Professional Documents
Culture Documents
Dr. Laxmana P and Smt. Kavitha S
Dr. Laxmana P and Smt. Kavitha S
“Is Chaat Business gaining momentum? – A Case study of Pani Puri Sales at Davangere
City”
Abstract
The current study is an effort to study the status of Pani puri business in Davangere district of
Karnataka state. Broad objective of the study is to examine the functioning of Panipuri business
and level of success in Davangere district. To know socio economic status of Chaat vendors
background information has been collected along with the financial information such as working
capital required for the business, daily turnover, profitability of the business and problems faced
by the vendors in the district. At the same time information is collected from customers also to
know the preferences of customer and spending of the customer. Overall study concluded that
Panu puri chaat business has become a bread earner and livelihood for few families. And it is set
to flourish in the coming days as the craze of the customers towards chaat items is ever
increasing.
Key words: socio economic status, working capital, profitability, turnover, livelihood
Introduction
Growing economy and changing life style of consumers have changed Indian food market
drastically. Reports indicate that Indian food market is set to double by 2025 3. Study by
Mckinsey (2008) on Indian food market has revealed that food consumption in India is expected
to grow from $155 billion to $ 344 billion4. Study highlighted that urban consumers consume 10
times more snacks than rural counter part. Among the regions, western counterparts topped and
loved snacks more followed by northern region counterparts. Organized Indian snack market is
expected to grow at the rate of 15-20% by year; and caters to the tune of 50% of the market
share. However unorganized sector is worth $1.56 billion and is growing at the rate of 8%.
1
Chairman, Department of Commerce,Davangere University, India
2
Assistant Professor, Manipal University, Bangalore, India
3
The times of India, (2008),”Indian food market set to double by 2025”,29th July, available at <>last access on 26th,
may 2009)
4
Ibid
Estimated total snack market in India is worth $ 3 billion5. From the data monitor survey (2008),
Indian savory snack market has grown with CAGR of 4.4%, and grew by 4.5% in 2008. Further,
entire snack market in India is segmented in to 5 types i.e. popcorn (0.6%), nuts and seeds
(3.30%), processed snacks (0.80%), potato chips (9.30%) and other savory snacks(85.90%). As
per the survey, Japan dominates snack market with market share of 60%, while India has a share
of 12.40% of total Asia specific snack market. Among the several savory snacks, Pani Puri chaat
happens to be one of the popular snacks in India
With increasing working population across the globe, people have developed the so
called habit of eating outside. Food products which can be prepared and served quickly have
started gaining importance. In the modern context, such foods are termed as “Chaat or junk
foods” which are normally served along the street side. Chaat has become buzz word among
teenagers and others as it waters mouth and is available at affordable price. It is so popular that
it has been tasted in one form or the other by every Indian. It acts as a substitute for intake of
evening snacks. The purpose of consumption is to enjoy the taste and is not meant to be
consumed as a main meal of the day, rather a food that supplies brief energy. This is an era
research has proved that there is an increasing trend of consumption of such items and
consumers have started spending more. Though such items are not conducive for maintaining a
balance diet, yet there is demand as it triggers the taste buds of consumers. These chaats are
perceived to be of low quality and unhygienic. However, mixture of sweet, sour, spiciness,
crispiness and availability of different flavors make the chaats more popular. Moreover,
researcher has found out through preliminary observation that there is a good opportunity in
Davngere city for street vendors’ pani puri chaat business and researcher conducted survey in the
month of February 2015 to know the prominence of pani puri chat business in Davangere city.
Different items under pani puri chaats include Maslala puri, Sevpuri, Behlpuri, Kachori,
Alupuri, Kachori double, Dhaipuri, Samosa, special pani puri, Mixture. Among the chaats, pani
puri is found to be more popular when compared with other chat items of pani puri. All these
items are prepared by four main ingredients i.e. pani, puri, sev and masalas. Using these four
ingredients different variants are made available to customers
5
ibid
2
8% 21%
8%
9% 15%
10% 10%
10%
Background
Street foods have always been prevalent and through out the country. As these food items are
inexpensive and somewhat nutritious, play a significant role in catering consumers who feel
hungry in the evening. These consumers however may belong to different social economic
strata and longer commuting distance between their residence and office gives an opportunity
for such businesses to flourish.
