The food services industry in India is expected to reach 5 lakh crore by the year 2021, led by a healthy 16% growth rate in the organised sector. High percentage of young and working population with high disposable incomes and tech savvy and experimental nature, is eating out or ordering in more than their predecessors, thereby driving the market growth.
The impact of the expanding market on the entire ecosystem- right from real estate to kitchen equipment to supply chain and employment- is quite visible. However, some challenges still persist.
One of the significant challenges is related to managing working capital and arranging funds to invest continuously in business growth. These challenges have two main causes.
Firstly, the traditional lenders need collaterals to provide working capital loans for restaurants and, as most restaurants run on leased or rented premises, mortgaging business premise is not an option and mortgaging residential premise is not desirable. Secondly, the traditional lenders take a long time to process the loans for restaurants. The lenders may ask restaurant owners for business plan and a detailed budget in addition to their personal and business credit history. The restaurants lose many business opportunities while fulfilling all requirements of this long process.
Being cognizant of the above challenges, the owners of a restaurant chain aspiring for a business loan for expansion and improved operations tried a new approach to access funds. Its story can serve as a blueprint for other restaurants to follow.
Started by professionals from the financial services industry, who not only have a passion for food but a pedigree in Hyderabadi cuisine, Biryani Blues, a venture of Thea Kitchen Pvt. Ltd., founded by Raymond Andrews and Aparna Andrews, serves delectable and inviting Hyderabadi dishes. With experienced chefs from the land of biryanis and korma, authentic taste has been given top priority while designing the menu. Thea kitchen has its outlets widely distributed In Delhi NCR region with 31 outlets located in different locations. It has recently opened outlets in Chandigarh and Jaipur and is also planning to spread its business across Mumbai and Bangalore.
Expanding business across Mumbai and Bangalore meant that fresh funds were needed. There was another requirement of working capital funds infusion to run smooth operations in addition to running offers and promotions to penetrate the new markets while keeping the revenue clock ticking. The business leaders at Thea Kitchen were examining various alternatives to overcome these challenges.
While looking for funds, Thea Kitchen approached various lenders and finally decided to proceed with Indifi for their immediate capital needs. Indifi offered completely unsecured business loans to Thea Kitchen based on the digital trace of transactions with their food delivery partners and other direct sources. Speaking on the solution offered by Indifi, Mr. Prabhat Pandey, Chief Manager, Business Finance, Biryani Blues, said
The next success story on restaurant business loan can be yours. Apply for customized loans for restaurant businesses on Indifi website and get instant access to funds for growth and expansion. Indifi offers business loans for restaurants for all purposes whether it be setting new outlet, investing in base kitchen, building working capital or investing in local or digital marketing.