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Why Most Restaurants Fail in the First Year — And How Akshay Dutt Rewrites Their Fate

Updated: Sep 16

Written By Abantika Paul

Presented By Delhi Royale


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With restaurant consulting experience across India and Oman, Akshay Dutt has become a trusted name in the hospitality sector. As the founder of a successful hospitality practice and owner of Layali Al Warda, Dutt bridges operational precision with emotional storytelling. His deep understanding of market dynamics, cost control, and brand positioning has helped struggling restaurants thrive in an increasingly competitive industry.
Layali Al Warda Owner-Akshay Dutt

Akshay Dutt F&B Consultant


With restaurant consulting experience across India and Oman, Akshay Dutt has become a trusted name in the hospitality sector. As the founder of a successful hospitality practice and owner of Layali Al Warda, Dutt bridges operational precision with emotional storytelling. His deep understanding of market dynamics, cost control, and brand positioning has helped struggling restaurants thrive in an increasingly competitive industry.


How To Run A Successful Restaurant


Let us see how his journey continues to shape the future of dining experiences across borders.


Why Restaurant Business Fail In India


Common Pitfalls Leading to Restaurant Failures


Despite the myth that 90% of restaurants fail in their first year, Akshay Dutt points out that the actual figure is closer to 17%. However, those that do close often share predictable flaws: Insufficient Market Research: Many enter the industry based on passion, ignoring critical data like local demographics, competition, and spending behavior. Poor Financial Oversight: Restaurateurs often overlook hidden costs such as labor, depreciation, and rent, focusing narrowly on food margins. Unsustainable Rentals: High-rent locations with low footfall can break even the most exciting concepts. Undertrained Staff: Service quality is as crucial as food; lack of staff training undermines customer experience. Absentee Ownership: Dutt emphasizes that restaurants demand hands-on leadership, especially in the early stages.
Akshay Dutt-F&B Expert

Despite the myth that 90% of restaurants fail in their first year, Akshay Dutt points out that the actual figure is closer to 17%. However, those that do close often share predictable flaws:


  • Insufficient Market Research: Many enter the industry based on passion, ignoring critical data like local demographics, competition, and spending behavior.

  • Poor Financial Oversight: Restaurateurs often overlook hidden costs such as labor, depreciation, and rent, focusing narrowly on food margins.

  • Unsustainable Rentals: High-rent locations with low footfall can break even the most exciting concepts.

  • Undertrained Staff: Service quality is as crucial as food; lack of staff training undermines customer experience.

  • Absentee Ownership: Dutt emphasizes that restaurants demand hands-on leadership, especially in the early stages.


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    Restaurant Consultant-Akshay

Restaurant Type


Restaurant Formats Built for Long-Term Sustainability


According to Akshay Dutt, Quick Service Restaurants (QSRs) continue to be a dominant force, particularly when they integrate mobile ordering, digital payments, and seamless delivery platforms. Dutt believes the QSR model will remain highly practical, with the Indian QSR market projected to reach ₹43.5 billion by 2030. He also notes a marked shift toward restaurants that embody sustainability and health-conscious practices, which appeal especially to Gen Z and millennial diners. Hybrid models that support dine-in, takeaway, and delivery simultaneously are another stronghold, offering restaurants multiple revenue streams. Dutt also emphasizes the enduring value of authenticity, particularly for regional cuisine specialists who offer a genuine cultural narrative. Finally, he highlights the growth of casual dining experiences that are enhanced, not replaced, by technology. These venues use tech tools to streamline operations while maintaining warm, human-centered service.
Akshay Dutt's View On Trending Restaurant Formats

According to Akshay Dutt, Quick Service Restaurants (QSRs) continue to be a dominant force, particularly when they integrate mobile ordering, digital payments, and seamless delivery platforms. Dutt believes the QSR model will remain highly practical, with the Indian QSR market projected to reach ₹43.5 billion by 2030. He also notes a marked shift toward restaurants that embody sustainability and health-conscious practices, which appeal especially to Gen Z and millennial diners.


Hybrid models that support dine-in, takeaway, and delivery simultaneously are another stronghold, offering restaurants multiple revenue streams. Dutt also emphasizes the enduring value of authenticity, particularly for regional cuisine specialists who offer a genuine cultural narrative. Finally, he highlights the growth of casual dining experiences that are enhanced, not replaced, by technology. These venues use tech tools to streamline operations while maintaining warm, human-centered service.


