Unmasking Deep Discounts: The True Cost to Restaurants

Unmasking Deep Discounts: The True Cost to Restaurants

By Author

Published on December 12, 2024

The National Restaurant Association of India (NRAI) has raised concerns about the long-term implications of in-dining deep discount programs and mandatory aggregator payment platforms, warning that they threaten the financial sustainability and independence of restaurants. While these programs may appear attractive for boosting short-term footfall, their long-term effects include eroded profit margins, disrupted pricing structures, and diminished brand value.

Small and independent restaurants are particularly vulnerable. Unlike larger chains with substantial financial backing, smaller establishments struggle to sustain operations when offering aggressive discounts. These practices risk creating an environment where customers expect unsustainable deals, undervaluing the quality of the dining experience.

Additionally, the bundling of deep discount schemes with aggregator payment platforms exacerbates the issue. Restaurants are compelled to pay commissions as high as 4–8% per transaction, far exceeding the standard 1–1.5% charged by conventional payment gateways. This adds to the financial strain while giving aggregators increased control over customer relationships.

As customers gravitate toward aggregator-driven ecosystems, restaurants face the risk of losing direct engagement with their patrons. This compromises their autonomy and hinders the development of loyal, long-term customer bases.

The NRAI urges restaurants to critically assess such programs and adopt sustainable practices that prioritize quality and independence. Deep discounting may seem like a competitive necessity, but its hidden costs make it a double-edged sword. Restaurants must instead focus on creating unique dining experiences and fostering direct customer relationships to ensure their long-term success.

Insights for this article are inspired by the National Restaurant Association of India.


India Exports Makhana, So Why Is It Still So Expensive at Home?

India Exports Makhana, So Why Is It Still So Expensive at Home?

By Hariharan U

Published on October 22, 2026

India’s makhana industry is gaining international traction, but a question remains for domestic consumers: why does a traditional Indian food often carry a premium price tag in the very country that produces most of it?

India exported 7,264.89 metric tonnes of makhana and makhana products in FY 2025–26, valued at approximately ₹192.96 crore, according to government data. With demand expanding across international markets, the opportunity extends beyond exporting the raw product to developing branded snacks and other value-added foods. 

Why does makhana cost so much?

Unlike many conventional crops, makhana requires labour-intensive harvesting and specialised processing. Its seeds are collected from ponds or cultivated fields, cleaned, dried, roasted and popped through a process that has traditionally depended on skilled workers. The seeds also undergo multiple stages of handling before becoming the white, puffed product consumers recognise.

Research by the Indian Council of Agricultural Research has highlighted the demanding nature of this process, while value-chain studies identify processing, grading, packaging, transportation and intermediary margins as contributors to the final retail price. The conversion from raw seed to popped makhana also means that considerably more raw material is needed to produce a kilogram of the finished product.

Premium packaging and branding add another layer to the price. As makhana enters organised retail and health-focused snack categories, flavoured varieties, smaller consumer packs, marketing and distribution can increase what shoppers pay. However, the extent of each cost depends on the product, quality and route to market.

Rising demand is another factor. Government data indicates that average makhana prices increased from around ₹500 per kilogram in 2020–22 to nearly ₹1,250 in 2025, while production grew by only 4–5% between FY 2021–22 and FY 2024–25. This points to a supply response that has struggled to keep pace with growing demand.

The opportunity lies beyond raw exports

India’s next challenge is to capture more value from its production advantage. Selling bulk makhana can open international markets, but processing, flavour development, quality standardisation and branding can create additional revenue opportunities for Indian businesses.

A July 2026 shipment of value-added flavoured makhana from Bihar to Canada demonstrated this potential. According to the government, the initiative enabled associated farmers to realise over 50% higher returns through value addition and improved market access. 

Yet, value addition must extend beyond the retail shelf. Better processing infrastructure, improved productivity, stronger farmer-producer organisations and more direct links between growers, processors and buyers could help distribute the gains more widely.

For consumers, the question is not simply whether makhana is worth its price, but what that price represents. For the industry, the bigger opportunity is to build a value chain in which export growth, product innovation and better farmer returns progress


Chennai and Kolkata Airports May Go Private: Weighing the Pros and Cons

Chennai and Kolkata Airports May Go Private: Weighing the Pros and Cons

By Manu Vardhan Kannan

Published on October 22, 2026

The government of India is considering handing over Chennai and Kolkata airports to private companies under the Public-Private Partnership (PPP) model through long-term leases. The proposed move aims to upgrade airport infrastructure, improve passenger services and bring operations closer to international standards. The Union Ministry of Civil Aviation is examining the proposal, which could add the two airports to the list of major Indian airports managed by private operators, including Delhi, Mumbai, Bengaluru and Hyderabad.

Under the proposed arrangement, private companies would manage day-to-day operations, shops, restaurants and infrastructure development. However, air traffic control and security would remain under the direct control of the Centre, according to sources in Delhi.

The proposal comes amid growing calls for improved airport infrastructure and passenger services. The Tamil Nadu government has long pushed for better service quality, improved passenger facilities, increased air traffic capacity and stronger cargo handling capabilities at Chennai Airport.

