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CHAPTER-1

INTRODUCTION

The service sector comprises of the “delicate” parts of the economy that creates services

rather than tangible objects. Economists divide entire economic activity into two broad

categories, goods and services. Service industries encompass a wide array of activities

like banking, communications, wholesale and retail trade; highly capital-intensive

activities like civil aviation and shipping; employment-centered activities like tourism,

real estate and housing; professional services such as engineering, computer software

development and medicine; infrastructure-related activities like railways, roadways;

nonprofit economic activity, all consumer services, and all government services,

including defence and administration of justice. The diversification in service

organizations can be justified with gigantic international corporations operating in such

industries as airlines, banking, insurance, telecommunications, and hotels at one extreme

and a huge array of locally owned and operated small businesses, such as restaurants,

laundries, optometrists, beauty parlours, and numerous business-to-business services at

the other extreme. Today, service sector is the largest and fastest growing sector globally

generating huge pool of employment and global output. A services-dominated economy

is characteristic of developed countries. India is also service-oriented economy. This

chapter primarily reflects light on the growth of service sector in India. The Indian

tourism and hospitality industry has emerged as one of the key drivers of growth among

the services sectors in India. This crucial role of hospitality has led to discuss the growth

of hospitality industry in India in the subsequent section. Providing catering and

accommodation are the two main functions of hospitality business. The ensuing section

develops an insight about catering business. Since the present study is about catering

establishments at National Highway No-1 (NH-1), the succeeding sections in this chapter

help to develop an understanding about the network of national highways in India, NH-1

and finally the growth of catering establishments at NH-1. The information presented in

this chapter is furnished into following several headings.

1.1 Growth of Service Sector in India

1.2 Growth of Hospitality Industry In India

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1.3 Understanding Catering

1.4 The National Highways Network of India

1.5 The Study Area

1.6 Growth of Catering Establishments on NH-1

1.1 Growth of Service Sector in India

The service sector is a vital cog in the wheel of the Indian economy. It constitutes a large

part of the Indian economy both in terms of generating employment potential and its

contribution to national and state income, trade flow and Foreign Direct Investment (FDI)

inflow. The liberalization and reforms in 1990 have catalyzed the growth in service sector

in India. The actual growth in service sector in India started in mid-1980s and took a

swift pace in the 1990s after economic reformation. Since then, over the years, India’s

overall and services growth rates have outpaced those of the world (Figure 1.1). Contrary

to world services growth that has been moving in tandem with its overall growth with

mild see-saw movements over the years, India’s services growth has been consistently

above its overall growth in the last decade except for 2003 (when the former was

marginally lower than the latter). Thus, for more than a decade, this sector has been

gearing up the growth of the Indian economy with a great amount of stability (Figure

1.1).

After India’s independence in 1947, Gross Domestic Product (GDP) grew at an average

decadal growth rate of less than four percent during the first three decades (1950-1970)

subsequently. Being an agrarian economy, the share of services sector was insignificant

and a large number of services were government monopolies. Figures given in Table 1.1

indicate that over the time, share of services in GDP has increased while that of

agriculture has declined. In the last decade, the share of services has surpassed the

combined share of agriculture and industry, making it the most important contributor to

the country’s economy. There are variations in growth and performance of different sub

sectors of services as indicated in Table 1.2. It shows that after the economic reforms of

the 1990s, the share of all the service sub sectors in GDP has increased. The share of

financing, trade and transport sectors in total service sector have increased.

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Figure 1.1

Growth Rate of Services GDP and Overall GDP India and World

(Source: http://indiabudget.nic.in/budget2013-2014/es2012-13/echap 10.pdf cited on 05/05/2014)

Table 1.1

Decadal Average of the Year on Year Share of the Different Sectors in India’s GDP for the Period 1950-2010 (%)

Sector 1950/51- 1960/61- 1970/71- 1980/81- 1990/91- 2000/01- 1959/60 1969/70 1979/80 1989/90 2000/01 2009/10

Primary/Agriculture 55.3 47.6 42.8 37.3 30.9 21.8

Secondary/Industries 14.8 19.6 21.3 22.3 23.3 24.5

Tertiary/Services 29.8 32.8 35.9 40.3 45.7 53.7

(Source:http://ipec.gspia.pitt.edu/Portals/7/Papers/Aprita%20Mukherjee.pdf cited on 05/05/2014)

While that of community, social and personal services has declined. At the global level

too, there is a significant share of services in world GDP i.e. 67.5% (US$70.2 trillion) in

2011as indicated in Table 1.3. Interestingly, the top 15 countries in terms of services

GDP are also the same in overall GDP in 2011. This list includes the major developed

countries and Brazil, Russia, India, and China. Among the top 15 countries with highest

overall GDP in 2011, India ranked 9th in overall GDP and 10th in services GDP. A

comparison of the services performance of the top 15 countries in the eleven-year period

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from 2001 to 2011 shows that the increase in share of services in GDP is the highest for

India (8.1 %) followed by Spain (6.3%).

Table 1.2

Decadal Average of the Year on Year Share of Services Sub-sectors in Total Services Sector and GDP (%)

Community, Social & Personal Services

Financing, Insurance, Real Estate & Business Services

Trade, Hotels & Restaurant

Transport, Storage & Communication

Share in Services

Share in GDP

Share in Services

Share in GDP

Share in Services

Share in GDP

Share in Services

Share in GDP

1950/51-1959-60

35.0 10.4 25.2 7.5 28.5 8.5 11.3 3.4

1960/61-1969/70

35.0 11.4 21.2 7.0 30.7 10.0 13.1 4.3

1970/71-1979/80

35.1 12.6 20.3 7.3 30.2 10.8 14.5 5.2

1980/81-1989-90

33.2 13.4 22.0 8.9 29.3 11.8 15.5 6.2

1990/91-2000/01

30.3 13.9 26.2 12.0 28.5 13.0 15.0 6.9

2000/01-2009/10

26.1 14.0 27.3 14.7 29.4 15.8 17.3 9.3

(Source: http://ipec.gspia.pitt.edu/Portals/7/Papers/Aprita%20Mukherjee.pdf cited on 05/05/2014) While China’s highest services Compound Annual Growth Rate (CAGR) of 11.1 per cent

was accompanied by marginal change in its share of services for this period. India’s very

high CAGR (9.2 %) which was second highest was also accompanied by the highest

change in its share.

