Bruxie Sets Its Compass for Global Waffle Domination

You are not a true Delhite or a foodie if you haven’t visited Gali Kababian, Jama masjid for a royal feast at the award-winning Karim’s. The journey of Karim's dates back to 1913, when Haji Karimuddin started a small eatery to serve mughlai food to the common man without knowing that the brand would become a global fame one day. A favourite among celebrities, travellers and among common man, the journey of this rich cultural ensemble dates back to the time when Karimuddin was a royal chef par excellence to Bahadur Shah Zafar during the Mughal Era. Post the exit of Mughal Dynasty, Karimuddin came back to his hometown, Farak Nagar and was determined to bring the rich savory flavors of the Mughal cuisine to roots of the country. With such a cultural culinary palette in his blood, he started off as a small seller near Red Fort and realized his passion of serving the royal delicacies to the common man. He was determined to build on his vision of owning a culinary legacy and sold off all the precious gifts and charms he was rewarded during his tenure with the Mughal Dynasty and purchased and set the first stone of the Karim’s empire. Since then, generations after generations are upholding the traditions of this Mughal marvel, working towards taking his legacy forward of serving royal food to the common man. 

Today, the fourth generation is running the show and has lived by the same legacy for over 106 years. Defined by the symphony that Allah has 99 names and Karim is one of them, and it is because of this very name, Karim is growing day by day. Aiwaz Asif, the fourth generation restaurateur talks about expanding the brand not just for business expansion but to grow as an emotion that 'Karim' is. Excerpts from the interview:

Building a legacy

The core of this patronage to authentic Mughlai food is built on the mantra of quality and consistency and we take pride that nothing has changed since the day Karim’s was born. However, keeping up with the modern taste palettes of the customers, Karim’s has taken the menu through different regions of the country and have added the taste of local dishes such as in Calcutta, signature dishes. We aim to nurture the heritage of serving food from the Mughal Dynasty. The brand was made for the common man and the generations have been striving to sustain and preserve the beliefs.

An emotional connect

Living and running the legacy is the biggest challenge. We have not changed our recipes since the day the brand was started. We have kept everything on the menu by the recipe how it used to be as maintaining the consistency and taste is the biggest challenge. As our forefathers believed in serving the royal food to the common man, we have been thriving to ensure that we serve that every day at our outlets. The tenderness of the meat, the spices, the marinations and the cooking techniques, all go way back to the time 108 years ago. It is an emotion for us and we have been living it generations over generations.

How have you innovated the brand as you are the 4^th generation from the family?

We all through the generations have not considered making any innovations to the brand. Karim’s was started with the vision of serving royal food to the common man and we have been only working towards achieving this and making it a profitable business for us and our franchise partners.

Driven by emotions

Indians have Mughlai cuisine somewhere in their DNA. While we all were growing up, the exposure has been great of mughlai cuisine and that is the reason why mughlai enjoys a good percentage of share in the market as compared to others. Food is ever evolving and so are the palates of Indians. The exposure is huge now and with the ERA of Millenials and Gen Z, global food with comfort Indian food is what we can see evolving in coming times too. The menu offering at Karim’s stands apart. The brand is known for the richness in food and is enjoyed because of its rich succulent flavours. The moving trend where people have now turned conscious about their health and well being, the ones who want to indulge they do and then balance it out with a workout and healthy lifestyle. Running a legacy brand has its own pull of rich flavoursome meals that creates nostalgia amongst the people and they drive back to the signatures which they have been enjoying over the years and generations.

You are running 50+ outlets of the brand. How about expanding to global markets?

We currently have 50+ operational outlets in India and UAE. We are looking forward to expanding our foothold through the franchising route, and the key is to make people embrace the royal and deliciously historic cuisine from the mughal era. We opened our first branch in the 1990s in Nizamuddin West, followed by Kailash Colony, Noida, Gurgaon, Kamla Nagar, Dwarka. As a way forward for the future, the brand is looking towards a mix of company owned and company operated outlets along with franchise owned company operated outlets.

As, Karim’s is defined by the symphony that Allah has 99 names and Karim is one of them, and it is because of this very name, Karim is growing day by day. Currently catering over 50 + outlets, we plan to capture the global expansion in the coming years.

Which are the top cities in your radar?

Mumbai, we have been in talks and welcoming queries for Mumbai currently. However we plan to rollout across the South of India covering Bangalore, Hyderabad, Chennai etc.

We have also seen that more than tier-1 cities, Tier-2 cities have attracted legacy brands like Karim’s, Moti Mahal and Paradise to name a few. Why so? What’s your plan tapping these cities?

