Strategy

Brand evolution

The mid-market restaurant players are filling in the void between the up-scale and mid-market fine dines by upgrading themselves with the right mix of pricing, food and ambience. Sanjeev Bhar finds out whether they are creating a new segment altogether.

Considering that the scope for standalone restaurants in India is increasing manifold, the market is witnessing small and mid-market restaurants gearing up to grab a substantial chunk of the growing business. Owing to competition and the changing trends in consumer preferences, there are signs where traditional restaurants are changing their brand image. Dean says, "Being in the restaurant business is tough, but if you do things the right way, have a USP, give customers what they want in terms of a holistic dining experience including good food, service and ambience, there is no stopping a restaurant from being patronised. Although the key for success is good food at affordable prices, ambience and service are becoming important factors as well."

Spice it up!

These restaurants are looking for a profitable mark-up on food and liquor, which works out well in places that have a lounge. A lounge can take restaurants to the next level. Chef Sunil Chauhan of Chefs United Hospitality Solutions, which offers expertise in restaurant consultancy projects, says, "Lounges are usually associated with restro-bars, but today it is seemingly becoming a notion to follow even in standalone restaurants."

A lounge adds a new dimension to restaurants, especially where alcohol is served in the evening, remarks one senior hotel professional. "Restaurants which are incorporating space in this way are either located in an up-market locale or have sufficient space at its disposal for a facelift," adds Chauhan. Location of a mid-market restaurant thus plays a vital role in the way its image is projected to its audience.

There are other features by which restaurants can upgrade itself. Vijay Sethi of Dimple Restaurant, which is located at Karol Bagh, Delhi for over three decades says, "We have started having a live band in order to liven up the place. It should be seen as a value addition. Earlier, there was only television and to cater to the changing demand a restaurant has to keep re-inventing itself to bring back its regular customers. We even change our band every three to four months."

Many restaurateurs believe that their staff is a brand ambassador for food. This is why they have made an effort on grooming their staff with a smart uniform, improved language skills, etc. Sethi says, "There is no need for gadgets in small restaurants when cheap labour is available in plenty. There is a need to invest on staff." Dean feels that hiring good staff in all areas and keeping them happy is the only way to go. "The result is 'happy staff + happy customers = happy owners. Secondly, the kitchen should be comfortable enough to cook and serve different cuisines that are on the menu, which in turn should be well balanced and have at least two to three dishes that use the same ingredients so as to avoid wastage."

Mid-market standalones rarely go for high-end gadgets to improve service, therefore they innovate. Sethi explains, "We have devised a mechanism where staff is divided in a manner that prevents any duplication of task. This helps in keeping staff per table ratio to the minimum." Service innovation is one aspect that would enable these restaurants to up their standard if there is limited budget.

Of course, with customers upgrading their tastes and knowledge about different kinds of food, it makes satisfying their taste buds that much more difficult. Dean says, "It would be such a waste not to chronicle customer opinions and implement them if these restaurants are to survive the rising competition, as each segment has its own level of competition to go by. It is also vital to check that their objectives and the steps taken to achieve them are in tandem."

Local flavour

So is this trend giving rise to a whole new segment? "Sure," says food consultant Rupali Dean, "It would be a different segment altogether." Even local food joints that cater to a particular location do great business and emerge as popular brands, becoming hunting ground for gourmands. The time and money spent on giving such outlets a new look raises the bar and gives them an opportunity to change their pricing as well.

Notching up the performance level apart from sprucing up the interiors brings about a certain degree of goodwill to restaurants. Homegrown restaurants have not been known to be unconventional in their brand promotion. But they are now shedding their old image. The likes of Bikanerwala, Haldiram, Saravana Bhawan and Naivedyam have emerged as popular dining joints, avers Chauhan. "The economy boom is a primary driver for the mid-market having split into two - upper and lower segments," he explains.

This shift, of course, is huge and Vikram Bakshi, president of National Restaurant Association of India, gives a perspective. He feels that there is a substantial population of mid-market restaurants that actually bring in revenue to this large sector. Going by the association's estimation, the restaurant sector - small and large - is where the opportunity is and will define the future of standalone business. This is so because mid-market restaurants will always outnumber the upscale, branded restaurants.