Once upon a time Davangere was known as Manchester of Karnataka as cotton textile
mills were booming in Davangere city. Big players such as Davangere Cotton Mill, Chandrodaya
Mill, Anjaneya Mill etc., were found to be very productive during 1970’s. However, due to
internal management problems and lack of competency, companies could not continue their
business. Of late, Davangere city is known for good educational institutions and running small
businesses. Among the small businesses, pani puri business is slowly gaining momentum.
After interacting with pani-puri vendors in Davangere city it has been found that there are
around 128 chat vendors. Majority of the vendors are coming from local Davangere city and a
few are from interior Rajastan. These vendors are from a very poor family, and chaat business is
the main source of income and livelihood. Being lowly educated, they belong to macro sized
families in the range of 3-6 members and have settled in Davangere for more than 6 years.
Educational No. of
background vendors
Illiterate 4
10-15th standard 22
Total 128
Source: Survey Data
15th and
above Educational backgroung of vendors
standard Illiterate
0% 3%
10-15th standard
17%
1st – 5th
standard
22%
5th -10th
standard
58%
Number
of
Size of the
Members
family
in the
family
below 3
members 5
3-6 members 71
6-9 members 51
9 and above 1
Total 128
Source: Survey Data
Resident of No of
Davangere vendors
Less than 2
11
years
2-4 years 21
4-6years 29
More than 6
67
years
Total 128
Source: Survey Data
Further, initial survey feed back reveals that 80% of the vendors are undertaking chaat
business on full time while 20% consider this part time business. Along with the chat business,
part time vendors are found to engage themselves in businesses such as running milk parlors,
news paper agencies, vegetables vending etc., they work in a group, which consists of minimum
of 2-3 members who normally belongs to same family. Outdoor activities are executed by men,
who are involved in procuring ingredients from the near by markets such as new Davangere
market and old Davangere city market. However, indoor activities such as preparing sev, puri,
pani, masala items are done by men or women at home. Chat vendors residence are normally
located 1 or 2 kilo meters away from their place of business, so that they can come in time
(4.30PM) and go late night (11.00PM). Vendors are in the age group of 30-40 years and these
people actively participate in purchase, preparation and distribution of chaat items. During
daytime, preparations such as pani, puri and masalas are done at home. As these chaat items
are popular through out the week, chaat vendors witness no holidays. In case of emergency
holidays are availed by internal adjustment.
Type Number
of of
work vendors
Full
103
time
Part
25
time
Total 128
Source: Survey Data
Number
Age of the
of
vendors
vendors
10-20 0
20-30 49
30-40 63
40 and
16
above
Total 128
Source: Survey Data
Chaats vendors are found to be wide spread in prominent areas of Davangere. They are seen in
places such as Ram & Co circle, gundi chowtry, mandi pet, PB Road, PJ extension, anjaneya lay
out, old market Road, New market road, Moti circle, lawyer road, MCC colony, SS layout,
dental college road etc., Such business are started using own personal finance or raising funds
from private money lenders. It was also observed that majority of the chaat vendors are mobile
and invested on an average of Rs. 15,000-Rs. 20,000 as set up cost. This cost includes ingredient
carrier (mobile), plates, cups spoons, stools, stove, bucket, polythene bags and vessels etc.
However, working capital is ranging from Rs 1,000-Rs 2,000 per day. Working capital is used
for procuring vegetables and provisions. Daily turnover is in the range of Rs.2, 000 to Rs.3, 000.
Mobile chaat vendors generally tend to earn a profit of 10-15% on their investment. The unit
profit varies from Rs. 2 to Rs.3.
