Entrepreneur Zorawar Kalra's Massive Restaurants runs 20 self-owned restaurants that include premium ones such as Masala Library and Bowtie. Backed by investors Gaja Capital and Everstone Group, he says the plan for now is to consolidate and survive because the coming months will see reductions and closures.
Kalra also said that his eateries don’t have the bandwidth to deliver or do takeout just yet. “However, once the lockdown ends, we will start a hub and spoke model that will enable cross delivery of cuisines across restaurants. "We are also looking at cloud kitchen concepts but nothing can fully replace walk-in business.” Kalra planned four new restaurants across major metro cities that have are on hold for now.
There will be ongoing speed bumps and resets and at least six months before 80 per cent stability returns to dining, says Sameer Sain Co-founder and CEO of private equity firm the Everstone Group. “It will not be the best restaurants to survive but the best capitalised ones that will do so.” There will have to be aggressive cost cuts, and adaptation and most will not make it. Sain says restaurants in five star hotels will have an advantage because of existent hygiene and quality standards. “High end and QSR outlets will win the battle for survival because of standards that are already in place.”
Ritu Dalmia, co-founder of Riga Food, backed by Max Group Chairman Analjit Singh and runs premium eateries Diva and Cittamanis agrees. That being said, high end restaurants mean high costs.
“Food costs are at least 35 per cent of the outgoing given that ingredients include organic vegetables, truffles, imported cheeses and meats which are mostly perishable,.” She said.
“The other 65 per cent is rentals and staff salaries, all of which are expensive to bear with zero revenue is zero,” Dalmia said, adding that she plans to open a cafe version of Diva in Gurgaon have hit the skids for now.
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