Behind the scenes: How food delivery is carving a new path for food owners

The consumption pattern in India is changing in last few years and the country is looking for a consumption-driven boost since ages. But the much-awaited budget of the Narendra Modi led government after its second stint brought disappointment for the restaurant as well as FMCG sector. Though, the industry expected subsidy for F&B industry where the government should have a look at the restaurants business where current GST rate of five percent does not allow restaurants to claim input tax credit (ITC) against taxes they pay on expenses such as rent and raw materials.

The sector also demanded a policy to reduce food wastage where the industry should move into adoption of frozen food to reduce food wastage and to preserve nutrition. Frozen food ensures lower food wastage as well as preserves nutrition with modern IQF technology. Our government should encourage the restaurant industry to ensure zero food wastage or even a scheme like Swachh Bharat Mission may be rolled out with 'zero food wastage pledge.’

"The Government, in this Budget, has kept "Gaon, Garib and Kisan" at the center of everything. Since we deal with agriculturally produced tea, which is a labor-intensive industry and one of the biggest employment generators in our country, such an approach will go a long way in helping the huge labor force working in the tea plantations based in remote locations across the country. Multiple initiatives have been proposed in this budget to double the farmers' income through various initiatives such as the creation of 10,000 new Farmer Producer organizations to ensure economies of scale for farmers over the next 5 years. Innovative pilots of “Zero Budget Farming” are to be replicated across the country for doubling farmers income and dairying through co-operatives are to be encouraged by creating infrastructure for milk procurement, processing and marketing. Such initiatives, if implemented will lead to the strengthening of the rural economy which in turn will result in the overall growth of the country. The new budget also was focused on encouraging ease of business for startups as the finance minister proposed easing the angel tax for startups. This coupled with a vibrant “Stand Up India” scheme will provide a boost to the start-up ecosystem in the country. Further, start-ups won’t be required to undergo scrutiny from the Income Tax department with a 2% interest subvention for a GST-registered MSME on fresh or incremental loans. There is a proposal also for a dedicated television channel for start-ups. A new payment platform for MSMEs is to be created with a plan to extend pension benefits to retail traders with an annual turnover less than Rs 1.5 crore. Overall it is a non-populist holistic budget keeping '5 Trillion Dollar Economy in next 5 years' in mind,” shared Kausshal Dugar, Founder, Teabox.

“Startups in India have faced the challenge of angel tax over the past year, and government’s announcements of alleviating the stress of IT scrutiny is a welcome step,” pointed Kabir Jeet Singh, Founder & Chief Executive Officer, Burger Singh by adding that India has the potential to become global startup hub, and we still have a long way to go in making this a reality. “The government should also consider easy availability of capital and government grants for the industry, along with an extended tax holiday,” he added.

Chef Ananya Banerjee says, "Under the Goods and Service Tax, the hospitality sector stands to reap the benefits of standardized and uniform tax rates, and easy and better utilization of input tax credit. As the final cost to end user decreases, we can expect the industry to attract more overseas tourists than before".

Commenting on the same, Pankaj Gupta from Taftoon said, “The budget 2019 is a great attempt by the government to bridge the rural-urban divide. Incentivising farmers through minimum support price, investing in farmer related schemes, creating a better distribution network will definitely boost the agrarian industry leading to better & diversified produce.” 

Commenting on the budget Saurabh Mehta, Owner at Mallacca Restaurant, Gurugramsaid, “The Budget is for farmers and rural India, startups and MSME are on central focus of the Budget 2019. He highlighted the key points, thus, there is good scope for farmers producer organisations; measures to allow farmers to benefit from eNAM; focus on zero budget farming - a new concept; ASPIRE, which will be good for food processing industry based on agriculture; Make in India with stress on MSMEs; and focus on availability of safe and adequate food.”  

Analyzing the Budget, Nitish Bansal, Owner at Judge and Jury Café and Bar, Delhi said, as expected, the Budget did not disappoint, rather the budget seemed holistic and aspirational that aimed to deliver economic growth. To being with the rural economy, the Budget announced modernisation schemes and focused on agricultural aggregation through setting up 10,000 new Farmer Producer Organisations. Setting up livelihood business incubators and technology business incubators to develop 75,000 agri-entrepreneurs is also a move in the right direction."

Union Finance Minister Nirmala Sitharaman, in her maiden budget on Friday, July 5, 2019, said the government will increase its focus on agriculture infrastructure will be the biggest move. "Zero budget farming will help double the farming income in days to come. This is also an attempt to make small-scale farming a viable vocation. Also, she stated about Jal Shakti, which I believe is the prudent step towards development and will surely manage water crisis and bring comprehensive development," said Vaibhav Arora, the owner at Pub Ji Café, Delhi.

As the Indian consumer story is growing, investors are seeing a huge interests in the sector in the last one and two years. There are myriad ways operators are funding expansion and development, from asking patrons to participate in funding, to finding the right private equity partner. Here are top criteria that an investor looks into before putting their money into the business:

Longetivity of the Concept: To start with what is the mobility of the concept and then to see the longetivity, scalability because most funds exit and being on the funding side you have to plan your exit at the time of investment. “You have to also see that what kind of people you are associating with, how best they know the market, how are they associating with it, how are they accepting changing trends and people’s habit. You need to change every day as food business is an everyday business,” shares Sharad Sachdeva, Director of Operations, L Capital. Restaurant business has to be relevant all the times, innovating and doing things as these are some of the ingredients that is important for an investor.

Is the Concept ready to Scale: “We actually invest in a company that is at a very young stage. For us there are two very important things that we look at…first, is this company going to get funded at the next stage. The second thing is the amount of money company is asking for and is it sufficient to run their businesses for 18-24 months,” points Nandini Mansinghka, CEO & MD, Mumbai Angels Network. The biggest challenge today happens at the food and consumer space and this is happening more if the founder is not from the space where they are not getting an estimate of the money they want to raise and how long is it going to last them till the next round of the funding happens.

It’s all about a Good Team: “The primary bet we do at Gaja when investing a brand is we bet at the team. We are very clear about the team, the concept and the ability to scale,” adds Manoj Balan, Director of Finance, Gaja Capital. The restaurant business is all about scale and growth and at any point of time when an investor decided to exit and it becomes exciting for another investor there has to be growth and a path that has to be made. So, for any investor the initial filters are what the team demonstrated, how capable is the team etc.

How Disruptive is the Concept: Business today is a lot more than dealing with today’s time and issue. Three years ago investors would have put in their money with somebody who has passion but today we already have a Zomato, Swiggy and if somebody comes to them and say they want to do a food-tech or food delivery they will be highly skeptical to look at it. Similarly, if you look at cloud kitchens there are already invested company in the market. So, for them the team has to come with such an experience or a model which can disrupt the business.

The FMCG sector, the larger segment which includes CPG sector, has a very strong potential in India. The segment’s market value is estimated at about 50 Billion USD and growing strongly at about 7-10%. The country, with its young population, growing income levels and increased spending, presents a unique opportunity for CPG start-ups. Much like the Health & Wellness that has seen many successful start-ups without a single-brand consolidation, the rest of the CPG space also offers chances for businesses to flourish.

Munching on the sector, Haldiram’s one of the fastest growing brand in India and internationally has invested in integrated incubator Venture Catalysts. With this partnership, Venture Catalysts aims to boost its overall understanding and facilitation of start-ups in this sector. The Consumer Packaged Goods sector, comprising goods consumed every day by the average consumer, has shown significant growth potential in the Indian market, and the current association aims to utilize this opportunity.

Venture Catalysts aims to leverage Haldiram’s expertise to intricately evaluate its investments in the CPG sector and achieve – a much stronger foothold in evaluation, industry relevant mentoring, identifying market opportunities, and developing better consumer understanding in the CPG space.

Haldiram’s began its journey in 1937, when starting a business was not a ‘trend’ but an extremely difficult, highly uncertain step. Today, it has become one of India’s most recognized and loved brand whose success is a benchmark for other businesses. The core responsibility of Venture Catalysts continues to be the development of start-up eco-system in India, which will be further empowered by Haldiram’s experience of building strong brands.

While Haldiram’s investment amount in VCats is confidential, but the funds have already been strategically allocated to strengthen the team, processes and presence of VCats to ensure the creation of an ecosystem built to suit the needs of the CPG industry.

“The collaborative model is highly customized and will vary from start-up to start-up depending on what the requirement is for all the teams involved. There can be various companies wherein Haldiram’s could even be interested in taking a lead investment in the start-up and hence a far deeper engagement and association with the founders to guide them through the journey as well, resulting in a win-win situation for all the stakeholders involved,” shared the statement.

“Over a course of more than eight decades with over 400 products, Haldiram’s has established its position as a leader, risk-taker and quality seeker in the industry. We have always strived to focus on identifying market opportunities and make the best use of them through product diversification and listening to the consumer intently. We want to share the knowledge acquired over the years and contribute to the burgeoning start-up ecosystem in the country,” shared one of the spokesperson at Haldiram’s.

Commenting on the association, Anuj Golecha, Co-Founder, Venture Catalysts said, “The association with Haldiram’s gives start-ups in our CPG portfolio an immense boost. The success and reputation of the brand in the sector is known to everyone and its business principles and product quality serve as a benchmark for potential entrepreneurs in the sector.”

VCats is already one of the largest early stage Incubators across Asia and is now planning to step this up with a stronger global foot print, having recently entered the UK market as well. Post this collaboration, it plans to invest in 10-15 relevant CPG start-ups in the next 12-24 months and build strong start-up stories such as men’s grooming brand Beardo, female hygiene start-up PeeSafe and India’s first herbal energy shot drink FYRE.

“The alliance with Haldiram’s sets a benchmark for other enterprises to enter into active collaborations that look to empower the start-up ecosystem. The Haldiram’s growth story and the way in which they have built an empire from the ground-up, and this is the ideal example that we want to set for the enterprises that are a part of the VCats set-up right now,” added Dr. Apoorv Ranjan Sharma, Founder, Venture Catalysts.

Can you give something to someone which they already have? Very rarely. And if you can, will it be appreciated? Rarer. That’s what smoothies are about. There is no magic formula, there is no secret ingredient and there is no master distiller. It's all natural. And it’s available all around us. It’s just that most people care to invest in other forms of sweetened and aerated drinks. But ease of availability is an issue as no one, these days, has the time to buy the ingredients and make something healthy. Not ‘no one’, but surely ‘most people’. So that’s why the world needs more smoothie bars. There is enough coffee flying around anyway. So what do you need to start one? Here is some guidance on how to set up a smoothie bar.

Supply

The most difficult thing about smoothies is getting the raw material at the right time and fresh. We are not dealing with syrups or beans or anything which can be stored for a long time. We are dealing with ingredients which can’t last over a week. Understanding and securing the supply and logistics is the primary and most important thing to be fixed. With seasons changing, the prices and the quality of fruits fluctuating, we will need to be on top of our game to make it work right. At the end of the day, if a customer is choosing to have your smoothie over an aerated drink or a syrup based milkshake, we better give him the best we can.

Kitchen 

Now that you have the ingredients, what do you do with them? Blending is an art, not all fruits blend seamlessly. We will need to understand their body types and keep them in their place. All of these can be done and tested before we actually start the smoothie bar, but we need to have an able beast to take care of the blending. Your blender is the master and never compromise on that. It’s like the engine of a car, no matter how it looks, it matters how it runs. Vitamix ‘quite one’ is a good choice, and Blendtec also has some interesting options. Apart from that, the kitchen is pretty simple. Keep it clean and simple, all stainless steel, make sure all placements are planned appropriately. Every second matter. Maybe not to us, but the customer is not so easy.

Ambience 

How you package, what you sell matters. You are fighting against the giants of marketing. If aerated drinks can sell, why not you? A bad product which has awesome marketing can rule the world, but imagine what is a good product having the right marketing can do? It can disrupt the world. That’s what smoothies can do. So make sure we are in the right space. Those who love you and understand you already do, but those who don’t, require something more than just the product. And if coffee can romanticize itself, why not smoothies, they are more colourful and have more texture, in short, more character. So let the space speak for the product and for being naturally high. Space, where the customers come, should not feel like a café it needs to feel like home.

Now talking about technical requirements, the electrical, the plumbing and other mechanical aspects take care of itself. We are not building a full-fledged kitchen. You really don’t need an architect or a professional, all you need is some time to study the way to build it up and some consultancy at the max. It would not take you more than ten days to figure out everything you need to if you are really at it. 

Other Aspects

Make sure you have all the licenses. The formalities change from state to state but the basic requirements remain the same. Stay on the right side of the law, it always helps.

Again remember that you are giving something to the customers that they can get themselves and we have no secret. But these days common sense is not so common, and so are smoothies. It’s a good business to be in.

About the Author

Headquartered in Hyderabad, Drunken Monkey was founded by Samrat Reddy in 2016. It has grown exponentially since its launch and the consistent success and growth of the brand can be gauged from its growth from four smoothie bars in Hyderabad in the first year to 64 outlets in 19 Indian cities in 2018.

Opening a restaurant, like any other venture, involves effort, sacrifices and risks. A person must possess right access to funds, good social and management skills, besides being knowledgeable, creative and passionate about food. This can be overwhelming and might become too much for one person to endure and that’s when considering a partnership can be a good idea. Restaurant partnerships, just like any other partnerships, have its ups and downs. Successful restaurant partnership requires a clear business plan, complete trust in each other and clearly defined roles. The partners must have similar vision and goals. If not, there will be clashes and the restaurant will not survive. 