This is also a reflection of the domination of the industrial sector along with services in

China in its growth, while India’s growth has been powered mainly by the services

sector. Despite the higher share of services in India’s GDP and dominance of industry

over services in China, in terms of absolute value of services GDP as well as growth in

services ( both decadal and annual in 2001, 2010, and 2011) China is still ahead of India

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(Table 1.3). Country estimates for 2012 show a deceleration in services growth in some

major countries. As Hospitality is a part of service sector therefore the next section is

contributed to find out the growth of hospitality Industry in India.

Table 1.3

Performance in Services: International Comparison

Country Rank Overall GDP Share of services

Change Services growth

(US$ billion) ( percent of

GDP) in rate ( percent)

Share

At At 2011 CAGR

Overall Services current constant over 2001-

GDP GDP Prices Prices 2001 11

2011 2011 2001 2010 2011 2001 2010 2011

1 US 1 1 14991.3 13225.9 77.0 78.3 78.4 1.4 2.9 2.5 5.1 2.1

2 China 2 3 7203.8 4237.0 40.6 41.9 41.7 1.1 10.4 9.9 8.9 11.1

3 Japan 3 2 5870.4 4604.1 70.6 69.9 70.5 -0.1 1.8 1.1 0.6 0.4

4 Germany 4 4 3604.1 3048.7 70.0 70.8 70.0 0.0 2.5 1.0 1.9 1.3

5 France 5 5 2775.5 2240.5 76.8 79.0 79.2 2.4 1.8 1.9 2.1 1.4

6 Brazil 6 8 2476.7 1126.4 65.4 66.2 66.5 1.1 1.8 5.0 3.1 3.8

7 UK 7 6 2429.2 2381.1 74.0 76.4 76.0 2.0 3.8 1.1 1.2 2.3

8 Italy 8 7 2195.9 1773.1 70.9 73.1 73.1 2.2 2.6 1.4 0.7 0.6

9 India 9 10 1897.6 1322.7 50.1 56.8 58.2 8.1 7.5 9.4 7.4 9.2

10 Russia 10 13 1857.8 947.2 56.3 62.4 62.1 5.8 3.3 3.9 3.6 5.5

11 Canada 11 9 1736.9 1233.5 65.0 69.9 69.7 4.7 3.5 2.6 2.2 2.7

12 Australia 12 11 1515.5 894.5 67.9 69.0 69.2 1.3 3.9 2.3 3.6 3.3

13 Spain 13 12 1478.2 1183.8 63.7 69.8 70.0 6.3 3.6 1.2 1.2 2.8

14 Mexico 14 14 1155.2 956.8 61.4 63.8 64.2 2.8 1.2 5.4 5.0 2.9

15 South Korea 15 15 1116.2 1056.1 60.5 57.0 56.6 -3.9 4.4 3.9 2.7 3.5

World 70201.9 52667.7 68.2 67.6 67.5 -0.7 2.8 2.9 3.6 2.6

(Source: Economic Survey of India 2012-13 http://indiabudget.nic.in/budget2013-2014/es2012-13/echap-10.pdf cited on 05/05/2014)

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1.2 Growth of Hospitality Industry in India

Although the origin of the hospitality in India cannot be traced to a definite point of time,

there is evidence of its presence even during the Indus Valley Civilization and Vedic era.

In olden days, travel was predominantly undertaken for pilgrimage and trade. The

concept of char dham (i.e., visiting religious places located in the four corners of India)

among the Hindu community is an important indicator of the significance accorded to

pilgrimage by our ancestors. The country stands dotted with many such shrines, some of

which are frequented by people of all the faiths. Some such popular destinations are

Vaishno Devi, Amaranth Cave Shrine in Kashmir, Tirupate Balaji, Shirdi Sai, Sikh

Golden Temple in Amritsar, Dilwara Jain Temples at Mont Abu, Bodhgaya for

Buddhists, Ajmer Sharif Shrine in Rajashtan, Haji Ali Tome in Mumbai, St. Francis

Church in Goa, etc. Ancient texts and literature, as also Hindu mythology, have many

references to travel and the provision of accommodation facilities for travelling pilgrims

and traders by the authorities of those days.

Ancient India was well known for its silk, spices, gold and gemstones. Records of

famous travelers of the yore speak of Indians trading with countries like Greece, Italy,

Indonesia, Malaysia, China, and Japan, among others. The main mode of transport was

animals on land and boats and ships that criss-crossed rivers and seas for connectivity

with distant lands. That is why we find major trading cities in the world situated along

the banks of rivers or sea ports. Tewari (2009) has divided the origin and evolution of

the hospitality industry in the country into three periods:

• Ancient and Medieval Era (from Indus Valley Civilization to AD 1600)

• Colonial Era (AD 1601 to AD 1947)

• Modern Era ( 1947 onwards)

Ancient and Medieval Era (from Indus Valley Civilization to AD 1600)

The beginning of the hospitality sector in India stands rooted in the Hindu philosophy of

Atithi Devo Bhava, implying that an unannounced guest is to be accorded the status of

God. While it is not clear when hospitality emerged as a commercial activity in ancient

India, there is evidence of accommodation facilities for travelers and guests, though not

as organized as we see them today. The lodging houses during those times were known

as Dharamshalas (dharama in Sanskrit means religion and shala means school).

