AMERICAN FARE IN

THE INDIAN MARKET

TGI FRIDAYS:
AMERICAN FARE
IN THE INDIAN
MARKET
Written by Dale Benton
Produced by James Pepper
3
 TGI FRIDAYS SUCCESSFULLY
TRANSPORTS ITS RECOGNISABLE
GLOBAL BRAND TO INDIA,
NAVIGATING THE UNIQUE
CHALLENGES OF AN EVER-
CHANGING MARKET

A
s a franchisee, striking the balance between having the
freedom to create your very own offshoot of a brand
versus the need to maintain specific aspects of a mother
companys DNA can be quite the juggling act. For TGI Fridays
India franchises, its a juggling act that is reaping the rewards.
The philosophy of TGI Fridays has been that
you have certain DNA structural dynamics of the
brand that keeps it one global brand, says Rohan
Jetley, Promoter and CEO of TGI Fridays India.
However, the ability to act locally is an
equally important part of our approach.
For TGI Fridays India, the franchise must contend
with establishing the recognisable global brand
not just in the one Indian market, but smaller
markets throughout the whole of India.
These sub levels of inner markets naturally bring with
them a heightened degree of complexity complexity
that Jetley and TGI Fridays must successfully
navigate in order to succeed and grow.

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 FOOD AND DRINK

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 FOOD AND DRINK

MARKET COMPLEXITY question then becomes: do you

At the time of writing, TGI Fridays India indigenise the products you sell to
currently has 12 operating assets and consumers to become successful
15 restaurants throughout the country. in a particular country, or continue
Managing the different complexities to import them internationally?
that each asset brings with it continues The answer to that question is an
to remain as one of the biggest answer shared by both Jetley and
challenges that Jetley must overcome. TGI Fridays International, and its an
Across the different cities, they answer dictated through the structural
have different food, makeup and business
languages and model of the company.
cultural dynamics, TGI Fridays is
so to cater to designed in a modular

700
each city and its way that promote
preference requires efficiency and quality
a lot of intuitive Number of with American dishes.
understanding of employees at TGI Jetley admits to
the market; even Fridays India incorporate more
within these markets Indian foods and
those preferences recipes would not be
are changing, he says. impossible, rather inconvenient.
You have to have your ear to the The challenge with indigenising
ground and have a good pulse on the products stems from two elements;
markets and its changing trends, and consumer expectation and
also identify the different complexities TGI Fridays commitment
across the cities. Not many other to quality.
countries have this challenge. Consumers
TGI Fridays is recognised globally walk into a TGI
as an Americana food and beverage Fridays with an
restaurant. As a franchiser, the element of

w w w. t g i f i n d i a . c o m 7
T G I F R I D AY S I N D I A

CONSUMERS WALK INTO A TGI FRIDAYS WITH

AN ELEMENT OF ESCAPE FROM INDIA AND INDIAN
FOOD. IF WE INTRODUCE INDIAN FOOD WITHIN THAT
ESTABLISHED MENU I FEEL IT RUINS AND DESTROYS
THE PURITY OF THE TGI FRIDAYS THEME
escape from India and Indian and quality driven supply chain,
food. If we introduce Indian food and for TGI Fridays India, the supply
within that established menu I feel chain industry in India is riddled with
it ruins and destroys the purity of two major problems: the supplier
the TGI Fridays theme, he says. shortage and technology gap.
Indian foods have a lot of TGI Fridays has a series of non-
complexities and are chef driven; negotiable standards with regards
to try and systemise it with a to the products it buys from
TGI Fridays recipe wouldnt do it suppliers. These standards set
justice and to the quality that we out specifications that suppliers
are committed to delivering. must comply with, including food
safety sanitation procedures and
SEAMLESS SUPPLY CHAIN certain back end behaviours and
No restaurant franchisee can be the way the materials are handled.
successful without a highly efficient The problem here is that the food

