How a bowl of soup turned into a pot of gold
Offering shoppers a refreshing break while they mall-crawled, Mumbai-based Kinzal Vadera served up a chain of soup kiosks called The Soup Bowl
June 19, 2013 / 15:46 IST
Nivedita Jayaram Pawar
For most people, spending time at the mall can be tough on the wallet. But thanks to Kinzal Vadera, a Mumbai-based entrepreneur, shopaholics realised that a dollop of comfort food can ease the pain. Presenting this appealing antidote is The Soup Bowl, a chain of soup stalls that Vadrea owns at malls in Mumbai and Bangalore.“The idea of selling soup struck me when I spent time at food courts in malls. I felt I could reach out to discerning consumers who wanted variety and freshness in food,” says Vadera, who launched The Soup Bowl’s parent company Buzzaar Foods in 2009 and opened his first outsell at Mumbai’s Inorbit Mall.Spotting An Opportunity“Sometimes all you need is soup to do away with life’s worries. With increasing awareness about eating healthy, The Soup Bowl is dedicated to the 5 per cent of the population that believes they should eat right,” believes Vadera who has loosely based his concept on the legendary US take-away chain Soupman.With seed capital of Rs 10 lakh from his personal finances, the hungry entrepreneur went about planning a menu that went well beyond the typical tomato, mushroom, manchow and sweet corn soups that were popular at the time. “Today, the most popular item on my menu is tortilla soup with fajita seasoning imported from Mexico,” beams Vadera.Testing TastesBefore unleashing cups of soup on hungry shoppers, Vadera informally tested them on around 300 people. “I used to call 10 people every day – friends, relatives, friends of friends – to my office and treat them to my soups. I used to capture the comments on my ‘Souper Comments’ sheet and then, along with my chef, improvise the offering,” remembers Vadera. However, nothing prepared Vadera for what he encountered when he visited Inorbit Mall a day before he was to launch his very first outlet. A neighbouring counter which had soups on its menu had sold just 5-10 portions throughout the day while Vadera would have to sell 50-80 cups a day to survive. He needn’t have worried – The Soup Bowl sold 250 cups on its very first day. “What was then 0.2 per cent of the overall food sales at the food court is now 3 per cent,” says a proud Vadera, who adds that his brand offers more than 31 varieties of soups from across the world along with sandwiches and salads. Add-ons include garlic bread, breadsticks and croutons.
The ChallengesLike most start-ups, Vadera too struggled with the numerous licences required to start an F&B outlet. “Unlike coffee or pizza chains, the soup concept had no precedent. I did all my research by talking to experts, surfing the Internet and by observing people at food courts,” remembers Vadera, who spent two years doing the background work before launching his first outlet. Vadera’s soups are made from pastes, which are easy to supply across his outlets. It also helps maintain uniformity of taste and quality control. But, initially, procuring the pastes was a Herculean task. “I approached Unilever, which required me to place a 1-ton order. That kind of inventory would have taken me 5 years to sell! Moreover, the shelf life of the pastes is 6 months,” explains Vadera. A tad discouraged, he considered dropping his soupy idea because even the powders he had procured were not up to the mark. Revenue ModelThe Soup Bowl currently owns and operates three outlets in Mumbai and has four franchised outlets in Bangalore. The average investment is Rs 12-14 lakh in each outlet owned by the company while Vadera charges a flat franchisee fee of Rs 2-5 lakh and a loyalty of 7 per cent on sales. With an average ticket size of Rs 120, and 80-120 footfalls a day, average sales per month amount to Rs 3-3.5 lakh per outlet and a turnover Rs 1 crore.Obviously, Vadera needed funds to expand and he received its first round of investment in 2012 from a High Networth Individual (HNI), which was invested in the back end.But all has not been hunky dory and Vadrea confesses a few location mistakes set him back financially. With all that in the past, the 39-year-old entrepreneur is looking for investors and franchises to take the brand forward. “Business is difficult with the new tax (LBT in Mumbai and Thane), different tax structures and spiraling prices. We have to work backwards on the costs to ensure that we make some money,” he remarks.Key LearningsSize Matters: Vadera trimmed his outlets from 64 sq ft to 49 sq ft and finally 36 sq ft. This reduced the breakeven period and helped keep expenses under control. Location, Location, Location! Fooding at malls, especially for Quick Service Restaurants, is impulse-driven. “No one comes with choices in mind and very few customers check out all the outlets before deciding where to eat. If they see a crowd at one outlet, they hop to the next.” Thus, Vadera realised that The Soup Bowl had to be the first thing customers noticed on entering the food court. Variety & Innovation: It was important to keep the menu fresh. The soup/salad/sandwich of the month ensures that customers have one more reason to visit. Also, stick bites – raw salads on sticks with dressing of choice – has gone down well with customers. The chicken lollipop soup and the Mexican Tortilla Soup were other winning innovations. Vadera believes in the Subway strategy, where veggies and meats are complemented by sauces with an Indian touch. So the French Onion soup has an Indian tadka. Vadera also has access to live feeds from all his outlets, so that he can observe the staff’s interaction with customers at any point in time.Marketing Tricks: Point-of-sale is an important influencer and new soups are announced through tent-cards. This way, customers know exactly what’s on offer. Vadera says he relishes the thought of converting The Soup Bowl concept to a casual dine restaurant and taking it to high streets, airports, corporate parks and hospitals. “The aim is to establish 20 outlets in the next two years at the rate of one outlet per month. Retailing the soups/pastes is also on the anvil.
QUICK FACTSThe Soup BowlFounder: Kinzal VaderaLaunched: 2009 Seed Capital: Rs 10 lakh Revenue Model: Company-owned and franchised stores Product range: Rs 70 upwardsAverage ticket size: Rs 120Average investment in an outlet: Rs 12-14 lakhBreakeven: 18-24 months Average Sales Per Month: Rs 3-3.5 lakh per outletTurnover: Rs 1 crore.You can send your feedback on smementor@moneycontrol.com or simply post comments below Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