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Dharmshalas, the resting places for pilgrims, are believed to have their origins in village

choupals, which served as a meeting ground for villagers to plan and discuss various

social welfare and development measures. These become the places of lodging as

travelers started putting up camps there due to safety reasons. Gradually, with the help of

local residents and financial assistance from the rulers, zamindars, or other influential

people, permanent structures (or Dharmashalas) were build for travelers. Here they were

provided with a safe place to relax and spend the night. Other words in literature that are

indicative or according facilities to travelers are Anna-kshetras (Anna means food grains

and kshetra means area), Bhojnalaya (Bhojan means meal and alaya means house),

Paaakshala (Paak means cooking and shala means school), Panthagar (Panth means way

or road and agar menas house), etc. Similarly, in Ramayana and Mahabharata, there is a

mention of the existence of avasathagar (the other portion of the house) to accommodate

people who were invited during festivals, yagnas, or other celebrations organized by

kings.

Records of many foreign visitors and philosophers who came to India speak highly on the

hospitality facilities. Famous Chinese scholars Fa Hien (AD 399-414) and Huein Tsang

(AD 629-643), who came during the reigns of Chandragupta Vikramiditya and

Harhvardhana respectively, have mentioned the existence of shelters for travelers. Huein

Tsang has, in fact, referred to the wonderful arrangement of food for 10,000 students in

Nalanda University, a famous seat of learning.

In the medieval era, between the eleventh and thirteenth centuries, many Sarais and

Musafirkhanas were built, primarily as resting places for messengers of the postal system

established by the Sultans of the Slave or Mamluk dynasty. The system was refined by

Allauddin Khilijee, who established dak chowkis with horse runners and messengers to

deliver post. According to the Tarikh-i-Sher-Shahi by Abbas Khan Sherwani, the postal

service Diwan-i-Insa employed nearly 3,400 people to man 1,700 horse-relay stations at

sarais, which also served as post offices. The Mugahals continued the practice and built

many such sarais to accommodate travelers. The sarais during those times fulfilled the

basic necessities of a traveler-they provide water, a room, a stable for the livestock (like

horse, elephant, or camel) along with fodder, and sometimes also a place for worship.

There are several localities in Delhi, such as Katwaria Sarai, Lado3 Sarai, Sarai Kale

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Khan that have retained their names till date, although the medieval constructions are

hard to find.

Colonial Era (1601-1947)

The organized existence of the hospitality industry in India started taking shape during

the colonial period, with the advent of Europeans in the seventeenth century. The early

hotels were mostly operated by people of foreign origin to cater to the need of the

European colonizers and later officials of the Raj. Among the first such properties were

taverns like Portuguese Georges, Paddy Goose’s, and Racquent Court, which opened in

Bombay (now Mumbai) between 1837 and 1840. However, within a period of about ten

years, most of the taverns disappeared and respectable hotel like Hope Hall Family Hotel

began to make an appearance. Other famous properties included the Victoria Hotel, more

famous as British Hotel, by Pallanjee Pestonjee in 1840; Esplanade Hotel in 1871;

Watson’s, which was exclusively for Europeans; Auckland Hotel (1841) in Kolkata,

which went on to become the Great Eastern Hotel in post-independent India, and so on.

In December 1903, Jamshetji Nusserwanji Tata, inaugurated the Taj Mahal Palace and

Tower Hotel, overlooking the Gateway of India in Mumbai, following a racial

discrimination incident wherein he was refused entry into the Watson’s Hotel for being

an Indian. The hotel which is an architectural marvel is credited with being the first

luxury hotel for Indians by an Indian. In 1923, Shapurji Sorabji built the Grand Hotel in

Mumbai. A few years later, the Majestic Hotel was opened. Until 1900, almost all the

hotels were constructed and were run as per Western traditions. The first Indian style

hotel was Sardar Griha, which opened in 1900, and Madhavashram in 1908. The two

world wars brought a fresh lot of hotels to Mumbai, an important port city of the times.

The Ritz, The Ambassador, West end and Airlines, which opened during these years, are

fondly referred to as war babies by industry historians.

Modern Era (1947 onwards)

Post independence, there were in leaps in the hospitality trade in the country. The Oberoi

Group of Hotels (founded by Rai Bahadur Mohan Singh Oberoi) and the Taj Group took

over several British properties, maintained high standards of service and quality, and

expanded their business overseas. The later decades saw corporate like the Indian

Tabacco Company (ITC) also joined the hotel industry with properties under ITC

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Welcome Group. The year 1949 saw the organization of four regional hotels and

restaurants associations with head offices in Delhi, Mumbai, Calcutta (now Kolkata), and

Madras (now Chennai). These four associations were linked in a federation, the

Federation of Hotels and Restaurants in India (FHRAI), in 1955. The federation serves

as an interface between the hospitality industry, political leadership, government,

international associations and other stake holders in the trade. The Ashok Hotel in

Delhi’s diplomatic enclave has the distinction of being the first luxury hotel built by the

government. It was founded in 1956 to host independent India’s first ever international

event, a United Nations Industrial Development Organization (UNIDO) conference.

Realizing the importance and potential of the tourism and hospitality industry, the

government constituted India Tourism Development Corporation (ITDC) in 1966, which

opened many large and small hotels across the country. The most popular face of ITDC

is the Ashoka group of hotels that provides a wide range of hospitality related services.

Over the last few decades, various well-known international hotel chains have come to

India. These include Hyatt Hotels and Resports, Intercontinental Hotels and Resorts,

Marriott International, Hilton Hotels, Best Western International, Shangri-LA Hotels and

Resorts, Four Seasons Hotels and Resorts, Carlson Hotels worldwide etc.