Yes, indeed, Tier 2 has shown much love to Karim’s as well. We have good no. of outlets in Tier 2 at places such as Kota, Dehradun, Lucknow, Simbaoli, and a couple of more. We understand the market size and scope, hence welcoming franchise expansion in Tier 2 and Tier 3 for Karim’s.    

How has the pandemic treated you? Do you also have any plan going into the delivery/ cloud kitchen model as being hybrid is need of the hour?

Pandemic has definitely affected everyone across the globe. Karim’s business model and its offering since beginning has been Dine-in, Delivery and Take Away. The Dine-in business did impact everyone and so did it to us as well, however we could sustain with our deliveries and take-aways during the current times. The delivery industry has picked up and is a great hope for making profits till the time pandemic settles.

If we talk about the top ordered food and the customer favourite. What’s that from the menu?

The top dishes ordered at Karim’s over the generations have been Mutton Seekh Kebab, Paya, Mutton Burra, Mutton korma, Mutton Nahari Mutton Stew, Brain Curry, Tandoori Bakra. The most enjoyed has to be the Tandoori Bakra. These dishes belong to the menu and have been prepared exactly how they used to be 108 years ago.

What’s the average footfall that you receive at your outlets?

Our average footfall at Jama Masjid outlet is approximately 1200 - 1500pax.

5 tips that you would like to share with fellow restaurateurs in the business to learn from a legacy brand?

Well, all I would like to share with my fellow mates for a legacy brand is; consistency and quality is the only key. Brands become a legacy only if we follow the vision without getting diluted with the changing trends. There are times when you would feel that the need of the hour is to change; there is exactly where you have to remind and live by the commitments which made the name into a brand and work towards building it a legacy. It takes generations over generations in building a legacy and living by the commitments towards the vision of the brand.

Any trend that you see will disrupt the Indian market in the next 2-3  years?

Change is the only constant which will be observed in coming years now. Comfort food and Experimental cuisine is something that will entice a customer to step out and enjoy post pandemic life.

Established in 1982 in Brisbane Aromas Café is one of the first coffee houses to establish a reputation for lounge, ambience, stylish service and great coffee with freshly made food accompanied with liquor. With classic, plush interiors coupled with memorable espresso and signature desserts, the Aromas Café experience is second to none. It was in early 2008 that the owners at Ideal Hospitality India got lured by this café and after a constant research for over a year the promoter Anuya Mhaiskar opened the first café in India. Excerpts from the interview:

How it all began?

We have done extensive research on trends and gaps in the market before finalizing the agreement with Aromas Café (Australia) to introduce the chain to India. The café sector (in India) has experienced substantial growth over the past few years with several more local and international chains joining the competition for market dominance. The true espresso houses however, continue to thrive and be that preferred option; offering character, quality and a perfect setting to catch up with friends, colleagues or family. 

Is it a master franchise deal or a joint venture?

We do have single franchise outlet in Mumbai. However, we are yet to expand in other cities and it will be a master franchise deal for all other cities except Mumbai.

We see that globally 90 per cent of the restaurant brands are franchised. Why franchise as a model? 

That’s true! Giving franchise is win-win for both the brand & franchise owners. Also, it takes years of experience to create a brand. By taking franchise, we don’t just sell the brand but we do share our experience along with it. Franchise owner are equipped with all tools to run a smooth business & grow as a partners. In return, brand gets faster expansion & presence. By giving master franchise, brand gets city wise owners which help in monitoring the business.

Aromas Café is known for its finest coffee in the Australian market. How are you staying true to its core product value? 

We actively look to employee professional and well-presented staff, with an interest in the coffee industry and most importantly bringing a positive personality to the team. Our Baristas are trained by the Master Barista with live Skype feeds from the Australian Master Barista, allowing them exposure to international standards and providing insight into the origins of our signature award winning coffee blend and what it takes to make a perfect cup of coffee.

Food, contributes 65% of the revenue. So it is imperative that the kitchen team is trained by our experienced culinary leadership and our service team by our dedicated training Department. In addition to the ongoing IHPL training course program, the staff is given specialized training to ensure that they are equipped with sound food & beverage knowledge as well as industry best practice bench marks. They are encouraged to continuously work on their skills.

How much have you Indianised the menu keeping the local taste and preferences in mind?

60% of our menu is Indiniased to ensure we don’t loose on the larger target customers in India.

Who are your regular customers? 

Coffee culture is spreading tremendously in our country. Mostly Residential & Corporates are our regular clientele. We see our loyal guest for all three time meals at all our outlets.

What is the average footfall at your cafes?

