Hospitality: Challenges faced by the industry
* In the hospitality industry competition is fierce. New eateries crop up almost every week and sustenance poses a major problem. There is no monopoly in this industry.
* In Mumbai, land costs as much as Rs 200 crore an acre. This is a big problem for the hotel industry. Land owners would rather sell to offices and malls than to hotels, which take longer to yield profits.
* A lack of funds, and the unwillingness of banks to lend to restaurants.
* Retaining trained staff is a major concern for big and small players in the industry. Hotels have become rampant poaching grounds.
* In the wine industry taxes and barriers to interstate commerce are hindrances to growth.