What Could Change for Passengers?

Private participation could bring fresh investment, improved terminal facilities and more efficient airport operations. Passengers could benefit from better seating, cleaner washrooms, upgraded baggage systems, improved food and retail options, and faster check-in and security processes.

For Chennai Airport, additional infrastructure capacity could also help address operational bottlenecks and improve passenger movement. Better cargo facilities and airside infrastructure could support the airport's ability to handle growing traffic. However, these improvements are not guaranteed. The overall benefits would depend on the investment commitments, operational standards and service requirements included in the final agreement.

Will Airport Charges and Retail Prices Increase?

One of the major concerns surrounding airport privatisation is its potential impact on passenger expenses. Airport charges, including the User Development Fee (UDF), are subject to regulatory oversight, while airport-related costs can also influence airline operating expenses and, in turn, ticket prices.

Private operators may also look to increase revenue through restaurants, cafés, retail outlets, parking and other commercial services. While this could introduce more brands and improve the shopping and dining experience, higher commercial rents and concession fees could push up prices for passengers.

The impact on businesses operating inside the airports could also vary. Established brands may benefit from better retail spaces and increased passenger spending, while local food businesses and smaller retailers could face challenges if rents and contract terms favour larger operators.

Balancing Investment with Passenger Interests

The success of the proposed PPP model will depend on how effectively passenger interests are protected alongside commercial objectives. Clear service standards, transparent airport charges, reasonable prices for essential food and travel items, and regular passenger satisfaction reviews could help ensure that infrastructure improvements translate into real benefits. Providing opportunities for local food brands, retailers and cultural businesses could also help Chennai Airport showcase Tamil Nadu's identity while supporting smaller enterprises.

Ultimately, private participation could improve Chennai and Kolkata airports, but better facilities should not come at an unreasonable cost to travellers. The key test will be whether passengers experience shorter queues, improved services and better infrastructure without facing disproportionate increases in airport fees and retail prices.


Dammam Airport Attack Raises Fresh Concerns Over Saudi Air Travel

Dammam Airport Attack Raises Fresh Concerns Over Saudi Air Travel

By Manu Vardhan Kannan

Published on October 22, 2026

An attack targeting King Fahd International Airport in Dammam, Saudi Arabia, on Wednesday evening, October 21, killed one person and injured eight others, according to the country's General Authority of Civil Aviation. The injured were taken to hospital, with their conditions ranging from minor to serious. Authorities are also assessing the material damage caused by the incident.

The attack comes amid a growing wave of security incidents affecting Saudi Arabia's airports and critical infrastructure. While the country's airports have faced repeated attacks linked to Yemen's Iran-backed Houthi rebels, Saudi authorities have not confirmed who was responsible for the latest Dammam incident.

The escalating situation has raised concerns about airport safety, airline operations and passenger travel across the region. Flights have been diverted away from Dammam following the attack, while Riyadh's King Khalid International Airport has faced repeated strikes and restrictions on flight operations. Saudi Arabia has faced comparable Houthi attacks before, especially during the Yemen war from 2015 onward. The current wave is more severe because it has repeatedly hit major civilian airports, caused mass casualties, and shut Riyadh’s main airport.

Flight Disruptions Affect Indian Travellers

The security situation has also affected travel between India and Saudi Arabia, particularly for people travelling for Umrah. Flight cancellations, diversions and schedule changes have left some pilgrims facing delays, longer journeys and additional expenses.

As of October 22, Air India, Air India Express and IndiGo had suspended services on affected Saudi routes until October 24, while Akasa Air's suspension was extended until October 27. These dates are subject to further airline updates as the situation develops.

According to advisories from Indian authorities, airports in Dammam, Jeddah and Madinah continue to operate, although disruptions remain. Saudia is operating scheduled services from Dammam, Jeddah and Madinah, while some travellers requiring urgent departure may explore alternative routes through neighbouring countries, subject to visa requirements and flight availability.

For Umrah pilgrims, the main concern is reaching the holy cities and returning home safely. Although Jeddah and Madinah remain operational, flight changes and cancellations can affect travel plans at short notice.

Indian Authorities Issue Safety Advisory

The Indian Embassy in Riyadh has urged Indian nationals to follow instructions issued by local authorities and remain alert to security developments. Citizens have also been advised to stay indoors and move to the nearest safe shelter if an aerial attack or alert occurs.

Indian travellers have been asked to remain in contact with their airlines and travel agents, confirm flight status before leaving for the airport and prepare for possible changes to their journeys. The Indian government has also arranged assistance for citizens affected by the disruptions, including Umrah pilgrims.

The United States has separately ordered non-emergency embassy employees and eligible family members to leave Saudi Arabia amid the rising security risks.

As the situation continues to develop, the latest attack highlights the challenges facing Saudi Arabia's aviation sector. For airlines, passengers and the travel industry, maintaining safe operations and providing timely updates will remain essential as authorities respond to the ongoing security concerns.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.