 We cater to 1400 - 1500 people daily (for 7 outlets).

We see that all day dining as a trend is picking in India. Why did you choose to be a whole day dining place instead of café as your core service?

We started this trend and then others followed us. Being just a cafe will not satisfy us as we want to cater to all kind of guests. It should be one stop place when it comes to food, coffee with pair of wine & beer.

What is your plan expanding the brand (no. of outlets, cities in target)?

We believe in taking one step at a time. Hence, once we launch an outlet, we make sure that the operations are running smoothly and if ensured about so, we move on to planning the next outlet. We are about to reach a total number of 10 outlets in Mumbai soon. We are looking at expanding to tier 1 and tier 2 cities like Delhi, Bengaluru, Goa, Gujarat and a few more. India is a country of coffee lovers and we hope to take the brand on a Pan-India level, serving the entire nation heartily.

What according to you would be the top trend ruling 2019?

Innovation will be the trend in both coffee & food industry. Earlier, it was about eating & drinking, however now along with the taste, people focus on presentation of the dish. Hence unique and efficient plating and service for dishes and beverages is going to be the top ruling trend in 2019.

Restaurant business has today become very exciting space to be. From experienced people to start ups all are drenching themselves in this business. Seeing the global ratio of franchising where almost all top brands are franchised and are successfully growing in various counties have given a room to Indian brands to look at the same model. When one looks at opening a restaurant especially in a diverse market like Kolkata they need to get their training right, SOPs right, get a lot of technical people on board to be able to assist them and set up systems, it comes with huge cost.

“If you want to really get it right and you want it to be automatize and then only you can replicate it. Here you do not get too much of choice than to expand to get those cost in place otherwise running one restaurant of 70-100 seater and having all those automatization, training and SOPs in place you will not help you make money,” says Nitin Kohli, Business Head, Neotia Hospitality. So, if one has the vision about running a restaurant they need to understand the scope of expansion and what is their cost to build EBITDA in a better manner. One needs to hedge their investments in different verticals and category so as to earn best of it. One needs to go multi brands keeping the focus right.

Going by the local taste

India is moreover United States of India where every state has its own flavour, own palates and one needs to understand that they can’t please everyone in India. Brands entering India or already operating in India needs to understand what their core products are and focus on certain markets and cities despite of going pan India. “We can’t close our eyes and go to markets where no certain target audience are available. For eg: if you are a chicken based brand and you are planning to enter into Gujarat market which has very niche customer base will be wrong idea but at the same time looking at locations like Hyderabad and Kolkata for that matter will be easy to capture the market,” points Rohit Malhotra, Rohit Malhotra, Business Head-India, Barcelos. Meanwhile, relationship with the franchise partner and with the customer need to be understood on what are you giving to the market and what are you going to get back.

Driving with entrepreneurial skill

“I didn’t follow any rule book neither a rocket science. I was about to leave for Australia for my MBA and I went to my father’s restaurant for 15 days and in that 15 days I inculcated a vision that it has the potential to go far. From there my vision was expansion,” shares Bishal Saha, Proprietor, Kasturi Restaurant & Food Plaza who took his father’s restaurant to make it a brand. “My father taught me few good things that helped me grow this business; don’t serve something which you won’t have, you wants serve to your kid, the taste of the tongue is the same. I only serve food which I like,” adds Saha.

Thus, we can say that food business is all about expansion. If your brand is doing right and you have got the proper mix of the prepositions you are ready to expand.

Franchising your restaurant may be a good way to grow fast. Globally it is witnessed that more than 90 per cent of the restaurants are franchise. Brands like McDonald’s, KFC, Pizza Hut and Burger King amongst others who have tailored a nice growth is running on franchising. Industry results and data show that franchising makes one learn the key aspect of driving and making the restaurant a profitable business. It is a great way to understand the business from scratch. It is also believed that 95 per cent of franchised outlets are doing well today as compared to company owned restaurants. In the last one year Indian food business has seen many new trends hitting up the sector. Restaurant India has found these few sectors to invest your franchisee business. 

Fast casual is the new wave: It’s more than just having your food today. Restaurants which can actually address the basic requirement of a customer is major hit. Restaurants like Au Bon Pain, Chilli’s which give customers an option to look inside the kitchen and see what’s happening with their food is a major hit. The segment is the middle man between fast food and the casual dining. Fast casual restaurants cater to high quality ingredients and fresh food focusing on cheap price and quick service. And, since, there is an increased awareness about food nutrition more and more customers will prefer these restaurants over other restaurants.