Current Scenario

The liberalization of the Indian Economy has provided a boost to the hospitality industry

in a big way, leading to a sharp rise in the number of the inbound and domestic tourist in

the last two decades. While the main focus of the international traveler has shifted from

seeing the Taj Mahal in Agra and sunbathing on Goan beaches to doing business with

one of the world’s fastest growing economies, the boom in the information technology

and other service sector has placed substantial disposable incomes in the hands of Indian

people spurring the travel urge in them. The growth in Indian Hospitality Industry is

attributed to the country’s Incredible India international marketing campaign, which

mounted a concerted effort in international print and electronic media, besides Internet

and outdoor advertising and road shows, to showcase the country’s tourism-friendly

aspects. As a result Foreign Tourists Arrivals (FTA’s) to India have increased from 2.65

million in 2000 to 6.58 million in 2012 (Table 1.4). The growth can also be seen in

domestic tourism. The number of domestic tourists visits to the domestic destination have

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increased from 22.01 million in 2000 to 103.63 million in 2012 (Table 1.5) and number

of foreign tourists visits to the domestic destinations have increased from 0.59 million in

2000 to 2.07 million in 2012 (Table 1.5).

Table 1.4

Foreign Tourist Arrivals (FTA’s) in India (2000-2012)

Year FTA ( in Millions) Percentage change over the previous year

2000 2.65 6.7

2001 2.54 -4.2

2002 2.38 -6.0

2003 2.73 14.3

2004 3.46 26.8

2005 3.92 13.3

2006 4.45 13.5

2007 5.08 14.3

2008 5.28 4.0

2009 5.17 -2.2

2010 5.78 11.8

2011 6.31 9.2

2012 6.58 4.3

Source: India Tourism Statistics, 2012

Table 1.5

Status of Domestic Tourism in India (2000-2012)

Year Domestic Tourists Visits

(in Millions) Foreign Tourists Visits

(in Millions) 2000 22.01 0.59

2001 23.64 0.54

2002 26.95 0.51

2003 30.90 0.67

2004 36.62 0.83

2005 39.20 0.99

2006 46.23 1.17

2007 52.66 1.35

2008 56.30 1.43

2009 66.88 1.44

2010 74.77 1.79

2011 86.45 1.95

2012 103.63 2.07

Source: India Tourism Statistics, 2012

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India’s open skies policy has also lead to a massive growth in travel for business and

pleasure. The upgrading of national highways connecting various parts of India has

opened new avenues for the development of hospitality Industry to grow in India. The

growth can also be seen in the number of approved hotels and their room capacity. Table

1.6 throws a light on the growth of approved hotels and their room capacity, approved by

Ministry of Tourism, Government of India. In the year 2001 there was only 1 hotel with a

room capacity of 138 available in India approved by Ministry of Tourism, Government of

India (Table 1.6). At the end of year 2013 there are total 1226 hotels approved by

Ministry of Tourism, Government of India, with a room capacity of 73752.

Table 1.6

Hotels and No of Room in India Approved by Ministry of Tourism from 2001-2013

Year

Heritage Star Hotels Time Share Bed &

Breakfast Restaurant Apartments

Stand Alone

Catering Units Total

H R H R H R H R H R H R H R H R

2001 0 0 1 138 0 0 0 0 0 0 0 0 0 0 1 138

2002 1 24 1 138 0 0 0 0 0 0 0 0 0 0 2 162

2003 1 24 9 615 0 0 0 0 0 0 0 0 0 0 10 639

2004 1 24 13 784 0 0 0 0 0 0 0 0 0 0 14 808

2005 2 24 18 1163 0 0 0 0 0 0 0 0 0 0 20 1187

2006 4 36 39 3953 0 0 0 0 0 0 0 0 0 0 43 3989

2007 9 189 184 11050 1 62 1 3 10 304 0 0 0 0 205 11608

2008 22 538 439 22,079 1 62 3 10 17 814 1 53 0 0 483 23556

2009 34 878 724 33,974 2 93 2 7 24 1231 1 53 0 0 787 36236

2010 50 1334 1040 56,577 2 93 103 479 25 1231 2 178 0 0 1222 59892

2011 55 1550 1218 64,959 2 93 121 551 25 1231 3 222 4 0 1428 68606

2012 58 1601 1238 68,273 1 31 21 79 15 927 4 302 7 0 1344 71213

2013 49 1394 1150 71,636 1 31 7 25 8 417 3 249 8 0 1226 73752

Source: Ministry of Tourism, Government of India H: Hotels R: Room Capacity A closer analysis of Table 1.6 also indicates towards approval of new category of

accommodation i.e. Apartment hotels in 2008 by Ministry of Tourism, Government of

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India that has shown a steady growth till present. Because of commonwealth games in the

year 2011 there was a tremendous increase in the Bed & Breakfast units but the number

has been declined immediately after the common wealth games. The year 2011 also saw

the onset of standalone catering units too which have almost doubled in number in these

two years.

Figure 1.2

No. of Approved Hotels by Ministry of Tourism, Government of India (From 2000 to 2013)

Figure 1.3

No. of Approved Rooms, by Ministry of Tourism, Government of India From 2000 to 2013

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The crux of the present study centers around catering establishment. Therefore it

becomes imperative to first develop an understanding about the meaning and concept of

catering. The term catering and the related information are explained in the next section.

1.3 Understanding Catering

Catering is a part of hospitality sector, this section deals with the year wise definitions of

catering in detail. Bode (2003) defined “Catering is the act of providing food and

services” He further categorized the catering into two parts. Off premises catering and On

premises catering, He defined on premises catering as catering for an event held on the

physical premises of the facility that is organizing the function. Jafari (2003) observes

that Catering is the provision of food, supplies and services for specific functions on

particular dates and at given location. The author further elaborated that catering services

include three types: banquet hall, off premise and mobile unit. He also stated that catering

differ from other segment of food service sector by virtue of the diverse roles often

assumed by the caterer. Clients often expect the caterer to provide more than the food

service. Partial lists of additional supplies and services which may be requested include

entertainment, equipment, transportation of guests and valet parking at the site. Dhawan

(2010) explained catering as meeting the basic need of food, drink and accommodation.

