This PropTech Startup Idea from the 1001 Startup Ideas collection of YoStartups is about Turning Restaurants into Co-working Spaces. The business idea is to tie-up with restaurants and converts them into co-working spaces during the day. There are a lot of restaurants in every city which are well designed and furnished. These restaurants open late or do not do a lot of business during the day. The idea is to convert these spaces into co-working spaces during the day leading to some additional revenues for the restaurant owners.
Market Definition | Turning Restaurants into Co-working Spaces
It is predicted that 10,000 co-working spaces will be opened during 2016 across the globe. There is an ever-increasing demand for co-working spaces because of a rise in the number of freelancers and startups in the world. It is critical to note that India is second only to the USA when it comes to the number of freelance professionals in the world. India has about 15 million freelance professionals. About 1.5 million professionals graduate every year in India. This apparently makes India a key market for co-working spaces.
Competitor Analysis | Turning Restaurants into Co-working Spaces
There are a lot of co-working spaces in India, which are doing very well. There are companies like Bangalore Alpha Lab, Bangalore Co-working Hub, Cowork India, Jaaga, etc. which own co-working spaces in India and are doing well. The biggest challenge for such co-working spaces is the real estate cost or rentals. Real estate price makes running a co-working space not very profitable. With this model, the biggest challenge of real estate cost will be mitigated. Spacious is working on a similar model in the United States of America. However, the business model proposed in this article is a little different from the one followed by Spacious.
Pain Point & Target Audience | Turning Restaurants into Co-working Spaces
The targeted customer market for this business is “startups and freelancers”. The startups and freelancers usually do not look to open an office unless they have a steady stream of income and prefer to work in such spaces. Currently, the co-working spaces in India are less in number and located in only some places. With this proposed model, these spaces can be created in every locality without the pressure of running these areas at 100% capacity.
Value Proposition | Turning Restaurants into Co-working Spaces
Currently, the co-working spaces work in a fashion that a customer takes up space at a monthly rental, which includes access to individual facilities as well at one center. With the proposed model, the customers can choose whichever area is comfortable for them. The subscription plans can be made in a fashion that a client gets access to a center of his/her choice but also gets a few hours of access to other centers for a few hours whenever needed.
Business Model | Turning Restaurants into Co-working Spaces
The startup would tie up with tie up with restaurants on a revenue sharing model. The restaurants will let the co-working space customers use its space during daytime till 5 or 6 pm. A customer will have to choose a plan and select a home center (from where the customer will usually work). Because there are no real estate costs involved, the services can be offered at a discounted price from the prices offered by other co-working spaces in the country. Although the customer will choose a home center from where he will operate, he will be granted access to other centers for a few hours for any meetings that they might want to hold in other parts of the cities or case of travel, the customers can operate out of the network of centers.
Way to market | Turning Restaurants into Co-working Spaces
Since, most of the freelancers are situated or located in the metropolitan cities so, it is advisable that the startup starts with one of the metropolitan cities. Bangalore could be a great place to start with and perfect the model. Later, this could be scaled to the other main cities in the country as well.
Good Read: APP FOR SPLITTING RESTAURANT BILLS
Milestones | Turning Restaurants into Co-working Spaces
The key would be to make sure this model is successfully implemented in one major city at first. It would need a little research on restaurants in the city and some convincing of the restaurant owners by suggesting the kind of revenues this can earn for them. Successful implementation of this model with the initial set of restaurants will set the ball rolling for future success.
Investment Needed For Prototyping | Turning Restaurants into Co-working Spaces
For testing & building the prototype, pitch for raising 50K USD from angel investors or incubators like Nasscom 10,000 startups. There should be no office rentals or salary payout; the entire budget should be apportioned for customer acquisition and technology.
Team Capability | Turning Restaurants into Co-working Spaces
You would need to have a person with facility management experience as the co-founder to ensure that restaurants are left in good shape for the evening once used by freelancers in the morning.
Investors / Expert Take | Turning Restaurants into Co-working Spaces
Co-working spaces are still in the maturation stage and is a hotcake for investors right now. It was estimated that Co-working industry raised around 1 Billion USD during the last year. Considering the early mover advantage in India, investors would be looking at this product very favourably. This kind of business would attract a lot of early interest from facility management companies as well. Companies like JLL and CBRE may look at this product favorably, considering the options it opens for future businesses.
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