To ensure the restaurant's success, it is important to do a few things right at the beginning of the partnership: 

Partner with the right person 

Representational pic | Photo Credit: Pixabay.com

It is very important to find the right person with the right skills and expertise for your restaurant business. Even if you are partnering with a close friend or relative ensure that he/she has the desired skill set and resources to be a good business partner. Make an assessment of the strengths and weaknesses, what opportunities exist if you decide to partner and then take the plunge. 

Also Read: Restaurant Startups Must Know These Things

Identify and leverage the strengths and expertise of each partner 

It’s very important for both the partners to utilize each other’s strength to achieve long-term success in business. Partner with people whose talents complement your own. There should be vision compatibility. The restaurant business may benefit if one of the partners has the last word on important issues or major decisions that require a quick solution.

Create clear statements

In a restaurant partnership, it is crucial for partners to have a similar vision, mission, values and goals. Each partner should write a statement addressing those four categories. These answers should then be compared against one another and if the partners agree clearly on these statements then only, they should move on to the next step of partnership. 

Must Read: First-Time Restaurateur? Avoid These Mistakes

Defined job roles for each partner including accountability 

Taiki restaurant

The partners should have clear and defined tasks and each partner should be accountable to themselves, to each other and to the business. Frustration and disappointment in many partnerships occur due to a lack of clarity around job roles. Partner up with people who are willing, to be honest, transparent, patient, respectful and appreciative of your decision and you do the same for them.   

Have regular meetings with your partner 

It is very essential to communicate regularly about how the divisions of responsibilities are working out between them and if it is benefitting in achieving the restaurant’s goal. It is always better to discuss issues early so that they do not ruin your partnership or your work relationship. 

Keep a partnership agreement in place

Hospitality businesses like restaurants are no different from traditional businesses. Even if the potential partner is a close friend or a relative, a comprehensive partnership agreement should be drafted with the clearly defined financial structure of the partnership (profit share investment, etc.). Usually, one partner looks after the back office while another looks after the front end, or one partner is just there to assist in finances while the other operates the business. Every minute detail must be documented and reviewed by a lawyer and signed by both partners to avoid any future conflict.

Also Read: 4 Ways you can Scale up Restaurant Business

Starting and managing a restaurant alone can be stressful and daunting if you’ve not done it before. In a partnership, you can benefit from companionship and mutual support. Any business partnership formed without necessary planning is doomed to fail but with proper consideration and thoughtfulness, a partnership can be a huge success. There is a better chance of the success of the restaurant through a partnership than any of the partners running their restaurant business individually.

Apeksha Kamath (left) and Krish Nayak (right)

Krish Nayak is the Co-founder of Taiki (Japanese & Korean) Restaurant in Indiranagar, Bengaluru. It was founded by Krish Nayak and Apeksha Kamath under Vara Food Works. The restaurant features modernist Japanese architecture. Though it is housed in a narrow space of 10'x120', the mirror walls and skylights give a sense of soothing space. The signature dishes include the delicious Fiery Chicken Gimbap, Korean Fried Chicken, scrumptious Thai Curry & Jasmine Rice, Yaki Udon, Prawn Tempura, Jjigae - Korean Stew and many more.

There are lots of challenges to be faced when you come out of a hotel. When you start a restaurant business on your own, you have to manage everything. Solving challenges is interesting. Here are a few things the owners of a restaurant startup must know before they start their business in Hyderabad.

Patience is a Must

A restaurant is such a business where you put a lot of money and cannot expect the returns to come immediately. People have to have the patience to deal with it, and they should have the capacity to run the restaurant for the next 6-8 months from the pocket. You have to wait for a long time to get a return. It’s not easy like other businesses.

Also Read: 10-Step Checklist to Open a Bistro in Mumbai

Dependency on Manpower

Most of the people depend on the chefs or other people like service staff at their restaurants. There are many restaurateurs who are unable to manage the cost or staff; they sometimes feel that their restaurant is about to shut and are willing to seek help. Getting good manpower is becoming a challenge. You need to trust the service staff, even if you aren’t at the restaurant. Many times, new and especially low-budget restaurants mix up with the roles of the staff, which is okay. But the challenge lies in hiring the best and trustworthy.

Rentals

Rental aspects are important too. When people put things together they only look for the costs involved in building up the restaurant. They forget salary wages are around 24-26% of the revenue of the restaurant. The rental, sometimes, can go up to 20% also; all these have to be counted. Your pocket has to be deep enough to bear all the expenses.

Location

A location should be a prime concern. It is not that people do not travel for food. I have instances where people travel 25 km and call us while on the way that “there is traffic and we might get late”. I personally serve them when my staff leaves for the day. You need to be very careful while choosing a location keeping an eye on the footfall available in that area - is it a business estate or a residential.

Also Read: Restaurateur Shivam Sehgal Sees An Untapped Business Opportunity In Delhi’s Dwarka

All these things you need to keep in mind.

Chef Chalapathi Rao, fondly known as Chef Challu, is one of the finest chefs serving South Indian cuisines in Hyderabad and abroad. Click to Read Full Interview

As told to Sara Khan

A couple of generations ago, convenience foods or Ready to Eat/ Ready to Cook food was an absolutely unimaginable concept – the only form of cooking was making it from scratch. Fast forward a few decades– convenience foods have not only become daily needs of homemakers but also chefs who are not leveraging the benefits of convenience packaged foods. Preservative-free and natural packaged foods are causing a revolution in the HORECA industry by providing consistency, lower wastage and higher yield.

The Growth of RTE and TRC categories

Ready to Cook and Ready to Eat foods have been gaining immense popularity because of the convenience and the eclectic variety that they offer. Today, several brands offer food options that reflect the authentic taste of Indian dishes. With rapidly changing socio-economic factors, the demand for convenience foods is increasing steadily. Not only are the millennials buying them, but contemporary parents are also turning to these pre-cooked meals to tackle the time crunch caused by accelerated lifestyles. Anamalgamation of factors like rapid rate of urbanization, diminishing culinary skills, rising income, and an increase in the millennial work force have amplified the growth of this industry. Furthermore, the rise in the number of Indian travelers and students who prefer to carry along the taste of their favourite comfort food across oceans has helped drive this growth further. Food technology has been one of the most rapidly evolving sectors. Today it is possible to preserve food without preservatives by using technologies such retort sterilization, High Pressure Processing (HPP), freezing and several more. These technologies enable fully cooked food to be shelf stable at room temperature or controlled temperatures for weeks or months. Moreover, good quality fresh raw materials negate the need of adding any artificial ingredients such as MSG, artificial colors etc.  Several reputed brands are using cutting edge technology to stick to their all-natural promise. Moreover, companies are going the extra mile to source daily fresh frame produce to get fresh tasting products without any additives.

Go healthy or go home

Consumers wish to indulge in healthy yet tasty meals. Brands are making the best use of super-nutritious ingredients like brown rice, ragi, flax seeds, oats, etc. to keep up with the consumer trends. Moreover, brands are now even picking up global trends and offering organic and vegan Indian products for these niche consumers.

Uplifting the HORECA sectors

The HORECA sectors (Hotel/Restaurant/Café) are making optimum use of RTE/ RTC foods in a bid to cultivate consistency, great taste and innovative flavours across all their outlets around the globe. This has enabled global QSR chains to ensure their food tastes nearly the same -whether in India or in USA. It has indeed helped in overcoming geographic limitations whilst enabling them to serve consumers in a quicker, more efficient manner.  Brands are especially catering to this industry by rolling out smarter and more innovative options to equip chefs with increased ease of preparing these dishes, proving to be great time-savers for everyone. Convenience foods are finding greater application in leading in-flight kitchens, restaurant chains, QSRs, hospitals, caterers and so on. RTE/ RTC foods are not threats to chefs but are aids that let a chef do his/her magic better by leaving the mundane jobs to packaged foods.Chefs have more time to focus on innovation and speed. Using convenience foods as a base, the uniformity and authenticity of various signature dishes can be retained seamlessly. The future is very promising for the collaboration between convenience foods and HORECA industry.

Innovation is the future

In any industry, innovation is the real game changer. In the RTE and RTC space, players have reinvented their products in multiple ways, rangingfrom healthy snacks, vegan meals, allergic and, gluten- free to even superfoods. The future of India’s convenience food industry in most has numerous opportunities and possibilities for growth, development and innovation. We are yet scratching the surface; Indian food has gotten very popular amongst foreigners over the past decade and you can now find Indian Ready Meals across international chains such as Walmart, Costco, Whole foods, etc. India will play a major role in shaping the future of the global food industry going forward.

Abhishek Sharma, Food and Beverage Manager at Radisson Blu Faridabad, is the hospitality professional with over 15 years of experience at some of the finest luxury, business and leisure hotels encompassing: F&B Operations, Business Planning, Profit Centre Operations, Vendor Management, Market Communication, Business Development, Quality Management, Process Improvement, Budgetary Control, General Administration and People Management. Previously, he has worked with brands like Hyatt, Park Hyatt, Taj, Shangri La and The Imperial. He has also been the part of core pre-opening teams for Radisson Blu and Park Plaza Hotels in New Delhi. 

Having served different brands, how do you differentiate Radisson from others?

Radisson Hotel Group is one of the world's largest and most dynamic hotel groups with eight distinctive brands with more than 1,400 hotels across the globe. 

What is your strategy to attract more clientele? 

The only way to attract more clients to the premise is to offer them a very unique, unparalleled and distinct offering. The customers, nowadays, are very well travelled and well-versed. We need to cater accordingly to the needs of the set of target clientele.

Must Read: Know Your Clientele, Varun Puri's Suggestions to Restaurateurs

Do you think location serves as a hurdle to the hotel?

At times it does, but it all depends on how you take up the challenge. When we opened our hotel in Faridabad, everyone used to say that the market here is extremely tough to crack and limited. Two years into the operations we have been extremely successful in creating a name for ourselves. We are the most favoured brand in this part of Delhi-NCR. A very high number of regular top-end clients being our patrons. We have varied offerings so as to cater to the international as well as domestic travellers.

How do you see the F&B industry in Faridabad? 

The F&B industry in Faridabad is still at a nascent stage but surely evolving. The eating habits of the people are changing and they have started venturing out for dining. New standalone restaurants and microbreweries are being set up which shows that the market is growing in Faridabad.

Also Read: What Makes Aerocity A Location Ingredient?

Your plans for events like weddings and MICE?

We are very aggressive in the wedding and MICE segment. There is a team of highly-talented individuals in place to make sure we do not leave any stone unturned.

We want to be a venue wherein the guest feels that they have come to a one-stop shop. We use whatever resources needed to make the events a memorable one and one to be cherished all through life. Exceptional catering and on-site planning services ensure that every detail is perfect. Recently, we have been awarded as the best MICE hotel in Delhi-NCR.

Brief us about your F&B offerings and the responses so far?

We have been very well and warmly accepted in the market. All our offerings have been appreciated and we have many regulars who come over to be at our restaurants – The Great Kabab Factory, Broadway, The Cove and Tea Studio.

Delhi’s Aerocity has become the star location for the retailers and the food and beverage world. Eight years back if you had crossed the roads at Aerocity, it was quite a lonely place with local pop-ups and eateries and a few hotels around. Within a couple of years, the location garnered the attention of the private builders, retailers, hotels and most recently restaurants. The result – Aerocity in Delhi has become what Cyber Hub is to Gurugram. Aerocity, which is in very close proximity to Indira Gandhi International Airport, is very well-planned and developed. This year, in 2019, Aerocity saw the launch of at least six restaurants – Toy Room, Dhaba, Tappa, Plum by Bent Chair, The Beer Café and Liv Bar, and more are still underway.

Vikrant Batra, the founder of Café Delhi Heights, apparently, was among the first ones to saw the potential in the location. He had opened the restaurant two years back. Vikrant believes, “Aerocity serves as a brilliant combination giving the corporates excellent hospitality and phenomenal ambience to the families residing in the closer vicinities. Most importantly having the airport next door with a good inflow of expats, tourists and travellers, Aerocity is a potential market for restaurants.”

Rahul Singh, the founder of The Beer Café, is of the view that location plays a crucial role in the business. “Aerocity has got the right catchment,” he told Restaurant India.

Cafe Delhi Heights at Aerocity

During an interview with Restaurant India, CEO of Vatika QSR Pvt. Ltd., Nitika Kapur, dropped hints that the Group is considering a Nukkadwala outlet at Aerocity as well. Upon asking upon the future expansion plans and the launch of an outlet at Aerocity, she said, “Nothing is a no for us. Wherever we go, we haven't experienced a massive setback or failure in terms of sale because the food is very well accepted. That is not a big challenge. We did look at Aerocity as well but the restaurants and cafes coming up in the area are more to do with the evening culture and crowd where alcohol becomes an important thing which Nukkadwala doesn't serve.”

It’s too early to say anything about the QSR brand, but many restaurants are mulling the location.

