Asmita Mukheriee | Hyderabad
In an industry long dominated by men, Lalitha Dutta, Managing Partner and the dynamic force behind Firewater Neo Bar and Kitchen, has established a distinctive reputation through her unwavering determination and innovative spirit. Her journey from a corporate professional at Microsoft to a successful entrepreneur in the F&B space is nothing short of inspiring.
Dutta’s entry into the hospitality sector was serendipitous. “It just happened, honestly,” she recounted. “A couple of friends and I, all from established business families, sought an independent venture and initially envisioned a coffee shop.” Recognising Hyderabad’s evolving culinary landscape beyond traditional Indian fare, they secured a franchise for Habanero, a Mexican restaurant. Dutta managed this establishment in Hitec City for four years. “As a dedicated foodie, I was driven to offer diverse, high-quality cuisine,” she explained. This initial foray solidified her commitment to the F&B industry, a decade-long journey that followed a previous career at Microsoft in Hyderabad. Firewater Neo Bar and Kitchen located in the Financial District now stands as her fifth restaurant venture.
Beyond the three Firewater branches—located in Hitec City, Miyapur, and the newest addition— Financial District Dutta’s portfolio includes Kavyam – The Telugu Table, a South Indian restaurant in Jubilee Hills, and Tabla, an established, more traditional Indian restaurant with a presence in both Hitec City and Banjara Hills.
Transitioning from a corporate environment to F&B presented significant leadership challenges. “It was a drastic change,” Dutta emphasised. “My background, with an MBA and engineering degree, and a decade at Microsoft, was vastly different from leading a team where many members have limited formal education. The initial days were demanding, often requiring my presence from morning until midnight. I had to learn to adapt my communication style to their level,” she explained, highlighting the complexities of managing kitchen staff who excel in cooking but may lack communication proficiency.
Dutta also addressed the unique challenges faced by a female entrepreneur in this male-dominated sector. “Even today, despite progress, there’s a prevailing male ego,” she observed. “Unless they’ve worked closely with me and understand my approach, there can be a reluctance to accept female authority.” Despite these hurdles, she noted a positive familial dynamic within her F&B team. “However, one good part is my entire F&B team is now like a family. During my tenure at Microsoft, I worked in an environment dominated by men; there were only two or three female associates in my entire team. So, I’m accustomed to working with males, and I don’t feel the difference. But now, slowly, things are changing. While the teams are totally different in Microsoft, the thought process and egos can be similar,” she noted.
Building a brand like Firewater necessitated meticulous planning and investment. Dutta credits her partners, who possess over two decades of F&B experience through ventures like Tabla, for their crucial support in planning, project management, and finance. “We have an in-house team, and I primarily oversee operations and serve as the restaurant’s public face,” she stated. Leveraging established processes and recipes from their existing portfolio, the expansion of Firewater involved replicating proven models.
The initial Firewater branch faced a significant incubation period, not achieving break-even for nearly a year. “Ultimately, it’s the quality of food and service that drives customer loyalty,” Dutta asserted. She proudly highlighted Firewater Hitec City’s enduring success over 11 years, surviving even the pandemic, which she attributes to its culinary offerings.
Regarding future expansion, Dutta is currently focused on consolidating the operations of the three existing Firewater branches. “In today’s competitive market, marked by a proliferation of new restaurants and aggressive discounting, our priority is to ensure each outlet performs optimally,” she explained. The new Firewater location is strategically designed as a family-oriented establishment. “Perhaps in two years, if this branch stabilises and market conditions are favourable, we may consider expanding and opening two additional outlets in Dilsukhnavar and Nagole,” she added.
Firewater’s menu strategy is highly localised. “The menu here is specifically tailored to this area’s demographics, with more fusion food and unique cocktails,” Dutta clarified. This contrasts with the similar menus at the Hitec City and Miyapur branches. “We conduct thorough market demographic studies to understand customer preferences,” she emphasised, citing the inclusion of chicken tikka quesadillas as an example of blending global and regional flavours.
Dutta identified staff retention and the acquisition of quality personnel as paramount challenges. “The intense competition means staff are frequently lured by higher offers, making it difficult to maintain skilled teams. This challenge is compounded by the lack of formalised training within the industry, leading to issues with skill levels,” she explained.
On the subject of food aggregators like Zomato and Swiggy, Dutta articulated a nuanced perspective. “For dine-in, the commission isn’t a major issue, but for deliveries, it’s exorbitant,” she stated. “Aggregators’ high commission rates of 25-27%, additional charges, and demands for promotional offers significantly impact profitability. After all these deductions, 50-55% of revenue can go to them,” she revealed. While acknowledging their utility as a marketing tool for visibility, she stressed that “profitability in deliveries is negligible unless you’re a home-based business, given the overheads of running a full-fledged restaurant.” She mentioned the government’s ONDC model as a potential solution to standardise commissions.
Firewater’s marketing strategy primarily leverages Instagram, vlogger collaborations, and direct bookings through platforms like Zomato and Swiggy. Dutta highlighted the importance of customer retention, proudly stating that approximately 30% of their clientele are repeat customers. While the Hitec City branch benefits from significant walk-in traffic, the newer location currently relies more heavily on aggregator-driven business due to its developing surroundings.
Regarding future expansion beyond Hyderabad, Dutta reiterated her focus on solidifying the current operations. “Our foundation needs to be strong before we consider broader expansion. Rapid expansion can dilute quality, so I prefer a steady approach,” she affirmed. While not actively pursuing franchises, she indicated an openness to the possibility of suitable partners emerging, “We may explore franchising in the future, but only if it aligns with our standards and vision,” she concluded.
asmita.mukherjee@saffronsynergies.in
