Casual Dine
Casual Dine

l. Market Overview

Casual Dining is an exciting segment that revolves around specific cuisines or themes focusing on elaborate menus, quality of food and increased focus on presentation On the other hand, consumer indulgence is increasingly fuelled by non-occasion outings to these outlets.

In 2013, the size of the chain casual Dine market is estimated at INR 3,950 crore(USD760million). It is projected to grow at a CAGR of ~ 18% to reach a size of INR 9,035 crore (USD1, 740 million)by 2018.

II. Market Players

The Casual Dine market is led by domestic players, which are largely region-specific. There are a few international players present in the space which have a pan-India presence. With the growth in the segment, some new players have also entered the space and the existing ones have been innovating as well as expanding their operations albeit at a slow pace.

Currently, there are~1700-1800 Casual Dine outlets spread across India In the affordable and premium segment. Few examples include pizza Hut,Papa john’s, pizza express, Flavors of Italy, Café Zone, Rajdhani, Moti Mahal, Indigo Deli, Smoke House Deli, Amici café, etc. The player spread is the highest in the metros at 45%, followed by mini metros with 35% of all outlets. Across Tier I and Tier II+ cities, the outlet density is low.

In order to achieve sustained growth and attain scale, most of the players across segments are moving to express options that offer a quick and convenient casual dining experience. Players like pizza Hut, Rajdhani and Moti mahal have also started fast Casual Dine or Express formats.

III. Trade Dynamics

Product Sales and SKU Mix

In the Casual Dine segment, food dominates the SKU and sales mix at 81%and77% followed by beverages and deserts that are mostly side orders. A slight variation is observed in the mix based on formats and the cuisines offered. Overall, the SKU mix is directly proportional to the sales mix.

Sales Mix- Dine-in & Non- Dine-in

Dine-in and non-Dine-in options form a good mix to sales in the Casual Dine segment. Most of the sales (60%) are through dine-in as consumers prefer to sit at restaurants and enjoy the width of available product offerings.

Delivery services contribute a healthy 30% to sales, followed by takeaway which brings in 10% of total sales. This is primarily for outlets located in residential areas, office complexes, etc. where the consumer prefers getting food hand-delivery due to paucity of time.

Sales Mix – Peak Business Hours

The main meal times of lunch (1300-1600 hours) and dinner (1900-2200 hours) contribute to ~85% of the total sales at Casual Dine outlets. However, the peak business hours of outlets located in office complexes are more skewed towards lunch time.

 
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The Complex Landscape of Online Reservation Systems in India
The Complex Landscape of Online Reservation Systems in India
 

The landscape of dining in India has undergone a dramatic transformation with the advent of online reservation systems, which promised a revolution in convenience and operational efficiency. Traditionally, dining out in India often meant making a call to a restaurant, navigating through busy lines, and hoping to secure a table at the desired time. However, as the pace of life has accelerated, so have the expectations of diners. The digital age has ushered in a new era, where convenience is paramount, and this shift in consumer behaviour paved the way for online table reservations. Initially heralded as game-changers, platforms like EazyDiner, DineOut or Zomato have faced numerous challenges that question the long-term viability of this business model in the Indian market.

Economic Pressures and Competitive Dynamics

The primary allure of online reservation systems is undeniable: they offer an easy interface for consumers to book tables and provide restaurants with tools to manage reservations efficiently. However, the reality of operating in this space has proven to be far more complex, particularly under the pressures of an intensely competitive market. Numerous players entering the space have led to market saturation, where differentiation becomes difficult, and consumer loyalty is hard to maintain. The revenue models, heavily reliant on restaurant commissions and user fees, struggle under the weight of such competition.

“Reservations in a busy restaurant actually lose them money. Because you have to be constantly watching the dining room and assessing when people will “possibly get up” and holding tables open for periods of time so they are available for the reservations that are coming vs just seating people when they are open,” Vanshika Khanna, Owner of Cellar Bar commented.

Technological Integration Challenges

Adoption of online reservation systems by restaurants is impeded by several factors. The existing infrastructure in many restaurants is often incompatible with the seamless integration required by these platforms. Many establishments still prefer traditional methods over third-party systems, fearing loss of control over customer data and potential service quality issues. The diversity in technology adoption across different regions and scales of operations further complicates this landscape, making widespread adoption challenging.

Regulatory and Data Concerns

The business practices of market leaders such as Zomato and Swiggy have come under scrutiny for potentially anti-competitive behaviours, such as bundling services and preferential treatment, which could stifle competition and innovation in the online reservation sector. These issues, flagged by entities like the Competition Commission of India, illustrate the complex regulatory environment that these platforms operate within. The implications of such practices include reduced choice for consumers and higher barriers to entry for new platforms.