Aerocity, An Apt Location for Restaurant Businesses Right Now

Dhaba Estd 1986 Delhi by Azure Hospitality

Rahul Singh chose Aerocity to open the 40^th outlet of The Beer Café. He says, “The Beer Cafe is the neighbourhood place. We obviously go around searching for the places/locations which have a footfall whether it's from the corporates or the mall goers. Aerocity fits in these boxes - it's a developed place, it's done by Bharti as a Group. The Group kind of leased it and zoned in a brilliant way. It's a large capital for corporates, there are many hotels in the area which means there is a captive audience; it has also now become an easy commute at Aerocity. That's why we are there. We open in every possible place.”

According to Vineet Kochar, head of operations at Dhaba est 1986, Aerocity as a hub has very positive vibes. The brand mix is wisely chosen there and caters to all age groups. “Aerocity had paid eye to details while planning the space. It has no parking issues, which has been a concern in Gurugram. This is Delhi's own hub.”

Umang Tewari, the owner of Liv Bar, is also of the view that unlike other places, Aerocity as a location doesn’t have the parking problem for the guests. “The location is a crowd-puller,” he says.

Why Location Is an Important Ingredient in Restaurant Business?

Tappa at Aerocity

The key aspects – foodservice, staff and location - should be carefully considered before rolling out a restaurant business anywhere, and industry experts like Kushagra Nagrath, Vikrant Batra and Zorawar Kalra approve the same.  According to Vikrant, a location helps boost your brand.

“Location is very important in your restaurant business,” says Kushagra Nagrath, Vice President – Operations at Lite Bite Foods Pvt. Ltd. Tappa by Lite Bite Foods Pvt. Ltd. has recently opened its doors at Aerocity, Delhi.

Zorawar Kalra, Founder and Managing Director, Massive Restaurants Pvt. Ltd., is of the view that a poor location will harm your business. “If you have great kitchen or service staff, and the location is bad, it will be very difficult to pull-in the crowd.”

Why These Restaurateurs Chose Aerocity?

Farzi Cafe Restaurant at Aerocity, Delhi

Priyank Sukhija and Natasha Jain of Plum restaurant by Bent Chair, say, “Aerocity not only flaunts 5-star establishments and well-known brands from the F&B industry, but it also features unique brands that cater to different niches and have made a name for themselves in the segment. Delhi-NCR has never seen anything quite like it, but they are coming around to this concept. The idea is slowly picking up and starting to stir quite a few conversations.”

Also Read: Restaurateur Shivam Sehgal Sees An Untapped Business Opportunity In Delhi’s Dwarka

"Being a never-done-before concept, Plum by Bent Chair has been carefully thought out and planned. Every little detail has been considered, from the location and design to lights and crockery. We've worked long hours on perfecting it, and we're so glad it is receiving the acceptance and love that it has. We'll continue to make the experience richer and better for our customers,” they add.

Toy Room, Aerocity in Delhi

Replying on why he opened Toy Room’s outlet at Aerocity, Akshay Anand, the owner of the restaurant, says, “Toy Room Delhi is in Aloft hotel which is a Starwood property catering to the young luxury traveller. Aerocity has a modern, clean, organised and secured infrastructure. The infrastructure is at par with international cities all over the world. Being the first international nightlife brand to enter the Indian market, we couldn't have asked for more from this location. With more than 7000 rooms in the area, we will always have a good footfall.”

Newly-opened Restaurants at Aerocity

Tappa

Tappa is located at Worldmark 1 in Aerocity and has a lively ambience. It has a unique colour combination with yellow and grey interiors. The restaurant is ‘unofficially’ divided into three segments and caters to an all-age-group audience.

Plum by BentChair

Plum by Bent Chair

Plum by Bent Chair, India's first true retail restaurant, is a collaboration between - First Fiddle F&B Pvt. Ltd by Priyank Sukhija and Bent Chair by the father-daughter duo - Neeraj Jain and Natasha Jain.

Reigning hearts all around Mumbai, Plum now brings its charisma and charm to Delhi. Lauded for its one-of-a-kind concept and its lush breathtaking interiors, Plum is India’s most Instagrammable restaurant with over 200 Instagram-worthy food and decor items present at the venue.

Toy Room

Present in eight different countries, Toy Room is one of the biggest and hottest UK-based international entertainment brands with outposts already operating in London, Dubai, Istanbul, Rome, Mykonos, Athens, São Paulo and now India! Housed within the vibrant and stylish Aloft Hotel Aerocity, one of New Delhi’s most cosmopolitan leisure and business destinations, Toy Room New Delhi brings its brand of playful naughtiness and celebrity glamour to India’s nightlife scene. Restaurateur and hospitality entrepreneur, Akshay Anand, is the visionary who brought Toy Room to India.

LIV Bar

LIV Bar, Aerocity in Delhi.

The concept of LIV bar is very unique and one-of-its-kind in Delhi-NCR. Surprisingly, it has “No Menu for cocktails” in its cocktail bar. The diners get to interact with the mixologist there and depending on their preferences - ingredients, flavours and alcohol – they get a customized cocktail.

Dhaba Estd 1986

Dhaba Estd 1986 Delhi by Azure Hospitality recently opened its 10^th outlet at Aerocity.  The ambience at the restaurant recreates unparalleled highway eatery nostalgia, just like a dhaba. Given a shot of new age fun and kitschy interiors with the legendary classics on the menu along with some nouveau beauties - Dhaba is recreating the same magic at Aerocity - but with more full-on Punjabi flair.

The Beer Cafe

The Beer Cafe, Aerocity, Delhi.

The Beer Café, India’s largest alco-beverage chain, opened its 40th outlet at Aerocity in Delhi. Enhancing the ‘beering’ experience for its patrons, this brand-new outlet is the only place in the city to offer a whopping 16 varieties of the fresh and delicious ale on tap.

The much hyped interim budget of the Narendra Modi’s government ahead of the Lok Sabha elections remain biased with restaurant industry getting lesser in its kitty. Restaurant industry is worth Rs 3,52,000 crore, and is expected to grow to Rs 5,52,000 crore by 2022,  generating over 6 million jobs. Single window clearance for the Indian cinema sector has manifested ease of doing business. Still, restaurants have been awaiting relief from the 15 odd licenses needed to serve a sandwich.

“Government must recognize the increasing contribution by introduction of a uniform policy that includes single window clearance and reduction in no. of licenses for operating a restaurant,” shared Rahul Singh, President, NRAI (National Restaurant Association of India).

Though, the GST regime was brought in to achieve transparent transactions and ensure full compliance. But removal of ITC for the restaurant sector has brought in bad practices and unregulated transactions. “Discriminatory removal of ITC has taken away the “vatability” of GST, passing on the burden of cascading tax to the consumers; thereby striking at the very root of the regime,” added Singh.

On, the other hand, the industry accepted that the budget announced is consumption oriented will prompt spending across sectors and middle class consumers. “There is no denying that the spending power will increase with new tax benefits to the middle class customers and it will drive consumption at restaurants and food & beverages places but since there was still no mention on input tax credit, it is biggest loss for F&B,” pointed Nitish Jha, VP- Sales & Marketing, The Catering Inc, citing it as an average budget overall.

Commenting on the same, Singh said, “Much needed doles provided in the budget is surely a positive sign for the restaurant sector as it will drive consumption. However, the fundamental philosophy of GST remains lost in the regime which negates Input Tax Credit (ITC) on the premise of a lower output tax rate.”

Meanwhile, as more and more customers are getting health freaks, restaurants and food companies are also coming up with healthy alternatives to please their customers. And, for them this budget may seem a bright light as the government intends to focus on healthy and organic foods and farm products.

“The budget touched upon “healthy India” and “comprehensive wellness” and the F&B industry will have a major role to play in this regard. As a chef my menus always have seasonal produce sourced responsibly to give the guests healthy and “good for you” food options while making no compromises on Taste,” said Tarun Sibal, Director, One Fine Meal, adding that as a restaurateur and an entrepreneur he has always stated that food safety and hygiene is the answer and not a problem. “I welcome this budget focusing on Food and Food safety,” he further added.

Hence, we can say with focus on consumption, the budget remains a hollow budget for the restaurant industry with nothing to ease of doing business.

Presenting the most awaited and the crucial budget ahead of the Lok Sabha elections, Finance Minister Piyush Goyal mentioned that the government will focus on self-sufficiency in food and improving agricultural productivity with emphasis on organic food forms.

During his speech Goyal has cited the above agenda as the eighth dimension of the government’s vision.

“We also aim to create a healthy India, with distress-free and comprehensive wellness system for all,” added Goyal.

Also, as health- and hygiene-conscious consumers tend to adopt healthy eating options. Food operators have been forced to add healthy eating options to their food menus. Some restaurants have also started serving health food and organic food as their core offerings. And, this will be good news for all the restaurants serving organic staples and organic food players as the government now intend to focus on organic products and farms.

According to a report by FICCI-PwC, “Overall, the health and wellness food service industry will continue to grow as consumers become more conscious about their diet by trying to eat healthy, going for farm-to-table lunches, growing their own garden herbs, buying as much organic produce as they can afford, trying new millets and consciously avoiding junk as much as possible.”

The government in its interim budget also mentioned that it will focus on building digital India by creating more jobs in the sectors. Hence, we can see that the food-tech sector is going to grow at much faster pace. “We are poised to become a $5 trillion economy in the next five years and aspire to become a $10 trillion economy in the next eight years,” added Goyal in his speech.

Not only this, Indian food-tech industry after a brief turmoil that led to consolidation and exit of a number of start-ups, it is back on a high growth trajectory with the sector’s leading lights, Zomato and Swiggy26, raising huge amounts of capital this year, enabling optimisation of operations and a turnaround in fortunes.

“The consolidation frenzy saw as many as 24 mergers and acquisitions in the food technology space during 2015 and 2016 as against ~12 so far in 2017 and 2018. The sector has also raised ~US$950 million in Private Equity capital from ~60 transactions in the last 28 months.27 The recovery has been led by a reduction in delivery costs and market expansion with order volumes emerging as the primary metric for assessing growth that has increased from ~160,000 in 2016 to ~370,000 in 2017 at 130%,” added the report.

And, with India becoming the second largest hub of startups, we surely can expect more and more brands opening doors for us.

It is believed that customer is the king to drive sales at a restaurant but we often forget about treating our staff well. It is not just about serving your customer rightly rather it is about serving each other well.

And, as experts believe and often debate about that the top priority at any workplace and for that matter at a restaurant should be its staff and the people. “Our staff is our family and that is ingrained in our company's DNA; it's logical to build the company culture around this philosophy since majority of our days and nights are spent with our team,” shared Bhavya Kohli of the famous Pho King restaurant in Delhi, adding that they share a great personal rapport with each and every member of the team and make sure they connect with each other on a personal level.  “As far as making them happy, well, our team works hard and parties harder. Apart from this, we ensure that daily incentives are given for mini goals set and defined at each and every level of the organization,” added Kohli.

ALSO READ: https://www.franchiseindia.com/restaurant/how-to-manage-your-restaurant-staff.11433

It is sometimes critical that your restaurant staff has to be presentable. No matter how good the food is, how accessible the location is, if your restaurant staff is not approachable and competent, chances are customers are not going to come back. The interaction between your kitchen staff and customers can do more to increase or decrease sales than any ad. Your servers should help create a dining experience that ensures repeat visits from your customers.

“There is no doubt about the fact that every successful restaurant is backed with highly dedicated staff and team. We tell our people that they are not employee indeed they are the family and this is a family business,” pointed Manpreet Singh of the Pinch of Spice who takes care of his staff in all aspects. “All necessary benefits are given to our entire employee and in any condition if we have to go beyond for their job satisfaction, we take steps without giving a second thought,” he added further.

MUST READ: Hiring Staff For Restaurant Success

Also, in order to create a great work culture it is important to impart training to your employees and hire experts to make sure that there are no nuances added to it. The recent incident of a Zomato Delivery Scout eating food while on way to the delivery made several headlines as to what made the person to do this. "As a fast-moving and growth-oriented organization, Zomato has people from various walks of life as a part of its integrated vision. We believe strong mental health plays a significant role in productivity and the overall quality of work-life, across all levels and stakeholders within the organization. We are making an attempt to build an environment that encourages professional help. Regardless of a given employee's position or department, guidance from an accomplished professional,” said Deepinder Goyal, Founder and CEO, Zomato that has hired Dr Rohit Garg to train its employee and act as an invaluable component in designing a sustainable eco-system for the tech-delivery firm.

ALSO READ: Zomato Delivery Boy Eats Food, Video Goes Viral

Also, in addition to building a great culture at workplace for the staff, restaurants should must setup a learning and deployment centers.

Visual merchandising is multi-dimensional and hoteliers can choose from various ideas when designing displays.  Most noticeably, merchandising is no longer considered an afterthought, it has emerged as something that restaurant and foodservice owners now consider a must – something as important as the kitchen design and the menu.

The key to designing a successful display is by conceptualizing brand’s value and mission onto the interiors and the menu. Merchandising utilizes product placement and displays to drive sales. It's an art form that relies on data and understands what drives consumers. When done well it pushes a brand narrative that evokes something aesthetically pleasing and relatable. It can also provide touch points so consumers understand how to interact with products, especially at a time when the customers are distracted.

The intention of visual merchandising is to create stopping points and increase customer’s curiosity.  It's very effective to be able to do that during the festive season as it tends to be a pretty rich and deep merchandising environment. Below are the sure shot ways to ace the visual strategy:

Color Is King: Color is powerful; it can either make or break the store’s visual displays. The hotel or the foodservice joint might have an erratic display but if the colors coordinate well, the display can still be a work well together. Consider using contrasting colors or monochromatic colors for creating intriguing and eye-catching displays.