QSR will not stop to grow: Domino’s and McDonald’s is one of the biggest examples of a QSR franchise. Sitting at 1500 plus odd numbers these QSRs are still hungry for more and so is their customers. In India it is still believed that franchising is the most attractive and trusted model when an international brand enters the country. Same goes with Indian QSRs like Goli Vada Pav which has opened 500 plus outlets in the country. Hence, there is so much opportunity for quick service brands to open more outlets as QSR industry is growing at an annual compounded rate of 22 per cent to reach market size of Rs 24,665 crores by 2021.

Build your own: Customisation is an important part in restaurant business. Concepts like DIY (Do It Yourself) and build your own are doing good business in India as it gives a customers to choose from his liking and do things their way. Players like Barbeque Nation, Pirates of Grill, Subway is building good catchment on customer orders to their exact specifications by serving the food they want it to be. If you want to keep your customers happy, you will need to find more ways to allow them to customize your products and services. More fast food franchises are allowing their customers to use a touch screen menu to choose everything from burger size, type of bun to the toppings.

Popularising on Social media: Social media has become an important tool in promoting your brand. People today are way out of traditional advertising they look for content on networking sites. Also, instead of grabbing content they are much more responsive on video content. In 2017, franchises should make digital advertising a bigger part of their advertising budget with a special focus on posting videos from their kitchen, menu preparation and serving food.

Casual dining is making big numbers: It is all the ball game. Casual dining catches millennial and hence it is the biggest noise maker. With a varied option to choose from the segment offers a light environment and value for money meals. Also, these days’ people are more into drinking than eating and this is the biggest footfall gainer in the casual dining restaurant.

Trading on experience: It’s all about experience. People go to a restaurant for an experience- dining, service and food. If your restaurant is doing out of the box menu, service and ambience it will surely attract customers. Franchises need to think out of the box when it comes catering to the new age customers. They are less interested in accumulating expensive things and more interested in living life and having fun experiences. Hence, if you are looking out to enter franchising as business you should think more in terms of selling experiences than in selling products and services

Entrepreneurial journey

It was an accident entry though I was always enamored by the glamour attached to it without knowing how hard it is to maintain it. I used to boast in school about celebrities visiting our restaurant. I got a job of Rs 600 per month after clearing school when the trend of summer job was just started in India. But my family told me that they will give me Rs 700 to join Moti Mahal. So I declined the former. Initially, I was asked to sit in the kitchen. I was quite disheartened of living the job at the library/bookshop but then gradually I started learning how the kitchen works. In 1983 when I was 17, I joined the restaurant.

Formatting the recipes

When I joined there were five restaurants and we have more than 150. I was able to format all the recipes. There was no recipe standard, what chefs made was on all hearsay by what my grandfather told them however the consistency was unparalleled. So when you are teaching a chef or your assistant, they would just see and learn whereas I said that we must format the recipes. So I started maintaining a manual for each recipe. Within six months I decided that I must have 100 restaurants by next 100 years and this thought came out of the blue and that time I didn’t know anything about franchising, chef training etc. So from day one I was focused on industrialization of Moti Mahal and that was my vision to take it forward.

Reinventing the brand

Unlike a jewelry shop where you know x pieces are sold and you have inventory, in restaurant inventory control is a big challenge. If 200 kg tomatoes are coming how would you know how much is being used for different dishes and hence lot of leakages would happen, first three years I was deputed to the store where we used to do purchases etc. So I realised we have to overcome this challenge in order to expand. This was after my hotel management.

Flying high

We went international in mid 2000. Fortunately, for me Indian retail boom started coming in 1999-2000 and by that time I had done my experimentation, prepared my database and software for inventory etc and I was ready to go ahead. We started with opening more restaurants on revenue sharing basis with partners where they invest and we would run the restaurants. Through this we expanded nationally. My father always wanted to open Moti Mahal abroad but he died very early at the age of 52 so I had his dream to get fulfilled and so we started participating in international trade fair, franchise fare in order to open abroad. We started franchising around 2004 and abroad we are in Middle East with five restaurants in Saudi Arabia, one each in Oman, Qatar, Africa and New Zealand, and we are looking to open in the US.

Changing the food biz scenario

We changed with demand and palette of people. In cities like Delhi, Mumbai, Kolkata and Chennai there is a requirement of specialty restaurants. In tier 2 and 3 cities some would like Chinese, continental, fine dining, multi cuisine, so we started doing that as well. We have nine brands that we deal with. My grandfather launched moti mahal, my father launched moti mahal deluxe in 70s and when I started franchising, I wrote a book called moti mahal tandoori trail my first book, so I started my brand moti mahal deluxe tandoori trail. Then we made china trail, dosa trail, chat trail, golden oven, biryani trail, kabab trail.

