INDIA: The latest episode of Transcontinental Times’ show, “Smart Entrepreneurship Decoded” featured, Hospitality Entrepreneur – Awadh Lal Shukla, MD, at Cutting Edge Hotel Consultants. He worked for a decade in multiple cities in India with one of the largest hotel chains.
Awadh was raised in a family of teachers who had never engaged in business. He emerged from a small village where people despise anyone working in the hospitality industry.
Encouragement to establish the restaurant business
While discussing the inspiration behind joining the hospitality sector, Awadh reveals, “After graduation, it was a little tough to choose the line as I belong to the village side my parents didn’t know about the hotel industry. However, one of my colleagues who worked in hotel management told me that it offered outstanding career prospects.”
“So, following the same, I was enrolled in the hotel management college in Bhopal.’ After graduating from college, I worked at the Oberoi Hotel for three years. My passion was mostly founded in cooking, and I used to assist my mother in the kitchen as a child,” he added.
The hospitality sector requires market knowledge as well as marketable skills
Awadh explains the causes of the high failure rate in the restaurant business. He says that most hospitality firms fail due to poor market research and a lack of expertise.
“For example, if you establish a restaurant, you’ll first design a nice interior, but if you’re unprofessional, your loss is certain. You need to research the market before starting the business. You must examine the various categories of clients. Based on that, you can split them into A, B, and C categories and then create the interior. “How much money you put into the hotel is also essential,” he remarked.
“The inexperienced person will believe that since they have invested a large sum of money, their money will be returned within a year, and they will begin to earn revenue from the hotel. But things are not so straightforward; proper earnings in business take time,” he continued.
He also clarifies his vision regarding the hospitality sector, stating, “The restaurant business is more of a passion for me. If you want to work in this industry, you have to work hard since there is a lot of work.”
Electricity and manpower emerge as the costliest aspects of the business
Highlighting the contrast between the hospitality sector and other businesses, Awadh remarks, “Hotel investment is not like other investments. Many industries provide a quick return, but the hotel industry distinguishes heavily.”
He also mentions the two most expensive components in the restaurant business, asserting, “There are two things that are quite expensive, electricity and manpower.” The electric bill varies widely between day and night, which significantly impacts our firm; on the other hand, the industry lacks competent manpower. Most people do not want to work in hotels because it requires 11–12-hour shifts and those who do tend to enter with the intention of earning a higher income.”
Awadh focuses on elements that improve the hotel business, quoting, “You need to update the interior from time to time, so the customer doesn’t get bored. You should also be familiar with social media, which can help your business flourish. Most importantly, if your guest satisfaction rate is greater than 80%, you will be successful in business; if it is less than 50%, you will fail.”
Watch the whole interview here: