Too Trendy To Last?
Hyderabad’s cafe business seems to be booming on one hand, and falling flat on the other. Glossy new spots pop up every few weeks, but many vanish without a trace. What makes some ventures thrive while others fold?
Every other weekend, a new cafe opens its doors here with a soft launch, an influencer dinner, and a carousel of mood-based interiors on Instagram. The temper is familiar: Exposed brick walls, neon slogans, croissants on gold-rimmed plates. But the buzz never lasts. A few months later, the space is empty. And then a new branding appears, only to fade out. What’s going wrong?
“It’s not the neon signs, it’s the food,” says food blogger Hayavadan Rao, who’s been tracking Hyderabad’s dining spaces for over a decade. “Everyone’s obsessed with aesthetics — the mood lighting, the playlist, the perfect croissant photo. But no one asks if the food is worth returning for. That’s where most places go wrong.”
Rao knows the cycle well — he once tried running a cafe himself. It shut down within six months.
“I was paying Rs 1 lakh for a 1,000 sq. ft place. It wasn’t even prime real estate. Rents are insane,” he says. “When rent eats up most of your revenue and you’re also spending lakhs on interiors, there’s nothing left for staff training or quality ingredients. You’re already on the back foot.”
He’s not alone in this assessment. Chef Shyamal Raju Annamneedi, who heads kitchens at Ironhill India and Prost, agrees. Prime neighbourhoods like Jubilee Hills, Film Nagar and Madhapur now command rents that were unthinkable a few years ago. “Space that used to go for Rs 50,000 now costs Rs 1.5 to Rs 2 lakh,” says Chef Shyamal. “Unless you’re pulling in heavy footfall from day one, it’s not sustainable.”
Terra, once a favourite among Jubilee Hills cafe hoppers, opened with full influencer fanfare — fairy lights, macarons, curated flat lays. It shut down in under eight months. The Pink Elephant, a fine-dining experiment in Madhapur, closed temporarily just ten months after its 2023 launch. Diablo, a bar and kitchen that opened with a huge marketing push, now struggles with weekday footfall.
The survivors
Concu, for instance, has managed to expand to 13 outlets without diluting its brand. Customers know exactly what to expect with respect to menu and plating, including crowd-favourite desserts like their signature chocolate éclair. “The eclair tastes the same as it did a decade ago,” says Rao. “That kind of consistency is rare.”
Long-time patrons agree. “I only come to Concu when I need to get work done. It’s familiar, quiet enough, and the coffee does the job,” says Rohan N, a regular. “Sure, they’ve got their faults. The playlist hasn’t changed in years, and sometimes the service is slow. But they’ve figured out what matters. There’s a certain stability there. It’s not perfect, but it works.”
Roastery Coffee House, with its shaded courtyard and steady stream of regulars, is another example. It hasn’t drastically changed its offerings over the years, but continues to draw packed crowds for its coffee and calm.
What success looks like
Entrepreneur AK Solanky, who co-founded Tamasha and Twin Tiger Chef Co., says the problem also lies in the mindset of new cafe owners. “Back in the day, people running restaurants were from the industry, it was their bread and butter. Now, it’s the real estate guys or fashion folk opening cafés for clout. They don’t want to put in the daily effort.”
He adds, “You can’t just open a cafe and walk away. You’ve got to be there. Fix what’s broken. Stay in it.”