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Why Most Cafes & Restaurants Fail in India – Truth About Running a Premium Cafe

What Makes a Cafe Premium?
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The food industry is one of the most glamorous yet unpredictable businesses in the world. From Michelin-star restaurants to small cafés with cult followings, the journey to success is often riddled with challenges, sleepless nights, and unpredictable customer trends. We invited Saurabh Shrivastava, the founder of Indore’s very own Mangosteen Cafe, to The Differ Show, where he spilled the beans on what it takes to run a profitable café business.

From Engineering to Café Business – The Unexpected Journey

Saurabh, an engineer by education, had no formal background in the food industry. But that didn’t stop him from turning a rooftop idea into one of Indore’s most iconic cafes. Originally planned as a co-working space with an open rooftop, Mangosteen evolved into a vibrant cafe that now boasts a premium dining experience. His story proves that passion and adaptability are key ingredients for success in the food business.

Building a Cafe Brand: More Than Just Good Food

Many people think running a cafe is all about serving delicious food. But, as our guest pointed out, authenticity, consistency, and customer experience play a much bigger role. Mangosteen Cafe has not just focused on menu innovation but also on creating an environment where people feel connected. 

From offering organic, vegan, and gluten-free options to curating a progressive European menu, the cafe has constantly evolved based on customer preferences and market trends.

Challenges in the Food Industry – The Struggles No One Talks About

Running a successful food business isn’t all sunshine and rainbows. The founder shared some of the biggest challenges faced by cafe owners:

  • Customer Loyalty is a Gamble – Unlike product-based businesses, the food industry lacks customer consistency. If a new trendy cafe opens up, regular customers might switch, making it essential to constantly innovate.
  • Profit Margins & Wastage Management – Many fail to understand that reducing wastage directly increases profitability. Using AI-driven tools to analyze food trends, customer demographics, and order patterns has helped Mangosteen Cafe stay ahead.
  • Location, Location, Location – The choice of a cafe’s location can make or break the business. Being strategic about foot traffic, target audience, and operational costs plays a major role.

Premium Pricing vs. Customer Retention

Mangosteen Cafe has transformed into a premium European-style dining space, but pricing in India is always a challenge. With an average bill of ₹800-1000 per person, it might not be ‘pocket-friendly,’ but the experience justifies the cost. Quality ingredients, exclusive dishes, and personalized customer service are what make people return, even when the prices are higher than regular cafes.

Marketing a Cafe Business – The Secret Sauce to Growth

How do you attract customers when competition is high? According to our guest, it’s all about strategic marketing, collaborations, and community building. Here’s what Mangosteen Cafe has done differently:

  • Instagram & Content Marketing – Creating reels, food vlogs, and behind-the-scenes content has worked wonders.
  • Subscription-Based Model – The cafe offers meal subscriptions for health-conscious customers, ensuring a steady revenue stream.
  • Collaborations with Celebrity Chefs & Bartenders – By bringing in renowned names from the food industry, Mangosteen Cafe has been able to establish a premium positioning.

Expanding Beyond Indore – The Future of Mangosteen Cafe

With an ambitious vision, the café is now looking to expand into cities like Bangalore, Bandra, and Koregaon Park. The goal is not just to open more outlets but to create cultural spaces where food, networking, and experiences come together.

Conclusion

The restaurant business is a rollercoaster of creativity, challenges, and constant evolution. From handling unpredictable customer behaviors to balancing costs and innovation, Mangosteen Cafe has proved that adaptability and persistence are key to success in the food industry.

If you’ve ever dreamed of running a cafe or stepping into the food business, this episode is a must-watch. And if you’re in Indore, Mangosteen Cafe is worth a visit!

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