Re-evaluate organic growth: We began to feel the precursor to the slowdown almost a year back, when we started slowing down because of high real estate prices. We became more focused. We exited formats such as food courts, which were a hindrance to servicing 40% of our business that came through home deliveries; and entered newer ones such as carts, that allowed us to ensure “anytime, anywhere” availability of Chinese food. The slowdown has resulted in a correction in property prices. So we are renegotiating rentals for existing properties and signing up a lot more locations – at much more reasonable prices. The best part is that I’ve gone for a simple rental renegotiation, but walked away with a reduction in electricity and common areas maintenance bills as well.
In the present ‘discount culture’, we are choosing to break out of the clutter by being more aggressive. We’re sprucing up the look of our restaurants, we’ve just changed the look of our menu and we’re listening closely to our consumer to make sure that we let them know we are their best source of entertainment.
Introspect and take harsh steps: For the past few years, we had a dream run. Business doubled year-on-year and we went from a single store in 2003 to 45 outlets in 14 cities. This growth demanded all our attention and we found it difficult to introspect.
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But we’re now becoming more disciplined about spending and efficient about the cash we have. There’s utter discipline around travel, which is a major part of our business routine. We are not entertaining liquor bills on company expense. We have even put limits on expense heads now.
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"I’ve taken a 20% pay cut this year."
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We’ve made salary packages more incentive-based and changed structures to reward greater productivity. I’ve taken a 20% pay cut this year. There’s greater accountability in the entire organisation.
Renew mindsets: When we start out as an entrepreneur, the focus is on getting the business up and running and not on cash flows. But we’ve to get out of that mindset now. We have to become organically profitable. We have to understand the importance of running this business through its own cash flow, which really is the right way of running any business.
Huddle a lot more: Anyone who’s watched the Indian cricket team huddle will know how important it is to be together, especially when the going gets tougher. At a time like this, when newspapers are full of bad news, when competition is firing people, there’s so much insecurity among employees. Everybody’s struggling to get a sense of what’s happening. This is the time for utmost EQ, of reassurances, of being sure of the key message that you want your employees to take away, and of being entirely honest with your employees.
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