Brand building is necessary for young entrepreneurs as running a food business is difficult to curb rising costs
The food delivery sector was valued at $4.35 billion in 2020, and it is expected to grow to 300.57 million users by 2024. In terms of the Indian situation, revenue in the Indian food market is predicted to reach $610,904 million in 2021, with an annual growth rate of 6.58 per cent (CAGR 2021-2025). But, with rising operating costs, opening a restaurant or food truck without first establishing your brand can be a dangerous choice.
While starting and sustaining a food and beverage company is becoming more difficult, award-winning Pawan Shahri and Dhaval Udeshi of London Taxi have created an incubation programme that will help five entrepreneurs launch their businesses. This will involve help for marketing, ads, aggregator relationships, finance, and accounting, in addition to utilising the restaurant's existing resources, which include its 650 sq ft space, head chefs, R&D teams, and vendor management teams.
Anyone with knowledge of the food market, from home chefs and bakers to college students, nutritionists to senior citizens, fitness and fashion influencers, and delivery start-ups, who are looking for a platform to effectively showcase their ideas, is eligible to join this inclusive programme. This is the first time an existing kitchen has opened its doors to nurture new businesses.
This model is likely to take a stronger hold in the restaurant industry by partnering with a culinary incubator that has already tested the waters and has an established customer base, allowing independent brands to bring their concepts to market before investing in a permanent brick and mortar space.
“The idea of the incubation program is to mentor young entrepreneurs, bring in good concepts, and create jobs. During lockdowns, the only thing running is food and home delivery. And we believe this program will have a lasting effect in helping people realise their dreams of opening their very own restaurant,” believes Dhaval Udeshi. “We plan to work closely with entrepreneurs and mentor them. So along with marketing support, the teams, the chefs, everything will be provided, but the entrepreneur will ride the business with us. At London Taxi, we are looking for real people with an idea for a business and we’ll make it happen.”