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Mall Based Restaurants Fail In High Numbers While Mall Owners And Honchos Indulge In Blame Game


By Sanjay Sharma, Section Good Eating Places Around?
Posted on Sat Mar 12, 2005 at 08:09:51 PM EST

It was supposed to be the Capital’s next big eating-out destination. But Gurgaon’s restaurant dream has gone sour, literally. As one restaurant after another shuts shop in the suburb’s mega malls, all owners are left with is a bitter aftertaste.

It is alleged that a promised multiplex at Sahara mall never came up. “I opened the restaurant banking on the multiplex,” says P.S. Malhotra of Crave. Sagar Ratna’s Kuldeep Gupta complains:

  • Sahara made false promises... Now they don’t even take our calls.”
  • The Sahara management doesn’t accept blame. “Restaurants are closing down because they can’t pay the rent,” says a top honcho of the mall.
And hear the arrogance at the MGF Metropolitan Mall.
  • Says Baljeet Singh, VP, MGF: “Restaurants are shutting down because the quality of food isn’t up to the mark.”
  • Francis Kuok, director of Fayian (Sahara) disagrees: “If our food is bad, how come our CP outlet has been doing so well for 15 years?”
  • At the MGF Metropolitan Mall, Tandoori Express and Buddha Lounge closed in January after a year in the business. “We were told there’d be only four restaurants,” claims Sherwani. “There’s too much competition.” MGF alone has 26 eateries.
  • At Sahara Mall, Crave, Fayian and Sagar Ratna opened in 2004, and shut later that year or early in 2005.
  • Café 100 (DLF City Centre) shut down six months ago.
  • Many others are “planning to close,” says Sunny Sarid, owner of Café Sound of Music at Regency Square.
  • Restaurants like Buzz, Yo China!, Odyssey, Moti Mahal, Chor Bizzare and Rodeo are doing well by virtue of brand equity. “We’re surviving on reputation, really,” says Vyom Ghai of Buzz. But even he is unsure how long the buzz will last.
“Only a few restaurants are doing well in Gurgaon malls,” acknowledges Ajay Khanna, executive director, DLF Retail Developers.

Says Sayeed Sherwani of Rodeo (MGF): “Rents are charged on super area, not carpet area.” Which means restaurants pay rents not only for the area they occupy, but also for corridor space and the atrium. “Besides, maintenance charges increase every six months,” adds Sherwani who also owns CP’s popular Rodeo. Restaurateurs say that rents are steep (roughly Rs 17/sq ft for a 2nd floor space; more for ground floor, front-facing spaces).

Also, fewer people are now travelling to Gurgaon for pleasure. “With malls coming up in the city, footfalls have decreased,” says Joydeep Ghose, operations manager of the now-defunct Magnet (MGF). “We couldn’t survive only on call centre parties.” Also, traffic is so bad on Mehrauli-Gurgaon road — especially the mall mile — that few Delhiites prefer to travel there for dinner. “And Gurgaon’s population isn’t enough. Hundreds of houses are still lying vacant,” says Sarid.

From The Hindustan Times - March 09, 2005 - by Nishiraj A. Baruah
http://www.hindustantimes.com/news/181_1272288,001100020009.htm
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