Customer Loyalty and Market Trends

Despite the convenience offered, customer loyalty to a specific online reservation platform is notoriously low. Customers often choose platforms based on the best available deals or specific features at the moment, rather than brand loyalty. This fickleness requires platforms to continually invest in marketing and promotions, which can erode profit margins. Additionally, the integration of online food delivery with reservation services by some platforms raises concerns about market dominance and the overshadowing of pure-play reservation services.

“Some busy restaurants may refuse to use reservation apps for a variety of reasons. One reason could be that they prefer to manage their reservations through traditional methods, such as phone calls or in-person bookings. Another reason could be concerns about the fees associated with reservation apps, as some apps charge a commission for each reservation made through their platform. Additionally, some restaurants may want to maintain a personal touch with their guests by handling reservations directly,” Shubham, owner of Junkyard Bhopal commented .

Strategic Responses and Future Directions

For online reservation systems to thrive, they must innovate beyond basic table booking services. Potential strategies include deeper technological integration with restaurant operations, from inventory management to customer relationship management (CRM) systems. Providing comprehensive analytics to restaurants about customer preferences and behaviour can offer added value, compelling more restaurants to adopt these platforms.

Additionally, platforms can diversify their revenue streams by offering marketing and loyalty programs, aligning themselves more closely with the needs of both restaurants and diners. Developing unique selling propositions such as exclusive dining experiences or loyalty rewards could enhance customer retention and attract new users.

“I feel the opportunities presented by online reservations platforms outweigh the challenges. The vast customer base, marketing reach, and data insights provided by these platforms contribute to increased footfall and revenue for participating restaurants. With more diners relying on digital platforms for their dining choices, being a part of these ecosystems has become a necessity for restaurants seeking sustained success,” Aditya Sanghavi, owner of casual dining Potli in Mumbai commented.

The future of online reservation systems in India hinges on their ability to adapt to an increasingly complex market environment. By addressing the challenges of technology integration, regulatory pressures, and customer loyalty, these platforms can redefine their role in the hospitality industry. Strategic innovation and alignment with broader market trends will be crucial for these systems to not only survive but thrive in the competitive Indian market. The path forward will likely involve a blend of technological sophistication, strategic marketing, and robust business models that offer real value to both restaurants and diners.
 

 

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Saurabh Luthra Led Romeo Lane to launch 30 more outlets; Venture into Boutique Hotels
Saurabh Luthra Led Romeo Lane to launch 30 more outlets; Venture into Boutique Hotels
 

In the bustling restaurant sector of India, Romeo Lane has been garnering attention with its unique expansion strategy. Saurabh Luthra, founder chairman, Romeo Lane, Birch By Romeo Lane, is all set to expand across segments this year. Luthra's ventures cater to the modern diner seeking a blend of organic offerings and global cuisine. In this exclusive interview with Restaurant India, Luthra shares insights into what makes Romeo Lane a standout experience, the strategic expansion into tier 2 cities, and future plans that promise to redefine dining and hospitality.

The restaurant chain currently has 10 branches established and plans to expand into 30 more cities in India and internationally. “Romeo Lane offers a distinctive experience with its organic cocktails, global cuisine, and seamless transition from a day dining spot to a vibrant nightlife destination. It caters to guests looking for both a culinary adventure and an exciting evening out,” Luthra started with discussing about the USP of the brand. 

Currently, Romeo Lane's expansion strategy focuses on tier 2 cities due to several key catalysts. These cities often have growing economies, a burgeoning middle class with increasing disposable income, and a growing appetite for unique dining experiences. Additionally, Luthra feels that competition may be less intense compared to tier 1 cities, allowing Romeo Lane to establish a stronger foothold in these markets more quickly.

“As for consumer trends, we're observing a heightened demand for organic and sustainable offerings, an increasing preference for global cuisine, and a desire for versatile dining experiences that seamlessly transition from day to night. Additionally, there's a growing interest in experiential dining, where customers seek not only great food and drinks but also a memorable atmosphere and ambiance,” Luthra informed.

While all the outlets contribute positively to the brand, Birch Goa and Romeo Lane Goa stand out as the highest performers. “Their exceptional performance can be attributed to the influx of tourists, drawn to the vibrant atmosphere and unique offerings in Goa, which remains a favorite vacation destination in India. We are proud of the success of these outlets and continue to strive for excellence across all our locations,” he shared.