Shiring et al (2000), Bode (2003) and Shock et al (2011) divided the catering into two

main categories i.e., On premise catering and Off premise catering. On premise catering

indicates that the function is held exclusively within the caterer’s own facility. All the

required functions and services that the caterer executes are done exclusively at their own

facility. Off premise catering differ from on premise catering where by the function takes

place in a remote location, such as client’s home, a park, an art gallery or even a parking

lot, and the staff, food and décor must be transported to that location. Off premise

catering often involves producing food at a central kitchen, with delivery to and service

provided at the clients location. Eastham et al (2008) explained catering as all

undertakings concerned with the provision of prepared food and drink ready for

consumption away from home. It also includes establishments that provide a take away

and/or delivery service where the food and/or drink are prepared within the establishment

but consumed elsewhere.

Shiring et al (2000) correlated the catering with food service industry and they divide the

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food service industry into three segments: Military Segments, Commercial Segments, and

Non Commercial Segments.

Sethi and Malhan (2006) explained that the changes in education, transportation,

industrialization, health care, welfare, national and international trade have given an

emergence of various types of catering establishments, They explained that the

development of highways and improvements in the modes of transportation have given

rise to a variety of roadside catering and living places. These ranges from the vending on

wheels, dhabas, coffee shops, cafeterias, motel to hotel which provide food and shelter to

tired and hungry travelers. They further stated that the population explosion and the

increase in the number and types of vehicles on roads are gradually making roadside

establishments more and more sophisticated in their products, services and the

environment they provide to the customers.

According to Sethi and Malhan (2006) industrialization required feeding the labor force

in the factories, and which led to the development of industrial canteen. Government

planning for literacy has given rise to establishments where children and adults spend

long hours. This generated a need for providing mid day meals or snacks in schools and

colleges. In the sphere of education more and more students are living in hostels or youth

clubs which cater to large group. This has given rise to contract catering and a spurt of

canteens and fast food outlets in the vicinity of educational Institutions. Further, increase

in health, medical care and welfare schemes gave rise to more and more hospitals, clinics,

old age homes and welfare centers, in which it become necessary to operate catering

facilities for patient, staff and visitors. National and International cooperation in the field

of trade, commerce, and sport have led to a spurt in conference catering.

George and Chatterjee (2008) categorized the catering establishments (Table 1.7) into

Commercial catering establishments, Welfare catering establishments, Transport catering

establishments and other catering establishment. Commercial catering establishments are

run solely for making profit by providing a service; they include hotels, restaurants, fast

food and take away outlets, retail stores, motels etc. Welfare catering establishments

provide service without necessarily making a profit. Establishments those are in

institutions, hospitals, industries and canteens are the examples of welfare catering

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Table 1.7

Food Service Catering Industry

FOOD SERVICE CATERING INDUSTRY

Military

Segments

Commercial

Segments

Non Commercial Segments

Military Functions Diplomatic Functions

Independent Caterers Hotel/Motel Caterers Home-Based Caterers Restaurant/Catering Firms Private Clubs

Business/Industry/Accounts College & University Catering Health Care Facilities Recreational Food Service (amusement & theme parks, conference & convention facilities, museums, libraries, stadiums and sports arenas) School Catering Special Organizations (fraternal and social clubs, associations) Transportation food service catering (In-flight Catering)

(Source: Shiring et al, 2000, p-3)

establishments. Transport Catering units cater to semi-captive customers and aim at

profit-making. Air catering, Railway catering, Sea catering, Mobile Catering are the

examples of Transport catering. In Other Catering Establishments include the catering for

defense services, for hospitals, for Institutions etc. Dhawan (2010) divided the various

catering establishments into 10 categories (Table 1.8).

Table 1.8

Types of Catering Establishments

TYPES OF CATERING ESTABLISHMENTS

1. Hotel A place where customer is provided boarding & lodging

2. Motel A hotel situated on a highway along with services of garage and station.

3. Boatel A houseboat hotel

4. Floatel A luxury hotel on a luxury liner

5. Lotel A hotel with helipad facility

6. Rotel A hotel on wheels 7. Kiosk A stall on roadside for snacks, open on all sides 8. Soda

Fountains A outlet selling aerated drinks

9. Milk Bar A restaurant dispensing milk and milk products 10. Restaurants A place where one can eat, pay for the same and go.

(Source: Dhawan, 2011, p- 39)

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Shock et al (2011) classified the catering into Social Catering and Business Catering.

Social catering includes such events as wedding, high school reunions, birthday parties,

and charity events. Though Business catering include such events as association

convention and meetings, civic meetings, corporate sales or stockholders meetings,

recognition banquets, or hospitality suites.

Andrews (2011) divided the catering into two parts (Table 1.9) i.e., Commercial Catering

and Institutional Catering. He also stated that there are some Commercial Catering units

and Institutional catering units which serve the public while certain commercial and

Institutional catering units serve the restricted members.

1.4 The National Highway Network of India

The National Highway constitutes the major area of interest for the present study. The

Highways not only provides a smooth road for the travelers but in recent times have

emerged as the new face of the market. A number of commercial establishments have

grew up on the sides of the national highway that cater to the day- to- day needs of the

commuters and the consumers. In nutshell roads are the key to the development of an

economy. A good road network constitutes the basic infrastructure that accelerates the

development process through connectivity and opening up of the backward regions to

trade and investment. Roads also play a key role in inter-modal transport development

establishing links with airports, railway stations and ports. Road Transport is vital to the

economic development and social integration of the country. Easy accessibility,

flexibility of operations, door-to-door service and reliability have earned road transport

an increasingly higher share of both passenger and freight traffic vis-à-vis other transport

modes. Road transport has emerged as the dominant segment in India’s transportation

sector with a share of 4.7% in India’s GDP in comparison to railways that has a mere 1%

share in 2009-10. In addition, they have an important role in promoting national

integration, which is particularly important in a large country like India. Since

independence, there has been a tremendous increase in the volume of road traffic, both

passenger and freight. As per National Highway Authority of India (NHAI) currently the

Indian Road network is classified into five parts the Expressways, National Highways,

State Highways, District Roads, Rural and Other roads.

