Third Wave has only 1 year of runway left, with 70% of it's outlets being loss making š¤Æ
When you compete to serve the top 1% of India, obviously it will end up in losses
Neo1
Stealth
3 months ago
š
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TigOldBitties
Stealth
3 months ago
Sad that these companies don't prioritize profitability first than growth. This model of growth at all costs is now coming to bite many startups in their ass
Qwerty2398
Stealth
3 months ago
These businesses are not meant to be profitable. They were started to raise funds and founders made a ton of money. So the business was successful.
When they prioritise profit over growth people tag them as 'lala company' ig it's about execution irrespective of whatever be the outside noise.
Building consumer business is hard in India. Another reason I think is expanding quickly. Occupancy rates are low, average revenue per seat is average, operating expenses is high due to high rent, fancy interior and staff salaries.
Not really! If that were the case you wouldnāt see SRK, Ajay Devgan, Akshay Kumar and Tiger promoting Vimal.
The problem with third wave is they thought the 1% is ready to pay unrealistic amount for āexperienceā. End of the day, even the 1% wants value for their money and will only spend on stuff that is super exclusive.
Yes. 1% would pay for convenience, but yes experience not so much, when it really isn't that exclusive and there are tons of good alternatives available.
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Only two models work in India Massy or Classy. Anything in the middle will get crushed. Either you sell Vimal Gutkha or run an invite only night club.
TalkNinja
Student
3 months ago
exhausted š?
MightyLazyGeekStar
Stealth
3 months ago
Why canāt people focus on volume? That is where the real india lies. People will spend 20 rs daily at a chaiwaala instead of 200 at one.
Because most volume plays like that don't scale.
There's no brand in selling 10/20 rs chai. A local chaiwala will just trump your franchise.
Overpriced coffee in hipster cafes was a ZIRP. Like overpaid designers ans product managers.
Know the founders. Never felt they were the ultra fast growth kind. They have a new CEO who is running the show. Not surprised by this outcome.
I have always wondered this. I feel India as a market is very elastic. Value (price) or volume game. I am obviously a layman here
Nothing surprising, they will somehow run a great PR thereby pitching a dreamy story, then IPO, followed by investors exit. Ultimately they are selling sugar, what else can you expect !
AgreeableFreezing
Stealth
3 months ago
I have gone thru the outlets majorly. I have a plan for profit concept of Thirdwave
Isnāt this the norm in QSR and food outlet industry though. They had ~40 stores 2 years ago.
On an average a restaurant/ food outlet turns profitable in 2 years.
Once you learn making it home drinking at such cafe becomes once in a while affair
LooseGoose
Stealth
3 months ago
Not surprising. Most startups don't have more than few months runway at any given point of time unless they get funded.
Kachori
Student
3 months ago
Bhagwaan š„²
deadpm
Stealth
3 months ago
RIP every freelancers' free office space
Ek ā¹300 ki coffee leke pure din baithe rahoge to conpany to doobegi hi
Really want to understand what did they spend that 200 Crores on? Can someone please give a fair understanding of how this business works?
KhwaboKaSipahi
Stealth
3 months ago
Itās a culture thing. Takes time to catch up. Tapri people will take time to upgrade, marketing is necessary.
Looking at the over all revenue, both these companies have about the same amount of loss for the year. It tells me one thing, and one thing only, their marketing practices have to be more warm and assert a sense culture & community. But itās busy marketing itās chocolate croissant
This should get closed. The CEO should go to a chaiwala and learn how to make a profitable business. The chaiwala sell 5 ruppes chai and earn 30k for his home. These morons sell super over expennsive coffee and burn money. At least in tech business its about scale whats in coffee business?