Moving ahead, Romeo Lane’s expansion plans are ambitious yet strategic. The chain aim to continue growing its presence in both domestic and international markets, focusing on tier 2 cities with growing economies and a demand for unique dining experiences. Alongside restaurant and bar expansions, the restaurant company is now venturing into the hospitality sector with boutique resorts that combines exceptional dining with luxurious accommodations. 

“Our entry into hotels marks an exciting new chapter for Romeo Lane. With the opening of Romeo Lane, the boutique resort in Goa, we've ventured into providing not just culinary delights but also unforgettable stays for our guests. The success of our first venture has inspired us to expand further, with plans underway to open another boutique resort in the picturesque hill station of Mussoorie. Our goal is to create immersive experiences that leave a lasting impression on our guests, whether they're dining with us or staying at our resorts,” Luthra commented.

On the topic of launching new brands, Luthra confirms they're always exploring new concepts. "We're finalizing a new brand concept that will offer a fresh and exciting experience. We're excited about this next venture and look forward to sharing more soon," he hints.

In terms of making the outlets profitable, the company’s success lies in a combination of factors. Luthra emphasised on prioritizing high-quality cuisine and beverages that appeal to the target demographic. “We also focus on creating unique and memorable dining experiences, whether it's through our innovative menus, inviting ambiance, or exceptional service,” he further shared. Additionally, strategic location selection, efficient operations management, and effective marketing play pivotal roles in ensuring the profitability of the outlets. “By consistently delivering on these fronts, we're able to cultivate a loyal customer base and drive sustainable growth in the competitive restaurant business landscape,” he concluded.

 

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Success Mantra: How This Restaurant is Trading on 90% Comeback Customers
Success Mantra: How This Restaurant is Trading on 90% Comeback Customers
 

Chef Om was always inclined towards doing something of his own and it was during his days at Manipal hotel school that he started dreaming of owning a restaurant. Coming from a foodie family, food was something that has always remained close to his heart. “My philosophy is exactly like Chinese anything that walks, scrawls or swim over the sky can be eaten,” shares Om who started The Pasta Bowl Company in 2013 out of the love and passion to serve an experience...here are the excerpts from the interview:

How did food happen?

When I was doing hotel management from Manipal I knew I would become a chef but wasn’t sure to open a restaurant. I understand the whole gamut of how it works. It helped me a lot, created a mindset and over the period of 20 years I have learnt the art of sailing well. I am glad that there is no restriction from the family side as well. Growth was slow; it wasn’t a cakewalk. Food is a movie going on and we are all actors. You make great food if you are happy and it is spoiled when you are not in the mood.

What is the story behind The Pasta Bowl Company?

We primarily are hospitality consultant. We have been very choosy on what we consult and just because of this choosy behaviour my wife came up with the thought that why not we have a place of our own so that once we don’t have anything we are not just sitting at home figuring what to do next. Hence, it all started from there. It was during a trip to Shimla one fine day from Gurgaon in 2012 that it clicked me. I found a nice counter of Japanese cuisine at a shopping mall before going to Shimla and then I realised that Pasta is also a good option to set up a similar kind of concept. And, as Italian food has a good opportunity in India. It was on my way to Shimla that I woke up midway and told my wife let’s do Pasta Bowl Company. She liked the thought and then we did good R&D work for almost 9-10 months. The concept started building; we started looking for a place. I wanted to start a QSR kind of a concept at the entrance of a mall but since we were new into the business no one was ready to give us the space. While we were looking at starting a 20-30 seater restaurant, we came across Galleria market I came to this mall and liked the place and 48 hours down the line we have booked the place. We started in 3 months time with a small menu as we grew the thought evolved and we started branding the place, getting the concept done.

How is your restaurant different from others?

We have a return rate of 90% customers who enjoys our food on a regular basis. The Pasta Bowl Company has asked to cook food from love. The staffs are asked not to cook food if they don’t feel like as it will spoil guest experience. These are few of the traits we work upon. We treat our employee as family and make sure everybody is happy. A chef needs to have passion. The passion comes into play which makes a difference.

How about getting the right produce?

We do authentic stuff, we don’t use Indian tomatoes. We source ingredients through our channel partners and there are couple of things that has been imported for us only.

What’s that one formula that you have stick to in all these years?

You need to make your customer happy as it is a two way game. We have 90% of repetitive customers at our restaurant. We have looked into their needs and given them so much of romance over the time that people got inspired by the Italian culture and food. We really appreciate the patrons we have and it’s like a family with them. It’s all about lots of love- it could be the food, the service, addressing the guest need. I think it is just the extra bit of care that we give our guest. Experience is not just coming to a great place and eating in a great cutlery. Experience is the amalgamation of the process, the way you have been greeted at the restaurant to the way you been served food.

