The success of a restaurant depends on several factors, such as its interiors, service, food and ambiance. Among them, location plays a significant role and is often one of the first decisions made when opening an eatery. In a recent
The rent restaurants pay in malls is significantly higher, but, interestingly, it comes with a benefit.
“I'll not lie: the rent numbers, compared to what we were paying for high street outlets, made me pause. And before we signed on for the first mall-based restaurant, I kept thinking this through for weeks,” Chhajer wrote.
Speaking about the benefit, he said, “And then it hit me – the Rs 5 lakh a month you pay as rent for a mall-based restaurant is just upfront customer acquisition cost, compared to the Rs 3 lakh you'd pay to Instagram influencers and Meta ads to drive people to a non-prime location.”
Explaining how malls particularly benefit restaurants, he added, “Despite what people think, F&B is primarily an impulse- and convenience-based industry, if you leave out occasion dining.”
Speaking about the role of malls in Burma Burma's success, he continued, “Today, 75% of our 22 restaurants are based in malls and integrated corporate office parks, and while it isn't the defining trait of our ongoing success, it does play a huge role.”
Chhajer noted, “I understand this goes against the 'hustle, grind and win against all odds' mindset entrepreneurs in every industry like to have. But we have found things that work for us. PS: If the right high street location opens up, you can be sure Burma Burma will have an outpost there!”
The post received a range of reactions:
Speaking about the uncertain lifespan of malls, one user wrote, “Malls over a period of time tend to die. 80 to 90% of mall visitors are window shoppers or discount shoppers. A high street store/business becomes a landmark over a period of time. Business lunches don't happen in a mall.”
A curious reader asked, “Does the menu price change based on the rent charged by the mall?”
One agreed with the restaurateur, saying, “I wouldn't have walked in if not for the location at Mall of India. And amazing food and service.”
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