How CSR can elevate Restaurant Industry further Impacting the society

The food and beverage (F&B) industry is among the world's fastest-expanding service sectors, boasting an impressive annual growth rate of 7.2 percent. The food service market in India was estimated to be about 70 billion US dollars in 2023. It is estimated to increase to 125 billion U.S dollars in 2029 as reported by Statista. With the aim of maximizing profits, restaurants and F&B brands worldwide are continually striving for financial success. Beyond the pursuit of profitability, these businesses bear a significant responsibility towards societal well-being, known as Corporate Social Responsibility (CSR). CSR emphasizes the importance of businesses contributing to societal benefit through responsible practices and initiatives.

- Sakshi Singh

Under the recent amendment, companies achieving either a turnover of INR 1000 crores or a market valuation of INR 500 crores are now obligated to allocate 2 percent of their average net profits from the past three years towards Corporate Social Responsibility (CSR) initiatives. This marks a significant shift from the previous approach, where CSR activities were purely voluntary for corporations.

Corporate Social Responsibility encompasses a variety of legal and operational measures a business can undertake to positively impact society. For example, KFC has adopted initiatives focused on waste management, water conservation, and staff training to enhance its environmental contributions. Such measures demonstrate how restaurants can actively participate in resource conservation and societal awareness, thereby fulfilling their role in societal betterment through mindful operational practices.

Why restaurants should consider CSR?

Recent research highlights that over three-quarters of global consumers lean towards purchasing from companies that are socially responsible. This trend extends into the dining sector as well, with patrons willing to spend an additional 5 to 10 percent for the assurance that a restaurant invests in its community.

Echoing these findings, KT Prasad, Country Sales Director at Zendesk, emphasizes the critical role of a responsible corporate image in India. He notes, "To navigate the crowded and competitive market landscape successfully, Indian brands have recognized the necessity of presenting themselves as conscientious entities." This insight underscores the strategic importance of Corporate Social Responsibility (CSR) in building brand loyalty and sustaining business growth.