Tell us about your expansion plan.

We are planning to open 9 restaurants- 2 bigger ones and then 7 will be QSRs. We are targeting a Delhi- NCR, Mumbai and Pune in the first go. 

 

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How Investors Should Look at Brand
How Investors Should Look at Brand
 

Investing in food business sector is part of all industry and domestic consumption. It’s a part of larger theme. And one particular thing to invest in has received the maximum number of attention so far. In fact there have been 50 investments in the space in the last 8-10 years which is almost $5oo million. In India over 30 or more companies in last 5-6 years on an average has gone 3X in terms of revenues which is pretty impressive compared to companies command globally.

Also, as this industry is highly fragmented into segments, the food tech and the food manufacturing the consumer story in this country in next decade which is unfolding is going to be very exciting. Food manufacturing in India is not very exciting to invest; it may come up as major sector of investment in next five years but today food processing is a major investment ground. Casual Dining sector has left QSR and Fine dining sector behind of the investment race. According to experts here are 6 reasons which make this segment more palatable for investors to put their money:

Controllable cost: Casual dining chains know where to invest their money. They work on a cost controlling model making investors grab the segment as their favourite land to put their money in.

Lower Leveraging: Food businesses are over leveraged for making quick money, faster exit. But, casual dining business takes time for break even. It is a long time business if you have a strong model to cash on bigger returns.

Ability to tweak food range: Casual dining gets a wide variety of customers. From young crowds to aspirational millennial and mid level people. Hence, restaurant can tweak their price range according to the market and people preference at a particular location. For eg: a same restaurant serving food at Sangam Courtyard in Delhi could tweak the menu at say locations like CyberHub Gurgaon where there is a mix of crowd.

Ability to reach customers’: Customers are always king. Restaurants should have an ability to reach customers. Casual dining with an ease of comfort attracts much more customers as compared to other segments making it a preferred destination for all.

Scalability: Casual dining segment runs on scalability as there is lot of potential to grow and mould the brand according to the need of the customer.

Cost subsidising: It is always good to do cost subsidising. The item which is not running good can be priced low and which is doing good can be priced high.

Hence, we can say that with casual dining capturing the young and comfy class there is more room and willingness among investors to put their money into the segment. 

 

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Guide to Open a Casual Dining Restaurant
Guide to Open a Casual Dining Restaurant
 

As George Bernard Shaw, framed in his beautiful words, "There is no love sincerer than the love of food."

People look up to the Casual dining restaurants, when it comes to love for food and for an affordable dining experience.

The Casual Dining format contributes to more than 33 percent of the total market share of the organized food industry and is further pegged to increase by 33 percent by 2021.

According to Indian Food Service Report 2016 released by National Restaurant Association of India (NRAI) along with leading research firm Technopak, the size of the Casual Dine Chain Market is estimated at 6,720 crores in 2016. It is further expected that it will grow by Rs 17,245 crores at 21 percent CAGR (Compounded Annual Growth Rate) by 2021.

For all the foodpreneurs, who want to start and run a successful restaurant, here are a few things to keep in mind:

1. Location:

According to the NRAI report, the majority of casual dining restaurants are concentrated in two major metropolitan cities Delhi and Mumbai.

To find a proper location for opening a casual dining restaurant, one has to do a thorough market research to make a list of all the cuisines being served in all the suitable places, such as Malls, High Streets, Popular Markets, and Big Office complexes.

Location should have enough parking spaces, easy accessibility to raw material and other supplies. It also should be somewhere in the ground floor or first floor with proper directional boards to guide the customers, or else they will end up in dining somewhere else.

2. Set up:

While setting up the restaurant, one has to try something new or unique, to attract the customers such as the cuisines served should be different, the ambiance should be such that the customer would always feel like coming back.

Ambiance and quality of food being served go hand in hand; one cannot compromise with the quality or the uninviting ambiance.

Try to make it theme based, which will make room for serving other cuisines too such as seasonal themes and cuisines as per the seasons or themes based on festivals too can be tried out.

There are plenty of options to try out, without getting entangled in financial problems.

3. Licensing and paper work:

After the location is finalized, one has to carefully sort out all the paper works required to obtain such as FSSAI license, VAT or Service Tax Number, Police Eating House License, Local Municipal Health License and Fire License.

The FSSAI or food license and VAT license are very important, without which one cannot open a restaurant, the other ones can be obtained after a couple of months or the date to get them can be pushed to few weeks.

