When you start a restaurant business on your own, you have to manage everything from scratch.
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.
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.
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.
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.
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.
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