Start with Merchandising: Most new restaurant and foodservice joint incorporate merchandising displays and areas right from the start. Smart owners have their interior designer work alongside a merchandising consultant so there is no need to redesign your restaurant when you decide to put a merchandising program in place.

Use Menu as a Power Tool: Menu is the greatest marketing tool and should be used beyond simply listing the dishes and their prices. The average customer will spend around three minutes looking at the menu, so it needs to attract them to not only order the most profitable items but want to order more than just one. The menu should be designed in such a way that it entices the customers to come back to try other dishes.

Create a Focal Point: Where does the viewer’s eye focus on your display? Do their eyes move toward a specific location on the display or are they confused about where to look? Create a hotspot--or focal point for the customers. Examine your display from the customer’s point of view to ensure that they can easily view the hotspots and merchandise. Remember, the focal point is the food service and customer service of the restaurant, not a visual element you use to add to the story.

Tell a Story: Use powerful, sales-enabling designs to display the USP of the restaurant. By telling a story, the customer understands the offerings better and enables the buying decision.

Use empty space wisely: The section between the displayed merchandise and the ceiling is the most underutilized. This space can be used for many different things, like signage providing information about restaurant or the star staff members. You could also display customer testimonials with the customer’s name and picture.

Visual merchandising tells the story of a brand. It's not just about product placement in a store but also about enveloping customers in an experience. At a time of increased competition, thoughtful merchandising can be a key factor for increasing sales. Visual merchandising can create a deep connection of the brand with the consumer.

The food service industry is at the cusp of a massive growth, wherein we can see a fantastic double digit growth over a decade, all thanks to the changing consumer behavior and eating out trend.

With an aim to reach Rs 5,52,000 by 2022, the food service industry is growing at a CAGR of 10 per cent. “There is a huge consumer market, changing consumer habits, increase in disposable income, making the industry bigger and better,” shared Unnat Varma, MD, Pizza Hut India Sub Continent and Chairman, FICCI Task Force on Food Service Retail at FICCI’s Foodzania 2018, adding that changing landscape of the food service retail industry is largely driven by the changing consumer behaviour which can lead the sector for a sustained double digit growth over a decade.

Over the last 15 years the sector has seen many changes. Initially, it was about international brands making inroad into the Indian market, more influx of home grown brands turning into organized restaurant business. Then, came the phase where there was too much supply, but the demand from consumers was stuck giving a tough time to the restaurant industry. But, today the sector has seen a right quantum of things and supplies. The consumer market has become huge, they are willing to pay more and are ready to experiment, there is a sudden rise in disposable income and new age start-ups are mushrooming everywhere.

“With the advent of newer technology, the industry has seen a paradigm shift with consumers opting for ‘dining out’ experiences, making it an important partner for the beverage alcohol sector,” added Jagbir Singh Sidhu, COO- (North), Diageo India.

Also, the new age technology disruption is giving a new twist to the business. There is no denying that with advent of online or web-based ordering, the whole business about home delivery is revolutionized. “Internet penetration and smartphone usage has increased the demand for specialised and gourmet food,” mentioned the FICCI-PwC Report, released on the sidelines of the event.

Commenting on the same, Rahul Singh of The Beer Café added, “Next 10 years are going to be the golden decade from the perspective of consumption,” pointing that the food aggregators in increasing the consumption of outside food. He said that they are the creators of behavioral change among consumers that is going to increase propensity of dining out.

Hence, we can see that the food service is going to see a massive change and disruption giving new wings to the home grown brand and paving way for international brands penetrating deeper into the Indian market.

India continues to be the fastest growing economy in the world with some of the factors like young population, increasing disposable income, demographic changes which actually turns right the consumption and also offer restaurants and hospitality business a considerable opportunity to grow. Despite all the right ingredients we still do not see much of VC and private equity investment in the brick and mortar restaurant business.

Also, there is a sudden shift in the venture capital business. In the last two three years a lot of venture capitalist have invested in the food technology or the restaurant space. Majorly there were two things happening- the large ticket venture capitalists, people who were able to invest about $60 MN or VCs who are back investing traditionally into the core technology products and hence, food and food service at large doesn’t feature as an area of interest for them.

“There is no denying that you are putting in money to get a good return and so there will always be market size, scalability, valuation and most importantly the person you are backing,” shared Sumer Juneja, Partner, Norwest Venture Partners.

The issue which has come in the past in the restaurant space is about the scalability of the concept and the model, pricing it in the right way to make the investors earn money. “The scalability is becoming more apparent and I think investors have gone through a cycle in which they understand which formats can scale,” added Juneja.

India is going to be a low average value market with a very high volume and people tend to move towards QSR and other such formats where there is high volume. The GDP per capita economy is not going to change overnight and expenditure will take time. It is the 7-10 years long marriage between the investor and the brand. There has to be a price ride and there is no point getting a very sweet deal either way and then fuming out later. “One of the key factor in investing a restaurant is the sustainability. It all depends on the life span of a brand. For eg: earlier the life span of a casual fine dine was 4-5 years which is now coming down to 2-3 years. So, you should always look at the flexibility and how food is adapted to the change and constant menu innovation because most of the time restaurants that doesn’t adapt themselves to the change fails to sustain in a long run,” said Biju Thomas, CFO, Adiga’s.

Commenting on the same, Digvijay Singh, COO, Indian Angel Network pointed, “The innovation part in restaurant business also has to be taken care of.  Restaurant owners need to come up with innovative ideas of their dishes, the way they deliver overall experience to the guest. Restaurant has a shelf life of 3-4 years and that’s where struggle for equity come in.”

No matter how innovative the concept is if you are not passionate about it and your model is not sustainable, you are not going to survive. And, for investor sustainability is the key to invest in a brand.

As the restaurant industry continues to meet hurdles and head wings, operators are trying hard continuing to meet the customer expectations. Surprisingly, we are the most demanded customers globally and why not we are 1.2 billion people completing the world.

For a customer, dining experience these days is not just eating food and paying the bill. It is all about an elevated experience. In April earlier this year, an incident of how a customer was misunderstood and arrested by the local police from one of the Starbucks store in Philadelphia happened spoiling the whole customer experience to the next level. Two Business partners who were on a meeting at one of the coffee chains store were asked to either make a purchase or leave. To much surprise the guy was one of the regular customers at the café chain from the age of 15. The men met with the CEO of Starbucks and are pushing for meaningful change so what happened to them does not happen to anyone else. Though, Seattle-based Starbucks CEO, Kevin Johnson has apologized and ordered stores closed for mandatory training to tackle unconscious bias. But, to make sure that the same doesn’t happen with customers’ here in India restaurants are going beyond borders to elevate the dining experience.

“If you differentiate yourself well you are no more a convenience factor which so far cafes have been in India. We are blessed as we have seen waiting in all our stores. We are place between customers’ home and work. So, they want to chill, unwind and relax. The idea is to give them the free space,” added Rahul Leekha, Director, Coffee By Di Bella.

Spoiled for Pizza

Domino’s which set the whole pizza experience in India was one of the first global brand to introduce Indian customers to global taste. Following which we saw entry of many pasta and pizza players venturing into the country. One such example is Sbarro, the fast casual restaurant chain which is running around 500 stores globally which is half the stores Domino’s runs in India.

“The customer has a different notion about what food they wanted and what expectation they had. We had pizza on display and conveying people that we are giving quality food at a convenience price was a challenge for us,” shared Rashmi Balwani, Managing Director, Upper Crust Foods Pvt. Ltd that is running 20 stores of the sliced based Pizza chain in Mumbai alone. “A customer need value, quality and a great experience which bring backs the customer. We train our staff to engage with the customers else we will get lost. We are only QSR brand that does sampling in our stores,” Balwani added further.

How do you look at Customer?

According to a survey conducted by Econsultancy for Digital Marketing Trends, where they asked companies to state the single most exciting opportunity for 2018, customer experience was kept at the first level. The report also mentioned that 86% buyers will pay more for a better customer experience.  

Every brand has a same target audience but it is uniquely different in its own way. Some brand is known for their music, other for their food and drinks.  Priyank Sukhija who set a cult in the nightlife market with his popular brands like Jalwa, Tamasha, Flying Saucer to name a few has created these brands over custoemr experience and trust. “These brands are designed for the millenials of today. All my restaurants are very hybrid as you can go there for lunch in the afternoon, be there at the evening for some coffee and the night the same place becomes a very high energy space,” said Sukhija who believes that his customers’ want to experience something new every time and that has created a good traction for him and his business.

Hence, we can say that it is the product that the restaurants have been able to create that always stands out but what’s unique in each of these brands is the experience that they serve. “We are selling the vibe, experience. I pay attention on each table, section to create that whole experience,” pointed Sukhija.

While in the early stages of designing your restaurant, you may find it hard to think past the first year, but it's critical to think further down the road.

Even before you get to that point, a good business plan should factor in the worst case scenario.

According to a study, over 94% of new businesses fail during the first year of operation. Lack of funding turns out to be the most common reason. Money is the bloodline of any business. The long painstaking yet an exciting journey from the idea to revenue generating business needs a fuel called capital. That’s why at every start of the business, entrepreneurs are found asking questions relating to financing their business.

Good Signs to Invest

A large market that’s getting organised and moving towards higher value-added products has sparked investors’ interest in the F&B space where there’s rising demand for better, healthier, affordable and easy to access products, paving the way for entrepreneurs to jump in and build next generation brands.

Niranjan Sheshadri, Founder, Last Mile Ventures says,” There is a secular move in rating out the formally organized space to the branded space be it QSR, CDS or the Fine dining space.”

Colliding with several ups & downs, Sheshadri continues,” This trend will benefit almost every sector in the F&B space. The shift from unorganized to organized will continue to rise and the new era of Entrepreneurs is going to add value, creating brands which are likely to open 30 to 40 outlets across Tier 4 cities.”

On similar terms, Krishna Vinjamuri, Principal, Lightbox Venture Capital says,” With a growth of 10% every year, about 33% of the industry trends are slowly getting organized. Taking this as an advantage, we can build larger brands with multiple outlets.”

Reducing Risks

To an aspiring restaurateur, the challenges of funding a business can seem overwhelming.  “The growth of the market will continue over the next 10 years with a 15% growth, which is sufficient for an investor to invest and create large-scale business in the long run”, adds Sheshadri.

While such companies don’t exist today, certainly the entrepreneurs are there in the field, raising capital and positioning themselves to get good returns.

Most of the Restaurateurs will move away from the mainstream to malls. In terms of customer experience, the changes are not significant enough and will continue the way expansion is handled and the way supply chains are built.

It is always better to go for a partnership in the restaurant business as it not only makes investment easier but also reduces the risks in business by sharing the future profit and loss. If it’s your first restaurant venture, try to look for a partner who already has some experience in the restaurant business.

Innovation is Major

In an industry where standing still means falling behind, innovation is the defining factor for most successful brands.

Roughly speaking, the industry has received close to about 5000 crores of funding in the last 4 years which is half the money that was invested in this industry in the last 20 years.  

There is not much expectation in terms of innovation relating to the customer experience. A lot of innovation is expected around standardising processes to make sure that a brand can go from 20 outlets to 50 outlets without compromising on the experience.

“The most important development that is going to happen in the IPO market is going to be favorable towards successful chains”, Sheshadri adds.

There are changing business models actually helping people not just dine out but also at home.

Commenting on the invasion Krishna says,” Technology is helping people discover the restaurants with distribution platforms like Zomato, Swiggy, UberEats that are helping these restaurants maximize their potential by being able to offer to customers in giving them convenient food options.”

“There are elements of the supply chain that is relevant for larger size restaurants where technological innovation is playing a key role in ensuring that the inventory levels are done right”, Krishna added further.

With the demand for food rising every day, this industry now has a lot to offer to people who really want to invest in this field and to do something out of it. So this is the time to step in this business.

Whatever your reason be for opening a new restaurant, finding the right amount of financing and financiers is always a challenge. According to Zeenat Ahsan, Co-owner, Bohemia Café, “Financing is one of the prior things a person should think of before stepping on the second step towards opening your restaurant. Financing decides how your venture is going to be after it’s established.”

Investors

The first step should be finding investors for your idea and concept. Investors provide with the required money to open your restaurant. One of the most common types of investment found in process of opening a restaurant-- when a person with a lot of money is interested in investing in your business with a little profit. But it is necessary to ensure that you will be able to pay it back. Before opting for investors, it is absolutely essential to make a business plan about how to repay the investors and create a timeline for your activity.

Loan from family and friends

It is very important to know your friends and family’s opinion before establishing a venture. They always play a helping hand by contributing to your idea. These people know you and are most likely to believe in you and your business model. But you should be careful while doing so because usually, these things can ruin your relationship. It is very important to spell out the parameters in writing and is agreed by all the parties.  

Bank loans

Most restauranteurs get their financing through a bank loan. It is one of the easy yet challenging method as most banks are leery of restaurants due to their high failure rate. Small Business Loans come very handy when you are financing through a bank for the first time. “Financing through your bank is one of the best ways while opening a venture of your own. Banks usually provide with the amount of money required after proper documentation, allowing you enough time to pay them back on a fixed interest rate,” shares Vedant Goyal, Owner, Threads Café.