4. Hiring the right people:

Hiring the right people is important, as all the work or in other words, the entire restaurant is going to run by them.

The chefs, who are going to cook, should be master in their work, because even chefs function as part of making your restaurant, a brand.

The service people, waiters and waitresses should be well behaved and smart to respond actively in tough situations and in handling customer related problems.

Accountant should be such that he would be able to take care of the financial expenses and manage the billing counter.

5. Marketing:

Last but not the least once you start setting up the restaurant; make sure to run the marketing campaign simultaneously.

Distribute the pamphlets in the localities nearby or slips to be attached in the newspaper along with the announcement of the grand opening, where some famous personality is going to inaugurate your restaurant.

Marketing in different online platforms as well as offline platforms should be made before hand.

 

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"I never lose the core values that we have evolved with"
"I never lose the core values that we have evolved with"
 

The back story
Udit did his MBA from narsee monjee Mumbai, and then joined a company and worked there for a very short period of time in sales department. He soon realised that this was not his cup of tea and thought of fulfilling his life-long dream now. He did always want to open cafe but not in this domain. He was more inclined in opening a cafe that offers healthy food. But after an in-depth market research he understood that Indian market is not so mature for people to opt for healthy food right now and then forayed into the brand that he has now.

Inspiration
“The cafe has a lot of influence of Bombay. Bombay has no space. All cafes and restaurants manage in lesser spaces.”The first place he bought which was in vijay nagar. He points out 2 reasons of it being small.”Firstly, I did not have that amount of money to invest into a big, lavish place and secondly, I wanted to give it a small feel. So when we opened our 2nd cafe in satyaniketan, it again was in a petite space.” Even after great success in the business he purposefully we keeps it small. It is his conscious decision.

The story behind the name
“We are taught in MBA to keep in mind to set up a name of a brand such, that it evaluates to be of a good brand value. So we were fumbling with so many names but nothing that we could step our foot on. We had already designed the irregularly shaped door that we have right now and it just clicked to my sister to just name it Big Yellow Door in accordance to the door ofcourse.”

Just going with the flow
He just wanted something about the restaurant that attracts the customers even when they are distracted. He used the yellow color and the design of the door to break monotony and attract eye balls. “When we started we didn’t have any experience, my now wife Shera and me, we visited many interior designers but found nothing concrete in our budget. I then thought of just doing it myself. It was a small place afterall. We already had a little sense of designing but could not imagine everything at once. We did it in tits and bits and everything came up very well.”

How to get popular
When he opened, there was no cafe in the north campus area. He noticed the gap that he could easily fill in and grabbed the opportunity of it. “Mumbai has always been 5-7 years ahead, eating out is not a plan there, and it’s a necessity. I lived nearby and thus was well versed with the area. There was nothing here.
In the present times, cafe may not be very different on the lines of food but there are a few points no one can compete it on. Udit believes in providing ‘value for money'. "I see to stick to it personally. I never lose the core values that we have evolved with.”
He always presents his recipes with a twist. "To be honest, we do not serve authentic Italian cuisine here as no one wants to eat that. We give everything a personal touch and an Indian twist. I personally develop all the recipes. I could have been a chef instead” he laughs.
These things have become the cafe’s core values now. “We take any new decisions in accordance to these.”

What to eat when on your next visit
"Bomb burger is loved by people as it was one of its kind in India when I introduced it. Also, our butter chicken pizza and pastas are a must try. These remain the top three sellers here.”
On a different note, his personal Favourite remains Butter Chicken Pizza for his love of Butter Chicken.

Marketing Strategies are not always needed
Udit didn’t have any marketing strategies when he initially started. “Whole idea when we started was different. We had thought of it to be a QSR where in people will come and either take away their food or have self service.” But the rush that came in the first day, converted this into a cafe. He, shera and his sister worked and served for the initial 4-5 months due to the lack of staff then.

Now they just market in on social media sites and nowhere else.

Why don’t you get your food delivered?
“I believe in selling experience and not just food. We do not want to compromise on our service. Food delivery kills experience.” Udit believes in the core values he setup this restaurant in and works only in alliance with them. Experience and taste are the two most important things he never fails to offer.

Expansion plans
“We will expand in Delhi but are looking for capital investment. We do not want to franchise. We are not franchise ready yet. “

 

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Is 'Fun' dining the next wave in India's dining culture
Is 'Fun' dining the next wave in India's dining culture
 

A question that troubles all entrepreneurs entering the hospitality business for the first time is ‘how to start a restaurant and take it to success?’ Obviously, the answer to this isn’t rocket-science, but if given a careful thought then it is quite simple to comprehend. The eating out habits in India have been changing drastically and are pushing the sector to grow at Rs 4,98,130 crore by 2021, hence inviting more entrepreneurs to invest in the market.

