Start-up Island. Serving it up and keeping it coming

For a while now, ‘concept’ has ruled in the Indian food and beverage (F&B) space. For decades, Indian fast food, regional and international specialty cuisines and, more recently, microbrewery or gastropub formats seem to work in various urban centres. But this is an industry that sees many entrants shutting shop or being unable to maintain quality that attracts loyal patrons time after time. It’s helpful to look closely at those who have succeeded.

Start-up Island discusses food and dining once again, having earlier looked at the concepts behind Faasos, Under the Mango Tree, and the successes of JustEat.in and Rasa. And now, there’s the ‘Asian café’ promoted by Rahul Khanna and Kabir Suri, Directors of Azure Hospitality.

If you’re thinking Chinese food then not too many cafés offer exactly that on an all-day basis. That’s got something to do with our love for ‘Indian Chinese’ and being unable to connect it perceptually with the relaxed ambience of a coffee shop.

But when a large percentage of gastronomically adventurous urban India wants quality at a great price, what seems to work best is something between fast food and fine dining segments.

And then to be innovative within that space. Khanna and Suri began Mamagoto to exemplify the possibilities of the ‘Asian café’. A mix of Chinese, Thai and Japanese offerings along with some Burmese, Malay and Indonesian dishes served up at Mamagoto has found takers across all ages.

“My business partner lived in America and I in Europe for a decade. When we returned we noticed that in India, although there were a good number of cafés, nearly all of them were serving similar food. And the Asian food available was either expensive or of the cheap kind served at ‘Indian Chinese’ restaurants. So we decided to start an Asian café. We’re open throughout the day, the atmosphere is casual, relaxed and fun space,” Khanna says. While the restaurant segment in India is booming, it’s always a question of longevity and survival. And not every player survives for well-known reasons. Unfortunately, the promise of “authentic” ingredients and cuisines also isn’t enough to draw people to try international fare.

Unless we’re talking of the QSR segment. India Brand Equity Foundation reports, “The branded quick service restaurant (QSR) market in India, which has attracted international brands such as McDonald’s, Subway, Nando’s, Domino’s and KFC currently stands at $13 billion and is set to get bigger with new emerging players.” Khanna and Suri have tried their hands at the QSR format with Rollmaal and Speedy Chow in New Delhi. However, a significant amount of entrepreneurial activity in the restaurant sector in India is about ‘what’s new’. The sector is set to touch nearly $80 billion in India before the end of the decade. But the temptation to do much in a bid to stand out often turns out self-defeating. Scaling up slowly powered by consistent performance on promises made makes more sense.

Khanna and his partner kickstarted the venture in 2010 in New Delhi and then expanded to Gurgaon, Mumbai and recently Bangalore. Mamagoto now reports that its typical breakeven period is 6-7 months with a minimum of 10-15 per cent growth year on year across all its outlets.

Mamagoto has a permanent menu and has not taken the staid route of buffet or happy hours to maximise returns. “These are healthy indications for us; 60 per cent of our clientele are regular customers,” shares Khanna.

Khanna believes Mamagoto champions the idea of “taking the food seriously but not yourself”. As entrepreneurs though, Khanna and Suri have managed serious business consistently with their Asian café.

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