After the arrival of the goods and services tax (GST) product, the hotel industry is facing too many challenges with small businessmen. For the hotel and restaurant industry, the past 12 months have been a lot of trouble. It is so difficult that their business has reached the level of 2015 and many hotels and restaurants have to shut down.
Within the last 12 months, almost 50 famous dining restaurants and hamburger restaurants are closed in the country. The key reason for this is to get back the input tax credit from the hotel and restaurant. With this rising inflation and competitive environment, problems have arisen for these restaurant chains. Besides, due to the opening of the store at the hyper-local level, the profits of these restaurants have also reduced.
Jubilant Foodworks, which operates the restaurant of Domino's Pizza and Dunkin Donuts restaurant in India, has closed 40% of Dunkin Donuts Stores. These restaurants were walking in the deficit. Apart from this, TGI Friday also closed its three stores last month. US restaurant chain 'Wendy also has closed many of its branches in the country.
Published On : 22 May 2018