‘It is important to have plan B in business’

In Chennai, he set up the first Hot Breads outlet in 1989. Then, after establishing the brand, he entered Dubai in 1994. Barely six months into operations in the first international location, Mahadevan faced a ‘no parking’ challenge in that location that hit the business hard enough to lead the partner to opt out of the partnership. “But I am a fighter. I did not give up. As I drove around in a sombre mood, an ‘opening soon’ sign of a 20,000 sq ft supermarket caught my attention. I went in and persuaded the owner to give me just 1 per cent – 200 sq ft of space, to accommodate my machines and boys to operate from there. When I also showed the $70,000 worth of machinery, the supermarket owner was sold on my idea. And, the smell of bread did the rest casting its spell on my customers,” says Mahadevan, whose meteoric rise has been fraught with varied challenges. “It is always important to have a plan B in business,” the entrepreneur adds. 

While looking back to retrace the path of success and glory, he recalls the numerous instances that have built his resilience and his business. “I wake up every day feeling alive to my responsibilities. I have earned enough money and now am in a position to give back,” Mahadevan says, sharing the episode of how his mother ingrained in him the lessons of giving. “She used to say if your need is Rs 60 out of the Rs 100 that you have earned, then the balance is to be able to give it to those who require it,” the highly-socially-committed entrepreneur says. Incidentally, his son, pursuing academics in the UK or his creatively-inclined daughter in Singapore are not-yet interested to take up reins of his businesses. 

“We understand customers and we always pride ourselves for being innovative,” he said, sharing the reasons for collaborating with the well-known Saravana Bhavan hospitality chain. “In Dubai, a good vegetarian meal was not available in the late nineties. The few that were in operation did not offer authentic variety. Then, I remember meeting Annachi (that’s how the powerful owner of Saravana Bhavan is called) to suggest the need for opening up in Dubai in 1998-99,” Mahadevan said. 

Elaborating on the association, he said “I do things that I know… he is good in making dosas and I am good at bread… why reinvent the wheel? I wanted a brand and I convinced him. So, the first unit in Dubai in 2000 had people from Sharjah, Muscat and Oman coming in. People worshipped his food and he did not know about his own brand strength. The queues would stretch to 1km... this 160-seater was on the second floor and customers would have their breakfast even if it meant waiting, drove around the city, would come back for lunch and again come back for dinner.” 

“Niche market is what we look for,” says Mahadevan, citing example of Melbourne, where people would queue up at 7 am for the store to open at 8.30-9 am during winter months (June there). “It is the same sambhar made by people, who have been working for him for 18 years,” he said, explaining how potent the authenticity and signature taste of Saravana Bhavan and Hot Breads could be.

“We have always been innovative,” Mahadevan said, dwelling on his maathi yosi ( think different approach). “Our bread could draw customers by smell,” he said. Acknowledging that there was good money in the confectionery business, he cites the example of the former Finance Minister P Chidambaram levying a 14 per cent central excise tax on confectioneries that crossed Rs 1 crore revenues. 

The home-grown entrepreneur, who has over 290 partnerships going across the globe. “Hot Breads is a science. It works on weighing machine, scale and proportion of flour, yeast and a 180 degree baking oven to turn out speciality products that have the same taste across all the outlets,” he adds. Apart from Hot Breads, his other ventures are Copper Chimney and Oriental Cuisines. The brands that he manages with his global partners are Benjarong, Sera, Ente Keralam, Wang’s Kitchen, Teppan, French Loaf and Planet Yumm.