Heatwave in India: Delhi-NCR restaurants witness up to 40% decline in business

The scorching summer of 2024 has hit Delhi-NCR's non-mall restaurants hard, with extreme temperatures leading to a significant drop in footfalls. Temperatures have soared to record highs, with Safdarjung Observatory recording 46.8 degrees Celsius on May 29, the highest in 79 years. This heatwave has resulted in an estimated 25% decline in business, with some eateries reporting losses as high as 40%.

Restaurant business cools

According to industry insiders who spoke to PTI, lunch hours are the worst hit with usual office goers and trusted shoppers preferring to stay indoors. Besides, true-blue foodies are also ditching their weekly dine-outs and preferring to stay in.

Rahul Arora, owner of The Big Tree Cafe in Gurgaon, which specializes in al-fresco dining, is among those affected. "Typically, we do see a slight reduction in footfalls during the hotter months, but this year, the decline has been more pronounced due to the extreme temperatures," he said. "We have suffered a huge 40% drop in business due to the record-breaking sweltering heat."

Manpreet Singh, treasurer of the National Restaurant Association of India and owner of multiple restaurants, including Zen and Fujiya, noted a significant drop in lunch hour traffic. "There has been a 25% drop in business in general,” he said, highlighting the impact on popular market hubs like Connaught Place.

Restaurants are attempting to counteract the decline by offering discounts, updating menus, and enhancing outdoor cooling with mist fans and shaded areas. Shruti Malik, founder of Anardana, mentioned their plant-based summer soiree with seasonal ingredients and cool mango beverages to attract customers.

For those avoiding the heat, home deliveries provide an alternative. However, delivery agents face challenging conditions, earning modest incomes while battling the scorching sun. A 36-year-old delivery agent described working between 11 am and 3 pm as a "living nightmare."

In contrast, restaurants located in air-conditioned malls have seen increased evening footfalls. Rahul Singh, senior vice president of pubs at Bira 91, reported, "The heatwave has not disrupted our business. On the contrary, we have witnessed the best May ever."

In response to the heatwave, food aggregator Zomato urged customers to avoid ordering during peak afternoon hours, sparking a debate. Some praised the concern, while others suggested alternatives. Rushabh Jhaveri, founder of Recipe Cup, commended Zomato but suggested a more balanced approach, such as providing incentives for delivery partners during peak hours and encouraging pre-orders.

Meanwhile, restaurants in air-conditioned malls are thriving. Insiders report increased evening footfalls, offsetting the afternoon declines. Rahul Singh, senior vice president of pubs at Bira 91, stated, "The heatwave has not disrupted our business. On the contrary, we have witnessed the best May ever. Most of our outlets are in malls, and people are spending a lot of time in malls to take respite from the heat. This is helping our business."

Efforts to attract customers include discounts, menu updates, and improved outdoor cooling systems, aiming to mitigate the impact of the relentless heat.

Also watch: Heatwave in India: Sales of AC, refrigerators, other appliances surge