Thread by @ChitrakarSanam

So here goes my thread on eatery businesses in Nepal! I base my observations by three exposures:
1. as a foodie, food critique, and recipe developer
2. former restaurant operator (not just a restauranteur)
3. market researcher for a wide array of clients! 1/n

In the majority of cases, an eatery's logical existence is from the founders' bad experiences with other establishments or the opportunities in a specific location.

However, many also start as an eatery as their hangout place! 2/n

Interestingly, the founders do not start a place that is below their par in terms of interior or comfort.

For eg. an urban youth rarely starts a place where s/he does not feel comfortable hanging out. Status wins here!
3/n

Founders' food knowledge is where the problem starts from.

Remember, foodie vs. being able to articulate and able to give constructive feedback on food preparations are different skillsets. Defining food "superficially" spicy/salty/greasy etc. does not help businesses! 4/n

Founders' high confidence in their network hurts a business too.

Knowing many people (network-A) vs. them being able to pay (repeatedly) are different things.

Network A is the one who piles credit bills!
Those eateries seemingly do well who bring network-B, C and so no! 5/n

The eatery is generally an operations-heavy business. The amount of preparation that goes in the kitchen is huge! This is something that many clients (who potentially may end up opening an eatery) do not see! 6/n

Founders are careful not to increase fixed costs (HR primarily) which hurt their food quality and services (ref: 4/n) fearing potential loss.

The whole cycle invites a vicious cycle; low pay=low skilled HR=bad food/service.

7/n

"Instagram material" decors/food doesn't help either. This is where I see many clients complaining about food (mostly). Shows how food and services are important no matter how your outlet looks.

Plain and simple! 8/n

CAPEX on interiors and less on revenue-generating expenses like HR, good workable/breathable kitchen are some of the lines that people don't really pay attention to.

I have seen cases of founders spending 95% of their CAPEX in interiors but not the kitchen. 9/n

Founders rarely (stressing again) work in the frontline as workers. In the course, they get disconnected with the clients that they don't know and rely heavily on the small sample of their immediate network and opt to change accordingly. Again, a mistake!

10/n

I also know very less restauranteurs who know their food, indirect and direct cost. They somehow stress more on the fixed cost and nobody wants to take a huge fixed cost that piles up if something goes wrong (COVID19, for eg.)

11/n

I consider social media as ATL because very few establishments are using STP to establish their brands.

Primarily, our establishment is for all doesn't work! Every eatery has a very specific character no matter what! family, casual hangout, age-specific and so forth!

12/n

So imagine, how COVID19 has impacted these businesses. Because their systems are not in place, they are more vulnerable!

13/n

So as to conclude, here are some critical success factors:
1. founders' food knowledge is extremely important yet just having this doesn't help. you need to be an allrounder (individually or as a team)
2. Work on the brand building
3. Do not rely much on close networks!

I limited myself not mentioning about the cuisine because it is a different debate.