My key takeaways
1) In FY 20, only 19% outlets had EBITDA of 10% +, 50% was negative EBITDA. Now, 18% single-unit restaurants will shut. Chain-brands will shut 12-15% of their restaurants by Dec 2020
2) 2015 was the best year for F&B Industry. Post demonetization in Nov’ 2016, the performance levers of the industry changed, thanks to the massive discount-driven delivery push..
3) Delivery platforms are running out of cash, putting pressure on discount induced delivery business Last year, delivery platforms’ discount spent was 34%, brands shared 50% of the discount spent..
4) Negative working capital is a curse because it encourages a false sense of continuity and in the end, the small- medium suppliers become the collateral casualties
5) Our restaurants aren’t set up for delivery- don’t have menus that are designed for takeout. The covid-crisis has prompted quick adjustments and for some, it’s a life-or-death situation.
6) A Five-Year Downturn?
7) Mindful Eating: How to eat food in a new (but right) way? A huge opportunity
8) Brands on a ‘crooked ladder’ (bad hygiene practices, false claims) shall be severely penalized.
From crawling to walking to running… Yesterday during a monthly meeting with my team, I just realised that we started off with 2 brands for