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Thriving Hospitality Scene Elevates Bengaluru’s Status as Premier Destination

Hospitality Industry in Bangalore
VRO Hospitality Bangalore | fastest growing F&B chain 2024

Bengaluru, the bustling metropolis known for its technological prowess, is now making waves in the hospitality industry. With a surge in demand, investment, and tourism, the city has witnessed an unprecedented expansion in its hospitality sector in 2023.

According to P. C. Rao, president of the Bruhat Bengaluru Hoteliers’ Association (BBHA), the city now boasts a remarkable statistic – every fourth commercial establishment in Bengaluru is a food joint. This surge in culinary offerings ranges from humble darshinis and ice cream parlors to luxurious five-star hotels and fine dining establishments. Rao highlights the staggering growth, noting that in 2023 alone, around 200 new food establishments, including bakeries and sweet stalls, emerged, with two more opening their doors in January 2024.

Moreover, Bengaluru is set to welcome the arrival of ten new big hotels, including renowned brands like Hyatt, Hilton, and Taj. This influx of hospitality giants is indicative of the city’s burgeoning appeal to both business and leisure travelers.

Rao attributes this rapid expansion to the city’s diverse economic landscape, which includes thriving industries such as aerospace, automobile, and electric vehicles, as well as a burgeoning startup ecosystem. Additionally, Bengaluru hosts numerous regional offices of central government organizations, defense establishments, and research centers, attracting a constant stream of visitors.

A significant driving force behind this growth is increased investment, with real estate companies, politicians, and affluent individuals recognizing the lucrative potential of the hospitality sector. Karunakar Hegde, vice-president of the Federation of Wine Merchants’ Association, notes the resurgence of high-profile liquor shops and pubs, further fueling investment interest.

Mukesh Tolani, head of the Bengaluru chapter of the National Restaurant Association of India (NRAI), emphasizes the allure of the industry, with many viewing it as a “gold mine” ripe with opportunity. Tolani also highlights the burgeoning demand for establishments with bars, including microbreweries.

However, amidst this prosperity, challenges persist, particularly concerning liquor licenses. Pub owners report difficulties in obtaining licenses, leading to a surge in the resale of CL – 9 licenses. Despite these hurdles, the sector remains resilient, with around 100 new pubs obtaining licenses through resale in the past year alone.

In a testament to the sector’s vitality, approximately 500 new licenses have been secured in the CL-7 category, reflecting sustained growth and demand in Bengaluru’s vibrant hospitality scene.

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