If you’re a foodpreneur trying to scale your brand, raise funding, or just make sense of the madness that is the F&B industry in 2025, this one’s for you.
We recently hosted Hari Balasubramanian on Today’s Special, Reelo’s community series for F&B founders. Hari has been an entrepreneur since 1987, an active angel investor, and a core member of the Indian Angel Network.
Over the years, he has backed some of the most exciting names in India’s food space: Cheeliza, Biggies Burger, Samosa Party, Auntie Fung’s, and Toffee Coffee Roasters.
But Hari’s take on F&B is different. He doesn’t just talk about funding or business metrics. He brings together sharp financial thinking and a grounded perspective inspired by spiritual inquiry. Its strategy meets self-awareness.
This conversation wasn’t just about numbers. It was about how to think like a founder who lasts. Here’s what stood out.
1. Funding isn’t a milestone. It’s a mindset.
One of the first questions we asked Hari was: When does a restaurant know it’s ready for funding? His answer flipped the question.
It’s not about hitting a revenue target or opening a second outlet. It’s about whether you’re building something that can sustain and grow.
Today, the definition of a restaurant has expanded. Cloud kitchens, RTE brands, and delivery-only setups are all part of the mix. Regardless of the format, what matters is your business model. Does it scale? Can it survive thin margins, platform commissions, and rent overheads?
Pro Tip: Don’t start with a pitch deck. Start with a solid understanding of your costs, margins, and customer habits. That’s what makes a business fundable.
2. Great brands don’t just taste good. They think well.
The reality of F&B is harsh. Tastes change. Delivery platforms dominate. And customers are spoilt for choice.
It’s a reminder that your instinct is important, but it has to be balanced with data. If your customers don’t like something, stop pushing it. Feedback isn’t just a formality. It’s the clearest signal of what’s working and what’s not.
That said, don’t confuse instinct with ego. Smart founders can separate personal taste from market opportunity. You might hate egg bites, but if customers love them with coffee, you need to pay attention.
3. Unit economics isn’t fluff. It’s survival math.
If you’re asking for investment, Hari says, know your numbers. And the one he keeps going back to? Food cost.
Margins are thin and getting thinner. Platforms like Zomato and Swiggy can take 20–30% of your sales. Add to that high rents, manpower churn, and rising expectations of consistency across locations.
What you can control:
- Rent (don’t overspend on a fancy location)
- Menu engineering
- Portion sizes
- Fixed costs
It might not be exciting, but it’s essential for survival. Watch the full episode here 👇
4. Storytelling beats spreadsheets (but you need both).
When it comes to pitching, most founders overload their decks with market data. Hari has a different take:
For example, if your data shows that 70% of your orders come from people aged 18–24 who order between 11 PM and 1 AM—that’s insight. That’s fundable.
A good pitch deck does three things:
- Tells a compelling story
- Shares clear customer insights
- Lays out solid financials and use of funds
And yes, know how the money will be used. Don’t leave it to your accountant to explain. Founders must know their financial plan inside out.
5. Valuation isn’t personal. It’s proportional.
Hari suggests a basic benchmark:
- Early stage: 2x annual revenue (up to 2.5x if you’re profitable)
- Premium, category-defining brands: 3x–4x (rare)
- Weak or early-stage: 1.5x (or even less)
Reality check: Even Biryani by Kilo, a 300+ crore brand, was valued at just 1.55x revenue during acquisition.
The key? Focus on profitability, visibility, and velocity.
6. Choose investors like you choose co-founders.
Not all money is equal. Hari warns founders to be careful about who they bring on board.
This is especially true in the F&B world, where operations are intense and founder burnout is common. You want someone who gets it, not just someone who wants quick returns.
And remember, investor control is real. If they hold majority equity, they can push decisions that may not be aligned with you.
7. Spiritual awareness can help you scale, too.
It might sound odd at first, but Hari credits his grounding in the teachings of Ramana Maharshi for his calm, balanced approach to business.
For founders constantly firefighting and making tough calls, this perspective is powerful. It’s not about being passive. It’s about being clear, centred, and kind to your team, to your customers, and to yourself.
Final Thought
Hari’s message is clear. Fundraising is not the goal. Building a great, profitable, beloved brand is. And if you do that, the money will follow.
Take that first step. Then keep walking.
Want more F&B wisdom like this? Check out more episodes of Today’s Special.
