As Faizi grows up, his sisters get married one by one and his father marries for a second time. Faizi hopes to be a chef, much against his father's aspirations. Faizi goes to Switzerland to study hotel management at the University of Lausanne. When he returns with much fanfare after the course, it is revealed that he has secretly studied to become a chef and not hotel management. This shatters Razak's dream of opening a five-star hotel in his hometown (Kozhikode) and costs Faizi a marriage proposal from a wealthy family. Razak had wanted Faizi to marry a close friend and business tycoon's daughter Shahana.
A five-star hotel named "Beach Bay" next door wants to acquire the land on which Ustad Hotel stands. Kareem having incurred lakhs in debt was at the mercy of his bank which was conspiring to seize the restaurant and give the property to the five-star hotel. Faizi tells the owner of the Beach Bay that he will not allow him to take over Ustad Hotel's property. The owner then bribes the local health department and gets Ustad Hotel closed down because of unhygienic conditions.
Faizi collects money from the employees and renovates the hotel. Shahana, too, has realized the futility of her family's orthodox nature and comes calling. She joins Faizi and they reopen the restaurant, which becomes very successful, enabling them to clear the debts. Faizi then receives a new job offer to work as an executive chef in a restaurant in Marseille, France.
Filming began in January 2012 and the main location was Calicut Beach. It took a full day for art director Anand to build the restaurant on the beach-side. A report by The Hindu said, "There are quite a few people on the beach and they are surprised to see a new hotel named 'Ustad Hotel' that has sprung up overnight. It is only a little later that visitors to the beach realise that it's not a real hotel, but the set for Anwar Rasheed's new film Ustad Hotel!"[20]
Set in the homely land of Kozhikode, Kerala. Ustad Hotel is a story that is like a Dum Biriyani with all the necessary flavours; the aroma of it pulls you to it and leaving you with a great after taste. Karim ka played by Thilakan leaves the most impression on me every time I rewatch. He's this wise old master type character trying to make ends meet at his hotel while holding a level of detachment from everything.
We see that while he yells at Feyzee to go study, he expects his daughters to complete household chores like cooking. While Feyzee enjoys his time in the kitchen with his sisters, his father wants him to adhere to the expected gender role of a man and focus on his education and career. However for Feyzee who is largely influenced by his sisters, cooking is a way to bond with his siblings and express his individuality. Thus, knowing his father would not support his ambition of becoming a chef, Feyzee lies to Abdul that he wishes to study hotel management abroad and instead enrols at a culinary school.
When Kareemikka finds him a job as a chef at the nearby five-star joint, Feyzee is excited to work in a place which he feels matches his calibre more. However, Feyzee realises that beneath the glitz of five star hotels there is actually an insidious corporate greed and that the refined exterior hosts customers who are often snobbish and elitist.