Marketing Strategy For Restaurants


Branding and Storytelling as Business Essentials


In Akshay Dutt’s view, branding and storytelling are no longer optional in the hospitality industry; they are fundamental. He believes that modern consumers don’t just buy food; they buy meaning, emotion, and identity. Whether it’s a family recipe handed down through generations or a story of sustainable sourcing, diners want narratives that resonate with their values and beliefs. Staff are not merely employees; they are ambassadors of the brand story. Their training should focus as much on narrative delivery as it does on service skills. In the digital age, platforms like Instagram and short-form video content are critical in amplifying a restaurant’s voice. However, Dutt cautions that the digital presence must reflect the real-world experience. The ultimate goal is to create a consistent, emotionally resonant identity that connects with guests long after their meal is over.
Akshay Dutt's Emphasis on Branding & Storytelling

In Akshay Dutt’s view, branding and storytelling are no longer optional in the hospitality industry; they are fundamental. He believes that modern consumers don’t just buy food; they buy meaning, emotion, and identity. Whether it’s a family recipe handed down through generations or a story of sustainable sourcing, diners want narratives that resonate with their values and beliefs.


Staff are not merely employees; they are ambassadors of the brand story. Their training should focus as much on narrative delivery as it does on service skills. In the digital age, platforms like Instagram and short-form video content are critical in amplifying a restaurant’s voice. However, Dutt cautions that the digital presence must reflect the real-world experience. The ultimate goal is to create a consistent, emotionally resonant identity that connects with guests long after their meal is over.


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How To Open A Food Restaurant


A Case Study in Successful Turnaround


While preserving client confidentiality, Akshay Dutt shares a composite case that illustrates his proven methodology: The Challenge: A 15-year-old family-run restaurant in Lucknow was losing relevance, struggling with high costs and dwindling footfall, especially among younger demographics. Intervention Strategies: Menu Rationalization: Reduced menu from 150 to 45 dishes, cutting waste and improving efficiency. Operational Discipline: Introduced SOPs, portioning controls, and kitchen workflow improvements. Digital Revamp: Built a compelling brand story centered on culinary heritage, trained staff in storytelling, and launched social media campaigns. Instagram followers jumped from 200 to 15,000 in 6 months. Financial Restructuring: Renegotiated supplier contracts and introduced real-time cost-based pricing. Results Achieved in 12 Months: 65% increase in revenue 35% boost in profit margins 40% growth in millennial and Gen Z footfall 25% reduction in food waste Google rating improved from 3.2 to 4.7
Akshay Dutt's Proven Strategies

While preserving client confidentiality, Akshay Dutt shares a composite case that illustrates his proven methodology:


The Challenge: A 15-year-old family-run restaurant in Lucknow was losing relevance, struggling with high costs and dwindling footfall, especially among younger demographics.


Intervention Strategies:


  • Menu Rationalization: Reduced menu from 150 to 45 dishes, cutting waste and improving efficiency.

  • Operational Discipline: Introduced SOPs, portioning controls, and kitchen workflow improvements.

  • Digital Revamp: Built a compelling brand story centered on culinary heritage, trained staff in storytelling, and launched social media campaigns. Instagram followers jumped from 200 to 15,000 in 6 months.

  • Financial Restructuring: Renegotiated supplier contracts and introduced real-time cost-based pricing.


Results Achieved in 12 Months:


  • 65% increase in revenue

  • 35% boost in profit margins

  • 40% growth in millennial and Gen Z footfall

  • 25% reduction in food waste

  • Google rating improved from 3.2 to 4.7 stars



Plan Restaurant Kitchen


Akshay Dutt’s insights show that success in hospitality today depends on far more than food. It demands data-driven decision-making, customer-centric branding, operational discipline, and above all, a compelling story. With his unique blend of experience, empathy, and execution, Dutt continues to empower hospitality brands to not only survive but thrive in an ever-changing landscape.
Restro Solutions

Akshay Dutt’s insights show that success in hospitality today depends on far more than food. It demands data-driven decision-making, customer-centric branding, operational discipline, and above all, a compelling story. With his unique blend of experience, empathy, and execution, Dutt continues to empower hospitality brands to not only survive but thrive in an ever-changing landscape.

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Explore The Expertise Of Akshay Dutt Restaurant Consultant, Discover Tips On How To Run A Successful Restaurant And Uncover The Truth Behind Why Restaurant Business Fail In India. Learn To Identify The Right Restaurant Type, Build A Game-Changing Marketing Strategy For Restaurants And Understand Step-By-Step How To Open A Food Restaurant. Master The Art To Plan Restaurant Kitchen With Precision. Find Out More At Delhi Royale Luxury Lifestyle Blog https://www.delhiroyale.in/luxury-lifestyle-blog

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