Like the piping-hot bread in his many bakeries, M. Mahadevan rises to the challenges.
The first of these was in 1989, when Mahadevan set about converting the people of Chennai to his baked goods – folk who previously considered bread to be anything but fine fare.
After this, he set about expanding the business, establishing bakeries and restaurants across the globe. So bold was his vision, he even started selling bread in one of Europe's culinary capitals, Paris!
"Hot Breads Paris is doing very good business – the reason being that we are offering something different to the client," he says.
"We don't sell French bread to the French, we can't possibly outdo them. Instead, we cash in on our original recipes such as chicken tikka croissant and aloo capsicum croissant which happen to be the bestsellers on our list of products."
Yet despite his amazing business acumen, Mahadevan is very down to earth. Considering that he is in Dubai only for a couple of days and his schedule is packed with meetings, you would expect him to be in a hurry, but it turns out to be quite the opposite.
He arrives for our interview at 7.30 pm sharp – the designated time – and seems quite relaxed. He is flying to Europe the very next day to check on his businesses there and has a long itinerary to follow before he returns to his hometown and business base in Chennai.
Immaculately dressed in a T-shirt and trousers, the 51-year-old is very approachable. Throughout our chat, he appears to be someone who gauges his success by human standards and for whom money happens to be incidental.
Best known as the man behind Hot Breads – a familiar brand to many of us in the UAE – his move from academia to business is a fascinating tale.
Based in Chennai, but constantly on the move, developing new outlets and overseeing his burgeoning global empire, Mahadevan heads Oriental Cuisines, Copper Chimney South India, Abhinay Enterprises, B&M Hot Breads, Hot Breads International and Coastline Gourmet with stakes in numerous other ventures.
Dubai is his "second home" and most of his international ventures are based out of the Hot Breads LLC offices here.
Apart from the flagship Hot Breads brand, Mahadevan runs a chain of restaurants that serve South Indian, Thai, Chinese and Mexican cuisines from Botswana to London and Kuala Lumpur to Manhattan, among many other locations.
He has also introduced several chains of speciality restaurants throughout the world, such as the famous Kanchi restaurant in Paris and a Saravana Bhavan restaurant in San Jose, California.
Mahadevan's businesses have grown dramatically over the last two decades. While B&M Hot Breads handles the Hot Breads chain, all the speciality restaurants are under the umbrella of Oriental Pvt Ltd, based in Chennai.
There have been setbacks too, but they are a part and parcel of any business.
"We have gone wrong on several occasions, made wrong decisions but setbacks have always been a reason to come back with renewed energy," he says.
So what's the secret behind his relentless expansion spree?
"I like to grow with time and I am enthusiastic about starting restaurants in different parts of the world. I also like to travel, so it's basically something I enjoy doing and that's the reason why I do it," he says.
"For me business is not just a means to generate money, but also a way to give back to society. The real success lies in what difference I have made to society. That's my primary concern," says Mahadevan.
His global business empire is estimated to have a turnover of $65 million (about Dh240 million) per annum.
Foray into the world of business
Originally a marketing professor, Mahadevan was inspired to enter the restaurant business while teaching in the early 1980s.
"I began my career as a professor of marketing at Madras University and later moved to teaching catering management at the Taramani Catering College, where we had one chapter for entrepreneurs on how to run restaurants. I was teaching students break-even analysis in the catering industry," he says.
"I realised that the returns were quite high. That's when I started thinking about my own venture and opened my very first Chinese restaurant with a partner in Chennai in 1987."
Mahadevan does not come from a business family but has built his empire by astute planning.
"I was the first in my family to do business. My parents were both doctors and we had no clue how a business is run – practically, that is. I had studied it and was aware of all the theories, but never got around to doing it. Being a first-generation businessman, I realised that by the time you build your runway your engine conks out and just as you repair the engine the runway gets cracked. You don't know where the potholes are, but you learn to move on.
"It was not easy initially but you learn with time and experience. Integrity, sincerity and trust in people are the virtues that keep you in good stead – no matter what you do. I also completely trust people whom I work with. I think it's important to win their loyalty and trust.
"When we opened the first Saravana Bhavan in Toronto, I wired my Canada-based partner C$100,000 (about Dh320,000) and signed up a business deal with him without even meeting him. I was introduced to him through a mutual friend, spoke to him over the phone a couple of times and got started.
Today, the restaurant is doing excellent business and we have opened 17 Saravana Bhavans all over the world – including New York and Dubai – in less than six years."
Mahadevan has also established Anjappar restaurants in Kuala Lumpur, Dubai, Toronto and the UK.
"I am often called the start-up boy. People call me and I go where I sense opportunity. If I believe in the product and am convinced about its potential then I go ahead and do it," he says.
Recipe for success
Running these various businesses is much like a chef coordinating duties in a kitchen. But two vital ingredients are time management and delegating to the right people, says Mahadevan.
