LAHORE: “Anyone who has money in Pakistan decides to open a restaurant. They don’t consider the market, the location, the run of the mill food and the competition.” These words were shared at Coke Fest ’17 by Asad Sheikh, the renowned foodie and owner of the most active food related group on Facebook, ‘Foodies R Us’.
“You need to have innovation and something different to be able to survive in the restaurant business in Pakistan,” Asad said.
Lahoris are known for their insatiable love for food, enough for several areas in town to become primarily dedicated to catering the taste buds of these food lovers, including both old and new food streets, MM Alam Road, and the newly emerging Johar Town food market. As a result, a plethora of restaurants hit the market every year, many of them dying quick deaths, and even some older ones losing to the new competition and exiting the market.
Coke Fest ’17 allowed an opportunity to both new and old food businesses to present their products to the public. Profit’s enquiries at the event revealed that most of these businesses were a leap of faith, the young ones more passionate with an innovative recipe, the older ones more confident with their existing market, and a few home-based food suppliers operating solely because food market allowed them a channel for solving their financial troubles.
“Keep it Affordable”
Muneeze Khalid
Owner: Churro Churro
We started selling for the first time at Lahore Eat and received a great response. Then in March this year, we decided to go for a proper restaurant. Currently, we are serving at Emporium Mall, Al-Fatah, and all branches of Cinestar. We don’t want a restaurant for now.
But even before the restaurant, I have been in this business for more than 7 years. I have a cooking school by the name of Muneeze Khalid, so I knew the industry and operations beforehand.
The trick to our success is affordability. Nothing on our menu is more than Rs250 so everyone can afford it. The restaurant business is one which is bound to do well if you do your work well. It’s a risk worth taking.
“Constantly update yourself”
Haares Habib
Owner: Daily Deli
Our beginning was a blind shot. We started breaking even from day one. Our model was sort of a canteen in the beginning.
Our reason for success is beef burgers, and when we began, we didn’t have them on our menu. After a year we started experimenting with beef and now our recipe is different from the market. We are serving smash beef burgers that are an American recipe. It has been a good business. When we succeeded with that, we went for a proper outlet.
As a food business, we are operational for the past two years. Our first outlet in Phase 5 got burned down. But it gave us a great response and enough reason to operate in the market as a brand. For now, we are operating from inside a building – Arfa Karim tower and delivered from there.
But we are coming up with another outlet in Johar Town in the next two weeks. Once we started beef burger, then we thought that we can enter the proper market too. For placement decisions, we see where most brands are moving to. The businesses who bring something new have better chance to succeed.
“Sell the people, not the product”
Anila Shehzad
Owner: Prawns and Fish
I have been doing this for four years from home in Canal view housing society. I started this because I was interested in this business and it grew.
Businesses enter blindly because the food industry is going to stay forever. And no matter how many brands enter, there is always a place for them in the industry. Every food product has its market. The success or failure is only determined by finding the right people to market yourself to.
I haven’t yet found any place that suits my product for an outlet but I do have plans to expand once I find it. If someone has done proper research on people and start where there is demand, then their success is guaranteed.
“Train your staff for your target market”
Muhammad Ashraf
Head of Administration: Cold Stone
Menu and staff training are most important elements for a successful restaurant. We have been operating since 2014 and we are targeting the upper strata of society for our product, so the brand has been performing well.
If a brand is doing well on its own, meaning the products are enticing to its target population and the employed staff is trained in serving the customers, competition doesn’t matter. The food industry can allow every brand that enters the market if the product is rightly marketed and rightly served.
“Without experience, nothing will be good enough”
Abdul Ghafoor
Chef: Bombay Chowpatty
Experience matters! Those who enter this market without the know-how are bound to flop. People open restaurants just because they have money and want to waste it. But starting a new product, even if it is different doesn’t pay off well unless you have experience and knowledge of the industry.
I have worked at Park Plaza and Royal Palm before. It is the industry that defines which food and which restaurant is going to succeed and therefore knowing how the market works and having someone experienced on board is the only way to survive in the market.
“Stay in touch with your business, don’t leave it to managers”
Ayesha Ali
Owner: Yeh Ghar ka Hai
I am getting great feedback from here. People are supportive of entrepreneurs. (Pointing to her husband) If my finance minister approves, I will open an outlet too, but for now, I am operating from home.
Restaurants fail because their owners don’t realise the effort that goes into running this business. They just see fun and shine but when it comes to running the operations, they don’t put in the hard work.
The same case is with older restaurants going out of business. When their owners were careful and involved with the business, they were successful, but then they left it to others and flopped. The employees just don’t have the same emotional involvement with the business and they just don’t care.
“It’s one sure shot way to earn from home”
Ghazala Rauf
Owner: Zain’s kitchen
After the death of my husband and son, I was forced to enter the industry to solve my financial troubles. I started this just because I had to. I don’t believe that restaurants fail because they enter blindly.
I believe that competition is rarely a concern for the restaurant business. I started this business and I have kept it hygienic and purely homemade. I don’t have any plans to open an outlet yet because it is doing well from home.
You need to provide good food, and no matter where you are operating, food is something that will find its own market. It is also a great means for women to make a living without needing to go out of the home.
“Success rate is always 50/50. Right communication is the key”
Hamza Asghar
Owner: Loco Tacos
We have been operational for one year. We are ‘Mexican experts’ in Pakistani market and I say that because no one else is serving Mexican food as a speciality. Right now, we have two places operating for taking away but we will soon open an outlet in Gulberg or Defence.
The probability of success in this industry is 50/50. So it’s always worth a shot to start a restaurant business. But the main thing is that the entire industry is better suited to literate people. The communication and marketing are extremely important. Our logo is that we are selling homemade Mexican food. Even salsa recipe is from my mother.
Proper marketing and sending clear messages across is the trick to success in this industry. You can produce the best product but if people don’t know, then you are not going to sell.
“Success requires patience. Innovation will bring it faster”
Amna Shahid
Owner: Mr Waffles
I am doing this since October. I started as part of my entrepreneurship course project for university. I interned in London at Mr Bubble Waffles and that’s where I got this idea.
Biggest mistake to make in this industry is not focusing on innovation. And that not just includes food products, but also marketing and placement. Johnny and Jugnu came with a completely new marketing campaign and that became the reason for their success even before people had tasted their food.
You also have to be patient. Success takes time, and sometimes it comes after failure.
“Be original, bring new cuisines, and start small.”
Asad Sheikh concluded, “I have heard people with money saying that all they need to do is pull chef from Zouk or some other place and my restaurant will be successful. This sort of mindset becomes the reason for their downfall. They only see the fun and glamour but have no idea about the challenges of this industry. I would advise everyone wishing to succeed to keep their originality, bring new cuisines, and start small. It doesn’t have to be a huge restaurant to be successful.”
