Thomas stresses the importance of maintaining the core strength of the product while keeping the existing customers happy.
The Food Services sector is expected to generate direct employment to 8.5-9 million people by the year financial year 2021. Indirect employment is expected to see a growth of six per cent till 2021.
Indian Food Services market in India (organized and unorganized) is estimated at INR 3,37,500 crore in 2017 and is projected to grow at a CAGR of 10% over the next 5 years to reach INR 5,52,000 crore by 2022. Two mega metros, Mumbai and Delhi NCR contribute to 22% of the overall Food Services market (11% each) followed by six mini metros (Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata) comprising of 20% share in the Food Services market.
In conversation with Franchise India at the IRC 2018, Biju Thomas, CFO & COO, Vasudev Adigas shares his experience when he started his first venture.
Thomas said, “We are basically a South Indian restaurant, but we do also serve Chinese, Italian and North Indian cuisines. Just that they are primarily vegetarian. Primarily ensuring the customer service and maintaining the consistency was a major challenge as we produce fresh food without any added preservatives.”
Advice for the Food-Preneurs Looking to Expand
The current generation is growing restless and they want the results instantly, however, businesses do not work that way. For a business to last long and enjoy successful years, one has to be persistent, hardworking and maintaining the quality of food they serve.
Thomas says, “It’s a business where the value addition in the place is very high and you get to interact with the customers on a daily basis. So if someone is willing to start their own venture I would advise them to put their applied model to test before deciding on expansion. Also keep in mind that it’s a business where a lot of involvement, customer service, and consistency is required.”
Maintaining Core Strength
Thomas stresses the importance of maintaining the core strength of the product while keeping the existing customers happy. He believes if the customer comes back to you for the same food he or she had months back and get the same taste, there is nothing like it.
He says, “Our strength is repeat customers due to our consistent performance. We also maintain the quality of the customer service at the same level.”