In today’s world, many people prefer to start their own businesses instead of 9 to 5 jobs. But what does it take for a business idea to really work and generate profits? Kritika’s entrepreneurial journey may help you understand how things are in reality. Kritika Bhatia, a 1% Club member and founder of All That’s Coffee, studied architecture for five years, and in the last year of graduation, her class went on a study tour to Europe. They just had to rush from one place to another during the tour and there was no time for a break. The only thing that kept her going was a hot cup of coffee sold by local shops. These takeaway shops weren’t fancy but they focused on offering quality coffee in the least amount of time. Kritika really liked the concept and this idea stayed with her even when she returned.
In this interview with The 1% Club, Kritika shares how she brought the same concept into reality here in India and made it successful. Edited excerpts:
What was your next step after this idea clicked?
I knew I was interested in hospitality and didn’t want to continue with architecture. So I went on to get a Diploma in culinary arts and became a chef in Mumbai. Later I moved back to Nagpur and started consulting for restaurants to get a deeper understanding of running a business.
What did you do to ensure that the Coffee business idea would work out?
I started “All That’s Coffee” – a ‘takeaway’ coffee shop- in 2020. During the pandemic, that concept was the new normal. Even cafes with a much larger set up were allowed to do just that. For us, the lockdown was a blessing in disguise.
What was your primary investment in All That’s Coffee?
Normally one cafe needs a minimum of Rs 50 lakh but I started my first coffee shop with just Rs 10 Lakh in 2020. Within three months, I got my money back, and then in the 4th month I opened a 2nd shop and now I have 12 coffee shops.
What strategies or key decisions do you attribute to this rapid expansion?
We were able to expand this rapidly just because we built a solid team. And doing that in the hospitality business is the biggest challenge.
How do you maintain quality while keeping costs down?
To maintain quality, we have strong SOPs that are followed in all our outlets. We don’t need to compromise on the quantity of ingredients we use. Even though our cost of goods sold is higher than other cafes, our operational cost is substantially lower than a full-fledged cafe. We run operations in a small 200-square-foot shop where the customer walks up to our window, gets his coffee, and leaves. Our rent is much lower than a 1000 sq feet cafe. We do not need any service or kitchen staff. We operate with just 4 baristas per outlet. Keeping the concept extremely clean, also helps us to expand rapidly.
As co-founders, we constantly work on building strong SOPs, and a stronger team. We have defined everyone’s role in the company and that helps us stay focused.
With your expansion plans into other states, what challenges do you expect, and how do you plan to overcome them while maintaining the essence of your brand?
We’re in 6 cities currently and we’re planning to tap at least 4 more in 2024. The biggest challenge for us pre-opening is finding the perfect location and a good team. Even as a consultant, I would always tell my clients that a successful restaurant has to have the ‘right concept’ at the ‘right location’ at the ‘right time’ run by the ‘right people’. And if you go wrong in even one of these, the restaurant will fail sooner or later. To be in the race long term you have to get each of these things right and that’s exactly what we try to do every time we’re in a new city.
What are the challenges you have faced till now?
Everyone I know thinks owning a restaurant is super glamorous, and trust me it’s the opposite. We don’t have defined working hours, sometimes zero social life. There are days when I come back home from work at 1 am. I’ve missed so many family events because work was more important. I’ve been lucky that my family and friends support that. Any business comes with a risk, but in hospitality, 70% of businesses fail. So with a 30% chance of success, we take risks every day and with every new store. I never had to worry about these things when I was working for someone else.
What’s your personal opinion on business vs 9 to 5 job?
I come from a business family, with 4 generations of entrepreneurs. I always knew I would do something of my own. To learn everything about the hospitality business I had to work in one. I could never have the confidence of starting my own business without my job experience, it helps you understand the operations, standards and so much more. No degree would ever teach you what a really good job teaches you about the reality of what goes behind a successful hospitality business.
Also Read: What is FIRE – Financial Independence, Retiring Early?
Have you achieved your FIRE number? Or how near are you to achieving it?
As far as my FIRE number is concerned (personally), I might achieve it by the time I’m 40. Honestly, I would never want to retire. I come from a business family where nobody ever retired. My grandfather worked till the age of 83, and my dad and uncles plan to do the same, they’re all very successful entrepreneurs who love what they do. I don’t know what retirement looks like, I’ve never seen it. Honestly, I don’t know any better, I love what I do and I want to work every day of my life. I like the idea of ‘FIRE Number’ where I could work without having to worry about money, where my money is invested well and I work only because it makes me happy (like my grandfather and my dad).
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Disclaimer: The above content is based on the information provided by All That’s Coffee’s Kritika Bhatia. The 1% News doesn’t independently verify non-public data reported by interviewees.
