MasterChef judge Ranveer Brar has been appearing on television for more than a decade now but apart from being a celebrity chef, Ranveer has also been running his own restaurants since the 1990s. In a recent interview, Ranveer shared that he learnt the value of financial discipline in running a restaurant when his own restaurant failed. He shared that an investor might expect to make money on a restaurant as soon as it opens, but it takes at least 3-6 months for a restaurant to make money.
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Talking to Shark Tank’s Ritesh Agarwal on Hindustan Times’ YouTube channel, Ranveer shared, “I learnt financial discipline when my restaurant failed.” Ranveer detailed that restaurants have many outlets for losing money and one has to be extremely careful in such a business. “The problems with restaurants is that there are so many chances of losing that financial discipline that one cannot control it. There are so many places that a tap can start leaking that you sort of you lose your way. You have to build a restaurant business. The investment is not just when the restaurant opens, you have to keep investing till it starts making money. And a lot of investment mindset is, we have opened it, now make money.”
Ranveer said that the “importance of working capital, escrow and the understanding of bad times” is extremely essential when one opens a restaurant. “Opening a restaurant doesn’t mean that you will start making money. Restaurant will only start making money after it has been running for at least 3-6 months. So I think the ability to forecast well, the ability to understand the importance of working capital, the ability to understand that it will have to run for 6 months, irrespective of the fact there are zero people who come to eat,” he said.
Ranveer stressed that 95 percent of the restaurants fail because they panic and change their course because it is not giving them returns as soon as they open. “You can choose your friends but your restaurant is like your child. You have to make all the big decisions before it opens,” he said.
Ranveer will be soon be seen in the finale of Celebrity MasterChef.