On footfall

10-15 percent sales depend on social media. It is an easy way to market one self. Our restaurants typically are around 65 seater with 10-15k people coming to our restaurants daily. We have around 10-12 company owned restaurants and rest are franchised.

The Legacy

Md. Evaz, father of Karim Uddin, was the chef of royal court of red fort’s kitchen. During 1857 revolt, escaping from red fort, he took shelter in Ghaziabad. To pass on his legacy, he taught all his recipes to Karim Uddin. In 1911, during Delhi durbar, Karim Uddin set up a kiosk in front of Jama Masjid gate no. 1 to sell aloo gosht and daal. His food was an instant hit and following this, he set up a shop in in Gali Kababiyan, in 1913. “I am the fourth generation and I joined the business in 1999 when I was probably 20 year old,” shares Zaeem Uddin.

The Food

Karim’s food has continued to remain equally popular even today, which helped it to become a legacy restaurant. Customers who came here with their grandfather, now, come here with their grandson. The waiters take orders verbally; there is no need of paper or tablet, they know the menu by heart as they have to repeat same orders every day. Known for their mutton burra, chicken delicacies and biryani items, this restaurant make their special spices. “The taste of the dishes is same what it was when it was started,” Zaeem adds.

The restaurant has around 50 to 60 items on their menu, and there are around 5 to6 signature dishes like mutton seekh kabab, mutton burra, badam pasanda, green curry, chicken jahangiri, sheer maal and kheer. “We get 1,500 to 2,000 daily eaters at Jama Masjid branch. We have monthly sale of up to Rs 2 crore at Jama Masjid branch and around Rs 20-22 crore annually,” points Zaeem.

Flying High

The group is running around 20 restaurants in Delhi-NCR and all are family member branches. Jama Masjid branch has a seating capacity of around 300 people which is packed most of the time.

India is the fastest-growing market for global franchisees. What is the reason that franchised restaurants are a big hit in the market?

The cosmopolitan Indian is eager to explore new tastes. Eating out without any occasion is the trend as we see food lovers are more than willing to experiment– India has a large youth population which has higher frequency of eating out and this has lead to the success of global franchised restaurants. Further, India requires a strong local knowledge and operating expertise, therefore International brands prefer to franchise to local partners rather than invest and open stores themselves.

Copper Chimney is known for its heritage. What made you enter into the franchisee business?

As the brand Copper Chimney built its reputation, the trust that our customers and partners had with the consistency of our brand in the food and service space, was instrumental in building up the franchise business. As an organization, we stand for very clear business principles and look only for the right partners; this approach has enabled to find the right likeminded people in our franchise business across the country. For us, the franchise business enabled us to work with these likeminded individuals or corporate to further build the brand, and therefore as such we currently have two large franchise partners for our Copper Chimney brand in India, namely Pan India Food Solutions (co-owned by Everstone Capital) who is a franchisee of multiple stores, and CC Fine Foods (co-owned by Mahadevan, Founder of Oriental Cuisines) in the South.

You are one of the pioneers in setting up restaurant franchisee system in India. What are some of the franchisee trends that you are seeing in India?

The franchise business model is well suited for promising entrepreneurs and for those with a passion for the food business. We believe that over time, once franchisors build up the right structures with their franchisees, there will be the growth of larger multi-unit franchisees. Franchisees today are turning from investors into owner-operators, which will help the growth and success of the franchise business even further.

What are the criteria that you look into before signing a franchisee deal?

Apart from studying the financial backgrounds of the prospective franchisee, we ensure that the franchisee has a passion to drive the business with the expertise in conducting his business in his local market. The commitment and background of the franchisee goes a long way in our selection process.

How many franchised outlet are there under Copper Chimney brand today? And, what is the expansion plan?

Currently for the Copper Chimney brand, we have 13 franchised outlets in India. Internationally we operate 2 franchised outlets in Kuwait and have signed a 5 outlet franchise deal in the UAE. We are now focusing on multiple company owned stores in India in the near future, along with further structured growth in both domestic and international strategic markets that we have identified.

As you have launched many new brands and formats catering to the new age customers? How is the response so far?

Our other verticals within our corporation own and operate numerous other formats, which we have been able to scale significantly and profitably over the past few years. Each vertical team continues to remain focused on its core brand and is continuing to scale them up nationally.

How are you trying to engage with customers at your cafes?

Our café business is part of our larger F&B concession vertical as well as travel business vertical. Each vertical conducts a variety of activities, innovations and strategic marketing initiatives over the year through which we engage with our customers.

