From: nikhil.kamath
The food industry, particularly the restaurant sector, is presented as a demanding yet potentially rewarding field for entrepreneurs. This discussion emphasizes that success hinges on a blend of genuine passion and strategic education, acknowledging the significant challenges of being a chef and restaurant owner [00:00:08]. The show aims to provide a “crash course in restauranting” for aspiring entrepreneurs [00:00:15].
The Role of Passion
Passion is highlighted as a critical ingredient for enduring success in the demanding food industry.
Early Inspirations and Sustained Drive
Puja, a successful pastry chef, began baking at age six, finding beauty in simple ingredients and experiencing joy when others enjoyed her creations [00:01:52], [00:03:52]. Despite initial plans to study law due to societal perceptions of the F&B world for girls, she decided to pursue her dream of owning a cafe [00:04:15]. Her entrepreneurial drive stemmed from observing her father build his business from scratch [00:02:55].
Riyaz’s personal motivations for working in the food industry were deeply rooted in his father, Jiggs Kalra’s, passion for food [00:23:48]. His father was a journalist who became a food writer and historian, devoting his life to documenting and elevating Indian cuisine on the global palate [00:25:08], [00:28:12]. Riyaz feels a responsibility to continue this mission, aiming to make Indian restaurants a top dining destination worldwide [00:28:20].
Passion as a “Secret Sauce”
Passion is considered the “secret sauce” for success, where one would do something for free and then figure out how to monetize it [01:06:03]. It’s described as “genuine madness,” an itch that needs to be scratched [01:06:15]. However, even with immense passion, the journey is filled with “ups and downs,” and a “constantly conflicted conscience” due to the hard work and challenges [01:06:22].
The Role of Education
Formal education and continuous learning play a role in building a successful career in the food industry.
Culinary and Hospitality Education
Puja studied Hospitality in Switzerland for four years and then culinary school in Paris for a year, focusing on French pâtisserie [00:03:08], [00:08:02]. While international degrees are seen as beneficial for selection, they don’t necessarily guarantee significantly higher pay in established hotel structures [00:07:03]. Notably, 50-60% of hospitality school graduates don’t remain in the industry, and many pastry school graduates also leave, often due to the demanding nature and lower pay compared to other professions [00:06:17].
Riyaz pursued an MBA in Information Systems to acquire the knowledge and know-how to run a business at scale, specifically with the intent of returning to the restaurant business [00:34:17].
Learning and Adaptability
While formal education may not always translate directly to higher salaries in the industry, the knowledge gained is crucial. Riyaz emphasizes the importance of learning from experienced figures, especially when building on an inherited legacy [00:33:21].
For staffing, conventional hospitality education is not highly valued for general staff, with a preference for individuals who enjoy serving others [03:03:12]. Instead, emphasis is placed on robust training programs and defining clear career paths to retain talent, offering both financial and stature growth [03:03:00], [03:08:37].
Challenges in the Food Industry
The food industry is characterized by its high-risk nature and intense competition.
High Failure Rates
The restaurant business has one of the highest mortality rates globally [01:13:16]. Around 90% of restaurants fail within the first year, and about 96% within 18 months [01:03:16]. The primary reason for failure is often under-capitalization, where owners have funds to build but don’t plan for the gestation period, leading to compromises in quality [01:03:32].
The restaurant business is described as a “passion play” rather than a 9-to-5 job; it’s a “lifestyle choice” that demands dedication beyond viewing it as an extension of a drawing room [01:03:54]. Many enter for glamour, networking, or to fulfill a childhood dream, rather than genuine passion [01:04:27].
Licensing and Regulations
India’s food industry faces significant regulatory hurdles, with businesses requiring numerous licenses [00:39:45]. Historically, 36 licenses were required, which has been reduced to 32 after years of struggle [00:41:59]. The need for police permission to sell a sandwich or character certificates for a beer license is criticized as unnecessary layers adding to cost and bureaucracy [00:39:50]. The industry believes only three licenses should be sufficient: tax, health, and safety [00:41:34]. Restaurants are often treated as “rich man’s indulgence” rather than crucial infrastructure providers that foster community and culture [00:43:02].
The restaurant industry is the second-highest employer of human capital in India after agriculture, directly employing 10 million people and growing annually at 21% [00:41:08]. Despite this, regulations often dissuade entry rather than support growth [00:41:26].
Gender Disparity in Ownership
Despite women historically excelling in cooking and multitasking, their participation in restaurant ownership remains “abysmally low” [00:18:00]. This is attributed to cultural factors, long hours, and the tough, male-dominated nature of professional kitchens [00:18:40]. However, there’s a positive shift, with more women now heading hot kitchens and becoming mixologists [00:19:24]. Female chefs are recognized for their finesse, empathetic nature, and detail-oriented management [00:20:02].