Why open a restaurant, and sink money? Donate it for a better cause
What to consider while opening a restaurant
Most of the people I meet these days nurture a ‘restaurateur’ within them. Some think that their wife is a great cook; some believe that since most of their friends eat out so opening a restaurant is a safe bet, and it’s easy to make those pot bellied chaps pay more. Plus, for any Tom, Dick and Harry, opening a restaurant is the easiest recipe to become a page 3 celebrity.
As a consumer, I love experimenting with new places but it hurts when I dine at places, which tag themselves as a fine dine, but end up being a ‘loser’ financially, and quality wise not even close to a dhaba. As I write this article, I remember our first issue and first feature when I met the great Mr Jiggs Kalra. He said, “Food is the only component, which can make a restaurant succeed in the long run." Absolutely true.
Be it AD Singh, Riyaz Amlani, Anjan Chatterjee, Rahul Akeraker or Monish Gujral, what’s worth noticing, or rather following, about these great restaurateurs is that whatever format or price point they operate in, the food is always of high standards and is an important part of the research and development.
Yes, I do agree that a good ambiance is equally important and adds to the sales but why do we forget the streets of old Delhi or the famous vadapav of Mumbai where most of the vendors sell as much as they make every day with zero marketing or advertising. I remember on a trip to Pune, I visited Kayani Bakery to buy their signature products, mawa cake and Shrewsbury biscuits. No fancy ambiance but a long queue of atleast a hundred people who know that if you eat their cakes and cookies once, you wouldn’t mind standing in line the next time. Food is such a powerful tool if done well consumers would find you in the remotest possible corner of Earth and make sure you are sold out. Restaurants are the business with highest mortality rate across the world. Infact, in New York more than 90 per cent of restaurants shutdown within the first year of operations.
Having the advantage of interacting with some of the best restaurateurs, I would like to make the following recommendations.
1. Every restaurant should’ve a well researched and distinct concept, which you can spell out in a single line.
2. Calculate returns on investment before making investments. For example, discounting your food may increase the sales but in long term, it may hamper your growth. However, a discount on lean days is a wise decision.
3. Capitalise on latest technologies and innovations. They would add value to the business.
4. Make sure that your workforce is in tune with latest developments and they share your values and objectives. This can only be done if you create a positive work culture.
6. Let there be no room of ambiguity while forming policies. But be open to necessary changes.
7. Focus on your costs and limit them. However, don’t compromise on quality.
8. There’s should be a single point of focus, and everyone should work around it.
9. Don’t over exert with the project. Give time to your personal well-being too.
10. Choose your location very carefully with a lot of research. Just like an expensive location, every cheap location is not a good location.
2. Calculate returns on investment before making investments. For example, discounting your food may increase the sales but in long term, it may hamper your growth. However, a discount on lean days is a wise decision.
3. Capitalise on latest technologies and innovations. They would add value to the business.
4. Make sure that your workforce is in tune with latest developments and they share your values and objectives. This can only be done if you create a positive work culture.
6. Let there be no room of ambiguity while forming policies. But be open to necessary changes.
7. Focus on your costs and limit them. However, don’t compromise on quality.
8. There’s should be a single point of focus, and everyone should work around it.
9. Don’t over exert with the project. Give time to your personal well-being too.
10. Choose your location very carefully with a lot of research. Just like an expensive location, every cheap location is not a good location.
SUMIT GOYAL