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India’s Restaurant Staffing Crisis: Why Retention is a Recipe for Disaster

October 10, 2025
in Business
Reading Time: 7 min

That perfectly plated biryani, the delightful dessert, the satisfying end to your meal – it all appears effortlessly on your table. But how often do we truly consider the immense human effort behind that seamless dining experience? The unsung heroes of the kitchen and front-of-house often remain unseen, yet their presence is everything.

Now, picture this: you’re a restaurant owner. You lock up for the night, anticipating another busy day. Then, before dawn, your phone lights up with frantic messages. With a jolt, you realize your entire kitchen team has vanished overnight.

Inside Masala Synergy

A bustling restaurant interior, like Masala Synergy, relies heavily on its dedicated staff.

This exact scenario hit Chef Suresh DC just weeks after opening his restaurant, Tuya, in Jubilee Hills. His entire five-year core kitchen team unexpectedly resigned overnight. “I had no time to process it,” he recounts. “My sous chef and I immediately got to work – washing, chopping, prepping, cooking, and serving 45 guests.” With a bare-bones service crew, they miraculously managed.

Yet, Chef Suresh’s harrowing experience is far from unique. Across India, countless restaurateurs face this recurring nightmare, often left to desperately search for new talent or simply struggle through, hoping to stabilize operations.

The paradox is striking: India’s restaurant industry is experiencing a boom. The National Restaurant Association of India (NRAI) predicts the food services market will expand by 8.1% – surpassing GDP growth – to reach an impressive ₹5,69,487 crore by year-end. Despite this incredible growth, a relentless cycle of staff turnover continues to plague kitchens nationwide.

Diners at 10 Downing Street

Even popular establishments like 10 Downing Street in Hyderabad face the industry’s staffing challenges amidst rapid growth.

Shaaz Mehmood, a managing committee member of the NRAI, highlights a critical disconnect: the rapid expansion of the restaurant sector doesn’t translate to an equally available workforce. “Hyderabad alone boasts 74,807 restaurants and an organized food services market valued at ₹10,161 crore, making it the sixth largest nationally. Mumbai, meanwhile, leads with a staggering ₹55,181 crore,” he states. “There’s constant discussion about grander spaces, diverse menus, and superior infrastructure. But who will actually deliver this on the ground? The service staff, the captains and their teams, the executive chefs and their brigades – they are the true architects of the dining experience. Recruiting is straightforward; keeping them is the real hurdle.”

Shreya Kapoor, co-founder of Delhi’s Masala Synergy, elaborates on the deep-rooted issue of attrition. “The hospitality sector, particularly restaurants, is inherently high-pressure,” she explains. “Extended shifts, a poor work-life balance, and the relentless physical and mental toll often result in severe burnout. The market is saturated with new establishments, creating fierce competition for talent. Employees frequently jump ship for even slightly better compensation or perks. This instability is exacerbated by a lack of structured training and transparent career progression opportunities.”

A busy day at Ci Gusta

The constant hustle of a busy restaurant like Ci Gusta highlights the relentless demands on staff.

Remarkably, the Indian Brand Equity Foundation projects the restaurant sector to directly employ 10.3 million people by 2028, a significant increase from 8.5 million in 2024. This trajectory positions the industry as one of India’s largest employers – surpassing many other sectors and becoming the nation’s third-biggest industry overall.

However, sheer scale doesn’t alleviate the underlying stress. “Despite these impressive figures, staffing remains a critical challenge,” notes Shaaz. He provides insight into the typical compensation structure: most waiters earn fixed salaries, with approximately 80% remitted to their families. Little remains for personal use, as employers often cover food and accommodation. But today’s younger workforce seeks more than basic necessities. Consequently, even a modest ₹2,000 increase in pay is enough to entice them to switch jobs. Shaaz also advocates for a return to a robust tipping culture, viewing it as a tangible incentive that staff once eagerly anticipated, noting that the current service charge system falls short.

He emphasizes that effective training is another crucial path forward. “When employees acquire new skills, they envision a future and growth within their roles.” As India gears up to become the world’s third-largest food services market by 2028, surpassing Japan, the National Restaurant Association of India (NRAI) is actively pushing for supportive policies and formalized training programs to fully realize this immense potential.

Japtej Ahluwalia, co-founder and executive director of Pricol Gourmet (Double Roti, Chennai) and Secretary of NRAI, clearly outlines the primary drivers of attrition: “Delayed salary payments are the top complaint, followed by excessively long working hours. Furthermore, because a significant portion of the restaurant sector remains unorganized, there are minimal barriers to entry. Anyone with ₹50 lakhs can open a restaurant, often without a true understanding of the industry’s complexities. The perceived glamour draws many, but staff poaching is rampant, sometimes for pay raises as small as ₹500 or ₹1,000. When these attrition pressures accumulate, employees simply leave.”

While the unorganized segment currently dominates, this trend is expected to reverse by 2028. “This shift makes the establishment of dedicated skill development centers absolutely essential,” Shaaz asserts. “We must abandon the one-size-fits-all approach to the food business.”

Hyderabad-based hospitality consultant Honey Guha views training as more than just skill enhancement; it’s a powerful morale booster. “It transcends mere technical abilities,” Guha explains. “When staff feel valued by patrons, participate in team events, and have their input considered in discussions, they develop a profound sense of belonging. Through comprehensive training, they don’t just envision personal career advancement in this dynamic industry; they see their families prospering alongside them.”

Diners at 10 Downing Street

Guests enjoying their meal at 10 Downing Street, a testament to quality service.

Anthony Lawrence, a veteran with over 26 years in Hyderabad’s hospitality scene, exemplifies how growth and ongoing training foster loyalty. Starting as a bar back at 10 Downing Street, he now serves as the General Manager of their Gachibowli outlet. Anthony attributes his long tenure to the professional development he received, stating, “We were taught to engage with guests, recall their regular orders, and build professional relationships. This focus on personalized attention not only improved our performance but made us feel valued. I never considered leaving because the management consistently treated us with respect and appreciation.”

Shreya Kapoor of Masala Synergy concurs, emphasizing that “cultivating an atmosphere of respect, inclusivity, and recognition is paramount. Providing skill-enhancement programs, well-defined career trajectories, organized shifts, and equitable scheduling ensures that employees feel esteemed, both in their professional roles and personal lives.”

10 Downing Street

10 Downing Street has a long-standing reputation in Hyderabad as a preferred dining spot.

Vikrant Batra, co-founder of Café Delhi Heights, calls for a fundamental change in perspective: moving away from viewing restaurant jobs as temporary stepping stones. “When nurtured correctly, these roles can evolve into fulfilling lifelong careers,” he states. “As employers, we have a responsibility to cultivate a sense of work-life balance, a crucial yet often overlooked aspect in this demanding industry. Prioritizing fair compensation is equally vital. When staff members believe they can forge both a sustainable career and a fulfilling life within a brand, turnover ceases to be a problem; it transforms into lasting loyalty and mutual growth.”

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