Indian Malls Intensify Restaurant Hygiene Oversight Amid Regulatory Crackdowns

Indian malls are increasing oversight of restaurant operations amid concerns over food safety and hygiene, following recent enforcement actions by food and drug authorities. Major mall operators like DLF Malls, Phoenix Group, and Prestige have sent new warnings to food and beverage (F&B) tenants, emphasizing strict adherence to hygiene and safety protocols to avoid reputational damage.

The crackdowns, led by regulatory bodies in Maharashtra and Karnataka, have resulted in the suspension or sealing of licenses for several restaurants, including KFC, Punjab Grill, and Domino's, in various malls. Mall operators conduct regular audits, with some taking a hard stance on violations.

The revenue contribution of F&B outlets in leading malls has surged 30-40% over the past year, making them crucial tenants. Experts note that while malls closely follow protocols, recent violations have brought the issue into the public domain, risking the malls' reputation.

"We are very concerned about recent hygiene and food safety protocols being breached," stated an emailed alert from a leading mall operator to a QSR chain, reviewed by ET, emphasizing "zero tolerance" on lapses.

Dalip Sehgal, CEO of Nexus Select Malls, highlighted the critical nature of maintaining standards, given the high consumer footfall (over 135 million annually) and the reputational risk to malls. Muhammad Ali, CEO of Retail at Prestige Group, noted that ensuring cleanliness is part of their responsibility, though quality control of food is not within their scope.

Recent actions include the suspension of KFC's godown in Mangaluru's City Center Mall, Punjab Grill in Seawood Mall, and Domino's in R-City Mall, Mumbai.

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