In the month of January 2017 Mr. Aftab
is worried about the future of his restaurant business while taking a cup of
coffee with his partner and team. Thinking about to move from one location to
another because of the huge losses -in July 2016 revenues were PKR.235000/=
down to PKR.110000/= in December 2016-,
customers are not returning and losing the customers on regular basis despite
they are giving the good taste and services to the customers. Mr. Aftab was
exchanging ideas with the partner and team, concerning how to improve the
restaurant service delivery process, what steps we should take to regain the
customers and overcome the losses and make it success in future.
Mr. Aftab after graduating with a
marketing degree and experience of sixteen (16) years in multinational company,
and having a big family. He was passionate about food and wants to open a restaurant.
One day while having lunch in the restaurant, Mr. Aftab was captivated with the
idea of starting his own food business as he felt he would be able to run it
much better way to be a successful business. Mr. Aftab opens a restaurant at
small scale on 5th December 2015. After seeing a good run in a
restaurant with a limited menu, he was thinking about to expand it. But he was
worried about the investment. Once his family friend Mr. Bashir came to his
restaurant for dinner he was motivated by seeing him and his efforts that how
he is doing a business, they both were talking about the business and
expansion. His friend saw an opportunity to invest, he made an offer to invest
for the expansion of this restaurant and work as an equal partner in this
venture under some conditions that have been made with the consent of both or
Mr. Bashir was working on a private
project, experienced in installation and dismantling of telecom towers and also
having some foreign exposure. After ending of the project, he went for the
investment in the food business. Mr. Aftab and Mr. Bashir then restructure and
renovate the business to make it more attractive and profitable. They both
invest PKR.500000/= and employed 4 peoples-waiters- from locality for service
delivery. They operated this business as a project under the name of SAB
enterprises-initials letters of their name-.
Trends in Sukkur and Competition:
This industry is changing day by day
for more advancements in the foods due to that there is huge competition and
opens the door for the new comers to compete in that business. As in Sukkur the
food business had grown rapidly in the previous decade there is low concept of
variety of food and fast foods, but now in every street there is food corners.
Now a day’s people love to eat food outside of their homes at the restaurants
and spots. According to the statistics see
Exhibit 1: the salaried person spending average of their income at the restaurant
in the month. This gives the restaurants an edge to bring new innovations and
advancement in their menus at reasonable costs.
Their competitors are, Al-Habib Restaurant located at the distance of 800
meters. Lasani at the distance of 1600 meters, and other restaurants in the
line, like Nawab Tikka House, and other local restaurants and also the
emergence of Sindhri from Dhabba to restaurant make the competition intense.
Segmentation and Targeting
They are segmenting the customers in
two groups and targeting; one who are the employees in the nearby offices for
that customers they are providing the lunch on the payment of monthly basis;
And the other who are local peoples used to come for outing and fine dining.
They are also giving the discounts to the office employees. And also they are
providing home delivery service within the locality; radius 4 kilometers.
menu consist of few dishes at the initial stage before expansion, consist of
Biryani and green and white Karhai at the lunch time, and in dinner they added
BBQ-Tikka and Kabab. After the investment they reset the menu with variety of
dishes under the category of Desi, Chinese, BBQ, Tea and Beverages. (See exhibit-2 for full menu). And later
on they added some fast foods items
food was made fresh after the placement of order. Their aim was to give the
quality food at reasonable price providing significance against money in terms
of service and taste. A feast of two charged around 300 PKR. (See exhibit-2 for full prices)
food was located in a rented space in the upscale B-81, Hamdard society,
Sukkur, because of the offices and innumerable residential building in the
locality, after much hunt for the location Mr. Aftab chosen this particular
location for convenient and accessibility.
Mr. Aftab was a marketing graduate, he thought that (BTL activity) will give
better exposure to the good food. And also they visit offices nearby for
marketing purposes and uses word of mouth communication. They interact with the
customers to know the taste and preference of the customers in food. The idea
was to use personal selling and interaction to build rapport, in turn
encouraging word of mouth recommendations. And also he uses the billboards and
flyers to make it visible to the customers of their existence.
On different occasion they are also
giving some deals and discounts coupons in the magazines.
planned the interior like, the customers feel like it as a home, because the
location was set like a bungalow. They are giving the homely touch. The
ambience was one that would appeal to a young adults and families, and
providing the cool, calm and comfortable space.
Staff and Services: The staff was consists of 11 skillful and trained staff. Three chefs as
one for Desi foods, one for Chinese and one for BBQ. And Desi foods chef have
one assistant who assists him with helping hand for cutting and washing of the
ingredients. Four waiters as the two for customers who sit outside of the
restaurant and two for the customers who sits inside like families and others.
And one person is responsible for home delivery services. One is a dish washer
who is responsible for the washing and cleaning of the used utensils and makes
it hygiene for the next use.
The dilemma is Mr. Aftab and Mr. Bashir
is losing customers and thinking on the plan. They were searching about the
problem what happen to this venture, why they are losing customers? After few
days spent on research they come to know, according to some regular customers:
they were not consistent with the taste that they are providing in Desi foods.
Other than this reason there was complaint of service delivery that they are
taking more time to deliver their foods to the destinations. Mr. Bashir suggest
him to change the location of the business or start a new venture with new
name, new place that starts from the scratch. And one of his team members also
gave suggestion to change the Chefs and go with the current restaurant and
reposition them. What should they do? Is it viable to change the chefs or go
for the new location with new name? If they change the chefs, how they should
change the customer perception about the taste consistency of the good food?
What type of strategies will be helpful for them to cater this type of