F&B Industry Welcomes Budget 2025: Expert Reactions

F&B Industry Welcomes Budget 2025: Expert Reactions

By Nishang Narayan

Published on February 4, 2025

The food and beverage industry has welcomed the budget’s emphasis on economic expansion, job creation, and infrastructure development. Industry experts believe these measures will drive growth, create opportunities for MSMEs, and foster innovation.

Aayush Madhusudan Agrawal, Founder & MD shared his perspective on how the budget supports the restaurant and hospitality industry.

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"The Union Budget 2025-26 lays a strong foundation for transformative growth, particularly for the restaurant and hospitality industry and the real estate sector. The government's focus on increasing disposable income through tax relief and job creation is a significant boost for our sector. We anticipate increased consumer spending, leading to higher foot traffic in restaurants, more frequent dining out, and sustained demand for food delivery services. The budget's emphasis on urban redevelopment, including the ₹1 lakh crore Urban Challenge Fund and enhanced infrastructure spending, creates exciting opportunities for mixed-use developments and real estate projects. Additionally, the allocation of ₹1.5 trillion fiscal support for MSMEs is expected to drive capacity expansion, creating a ripple effect that will further fuel demand for industrial real estate. The support for Tier-2 cities and the focus on urban innovation will not only stimulate real estate growth beyond the metros but also bolster homebuyer confidence and encourage further expansion. From gig worker welfare to the development of smart, sustainable cities, this budget's holistic approach will drive India's next wave of economic progress, creating new avenues for investment, innovation, and growth across our industries." 

Teja Chekuri, Founder of Full Stack Ventures, emphasized the impact of agriculture-focused initiatives on the food industry.

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"A landmark budget for India’s food future!

The focus on agriculture as the first engine of growth, the Dhan Dhanya Krishi Yojana, and procurement support for pulses signal a bold step toward empowering our farmers and bringing nutrient-rich, traditional grains back to our tables. The creation of Agri districts and the Bihar Makhana Board will help preserve and promote regional food heritage while strengthening rural economies. As consumers demand transparency and healthier choices, this budget sets the stage for a true farm-to-table revolution. The government's commitment to self-sufficiency in pulses and investment in food technology and entrepreneurship will not only nourish our nation but also inspire the next generation to rediscover the grains and recipes of our ancestors."

A win for farmers, a win for food innovation, and a win for India’s health.

Saurabh Wadkar, Founder of Rooted, praised the budget's focus on food security and MSME support while also pointing out areas needing improvement.

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" The Union Budget 2025-26 reflects a bold step towards shaping India’s future by strengthening agriculture, MSMEs, and entrepreneurship. The Dhan Dhanya Krishi Yojana and the focus on self-sufficiency in pulses will stabilize supply chains, ensure fair pricing for farmers, and build a more resilient food ecosystem. With consumers becoming more conscious about what they eat, the emphasis on nutrition, value-added agriculture, and food security, signals a forward-thinking approach. Establishing the National Institute of Food Technology is a step in the right direction—it will not only boost food innovation and processing but also cultivate the next generation of entrepreneurs and skilled professionals in this space.
 
The government’s push for expanding credit access—especially for MSMEs, first-time entrepreneurs, and women-led businesses—is commendable. However, access to capital is just one part of the equation. The real impact will be seen in how seamlessly and efficiently these funds reach businesses without bureaucratic roadblocks. The introduction of Bharat Trade Net for trade documentation and financing solutions could be a game-changer if executed well, further simplifying the ease of doing business in India.
 
Beyond policy, this budget acknowledges the evolving aspirations of a modern India. The expansion of UDAN, tourism incentives, and infrastructure investment will unlock new opportunities across hospitality, logistics, and regional trade. This will create a ripple effect on consumption patterns, employment, and GDP growth—a shift that visionary entrepreneurs must prepare for.
 
That said, taxation remains an area that requires urgent reform. High GST rates on processed foods and compliance challenges continue to slow down growth. This budget lays the foundation, but the real test lies in execution. India is on the brink of an entrepreneurial revolution—the right policies, if implemented well, can propel businesses into an era of unprecedented growth."

Conclusion

The Union Budget 2025-26 has set the stage for economic transformation by addressing key challenges and unlocking new growth avenues across industries. While leaders across the travel, hospitality, and food and beverage sectors have welcomed the initiatives, they also emphasize the need for continued reforms and strategic implementation to maximize their impact. With a strong focus on infrastructure, ease of doing business, and sector-specific incentives, this budget lays the foundation for a more dynamic and competitive India.


Spalba Eyes ₹100 Cr Turnover by FY26, Expands into 6 Asian Markets

Spalba Eyes ₹100 Cr Turnover by FY26, Expands into 6 Asian Markets

By Nishang Narayan

Published on May 30, 2025

Spalba, a SaaS-enabled B2B venue marketplace, has set its sights on a ₹100 crore turnover by FY 2026. The company recently closed FY 2025 with a consolidated turnover of ₹60 crore, marking an impressive 3000% year-on-year growth since its inception just five years ago. What makes this journey even more remarkable? Spalba remains fully bootstrapped and profitable, a rarity in today’s startup ecosystem.

Driven by innovation, Spalba is expanding rapidly across Asia. The platform has entered six new markets—Malaysia, Vietnam, Sri Lanka, Myanmar, Bhutan, and Nepal—taking its VenueTech vision global. Back home, the company plans to grow its venue inventory from 11,000 to 13,000 and expand property listings from 2,067 to 4,500 by FY26, effectively doubling its offering and increasing its presence in over 80 Indian cities.

