The Eatopians : The food entrepreneurs who are betting big on India
At 160 million people, India's middle class is larger than the total population of the United Kingdom, France, Sri Lanka, Singapore and Australia put together. As the middle class prospered in the past decade or so, it has single-handedly penned the script of India's evolving consumption story. Thanks to these 160 million mouths, India is in the midst of a gastronomic revolution. Indians are willing to experiment and spend more on eating out than ever before. The "eating out" market in India is valued at Rs 33,000 crore and is growing at 10% annually, says Saloni Nangia of Technopak Advisors, a retail consultancy. Bulk of this goes to the mom-and-pop shops, the roadside eateries and the paani puriwallahs. However, the organised sector is worth about Rs 8,000 crore and is growing at a faster clip (20-25%), says Nangia. So who are these organised players? Like Indian cuisine itself, the entrepreneurs who sell them come in all flavours. Some like Hari Bhartia, Ajay Kaul, Jai Singh, Vikram Bakshi, Virag Joshi have brought international brands like McDonald's,Domino's, KFC India.
Then, there are the home-grown entrepreneurs who have created brands in the country. Anjan Chatterjee's Rs 200-crore Speciality Restaurants took Bengali and Chinese cuisines across Indian metros. Cafe Coffee Day took the cafe culture across India. CCD, as it is popularly known, has 2,500 cafes across 150 cities. It plans to add 250 cafes this year alone besides adding more variety to its food menu, says A Venu Madhav, COO, Cafe Coffee Day. Mumbai-based Mirah Grouphas made a series of quick-fire acquisitions in the past few years and now sells everything from dhoklas to donuts. What's also interesting is that most of the entrepreneurs are in their 30s and their businesses just a decade old. In some ways, they have grown their businesses, piggybacking on India's consumption boom. But it's not an easy business to be in. Costly real estate, inflation and an inherently demanding and fickle business make it tough going. Explore here Chinese restaurants in Delhi.
"The restaurant business has a high mortality, especially in the fine- and casual-dining segment," says Nangia. Funding is also not easy to come by for start-up ventures. The entrepreneurs themselves say venture capitalists (VCs) are beginning to understand the dynamics of the business. "VCs typically have a five-to-seven year horizon. The real pot of gold in the restaurant business in India is 10-12 years down the line. If you stay invested in the top 10-15 F&B players, you will make some serious money," says Riyaaz Amlani, founder of the Mocha chain of cafes.ET takes a look at some of these home-grown entrepreneurs who have built their brands from scratch.
Source "economictimes".
Then, there are the home-grown entrepreneurs who have created brands in the country. Anjan Chatterjee's Rs 200-crore Speciality Restaurants took Bengali and Chinese cuisines across Indian metros. Cafe Coffee Day took the cafe culture across India. CCD, as it is popularly known, has 2,500 cafes across 150 cities. It plans to add 250 cafes this year alone besides adding more variety to its food menu, says A Venu Madhav, COO, Cafe Coffee Day. Mumbai-based Mirah Grouphas made a series of quick-fire acquisitions in the past few years and now sells everything from dhoklas to donuts. What's also interesting is that most of the entrepreneurs are in their 30s and their businesses just a decade old. In some ways, they have grown their businesses, piggybacking on India's consumption boom. But it's not an easy business to be in. Costly real estate, inflation and an inherently demanding and fickle business make it tough going. Explore here Chinese restaurants in Delhi.
"The restaurant business has a high mortality, especially in the fine- and casual-dining segment," says Nangia. Funding is also not easy to come by for start-up ventures. The entrepreneurs themselves say venture capitalists (VCs) are beginning to understand the dynamics of the business. "VCs typically have a five-to-seven year horizon. The real pot of gold in the restaurant business in India is 10-12 years down the line. If you stay invested in the top 10-15 F&B players, you will make some serious money," says Riyaaz Amlani, founder of the Mocha chain of cafes.ET takes a look at some of these home-grown entrepreneurs who have built their brands from scratch.
Source "economictimes".
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