Copper Chimney’s success in India is remarkable. Any lesson that it could give to other markets where you are entering?

Apart from our legendary food, proprietary ingredient control, and consistent quality, we have been successful in scaling up our standard operating process which translates into operational consistency making it easier to enter new markets. We bring a strong and intricate understanding of Indian cuisine, its ingredients and unique flavors; this enables us to tweak and adapt our brand in a well researched manner to each market or region. We combine this with our strong operating processes to ensure we build up a powerful model for our franchisees across locations.

You are one of the few brands in India who is known for promoting travel food? Tell us something about the business?

Our travel retail vertical arm, Travel Food Services, is the largest and strongest player in the sector, with over 200+ locations across airports, railways and highways. We work with the best local, national and international brands to bring them into this space, through the franchise route.

As your major focus lies on this business. How about franchising in this space?

The travel business contributes roughly 50 per cent to our overall system-wide revenues. We franchise numerous brands across the country, and are a preferred partner of choice for all these brands as they are building up their presence nationally.

What is your expansion plan?

Each business head has set in place an expansion plan to scale up their respective brands and/or verticals nationally and/or internationally. Ultimately our focus is to deliver high quality, consistent and innovative food and beverage experiences through our large family of passionate team members, and we hope to keep expanding to continue to deliver on this mission.

Bengaluru based Five Star Chicken has rebranded itself from ‘Five Star Chicken to 'Five Star'.

The name change is a part of the strategic plan by the brand to introduce more vegetarian products to their portfolio.

With this move, the brand name will also be synonymous to its international counterparts in other countries under Thai Multi-National Conglomerate, Charoen Pokphand Foods.

The agenda

With a growing network of stores and rapid consumer acceptance, Five Star is all set to introduce a wide and interesting range of vegetarian products to the market.

“50 per cent of Indian populations are vegetarians and as a brand we do not want to miss out the opportunity to reach out to half the population. Though 40 per cent of our product line is Veg offering people had a strong perception that we are only a chicken brand,” shared Rijoy Prabhakar, Assistant Vice President, CP Foods.

Adapting to the local taste, flavor and developing products those appeals to masses has been one of the key strengths of the brand. The company has its own state of the art infrastructure for storage and distribution and exercise complete control over the quality from 'Farm to Fork' to ensure consistent quality and food safety.

"While, we have a new name, we are still the same brand build upon the vision of offering great quality and delicious range of products at affordable prices to consumers. The name change is in line with the brand plans to capture the vegetarian segment of the market and give them a taste of our offerings. Moreover, we would also like to retain and reinforce our global brand name- Five Star, in the Indian market ", added Prabhakar.

"India is one of the top five priority markets for Five Star globally. We place significant importance on research and development to meet our customers and consumer's needs as well as improve production efficiency at every step of operations which ultimately benefits our business partners", further said pointed Sanjeev Pant, Senior Vice President, CP Foods

In India, Five Star launched its first outlet in November 2012 in Bengaluru. With a production and processing facility at Budigere near Bengaluru and Chittoor in AP the brand has grown to 350+ outlets across Bengaluru, Chennai, Kochi, Goa, Hyderabad, Mumbai and Pune. The brand has tied up with IRCTC for Bangalore, Chennai and kerela markets and with key delivery website Swiggy, Zomato, Food Panda, Road Runners and Ola. 

1948. A year after our great nation is born. The whole country was still revelling in its new-found Independence. Two gentlemen, P N Malhotra and G K Ghai, who are also newly arrived to Lutyen’s Delhi from Karachi decide to set up one of the city’s most iconic gastronomic hotspot- The Embassy Restaurant. Their contribution to the gastronomic landscape of New Delhi is undeniable. Whether you were the then Governor General of India, Lord Mountbatten, or a newly minted citizen of India, The Embassy Restaurant in Connaught Place’s D-Block, was the centre of a gastronomic universe and a young country.

As the years went by, the legend grew. This was a restaurant where everyone met. Many marriages were made here. Some for love, some in the sphere of business and some in politics. And, as the day’s passes by, the third generation with a modern touch is ready to expand the legacy to other parts of Indian. Savar Malhotra, who after taking the realm from his father Sunil Malhotra had a vision to keep the iconic flag of The Embassy Restaurant flying high in India’s gastronomic landscape. He was ably supported by his father’s long standing friend and business partner– Rajnish Bahl.

Tell us about your journey of setting a legacy brand?

