Restaurants: Gone in 60 days

What explains restaurants closing down in 60 days from opening, in Kochi?

A restaurant should offer two things - hygiene and quality food - to stay in business. But cost of running and price of food is what that decides the viability of restaurant as a business.

Now, if we ponder about it, most of them that got closed tick the first two items. Where they have gone wrong is in their cost and price.

First let us deal price. Any one would love to get a tea for three rupees. But it is not on offer in Kochi, where the price would range from 5 to 500! I am talking about restaurants only. Why the difference? Any tea in the price range will be of quality and, made & served at a hygiene place. Yes, tea could be made better. Which explains them priced between 10 to 30. Beyond that, we are not paying for tea. We are paying for ambience, service, exclusivity, parking, family friendly and as rent for the real estate that we occupy. The last point explains pricing at modern cafes and high streets.

Cost is where the deal is. Here is where a restaurant business is similar to airline business. Cost of preparing a tea or flying a person is the same. How it is served is only the difference. Thus costing of how and where this tea is provided, matters.

Most of the restaurants close down because they don't get their cost and price right. Getting this right is a tough job.

Foot note: One thing that is common to most successful restaurants is they own the place they operate.