17

Table 1.9

Commercial and Institutional Catering

Serves the Public Serves Restricted Members

Commercial Catering Institutional Catering Commercial Catering Institutional Catering

Independent Restaurant

Snack bars

Cafes

Take-away outlets

Public bars

Specialty Food Parlor (Ice-creams, Sushi Bars, Doughunts, Cinnabon, Fruite Juices etc.)

Fish & Chips outlets

Sandwich bars

Eateries at theme parks

Kiosks

Hot Dog stalls

Mobile food Vans

Inn and taverns

Food Courts

Drive-in-Restaurants

Outside catering

Zoos

Fast Food Restaurants

Public canteens

Govt. School catering

Govt. Office canteens

Govt. Hospital catering

Airport terminal catering

Railway station canteens

Fairground catering

Camping and caravan sites

Tourist sites

Public libraries

Terminal Cafeterias

(railway, bus, airport)

Hotels with restaurants

Night clubs

Private bars

Private social clubs

Private sports clubs (Golf, Tennis etc.)

Private Nursing Homes

Banquet Halls

Corporate houses

Training Academies

Dining halls

Bed & Breakfast facilities

Chalets

Theatre Catering

School Tuck Shops

College cafeterias

Museums

Flight Catering

Railway dining Cars

Private Hospital Catering

School Catering

Prison Catering

Defense messes

College/University catering

Sports Training Academies

Industrial canteens

Cruise lines

Convention Halls

Outside catering for weddings

Holiday Camps

Youth hostels

Pension Houses

Sports clubs

(Source: Andrews, 2011, p-9)

18

The present status of Indian Road network is shown in Table 1.10. The National

Highways encompass a road length of only about 79,243 kms. (NHAI), which is only

1.7% of the total road network but carries about 40% of the total road traffic.About

10,000 km have been widened to four lanes with two lanes in each direction and some to

six or eight lanes. The growth of highways network can be attributed to National

Highway Authority of India (NHAI) and National Highway Development Project

(NHDP) who undertook the commendable task of connecting the four corners of the

country that too within a span of a short period

Table 1.10

Present Status of India Road Network

Types of Roads Length (in Kms)

Expressways 200

National Highways 79,243

State Highways 1,31,899

Major District Roads 4,67,763

Rural and Other Roads 26,50,000

Total 33 Lakhs Kms

(Source: NHAI)

The Golden Quadrilateral (GQ; 5,846 km) connected the four major cities

of Delhi, Mumbai, Chennai and Kolkata. This project connecting four metro cities, would

be 5,846 km). Total cost of the project is Rs.300 billion (US$6.8 billion). The North-

South and East-West Corridors are comprised of national highways connecting four

extreme points of the country. The North-South and the East-West Corridor (NS-EW;

7,300 km) connecting Srinagar in the north to Kanyakumari on the south, including spur

from Salem to Kanyakumari (Via Coimbatore and Kochi) and Silchar in the east

to Porbandar in the west. Total length of the network is 7,300 km The government

approved NHDP-III to upgrade 12,109 km of national highways on a Build, Operate

and Transfer (BOT) basis, which takes into account high-density traffic, connectivity of

state capitals via NHDP Phase I and II, and connectivity to centers of economic

importance. Contracts have been awarded for a 2,075 km.

19

Likewise, the government is going ahead with number of projects to improve the road

network and infrastructure in the country.

1.5 The Study Area

The National Highway No-1 (NH-1) is witness to the rise of highways as a new market

place. A number of business units have occupied a sizeable space in there ‘highway’

markets. The food and catering establishments too are the part of this trend specially the

NH-1 that connects New Delhi to Amritsar passing through Haryana from Singhu

(Kundli) border (Delhi) to Sambhu border (Punjab) covering a distance of 180 km. It

passes through five districts of the Haryana state i.e. Sonipat, Panipat, Karnal,

Kurukshetra and Ambala. This national highway is a part of Grand Trunk Road (G. T.

Road) whose foundation was laid by the Aryans in the remote past and further

developments were made by the Mauryan kings in 4th century B C. For centuries together

this route remained neglected until it was again revived by Sher Shah Suri some time

near, 1540. It was the government in the Warren Hastings in the modern times which

started the development of this magnificent early work. National Highway Authority of

India divided it into two parts, north of Delhi, called NH-1 and south of it, called NH-2.

This is one of the longest and oldest highways of India (NHAI, 2012). As per NHAI the

number of vehicles has been growing at an average pace of 10.16 per cent per annum

over the last five year therefore there was an acute need to widen the NH-1. The work to

widen the NH-1 was a part of NHDP and was started in the year 1999. Most of the work

has been completed by NHAI except few patches on Panipat Jalandhar patch. The same

is highlighted in Table 1.11.

1.6 Growth of Catering Establishments on NH-1

The above discussion clearly shows that NH-1 (Figure 1.4) is developing, as due to the

increasing traffic and part of NHDP projects that has widened NH-1 from four lane to six

lane. One of the objectives of the research is to study the growth patterns of the catering

establishments located on NH-1. To full fill the objective first of all a list of catering

establishments was obtained from NHAI Ambala office and Jalandhar office. It

comprised of a list of 380 catering undertakings in all, out of which 273 are dhabas. The

dhabas are kept outside from the purview of the present study due to comparatively

temporary and uncertain nature of their establishment. More over the dhabas are beyond

20

the legal framework of the catering establishments. Thus the dhabas are not included in

the present study. The remaining 107 catering establishments on NH-1, elaborated in

table no 1.12 forms the part and area of concern for the present study.

