The entrepreneurial zest of a man behind Delhi’s Junkyard Cafe, Garam Dharam, who came back with a bang after facing an early shutdown

While pursuing his MBA from London in 2000, Umang Tewari was working part-time in a café, for experience and exposure in the hospitality segment. Hailing from a family with a background in construction, he had always planned to join the family business. However, his path took a sudden turn with a dream of opening his own café in his hometown, Delhi.

After completing his studies and on coming back to Delhi in 2002, the now 43-year-old observed that there was a huge gap in the hospitality industry.

“In Delhi, I couldn't find a neighbourhood bar or a café culture. It was the prominent places like Moti Mahal and other fine-dining restaurants that people preferred going to. Hence, I decided to draw on my experience and provide an altogether different ambience for people,” Umang says, speaking to SMBStory.

Though his father wanted him to join the family business, he gave his full support for Umang to take the bold step of starting up something of his own. Umang recollects that he wanted to go through training to start a café, but his father assured him that the real experience would come on the job. Thus, in 2002, he opened Oxygen Café and Bar in Vasant Vihar, with a capital of approximately Rs 35 lakh that he had borrowed from his father.

Oxygen soon became popular and a known hangout and party spot for Delhi’s young denizens. However, things suddenly hit a bad patch when Umang started receiving complaints from the nearby residential area on the noise and crowds. 

"My café was located in a commercial building. But, people from the neighbourhood started complaining for various reasons. My business was running fine, but I was forced to shut down,” Umang says.

For the next four to five years Umang worked in his family’s business, but with little satisfaction. He says, “There was no creativity in the construction business. It was a 9-to-5 monotonous job that I never wanted to do. I needed excitement in my work and I started working for it again.”

In 2009, he regained his long-lost energy and decided to target the hospitality segment again, with a big bang. He opened the Out of the Box Café in Delhi’s party haven, Hauz Khas Village. 

Branching out from ‘Out of the Box’

After the inaugural of Out of the Box, in a span of two years, Umang opened five more outlets of the café, including Raas, Junkyard Café, OMG, Scooter, Key, and The Vault, across Delhi-NCR. Speaking about the wide-scale expansion, Umang says that, at that time, the hospitality business was not overcrowded. “It’s not that I suddenly thought of expanding. From day one, when I started working towards my venture, I knew I would not stick to one thing. I need to make it multi-functional. So I worked on plans for pubs, cafés, and fine-dining places. It’s just not about targetting youngsters, but also about families and college-going students too. It should be a place for all.”

Today, Big Fish Ventures records a turnover of 15-20 percent of their investment with the steady growth of Local at CP, which has also been franchised at Gurgaon, Sector- 29, and with Garam Dharam, which is already franchised at Chandigarh, Ludhiana, Mohali, Noida, and Faridabad. Plans for The Junkyard Cafe at Chandigarh, Ludhiana, and  Faridabad have also been finalised. 

Market size and competition

“Today, anyone comes up and opens a café or bar, whether or not they are aware of the business. When I stepped into the industry, there were a handful of people who knew how to run the business, and the competition was healthy,” Umang points out, adding, “Many new players who enter the market have no patience. They use marketing gimmicks and shortcuts to earn instant success, which results in failure. That’s why many new pubs and restaurants shut right after they are opened.” 

The market size is also restricted as the strict government laws and policies hinder individuals from entering the segment, he says. 

Major challenges

Talking about the challenges, Umang says that the licensing process has become very tedious. “Not only the liquor licence, but getting the fire NOC has also become a hassle, and this is the primary reason why people these days refrain from entering the hospitality industry. We need permission for outdoor and terrace seating. In contrast, a chaiwala needs no permission to prepare and serve on the road.” 

Umang also points out the laws framed for supplying sheesha in restaurants, adding that he found all these laws and policies troublesome.

The way ahead

Umang shares that he is planning to open one of Asia’s biggest restaurants in the near future, covering approximately 60,000 sq ft area, in Garden Galleria, Gurugram. He is also planning to establish his brands pan-India, while continuing to give out franchises as well.

(Edited by Athirupa Geetha Manichandar)