The user, identified as ‘Stoned Butter chicken’, said he is a 25-year-old male, and initially had ₹1 crore debt, which his mother’s family helped reduce to ₹70 lakh by helping with ₹30 lakh due to worries over his situation.
Explaining the situation he wrote, “I’m 25M from India and could really use some outside perspective. I worked in a BPO from 2021 until I was laid off when the company lost its Swiggy process. During that time, I developed a strong interest in the food industry and always dreamed of running a cafe or restaurant.”
How did the debt pile on?
“In 2023 (aged 23), I started a small cloud kitchen/cafe with ₹2 lakh borrowed from extended family. The business initially did well. Demand grew quickly, so I expanded, took additional space, and eventually shifted to a larger location. The problem is that every expansion was funded through more borrowing. What started as a ₹2 lakh project gradually turned into nearly ₹1 crore of debt.”
Breaking down the approximate expenses and related debt, he added that mortgage loan was ₹45 lakh, with another ₹40-45 lakh borrowed from private lenders, for a total of around ₹1 crore. The latter he called “extremely expensive” — some charged around 10% interest per month, some required daily repayments of 1% of principal, closing the loan in 100 days.
“The restaurant generated revenue and had customers, but the debt burden became impossible to sustain. Cash flow was constantly being drained by interest and repayments. The stress got severe. I lost around 25 kg in a short period, and my family became extremely concerned,” he added.
The financial relief from his mother’s family came with the condition that the business be shut down, he wrote, adding that ₹70 lakh debt remains, for which mortgage EMI is ₹67,000/month.
Viable solution?
“Mother’s income: ₹15,000/month, Sister’s income: ₹36,000/month, my CIBIL score is badly damaged, and I have some kitchen equipment that wasn’t sold. My current thought is to start very small: Small cafe/fast-food outlet with around ₹2 lakh startup requirement and possibly combine it with a thrift store concept for additional income and lower interior costs,” he added.
He added that the plan is difficult because he doesn’t have access to easy funding and has already borrowed from most people to keep the previous business alive and sought advice on the way forward.
Here’s how netizens responded: ‘Same mistake twice’?
The top voted comment was simple: “There’s a saying ‘don’t do same mistake twice’”, with another user adding, “Expand your sales, not your debt & expenses. What were your initial numbers and ROI? There are these folks who sell vada pav for limited time from a tempo in andheri east / mahakali area. When it’s over, it’s over. They go home. Simplify, and maybe start a toffee service when you have preordered, so you don’t overstock.”
Another user shared advice from personal experiences, “I have run two bars in Goa (one mid successful, another one ended up with the manager flushing the money down the drain) I know two cents about this industry so advising you, try to grab a corporate job and pay off your debt. After paying off the loans or getting very close to it, if you still have the heart to restart something then go on with a cloud kitchen. Or a food cart would be more preferable. In Indian market currently, stalls are doing more business than cloud kitchens and restaurants (because people don’t have the spending power in India rn, the market is cooked). But my genuine advice will be, get a corporate job and never look back. People rarely make profit from food business.”
Overwhelmingly the advice was for OP to get a stable job instead of restarting in the very competitive food industry business.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