According to NRAI food service data, India’s private final consumption expenditure accounts for 60 per cent of the total GDP and is predicted to reach $2.4 trillion by 2021, surpassing the developed countries like the UK, France and Italy. These changes are not only fostering the sectoral growth but also enhancing the dining experience, where consumers are looking for more than just the food, but also the overall experience.

Table For Two

The fine dining segment remains a niche segment in India mostly restricted to top hotels for the past 15 years, but with people becoming experiential in nature they have pushed the boundaries of the segment by bringing it to standalone market. Though, the segment still contributes about 35 per cent revenue because of its premium nature, which draws a whole lot of money. Today, the fine dine industry accounts to Rs 530 crore in chain market and approximately Rs 1,815 crore in the organised standalone segment. The market is heavily influenced by affluent consumers with constant innovation, low shelf life and a high operational cost. “Fine dining is going to become a place to celebrate because today’s generation don’t like to dress up and go to eat at a restaurant. For them it’s boring,” comments Anurag Katriar, who was one of the first few restaurateurs to take fine dine out of a five-star environment with Indigo.

Focused on high quality ingredients, flavours and a specialized dining, the fine dining segment is typically dominated by standalone brands with a presence of few international high-end dining restaurants like Hakkasan, Yauatcha, amongst others. “Standalone restaurants are doing well. People are travelling more and so awareness about foreign cuisine and a lot of ingredients is growing with appreciation of new ideas,” points Chef Vikas Seth, Culinary Director, Lounge Hospitality.

Fun Dining

Today diners are no more looking for a dining experience, for them dining has become a fun. As per NRAI food service report, around 25 per cent diners today are fun-seekers, who are out on an experience. “I have done fine dine restaurants plenty of time and now I want to have fun with food, so I have come up with a cuisine which is light, easy and fits the bill,” shares Michelin Star Chef Atul Kochhar, who has opened his restaurants LIMA and NRI in Mumbai last year that focuses on fun dining than fine dining. And with the opportunity that the market holds, the casual dining segment is flourishing rapidly at 21 per cent to reach Rs 17,245 crore by 2021. The constant growth in the segment has pushed it to break down into two major segments -- Affordable Casual Dining Restaurants (ACDRs) inviting QSRs to venture into the segment and Premium Casual Dining Restaurants (PCDRs), where luxury dining restaurants are venturing. “Yellow Chilli is our casual dining brand with great food at value offering. It’s a neighbourhood Indian food brand, which we want to populate across the world. Overall, we have Rs 200 crore revenues across all the restaurants and brands, and we can take it to much higher level,” points Sanjeev Kapoor, Celebrity Chef and Owner at Yellow Chilli restaurants, which has a single unit investment cap of Rs 1 crore.

This segment has good returns and margin; there are lots of domestic players, who are venturing into the segment. Driven by innovative menus, quality food, presentation and plating, this segment is running on speciality cuisine and theme-based menus. “I don’t think there is any competition in the food we serve as it is entirely different from what it was before. Nobody in India serves rotisserie chicken and has no flame kitchen. We are not adding oil into food,” says Rajeev Chawla, Partner at Troika Hospitality India, who has brought the casual dining chain Kenny Rogers Roasters to India. 

 

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We have a strong belief that technology in F & B industry will play a major role in future: Yogesh Magar
We have a strong belief that technology in F & B industry will play a major role in future: Yogesh Magar
 

Though, Maharashtrian cuisine is known for its distinctive attributes, but its shares a lot with the wider Indian cuisine. There are many diners who appreciate the raw traditional food because of its unique taste and presentation. With a vision of offering the traditional Marathi cuisines to the diners, Yogesh Magar conceptualised Wah Marathi.

In conversation with Restaurant India, Yogesh Magar, Director, Wah Marathi, discusses about challenges and responses for the brand.

Talk to us about Wah Marathi and the journey so far?

It all started with offering authentic Maharashtrian food to the guests blended with contemporary ambiance with stellar customer service. This was aimed at appealing not only the indigenous people, but non-natives as well. The notion of proposing native dishes to Maharashtrian community was a big task. We wanted to break away the conventional way of serving Thalis and present the same in a fine dining format. I had always felt the vacuum for eateries. Food being my passion and a core Maharashtrian by birth, I wanted to offer pure and fresh food to the masses, belonging to our own culture away from the rush of fast-foods.