Opening a restaurant isn’t an easy task. You need to have a great menu and superb customer service managing the costs alongside. Many of the people fail in securing their financing as they didn’t know accurately what their needs were. So it’s very important to come up with a business plan before moving towards financing for your restaurant.

Today, the new generation is craving for change and innovation. Given the right proportion and time, Bubble Tea as a segment has gained momentum worldwide. With a wide variety of refreshing flavored fruit and milk teas served ice cold or piping hot with various toppings, bubble tea has lots of opportunity as a segment to grow in the country.

“Valued at $1,957 million in 2016, Bubble tea is projected to reach $3,214 million by 2023, and is growing at a CAGR of 7.40% from 2017 to 2023,” said a report by Allied Market Research.

Betting Big on the Segment

Originated in Taiwan, bubble tea or boba tea as it is popularly known as, is widely consumed flavored beverage containing tea as the basic component, along with chewy tapioca balls. Tapping the market, the creator of Malaysia’s Tealive bubble tea brand has announced its collaboration with World Iconic Brands Hospitality Pvt Ltd (WIB). WIB is a specialist franchise development company in India, which has secured master franchisee rights to open 140 stores in three cities in India within next five years. The Tealive outlets will come up in New Delhi, Mumbai and Bengaluru.

“India being a tea loving country, we see a huge potential for our product. We are happy to seal this partnership with WIB to be the first Malaysian bubble tea brand to enter the Indian market. We could not have chosen a better partner, as WIB is owned by Franchise India, which has a proven record of over two decades in the business,” shared Bryan Loo, CEO, Loob Holding that serves 2.5 million consumers each month in their 175 outlets in Malaysia.

Following Local Footprint

Not only international brands, Indian brands are also venturing into the segment capturing the right proportion of clientele and trend. Globally famous for its tea drinking habits, India is one of the largest producers of tea in the world. “As per Indian Tea Association, the total production of tea in 2016 was 1,267 million kg, and the industry estimated output of 1,280 million kg in 2017,” said Gaurav Marya, Founder, WIB who believe, Tealive presents a huge opportunity in the country where people relate to the concept in a big way. “Tealive is an ideal partner to introduce a modern tea-culture to India, which itself has a long tradition of enjoying tea,” added Marya who is also the Chairman of Franchise India Group.

Owing to increase in health benefit, consumption of bubble tea accounted for more than 83% of the total bubble tea market in North America and Asia-Pacific. India is not too far when it comes to accepting the global trend seeing the growth of health freaks and wellness influencers in the country.

“We are actually trying to eliminate the difference between taste and nutrition by fusing them together. We try to serve everything with some health benefits,” shared Adnan Sarkar of Dr. Bubble that is running 20 franchised outlets in different part of the country.

As fineness is subjective depending on each person's preferences, so the nature of a restaurant is in the experience of the coffee shop. Which is the reason any endeavor to rank the world's best restaurants will certainly deliver as much disillusionment as rapture – not simply among contenders, but rather among the individuals who take after the rankings to the number.

From client benefit, to establishing settings and stance, there are numerous guidelines and norms that are required to be taken when working in a formal feasting condition. Despite the fact that some of these manner practices may appear like presence of mind to a few servers, for example, grinning and being neighborly, others might be new to new representatives who aren't accustomed to working at formal restaurants or feasts. Regardless of whether you're serving supper at a fine dining restaurant, wedding gathering, or upscale occasion, these decorum tips will help guarantee you to act professionally in any formal foodservice setting. Here are 5 tips on setting a fine dine restaurant -

Flatware setting - A standout amongst the most widely recognized issues for individuals that are utilized to flatware (blades and forks) being conveyed to the table with each course. On a suitably set table, you mostly observe a progression of forks on the left half of your plate, and a progression of spoons and blades to your right side. The extremely straightforward lead is to dependably work from the outside in; the cutlery most distant far from your plate is for the principal course. On the off chance that you are as yet uncertain what to do, pause and take after your leader or host.

Pairing food and liquor right - Everybody thinks about combos where they get fries and coke with a burger, however,, there has barely been any fine feasting restaurant that has accomplished something like this! Much the same as bars have happy hours; you could go for one day of the week committed to combos--- a shimmering wine or a martini with their food. This entails greater net revenues for you, and obviously, an exceptionally unique idea for your clients. Market this well and you'll be amazed at what number of individuals turn up on this day of the week.

Setting the Table - Fine feasting restaurants require significantly more tender loving care than simply taking a request and conveying food. Regular side work methodology will frequently incorporate orchestrating table settings for the following arrangement of benefactors, cleaning crockery, and collapsing napkins into appropriate outlines. When in doubt of thumb, crockery is set from the outside of the supper plate to within, since this takes after the movement of a formal spread.

Serving the Table - Most classy meals will incorporate 5 courses. Numerous formal restaurants rehearse the open hand benefit strategy, which implies that a server's arms are never to be crossed before a visitor, and sustenance is constantly served from the visitor's left side. Plates must to be whirled while being served so the protein of a dish is confronting the visitor, rather than a vegetable.

Clearing the Table - There are a few signs to check when clients are finished with their suppers in fine eating restaurants. Napkins will be returned on the table, and cutlery is regularly put in a vertical position over a supporter's supper plate. On the off chance that clients need to get up from the table to utilize the restroom, or influence a telephone to call, napkins are set on the seat to demonstrate the dinner isn't yet wrapped up. Clearing of plates ought to dependably be led from the privilege of the visitor, as this is industry standard. For dinners with different courses, purge glasses and plates ought to be cleared earlier the landing of the following course.

We have all heard micro nutrients and vitamins are essential for our growth and maintaining good health. And the issue of looking at nutrition from a micro nutrition point of view is not new. School books have already made us aware that they are essential for our body. But we really do not bother about it too much. We are not really into keeping a track about what ingredients we are getting from consuming a particular item.

Food Fortification Resource Centre (FFRC) is trying to contribute towards providing these nutrients to every person on a daily basis. FFRC is working with many doctors and scientists who have identified five major nutrient deficiency which can be found in our country listed as Vitamin A, Vitamin D, Iron, Folic Acid, Vitamin B12 and Iodine. They have formed a team under FFSC which is trying to provide fortified food to the people which can meet the basic requirement of nutrients in a person life.

“Deficiency of micro nutrients has been a major concern in the current time in our country. They best thing about them is that they can be added to common staples that we take on daily basis,” says Pawan Kumar Agarwal, CEO, FSSAI. He further adds, “We are trying to mix those ingredients in the daily eating items like rice, wheat, flour etc so that the proper amount of nutrition reaches to every house at a cost which is genuine and normal.”

The food safety watchdog is making sure that the right amount of nutrients is added to the staples so that it is not too little and not too big in amount. If it is going to be too little then it’s not going to have any effect and if it’s too much then it causes toxicity. FSSAI is scientifically making sure that what would be the appropriate amount for making the product perfect in providing nutrients. They are setting up the standard along with designing the logo for the fortified product so that the common man is aware which food is fortified and which is not.

Currently 92 per cent of the population consumes iodized salt in India. From the last one decade, the use of adequately iodized salt in India has gradually increased saving 4 billion IQ points in the last one decade. The All India Institute of Medical Sciences, New Delhi has been continuously involved with the Iodine Deficiency Disorder (IDD) elimination programme in India since the last six decades.

Why Fortify?

Our body need essential nutrients, vitamins and minerals in very small quantities on a daily basis to function normally fighting diseases and being healthy. Over 70% of people in India are still consuming less than half of their recommended dietary allowance of micronutrients which is affecting their health.

“Awareness of vitamin and mineral deficiencies is very low because of which most of the people are unaware of what is missing in our diets. Chronic fatigue, joint pains or low immunity is likely to happen because of this only,” Kumar further adds.  Fortified food with added micronutrients helps in address this in a simple, unobtrusive way. It is also the most cost effective, scalable and sustainable way to address this public health issue.

There is a need to create demand for fortified food in food industry so that businesses become aware of it. They should start producing fortified staples in order to serve people with food filled with basic nutrients.

The word "Gourmet" is being used a lot lately. What does it mean though? Is it expensive food? Or is it plating? Is a tiny portion on a huge plate indicative of gourmet food?

We believe there is no right answer. To us at Cafe StayWoke - it is the entire experience that makes food gourmet. At its core, it is quality ingredients and techniques which make a dish gourmet. Gourmet could also be associated with innovation. We have a Ragi Upma to a Duck Madras Curry to a Mushroom Vol au Vent on the menu.

Another important point is plating. In a cafe, the plating and portions have to be wholesome and comfortable. After all, you tend to frequent a cafe more over a fine dine. Hence a whole new genre - what we like to call "Gourmet Casual" (Courtesy: Tarun Sibal) has emerged which in one simple line makes "The familiar more exciting and the unfamiliar more approachable". Our observation is that with so much exposure these days the line between familiar and unfamiliar food is quickly disappearing. Everyone speaks gourmet. So it’s all the more toughe to keep them excited. We at StayWoke are not very big fans of fusion. We like to retain the original dish we drew inspiration from and just create it our way!

Of course, service is the single thing that binds it all together. As more and more people look for personalized experiences, it is imperative that cafes buck up to provide it. It could be something as simple as accommodating a simple change in a dish. Warmth, especially from owners, also creates a lasting impression. Service has to be quick, unobtrusive and accommodating all at once. In total it has to be your living room experience with very good service.

Costing, lastly is very important. A cafe is not a fine dine where you can charge any amount of money to the consumer. We cannot use truffles extensively in our dishes. So taking simple ingredients and turning them into something extraordinary is the key. We do use a small drizzle of truffle oil - to add a gourmet touch but without making it an expensive affair.

It's a tough line to survive in with so much competition. That little edge in service or food can really help in staying put!

FB: https://www.facebook.com/cafeStayWoke/

Manali Guha, is young, full of life, energetic soul and proud co-owner of Café StayWoke, Gurugram. Manali began with a graduation degree in Computer Science and Engineering from Heritage, Kolkata followed by a career in software development for three years. Manali is more of a people’s person.

It is often believed that happy faces bring the best to the table and similarly, a happy manager is an important part of the restaurant business. We have heard restaurant owners talking about their ‘team’ as an important part of their business and often it is one of the biggest challenges to get the best staff and team. Treated as the heart and soul of the restaurant, a manager knows his staff and customers very well, thereby making the restaurants run smoothly drawing the best of the business. But with all the glam that the manager’s job offers, they are moving out for better opportunities. Restaurant industry faces the highest attrition challenges because of the work pressure that it creates for its staff.

“We are one big family at Massive and we encourage our team members to take some time off, spend time with their families. Alongside, we have off-sites planned, family days etc,” shares Zorawar Kalra, Founder & MD, Massive Restaurants adding that awarding and rewarding is a done thing however, acknowledging their efforts and hard work is of utmost importance.

These days restaurant managers leave their jobs at top restaurants opting for a start-up restaurant because of quite a few reasons which include appreciation and good pay offs. “We have hired the best of the talents from the industry and given all of them a promotion trying our best to match their salary expectations,” says Abhinav Aggarwal of recently opened Café StayWoke at South Point Mall Gurgaon. The group has never believed in negotiation thinking that if the staffs are working for them, they should be satisfied and happy in their own terms. “We provide a lot of incentives which keeps the competition among the staffs alive. We also don’t try to question them if they are willing to have a holiday,” adds Manali Guha, the Co-Founder of the café who is trying to introduce the MNC culture at their restaurant.

Sharing a similar story Chef Om Nayak who runs The Pasta Bowl Company points that he never asks his staff to work if they are upset or don’t feel like working as it will falter in the food and service. “This goes for both my chefs and servers as this would hamper the service and food,” adds Nayak who has almost has 0% of the attrition rate at his restaurant. Hence, we can say that every restaurant owners know that a good team is very important. The pillar of an organization thrives on its team. But they somehow lag or miss on making their team and staff happy. “We at Massive have a very intense & streamlined process of selection &this is how we can proudly say we have the best in industry,” concludes Kalra who has award winning restaurants like Masala Library, Farzi Café to his hat.

Indian Restaurant Industry has seen twists probably more than a thrilled movie. Restaurants are opening every day driven by consumer awareness and high disposal income but new rules and regulations are also popping up along with that. The financial capital of India, Mumbai plays a vital role in the growth of Indian food service sector as the city is famous for its eating out culture and night life. An industry which is already overburdened by licenses where opening a restaurant needs at least 11 licenses to go through. BMC lag behind in making the deal unforgettable for the restaurateurs based out of Mumbai? In a move that is going to tighten the leash around the city’s flourishing hotel and restaurant industry, Municipal Commissioner Ajoy Mehta has proposed a new set of rules that BMC has to follow while issuing licences to restaurants which can be a real drudgery for the restaurateurs.

“New licence rule by BMC will directly impact the food service sector as it means lower spending thresholds amongst our consumers and guests. The hospitality sector acts as the third largest foreign revenue generator for our economy and has the potential to be a major driving force behind the country’s economic growth but changes like these could bend the spines,” shares Radhika Khandelwal, Founder of Fig & Maple.

When government imposed high GDP it was actually an indicator of a healthy economy and a healthy economy means greater consumer spends on food and frolic. “When it comes to speaking at a macro and micro economic level, I do believe that a decreasing GDP hinders progress and the economies of scale affect our supplies right from the vendors the brakes are applied throughout the operational chain,” says Manish Sharma, Founder of Molecule Air Bar.  But seeing how the turnaround is slowly being made post demonetisation the food and beverages sector is getting the tailwind it needs to stabilise. Now imposing new licence rules will make process complicated again and restaurants will of course take some time to insert each and every norm keeping in mind customer’s preference and their revenue.

