How Improved Highway Infrastructure is Igniting Growth of Restaurant Biz in India

Restaurant
The improved connectivity and increased footfall along highways have provided a conducive environment for restaurants to expand their operations.

By Sakshi singh , Contributory Author

27 Jun 2023 | 10 min read

The construction of highways in India has brought a remarkable transformation in the restaurant landscape; particularly for roadside restaurants and dhabas. With the development of better road infrastructure, the previously unorganized restaurant businesses along highways are undergoing a profound shift, transitioning into an organized restaurant industry. The improved roadways have provided a significant boost to these establishments, offering enhanced accessibility and convenience to travelers. 

This has resulted in a surge of customers stopping at roadside restaurants and dhabas, turning them into popular dining destinations. The upgrading of infrastructure and the growing demand for dining experiences have further catalyzed the conversion of these businesses, as they strive to provide comfortable amenities and a diverse range of culinary options. Consequently, the development of highways in India is playing a pivotal role in fostering the growth and professionalization of the once unorganized roadside restaurant and dhaba industry.

My Way or Highway

Kesar da Dhaba, located near the famous Golden Temple in Amritsar, Punjab, has been an iconic eatery for decades. However, with the construction of the Amritsar-Delhi Expressway, the dhaba has experienced a surge in popularity and revenue. Its authentic Punjabi cuisine and strategic positioning along the highway has made it a sought-after dining destination for both locals and tourists, leading to its transformation into a well-known restaurant.

One of the key factors driving the success of restaurants after the construction of highways is enhanced accessibility and convenience. Well-connected highways have significantly reduced travel time and improved connectivity between cities and towns. This has made it easier for people to embark on road trips and explore new destinations. As a result, restaurants located along these highways are witnessing a surge in footfall as they become convenient pit stops for travelers seeking a quick meal or a refreshing break.

Sharma Dhaba, located on the National Highway 44 near Murthal in Haryana is a prime example of a small restaurant that has greatly benefited from the improved road construction. Previously a humble roadside eatery, it has now transformed into a bustling establishment renowned for its delicious Punjabi cuisine. The construction of the Delhi-Chandigarh highway has significantly increased the footfall of travelers and commuters, making Sharma Dhaba a popular stopover for mouth-watering paranthas, lassi, and other traditional Punjabi delicacies. “The development of highways has been a game-changer for us. Previously, we were just a small roadside stall, but now we have become a well-known restaurant with a loyal customer base. The increased footfall has translated into higher revenue, allowing us to invest in better amenities, hygiene, and infrastructure,” Mannoj Sharma, the owner commented. 

Road to Gastronomy 

With the development of infrastructure, coupled with a strong resurgence in travel post-pandemic, travel retail is becoming a key channel for the organized restaurant industry. Branded restaurant and cafe chains are focusing on more aggressive expansion plans in post-pandemic times with highways offering great opportunities.

Burger King when announcing their expansion plan, said they were eyeing highway stopovers for new outlets. Significant investment is being pumped into the country’s highways and a lot of these are coming up with built-in stoppages and rest areas, which are being now auctioned off. “This is becoming a major development for us, especially in the northern part of the country. This is a major growth avenue that we are eyeing,” the company’s spokesperson said in a statement. 

The rising middle-class population in India, with increased disposable incomes and changing lifestyles, has led to a growing demand for dining out experiences. The development of highways has facilitated the growth of organized restaurant chains that cater to this demand. These restaurants provide a range of dining options, including family-friendly restaurants, fast-food outlets, fine dining establishments, and specialty cuisine restaurants, offering something for every palate and budget.

Highways development has not only improved connectivity but also led to the establishment of modern infrastructure and amenities. Restaurants along highways have capitalized on this opportunity by providing comfortable seating arrangements, clean washrooms, ample parking spaces, and facilities for truck drivers. This upgraded infrastructure attracts customers who are seeking a pleasant dining experience during their travels, thereby boosting the profitability of these restaurants.

India is home to a rich cultural heritage and numerous tourist attractions. The construction of highways has made these destinations more accessible, leading to an influx of domestic and international tourists. Restaurants strategically located near popular tourist spots or along major highways have tapped into this market by offering unique regional cuisines and culinary experiences. They capitalize on the desire of travelers to explore local flavors and provide a memorable dining experience, further contributing to their financial success.

Investments Galore 

The improved connectivity and increased footfall along highways have provided a conducive environment for restaurants to expand their operations. Organized restaurant chains have seized this opportunity by establishing multiple outlets along major highways, creating a network of restaurants that cater to a wide customer base. Moreover, the success of restaurants along highways has attracted the attention of entrepreneurs and investors, leading to an increase in franchising opportunities. This has allowed local and regional restaurants to leverage the brand recognition and operational expertise of established chains, contributing to the overall growth of the organized restaurant industry.

For instance, Wendy’s localised menu, entry-level pricing and setting up outlets on highways in addition to conventional retail locations will be the focus areas for expansion in India. Regional food chains such as Adyar Ananda Bhavan (from Chennai), Adigas and Kamat (from Bengaluru) have also set up their stores in highways of their respective states.

“The development of highways and the subsequent growth of our restaurant along the roadside have not only increased our revenue but also opened up new business opportunities. We have been able to expand our operations by establishing multiple outlets along major highways, tapping into a wider customer base. The improved road infrastructure has provided us with a strong foundation for business growth, allowing us to thrive in the competitive restaurant industry,” owner of the The Paratha Company shared who have highway outlets near Bangalore.

The expansion of the organized restaurant industry along highways has not only contributed to the financial success of individual establishments but has also resulted in significant job creation. Restaurants require a diverse workforce, ranging from chefs and servers to managerial and support staff. The growth of this industry has created employment opportunities for both skilled and unskilled workers, providing a boost to the local economies along highways. Additionally, the success of restaurants has stimulated ancillary industries such as food suppliers, logistics providers, and hospitality services, further enhancing economic growth.

The construction of highways in India has brought a remarkable transformation in the restaurant landscape; particularly for roadside restaurants and dhabas. With the development of better road infrastructure, the previously unorganized restaurant businesses along highways are undergoing a profound shift, transitioning into an organized restaurant industry. The improved roadways have provided a significant boost to these establishments, offering enhanced accessibility and convenience to travelers. 

This has resulted in a surge of customers stopping at roadside restaurants and dhabas, turning them into popular dining destinations. The upgrading of infrastructure and the growing demand for dining experiences have further catalyzed the conversion of these businesses, as they strive to provide comfortable amenities and a diverse range of culinary options. Consequently, the development of highways in India is playing a pivotal role in fostering the growth and professionalization of the once unorganized roadside restaurant and dhaba industry.

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