheer, after GST all the taxes will get subsumed thus things will become easier in forthcoming years.

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