We started in 1948 with one restaurant at Connaught Place. We didn’t expand our restaurant much but, we had the catering business which was successfully running. We started franchising last year since I joined the company and are soon opening Janakpuri in June. We are also getting out franchisees from Gurgaon, Hyderabad, Jaipur and Agra which are already in the pipeline and we should be closing it by end of 2016. So, by end we should have at least 10 restaurants on paper.

How many restaurants are presently operational?

We are running two outlets presently. CP is an all day diner restaurant with bar but, we focus on restaurant. Civil lines are a fine dine restaurant which focus more on lunch and dinner. And, we are running catering which is an outdoor catering also.

What is the average footfall at your both outlets?

We are doing 200-250 daily at CP outlets, including the takeaways. Civil Lines is a 75 seater restaurant and we are doing around 150 people daily.

What are the different kinds of model available for franchising?

We have three models that we are franchising- Express model which is a small café model which will have alcohol depending on its location, a fine dine restaurants which will be a replication to our CP outlet and a lounge cum restaurant.

What is the expansion plan going forward?

We are planning that for every three franchisee that we sell we will be opening a restaurant of our own. And, that’s how we are going to take our 70 years old legacy and that’s the reason we are little pricey and choosing the partners very well. We are keen on Gurgaon outlet which for is lounge and restaurant covering 2 floors of more than 6000 sqft.

Which will be your first franchised outlet?

The first franchise outlet will be Janakpuri which is given to Meerut based Dr Hemant Agarwal. The outlet which is for Express model and we are going to call it as Express Mini which is a miniature of CP restaurant serving Indian and Chinese cuisine. And, we will apply for a bar licensing later on. We will be focusing on food and it will be an all day dining. We took three months to close this deal because we actually select the place of our restaurant. We like to select the place for our restaurant.

What is the franchisee fee for your restaurant?

Franchisee fee varies from Rs 10-20 lakh depending on the model one choose.

What are the criteria for selection of the partner?

The person who actually has patience because is the right person to partner with us because it’s about building a business. And, someone who has the capacity to be patent and willing to wait for the returns is the basic criteria we have. We do not work on a prefix model that, you sign franchisee make money and exit the business. In fact, we are looking for someone who is looking for a long-term business.

What made you enter into franchisee model?

When we talk about franchisee, we are not giving it to everybody. We are choosing people because we can’t be everywhere. And, the kind of business we are in it requires a personal touch. Also, franchisee is an excellent way to grow as the returns are quick.

How many outlets will be operational this year?

We are focused on having at least five operational outlets this year. I need about 10 franchisee and 5 physical presences by end of 2016.

What are the target locations?

We are targeting pan India. We are focusing on opening one outlet in a city expanding the small take away restaurant in the region. 

My partner Shiraz Mirza and I have opened two restaurants in Hyderabad in partnership with AD Singh. The first one is Olive Bistro, a casual European all day bar and eatery and second restaurant that we opened early this year is an all day Bombay Irani Cafe & Bar called Soda Bottle OpenerWala.

How was the response so far?  What types of cuisines are there at your restaurant?

The response at both our restaurants has been quite overwhelming. At Olive Bistro, we offer an all day comfortable and delicious European menu serving soups, salads, sandwiches, burgers, our signature thin crust pizzas, pastas, mains and dessert. At Soda Bottle OpenerWala, we offer an all day menu of Parsi and Bambaiya specialities like Aloo Aunty's Vegetable Cutlets, Chicken Farcha, Dhansak, Berry Pulao, Sali Mutton and Bombay Street food such as Vada Pao, Bohri Kheema, Chicken Cutlet Pao, Sheekh Parantha and many more.

What are the difficulties that you encountered at the initial stage?

Hyderabad is a very challenging market and it has taken quite an effort for us to mould the palate of people here. Our initial challenge was to handle the guests craving for spices and biryani.

According to you, what is millennial view on today’s food?

Markets are responding very well to comfort food served in a friendly environment with impeccable service standards.

Do you face difficulty in managing the logistic chains at your restaurant?

We do experience a level of issues, but nothing that our teams are unable to solve within a stipulated time frame. My team and I work very closely with logistics; hence we are able to overcome obstacles quickly. I believe that everything can be achieved by hard work and persistence.

What is your target growth for the next fiscal?

We have some exciting targets set, but we're unable to share the same at this point.

What is your expansion plan?

Expansion is always on the cards, however at present we aim to stabilise our new baby, Soda Bottle OpenerWala post which we look ahead.

What is your plan for future?

To keep evolving in the F&B industry and we hope our restaurants to share our passion for good food with Hyderabad.

