Ahmedabad: Ahmedabad’s pizza scene has taken a significant hit, with 80 to 100 pizza outlets closing in the last 10 months as health-conscious diners cut back on carbs and calories. The restaurant sector as a whole is struggling due to rising costs, intense competition, and declining footfalls. Delivery apps have replaced traditional walk-ins, leading not only to the closure of pizzerias but also of 5-6 large-format restaurants with seating capacities exceeding 100.

“Pizza demand peaked a few years ago but has since declined,” said Nafees Hussain, a pizza brand owner. He noted that the number of pizza outlets in the city fell from 400-425 in 2022-23 to 325-350 today. Stagnant demand, limited menu variety, and increasing costs—such as a 25-30% rise in raw materials and a 30-40% hike in salaries—have significantly squeezed margins. Fierce competition prevents restaurants from passing these costs to consumers, and GST on rent has added to their burden. In the past 18 months, three brands have shut down entirely.

Former franchisee Stavan Jani, who once operated eight outlets of a national pizza brand, has transitioned to his own brand after closing six outlets. “Despite diners’ enthusiasm for new cuisines, razor-thin margins due to competition remain a major challenge,” he said.

Cafes are also struggling. Vijaysinh Rathod, owner of a cafe chain, reported a shift toward healthier, low-carb, and low-sugar options. While liquid items account for 60% of revenue, demand for food items has dropped 30-40% in the past six months. Bread and bakery products are being avoided by many customers.

Online food delivery has further reduced walk-in traffic. While late-night orders of fast food have grown, large restaurants with extensive seating struggle to fill tables on weekdays. “Margins have shrunk dramatically,” said restaurant owner Nipun Kanodia, adding that smaller 50-seat outlets are better positioned to survive due to lower rental and labor costs.

Narendra Somani, president of the Hotels and Restaurant Association of Gujarat, highlighted the intense competition in Ahmedabad, which now has 10,000 food outlets—20–25% more than pre-COVID levels. This saturation has led to the closure of several large-format restaurants in the past six months.

Fast-food outlets are faring better, especially during festive seasons. Sheel Dhanani from the Gujarat Chamber of Commerce and Industry observed a surge in late-night orders for pizzas and burgers but a decline in walk-in customers due to online delivery. Premium restaurants, however, continue to attract patrons willing to spend on innovative dining experiences.