The Hindu Business Line : Think positively

Business is about risk-taking, unlike as in employment, differentiates Mr M. Mahadevan, Director, Oriental Cuisines Pvt. Ltd, Chennai ( www.orientalgroup.in), when reflecting on how he gave up his college teaching job and become an entrepreneur in the food industry. “What made me an entrepreneur?” he asks rhetorically, and answers: “Some people say greed. I’d say ambition. To reach…”

Speaking at the fifth edition of monthly breakfast meetings called ‘Meet Success First Hand’ organised by the Indo-American Chamber of Commerce, Chennai, Mr Mahadevan highlighted how it was focus that helped his brand ‘Hot Breads’ achieve success in a high-mortality industry like restaurants. “Seventy per cent pack up in the first year, and 12-18 per cent close in the second year. If you survive the third year, you’d go on. Which is why banks consider it suicidal to lend to the industry.”

An advantage in the industry, however, is that sales are on cash while payments are on credit — ‘after 90 days in Dubai, and after 30 days in Chennai’ — he says. His first unit in Chennai was near the Institute of Chartered Accountants of India office on Nungambakkam High Road, started with Rs 60,000 as investment, and four people. Now, the group, with about 100 outlets all over the world, has crossed a turnover of Rs 45 crore in India employing 800 people, and the global numbers are almost three times as much. “I scouted for Chinese cooks,” reminisces Mr Mahadevan. “Because, according to my homework, which I do for all projects, Indians love Chinese food. Every 5-star hotel has an Indian restaurant and then a Chinese one.”

His research and homework continue, even as he keeps adding value to Oriental Cuisines’ portfolio comprising Benjarong, Copper Chimney, Cream Centre, Ente Keralam, China Town, The French Loaf, Maple Leaf, Planet Yumm, The Noodle House, Oriental Inn, Qwikys Coffee, Wang’s Kitchen, Zara Tapas Bar and more.

“Being a post-graduate in accounting, I always look at costs,” Mr Mahadevan answers, when taking on a poser from the audience on how the products are priced. “Though price at a shop, say, one that caters to students as in Loyola College, may be pegged lower than in a regular shop, there is no compromise on the quality of ingredients used,” he avers.

Any restaurant he opens considers two points, explains Mr Mahadevan: “One, what is my neighbour charging, so that I should price below that or at least be on a par with that. And two, what is my cost? We work on a 40-50 per cent margin, to take care of the overheads.”

What can make anybody a successful entrepreneur are these minimum qualities, he outlines, after describing himself as an average IQ person, a backbencher: “You don’t need very high skills. What you need is focus to make your plan work. And never let go.” Also, think positively, Mr Mahadevan urges wannabe entrepreneurs. “Nothing is given to you on a platter. And there can be reversals,” he cautions, narrating how he had to close his Dubai shop, in the 1990s, because of parking problem. And yet, thinking positively and keen on making his concept work, he decided to shift to another place, which now yields one of the highest returns.

D. MURALI

(Illustration by R. Rajesh)