Falafal is the freshest concept in the restaurant business today. Beginning as a very small outlet, the group has expanded its services to IIM-Ahmedabad, seeking a great response and invite from the institute. And, with a target to achieve over 50 stores in 3 years, the juice brand is betting big on the highly ripe food business market.

Share your entrepreneurial journey and what led to the birth of your brand?

It was a thought that struck my mind in the office where I used to work before starting my own venture. Then I shared this thought with my parents who used to live in Mumbai at that time. So, then I started working on the strategy part and other things which eventually led to the birth of FALAFAL.

How many stores are there within your brand today and what is the average store size?

As of now we have 2 stores under the brand name of falafal. The average store size is of 700 sq. ft.

What are the challenges with growing your (franchise) business-i.e. maintaining standard, brand integrity, customer experience etc. and how have you addressed these challenges?

Yes, there are a lot of challenges when you are expanding, but I have strong and experienced team of people who work hard round the clock to maintain standard, customer satisfaction and all. Above all, we also have very strong IT support, that minimizes our problems and help in maintaining the standards.

As you are serving the freshest concept, how is the response so far?

So far we have got an overwhelming response. Within six month from the date of starting Falafal we got an offer for IIM Ahmedabad to open up an outlet at their campus. And now also from a small shop of 250 sq. ft. we have almost 1500 sq. ft. of space for the cafe at Drive in (our mother outlet).

What are the extended menu other than juice and shake?

Apart from juice & milk shake we have fast serving items like sandwich and wraps. We also have antipasti pizza, pastas and dessert as well.

What is the average duration a customer spends at you cafe and the average price break up?

More than 50% of business works on take always. But apart from that, a dine-in customer spends around 45-60 min at the cafe. The average ticket size is Rs. 200-250/-.

Do you have growth targets for next few years and any strategy for how you intend to achieve this?

Yes, of course. We are now looking to come up with 50 stores in 3 years across the western region via franchising.

How are you building on quality at a time when your model is based not on food but time?                                                                                                                                                     

It starts from the procurement itself.  We buy the best brands and best quality fruits available and we have dedicated vendor for that. So, it helps us in maintaining the quality.

Where would you like to see your Brand in the next 5 years?                                                 

In next 5-7 years our target is to cover up major cities of India and is expecting around 200 stores in next 7 years. I see FALAFAL in the top brand of the nation.

Franchising is always considered as the biggest medium to grow the brand when it is ready to cross the geographical boundaries. But how one plans to take the franchising route is a bit confusing in today’s time when we see a brand opening with a big ban, closing its operation within few months or years of its inception.

Many a times when a brand fails to cater to the right kind of customer, mistaken to open at a low traffic location and has systems which is still confusing, that’s where a brand fails, shuts its operation. Hence, the right time to enter into the franchising model is when one is sure that his systems and processes are in place to expand the brand and take it to the next level of development.

Adding his view on the same, H. Jason Araghi, Green Beans Coffee, shared “You have all the systems, processes, the recipes, the people to develop and operate a business partner. Also your brand can be replicated into a smaller format. That’s the right time when a brand should start developing franchising.”

Copper Chimney which was started way back in 1972, took the franchise route in 1994 with Chennai which is still very successful restaurant. Even at that time the brand didn’t change the essence of the concept, but developed an entire set of standards and cuisines which could be replicated as it was replicating their success with the franchised outlet. So the system which they develop in the brand is taken to the franchise segment and the franchisee can then have a successful format.

“We are ready to franchise so that we ensure that the franchisee is successful. It is not all about franchising and building a brand, but it’s about building the brand with the success of the franchisee,” pointed Shikha Nath, Director, Copper Chimney.

Adding to the same lines, Sam Chopra, Chairman, CybizCorp shared, “Brand already has a passion to drive the business but it is the responsibility of the master franchisee and the franchisor. Master franchisee has profitability in the mind rather than the passion. Therefore, the brand should not allow the master franchisee to sub franchisee as this may dilute the business.”

It’s not that a brand is popular and it should franchise, when the brand has set systems and the procedures and at the same time it can train the people well is where it can think about taking the short cut route to expansion because as it is believed that entering into a franchising deal is all about a marrying a brand.

Commenting on the same, Karan Tanna, CEO, Kutchi King said, “It is very important to know what your strength is. One need to understand is the product right for franchising, the acceptability of the product for franchising model and making it extremely easy for the franchisees to operate the model from starting the outlet, recruiting the staff to successfully running the business.”

However, sharing his view on the same, Uday Mathur, Co-Founder, Tea trail shared, “It depends on model, there are model which can be franchised and which can’t be. It is also about matter of understanding the model and then starts franchising.”