“The government of India should help food industry in taking it to the global standards instead of creating hurdles in the form of new norms every now and then because it makes a restaurant’s job harder to pay attention at everything at once,” adds Siddharth Maskara, Founder of Brickwood.

For example, the restaurateur in Mumbai has to give an undertaking about the compliance done by him according to the norms and the station officer should verify by doing an inspection within ten days. If there are certain shortcomings found or additional requirements suggested by the station officer with reasons then the restaurant owner is required to comply with those suggestions and reapply. If all other parameters required for fire compliance are found satisfactory then an NOC should be given by the station officer to MOH. While the restaurant owner gives the compliance report, he should also upload the picture of the premises to show the compliance done along with the date according to the proposed regulations. This applying, getting NOC, filling additional requirements if needed or maybe reapplying, everything is time consuming which makes the job tough. Hence, to make India a global food destination the government needs to review the licenses in order to promote the food culture.

The hospitality industry feels dejected and is extremely disappointed with the Union Budget. Tourism contributes 7.5 per cent to India’s overall GDP and hospitality is the backbone of tourism. Hospitality is the single biggest contributor to India's tourism GDP and its growth or decline or stagnancy directly reflects on the health of tourism in the country. The foreign exchange earnings (FEE) from tourism amounts to roughly 23 billion U.S. dollars and once again the largest chunk of this earning is generated by the hospitality industry. This doesn’t stop here the industry also contribute in creating one of the highest no. of jobs in the country contributing about 12 per cent of the Indian workforce and is one of the biggest employers of unskilled and semi-skilled labour.

“The hospitality sector has been once again almost entirely ignored in the Union Budget. What the Government needs to realize is that Incredible India will be a success only when the Hospitality industry, which is a key driver to our economic growth gets right attention,” shares ," Dilip Datwani, President, Hotel and Restaurant Association of Western India (HRAWI).

According to a KPMG report, the hospitality sector is expected to grow at a CAGR of 16.1 per cent to reach Rs.2796.9 thousand crores in 2022. Despite having hospitality as an asset at its disposal which can propel the country’s growth, the Government has yet again chosen to ignore its potential. Though, developments in ancillary sectors like infrastructure and aviation are certainly positive but that alone isn’t adequate. Promoting and encouraging investments in hospitality can place India on the map of the tourism destinations of the world. “Undoubtedly infrastructure development and improving connectivity will help the tourism sector however with no specifics spelled out, we are not exactly sure how it could benefit the hospitality sector. We were hoping to hear from the Finance Minister reforms on taxation which would have made Indian tourism competitive with neighbouring tourism countries,” adds Rishi Puri, Vice President, Lords Hotels & Resorts. While ease of living has been given importance to, and which is great, ease of doing business remained a dormant subject.

Similarly, the year was bitter for the growth of restaurant sector as well. The industry has been singled out by removal of the Input Tax Credit being only industry which does not receive this benefit. And, the sector was expecting the government to re-introduce ITC for restaurants.

Not only this, restaurant industry with a size worth Rs 3,52,000 crore which is expected to grow to Rs 5,52,000 crore by 2022 is generating over 8 million jobs, and demands single window clearance and reduction of licenses which is way to huge as compared to all the global food destinations. “I warmly welcome the budget although it doesn’t have much to offer the restaurant industry. But government’s decision of allocation a corpus of Rs 10,000 crore to fisheries, animal husbandries, and related infrastructure will surely benefit our business as due to high demand and lower supply of meat products, at times we have to purchase food items at a much higher price,” points Ashish Bahukhandi, Founder Dudleys.

With all the expectation that remained unanswered for the sector’s growth this year’s budget has fallen short of expectations for hospitality.

Indian restaurant business is dominated by the unorganised players which constitutes 67 per cent of the overall food business scenario. The chain food business has to grow as compared to the US, the UK and other food market globally. And, this change has to be made to make more businesses successful and organised. For instance, big restaurants need to partner with small chains and acquire them giving it more organised format. Consolidation is the way forward for the growth of the restaurant sector in India. Both technology and offline acquisitions are important to match the global standards. Hence, one needs to be very clear and choosy about what he picks as a model. No doubt there is a certain level of dependency on the restaurant business itself. There are no enough margins for food tech entrepreneurs.

“The margins for errors in food-tech business are very narrow. So, if one goes wrong on their thought process or unit economics they are probably going to make more and more loses,” shares Kailash Nath, Innovation Fellow, Bharat Innovation Fund who believes that’s the reason where one can see most of the companies failing or losing out because of premature expansion or they are not thought through unit economics clearly well.

Also, when you look at these companies you will see that not many of them are cash positive. According to experts there are three things one has to keep in mind before venturing into the business from investors point of few. They need to keep in mind the customer acquisition cost, amount of margin that they have to play with and also how much logistic cost they have to bear to turn out around in the particular order. Likewise, if one has not got a good sense of these three livers probably they are going to lose out. One need to be very clear what the business model is, how are they going to bake at the table, can they do something more than other online platforms or order and most importantly are they aware of their customer. Getting the right investment is also difficult sometimes as the start-up get involves in lots of external advises and suggestion which in turn ruin the business and its core idea.

“An advisor should not be the crutch for your business. You need to have trust in your business. Lots of brokerage firm, consultants are there in the market who would say I can get you finding right PE or VC but trust me even if the introduction is made they will ask the founders to sit across the table and not they,” adds Sumit Sinha, a Food entrepreneur-turned-angel investor. It’s not about good investment but also if the person is the right investor to invest in the business.

Restaurants in India have seen a paradigm shift in the last 15 years as a lot of people approach the business and a lot of people approach what they think is trending. It is a firm belief that it is the fundamental in food business that rides you through. But seeing that how noisy the market is how you continue being one remains an unsolved maths. Chef Manu Chandra who has created some of the top most brands in the country like Fatty Bao and Monkey Bar which remain a trendsetter in their genre shares his view on these parameters:  

Remember Training, We are full of Skilled Forces: One of the challenges that restaurant business faces today is the skilled manpower. Given the fact that India is one of the most populous countries in the world...the question always rises why we are always short of the skills. “We are not really short on skills but we are short on training,” shares Chandra who noticed that people have very long resume but very less practical experience on how food should work.  

Learn from Failures if you want to Grow: Everyone in the industry loves to be on the gravy train and the truck that says this will be the next big thing. But nobody is sure what will work for them and lands into the trouble. Failure of course is the best teacher and some of the top entrepreneurs in the industry have learnt from these failures. “My most popular brand Fatty Bao which is an Asian Gastro Pub is born out of the failure which was so catastrophic that I almost thought of quitting the business at a particular point of time,” remembers Chandra who rebranded the brand, made it more colourful, simplified the product and made it successful which was beyond his wildest imagination.

Concentrate on what you are doing: Be Focus in What you are doing and not swayed by the gimmickry over the points of certain style of cooking. That’s really not the USP of a restaurant and that can’t be how you really going to try the consumers over and over again over a period of time. Earlier, the restaurants used to sign leases for 9 years and now they are happy signing it for 5 years because the dynamics have changed.

Be Adaptable, Success will follow you: The idea is not to get your money back quickly and the import aspect for tomorrow’s restaurant but to look at restaurant business as an entity. It can’t be a singular delivery module. It needs to be able to adapt itself to multiple things. And, we have seen many restaurant concepts that are already following these tricks. They can be co-working spaces, performance venues and also a small cafe at the restaurant as coffee has become huge and restaurants have started adopting it. It’s not about good food; it’s about so much more. Diversification within the space is very important.

Keeping yourself relevant:  Many a times restaurant owners and chefs are being questioned on how do they keep themselves constantly relevant. The answer really is keep reinventing yourself and the brand. “Five years ago when we opened our first mid market brand we opened it in a garage and we had no expectation from it. Surprisingly, we were the highest grossing restaurant per sqft for two years,” smiles chef Chandra as he has created a relevant restaurant brand, qualitative product at the right time.

Hence, there are many business aspects that needs to be taken care of these are few must haves to be on the top of the game.

An industry which has got its own dynamism and uniqueness there is constant upgradation in the restaurant sector. The great passion and creativity that entrepreneur and other people bring to the restaurant industry it only propels it forward. Though, if remembered rightly year 2017 could be termed as one of the worst year for the business of restaurant in India. But with entrepreneurs full of zeal and anxiety the sector has moved with the pace. Going forward in the coming year’s restaurant industry is all geared up to welcome new changes, trends and opportunities that is making this industry one of the most exciting sector to be in.

Will e-Commerce Change the biz of Restaurant

Long waiting hours, space crunch and high traffic has given customers and diners a reason for dropping a plan to eat out at the nearest. With buying food online becoming extremely convenient through digital payments and even cash on delivery (CoD), 2018 will be the year for a major shift in the food industry. “Globalisation is going to remain the buzzword. You are going to see several new food ventures in the digital space in terms of apps and more,” shares Padma Shri Sanjeev Kapoor who believes that there is never a dull moment in the sector and that’s keeping him on his toes.

This doesn’t end here lots of reports and studies have stressed there would be more than seven to ten fold increase in revenue generated through e-commerce when compared to last year. The key highlight is, however, studies now suggest that grocery and food industry will own the e-commerce this year. And with industry majors in the online space like Flipkart and Amazon marking their entry into the grocery segment, it is no surprise that food industry will play a big role in the e-Commerce marketplace.

Adding Sparkle to the Business

Beverages have never been a spotlight in the Indian food sector. We always had been a great foodie but we have never appreciated a good drinker! 2018 will see lots of beverages innovations happening at the restaurant and food space. Also, bartenders will get special recognition for their work and making a bar or restaurant popular with their art of bartending. Also, we the space will see lots of juice, heritage beverages, flavoured drink makers cashing in on with the billion dollar opportunity that the market holds. “With new beverage companies bringing their products to India, I see choices in India growing. We will hopefully see a new generation of single malts and a growing gin-drinking culture. Bartenders will also begin to get more importance and recognition in the industry in the coming days,” says Shreyas R who owns Bootlegger one of the trendiest pubs in Bengaluru.

Regional Food is here to Stay

One can experiment with their food sometimes but their eating habits do not change.  And, this has given a way to much more of regional Indian cuisine coming into the foreground, coupled with the beauty of modern plating and technique. “As far as traditional north Indian cuisine is concerned, there is not too much room for changing existing tastes which are already wrapped in flavours and aromas, so rich and fragrant,” points Vinod Gulati whose restaurant Gulati’s has created a wave in the north Indian dining restaurant.

Hence, we can say that the dynamism that the industry holds there is a constant change in the trends. Also, health food trends will be a big thing, like they have been in the past few years and rightly so!

Investment scenario in food business has become tougher over the last three years. From being guardian investors to mentoring the brand from the scratch investors today look out for value addition in the brand. It’s not just about the model but overall aspect of the business; how different is the concept, how much are customers liking the brand, what the cash flow is and how much money they can get in return.  It’s not just about raising funding but how you utilise it and maximise that funding.

Breaking the myth

If you are opening a restaurant or a cloud kitchen today you need to understand that you will not be able to raise funds on power point presentation. You really need to show proof of concept which means that you will need to open the restaurant, put the equipment, get the customers in, run it for about 6-8 months and show that you are unit positive before you look for an investor. “Proof of concept has become very important and a positive unit economics. Your idea is really solid, your food concept stands apart in the city, you are able to pull the crowd, you are able to do digital marketing right, and you are able to get your catchment area, operation, sourcing right,” shares Sumit Sinha, Angel Investor, Terrals Holdings adding that there are multiple requirements in food business and each need to be right before you actually go out and see funds. One needs to make sure that they are cash positive before they look out for an outside partner.

“You need approach 30-40 investors before you raise fund. But the important thing is you need to be realistic. The money which is coming into the business should be utilised in the plan that the group has made. You buy everything in credit. You do not hold the inventory and you collect everything on cash,” adds Biju Jose Thomas, Director & COO, Vasudev Adigas Fast Food Pvt. Ltd.  

Food-tech is no more exciting

The food-tech industry has been harsh. There was an uptake in 2015 but since then there is lots of pressure on food-tech companies. In food-tech one need to touch upon 200 investors before they actually get the funding. “Gone are the days when the angel investor would be your guardian investor who has signed your first check because they like you,” points Kailash Nath, Innovation Fellow, Bharat Innovation Fund. Things have changed a lot in early stage ecosystem where angel investors also ask questions. But they really want to look into the outlook that the brand brings into the business. It’s not about quantum of money but how this money would help the brand make a difference in their growth plan and what’s it that they are adding to in the ecosystem.

It’s More Than Just Food

These days the whole market has divided into two segments. One the restaurant or the one who prepares food and delivers it or serves it at a place verses the ancillary business. There is a downside if you are running a cloud kitchen. But a lot of ancillary businesses which are into analytics, servicing these businesses or into the HORECA model which supplies the raw materials to these models are really doing well. And, investment is really picking up. Both angel and VC community is looking favourable at this sector.  “The whole game is about your revenue and the top line and how you are able to sustain it for a longer period and it depends on three factors- your customers, the volumes and the ticket size,” points Anadi Charan Sahu, General Manager & Regional Head, SIDBI, Bengaluru.

