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Food, drinks, brands: Bangalore Business Literature Festival features authors on the F&B industry >
by Madanmohan Rao [August 29, 2024]
The tenth edition of the Bangalore Business Literature Festival is kicking off on September 14 at Catholic Club. The day-long event on Saturday features a range of fireside chats involving prominent authors, CEOs, startup founders, and thought leaders.
Themes addressed this year include digital transformation, startup journeys, career planning, industry leadership, investigative research, corporate governance, urban habitat, and environmental sustainability.
As network partner for BBLF 2024, MXR.world is delighted to present insights on the world of books and business by some of the outstanding experts.
In addition to food for thought, we begin this preview article series with insights from two leading authors in the food and drinks business: Ravi Wazir (Beyond the Menu - A Restaurant Start-up Guide) and Sriram Devatha (The Great Churn: The Global Story of India’s First Single Malt).
Industry Trends
“India's economy has been doing quite well of late and with the overall bullish market sentiment, the consumption of many things in India are up. Eating out at restaurants is one of them,” Ravi Wazir observes.
Restaurant-goers are looking for new experiences, not just with new cuisines and new styles of service. “Consumers also view restaurants as spaces for cultural, business and social connect. Restaurants all over the world are hubs of culture which unite communities since eating with people is often a bonding experience and brings society closer together,” he adds.
“Multiple trends have converged towards premiumisation in the alco-bev industry. The rise in luxury products reflects the rise in disposable incomes in India and India's growing youth population,” Sriram Devatha explains.
Other allied factors include reducing margins in the mass segments thanks to the overleveraged excise tax. “Brands are actively looking to move up the value chain,” he adds.
Building Global Brands
Indian food is well known and enjoyed in countries around the world, and new alcohol brands like Amrut have also begun their global journeys.
“Thanks to the work of pioneer brands like Amrut, it is much easier for new brands to go global since the world is willing to look at India for high-quality alcoholic beverages,” Sriram observes.
However, challenges remain in regulatory hurdles and understanding cultural preferences. “Selling to the US is like selling to 50 different countries – each state has its own regulations and favourites,” he adds.
For example, the biggest challenge for Amrut was acceptance. “Having no precedent, Amrut worked really hard to win initial believers, be they customers or distributors. Moreover, Amrut improvised and solved massive problems like regulations and also produced innovations, all while remaining true to the brand. Above all else, it had compelling storytelling,” Sriram explains.
Building a truly global restaurant brand from India calls for a menu consisting of dishes that are already popular or can be made popular in the international destination, according to Ravi. “It is key to have a deep understanding of each international destination's cultural and sensory preferences, an international standard of service, systems and technology, and the emotional and financial ability to build and nurture a brand with a 100-year ambition,” he affirms.
Regulatory Reform
Both authors call for broader change in India’s regulations and infrastructure for the F&B sector, and more sustained action by industry lobbies and enthusiastic consumers.
“India's constitution puts alcohol regulations in the state subject and in fact tax on alcohol is one the biggest earners for states. This has created multiple challenges for alcohol brands in terms of compliance, design and logistics,” Sriram observes.
Label requirements on bottles vary from state to state. “If states can follow similar guidelines or – even better – agree on one, that would help brands standardise products and maintain quality across the country,” he suggests.
Further, logistics costs in India are very high. “Better connectivity will help brands supply to multiple states with a single distillery, rather than set up plants in each state,” Sriram adds.
“Lastly, the true gamechanger is the export market. India has a lot of room to export to different countries. But its share by some estimates is less than 1% of the global alcohol market, which leaves a lot of room for growth,” he affirms.
Ravi suggests that the food services sector should be recognised by the government as an industry of scale and be given its own Ministry of Food Services. “The food services sector contributes sizably to our economy. As per a report by the National Restaurant Association of India, the sector’s market size is Rs 5,60,487 crores and contributes 1.9% of India's GDP as well as 2.1% of India's workforce,” he adds.
Restaurant license processes should be simplified and uniformly applicable across the country. “All restaurants, regardless of their scale or price points, should be allowed to claim ITC (Input Tax Credit) on GST,” Ravi explains.
Many industry associations have already pitched such facts and figures to government bodies. “I believe the challenge is not just in proving these numbers to government bodies, but in the perception of our decision-making government officials, who view the sector as one that is elitist and of luxury,” he affirms.
“What I'd love government officials to reflect on is the reality that all restaurants are cultural hubs that churn the economy, pay taxes in some form or the other, and bring a large number of jobs to many common citizens – whether they are small scrappy restaurants or five-star hotels,” Ravi says.
“Restaurants in India, irrespective of cuisine or price-point, are the representation of the food and hospitality culture in our country,” he adds. They are a source of pride just like art forms such as music, dance, sports, or literature. Restaurant concepts are shaped not just by restaurateurs but also the people of India.
Entrepreneur Tips
Cuisine, beverages, food-tech, nutrition, and health are witness to sustained entrepreneurship by a range of Indian founders. The authors offer a wealth of tips to aspiring entrepreneurs in this space.
“Many things have to come together for building a successful brand. Aspiring entrepreneurs in India looking to create global beverage brands should focus on leveraging India's rich cultural heritage and diverse flavors to craft a unique value proposition,” Sriram suggests.
They must prioritise quality, innovation, and sustainability to stand out in the global market. “Founders should invest in strong branding and storytelling to connect with international audiences. Strategic partnerships, understanding global regulatory standards, and using digital marketing effectively are also important to scale the brand internationally,” he adds.
“Many new restaurants seem exciting when they start. They may be patronised well initially, but most do not survive the test of time. Restaurants should strive to reinvent themselves and remain relevant over decades, not just five years,” Ravi recommends.
Many ‘foodpreneurs’ tend to venture into traditional Indian food, fusion or other categories of cuisine. The ‘traditional food’ route calls for meticulous attention to freshness, methods of cooking, types of utensils, and source of ingredients, Ravi advises.
“Besides food, each element of the service and ambience will also have to be thought through,” he adds. This includes the colour palette, uniforms, and even tech savviness of the restaurant,” he adds.
Ultimately, consumers should be treated with a great experience that delights all their five senses. “Only after we launch will our customers vote with their wallets to let us know whether or not our value proposition resonates with them, and to what extent,” Ravi signs off.