Sagar Daryani Navigating Challenges with Innovation during the Pandemic

The COVID-19 pandemic sent shockwaves through various industries, particularly the Food and Beverage (F&B) sector, which witnessed a severe downturn. Sagar Daryani, CEO and Co-founder of Wow! Momo Foods, understood the gravity of the situation and acted swiftly to ensure the survival of his business.

Speaking at the ‘SmashUp! 2020’ online conference, Sagar discussed the need for resilience and innovation during challenging times. He emphasized the importance of adaptability and experimentation, highlighting how Wow! Momo successfully launched Wow! Momo Essential Services in April 2020 to deliver essential goods. This initiative enabled the company to partner with brands like ITC, Nestle, Emami, and P&G to provide a wide range of essentials, from fruits and vegetables to FMCG products and wellness items.

Survival over Dreams:

Sagar acknowledged that the pandemic required entrepreneurs to focus on survival rather than pursuing their dreams. He shared a valuable insight: in times of adversity, it’s essential to keep moving forward, even if it means taking smaller steps. For Sagar and Wow! Momo, this meant leveraging their existing strengths and expertise to explore new avenues. Wow! Momo‘s decision to venture into essential services stemmed from the realization that home delivery of essentials was taking up to 48 hours. Leveraging the brand’s strengths and experience in food delivery, Sagar and his team launched Wow! Momo Essential Services within two weeks of the lockdown’s implementation.

Achieving Milestones in Difficult Times:

This new venture helped Wow! Momo generate revenue of Rs 2 crore in April, a substantial achievement considering the challenging circumstances. While it represented only a fraction of the brand’s annual revenue, it played a vital role in maintaining cash flows. Sagar’s ability to pivot and respond swiftly to changing market conditions illustrates the importance of staying agile during crises. Sagar revealed that Wow! Momo achieved nearly 90 percent of its revenue from the delivery business, with 190-200 out of its 345 retail outlets currently operational. He stressed the importance of maintaining stringent hygiene and safety measures to reassure customers and ensure food safety. This reflects the broader shift towards a new normal in the F&B industry, characterized by heightened health and hygiene protocols.

Strategic Insights:

With restaurant capacity restrictions in place, the new normal includes transforming a 100-seater restaurant into a 50-seater establishment to adhere to social distancing guidelines. Sagar emphasized the need to conserve cash and reduce losses rather than aiming for profits in the short term. This strategic approach to financial management aligns with the realities of the pandemic era.

Sagar outlined Wow! Momo’s future plans, including the introduction of Wow! Momo Select, where retail outlets will offer select essential items, and the possibility of venturing into task-running services. He predicted increased collaboration, mergers, and acquisitions in the F&B industry, as well as the emergence of hybrid formats. These forward-looking initiatives reflect Wow! Momo’s commitment to innovation and adaptability.

In conclusion, Sagar Daryani’s journey through the pandemic underscores the resilience and adaptability required of entrepreneurs during challenging times. Wow! Momo’s ability to pivot and innovate in response to the crisis demonstrates the importance of embracing change and finding new opportunities in adversity. Sagar’s insights serve as a valuable lesson for entrepreneurs facing unprecedented challenges, highlighting the power of innovation and the importance of prioritizing survival over dreams during turbulent times.