Business Thoughts - 1
Assume that you have a Chettinad style restaurant and your hotel is into specialty sea-food of authentic Karaikudi Chettinad style. You are also doing well in this business and you have sufficient funds to expand/acquire other restaurants. Now you come to know from your friend in Mangalore that a well-run specialty sea food restaurant of authentic Mangalorean style is up for sale. The owners of this Mangalore hotel wants to get out this business due to some family issues.
Now, let me ask you these questions.
1. Would you acquire the Mangalore hotel which is also into specialty sea food?
2. If you acquire, what would be your strategy to expand? Assume that you have sufficient funds to run 5 more branches after acquiring this restaurant.
3. What kind of cities you select to expand?
4. What would be your branding stategy?
Let me also know the reasons for each of your decisions. Please write your thoughts in the comments below.
posted by Arunkumar Ayyavu @ 4:13 AM
7 comments
7 Comments:
1. Yepp, i will go for it
2. Keep my brand identity for that hotel. My next step would be to establish presence in all coastal Indian states as sea food speciality restaurant.
3. Start from urban cities and saturate the market
4.My strategy is placing the restaurant as specialty sea food restaurant in all Indian states
1. I believe I'll go for it. But before that obvously I'll make sure that this Mangalore restaurant is in good business and has a good brand value in Mangalore.
2. Expand I would. I would choose Hyderabad, Chennai, Coimbatore, Bangalore(am not sure) and possibly some other Tier-II city on the coast and would be a source of sea food for other branches apart from Chennai.
Chennai and Bangalore are already flooded with restaurants. The essence is in finding a foothold with proper campaigning. The strategy could be in choosing a good name (common to all south Indian languages), campaign in different languages, having the menu in native fonts(also english, obviously), hoarding too (if u need one), etc, etc.
Coimbatore startegy, Just Great "SEA" food.
And Hyderabad, You only need to open the restaurant, people here spend a lot on food. And create a Hype on the restaurant(word-of-mouth) and see how the people throng to ur hotel ;)
3. I also want to see ur answers to the questions.
The tier-II city could probably be on the west coast, so there wont be a hindrance in supply. (there is our singara chennai on the east coast, now flooded too often in too short time)
Arun,I would suggest you to acquire the mangalorean restaurant. However,your Chettinad restaurant will remain the same.Now , I would not like you to mingle them.They will stand out as two different,unique identities under the same umbrella !
The reason behind my decision is as follows: Chettinad is chettinad It can not be Mangalorean and vice versa.When,products click,say your Restaurant in this case, people develop a liking for the food and the aroma which is synonymous to the name ! the very thought of the restaurant should tickle the taste buds.
Now,the question is, if this continues,then for every restaurant of an authentic style,should there be a chain ? Can "Arun/XYZ Group of Hotels" support too many restaurant chains eg, one chettinad,one hyderabadi,one tamil,one kannad etc?A good question to think about?
My answer to this is "NO".I will not want you to acquire everything that comes your way,rather acquire those which come under your DESIGN.And,in future,Chettinad can serve other "Tamil style food" but not Kannada style which is more to the sweet side!!Based on the "footfall research" you can diversify the food served in your restaurant but it will be primarily be known as a chettinad restarant and shud be !!there is no point in Saravana bhavan concentrating on Burgers when McDonalds can do it better !!
Comments...will be appreciated.
Venkat..It's Thaks !
Redi,
Mangalore restaurant is well-run. Don't worry.
But why did you chose these cities? Any specific reasons? It could be due tourists-traffic, good disposal income among the consumers, more sea-food lovers, more rich families willing to taste specialty foods during weekends, sea-food sourcing is cheap or something else.
Sourcing sea-food? You should definitely consider this point. But you should remember you are not in the business of gathering sea food (raw one). Why don't you consider giving this job to other sea-food suppliers?
BTW, you have the money only to start 5 more branches. I think you could argue that you are planning for the future as well.
Good name common to all south indian languages?? I think you have a point. But it is a difficult job. I'll leave this to my branding manager ;)
I believe you have a good point in having the menu in native fonts as well.
What is this great "SEA" food in Coimbatore? Come on, don't be kidding.
I would agree word-of-mouth is the best way of marketing in food business.
satheesh, good that you would go for it. I believe you'll consider the spending power of the consumers in those coastal places. And regarding brand identity, specialty sea-food or the way you serve in your restaurant should sound synonymous with your brand.
>>Thaks
They will stand out as two different,unique identities under the same umbrella !
>>Arun
Well, you have a point. But still you have to find a way to serve different specialties under single roof.
>>Thaks
Can "Arun/XYZ Group of Hotels" support too many restaurant chains eg, one chettinad,one hyderabadi,one tamil,one kannad etc?A good question to think about?
>>Arun
You're correct.
>>Thaks
acquire those which come under your DESIGN.
>>Arun
Exactly. I believe you are referring specialty sea-food as the design. We can have the design based on the demographics in certain place.
>>Thaks
Based on the "footfall research" you can diversify the food served in your restaurant
>>Arun
Great. I was expecting this point from someone.
>>Thaks
it will be primarily be known as a chettinad restarant and shud be !!
>>Arun
This would again be based on the demographics. Simple reason being you have to have a brand identity. For example, Bangalore & Coimbatore are cosmopolitan cities. If my hotel is well-known in both the cities and I maintain different brand identities in these two cities, then the bangaloreans will find it difficult to identify my hotel in Coimbatore and vice-versa. And we are targetting sea-food lovers. But if I've my hotel in tamil historic tourist location, then I need to have the tamil specialties because those tourists are there to experience the richness of tamil history. BTW, I don't have the answer regarding how I can position this hotel in tamil historic tourist location.
>>Thaks
there is no point in Saravana bhavan concentrating on Burgers when McDonalds can do it better !!
>>Arun
True. Saravana Bhavan and McDonalds maintain their own identity. Saravana addresses Tamilnadu style food lovers. The same way, we need to maintain our own identity.
Apart from this, do you have any thoughts on how you would attract the customers? How would you find if I explain the merits of various items in the menu? For example, Prawns have more calcium and they strengthen the bones. Crab food is good to have when you have cold. Sea-food improves the brain activity. I believe this point would be well accepted among the general public provided it was addressed properly. This also gives an impression that you take care of customer's health. How would you find if I explain the level of calories, vitamins, proteins and other things for each item? I'll write this up alongside the menu items. This would address the fitness minded people. But having this facility in all hotels won't help. Well, I would agree taste is even more important. :)
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