Maharastrian food is so diverse and, much of it remains unexplored. People need to know that Maharashtrian food is beyond vadapaav. We conducted extensive research by visiting distant villages of Maharahstra to explore new dishes and recipes. Our team members learnt so many traditional recipes from elderly people, which has actually added a flavour to our menu and helped us in creating unique flavours.

We believe that learning is constant and we continuously strive to evolve our offerings on the table.

Share with us the initial challenges you faced while rooting the business into the market?

The Menu: Designing the menu was the most challenging part. We experimented almost 400 dishes, and it took us at least 4 months to filter them. The challenges were — reducing operational cost, offering better prices and maintaining authentic flavours. All this was to be catered without compromising on quality.

Manpower: While exploring the regional cuisine, the major challenge remains in getting the right manpower. The staff involved in preparation of regional cuisine needs to relate with the offering. We struck the ball right on this, to hit a home run.

Acceptance: Pune is a choppy market. One needs to do thorough research before putting anything on the platter. Offering Marathi food to the locals in fine dining concept was indeed an uphill task, but we succeeded eventually.

Unique Selling Point: Offering Maharashtrian food on à la carte, a model, which was well received by our patrons.

Marketing; Established in the vicinity of one of the biggest IT hubs, Magarpatta Cyber City, Pune, the challenge was to attract not only the locals, but at the same time, the non-Maharashtrians as well, who resided in and around the IT city.

How has been the consumer response so far?

The response has been overwhelming so far, and our fan following has been increasing by the day. People sometimes get nostalgic about the whole experience. They relate it to the home-cooked foods by their mothers and grandmothers. Apart from our guests we have been getting requests to set up more of these restaurants in other cities and abroad as well.

The industry has seen a growing interest from private equity to venture capital investors. How do you see the trend in the years to come?

Being in the food and restaurant industry for the last 13 years, we have seen trends changing over the period of time. We have seen a lot of new entrants, including MNC’s venturing into this business. This is a welcoming change, and this affirms that the market has huge potential with several areas to be explored. Restaurant & food industry is a game of patience and persistence. One has to believe in his offering to be able to convince the masses.

How do you plan to compete with the new-age food chains and licensed stand alone players?

It may sound hard to believe, we do not consider us as a part of the rat race. One has to stand out from the crowd and work hard to remain in the completion and to carve a slice out of this large pie. To hit the box office a movie should have a very strong content, story line and dedicated actors. We, at Magarpatta clubs & resorts, follow the same path to make our brand ‘Wah Marathi’ a great success.

What according to you are 4 important growth drivers in this industry?

The most important growth drivers in the industry are:

1. Internationalisation / globalisation.

2. Integration opportunities.

3. Innovation

4. Manpower

How has been the response towards other assets of Magar Hospitality?

Response to all our assets including Hotel Cocoon- 118 keys all suite hotel, Deccan Harvest: 230 covers, Multi cuisine fining dining restaurant & Lounge and Mega Meals: corporate catering unit with a capacity of producing thirty thousand meals in a day, has been overwhelming. All these brands have evolved over the period of time and have been contributing significantly towards the total earnings of the company.

How has technology helped you pivot your business in the right direction?

We strongly believe that technology in F & B industry will play a major role towards a better future of our businesses. We have been a technology driven company equipped with strong ERP systems for our back office, material management and front of the house operations. Technology will play a key role for better future prediction as the data gathered over the period of last 10 years will lay the foundation stone of a rewarding future.

Where do you see the future of the industry 3-5 years down the line?

We are very optimistic about the future and wish to play our part in the overall growth and sustenance.

Share with us your future expansion plans? How much revenue do you expect by the end of FY16?

Enriched with rich industry experience of more than a decade, Wah Marathi has become a tried and tested brand within a short span of three years. Besides developing our reach in other parts of the country, we have plans to expand within Maharashtra as well. Our kitty will include the Franchised as well as company-owned outlets. As mentioned earlier, we have been getting enquires for franchise models, but will be working cautiously to make every unit, be it franchised or otherwise, a sustainable and successful model.

 

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What made Barcelos open world's biggest outlet at Gurgaon?
What made Barcelos open world's biggest outlet at Gurgaon?
 

African casual dining chain Barcelos has spreads its roots in India and launches its third new restaurant in Gurgaon Sector– 29.

This new restaurant of Barcelos in India stands as worldwide biggest outlet whose interiors and ambience have been designed around the European theme.

The vintage car kept in the restaurant makes the restaurant more alluring.

The ambience at Barcelos is very lively and refreshing to connect with its vibrant consumer base.

