Chapter 4

The Biggest Mistake in the Food Business

Almost every new entrepreneur must begin by asking:

"Who is my customer?"

It sounds like the right question.

Unfortunately, it is incomplete.

Even the better question will be:

"When does this person become my customer?"

Think about it.

The same individual behaves very differently on different days.

On Monday morning, she may be a busy office-goer looking for a quick breakfast.

On Friday evening, she may become a family member planning dinner outside.

On Sunday afternoon, she may become the host of a birthday celebration.

During Diwali, she may become a gift buyer.

During Navratri, she may search for fasting foods.

During summer vacations, she may look for convenient family meals.

The person has not changed.

The situation has.

And situations influence buying decisions much more than we often realise.

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People Do Not Buy Food for the Same Reason Every Time

Food is not just food.

Sometimes people buy convenience.

Sometimes they buy celebration.

Sometimes they buy health.

Sometimes they buy nostalgia.

Sometimes they buy prestige.

Sometimes they simply buy relief because they are too tired to cook.

Every one of these motivations creates a different market.

Understanding this difference is one of the greatest strengths of successful food entrepreneurs.

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The Same Customer Can Become Many Different Customers

Let us look at one simple example.

Meet Mrs. Sharma.

She is thirty-eight years old.

She lives in Jaipur.

She has two school-going children.

Her husband works in a private company.

Now let us see how she behaves in different situations.

Monday Evening

She returns home tired.

Nobody feels like cooking.

She orders dal, sabzi and rotis from a nearby cloud kitchen.

Today she is buying convenience.

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Saturday

Her daughter has invited six friends.

Mrs. Sharma orders snacks and desserts from a Home Chef.

Today she is buying peace of mind.

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Diwali

She buys beautifully packed spice hampers for relatives.

Today she is buying relationships.

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Family Birthday

She hires a caterer.

Today she is buying celebration.

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Vacation

She purchases Ready-to-Cook products.

Today she is buying time.

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Same person.

Five different customers.

Five different expectations.

Five different opportunities.

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Mentor's Reality Check

Never assume you understand your customer simply because you know who they are.

Understand why they are buying today.

Tomorrow, the same person may make a completely different decision.

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Different Businesses... Different Customers

Every business model attracts customers differently.

A Home Chef often builds trust through personal relationships.

A Cloud Kitchen depends upon convenience and repeat orders.

A Party Order Specialist depends upon celebrations.

A Cooking Teacher attracts people wanting to learn.

A Food Influencer attracts attention before selling anything.

A Spice Business builds loyalty through everyday cooking.

Some customers may overlap.

Many will not.

The important thing is to understand which customer matters most for your chosen business.

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Where Do Your Customers Live?

Distance influences food businesses much more than many people realise.

Ask yourself:

Do they live within three kilometres?

Are they students?

Working professionals?

Apartment residents?

Industrial workers?

Senior citizens?

Joint families?

Independent homes?

Every locality has its own food habits.

A business that succeeds in one neighbourhood may fail completely in another.

Do not study the city.

Study your neighbourhood first.

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How Much Do They Earn?

Many entrepreneurs become uncomfortable discussing income.

Do not.

Income influences expectations.

It influences spending.

It influences frequency of ordering.

It influences celebrations.

It influences gifting.

It influences value perception.

A family earning ₹40,000 a month and another earning ₹4 lakh a month may both love your food.

But they will not evaluate it in the same way.

It is observed that higher the hierarchy levelsof spending the longer is the checklist for decision making

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What Do They Celebrate?

This is one area that most food businesses ignore.

Look around your own community.

Birthdays.

Anniversaries.

Housewarming.

Retirement.

Religious gatherings.

Festival celebrations.

Kitty parties.

Office lunches.

School functions.

Every celebration creates demand for food.

The more you understand these occasions, the more opportunities you discover.

Remember...

People rarely complain about spending on happy memories.

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How Often Do They Eat Outside?

Some families eat outside once a month.

Others order food three times a week.

Some enjoy restaurants.

Others prefer Home Chefs.

Some cook almost every meal.

Others depend heavily on convenience.

There is no universal customer.

Understand your own market.

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How Much Do They Cook at Home?

This question may appear strange.

It is actually very important.

Families that cook regularly evaluate food differently from families that rarely cook.

Someone who prepares dal every day knows roughly what it costs.

Someone who cooks once a week thinks differently.

The more your customers cook, the more realistic their expectations about pricing become.

That understanding is extremely valuable.

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What Does "Value for Money" Really Mean?

This is perhaps the most misunderstood expression in the food business.

Many entrepreneurs believe Value for Money means "lowest price."

Customers rarely think that way.

They ask different questions.

Was it worth what I paid?

Did it save my time?

Was the taste memorable?

Was the quantity sufficient?

Would I order again?

Would I recommend it to others?

Value for Money is therefore a combination of quality, convenience, consistency, trust and price.

Price is only one part of the decision.

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A Very Important Observation

A family knows approximately what it costs to prepare dal, vegetables or pulao at home.

They are generally willing to pay extra because someone else has done the shopping, preparation, cooking, cleaning and delivery.

But they are usually not willing to pay restaurant prices for everyday meals.

This is where many cloud kitchens make mistakes.

They copy restaurant pricing without understanding the customer's mental comparison.

Understanding this invisible comparison is one of the most valuable skills in food entrepreneurship.

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Opportunity Spotting

Instead of asking,

"Who are my customers?"

Start asking,

"In which situations do people around me spend happily on food?"

Your next business opportunity may not be hiding inside a recipe.

It may be hiding inside a birthday, a festival, a housing society, a corporate meeting or a family celebration.

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Before You Move to Journey 5

Think

Which three types of customers are most likely to buy from you?

Observe

Watch people ordering food during one ordinary weekday and one celebration. What differences do you notice?

Do

Prepare a simple "Customer Diary." Over the next week, write down ten occasions when people around you purchased food instead of cooking. Note why they bought it, not just what they bought.

Ready for Journey 5?

You now understand who your customers are and, more importantly, why they buy.

The next journey answers an equally important question:

What should you actually sell to them?

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Co-Author's Suggestion

I think this chapter introduces a concept that is a recurring philosophy throughout the handbook:

People don't buy food. They buy solutions to different situations.

If we quietly reinforce this idea in later journeys - product selection, pricing, party orders, cloud kitchens and value-for-money - the reader will begin looking beyond recipes and start understanding customer behaviour. 

In my view, that shift in thinking is one of the strongest differentiators of this handbook from conventional food business guides.

Mentoring Team 

Hello Kisan Food Innovation Lab