Victoria’s Cafe Malabar defying odds in difficult market

Victoria's Cafe Malabar started welcoming customers to its new location roughly two weeks ago.

As restaurants across the country shutter, a local eatery is earning accolades and settling into a coveted space on Victoria’s waterfront.

Cafe Malabar started welcoming customers to its new location off the Johnson Street Bridge roughly two weeks ago.

“So far it’s going great,” said co-owner and chef Karma Tenpa. “Lots of reservations, lots of walk-ins.”

The South Indian restaurant initially opened in 2023 in the Victoria Public Market, where the team shared a kitchen with other vendors. There, the service style was casual, focusing largely on to-go meals for the lunch crowd.

Now, staff said they’ve been challenged with managing a larger space, which accommodates more customers.

“We require a lot of staff,” Tenpa said. “The process of training and staffing, it’s quite stressful for us.”

The stress is paying off, as co-owner Kiran Kolathodan said reservations are rolling in.

“It’s been amazing,” he said. “It’s been … awesome to have a space that is our own.”

Over the past three years, Cafe Malabar has been flying high, taking the fifth spot on Air Canada’s top 10 list of best new restaurants.

Other restaurants haven’t fared as well. Recent closures include Tombo and Little Jumbo, which cited cost pressures as their primary challenge.

In order to make it in a difficult market, “You need to be a magician,” said Ian Tostenson, CEO of the

“You have to have a very disciplined approach to finance, to purchasing, to (human resources),” said BC Restaurant Association CEO Ian Tostenson.

The biggest challenge the industry faces is keeping the dining room full, he said.

“If you have a business that is going to require 90 per cent occupancy seven days a week, you’re going to have problems,” he said.

Cafe Malabar’s rent has risen from roughly $4,000 to $10,000 a month. The team hopes to host small events in its new space to bring in extra income.

“As a restaurateur, you just have to focus on customers and making sure your food excels,” Kolathodan said