Hear a fact repeated often enough by people who know their business and it acquires a definite validity. We met restaurateurs across the country during the course of research for our last book, Secret Sauce, and could not miss noticing how many of them were convinced that being perceived as ‘affordable’ was the key to success in the current scenario.
Think back to a time when ‘fine dining’ was the buzzword amongst entrepreneurs with big plans. Their restaurants may not have quite fulfilled the criteria for this style of dining – from top class cuisine to refined service – but interiors were swank, menus extravagant and prices high. We kept hearing that vast sections of the population had huge disposable incomes and luxury dining was ‘aspirational’.
Somewhere along the way, the dynamics of this market seems to have altered quite remarkably. So, Restaurateurs are now talking of being approachable and attractive to a clientele that wants food and drink in a casual setting and NOT pay too much for the experience. How much is too much? From our interactions with restaurateurs we’ve learned that most of them believe an APC of Rs 1000-1500 keeps the customers coming and, more importantly, making return visits.
Look at the restaurants that are now considered trendy or ‘happening’ in the Metros. The Socials across the country are packed with youngsters and even older professionals evidently enjoying the easy vibe, the cocktails that spell fun, the desi food with funky twists and, most off all, the perception of the whole experience being inexpensive. Most people spend around Rs 1000 during an outing to a Social anywhere in the country.
Zorawar Kalra made his mark as a restaurateur with the upscale Masala Library, but his focus is now on expanding the Farzi Café and Pa Pa Ya brands, all of which make the proposition of affordability and great value for money. Seasoned restaurateur A D Singh of the Olive Bar & Kitchen also told us his expansion plans included taking the affordable Olive Bistro brand to more locations. In Bangalore, celebrity chef Manu Chandra has introduced an edgy style at Toast & Tonic with its focus on local, seasonal ingredients, but has taken care to peg prices in the super value-for-money range. Mainland China is also growing its less pricey Asia Kitchen brand.
Clearly, even the most adventurous restaurateurs have come to terms with the fact that this is an increasingly price-sensitive market and that the volumes game is the one to play. The ITC’s restaurant specialist and veteran Gautam Anand put it nicely when he said ‘the dining experience must end without any post-prandial distress.’ Most restaurants seem now to have figured out that Rs 1000 or thereabouts per head is the average spend to aim for if customers are to be spared the distress of having overspent on a meal or a round of drinks. Best of all, it encourages them to come back and relive the experience.
