A 25-year-old Redditor identified as 'Stoned Butter chicken' has shared his struggle to recover from ₹70 lakh debt incurred from a failed restaurant business. According to reports from Mint, the user initially had ₹1 crore debt that his mother's family helped reduce to ₹70 lakh by providing ₹30 lakh due to concerns over his situation. The debt accumulated from a cloud kitchen/cafe venture that started with ₹2 lakh borrowed from extended family in 2023, when he was 23 years old.
As reported by Mint, the restaurant's total debt structure included a ₹45 lakh mortgage loan and ₹40-45 lakh borrowed from private lenders. The private lenders charged extremely high interest rates, with some around 10% per month and others requiring daily repayments of 1% of principal, resulting in loan closure within 100 days. The restaurant generated revenue and had customers, but the debt burden became unsustainable due to constant cash flow drain from interest and repayments.
According to the Redditor's post on Mint, his family's combined monthly income totals ₹51,000 (mother earning ₹15,000 and sister earning ₹36,000). The ₹70 lakh debt includes a ₹67,000 monthly mortgage EMI, and his CIBIL score has been badly damaged. He currently has some kitchen equipment that wasn't sold and is considering starting a small cafe/fast-food outlet with a ₹2 lakh startup requirement.
As reported by Mint, the top-voted comment simply stated 'There's a saying 'don't do same mistake twice''. Other users advised against expanding debt and expenses, suggesting to focus on sales growth instead. One user shared personal experience from running two bars in Goa, recommending corporate employment to pay off debt before restarting in the food industry. The overwhelming advice from netizens was to secure stable employment rather than restarting in the competitive food business, citing low profit margins in the industry.
