The COVID-19 pandemic brought unprecedented challenges to India’s food industry, with lockdowns disrupting supply chains, dining, and consumer behavior. Yet, the sector demonstrated remarkable resilience, with entrepreneurs pivoting to innovative models like cloud kitchens, DIY meal kits, and direct-to-consumer (D2C) platforms. Drawing from interviews with founders of fine-dining restaurants, food-tech startups, and specialty brands, this article highlights key financial and operational lessons learned during the pandemic that continue to shape their strategies. These insights offer valuable guidance for navigating future uncertainties.
1. Optimize Operations for Efficiency
Aditi Dugar, Director and Founder, Masque, Masque Labs, Sage & Saffron, TwentySeven Bakehouse
Efficiency was critical for survival during the lockdowns. Aditi Dugar’s brands, operating from a shared mill complex in Mumbai, leveraged their lean structure to adapt quickly. By hiring versatile, skilled staff and maximizing resource use, they minimized waste in produce and packaging. During the pandemic, they consolidated operations into a single kitchen, reducing overheads like rent and electricity. Innovations like DIY meal kits and a socially distanced drive-in dining event kept revenue flowing while engaging customers creatively. Lesson: Run a lean operation with flexible staff and shared resources to weather crises without compromising quality.
2. Build Robust Risk Management
Arshiya Bose, Founder, Black Baza Coffee Co.
As a social enterprise working with over 650 smallholder coffee farmers, Black Baza Coffee faced a near 50% revenue drop when cafes and institutional buyers shut down. Unable to pass losses to farmers, the company learned the importance of proactive risk planning. They now conduct rigorous risk assessments, factoring in threats like climate change, and diversify funding sources. During the crisis, their customer community crowdfunded a mobile ambulance in hours, reinforcing the value of community support. Lesson: Plan for risks like pandemics or supply chain disruptions and cultivate alternative revenue streams, such as community-driven financing.
3. Scrutinize Financial Agreements
Kainaz Contractor, Co-founder and Chef, Bhawan and Rustom’s Parsi Bhonu
Kainaz Contractor’s expansion plans for Bhawan were derailed by the pandemic, forcing a painful retreat from a rented space and a costly loan moratorium. Initially attracted by a low-interest, collateral-free bank loan, her team overlooked the fine print, leading to higher-than-expected repayment costs. The decision to prioritize cash flow over EMI payments during the lockdown proved costly. Lesson: Always read the terms and conditions of loans, especially from external sources, to avoid hidden costs that can strain finances during a crisis.
4. Prioritize Profitability Over Growth
Krishi Fagwani, Co-founder and CEO, Thrive Now
The pandemic forced food-tech startup Thrive Now to shift focus from rapid expansion to survival. By prioritizing profitability, they developed a direct ordering platform for restaurant partners, reducing reliance on aggregators charging 30–40% commissions. This pivot strengthened their bottom line and built resilience. Lesson: In times of crisis, focus on sustainable profitability rather than aggressive growth to ensure long-term viability.
5. Stay True to Your Brand’s Vision
Prateek Bakhtiani, Chef and Founder, Ether
Building a luxury brand requires unwavering commitment to quality, but the pandemic pushed Prateek Bakhtiani to make commercial compromises, like lowering prices and using cheaper packaging. While these moves ensured short-term survival, they diluted Ether’s premium identity. Refocusing the brand post-pandemic required significant time and investment. Lesson: Short-term fixes that compromise your brand’s core values can lead to long-term setbacks. Stay aligned with your vision, even in tough times.
6. Maintain Cash Flow at All Costs
Rohan Rehani, Co-founder, Moonshine Meadery
Moonshine Meadery, an alcohol beverage brand reliant on restaurants and retail, faced a complete sales halt during lockdowns. To survive, the team took pay cuts to avoid layoffs, extending their financial runway. They also pivoted to produce WHO-grade hand sanitizers, donating 40% of output while selling the rest to generate cash flow. This not only kept finances afloat but also boosted team morale by providing purpose. Lesson: Prioritize cash flow through cost-cutting and innovative revenue streams, while fostering team unity to maintain morale.
7. Embrace Digital and Consumer-Direct Models
Ruchi Jain, Founder and CEO, Taru Naturals
The pandemic accelerated Taru Naturals’ shift from B2B to B2C, with e-commerce becoming a lifeline. Transitioning to a private limited company required overhauling accounts and securing new licenses, a time-intensive but necessary process. The move to B2C brought upfront cash, enabling a cash reserve that proved invaluable post-COVID. Lesson: Invest in digital platforms and D2C channels to diversify revenue and build working capital for future stability.
Broader Insights from the Industry
The pandemic underscored the importance of agility and consumer trust. Entrepreneurs like those at Conosh, a food-tech startup, emphasized employee and customer safety, cost management, and doorstep services to adapt to changing preferences. Cloud kitchens and contactless dining gained prominence, driven by digital platforms and delivery models. Additionally, the crisis highlighted the value of gratitude and resourcefulness—entrepreneurs learned to ration scarce supplies and innovate with limited resources, such as using jaggery sparingly in menus.
Conclusion
India’s food entrepreneurs navigated the pandemic by embracing efficiency, risk planning, and digital innovation while staying true to their core values. From consolidating operations to prioritizing cash flow and consumer trust, these lessons are timeless. Whether you’re a budding entrepreneur or an established business owner, the pandemic’s takeaways—rigorous financial scrutiny, adaptability, and a focus on sustainability—will guide you through future challenges. Always consult a financial advisor to tailor these strategies to your business.
Disclaimer: The views expressed are the author’s and aim to educate. This article does not recommend specific products or investments.