Table 1.11

Six/Eight Laning of NH-1

Segment Kms NHDP Phase Category

Year of Approval

Current Status

Six Laning of Kamaspur to

Haryana/Delhi Border

15 NHDP Phase I Dec-1999 Completed

Eight Laning of

Haryana/Delhi Border to

Mubaraka Chowk

12.9 NHDP Phase I Aug-2001 Completed

Eight Laning of Mubaraka

Chowk to Mall Road(Delhi)

8.5 NHDP Phase I Nov. 2001 Completed

Jalandha-Amritsar 49 NHDP Phase III May-2005 Completed

Panipat Elevated Highway

(Six lane)

10 NHDP Phase II Jun-2005 Completed

Panipat to Panchi Gujran 15 NHDP Phase II Apr-2006 Completed

Amritsar-Wagha Border 35.93 NHDP Phase III Aug-2007 Completed

Panipat Jalandhar (Six lane) 291 NHDP Phase V Feb-2008 Under

Implementation

Panchi Gujran to

Kamaspur(Sonepat)

21.7 NHDP Phase I Aug-2008 Completed

(Source: NHAI)

In the year 1976 Haryana Tourism came up with more tourism complex on NH-1 by the

name of skylark in Panipat. Punjab tourism opened it two complexes named Bougainville

in Sirhind in the year 1979 and Magnolia in Kartarpur in the year 1981(Table 1.12). It is

also discernible from table 1.13 that only ten catering establishments came up in the two

decades (1970-1990). Majority of them were government initiative only. Thereafter,

prolific growth is witnessed in the establishment of catering undertakings on NH-1 by the

private concerns owing to the launching of LPG (Liberalization, Privatization &

21

globalization) model by Dr. Manmohan Singh. The maximum growth of catering

establishments on NH-1 can be seen during 2006-2010. From 2011-2013, in a span of 3

years, 25 catering units came into existence and their number is multiplying at swift rate.

Table 1.12 also points towards the mushrooming of the MNC catering units on NH-1

from year 2002 onwards with Mcdonalds making its presence at two places; Doraha (near

Ludhiana) and in Jalandhar. KFC, Café Coffee Day, Subway, Savoy Green food court

are amongst the trend setters.

