There are few takers for 'chicken tikka masala', dubbed as Britain's national dish and other spicy flavours as many people affected by job losses and credit crunch are preferring to cook at home or buy readymade meals from the supermarkets.

"People now have less disposable income, not only Asians but also others. Naturally, many Indian restaurants and Indian shops here are suffering," Leicester-based Sudha Vemuri said. "I think twice before offering my child a special treat."

Abdul Miah, owner of an Indian takeaway in Bristol, said, "It's a bad time for us all".

Faced with supermarkets offering cheaper ready meals, Indian restaurants have taken to innovative measures to revive business. These include reducing prices and packages offering 'eat as much as you can' prices.

Restaurants in Leicester's Asian-dominated 'Golden Mile' shopping district have started a 'Support Your County' campaign to encourage people to buy locally grown and cooked food instead of that available in the supermarkets.

Bobby's, one of the oldest Indian restaurants in Leicester, has marketed a new dish called 'Leicester Aloo Curry' that uses potatoes and onions produced locally to offset falling business. Dharmesh Lakhani, member of the family that owns the 32-year-old Bobby's restaurant, said, "We are backing the campaign, and what better way to show support than by doing what we do best and making a curry?"

"We have a lot of passing trade from people shopping in the Golden Mile. When trade in these shops declines, it has a knock-on effect. This campaign will help focus people's minds on local shops," Lakhani said.

"Hopefully, the curry will get people thinking about how good local products, produce and businesses are."

Jaffer Kapasi, director of the Leicestershire Asian Business Association, said, "We need something that can bring the focus for people back to independent shops. We have a wonderful range of local products ¿ not just in food but also in Asian clothing and jewellery."

Besides the economic downturn, the Indian restaurants have also been buffeted by a severe shortage of skilled chefs and new visa rules that prevent owners from recruiting chefs from the Indian sub-continent.