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BIKANERVALA: A NEVER-ENDING QUEST TO DELIGHT CUSTOMERS

Professor Meeta Dasgupta wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other
identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.

Copyright © 2015, Management Development Institute Gurgaon and Richard Ivey School of Business Foundation Version: 2015-04-20

“We need to get Indian ethnic food in a prominent position on the global map.”1

On December 1, 2014, Deepta Gupta, the executive vice-president of Bikanervala, was going through the
quarterly progress of the restaurant outlets.The New Year was approaching and he was optimistic about
increased sales across various outlets. Bikanervala was experimenting with a different packaging for the
gajjaks2 to be sold in various outlets. But a thought was worrying him: Did the factory and various outlets
have sufficient workers to handle the increased load? One outlet of Bikanervala was equivalent to 10
outlets of McDonald’s. Bikanervala had 8,000 to 10,000 customers every day.

FOOD SERVICE INDUSTRY IN INDIA

A survey conducted by Technopak for the National Restaurant Association of India projected the food
service industry in India to grow at a compound annual growth rate (CAGR) of 11 per cent and reach a
volume of INR40,80.4 billion (USD 78 billion) by 2018. The unorganized market — dhabas, street stalls,
Halwais (sweet shops), roadside vendors, food carts, etc. — held 70 per cent of the market share, with the
balance of 30 per cent being with organized players (see Exhibit 1). The casual dining market was
projected to grow at a CAGR of 18 per cent and reach a size of INR90.35 billion by 2018. The fine-dining
market, surviving on the demand of affluent customers, was not far behind and growing at a rate of 15 per
cent. The quick service restaurants (QSR) sector was expected to triple to around INR167.85 billion in
2018 from INR55 billion in 2013. The food services industry was a major contributor to the gross
domestic product (GDP) of the Indian economy. The industry contributed approximately 2.3 per cent of
total GDP3 (see Exhibit 2). Among the chain markets, the various formats available were cafés, QSRs,
frozen dessert/ice cream, casual dining, fine dining and PBCL4 (see Exhibit 3), and it was expected that in
the future the share of the organized sector would grow (see Exhibit 4).

1
Gupta on the founder’s vision for Bikanervala.
2
An Indian sweet made of jaggery and nuts.
3
“India Food Services Report 2013,” Hospitality Biz India, July 5, 2013,
www.hospitalitybizindia.com/detailNews.aspx?aid=17030&sid=20, accessed December 3, 2014.
4
Pub, bar, club and lounge.

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Customers and food service operators were driving the change. Consumer preferences had become
dynamic and customers were willing to pay for quality. The decreasing average size of households and
rising disposable incomes had triggered the trend.5 Additionally, well-established companies in India that
provided sauces, dairy products, frozen foods, ready-to-eat food, ready-to-cook food, pickles, etc. of
international standards had aided the growth of the food services industry. An increasing number of chefs
believed in the “smart” selection and procurement of ingredients, each finished to different levels.
Prominent brands like McDonalds’s and Pizza Hut were also experimenting with growing their revenues
by focusing on side offerings such as bread, pasta, Italian tacos, dips and desserts.6 According to Rachit
Mathur, a principal at the Boston Consulting Group, “BCG sees India’s opportunity to double in the food
service industry over the next five years. Our structures are very much fundamentally placed. We have
income moving at the rate of 11 per cent per annum and the trend is likely to continue. Among the urban
generation, food service is moving dramatically.”7

However, getting the requisite licenses to operate in the food services industry was not an easy task.
Rising costs of various food items, fragmented patterns in the market, shortages of quality labour, and
high attrition rates were hindering the growth of the industry. Multiple taxes such as value-added tax,
excise, service tax, and various state taxes — adding from 17.5 to 25 per cent of the bill value — were
also burdening players in the industry.8

BIKANERVALA — DIVERSIFYING OVER THE YEARS

Bikanervala portrayed itself as a “traditional sweet shop cum family restaurant” that originated from
Bikaner, Rajasthan. It was founded in 1988 by Shyam Sundar Agarwal. Having been in the business of
making ethnic foods, sweets and namkeens9 for over 100 years, the company inherited a vast treasure of
traditional recipes. The brand “Bikano” was introduced in 1988 and to date had a product range of over
700 ready-to-eat Indian snacks, sweets, cookies, syrups and attractive gift packs. The company also had a
tie-up with Pepsi for manufacturing its snack products. Ramesh Agarwal, one of the directors of the
company, who also headed one of the family outlets in Gurgaon, said, “We were the first company to
market a domestic product as an international product.”