8

industry in India hasnt evolved
to a point where the end user
can demand a certain amount of
food safety procedures, allowing
suppliers to base their expenses
on demand and ultimately having
no procedures in place.
Its very much a sellers
market. We have an environment
with one or two suppliers that
can cater to your specifications
and standards, says Jetley.
It makes it difficult for us to create
any lateral movements with the
suppliers and hinders any negotiations
FOOD AND DRINK
on prices or timeframes as, quite
frankly, theres nowhere else I can go.
An ever-present conversation for
the food industry globally is that of
cold storage, and in India this has
been a historical issue. As a power-
starved country, adopting and using
refrigerated transport storage proves
a very costly process; resulting
in only a limited number of
companies being able to
utilise cold storage.
Technological
advancements,
including
w w w. t g i f i n d i a . c o m 9
T G I F R I D AY S I N D I A
satellite feeds and remote data,
is removing a lot of the issues
surrounding cold storage.
TECHNOLOGY
Technology across the food and
beverage industry is transforming
the way companies and chains
interact and market to consumers.
The rise of tablet and mobile devices
has seen restaurants follow suit and
develop apps designed to tap into this
empowered generation of consumer.
In India, consumer interaction
is handled a little differently.
Around 50 percent of smartphone
users dont have internet on their
phone unless they are in a Wi-Fi
enabled hotspot. Reliability on
online applications right now is a
little bit premature, says Jetley.
The company uses a loyalty system
in which customers earn and store
points within each TGI Fridays
restaurant. These points
are updated and stored
through text messages.
This works through
a simple
exchange of
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data, data in which TGI Fridays uses
to tailor specific promotions and deals
towards specific consumers based
on their activity and food choices.
Its about gathering data,
building loyalty and providing value
to your customers with discounts
and special offers, says Jetley.
But its not just consumer focused
uses of technology that Jetley is
concerned with. The company is
currently implementing a major ERP
system into its back-end processes.
This technology will significantly
improve the supply chain as well
as adherence to recipes and costs
of running the restaurants.
This ERP system isolates any
margin of error from purchasing raw
materials to selling it in the restaurant.
This is just about to go live and will
have a significant impact in terms of
creating efficiencies in labour, food
costs, beverages etc., he says.
CHANGING FACE
Maintaining an element of the
structural DNA elements of TGI
Fridays stretches beyond the food and
beverages cooked and prepared in the
 FOOD AND DRINK

w w w. t g i f i n d i a . c o m 11
I FEEL ITS EASY TO BUY MARKET
SHARE, BUT AT THE END OF THE
DAY REAL VALUES MATERIALISE
WHEN YOU SHOWCASE AND
JUSTIFY INVESTMENTS THROUGH
THE BOTTOM LINE WHICH
IS REALLY THE HALLMARK
OF ANY BUSINESS

kitchens and featured on the menus.
Part of what makes TGI Fridays
such a recognisable brand is the
signature style and decor throughout
its restaurants the world over.
The company is currently reworking
its entire restaurant design to take
the company back to its roots as
a singles bar in Manhattan back in
the 60s. This is a deliberate choice
in India as the global split between
food and beverage across TGI Fridays
sees 70 percent of sales in food. In
India, the split is exactly 50-50.
TGI Fridays in India is recognised
party place, visited by the younger
generation. This interior design
direction compliments our positioning
in India specifically, says Jetley.
TGI Fridays is not the only restaurant
chain in India, nor will it be the last, but
FOOD AND DRINK
Jetley believes the company stands
tall, and will continue to stand tall,
above other major players because
of its operating business model.
The company has zero third
party investment of private equity
funding all of capital investments
are funded through internal accruals.
This is unique to India, with the major
restaurant chains often funded
through third party investments.
I feel its easy to buy market share,
but at the end of the day real values
materialise when you showcase
and justify investments through
the bottom line which is really the
hallmark of any business, he says.
Thats when speculation
meets reality and thats what
differentiates us within our consumer
competitive portfolio.
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M/s Bistro Hospitality Pvt. Ltd.
C-32A, Nathu Singh Market,
Masoodpur, Vasant Kunj, New
Delhi, Delhi, India 110070
T +91-11-41242200 / 41552681
F +91-11-41552684
stakru@fridaysindia.com