Number
Investment (set
of chaat
up cost)
vendors
Rs.5000-
12
Rs.10000
Rs.10000-
31
Rs.15000
Rs.15000-
74
Rs.20000
Rs.20000-
9
Rs.25000
More than
2
Rs.25000
Total 128
Source: Survey Data
Chart 7: Investment details of Pani Puri Chaat vendors
11
Number
Working of
capital per day Chaat
vendors
Rs.1000-
84
Rs.2000
Rs.2000-
25
Rs.3000
Rs.3000-
18
Rs.4000
Rs.4000-
1
Rs.5000
> Rs.5000 0
Total 128
Source: Survey Data
12
13
14
Number
Type of
of
shop
vendors
Mobile 101
Non Mobile 27
Total 128
Source: Survey Data
Ingredients
Required ingredients to prepare pani puri chaats includes, puri, boiled potato, green lentils,
tamarind chutney, masala items, pudina water, sweet water, Black pepper powder, Black Salt ,
clove powder , Cumin powder , Lemon juice masala paste etc., these ingredients vary based on
the choice of the customers. However, the base item/ingredient remains to be the same across all
the items of pani puri chaat that is masala.
15
Operational Activities
Chaat providers are expected to focus on quality and varieties to attract customer. It is found that
minimum of 3 people are required to execute the task of preparation and distribution of chaat to
customers. One is required to take the orders, 2nd one is required for preparing the chaat , 3rd one
for serving ,cleaning and washing the plates. Waiting time observed is 1-5 minutes. Normally
pani puri chaat business starts from 5.30 PM till 11.00PM. On an average vendors cater to 50-75
customers per day. Very few vendors were found providing catering services. Procurement of
vegetables, Masalas and puris for the day is prepared in the morning. On demand of the
customers parcel services are also provided. The ratio of spot/parcel order is in the range of 10:2.
Non-mobile vendors are found to occupy space 150 -250 sq feet by paying rent in the range of
Rs. 500-Rs. 800.
Number
How often catering is
of
provided
vendors
Daily 0
Weekly 30
Fortnightly 45
Monthly and more than
53
that
Total 128
Source: Survey Data
16
25-50 27
50-75 58
75-100 38
More than
2
100
Total 128
Source: Survey Data
Chart 14: Daily Visitors to Pani Puri Chaat Shops
Consumer Profile
Many of the customers go for pani puri rather than any other chat items. Individual chaat
consumers are very few however most prefer to go with family members or friends. It is
observed that target consumers belong to the age group of 18-30 and most of them come from
middle class. Irrespective of occupation, all classes prefer chaats. During weekdays, it is found
that working people dominate chaat centers while weekends family members are found
dominating. It is observed that weekend business is more when compared to week days. And
found that 25% of business comes from weekends. On an average consumers are found to spend
Rs.100-Rs.200 every month and their frequency of visit is restricted to once in fortnight at least
and it is also observed that many of the customers try new items.
18
19
Inventory Maintenance
Most of the business require inventory for their operations and pani puri is not exceptional. This
business of pani puri calls for inventories such as sev, Puri, maslals and vegetables. The survey
feed back has prompted us that vegetables are procured once in a week and leafy vegetables are
procured daily basis and stocked in refrigerators. Special care is taken for inventory such as sev
and puri to stock them under air proof polythene bags to maintain crispiness and crunchiness.
These factors are vital for delivering quality chaats to customers. Other ingredients procured on
monthly basis.
Strategies
It is found that each vendor has unique and distinct strategy to attract customers. Prices are found
to vary among vendors. However, the variation observed is small and is in the range of Rs.2-
Rs.4 and spot orders are more than parcel orders. By buying ingredients in bulk and through
better negotiations, vendors are able to control cost and improve profit margin. Some vendors
stand tall themselves from others by providing quick services, thereby reducing waiting period
while others back on hygiene perspective. Even size of the puri and stuff that goes into puri
becomes discerning factor for some of the chaat vendors. Some vendors even try new
assortments to attract customers. Welcoming guests providing seating arrangements, extra
poori’s for kids and loyal customers, forgoing changes are some of the strategies adopted by
smart vendors. And also pani is given as complementary for the entire customer. Vendors are
also found to target prominent places of public and book their places to cater to customers.