According to the Guinness Book of World Records, Botin Restaurant in Madrid in Spain is the world’s oldest operating restaurant. Started in 1725 and famous the world over, even Ernest Hemmingway mentioned the restaurant’s signature dish cochinillo asado (roast suckling pig) in his 1926 novel The Sun Also Rises.

To build a lasting business of that nature, is probably every entrepreneurs dream. While every success story has its own secret ingredient, there are some prevailing global trends that I would advise every budding restaurant owner to think about.

The Consumer is changing and so is the industry: The consumer in India & globally has changed dramatically. Today our dining out and social habits have changed. Dining out is a social activity and is not restricted around standard notions of lunch or dinner. We go out and eat when we want to. And increasingly we don't select our favourite places according to cuisine - most new formats blend and mix a variety of cuisines and dishes that would have been unheard of a few years back.

Back to basics: Whilst there has been a dearth of experimentation in food, cuisines, plating etc – there also has been a fairly ridiculous level of food design for the sake of it. When done without any context or thought- simply for the sake of making the menu look “different” it doesn't work. What works and will always work is a clear back to basics approach- understand your food, your approach and your consumer and build it around them with great service and hospitality and it will always work.

Multi use, scalable formats: An important consideration in any restaurant or f&b design is the understanding that we don't go out just to eat - it’s to work, to conduct meetings, to socialise and so much more. This derives the principle that restaurant design should be multi use, scalable formats that have the ability to change according to the time of the day, and the season. This ensures that in the long run, the format has the potential to remain fresh.

Use Technology effectively: Technology can be a powerful tool to not just create a more efficient system but also an effective way of connecting and building deep knowledge of your customers- for example: a. Cloud based POS systems that harness AI / learning systems to effectively understand what consumers are ordering and therefore get a deeper understanding of your business; b. Wifi systems enable you to get rich consumer data that can be used to create marketing systems that are completely non traditional - for example building localised area based offers for specific consumer groups c. Smart loyalty systems that are non obtrusive and can create a umbrella of inventive and value beyond just the dine in location.

Good design is invisible: When we have a great experience - we remember the experience as one cohesive event. When we have a bad experience that’s when we notice that the service is bad or the food was overcooked. Good design is truly invisible and when it works, it makes for a memorable experience. Over design and design without any thought - whether its the interiors or the cutlery or the food - will always have a short shelf life.

Deliver experiences – delivery: This is an area of enormous opportunity for all f&b formats - regardless of the scale. It allows for the business to reach their consumers homes. Too often a great dish falls flat on its face - literally - when it reaches our homes. The solution - design food around the delivery experience as well. It is here to stay and by ignoring it - you are doing it at your peril. Smarter packaging solutions to specialised delivery menu there are several simple ways in which your business can offer a great experience for your consumers at their home.

Mix Usage by blurring boundaries - retail / events: The last and final note is something that is a global trend across retail, entertainment and even real estate. As consumers change, spending habits change, so do our impulse purchases. As a physical destination, you have numerous opportunities to engage with your audience. IF you've covered all of the 6 above , then extend your brand beyond the traditional boundary of f&B. Retail for instance becomes a natural extension of your brand but can only be successful be deep integration with design and operations and not just by putting up a shelf in the corner to sell produce.

While these seven are in no way an exhaustive guideline, they certainly can be treated as a starting point to think of to make your business ready for the future.

With trends it is setting and the revenue it is generating, restaurant industry no doubt has become one of the happening places to be. Every second person you talk to these days wants to own a restaurant of his own. But before you invest into the restaurant business there are few things and areas that you need to look upon.

Executing Right

In India about 70 thousand crores worth of revenue is coming from restaurants which are having less than three outlets. More than three outlets are 20 thousand crores, “It’s about the lifestyle choice; maybe you are doing something local and unique and hence it is not possible to scale up. So, this type of businesses will not attract institutional capitals. If you want to grow your business in India or take it to the international market in that case your business needs to have portability and sustainability and demonstration of that will what capital provider will look more,” says Rahul Rai, Partner, Rabo Equity Advisor.

The most important thing in the business of restaurant is the execution capability. It’s very easy to talk about great Indian consumer, huge middle class and virgin territory.  But there is a very bad result in this sector with closing down of almost 90% of the outlets in one year and this is all because of the very poor execution. 

Unity in Diversity 

Also, having a great team is very important. This doesn’t require for one restaurant as you could be the chef and owner at the same time. But the moment you expand beyond geographies you need a team which looks into supply chain, quality and food safety issues. And, if you are looking at institutional capital; I would say it would be the number one requirement. People are looking at experts who can execute in a much targeted fashion. “Man power is the critical element in the valuation of a company. And, chefs around the world are recognised for not only their food that they make but also their ability to scale up and how much they will be able to bind and attract talent and have good relation with franchisees. Therefore, the integrity of the management is an integral part of the entire process and it gives greater sustainability to what a private equity or stock market investor look at,” shares Safir R Anand. 

Commenting on the same, Ajit Mathur adds “When we were investing in international brands we saw their approach was very different. Financials were important. Business plan was very important; how will you do, what will be your sales, 5 years from now. There were two three things which attracted me including what was your mission, what is your core value, how will you execute it. If you don’t have talent you are going to go nowhere. The business which is going to scale up they have a clear view and core value.”

As far as scene for the Indian food service goes, Indian restaurant sector is at the tip of an iceberg. There is so much room to grow in every sub-segment.  There is no segment where margin is eroding or the segment is not growing. The entire market cap is three billion dollar. So, there is tremendous headroom for growth. 

Supply chain remains an important issue in the restaurant and food business. Supply is all about meeting the need; from understanding the need to fulfilling the need. And, over the years restaurant and food players are working hard on getting the supplies at the best possible values; sourcing locally to tying up with farmers for the fresh produce and getting them delivered at the proposed time.

“Our mission is to make Coca Cola available at arm’s reached of length. We have process in both warehousing and transportation on delivery of our products across. We do lots of planning in terms of beforehand forecasting on a weekly bucket as well as monthly bucket of estimating the demand; not only in-house demand but also collaborating with modern trade to capture trends on a pack analysis as well as new products and basis that we try and design our supply chain in not only cater to bulk but also manage niche and small product deliveries,” shares Umesh Madhyan, National Head - Infrastructure & Logistics, Hindustan Coca-Cola Beverages Pvt. Ltd which is one of the largest supplier to the food and restaurant businesses in India.

Fresh is the New Selling Point

One critical challenge that restaurants and food businesses are facing these days is that consumers are getting more and more aware and there is lots of awareness which is pushing organisations and supply chain players to meet all the kinds of demand in terms of delivering the freshest ingredients and raw materials in the best possible ways. “Our endeavour is to uncomplicated the backend operations as far as possible. We try to get the insights of the backend operations of restaurant operators and we do a lot of networking with these restaurant operators and try to understand their challenges and need and that’s how we have been able to get very deep inside their backend operations and based on those insights we come up with products.,” says Sumant Vikas, Corporate Chef of Cremica Foods which is working on making the kitchen work easy by coming up with convenience products which eases restaurant operations so that they do not depend a lot on skilled labour which is very hard to come these days. “We are more than willing to customise the products as per their needs as per the minimum volume is met.,” adds Sumant.

Hence, we can say that restaurant and suppliers both are looking at customising the products according to the need of the market and demand set by the consumer. Fresher the product, better for the growth of the restaurant and customer. 

India’s food and service industry is rapidly growing due to the changing demographics, increasing number of well exposed and global travellers, and rise in disposable income. The Indian dining scenario is witnessing a drastic change from suitability of taste to complete dining experience. Customers are now looking for new experiences with satisfaction at par and a long term commitment for quality food.

With the rise of Start-up India, the food service industry has seen a huge number of new entrants with innovations and big ideas. Unfortunately, even with the best of innovative concepts and powerful teams, the failure rate is going up. According to a frequently cited study by Ohio State University on failed restaurants, 60% do not make it past the first year, and 80% go under in five years.

It’s pretty much a given fact that a good restaurant serves good food. The need of the hour is to understand the key factors and challenges which are reposonsible for the deterioration of the success rate of start-up restaurants in the country. Certainly, innovation cannot be ignored but the key ingredients of the growth recipe lies in detailing of every aspect whether it is the quality of food, atmosphere, service or overall experience. A majority of the start-ups and even the established ones in a longer run fails to understand the significance of total guest satisfaction and consistent food quality. This primary objective of a successful restaurant business becomes more critical when you are expanding.

As an avid traveller I have travelled across the world and amazed by the vibrancy of different food cultures across the globe. Every culture has its own story and influence. A lot can be learnt from these cultures. From socialising to gatherings and celebrations, food is the binding force and need to be accompanied with memorable experiences. Today’s Diner Community is well exposed and is not willing to give second chance for impressions. If you are not able to impress them in first go you are out of the game. These first impressions lead to repeat customership which is the life line of the business. Above all the consistency of this impression and the focus to take it to next level with every diner determines the long term success in the restaurant business.

The quality and authenticity of ingredients also plays a vital role in ensuring guest satisfaction. Today people are very concerned and care a lot about what is there in their food and this trend is catching pace across the world. The appetite for dishes with fresh and authentic ingredients is growing. The National Restaurant Association identified “Authentic Ethnic Cuisine” as being in the Top 20 What’s Hot Culinary Forecast. Indian Diners are now appreciating authentic cuisines of different parts of the world. Also the right awareness of your concept and the cuisine you serve has a vital role in establishing the recall. Explaining the food you serve is an essential part of ensuring Guest Satisfaction especially when you claim to offer Authentic Cuisine.

Comfort is another critical factor which makes a restaurant great. Restaurateurs must pay attention to details so as to create a comfortable dining experience matching the culture and cuisine. A lot of focus on staff training and education is required to maintain the satisfaction level of diners. Exposure to the authentic food and culture is an essential part of staff training.

The growing youth population of the country along with other generation diners are ready to dine out and experiment with new culinary experiences. Thanks to the global exposure, digital revolution, disruptive technologies and budding breed of passionate talents that the Restaurant Business in India is presenting a plethora of growth opportunities. The secret key to this Pandora box of opportunities and fascinating business avenues is the focus on Guest Satisfaction. With this one mission and one vision, Restaurateurs in India can make a mark on the global stage assuring higher success index.

Over the years food service brands are providing more specialized and value for money options to the diners driven by the experience at all these restaurants. India as a whole is experiencing a demographic shifts in eating out culture not only in metros but also in tier II and III cities. Consumers these days have become more informative and aware and are constantly looking for new products without compromising on quality and presentation.

“Competition is assuredly tough. We are trying to create a niche’ but there are places opening every second day. That is why I keep saying that one needs to be honest with the product as India is a price sensitive market because if you are not creating a value for money product with stupendous service experience and alluring ambience then you are over,” says Suved Lohia, Partner at Hopscotch - Bar & Brassiere adding that earlier it was about reinventing the restaurant yearly but now it’s about reinventing daily to maintain that upper hand in the market.

Going by the trend, if restaurateurs are less pretentious about food and concentrate more on flavours and taste; they sure are going to stay for long in the market exploring new opportunities and dimensions. At the end of the day, Indians want something fruitful and as long as restaurateurs maintain that flavour, people will keep coming back to them, believes experts. “Market segments keep changing and change is the only thing constant. It’s good that everybody is getting mature in food and beverage industry and they want to innovate something actually amazing to give customer an outstanding experience,” Anit Dang, Partner at Selfie Swag Café.

Flying High

As there is lots of opportunity bludgeoning in the industry with Indian food and beverages growing at a CAGR of 21% per annum, casual dining segment and QSR segment is unfolding lots of success stories in the country. Players like Goli Vadapav, tea cafes like Chaayos and casual dining chains like Social and The Beer Cafe are crossing all boundaries when it comes to excite customers’ taste bud. Restaurants these days are joining hands and entering in joint ventures and franchising partnerships to expand their businesses. “A franchise of a business creates a distinctive hold in the market. It helps in reaching out to more people thus generating a meaningful communication with the customer reach,” shares Pariekshit Madishetty, MD, Grid Logic Hotels and Resorts.

Franchising not only strengthen growth but also helps in establishing a position and maintaining a consistent presence in the fast evolving market. Similarly, if a brand is not performing well but there is another brand in the same segment, merger and acquisition could be a great way to make it a profitable business. 

Over the period of time restaurant industry has become a trend in itself. About 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times)," Assocham Secretary General D S Rawat said.

Restaurant business has always been an industry depending heavily on consumer preferences. It becomes crucial for a restaurateur to understand what a customer of today and tomorrow expects when he goes to eat out. It is a restaurateur’s responsibility to treat customer in the best manner and it starts right from the point he walks in to the restaurant. “In past 18 years, we have seen a huge change in restaurant industry. The first 12 years were the years of smooth selling and suddenly the whole pattern changed because there were millennial and it is a drudgery to impress them. The aspirations were growing up and needs were changing. We realised that whole market has changed and driven by youngsters and of course we also had to reinvent then,” says Anurag Katriar, CEO at DeGustibus Hospitality.

