People in Bangalore must have heard of Rameshwaram Cafe, a quick service restaurant famous for its South Indian cuisine. But do you know that the cafe which is visited by a large number of people daily, actually earns around Rs 4.5 crores monthly? In a podcast with Nikhil Kamath, CEO of Zerodha, Sujit Kumar, co-founder of B2B startup Udaan, talks about the monthly revenue of Rameswaram Cafe.
“If you see Rameshwaram Cafe. They cut 7,500 bills a day. A shop is hardly 10 by 10 or 10 by 15 square feet. Does a business of Rs 4.5 cr in a month and around Rs 50 cr in a year. They also make good margins. Around 70 per cent gross margin,” said Sujit Kumar.
Kumar was speaking on the third episode of the podcast WTF. He was accompanied by Vidit Atre, co-founder of Meesho and Kishore Biyani, founder of Future Group.
Coming back to Rameshwaram Cafe, the restaurant was founded by Divya Raghavendra Rao and Raghavendra Rao. Both have received several awards for their venture. He was inspired to name the restaurant after the birthplace of Dr. APJ Abdul Kalam, the former President of India. All items in the cafe are prepared on the go.
For Sujit Kumar, on the podcast, the co-founder of Udaan talks about his entrepreneurial journey. He elaborated on how he left Flipkart, where he served as president of operations between 2008 and 2016, to set up his own start-up.
In the podcast, the entrepreneurs talk on a wide range of topics including the investment ecosystem in India vs other countries, how to scale their business and much more.
In a lighter vein, Sujith Kumar revealed that he was reluctant to move back to Bengaluru when he was studying at the Indian Institute of Technology. Flipkart co-founder Sachin Bansal invited Kumar to the city on the pretext of his marriage and then to learn about his e-commerce firm.
Kumar was all praise for quick service restaurants like Rameshwaram Cafe and said QSR chains have made their way into the country. The entrepreneur revealed that he has made 150 investments in companies including coffee chain Third Wave Coffee and ed-tech unicorn Unacedemy.