There is a live kitchen concept in the restaurant which makes the whole restaurant environment quite interesting.

“We are very delighted to announce the launch of our worldwide biggest outlet. With a motive of making our brand more accessible to our consumers in Delhi, NCR, this time we have decided to come up in Gurgaon Sector – 29 which is a quite happening spot amongst the corporate crowd of Gurgaon. Also, along with this launch, we have introduced colored mini wraps in our new menu and we hope that our customers will love it,” shared Rohit Malhotra, Business Head, Barcelos India.

Barcelos, with its roots in culture, tradition and history, is a household name for its flame grilled menu with peri peri sauces and it has created its own unique following by introducing to the discerning Indian foodie their own brand of innovation.

Along with the launch of this new outlet, Barcelos also introduces the new menu which includes the innovative colored mini wraps. Available in chicken, mutton and veg variant, these colored mini wraps are priced at Rs 225, Rs 275 and Rs 285 respectively. To entice the foodies with its color, these wraps are available in four different colors i.e. white, red, green and yellow. 

 

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Playing around a theme
Playing around a theme
 

In the fast evolving scenario, where restaurant owners are playing around getting the best business, theme restaurants could serve as money guzzler to them.

Growing trend

It was way back in early 1990s that some of the restaurant legends started working on a theme to attract more customers’ to the outlet. Chor Bizare was one of the first trend setters in the country inspired by the ‘Chor Bazaar’. The restaurant has a collection of objects d’art, memorabilia and bric-a-bracs from the bazaars of India. The trend got popular and today there are a dozen of restaurants operating under a particular theme.

In today’s scenario, the greatest trouble for the restaurant owner is to attract customers to their new restaurant, and also to sustain them for a longer period of time. People are getting more attracted by the design of the restaurants, rather than the offers they notice on the table. And, this particularly has given a rise to the theme based restaurants in India.

Kaidi kitchen was started in December 2012 by three friends Rohit Ojha, Ankit Madhogaria and Saurav Aggarwal  in Kolkata out of the need that pure vegetarian fine dine restaurant was not easily available in the city  as they believed ‘Fine-Dining’ is an art.

“We did the trial before completely launching the outlet. We gave two choices to customers either sitting at jail and having food or observing people who are preparing food in the jail,” pointed Ojha, One of the Co-Founders.

Business advantage

Ask any restaurateur and he will be quick to conquer that theme restaurants drive much more customer attention and business to that of a normal outlet.  And to keep a pace with this, Lite Bite Foods promoted by Dabur scion Amit Burman is also driving good business from its theme restaurant houseboats lazing around the idyllic Kerala backwaters. Just close your eyes to savour the pleasant memories of the rejuvenating monsoons gushing away as you sit in your verandah on your favourite planter’s chair, sipping your cup of monsoon Malabar.  The brand has done amazing business in India and with this they have got a confidence to expand the brand to other regions and have opened their  first outlet in Dubai. Also, UAE is a fertile ground for brand expansion and revenue growth.

Likewise, Umang Tewari , who has some amazing concepts under a single umbrella is getting good business on his theme restaurants which differ from each other. “We invest 3-4 crores in setting per outlet and our return on investment is atleast 30% per anuual year,” pointed Tewari who owns restaurants like Junkyard Cafe which has  a Junk interior.

Entering the franchisee model

As we all know, franchising is the fastest move to expand the brand, these chains are not far when it comes to entering such deals. Kaidi Kitchen, which was started in 2012 in Kolkata, entered the franchisee model in March 2014 by opening its first outlet in Chennai and second  in Kolkata in December 2014 being quick on response and expansion of its outlets. “Our first outlet was located at Camac Street Kolkata and when people from North Kolkata used to visit our outlet, they complained to us for not operating the outlet near to them, so you can sense the response that we are getting from our customers,” said Ojha.

Not only this, the newly opened cafe in Delhi, Cafe Dalal Street,  which is based on Stock Exchange concept is looking for expanding the brands in the city and other markets.

“We have already started finalising two more outlets in Delhi-NCR; one at Noida and other at west Delhi. And, going forward in about two year’s time, we would like to have six outlets down the lane. There are lots of ideas right now, but, stock exchange has lot of potential. So, the idea is to make it a big chain and then probably move on to other concepts,” said Vidit Gupta, Co-Owner, Cafe Dalal Street.

And, going by the fact that theme based restaurants give different ambience than the regular ones, and restaurant owners today know that they can have more customers’ to them by taking dining experience to a whole new level and what could be better than an interesting theme.

 

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