Industry body urges restaurants to cut dependence on imports, improve energy efficiency and optimise logistics amid rising input cost pressures
India’s restaurant industry is moving towards greater local sourcing and tighter cost controls as global supply-chain disruptions and rising input costs pressure operating margins, according to the National Restaurant Association of India (NRAI).
In an advisory issued to restaurants and food service operators, NRAI urged businesses to reduce dependence on imported ingredients wherever suitable domestic alternatives are available and adopt measures aimed at improving operational efficiency and conserving resources.
The recommendations come as restaurants face elevated fuel and logistics costs, volatility in edible oil prices, higher electricity expenses and uncertainty around imported food supplies.
NRAI advised restaurants to prioritise procurement of locally produced vegetables, grains, dairy products, meat, seafood, spices and beverages while promoting “Made in India” food products and regional cuisines.
The association also recommended optimising delivery routes, shifting part of intra-city logistics towards EV-based fleets, reducing non-essential generator usage and improving kitchen energy efficiency to manage operating expenses.
“At a time of global economic uncertainty and supply chain volatility, coordinated voluntary action by the food services industry can contribute towards conserving resources, supporting local sourcing, and strengthening operational stability,” said Sagar Daryani.
Restaurants have additionally been encouraged to strengthen domestic supplier networks, source more from sustainable farming groups and Farmer Producers Organisations (FPOs), and review dependence on imported products.
The advisory also called for measures to reduce food wastage through portion optimisation and responsible consumption initiatives. NRAI further recommended wider adoption of LED lighting, smart refrigeration systems, energy-efficient kitchen equipment, rooftop solar installations and stronger digital ordering infrastructure.
Industry observers said organised restaurant chains are increasingly focusing on sourcing efficiencies and operational savings as competitive pricing and uneven discretionary spending limit their ability to fully pass on rising costs to consumers.
The association noted that the food services sector remains a significant consumer of fuel, electricity, logistics services, edible oils, imported ingredients and packaging materials, making resource conservation and supply-chain localisation critical for operational stability.
