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6 Reasons Why Your Diners Aren’t Coming Back For Round 2!

In the wake of COVID-19, restaurants in India are witnessing a sharp fall in the number of footfalls. Even before the outbreak of the pandemic, there were certain reasons that stopped diners from making a repeat visit to the same restaurant. As the current prospects are bleak, you would be definitely interested in finding out those reasons. Here are 6 reasons that keep diners away from restaurants.

Poor food quality

The prime consideration for any customer to visit a restaurant is the quality of food offered. Imagine a diner going through an unpleasant experience such as undercooked grilled chicken or a salty fish curry. It’s quite natural for the customer to post a negative review in social media about that restaurant. Hence, always keep in mind that you maintain consistency in the quality of food offered. It matters a lot when you serve the fresh, delicious food in right quantities.  

Poor customer service

Arrogant and rude behaviour from the restaurant staff and undue delays in serving can be a big letdown for the diners. Imagine a customer ordering for a dessert mentioned in the menu. After making him wait for 15 minutes, the server informs that the particular item is out of stock. It can be a big disappointment and no customer would ever want to visit that restaurant again. The customer expects your restaurant staff to greet him politely, offer suggestions, and serve the food on time.

Exorbitant pricing

Affordable prices is one of the important considerations for diners to make repeated visits. If the prices at your restaurant are higher compared to your competitors, then there are chances of losing customers. An effective solution for this problem is to offer food items at different price points. By charging lower prices for popular meals and higher prices for other dishes, you can satisfy customers belonging to different categories. 

Absence of loyalty programs

If your restaurant does not offer loyalty rewards for the customers, they are less likely to visit next time. Majority of the diners do their research and compare the incentives offered by various restaurants. With the help of digital restaurant platforms such as inresto it’s pretty easy to offer a customised loyalty program. The points can be awarded based on the number of visits or amount spent. Make it simple so that the customers can redeem rewards for discounts, freebies, or points.

Missing hygiene

Your restaurant may be appealing in terms of aesthetic interiors, but a dirty dining table, soiled table mats or an overflowing dustbin can be a turnoff for the diners. The outbreak of COVID-19 has made customers more hygiene and safety conscious. Non-compliance to social distancing protocols and safety measures may lead to customers staying away from such restaurants. Educate your staff on the importance of sanitizing, washing hands, maintaining sufficient gaps between the tables and the procedures to be adopted while cooking food at kitchen. A negative customer review on the cleanliness front can prove to be too costly for your restaurant.

Inability to adapt to the latest trends in technology

Gone are those days when diners used to wait beside the restaurant table. Covid-19 has made customers more tech savvy and they book tables well in advance using mobile apps. The absence of facilities such as free Wi-Fi, online food ordering, seat reservation, Facebook and Instagram pages, mobile wallets, and digital menus at restaurants can stop customers from making repeated visits. Employing a cloud based digital Point of Sale system such as Inresto can take care of several functions mentioned earlier.

Parting Words

Restaurants are struggling to cope up with the new challenges posed by COVID-19. In an industry that is already operating on wafer thin margins, the need of the hour is to devise alternative methods to generate more footfalls at your restaurant. Unlike the earlier days, social media reviews play an integral role in making or breaking a brand. The 6 factors discussed above need to be dealt with due care. Hence focusing more on these aspects can no doubt help you earn a place in the minds of diners.

Basics to Brilliance: Incorporating Technology in Restaurants to Increase Efficiency

In 2021, restaurants are looking for innovative ways to increase their sales. As per restaurantbusinessonline, sales at restaurants declined almost 20% last year because of the surge in COVID-19 infections.

To overcome these unprecedented challenges, technology can help restaurants to a great extent. It not only helps improve your efficiency but also achieve drastic reduction in costs. Listing below 7 ways technology can increase your restaurant’s efficiency:

Manage multiple functions on a single platform

Gone are those days when restaurateurs used to depend on legacy billing machines. With modern day, digital restaurant Point of Sales (POS) platforms, you can manage billing with no hassles. There is absolutely no scope for clerical errors, long queues, and misappropriation of funds.

The best part of these platforms is that besides billing, it handles different functions such as inventory management, order booking, customer data management and marketing on the same platform.

Accepts different modes of payments

Post the outbreak of Covid-19, customers have become safety conscious and prefer contactless digital payments over cash payments. In a survey conducted by KPMG, 65% of the participants were of the view that they would not move back to cash payments post COVID-19 as they find digital payments safe and secure.

The highlight of the restaurant management platforms is that they accept all modes of payment options such as cash payments, digital payments such as Google Pay and Paytm, debit and credit card etc.  

