An unease has been blowing through the ethnic restaurant industry as restaurateurs worry about how much the present Credit Crunch will affect them and for how long. Latest news from the retail industry suggests that this unease is very much justified which begs the question “what do we do now?”.

According to the latest reports, sales of spices and Asian ready-meals are soaring as families increasingly turn to exotic cuisines and switch from eat-outs and take-outs to eat-ins.

Supermarkets have seen sales of curry ingredients such as ginger, coriander and chillies more than double, while Indian ready-meal sales are up 50%. Sales of chilli in supermarkets have grown 144% in a year according to Morrisons with curry powder seeeing a 169% growth.
During the past year, its sales of Indian ready-meals have risen 69%, while Sainsbury’s has seen a 50% increase.
This does not mean overall demand is going down, however, for according to analyst TNS UK, tastes.have seen an eight-fold rise in demand for ethnic food since 1994 and has noted a drift away from milder herbs used in British cuisine.
For example, tarragon is down 22%, thyme 16%, basil 5% and dill 1%. However, sales of fresh coriander and chillies are up 8%, while fresh ginger has spiked by 20%. Lime and lemongrass, which are used heavily in Thai food, are also up sharply.
Bart Spices, a Bristol herb and spice importer, also reports that demand for Asian food products is rising at delicatessens with sales of pickles and chutneys particularly strong this year.

The price advantage of a supermarket ready-meal curry over the take-out version is significant often being a third of the price of the restaurant equivalent.

This all suggests an increasingly bad time ahead for Indian and Oriental restaurants not only for their dine-in but their dine-out services. Money is scarce so many pundits see a mass swing from dining out to cooking at home fueled by TV programmes such as Gordon Ramsay’s latest show on Channel 4 and Jamie Oliver’s Ministry of Food.

Evidence suggests that whilst there is, indeed, such a movement at the margin, many households have got out of the habit of preparing meals from scratch and are not likely to change even in the face of financial problems. What they will do, however, is turn to chilled meals and supermarket products as the cheapest alternative not involving much personal preparation followed by restaurant take-aways as the slightly more expensive but undoubtedly tastier option.
This is where embattled restaurants must focus a new effort to ensure sales keep as buoyant as possible.

What can restaurants do?

What they must not do is to sacrifice quality, as an increasingly discerning public will soon realise it and vote with their feet accordingly. They also have to ensure their product offers the best value possible and that it is aggressively marketed but beyond this, there is little that can be done.

Where they can take positive steps is in their take-out business to encourage potential customers to continue to enjoy quality restaurant food rather than turning to questionable supermarket alternatives. Restaurants need to ensure their take-out service is slick and of the highest quality and is easy for the public to order.

One company that has already recognised this is CurriesOnline.co.uk, the UKs first online ordering solution dedicated to the Indian restaurant trade. CurriesOnline.co.uk are offering a top class service to Indian restaurants and the public via their very smart website www.curriesonline.co.uk.

Managing Director Shamin Hoque said

We intend the website to be a kind of ‘one stop shop’ for people wanting to order a curry. As well as enabling them to order from the menu of a nearby restaurant, we are also providing sections on nutrition, health and a wealth of information to help with selection and make it more informed. The accent of Curries Online is on quality and to this end we have employed one of the top experts in the country on Asian restaurant cuisine to ensure the information on the site is authoritative and enjoyable.

Internet activity will make a vital difference to the success or failure of restaurants during the difficult economic downswing and free registration with Curries Online is the perfect way for restaurants to take advantage of this vital selling medium.