The Business of India’s Night Economy: What Wins After 10 PM?
In June 2024, Chandigarh announced that its registered shops could stay open at night. One year later, just 152 out of 30,000 had taken up the offer, and most were multinational food chains and logistics firms. These kinds of businesses already operate round the clock.
The officials said the scheme was voluntary and that most small and medium traders did not gain enough benefit. There were no rules for staying shut; they compared cost, staff and customers, and decided it was not worth it.
That is the real story of India’s night economy. The doors are opening, but the businesses behind them are still being worked out.
The Real Demand for Late-Night Shopping in India
Online orders after 10 PM are growing: Simpl, a payments firm, reported that payment volumes for orders placed between 10 PM and 4 AM increased by 60% in the last year. Plus, the number of transactions grew by 30%. That means each late order got bigger.
Late-night quick commerce report. One of the leading e-commerce sites, Swiggy Instamart, shared a report stating masala chips were the top late-night order in nine of Instamart’s ten biggest cities. The report further revealed that most people add things to carts between 7 AM and 11 AM and again from 4 PM to 7 PM, so the night demand is real.
How Much Does It Cost to Run a 24-Hour Store in India?
The most useful numbers come from New Shop, a franchise chain that stays open 24 hours. Generally, a store costs Rs 15 lakh to Rs 25 lakh to set up and earns about Rs 15 lakh a month, with Rs 6 lakh of that coming from its app and delivery platforms. After costs, the franchisee keeps about Rs 2.28 lakh, or 15% of total earnings.
Although these are the company’s own figures, and they do not separate night sales from day sales, so they cannot prove that late hours pay. What they do show is how a business built for the night works: it keeps a small range, sells through apps and asks the franchisee to carry the setup cost.
There are hidden costs in night shifts. First, companies need to pay extra wages, ensure employee safety and get them home, especially women employees.
Businesses Going Round the Clock First
Big retail chains like Amazon Transportation Service, Aditya Birla Fashion and Retail, Nykaa Fashion, Bikanerwala and H&M initially started serving round the clock in Delhi. They already have staff pools, security and well-established systems to manage businesses at night. But most small owners do not have that.
Even organised players like Godfrey Phillips stopped operating all the popular late-night convenience store 24Seven in 2024. Its retail division earned Rs 403 crore in FY24 but had a negative net worth. New Shop has planned to take over the stores and stated that the stores were in profit. The closure was a planned rebranding; whatever the reason is, round-the-clock retail is tough to scale.
Taking Business to India’s Night Economy
As of now, the business of India’s night economy is not for the shop that opens first. Companies with strong planning will win. The night is an operations plan, and founders should go small, add one or two late hours. Sort out staff, safety and transport now; make sure they will be ready when you get the market. If you treat it as a quick way to sell more, ca
Frequently Asked Questions
Can a small shop test night demand without opening its doors?
Yes. Much late spending happens online, as the Simpl data on orders between 10 PM and 4 AM shows. A shop listed on delivery apps can look at when its orders arrive and extend delivery hours before it extends opening hours. Businesses can try this, but there is no guarantee of success.
What is the biggest risk of operation in India’s night economy?
Usually, staff and safety are the biggest concerns for businesses. Bengaluru restaurateurs have said an extra shift needs extra staff and it is tough to find skilled workforce. Mumbai’s restaurant association said in 2020 that it requires a lot of time and energy to increase number of employees and ensure their security. Lack of footfall on a regular basis is another concern.
Does night business require extra cost?
Yes, businesses have to give night shift allowance to employees, which is 10-15% of basic salary. Plus, they have to spend more on employee safety and security.
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