India's Eating-Out Economy
Licences, Liquor Permits and Red Tape
How many licences a restaurant needs in India, why liquor licences are costly and slow, and how red tape raises costs for small food businesses.
Opening a restaurant in India can require many licences.
Common licences
- FSSAI food licence or registration.
- Health trade licence from the municipality.
- Fire safety certificate.
- Shops and Establishments registration.
- GST registration.
- Signage licence.
- Eating house licence from police in some cities.
- Liquor licence to serve alcohol.
- Music licences to play recorded songs.
Liquor licences
- Issued by state excise departments.
- Fees can run into lakhs of rupees a year in big cities.
- Approval can take months.
- Rules differ widely across states.
Costs of red tape
- Time: months before opening.
- Money: fees and consultants.
- Bribes: sometimes demanded to speed approvals.
Reforms
- Online single-window systems in some states.
- Self-certification for some approvals.
- Industry groups like NRAI have pushed to reduce the number of licences.
The waiting restaurant
A new restaurant is fully built but can't open for three months while it waits for fire and liquor approvals, paying rent all the while.
Thinking a food licence is all a restaurant needs
Restaurants often need many licences, including fire and liquor.
Key takeaways
- Restaurants need many licences in India.
- Liquor licences are costly and slow.
- Red tape costs time, money and sometimes bribes.
- Single-window systems aim to simplify approvals.
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