The restaurant industry in Mumbai and Bengaluru have assumed that the implementation of Goods and Services Tax (GST) and is largely positive and is on their side. But there is still a major problem coming in between which is the lack of regulation. According to a Restaurant survey in two cities, almost 70 percent of the restaurant owner believes that GST made a positive impact on their industry. While a different section of people, i.e. 68 percent of the business owners still thinks that it will be a backbone for the creation of technology and would rather ease the compliance, as said by the survey of Grant Thornton a leading assurance, tax and advisory firm.
The survey titled “Bon Appetit Emerging trends, opportunities and challenges in Indian” which is based upon the restaurant industry in Mumbai and Bengaluru which is also known for its High lease amounts and attrition rate of experienced staff challenges being faced by the restaurant industry.
The particular survey by Grant Thornton’s Bon Appetit was the outcome of research over 35 Mumbai and 29 Bengaluru owners and Key Managerial personnel(KMPs). While the restaurant industry has been affected due to the Demonetization and GST implementation.
The impact of demonetization was seen more in the Mumbai as compared to the Bengaluru, as there was only one-third of people in Bengaluru that said the impact was none. M-Wallets are also in the action now and have accounted a total of 4-5 percent of the collections.
Grant Thornton India LLP Partner Dhanraj Bhagat said that “The market is highly sectioned on account of changing income levels and age bracket of the population, This can be transplanted to the changing demographics, increase in approachable incomes, urbanization, and growth of organized retail.”
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