20
Table 17: Rate Details of Pani Puri Items at different places at Davangere
Items Price at Price at Price at Price at Price at
Market Mandi Ram & Gundi Nituvalli
Road pet co Circle choultry
Pani Puri 5 5 7 6 6
Masala Puri 7 7 10 10 10
Sev Puri 8 8 12 10 10
Alu Puri 8 8 10 10 10
Dahi Puri 8 8 10 10 10
Tamoto Puri 8 8 10 9 9
Kachori (single) 7 10 12 11 11
Kachori (double) 14 - - - -
Bhale puri 8 9 12 9 9
Mixure 12 11 12 10 10
Source: Survey Data
Competition
Competition is all pervasive, and hence pani puri vendors are not spared. Other small busines
such as mirchi, vada, mandakki (pava), samosa, chips, rajstani chaats, dosa’s ,idli’s gobi
manchuri specials, fish fries, omelets, noodles etc.,. Are also into the business of providing brief
supply of energy during evening time. As hunger can be met in different ways all generic
businesses eye on the valet of customer. However, it is learnt that competition is not so stiff
between the players of Pani Puri. Simple reason is that two same vendors do not converge at the
same location. It may be a lobby to send the other similar vendor to different locations so that
their businesses are not hampered.
Unavoidable Roll calls: Local area police demand unceremoniously each day
commission/haftha from chaat vendors.
21
Problem of Nomads: Mobile chaat vendors are not allowed to keep their mobile tripods/easels
in front of any shops. Since people jam their places and shopkeepers feel like their places get
polluted, mobile chaat vendors always forced to search for new places to run their business.
Conclusion
From the above discussion it can be concluded that pani puri chaat businesses has become a
bread earner and livelihood for few families. It is set to flourish in the coming days as the craze
of the customers towards chaat items is ever increasing. As working women population is on the
rise, affordability of the family has increased giving an opportunity for such businesses to
flourish. Moreover, chaat business can be enabled with low investment and low skills. Though
quality and hygiene factors are of at most importance, pani puri businesses in Davangere is yet to
realize these aspects in totality. Meanwhile variants are many; it can be targeted for all segments
of the population. As evenings are some sort of get together for youths and working population,
it has become a trend to hang around chaat centers.
References:
Guptha, R. (2008), ‘Indian food market set to double by 2025’ The times of India, 29th July, p. 5.
Makgosa, R. and Mabalane, N. (2011) ‘Fast food purchase behaviors in Botswana- an
exploratory study’, Indian Journal of Marketing, 41, pp. 23-30.
Pani Puri, http://www.eatoutzone.com/PaniPuri.htm (Accessed 4 February,2015)
Street Food in India, http://www.bharatonline.com/travel-tips/street-food.html( (Accessed 2
February,2015)
2. Which one sold more? Rate the above items? 1st, 2nd, 3rd, basis
a) 5 – 10 K b) 10 – 15 K c) 15 – 20 K
d) 20 – 25 K f) 25K >
4. Daily turnover?
a) <1000 b) 1 K – 2 K c) 2 K – 3 K
d) 3 K – 4 K
e) 4K and above
5. What is week day’s turnover in each day? And what is week ends turnover?
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d) Vegetables e) Others
9. What are the precautionary measures do you take for your inventories to keep in
taste?
a) ------------------------
b) -----------------------------
c) ________________________
d) ________________________
e) __________________________
10. Whether do you buy the things or you only prepare which is required for pani puri
preparation?
If you buy please mention the name of the things and from where
_________________________________
How often do u buy items which is required for chat _______________
If u prepare please mention the name of the things____________________________--
a) < 25 b) 25 – 50 c) 50 – 75
d) 75 – 100 e) > 100
e) >20:1
24
16. What are the unique strategies used by the vendor to sell their items?
18. Vendor has only one shop or more than one, If so, where is the location & why?
If you have more than one shop, please mention the name of the streets______________ and
why that particular place is chosen___________________
19. Did they choose any other place before starting their business?
a) Yes b) No
If yes in which place you were having your shop ___________
Reasons for changing the shop __________________
20. Do they provide catering service, If so how frequently you get order & for what are
the items he gets usually?
a) Daily b) Weekly
c) Fortnight d) Monthly
25
Please mention the name of the items you get order usually for catering
________________________
e) >5000
a) Service___________
b) Service______________
c) Service ________________
d) Service______________
d) Service___________________
26
3) What is your average waiting time to get your ordered item ______________
27