How Lucrative is Owning a Japanese Restaurant in India

How Lucrative is Owning a Japanese Restaurant in India
Earlier, Japanese food for Indians just meant sushi or sashimi which in the minds of people meant having raw fish. However, as Indians became richer and started traveling abroad more frequently, their understanding of Japanese cuisine began to grow.

By Sakshi singh , Contributory Author

29 Mar 2022 | 10 min read

Japanese food in terms of flavors is very opposite to what Indian flavors offer, but how it has become all the rage in India? About 10 years ago, only a handful of Japanese restaurants were found in five-star hotels. Today, there are numerous such eateries and sushi bars abound, especially in the metropolises of Mumbai, Delhi, Kolkata, and Bengaluru, as well as in smaller cities and states from Pune and Chandigarh to Goa and Assam. 

Earlier, Japanese food for Indians just meant sushi or sashimi which in the minds of people meant having raw fish. However, as Indians became richer and started traveling abroad more frequently, their understanding of Japanese cuisine began to grow. They realized that Japanese cuisine is much more than sushi or sashimi and started discovering dishes such as udon, ramen, soba, and even Japanese curry. In other words, Indians have begun to understand that Japanese cuisine encapsulates a wide range of flavors, ingredients, and styles. The more discerning foodies have also started appreciating the nuances of regional variations of Japanese gastronomy.

Indicative of the growing popularity of Japanese cuisine in India, food exports from the East Asian nation jumped 40 percent in 2018. Even as it is working with various entities to further bump this up and has bestowed a government authenticated tag on fine diners. For Japanese restaurants, the availability of Japanese ingredients and drinks from Japan is essential. Therefore, in order to promote Japanese food in India, at the same time, the embassy is also working on the establishment of an ecosystem where Indian outlets can have easy access to Japanese ingredients and drinks. 

Changing Dynamics of 'Authentic'

This year, Harry Kosato will complete 15 years in India, and his chain of Japanese food delivery and takeaway outlets, Sushi and More (that has outlets in Mumbai, Delhi, and Gurugram) will be completing 11. While discussing about educating Indian consumers on authentic Japanese cuisine, Kosato stated that in his opinion, authentic can be quite a sensitive and tricky word. Food according to him is constantly evolving and what used to be new and foreign may become authentic, over time. 

“For example, is a California sushi roll really authentic? Probably not for the purist in Japan who eats Japanese sushi made in Japan only, but California sushi rolls are the rage from Los Angeles to London to Mumbai, now, and are consumed in large numbers, so may in some respect be seen as the new authentic taste around the world,” he stated.

Currently, Sushi and More is trying to serve consistent simple, and affordable Japanese sushi in India, which is as far as possible authentic by using the best ingredients that are readily available in India. The main mission is to expand the number of people enjoying sushi, and as far as possible authentic. 

“We are basically doing three things. Awareness, education, and training - both for chefs and customers about consistent good sushi. Consistent delivery of great sushi to an ever-enlarging audience through Sushi and More. Providing professional and home chefs opportunities to interact with authentic ingredients and experiences,” he further informed. 

However, over time, Kosato has been able to overcome the 'Japanese food is nothing but raw fish' stereotype in India.

Rise of Educated Customers

Yazu Goa, frequently gets guests who have knowledge and research on the various ingredients used in Japanese/ Pan Asian cooking. People are aware of the rice, the sauces, the fresh ingredients used in making the meals. Now people who come into Yazu know that sushi is not just raw fish in rice. And they know that dimsum can be made in more than just four varieties, with a mix of ingredients. Also, the stereotype in India is that every Pan Asian restaurant uses a level of MSG in their food. This is not necessary, as the sauces and ingredients are all flavorful by themselves.

Positively, now in modern India, a lot of people are open to the idea of experimenting with new cuisines and not Indianizing them. Some of the highest selling dishes as Yazu are Yazu Signature Chicken, Fish in Black Pepper sauce, Signature Yazu Lotus Root and Chorizo Charcoal Open Bao probably because the team has been created keeping the local taste and ingredients in mind.

Reading statistics, Sushi has been not just a dine-in favorite but is also on the move to replace noodles as a takeaway food item. India was skeptical about eating raw fish at first, however with the contemporary Japanese menu and vegetarian ingredients, the cuisine has been welcomed very well. But as food is evolving, so are the customers/ guests. Guests today are curious, ask questions, want to try new things, and most importantly want to know what they are eating. 

Offering Great Business Potential

In terms of offering great business potential, the first thing that pops up in mind is how cost-effective it is to run a Japanese restaurant considering that ingredients are of higher price and sourcing can be a task. Columbus Marquis from Yazu commented that like every business if one creates the right supply chain, it's not very difficult to procure ingredients.

“As now people are well-traveled and they know the kind of ingredients, so this is making it easier to procure, as the demand for Japanese and Pan Asian ingredients have gone up. We are now working with local suppliers, who help us procure the best quality of ingredients,” he added.

Adding to him, Karan Khilani, Founder of Elephant & Co situated in Goa and Pune stated that it was quite difficult to source ingredients back in the day, but with the global economy evolving in the last five to ten years, it has become comparatively easier to source high-quality ingredients. Consumers are also willing to pay more for high-standard stuff. 

“Japanese food is riding a big wave of popularity, and in the last two years, it was impossible for people to travel and experience this food. This is why we have seen the supply chain getting easier and a lot of new Japanese restaurants popping up,” he commented further informing that at his outlets, surprisingly, vegetarian sushi and salads have been a hit. People have shown a deep love for ramen as well. The choice of off-beat ingredients like edamame, cream cheese, tempura or some teppanyaki with a glass of sake after work is taking up high demand too. Just by riding on the demand factor, the unit economics of any Japanese restaurant thus fits in well.

With the Government's Support

Back in 2019, there was news about the Japanese government currently working on increasing exports of agricultural products and foods to India and is engaged in discussions with Indian government agencies including the Food Safety and Standards Authority of India (FSSAI), Ministry of Agriculture and Farmers Welfare (MoAFW) and Ministry of Food Processing Industries (MoFPI). With FSSAI, the Japanese Embassy has signed an MoU on food safety at the annual summit meeting, and is currently in discussions on improving the management system of food imports to India. With MoAFW, there have been discussions going on exporting Japanese apples and pears to India. The potential is rising year-on-year driven by the high level of demand from the locals.

Japanese food in terms of flavors is very opposite to what Indian flavors offer, but how it has become all the rage in India? About 10 years ago, only a handful of Japanese restaurants were found in five-star hotels. Today, there are numerous such eateries and sushi bars abound, especially in the metropolises of Mumbai, Delhi, Kolkata, and Bengaluru, as well as in smaller cities and states from Pune and Chandigarh to Goa and Assam. 

Earlier, Japanese food for Indians just meant sushi or sashimi which in the minds of people meant having raw fish. However, as Indians became richer and started traveling abroad more frequently, their understanding of Japanese cuisine began to grow. They realized that Japanese cuisine is much more than sushi or sashimi and started discovering dishes such as udon, ramen, soba, and even Japanese curry. In other words, Indians have begun to understand that Japanese cuisine encapsulates a wide range of flavors, ingredients, and styles. The more discerning foodies have also started appreciating the nuances of regional variations of Japanese gastronomy.

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