“Our journey from a bootstrapped startup to a ₹60 crore revenue run-rate has been driven by continuous innovation and an unwavering commitment to customer success,” said Vishal Puri, Co-Founder of Spalba. “With our tech-first approach—combining AR-powered Virtual Property Tours, an Event Mockup Builder, AI-driven sales tools, and more—we expect to cross ₹100 crore by FY 2026 and continue modernizing India’s ₹200 billion events industry.”

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Over 250 marquee properties including The Leela, Radisson Hotel Group, Accor, and The Oberoi have partnered with Spalba to streamline venue sales and boost cross-selling opportunities. The platform not only simplifies the venue booking process with immersive digital walkthroughs but also reduces the need for paperwork and physical site visits—supporting both revenue growth and sustainability for its clients.

Founded in 2020, Spalba is redefining event planning by making venue discovery and booking faster, smarter, and more collaborative. Its roadmap to ₹100 crore highlights a focus on scalable innovation, customer-centric solutions, and long-term value creation—all without raising external funding.


Starbucks India Faces 65% Surge in Losses in FY25 Despite Modest Sales Growth

Starbucks India Faces 65% Surge in Losses in FY25 Despite Modest Sales Growth

By Nishang Narayan

Published on May 27, 2025

Starbucks India posted a 5% rise in revenue to ₹1,277 crore in FY25, but the good news ended there. Losses widened significantly by 65% to ₹135.7 crore, up from ₹82 crore in the previous year, reflecting the growing strain on profitability amid soft demand in the quick service restaurant (QSR) segment.

Operating under a 50:50 joint venture with Tata Consumer Products as Tata Starbucks Pvt Ltd, the company noted that almost half of the losses—₹67.6 crore—were borne by Tata Consumer. According to the brand’s annual report, demand across the QSR space remained muted through most of the year, though a rebound was noted in the latter half. Still, profitability remained under pressure.

Despite the headwinds, Starbucks continued to expand, opening 58 new outlets and entering 19 new cities, including several in tier-2 markets. However, this was a notable slowdown compared to the 95 new outlets launched in the previous year. As of now, Starbucks operates 479 stores across 80 Indian cities.

The company remains optimistic about long-term growth in India. “We remain committed to increasing our store base in India and get to 1,000 outlets by FY28, despite a more moderate number of store openings in the short term,” Starbucks said in a statement.

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Tata Consumer Products Chairman N Chandrasekaran addressed the broader economic landscape, noting that India remains a stronghold of economic growth amid global uncertainty. “India’s long-term growth is underpinned by strong demographic and economic fundamentals and ongoing structural reforms,” he told shareholders.

However, rising competition from both international and domestic brands continues to challenge Starbucks’ market share. Rivals like Tim Hortons and Pret A Manger have entered the Indian market with aggressive expansion plans, while homegrown brands like Third Wave Coffee and Blue Tokai already operate more than 250 outlets combined.

A senior QSR official highlighted a key operational challenge: “Starbucks’ revenue per square foot is about 35% lower compared to metros. Also, city stores seem to be cannibalising heavily after it opened stores at a record pace in cities such as Mumbai and Delhi.”

While a strong takeaway culture offers a margin boost, uneven store performance continues to drag the bottom line. Some stores thrive, but others suffer from low footfalls and declining revenue per square foot, affecting overall profitability.

With the coffee wars heating up and Indian consumers spoilt for choice, Starbucks will need more than just store count to brew up sustained success in the coming years.


OYO Adds 3500 Corporate Clients in FY25, Sees 20% YoY Growth

OYO Adds 3500 Corporate Clients in FY25, Sees 20% YoY Growth

By Nishang Narayan

Published on May 18, 2025

OYO is riding high on its corporate wave. The global hospitality tech brand has added over 3500 new corporate clients in FY25 through its business accelerator division, marking a 20% year-on-year growth in this segment. With this, OYO’s corporate network now exceeds 6500 clients, ranging from large enterprises to traditional business houses and startups.

Mumbai emerged as the top-performing city, onboarding over 700 clients, followed by Hyderabad (400) and Pune (350). Other metros such as Chennai and Bangalore also contributed significantly to the growth.

Some of the key additions to OYO’s client roster include SBI Life, Cult Fit, and Sun TV Direct, further strengthening its footprint among large, pan-India brands.

The growth momentum picked up following the launch of Oravel Travel Solutions in October 2024—a dedicated vertical to meet the end-to-end needs of corporate travellers. From smooth check-ins at over 1100 serviced hotels across 300+ cities, curated meal options and conference support, to tailor-made event and holiday packages, OYO has positioned itself as a comprehensive solution for business travel.

Manish Kashyap, Head of OYO Business Accelerator, noted:

“The growth has been driven not just by large corporations but also by a diverse mix of SMEs, traditional business houses, startups, travel management companies, and even film production houses. These clients are increasingly leveraging OYO’s expansive network, flexible bookings, and tech-enabled tools to meet their evolving travel needs.”

OYO also witnessed a rise in long-term and event-based stays, signaling a shift in how businesses engage with hospitality solutions.

With a strong pipeline ahead, OYO aims to double down on its premium brand offerings like SUNDAY, Palette, Clubhouse Townhouse, Townhouse O, and Collection O.

According to the Global Business Travel Association, India has become the 4th largest business travel market in Asia-Pacific, with rising SME activity playing a major role. These trends have set the stage for OYO to scale faster and meet the evolving demands of modern corporate travel.

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