Busting the Five Favourite Myths of the Foodpreneur

A few days ago I read an interesting old article on Business Insider about how long ‘overnight successes’ really take. For example, it took Steve Jobs a couple of decades to become the tech ‘overnight success’. And it’s true. Twenty years ago, journalists, bloggers and people alike rarely talked about him but as soon as the iPod took off, he was an ‘overnight success’.

While the same could be said for any sector of business, being a food-preneur this is something that I could really relate to. Here, surviving six months is not the challenge. Staying open and alive for 999 days is. Having recently reset the clock on my business (I finally moved into Bawi Bride full time in March and somehow doing this full time now makes it seem even more real, not that it wasn’t earlier!), I was super excited to have the opportunity to attend the TiE Food Camp held earlier this month.

Learning about survival from some of the biggest names in the food industry in Mumbai was really a privilege. But, what was even better was busting my five favourite myths that I am always tempted to believe in. Trust me, its changed the way I do business at Bawi Bride!

Myth # 1: No matter what I cook, everyone will come eat at my restaurant

Most people at some point in their life have gone somewhere or eaten a meal somewhere and decided that they will own a restaurant at xyz age and/or when they retire. But, how many food-preneurs really do some market research about their concept. Yes, we have a vegetarian Burmese restaurant but does that mean someone could now go and open up a Jain Parsi restaurant and it would succeed? Maybe it could. But how many of us actually crunch the numbers first before embarking on our so-called dream venture?

Myth # 2: Business plans are only for tech startups

How many restaurants or catering companies actually get funded? In this world that is moving online, food startups tend to still be the ones with a foot firmly in the brick and mortar world. So, if we’re not getting funded what’s the need for a business plan right? I mean, I have to focus on churning out the food not a 60-page business plan surely? Wrong! All of us need targets and it’s especially important for food startups where menus, chefs and food trends change the way the seasons do.

Your business plan need not be a bible – mine has about 6 bullets. But, it important to write down what you want to achieve in 3 months and work backwards from there. Once its written you need to read it everyday – will this new menu design help me double my revenue? If not, scrap it from your to-do list and focus on the big goals.

Myth # 3: Others may have problems but getting MY licences will be a breeze

We are all trained to always be optimistic – especially entrepreneurs. Which is why no matter how much we hear about project budgets going in the red due to licences, we believe that the same won’t be the case for us. Sadly, this is the biggest lie we can tell ourselves.

Many foodpreneurs either have no licences at all or are completely over-licensed. Which is why, even though it may seem unnecessary it’s important to consult a lawyer or expert and ensure you have the right documents and necessary requirements in your premises before you start your rental so that budget overspends can be minimised. The TiE Food Camp hosted an entire half-day session on this topic and if for nothing else, just go for this session – its invaluable!

Myth # 4: I don’t have time to work out my food cost

I have not yet met a single food-preneur who gets excited at the thought of setting up their food costing protocols. Working out food cost – especially for startups that have 50+ dishes in their menus – is a tedious job but it simply has to be done. Working this out gives you the piece of mind that selling a dish at a particular price is feasible for your business and helps guide you when planning marketing giveaways for customers.  And, don’t try to procrastinate by saying you can only do this once you have an inventory management system – Microsoft Excel works just fine!

A pro tip when it comes to calculating food cost? Don’t forget to work in ‘yield’ – i.e. the unfortunate magic that makes 1 kg of kheema shrink to 800 gm once you’ve washed and strained it!

Myth # 5: Social media doesn’t really bring in the money

“Social media is like sex. Everyone is talking about it. Everyone thinks the others are pro’s at it. But no one is actually doing it.” I can’t stake claim to this brilliant analogy made by Anaggh of 1+99 Consulting but it’s absolutely true – especially so for Chef-led food startups, who are naturally more inclined to concentrate their energies in the kitchen.

Social media is here to stay and the faster brick and mortar restaurants embrace this truth the better. Yes, you need to be on all the major platforms. Yes, it is may seem like a time-consuming activity. But, it does bring in revenue and is not something that can be outsourced to an intern. Having built the customer base for Bawi Bride entirely through social media and through my blog as well as content writing for external sites, this is one lie that I busted a long time ago.

To bust more such myths, consider attending the next TiE Food Camp or even one of the events organized by The TiE Food Network – they have something on every month!