My Abu Dhabi Salary: ‘I earn Dh10,000 per month running a restaurant’

Ammar Pardawala has dedicated a decade's worth of savings to his business and continues to reinvest all of his income back into the venture

Ammar Pardawala along with his restaurant employees. He says his monthly expenses amount to Dh30,000. Victor Besa / The National

After working in the food and beverage industry for about 15 years, Ammar Pardawala opened his own restaurant in Abu Dhabi in March.

The Indian, 37, invested 10 years’ worth of savings in his restaurant, AP Kitchen Delights, on Khalifa Street.

Mr Pardawala, originally from Mumbai, has been in the UAE for 10 years and lives in Abu Dhabi with his wife and two children.

“Food has always been my passion and during the Covid-19 pandemic, my wife and I started a small home-run catering business alongside our full-time jobs. While this venture did not generate significant income, it was an immensely fulfilling experience,” he says.

“Last year, I quit my job as a restaurant manager to pursue my dream of running a restaurant. My wife continues to work full-time in the research industry to support us.”

He completed a hotel management diploma from Mumbai in 2007.

What was your first job and salary?

My first job was as a waiter in a Mumbai club in 2008 and the job paid me only 1,000 Indian rupees ($12) per month.

I then enrolled in a management training programme that prepared me to work in multiple departments of a hotel, which led to a promotion as a food and beverage executive.

I gained holistic knowledge of how to run a business. Since then, I have had a goal to open my restaurant.

I then moved to Oman where I managed a textile factory catering unit from 2012 to 2014. My starting salary was 120 Omani riyals ($312) per month and it increased to 140 riyals later.

After working there for two years, I returned to India and later secured a job as a waiter at Asha’s Restaurant in Abu Dhabi in 2014. My salary was Dh3,500 ($953). I became a shift leader in six months and worked there for two years.

Later, I got a job as a supervisor at the Emirati restaurant Majlis Al Fareej for a monthly salary of Dh6,000 and spent two years there.

I then joined The Coffee Club as an assistant manager on a monthly salary of Dh5,500. I worked there for five years, during which I gained experience working in different outlets, dealing with suppliers and handling catering too.

I quit the company as a manager on a salary of Dh8,000 last August.

How much do you earn per month now?

I have invested Dh200,000 to set up the restaurant, which offers global cuisines.

Right now, I have not achieved break even, but I plan to earn an average of Dh30,000 per month which will help meet all my expenses and make a bit of profit, too.

Any restaurant takes around a year to break even. Meanwhile, if I manage to win some catering orders, events or tie-ups with companies, that will help me.

Currently, I earn Dh10,000 per month on average. All this money goes back into the business to pay salaries for three employees, utility bills and rent. However, I have monthly expenses worth Dh30,000.

Do you manage to save?

Currently, my savings are in the form of gold coins, but those are for my kids. I'm not able to save anything from the business now.

I used my savings accumulated over the past 10 years to start the business.

What asset classes do you invest in?

Nothing at the moment. But I plan to start investing in the future once my business starts growing.

I plan to have my business presence in three main locations in Abu Dhabi. This will help me cover the entire city through delivery partners.

I plan to open a second branch in Al Nahyan area, so I can connect to the city and Musaffah.

The third outlet will be in Khalifa City, which will help cover customers in Al Raha and Masdar City.

I also intend to participate in events in Abu Dhabi to increase exposure and market my restaurant.

Have you purchased property?

No, not yet.

Do you have any debt?

I only have a credit card, which I use to pay all my expenses. But I make sure to pay it in full at the end of the month so I don't incur penalties or extra interest fees. I also maintain a good credit score.

The initial credit limit on my card was Dh8,000, which has now been increased to Dh40,000 because of my good credit score.

Have you ever inherited a sum of money?

No. My dad worked as a salesman in a leather accessories shop in Mumbai and my mother was a home maker. I started saving after coming to the UAE.

My dad has his savings. But I remit money to them every month.

Growing up, were you taught how to handle your finances?

Yes, I was taught about money and also observed how my father handled it. He had a habit of saving money in fixed deposits in banks for 15 to 20 years.

I used to go to the bank to update the passbook. This helped me know more about saving money.

My father taught me about ways to save money and discouraged me from investing in risky shares to earn a quick buck.

What are your major monthly expenses?

The biggest expense is rent for the house and the restaurant, followed by staff salaries and the cost of food ingredients.

When I had a salaried job, I used to pay for transport. But now my restaurant is close to my house, so I walk. Other expenses include school fees and paying for the nanny.

How do you budget your salary every month?

I am trying to cut down on personal expenses and support the business. That is my top priority because I have a goal of opening three outlets.

But it takes time to establish the first outlet. Since it is a new brand, I am focusing on marketing, customer service, food quality and delivery partners.

Have you started saving for retirement?

The day I thought about starting a business, I stopped thinking of retirement. Now I have to keep working hard.

When I was a salaried employee, I had a fixed schedule. Owning a business, some days I relax a lot, other days I work very hard. But I never look at my watch because my business is my baby. I have to take care of it.

Do you have an emergency fund?

No, but I have a few gold coins, which I will liquidate in case of an emergency.

What do you spend your disposable income on?

I love to collect watches and own eight so far. Earlier, I was passionate about buying gadgets. However, they become outdated quickly.

I can pass on my watches to my son or son-in-law. The most expensive watch I own is a Seiko Automatic. Other brands I own include Fossil, Michael Kors and Tommy Hilfiger, among others.

Do you worry about money?

No. If you want to have money, work hard. I'm doing that so that sooner or later, money will follow.

What are your best money-saving hacks to offset inflation?

Inflation affects everyone. One way to hedge against inflation is to upgrade ourselves with knowledge and experience. This will help us to achieve more business or a higher salary.

What are your financial goals?

I want to open a few more outlets of my restaurant in the short term. In the long term, I would like to explore expanding my business to Dubai because it is a market with high potential.

What is your idea of financial freedom?

Start your own business, this gives you freedom.

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