Enables data-driven decision making

The cloud based restaurant management systems such as inresto POS provides intelligent insights that aids you in taking better decisions. It helps you find out the items in the menu that are fast moving and those that are nonperforming. Based on this information, make changes to your menu accordingly. Another example is the information provided on the performance of staffs. Recognise top performers and deliver training to those who are lacking. 

Smart inventory management

It’s quite embarrassing when you run short of food items requested by customers at the restaurant. The smart POS systems provide you with timely alerts to replenish the stock. It gets rid of the problem of running out of food items forever. Another major feature is the live-tracking of your inventory from anywhere, anytime.

The system also updates inventory status automatically based on the orders, and you will receive timely notifications. It facilitates optimum use of kitchen resources that leads to reduction in overall grocery cost and requirement. Wastage and pilferage is minimised that again leads to major cost savings.

Advance booking of seats and digital menus

With POS platforms, customers can book their seats in advance and avoid waiting near the tables. For placing orders, diners just have to scan the QR code on their mobile phones and order via digital menu.

They don’t have to worry about touching the paper menus used by multiple people. From the restaurant’s perspective, they can save money spend on printing the paper menus.

Accepts order booking from multiple platforms

As per Forbes, 72% of the customers prefer to go with the food delivery option as they do not want to step out of their house. A popular option preferred by diners for ordering food is via third party delivery apps such as Swiggy, Zomato, etc. The beauty of POS platforms lies in seamlessly processing orders from multiple platforms such as third party aggregators, websites, and apps. 

Automate your marketing campaigns

With the help of platforms such as inresto, you can launch targeted campaigns and automate your communication. Several marketing campaigns can be run simultaneously, with personalised content for each target segment. Reach out to the target audience via different communication channels such as SMS, E-mail, or Push notifications. In a single click, it lets you send promotional offers and messages to a huge number of people.

Parting words

Restaurants are struggling to stay afloat because of the challenges posed by COVID-19. In the new normal, it has become an imperative to embrace technology and explore the enormous benefits offered by restaurant management platforms. It not only brings substantial improvement in efficiency, but also helps you gain an upper hand over the competitors. Thus, technology has proved to be a real boon for restaurants in the post pandemic world.  

Specialist Spotlight: An Interview With The Expert – Rifaquat Mirza!

What, according to you, are the five industry secrets every restaurant must adopt for success?

I don’t know if there are secrets left in the restaurant trade. My answers are more insider tips or best practices I have observed over the years, which may aid in a restaurant’s success. There is no ‘one size fits all’ solution, but the F & B fraternity agrees that these work for the most part.

1) Put a face to the place: It makes a big difference if chefs or restaurant owners become the face of the business and are active on social media. It’s also fine if they choose to hang back while someone else (preferably from the team) takes over the spotlight. The bottom line is, patrons need to be able to associate a brand with a familiar face.

2) Exaggerated Revenue Figures: I’ve noticed the ‘top revenue recall’ phenomenon when I ask about sales figures. People almost always quote their peak sales rather than their average sales. It’s not a conscious effort to create a favorable impression, but it happens. I have been guilty of it too. Just do not use these figures to create or compare your business plans unless you have access to the books!

3) Pre-manufactured surprises or customisation: Create surprises like an unlisted amuse-bouche or a special dish just for kids that’s not on the menu. Systematically incorporate these into your process without letting diners know, so when you present it, your customers will be thrilled.

4) Run all briefs parallelly and concurrently: Successful restaurants design their restaurants around the cuisine, service, and aesthetic requirements of the brand simultaneously when opening a new venture or renovating an older property. For instance, the kitchen should be designed in consultation with the chef, so that all the equipment and counters are in the optimal position for the team to run efficiently and comfortably. Similarly, the bar should be designed to avoid bottlenecks in service even on the busiest of nights. Replicating this across all the facets of a restaurant will help you make the most of the infrastructure into which you are moving.

5) Share financials judiciously: I see a lot of restaurant owners withhold financial information from their top management while some have their figures all over the place. It’s essential to share enough to set reasonably challenging targets. Income and cost statements are not representative of past performance alone, but also a means to assess future goals. The process used to disseminate this information is up to the restaurant owners. The late-night WhatsApp on the day’s performance seems to be ubiquitous, but successful restaurants have regular, formatted meetings for a good reason. Choose not to broadcast the information formally if you feel unsure, but keep management informed. They need to know.

Describe Five industry trends that you see taking off in the next five years.

I won’t pretend to be prophetic to forecast trends for five years in advance, but I will try and share some ideas of what I feel seems to be emerging based on observations, data, and personal and shared insights.

