A Michelin-starred chef shares the menu-building strategies he uses to navigate rising food costs
Behind the plush seats and pastel-pink interior of Chicago's first Michelin-starred Indian restaurant — and one of the rare Indian fine-dining tasting menus in the US — was a risk.
While restaurants continued to shutter or pivot in 2022 because of COVID-19, Indienne opened its doors.
"That was, I think, the biggest risk I've taken," said Sujan Sarkar, Indienne's chef and co-owner, who has more than 22 years of experience opening and managing restaurants around the world.
Sarkar told Business Insider that throughout the pandemic, the restaurant's vision — to spread a new Indian-food movement backed by high-end, flavorful dishes — stayed the same. "It can be profitable," he said. "We can build a successful business if we are consistent."
But today's turbulent market, while different from the pandemic's, presents fresh challenges. The Economic Research Service's Food Price Outlook predicts that food costs will increase by 3.5% in 2025, and supply chains show no sign of easing up anytime soon.
As inflation continues to grip the US and tariff negotiations remain in flux, causing companies to hike their prices, restaurant owners are preparing to face the brunt of the economic pressures. And while the industry has been battle-tested in the past, fine-dining leaders are perhaps at a crossroads: Shut down, pivot, or stay the course?
For Sarkar, it's all about sticking to what's worked in the past. "We have to be sensible about everything, because the diners who are coming to dine in our restaurant are coming for something that we are known for," Sarkar said. "We are seeing that people are really appreciating what we do, and that's why the business is also sustainable, even though the cost is rising."
BI spoke with Sarkar about his plans for navigating economic pressures and how fine dining could adapt to stay ahead.
Sujan Sarkar: We run four different tasting menus. We have nonvegetatian, vegetarian, vegan, and pescatarian. With the vegan menu, my cost is lower than the nonvegetarian menu because of no protein.
Our vegetarian and vegan menus do not include caviar, scallops, or lamb. When diners choose these menus, the price is only a $10 or $15 difference from the nonvegetarian menu. But when they opt for this, my profitability goes up because the food costs are lower. We also always offer a supplement course that people can add to their tasting for $15 to $24 extra.
I don't do last-minute makeshift dishes. So if you read a menu before you come, it's much easier for you and for me as a business. When we have the planning in place, we can control the cost. If my restaurant is full, I can manage because I know how much business we'll do, and my forecasting is much easier. I also have four other restaurants in the city. We share a lot of resources, and that also helps us cut costs.
How does simplicity and seasonality play into how adaptable you've been as a restaurant?
An example is how we work with farmers to get baby corn. I purchase a guaranteed minimum quantity of baby corn every week so I can get better pricing and farmers can have secure revenue. It's local and seasonal, which keeps my costs down and also gives the farmers business.
We don't grow a lot of vegetables here in the winter, so I have to rely on people from California who can get them.
But I can't only give them business in the winter — there isn't a written contract, but there's an understanding that I will give them yearlong business. So they are also doing things for us, like sourcing baby vegetables, micro herbs, and edible flowers. That way, the menu can be consistent, and we can set its cost.
Restaurants are going from highly priced menus to something affordable. We did just the opposite. We used to do a tasting and an à la carte menu when we started, but now we are only a tasting restaurant.
We are not creating a lower-priced menu to attract more diners. But almost a month ago, I opened a new restaurant called Nadu, where you can get food that is only à la carte.
We just took a different route at Indienne, but the people going appreciate that more because they know exactly what they're coming and paying for. We're getting an overwhelming response. It's still Indian food, but a much simpler version. Still, everything is cooked in-house, everything is flavorful, but now it's as close to our traditional Indian dishes as possible.
What advice would you give to emerging chefs or restaurateurs trying to build something ambitious in a time when margins may be tighter than ever?
I've waited almost 21 years to open Indienne. I could have opened before — I opened restaurants in so many different countries and all over America — but you have to be sure about what you're doing. It's not only about you when you open a restaurant. There are a lot of people who are going to trust you. If you fail, they fail as well.
You may be good at cooking, but that's only 30% of any restaurant. You have to learn so many other things. Your people-management skills, your accounting skills, your interpersonal skills, your PR — everything comes into play.
The restaurant business is very volatile, and the profit margin is getting limited every day. It's not easy, but just wait for the right time and get the right people by your side: investors, teammates, your mentor — everyone.
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