Aji Nair, COO, Mirah Hospitality: Those who practically and cleverly restructure their operation modules will sustain in the industry

In an exclusive interview, Aji Nair – COO Mirah Hospitality, the company that owns and operates Bayroute, Hitchki & Rajdhani chain of restaurants speaks to Steena Joy about Covid-19’s impact on the restaurant sector and his advice on how to survive the crisis

Covid-19 has wrecked havoc on the restaurant industry compelling it to reimagine and reinvent. Comments

The pandemic continuing now for the 17th month in the country, has destroyed the entire industry, which was soaring high for the last few years. Since 2015, India was witnessing very positive growth in the industry.  Many international restaurant brands found their successful space in India, and at the same time, Indian origin restaurants serving regional and international cuisines also flourished between 2015 to 2019.

The consumers became very brand-focused, and many famous and innovative brands in the industry successfully established their presence and expanded their business during this period. Bayroute, Hitchki and Rajdhani brands are also in this successful journey with their national presence and number of units.

However, since March 2019, the pandemic brutally destroyed the financial conditions of the industry, and the operators are now finding it difficult to continue their operations owing to the colossal loss incurred during this period. While many individual investors have decided to close down their restaurants, few companies strategically review their processes and expansion plans for the future.  Renegotiation on the lease terms, downsizing the overall workforce, adapting more efficient and cost-saving operational modules etc are in the list of actions for the next 12-18 months.

We have gone beyond the New Normal. What will be the Next Normal for the industry? Will fine dining be a thing of the past?

In the initial stages of a pandemic, we were in the hope of the unknown. However, partial opening and operations at different intervals, though they did not commercially help, enabled us to understand people’s response to dine in and observe and plan the strategies to manage the operations more efficiently. The so-called next NORMAL will have a concise life, say approximately 12-18 months, and those who practically and cleverly restructure their operation modules will sustain in the industry. Fine dining or Casual dining, together with the so-called DINE-IN business, will flourish again and regain its fame and importance very soon. The best learning during the post lockdown operations and forced controls which the operators followed during this period may also help them operate the restaurant more economically and profitably.

What more can industry bodies/ associations do to support the industry?
Throughout the pandemic, the associations guided, educated and assisted the restaurant owners in reinventing to sustain their business. Many seminars and discussions were conducted, which was a great platform to share the problems and exchange ideas. This was a significant contribution by the associations during this period. We need to be united and voice our issues collectively, so that the representation in front of the authorities and landlords can be much better. However, more than the associations, individual owners need to understand the need for unity and collective bargaining.

Your advice to restaurateurs to keep afloat in this crisis?
We have decided to face the situation with a very positive mind. Ups and downs are the inevitable rules of life. If it goes in a straight line, that means it is dead. It may take another year to bring the sales back to their earlier levels. Understanding and accepting these factors, will help plan your financial workings for the following year. Let’s focus on the quality of food and service and continue the journey. Try to operate with bare minimum staff, limit the menu, focus on reducing wastages and pilferages. Concentrate on the customer service, especially on the safety and hygiene part and give them the confidence of being safe at your place. You will see your business come back at the earliest.

Future roadmap for Mirah Hospitality?
While the company is going through a challenging situation, primarily due to the financial losses during the last few months, we urged our team to stay supportive and be confident about the future. We are currently reviewing the individual performance of each unit of all the three brands, Rajdhani, Hitchki and Bayroute and developing strategies to continue its operations without any closures. However, the decision will depend on support from the landlords. At the same time, the projects which were on hold for some time will start soon, and in the next year, both Hitchki and Bayroute will find their presence in few more new locations through our franchised modules.