1) Psychographics v/s Demographics: I think there is going to be a higher emphasis on the psychological connection of food and restaurants with their patrons. There will be a lot of ‘philosophical’ restaurants coming to the fore that connect to a particular sense of being, be that sustainability, or underground musical or cultural movements.

2) India will create new service trends: Over the past few decades, we often heard that trends in the US or Europe come to India in a certain number of years, which used to be around 10, now down to two years or less. Besides our cuisine, I believe we will soon be exporting our unique service offerings to the west. Why wouldn’t a Spanish chef incorporate our South Indian sit-down, banana leaf service style? While we market our Indian tapas-style menu, I see American chefs with Tex Mex Tiffins. This could be the new frontier.

3) The All pervasiveness of Technology – 360 degrees adoption: One might say I’m stating the obvious, but technology is progressing at a faster pace than we could ever predict, and restaurants need to ride this wave!

If a restaurant does not invest holistically in a comprehensive technology platform immediately, they will be left behind. PASSION IS GREAT; GUT FEEL IS NOT. If you run your restaurant on instinct rather than data, efficiency and effectiveness will both be equally affected negatively. Use technology to help you with wait-list and table management, home deliveries, POS activities, loyalty programmes, and marketing. Having multi-outlet and multi-delivery model functions are essential. The right tech will give you a wealth of usable data that will help you become more analytical of your business and give you an understanding of how to make diners’ experiences more vibrant, more personalized and more rewarding.

4) Restaurant Renaissance and Recession Simultaneously: These are exciting times for restaurants as all kinds of service models and culinary palettes are emerging, but the forecast of growth doesn’t exist for several reasons, mostly due to internal decisions rather than macro factors. The paradox will continue to play out for the next few years. True-blue organic, growth-led restaurants will lead the way, steaming ahead of cookie-cutter-creativity.

5) The emergence of domestic restaurant chains as regional, national and international players:  We already see a slowdown in the entry of foreign brands. The larger well-established QSR chains from the US are mainly the ones gaining traction. They mastered the art of franchising and growth, but leading Indian restaurant chains are now boasting of best-in-class systems, procedures, and franchising models. Honestly, they have become more economically viable while the allure of a ‘foreign’ chain has lost its shine. These chains are becoming regional and national; notwithstanding the challenges they face when growing out of their local strongholds. Restauranteurs have learned from their earlier international forays, and I bet the big guys will go beyond our borders with great success.

Which, according to you, are the top 3 restaurants in the India today?

I am not ranking these, but rather listing three restaurants that have caught my fancy. A disclaimer: These are my thoughts based on an obvious bias, but I have thought this through. Also, this is from a particular perspective in the context of this interview.  My answers would be different if I were given other parameters.

  1. Dumpukht. ITC Maurya. New Delhi

This much-celebrated restaurant’s cuisine has stood the test of time. They have perfected every dish on the menu and, for me, the single most important factor is that their senior master chef, Chef Ghulam Qureshi, oversees every portion served to their discerning and loyal clientele. It’s not easy to consistently serve with their high standards considering the sourcing of the produce and the delicate nature of the cooking, not to mention the pressure of meeting the high expectations from the diners.

The service is elegantly classy fashioned after the refined art of “mehmanawazi” befitting the patrons and the hotel in which it resides. This place is as close as you can get to the ‘good old days’.

2) Agashiye. House of Mangaldas. Ahmedabad.

Having been born and brought up in Ahmedabad and then grown into a professional hotelier, it has always been on my agenda to showcase Gujrat’s culinary legacy beyond the “sweet daal” and the claim that every food is sweetened.

Agashiye (literally meaning ‘at the rooftop’) is the distillate of home-cooked Gujarati food showcased through a dynamic Thali menu prepared in the manner of Abhay Mangaldas’s household. Abhay is the scion of a renowned business family who converted this historic family mansion into the new showcase for Gujarati culture. The food is simply fantastic, and the part that steals my heart is the traditional mi casa warmth blended with excellent service – the latter being a rarity in Ahmedabad for discerning patrons.

No wonder he recently hosted the Japanese PM along with our PM for lunch, and even though the Taj chefs had curated a Japanese meal for him, the Japanese PM preferred the local fare. He has re-invented two havelis in the ‘pols’ of Ahmedabad and a 3rd one recently. He wears his (and his restaurant’s) fame quite lightly and goes about his business reviving and projecting the grand legacy of Ahmedabad.