"I never take what's beyond my capacity. I only sleep four or five hours and I think I have a flair for people, which makes my work easier. Also God has been very kind and Lady Luck has been smiling on me.
"I make sure I spend 120 days a year with my family. Fortunately, I have some very good managers who I have grown up with and trust. And communication today is so fast. Through e-mails and the internet, sitting in my Chennai office, I know what's going on in my London restaurants."
According to Mahadevan, the important thing in the restaurant trade is establishing quality within the first few days of opening.
"The margins are high, provided you maintain quality in the food and the service," he says.
"Indian food is loved and appreciated all over the world and we are just giving them what they want with the bottom-line of quality with consistency.
Good food sells. If the décor is good, you come a couple of times but if the food is good you'll always come.
"We start with one advertisement in the papers to make our presence felt in the market and to inform people about us. The rest just follows. Once people come and enjoy our food, they are bound to come again and word spreads. Our advertising is mainly through word-of-mouth.
"If a restaurant does not break even within the first few months, the chances it will are remote."
He adds that another important factor in running a restaurant is having good local partners, especially in overseas ventures.
"I am good at choosing the right people – [namely,] my staff and partners who stand by me through thick and thin."
Mahadevan believes ardently in delegation and describes some of his businesses as "remote controlled", thanks to key staff.
"You have to delegate if you have to expand," he says. "If you want to sit with your hands on the cash register, then you'll have to be happy with just one shop."
The Hot Breads story
"Managing a restaurant is an art while managing a commercial bakery is more of a science," says Mahadevan.
"In a bakery everything is measured and if you follow the instructions you can't go wrong. I learnt this when I started my first bakery."
Hot Breads started in 1989 as a bakery in Chennai, which was followed by many outlets throughout India – some as stand-alone shops, others in malls and supermarkets. When he started out, he faced some preconceived ideas about bread in India, Breaking into the market in Chennai was quite a challenge.
"Bread was perceived as [a] sick man's food. What was needed, therefore, was a change in the mindset. We introduced different varieties of baked items, such as cookies, rolls and croissants, along with some innovative fusion recipes," he says.
The concept worked and Hot Breads outlets opened across India and overseas.
Today there are more than 20 outlets in the US, with a strong presence in Paris and Dubai. Hot Breads London is opening shortly while there are outlets in Botswana and Ghana in partnership with Woolworths.
The human touch
Mahadevan describes his approach as "business with a human touch".
The most satisfying aspect of his work, he says, is not how much turnover a unit generates but how many mouths it can feed in terms of the jobs it generates.
"In India, where there are so many underprivileged people, anything you do for society is like a drop in the ocean, but you have to begin somewhere. I feel happy that my outlets are generating employment for so many. The group employs more than 4,000 people in various restaurants and bakeries," he says.
By setting up efficient businesses from the outset, he hopes to safeguard the interests of employees.
"For us entrepreneurs at this level we can open and close [outlets], but it's the employment of so many that is at stake. We cut corners to keep our expenses low, but never compromise the quality of the food. We don't believe in closing down units as the jobs of so many employees would be risked. Instead, right from the beginning, we keep overheads low and try to break even."
Mahadevan says that eventually he would like to slow down and concentrate more on social work. Through his business, he has also found a way to give back to society.
"I believe if you want to help somebody, don't give them money: give them a skill. There an old saying that goes: if you want to help somebody, don't give them fish, teach them how to fish."
Following the same principle, he instituted the Winners training school last year in association with Chennai Corporation and the Rotary Club to help settle disadvantaged children. The school is for underprivileged and destitute boys.
"We promote boys who deserve a break in life. The Rotary Club screens the boys and sends them to us. We take boys from slums and school dropouts … and give them in-depth training in baking and hygiene so they can work in our bakeries. Throughout the training period of one year they are paid a stipend and after completing this training, they are placed in one of our 14 bakeries [in India].
"Senior boys are sent abroad to look after our overseas projects. The first batch was recruited by our bakery with Shoppers' Stop in Mumbai. What impressed me about these boys was their dedication and sincerity … out of the 24 boys, not one bunked classes even for a single day."
For Mahadevan, this is his unique way of giving back to society – helping people to help themselves.
Hot Breads in the UAE
The first Hot Breads outlet in Dubai was opened in 1995 in Meena Bazaar, which was closed after a couple of years because of parking issues.
However, Mahadevan did not give up on the idea of doing business in Dubai. About a year later, Hot Breads won a contract with Union Cooperative, Jumeirah, then gradually expanded – opening in Abu Dhabi in 2000 and Al Ain in 2003.
"I have always believed in Dubai ... the city is full of opportunities. If we don't cash in someone else will.
"We have stand-alone outlets for bread called Breadline We have opened an outlet in Al Ain and a Baker's Delight in Abu Dhabi," says Mahadevan.
"Breadline is coming to Dubai in mid-December. Breadline also sells in Lulu Hypermarkets."
In each country, Hot Breads recruits local people but its recipes are guarded with secrecy with only key staff members knowing them.
