What restaurant operators expect from FM Nirmala Sitharaman in Budget 2025

1 / 8 In the 2024 Union Budget, the food services sector sought industry status for F&B, input tax credit and restaurants be allowed to operate 24×7, while some of the expectations were met, this time around restaurant operators are expecting some relief for small neighbourhood bakeries and more. As the Indian Union Budget for 2025 approaches, restaurant and food business owners are expressing strong expectations for measures that will alleviate operational challenges in the hospitality sector.  The CNBC-TV18 Travel desk sought budget expectations from entrepreneurs and here’s what they had to say. (Image: Shutterstock)2 / 8Ease licensing processes | Parth Gupta, chef and founder of Cicchetti Italiano, Bloom Cafe and Cakery, and The Lavender Flavours told CNBC-TV18, “The hospitality and F&B sector faces significant challenges, and I believe the upcoming budget should address two critical issues: GST and licensing. The lack of GST rebates on essential expenses like rent puts immense pressure on restaurant owners. With slim profit margins, paying 18% GST on rent and other operational necessities — such as assets and entertainment — it becomes an added burden. (AP Photo/Ebrahim Noroozi)3 / 8Reinstatment of Input Tax Credit under GST | Danny Alagh, Co-founder and CEO of Sandburgs said, As the 2025 budget approaches, I eagerly anticipate initiatives that will energise the F&B sector, simplify operations, and foster sustainability. To deliver high-quality experiences to our customers we look forward to policies that drive growth, innovation, and eco-friendly practices in the food business. Key expectation is the reinstatement of Input Tax Credit (ITC) under GST to reduce operational costs and enhance profitability, enabling expansion and large-scale job creation. A dedicated ministry for the Restaurant Industry is crucial to address the sector’s needs. (Image: Shutterstock)4 / 8Tax relief and incentives for sourcing locally grown produce | Harmeek Singh, Director at Bon Mama Café said, “As a small business owner in the F&B industry, we are hopeful that the upcoming Indian Budget introduces measures to support neighborhood cafes like ours, especially in areas like tax relief and incentives for sourcing locally. Additionally, schemes that promote skill development in the hospitality sector and easier access to credit for small businesses would be a game-changer for entrepreneurs like us. With Gurgaon being a hub of innovation and culture, we believe support for small enterprises will not only boost employment but contribute to creating community spaces for people to connect over tasty food and experiences.5 / 8Granting ‘industry status’ to the sector | Chef Rohit Tokhi, Toscano said that apart from reinstatement of Input Tax Credit (ITC) under GST, the F&B sector is hopeful that the 2025 Union Budget will address critical challenges to bolster and provide ‘industry status’ to the sector. Granting ‘industry status’ would enable easier access to financing and subsidies, fostering sustainable growth. (Image: Reuters)6 / 8Better access to resources and infrastructure | Puja Sahu, Founder of The Mission Bay said, “As the founder of The Mission Bay, a San Francisco-inspired restaurant based in Delhi, I am optimistic that the upcoming Union Budget will introduce measures to support sustainability and innovation in the F&B sector. Policies like subsidies for eco-friendly operations, incentives for farm-to-table practices would greatly benefit businesses like ours. We hope the government considers recognising our vital contribution the hospitality sector and ensure better access to resources and infrastructure. A forward-thinking budget would help businesses thrive while enhancing dining culture with authenticity, innovation, and responsible practices.” (Image: Reuters)7 / 8Incentivise manufacturing | Vikram Khurana, CEO of Kaapi Solutions siad, “The Union budget is crucial for the growth of the coffee industry. There is high anticipation for policies that incentivise manufacturing, foster technological innovation, and promote sustainability initiatives. Support for Make in India, reduced GST rates on essential components, and tax benefits for eco-friendly product development would be transformative for local production, especially in the coffee machine sector. Allocations toward promoting agri-tech solutions for coffee cultivation and additional support for small and medium-sized roasters can create a positive ripple effect across the entire coffee ecosystem, which will be beneficial for us.”8 / 8Dedicated ministry or department for F&B | Vikrant Batra, Founder of Cafe Delhi Heights said, “As we look ahead to the 2025 budget, a dedicated ministry or department for F&B governance will be crucial for the sector. I’m optimistic about initiatives that will propel the F&B sector forward. My key expectations include rationalised GST rates, GST input credits, and a streamlined licensing process. Additionally, formal recognition as a key industry sector and. These strategic measures will unleash the sector’s full potential, fostering economic growth, development, and a brighter future for the industry. (Image: PTI)

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