When I asked him about his motivation behind this, there were no proclamations of changing mindsets or starting a movement. He just said ‘It’s not always easy for us to serve homely food to people considering the logistics…’ or the cuisine being ‘ just home food from our kitchens.’ Restaurants that aid tourism, go beyond food, and deliver consistently brilliant service over the years,  will always have my vote. His eco-friendly packaged ‘Bhathu’ meal for one and the day’s menu in a large tiffin to serve four are clear winners for me.

3) Social. ( From Impressario Hospitality). All over India.

Riyaz told me about this huge space he had in Hauz Khas Village overlooking the lake where he wanted to do something interesting back in 2013. I didn’t know then that he was on the verge of starting a new trend.

While I was playing around with the ‘third place’ concept with a new chain of hotels, they’ve got the ‘second place’ concept bang on. Years before coworking became the new working; they had already got the place set up as a hybrid concept with multiple-dimensions as the day progresses. Work + Play manifested in a unique model.

I love the food and its universal all-day appeal and consistency. People love the price points. They have ‘culture managers’ who befriend single person start-ups and DJs alike. Their success is well known: the quirky outlet-specific themes lend that extra bit of character while keeping the brand DNA up front and alive. Social is a restaurant that brings its branding to life like never before. Nomenclature is easy, but extrapolating it through street art, curations and being a local magnet is what gets my vote.

 

How to start a restaurant business in India in 7 steps

A lifelong ambition nursed by many budding entrepreneurs is to start a restaurant business in India. Though they possess the zeal, few have knowledge about the process and the formalities involved in starting a restaurant.

To open a restaurant in New Delhi, one needs 26 licenses. By contrast, for opening a restaurant in China and Singapore you need to get only 4 licenses. (As per the Economic Survey). The aim of the article is to shed light into the various steps involved in starting a restaurant business in India. Listing below 7 steps to start a restaurant business in India.

Decide the concept of your restaurant

As there are various types of restaurant formats such as Quick service restaurants, Casual dining restaurants and Fine dining restaurants, you need to first decide on the concept of your restaurant.

The next step is to plan the theme and cuisine offered. Design the interiors in sync with your restaurant theme. Preparing a business plan is the third step, as you require it for future development.   

Raising the funds

Once you have calculated the capital required to start your venture, the next step is to raise the amount. If you are financially sound enough, you can use your own funds for this purpose. The second option is to take a bank loan.

For securing a bank loan, you need to submit a collateral. The last option is that of Venture Capital (VC) or Angel funding. However, in the case of new entrepreneurs, VCs evaluate the restaurant’s future growth potential and the scalability of your business idea before investing.

Choosing the location

Visibility and easy access are two important factors while looking for the location. A ground-floor restaurant on the main road will lead to more footfalls. Research thoroughly about your competitors in that area and the type of restaurants they operate. Before opening the restaurant, you also need to get a No Objection Certificate (NOC) from at least three of your neighbours. 

Evaluating the cost involved

There are various costs involved in running a restaurant that needs careful evaluation.

Some of them are:

i) Food costs – It involves the cost of raw materials involved in preparing dishes and the vendors who can supply them beforehand.

ii) Labour costs such as hiring servers, chefs, busboys, etc.

iii.) Overhead costs – The rent of the building is a major expense and it should never go beyond 10% of your total expenses. The other overhead expenses are that of kitchen equipment, decor and furniture expenses. 

Getting all the necessary licenses

There a number of licenses that you need to get from the government before starting your restaurant.

1. Trade license from the municipal corporation – The cost can come anywhere between Rs.10,000 to 1 lakh depending on the size of your restaurant. The validity of the license is for a financial year and it needs to be renewed in every March.

2.FSSAI – For opening a food business, you need to secure the license from Food Safety and Standards Authority of India. The license can cost anywhere between Rs. 5,000 to Rs.10,000 and there are several factors considered such as the size of your restaurant, turnover, installed capacity, location etc.

3. GST Registration – Restaurants need to register under GST and get a GSTIN number. If you are operating in different states, then you need to have a separate registration for each state.

4.Professional Tax License – For employing a salaried staff earning above Rs.10,000 you need to get a professional tax license. The amount needs to be paid every month.

5. Liquor License – It is pretty expensive and takes a lot of time.

6.Business Registration – The venture need to be registered as a partnership firm or a private limited company.

Hiring employees

Hiring well trained staffs such as waiters who have a deep understanding of the food items and experienced chefs who are really skilled are quite important. 

Investing in technology

Implementing a cloud based POS system such as inresto can help you manage multiple functions such as billing, inventory management, marketing and customer data management on the same platform.

Parting Words

The formalities involved in starting a restaurant in India are not an area of concern for you anymore. The above guide covers all the aspects that would come handy for the budding entrepreneurs.