Not only restaurant industry has changed drastically but customers have become smarter. They do not visit a restaurant for food only; they are always up to feel the ambience, the zeal and the service. “If I ask somebody that why are they visiting a restaurant then they might simply say for food. Definitely food is the core and it has to be at par but what is the next thing which brings back the customer. There has to be some novelty factors. That novelty factor came from our tie up with MTV which is one of the greatest entertainment providers. So by having an alliance with MTV, we make sure that we get best of the talents to come over and show their talent in front of the world. We’re not only promoting vocal talent, we are trying to align a bridge for the people who can’t make it to the television and that is how we are providing best of our services to the priceless customer,” says Jasmeet Singh Marwah, Chairman & Managing Director at Funbars Hospitality Private Ltd.

Restaurant’s ambience, customer service and interaction with customers influence customers more and make them believe that the price is worth paying for the experience according to a study. All in all, restaurateurs need to set expectations carefully so that they don’t end up hitting their own head. In all customer experiences, customer management is half the ball game. Restaurants today should be more pretentious about quality and service and of course they can’t forget food. “We are trying to create a niche’ but there are places opening every second day. That is why I keep saying that one needs to be honest with the product and of course one should keep the Indian price sensitive market in mind because if you are not creating a value for money product with stupendous service experience and alluring ambience then you are over. Earlier it was all about reinventing the restaurant yearly but now it’s about reinventing daily to maintain that upper hand in the market,” adds Suved Lohia, Partner at HopScotch Bar & Brasserie.

Customers want something more exciting every time. Nothing less than that is a ‘big No-No’ for them.Things have changed drastically as compared to before. Point is that industry is moving in the direction where people want to feel that overall experience.

Over the years social media has become the largest marketplace for the restaurant industry. Restaurant brands today are more convenient advertising themselves through social connect than putting an advertisement on television or a newspaper ad for that matter. Social media being the mass media connects to larger masses giving much more visibility.

And, since customers are more vocal these days about what they like and what they don’t, it is becoming very difficult for restaurant owners to respond to them. Social media guide the restaurateurs in defining their social media goals and working out a strategy that would work best for their set up. But what seems difficult for the restaurateurs is managing consumers on the social platform. According to experts, as a restaurant owner one need to accept all kind of feedback and reply to it timely. It’s the part of the ecosystem. One can’t get applauds all the time. And, Social media is something you cannot ignore. There are many incidents that is happening these days for eg: recently a man drank liquid nitrogen without knowing that the drink ahs to be taken once smoke dissipates made much noise on social media, some blaming restaurant, fewer the customer who didn’t understand the food and experience.

“It is very important to stay in touch with your customers and look at expanding your customer base. Our most preferred mode of communication has been Social Media as it instantly activates brand recall. We have an in house marketing and social media team that looks after all our outlets, “says Pankaj Gupta, Co-founder of Oye Kake and Cafe Haqq Se of Flavour Pot Foods LLP.

According to The National Restaurant Association’s 2012 Restaurant Industry Forecast, The study also found that social media environment has become cluttered with too many different platforms and restaurant owners’ efforts were frustrated by limited resources and understanding of how to approach social media for their businesses.

“If a restaurant gets negative feedback again and again, there is something wrong with the product”, shares Shuchir Suri, whose three passions include Food, People and Technology, exactly in the order, believes that brands could actually leverage on negative reviews by handling them well and creating goodwill amongst the readers. He also suggested that user generated content is better than restaurateurs creating them and one must leverage on that as it is free of cost.

Many a times people share negative reviews to get free meals and it becomes very difficult to manage it experts believes. However, one has to address it. Like at Impresario Entertainment owned by Riyaaz Amlani, they have a policy where within 24 hrs, they respond to every single comment that is made online. And they take negative reviews to understand what went wrong with the customer’s experience.

Restaurant business of being personal with the customer should be taken online as well. Also, technical angle is important to handle consumer feedback to track down fake and the genuine profiles. One can’t buy social reputation. They will have to build it.

Hence, Social Media cannot give you a tangible return. It is for creating a personal connect. You might have thousands of likes on your page but it does not mean you will have thousands entering your restaurant on a day to day basis. Social media is a way to communicate and when you will sound like a sales person on it, no one will like it, believes experts.

Indian economy is increasingly gaining importance at the global stage and food service sector plays a great role in this. The food industry, which is currently valued at US$ 39.71 billion, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket. The country’s nominal GDP is expected to reach USD 3.6 trillion by 2021 from USD 2.3 trillion in 2016. India’s private final consumption expenditure accounts for 60 per cent of the total GDP and is projected to reach USD 2.4 trillion by 2021, surpassing that of developed economies like U.K, France and Italy.

The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth according to a report by NRAI.

It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020.

India is a foodie country and may be this is a reason that many food brands including the global brands are coming to India. They are innovating different things or even expanding the brands to stand out of the crowd. For example, Cafe’ chain, Chocolate Room looks to raise INR 100 crore to fuel expansion.

"We are looking at raising Rs 100 crore to fund our expansion. We will also use funds in brand marketing. We have already begun talks to raise funds", says Chaitanya Kumar, Co-founder & CMD, The Chocolate Room adding that the Chocolate Room, which reported turnover of INR 100 crore in the previous fiscal, is eyeing up to Rs 300 crore by fiscal 2020." The company is also planning to expand outside India using franchise route. They are looking to raise Rs 100 crore from venture capitalists this year as it eyes doubling its footprint to 500 outlets by 2020. The company is also planning to open stores outside India by next year through franchise route.

We have another example as well, Bengaluru-based food and grocery wholesale marketplace, Jumbotail, has raised $8.5 million in series-A funding led by Kalaari Capital and Nexus Venture Partners. Nexus Venture Partners had earlier invested $2 million in the company.

"About 98% of India’s food and grocery consumption is via kirana stores. We are excited by Jumbotail’s ability to eliminate information asymmetry, aggregate previously unavailable demand-and-supply data, and significantly improve economic outcomes for manufacturers, brands, financial institutions and kirana owners", says Bala Srinivasa, Partner, Kalaari Capital. The company plans to utilise the funds for building technologies and enhance operational capabilities.

Foom, a Bangalore-based startup for drinks has also raised INR 30 lakh in seed funding from a Delhi-based investor. They are planning to invest INR 20 lakh from the funds raised for its subscription-based app.

"We are planning to raise the next round of funds in the next six months and utilise it to expand our operation to all major cities by the end of 2019", adds Lokesh Bevara, Founder & CEO, Foom. The company competes with the likes of Mumbai-based counterparts Raw Pressery, Juicifix and JusDivine, and Delhi-based Antidote.

It shows clearly that investing is the new hype and could raise business in a great manner.

If we look at the investments that have been gone into this industry till date, there are some trends that have changed over the period of time. QSRs are upgrading themselves to casual dining and fine dining is shifting to casual dining format because customers’ preference has changed; they’re enjoying this format and ethnic dining more often than earlier. “A lot of brands are coming to Indian food and beverages market and asking Indian entrepreneurs to be there master franchisee and these are large successful brands,” shares Sriranjan Seshadri, Director, Gaja Capital Partners.

The good thing is that the expectations are shared on day first between franchisee and franchisor. Therefore, the chances of success get high. Also the venture capital ecosystem is going through a substantial shift. Over the last three to four years, a lot of investment has came to India and invested in food technology and in restaurant’s space. Today, master franchisees want to bring global brands to India whether it is in casual dining or QSR format. But the expectations must be decided at the upfront between the parties. The logistics of delivery of food is also considered important in this market. India is one of the largest markets being convenient and ordering food from home. “Restaurant’s core business is making food and creating an experience that is how logistics is the variable cost that they would rather outsource. Therefore, logistics become an important part for the business”, adds Seshadri.

Restaurant industry can bring disruptive change in the existing segment. If it is that then how much passionate one is about his venture? “Passion is a vital factor in restaurant business because that is what defines sustainability and for me sustainability means that one is going to survive for next ten years at least in the industry”, points Pushkar Mishra, Deputy General Manager at Small Industries Development Bank of India [SIDBI], Pune. Also, if the business is sustainable how can one scale it up is the key to drive this buisness. Restaurant industry is gradually changing but restaurateurs need to keep a watch at logistics, kitchen hygiene, service experience etc.

One of the things which investors seek is consolidations and companies which are doing well in CSRs, picking up other brands, additional chains and it’s always one side easy to recognize evaluation and the asset that investor is going to buy. “There has to be very clear disassociation with the brand because what if a brand picks up litigation and liabilities. Then of course investor wants to insulate himself from that complicated process”, says Ashish Alexander, Leader at Nishith Desai Associates. Brand should make sure that they return something to investors to run a successful business. Investor looks for what value a brand is bringing on the table to the end of a consumer and how they are positioning themselves. Also, if they can sell it back to the entrepreneurs or promoters at a pre determined agreed price which have been decided at the upfront. Investors absolutely focus the bottom line of a brand. 

Consumer these days is consuming the brand and not just food. Experience is the new measuring stick of growth when it comes to restaurant business. The end to end experience right from walking in to a restaurant to walking out, every aspect including – aroma, ambience, food, service and last but not the least an everlasting memory, is like a cog in the growth wheel otherwise everybody loves to hog on their couch or in the bed. Dining these days is less transactional and more personal. What is more important is that dining and eating out has to be different in its experience.

With India’s exponential growth, experimentation with cuisines and concepts and frequency of eating out, the F&B sector is expanding at a rapid pace, which is expected to grow to USD 75 billion by 2021, at compound annual growth rate of 10%. Based on the report by consulting firm Grant Thornton India and lobby group Federation of Indian Chambers of Commerce and Industry (FICCI), urbanisation, changing lifestyle and evolving food preferences are further contributing to the growth of the organized sector.

Food Experience

What is a food experience? People generally recognise that food experience involves eating, but it involves lots more innovation- a creative menu, hybrid ingredients and a treat to feast upon. Restaurant Congress 2017 will discuss the topics regarding restaurant and food experience that have made it to the World’s top list and most importantly have discovered a foodlicious experience.

“We believe that if a customer has come back to you it’s because of the positive experience. You will have to consistently deliver as people walk in with high expectation. You will have to upping the brand internally if you are a service driven brand like fine dining. You need to make people smiling on Monday as they are cheering on Saturday,” says Reynold Fernandes, CEO at Oriental Cuisines Pvt Ltd.

Store Experience

It all starts the moment you enter inside a restaurant. From creating an environment that lasts forever to an ambience that shines with the theme of the restaurant and cuisine being served. People today eats out at a restaurant for an everlasting experience and you will have to catch this on Restaurant Congress 2017.

“Over a period of time you need to work in terms of brand. Put out new products, innovate restaurant in terms of how it looks and also try and create more interesting advertising,” points Manish Tandon, CEO at Au Bon Pain.

Tech-Experience

Unwind how top food-tech players are building high on growth. Food combined with tech is the shining star in fast evolving food business today. Innovation+ Experience+ SmartPhone + Digital disruption is making the business more ease and cosy.

Service Experience

Service remains an integral part of the dining out scenario. A service that rocks has always brought good number of footfall to restaurants. Restaurants these days are focusing a lot on the minute details introducing new and innovative service angle into the restaurant business. Restaurant Congress 2017 will spill the beans about some of the top services that changed the food service game in the country.

“For us it is Jo dikhta hai wo bikta hai. We publicise the new item and the product on the menu,” shares Binod Homagai, Co-Founder at Wow! Momo.

Hence, we can say that these days people are no more into just eating out, it’s all about the experience that is counting upon. 

Food in India is as diverse as its culture. From south to west and north to east there is a varied trend when it comes to dining. People in East India love their food to be cooked in their own regional flavours and taste and this continues with the restaurant business and trend in the region. And, same trend continues to grow in restaurant as well. Restaurant industry is one such industry where entrepreneurs know how to take the fun seriously setting up a vibrant food culture. But, today with growing travel and food culture we need to focus on building a food place to a brand. “Menu is the heart of a chef and an organisation,” shares Chef Ramesh Javvaji Director, Culinary Studies- International Academy of Culinary Arts.

Regional cuisines has got much more flare than any international cuisine, the point is it has to be marketed well. There is much more potential for regional cuisine than any other cuisine globally. “North west food, Udupi food, Bengali Food and every other regional food is reaching out to far more people,” says Chef Sushanta Sengupta, Chef and Director, Savourites Group.

When organic is the new green

Globally people are moving towards healthy eating and lifestyle. People are much more aware about what they are eating, what ingredient is being used in the food prepared for them then they were used to be. These days’ customers want to know the calorie they are taking with every meal. And, this has made them more conscious about where their food is coming from. “As a chef we need to support farmers even when we charge little high from people for quality food,” shares Chef Vijay Malhotra, Executive Chef, ITC Sonar adding that seasonality of raw materials should be focus.

Commenting on the same, Chef Vikas Kumar, Executive Chef, Flury’s points, “It is impossible to sustain organic possible for all as people don’t understand the value of original food. Tea drinking is growing in India, upsurge of fresh and cold pressed juice is growing in India.”

There is a constant growth in the food and beverages segment in the western markets where restaurant owners and chefs are looking at ingredients like Indian coconut, garlic and turmeric and are including it in their diet and menu. “Fruits, vegetables based beverages is growing in the market,” adds Chef Sengupta.

"Restaurant owners needs to take small steps. Full-fledged organic is a challenge. They should introduce small section on the menu," points Chef Shaun Kenworthy, Celebrity Chef and Restaurateur.

Hence, with people dining out at almost 30-40% times a week people are looking out at varied food and dining experience.