Figure 1.4

National Highway No-1

Source: www.mapsofindia.com

22

Table 1.12

List of Catering Establishments on NH-1

Sr. No Name of Catering Establishment Type Year of Establishment

1 Blue Jay, Samalkha Govt. 1972

2 Parakeet, Pipli Govt. 1972

3 Oasis, Karnal Govt. 1973

4 Mayur Restaurant & Beer Bar Private 1975

5 Skylark, Panipat Govt. 1976

6 Bougainville,Sirhind Govt. 1979

7 Magnolia, Kartarpur Govt. 1981

8 Prince Hotel Private 1981

9 Rock View Restaurant & Beer Bar, Khanna Private 1983

10 Kingfisher, Ambala Govt. 1986

11 Hotel Grewal, Doraha Private 1991

12 Hotel Mark Inn Private 1993

13 Parhar Hotel Private 1994

14 Hotel Ranvir Classic, Jalandhar Private 1994

15 Hotel Kuber Resort Private 1996

16 Lilly Resort Private 1997

17 Lilly Resort, Jalandhar Private 1997

18 Hotel Trimohan, Ludhiana Private 1998

19 Hotel Wood City Restaurant & Beer Bar, Kartarpur

Private 1998

20 Magic Land Restaurant, Beas Private 1998

21 Hey Day Hotel/Restaurant, Near Beas Private 1998

22 Sheesh Mehal Restaurant Private 1998

23 Kanak Garden Private 1999

24 Aman Hotel & Resorts Private 1999

25 Sahil Motel, Sirhind Private 1999

26 Satluj Hotel, Ludhiana Private 1999

27 Gautam Motels & Resort Private 1999

28 Hollywood Lounge Restaurant & Hotel Private 1999

29 Ethnic India Rai, Sonepat Govt. 2000

30 Hotel New World Private 2000

31 Hotel Kathuria Private 2001

32 Hotel Royal Paradise Private 2001

23

33 Mcdonald, Doraha MNC 2002

34 Mc Donald, Jalandhar MNC 2002

35 Haveli Hotel Private 2002

36 Haveli Hotel, Jalandhar Private 2002

37 Hotel Poonam, Phagwara Private 2003

38 Sheela Holiday Resort Private 2003

39 Savoy Green Food Court MNC 2004

40 Zamindara Hotel & Restaurant, Ludhiana Private 2004

41 Hotel Malhotra Regency, Ludhiana Private 2004

42 Four Season Restaurant & Resort, Near Amritsar

Private 2004

43 All Season Hotel, Near Amritsar Private 2004

44 Sohal Hotel & Resort, Amritsar Private 2004

45 Haveli, Karnal Private 2004

46 Richi Rich Hotel Private 2005

47 Mirchi Hotel Private 2006

48 Kachnar Restaurant Private 2006

49 Hotel GC Regency Ambala Private 2006

50 Greenland Hotel & Restaurant, Khanna Private 2006

51 Hotel J S Hyer, Phillaur Private 2006

52 Sagar Ratana, Phagwara Private 2006

53 Motel Highway Inn, Jalandhar Private 2006

54 Mc Donald MNC 2007

55 Haveli Restaurant Private 2007

56 Eagle Motel Rajpura Private 2007

57 My Village Resorts, Rajpura Private 2007

58 Sunny Plaza Restaurant & Hotel, Mandi Gobindgarh

Private 2007

59 Mc Dnalds, Jalandhar MNC 2008

60 Subway, Jalandhar MNC 2008

61 Cabanna Hotel Private 2008

62 Hotel Vasu International, Phagwara Private 2008

63 Mayuri Restaurant, Jalandhar Private 2008

64 Jamba Hotel & Restaurant, Beas Private 2008

65 KFC Food Plaza, Jalandhar MNC 2009

66 Subway, Near Amritsar MNC 2009

67 Thousand Spices Hotel, Khanna Private 2009

24

68 Chevron Klassik Hotel Private 2009

69 Hotel Times Squae, Mandi Gobindgarh Private 2009

70 Hotel Vanjali, Ludhiana Private 2009

71 Subway Restaurant, Near Amritsar Private 2009

72 KFC Family Restaurant, Khanna MNC 2010

73 Subway, Doraha MNC 2010

74 Café Coffee Day, Doraha MNC 2010

75 Pind Baluchi Restaurant & Resort Private 2010

76 Singh & Swing Resorts Food Plaza/24 Carot Food Plaza

Private 2010

77 Jashan Residency Private 2010

78 Haveli Private 2010

79 Hotel RC Plaza & Restaurant, Goraya Private 2010

80 Majestic Grand Hotel, Jalandhar Private 2010

81 J9 Food Court, Jalandahr Private 2010

82 Olive Garden & Beer Bar, Near Amritsar Private 2010

83 KFC Family Restaurant MNC 2011

84 Café Coffee Day, Near Amritsar MNC 2011

85 Sagar Ratna Restaurant Pvt. Ltd. & Hotel Royal Paradise

Private 2011

86 Haveli Hotel Ambala Private 2011

87 Armaan Hotel Near Ambala Private 2011

88 Grand Pearl Hotel & Restaurant, Doraha Private 2011

89 Hotel J.P Classic, Mandi Gobindgarh Private 2011

90 Canadian Hotel, Phagwara Private 2011

91 Burger Girl Family Restaurant, Jalandhar Private 2011

92 Café Coffee Day, Khanna MNC 2012

93 Jassons Sheesh Mahal Private 2012

94 Radhe Radeh Resturant Private 2012

95 Hot Sizzlers restaurant & Resorts Private 2012

96 Tadaka Hotel Private 2012

97 Amarpali Hotel Ambala Private 2012

98 Cheema Haveli, Sirhind Private 2012

99 Radhey Radhey Restaurant, Jalandhar Private 2012

100 Tej Food Point, Near Amritsar Private 2012

101 Jurasik Park & Resort Private 2012

102 Kohinoor Resort Private 2012

25

103 Mc Donald, Khanna MNC 2013

104 Subway, Khanna MNC 2013

105 Chowki Dhani Resort Private 2013

106 Hot Millions Private 2013

107 Sagar Ratna Restaurant, Khanna Private 2013

(Source: NHAI)

The above data is also explained by Table 1.13 and also depicted by Figure 1.5

Table 1.13

Growth Patterns of Catering Establishment on NH-1

Year Govt. Private MNC Total

1970-1975 3 1 0 4

1976-1980 2 0 0 2

1981-1985 1 2 0 3

1986-1990 1 0 0 1

1991-1995 0 4 0 4

1996-2000 1 15 0 16

2001-2005 0 13 3 16

2006-2010 0 28 8 36

2011-2013 0 20 5 25

Total 8 83 16 107

Figure 1.5

Growth Patterns of Catering Establishments on NH-1

26

From the above discussion it is clearly visible that there is unprecedented growth in the

Catering Establishment on NH-1 in the last decade. From 2006-2013, 61 catering

establishments (Table 1.9) on NH-1 have emerged out that indicates increasing number

of travelers traveling NH-1. This phenomenal growth of catering establishments on NH-

1 has intensified the competition amongst them. To survive this inflated competition, it

has become quintessential for the catering establishments to provide quality service

fulfilling the expectations of the guests. It has necessitated the need of the present study

“Guest Perception on Services and Facilities in Catering Establishments on NH-1 (From

Delhi to Amritsar)”. The present study will focus on factors that influence the guest’s

expectations as well as perceptions towards the service quality offered by the catering

establishments on NH-1. The study further reveals the service quality gaps amongst the

government, private and Multi National Corporations (MNC) catering establishment at

NH-1 and then provides the remedial suggestions to the catering establishments on NH-1

to ameliorate their service quality upto guest’s utmost satisfaction as well as to stay in the

competition.

27

REFRENCES

Andrews,S.,(2011), Textbook of Food and Beverage management, 5th Edition, Tata

Mc Graw-Hill

Bode, S., (2003), Successful Catering Managing the Catering Operation for Maximum

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Dhawa , V.,(2010), Food and Beverage Service, Fran k Bros. & Co. (Publishers) Ltd.

Eastham,J,F., Sharples, L. and Ball,S,D. (2008), Food Supply Chain Management

Issues or the Hospitality Retail Sector Reed Educational and Professional

Publishing Ltd.

George,B., and Chatterjee, S., (2008), Food & Beverage Service and Management

Jaico Publishing House.

Jafari, J.,(2003), Encyclopedia of Tourism, Routledge, New York

Shiring, S.B.,William.R.,Jardine, B., Mills. J.J., (2001), Introduction to Catering:

Ingredients for Success, Delmar

Sethi.M., Malhan.S., (2006), Catering Management: An Integrated Approach, New

Age International (P) Ltd Publishers

Shock, P.J., Stefanelli, J.M., (2011), On-Premise Catering: Hotels, Convention &

Conference Centers, and clubs, John Wiley & Sons, Inc.

Tiwari, J.R.,(2009), Hotel Front Office Operations and Management, Oxford

University Press

Weblinks

http://indiabudget.nic.in/budget2013-2014/es2012-13/echap-10.pdf

http://ipec.gspia.pitt.edu/Portals/7/Papers/Aprita%20Mukherjee.pdf

http://www.nhai.org

www.mapsofindia.com