The company had, in 1954, opened its first outlet in Chandni Chowk, Delhi. By 2014, the number of
outlets had increased to 50 major stores and 60 small stores, spread over prominent Indian cities like
Delhi, the National Capital Region, Lucknow, Rajasthan and Hyderabad, to name a few. The company
prided itself on having opened 12 outlets overseas in Singapore, London, New Zealand, Dubai and Nepal.
Bikano/Bikanervala had become an international brand synonymous with Indian sweets, snacks and
gourmet delights.

The various outlets were owned by the company, by directors or by franchisees. The franchisees shared
revenue with the company at a certain percentage of the revenues earned by them. The company had, of
late, increased its emphasis on company-owned outlets so as to have better control over quality and
customer satisfaction. The different formats of the various outlets were institutional tuck shops, family

5
Shriparna Saha, “India’s food industry: Opportunities galore for restauranteurs,” India Hospitality Review, October 1, 2013,
www.indiahospitalityreview.com/features/india%E2%80%99s-food-service-industry-opportunities-galore-
restauranteurs/9758, accessed December 2, 2014.
6
Reetesh Shukla, “Food Services Trends to Look for in 2014,”
www.technopak.com/files/India’s%20Food%20Service%20Trends.pdf, accessed December 3, 2014.
7
Shriparna Saha, op. cit.
8
Hospitality Biz India, op. cit.
9
Salty snack items.

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restaurants and food courts. The institutional tuck shops were set up in colleges, schools, hospitals and
multinational companies.

The organizational structure of the company (see Exhibit 5) was compliant with the 5S framework (see
Exhibit 6). As Bikanervala was predominantly a family-based firm, important positions on the board were
held by extended family members.

COMPETITION

In-house surveys by MBA students, conducted during their summer internship with the company, helped
the company understand the market. A survey report comparing the company’s products with its closest
competitor, Haldiram’s, gave insights into where the company stood with respect to its packaged food and
the reach of its salespeople. The feedback from customers on the company’s Facebook page helped the
Customer Care Department take corrective action. Gupta added:

Anybody and everybody who serves good-quality food is our competitor. Our biggest driving
force is the customer, with competitors being the other. Our products are exclusive and are easily
sold by our brand name. We have captured a good market, and customers do have a positive
inclination for our products. We are at a win-win situation with Haldiram’s. We do believe in
healthy competition, which keeps us active and alert to new business/product development. We
have our own taste profile and uniqueness in products, which is well accepted in India and
worldwide.

Agarwal explained:

Our strategy is to provide the best-quality food at low cost. We take care of the health of our
customers. Both Haldiram’s and we keep track of each other’s offerings in the market. Then it is
a game of copy and enhancement. Others follow what we do. We also reap the benefits as
customers widely start accepting it.

Our sweets, however, face competition from chocolate makers like Cadbury who are promoting
their chocolates as an alternative to sweets. People’s trust in on sweets made from milk is
reducing because of the fear of milk used being contaminated.

BECOMING THE KING OF ETHNIC CUISINES

The key philosophy of Bikanervala for its products had always been to offer a price range that was
attractive, so that customers saw value for money in the offerings. Its business focus was to fulfill the
requirements of families and entertain them. Gupta said, “All our outlets, therefore, advertise laying
emphasis on the family component.”

Experimenting with Multiple Cuisines

As a family restaurant chain, the company believed that there was a need to serve what was cooked at
home. It realized that in India, food was an integral part of the culture and heritage. It took cuisines from
all parts of India and worked on retaining the original, authentic taste of different dishes. Gupta said,
“Although we retained the authentic style of cooking, we adapted the dishes according to society and

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local tastes.” The company also started the practice of offering dishes that fit the flavour of different
seasons. Gupta continued:

We try to take care of all parts of society. With the onset of winters we offer makki ki roti and
saag. Similarly, we have specific dishes to mark the occasions of Lohri, Durga Puja, Id . . . It is
because of the elaborate menu that we offer, we face no competition from the upcoming quick
service restaurants.

Veena Kumari, head of the Bikanervala academy, commented, “The latest marketing campaign from our
end has been the ‘Sampooran’ South Indian Thali. Realizing that customers prefer sweets after a meal,
kesar halwa has been introduced for the first time.”

“Bikanervala surely comes to the rescue when everyone in the family wants different dishes. Food is not
only hygienic, but also pocket-friendly. It serves all major cuisines ranging from street food and North
Indian to Chinese and South Indian. And the best part is they use minimal oil and spices, so the food is
tasty and somewhat healthy,” feedback from a customer stated.

Agarwal recalled:

We were the first to introduce Navratra khana.10 We noticed that because of fasting there were
fewer customers visiting our outlets. We first introduced two items — French fries and fruit
chaat. We got a very good response from the customers. Next year, we introduced puri with aloo.
Today we have 50 items that are offered as part of our Navratra food. Our most dull season has
become the peak season for us. We were also the first to introduce modaks,11 which are very
popular in western India, during Ganesh Chaturthi.

Inputs from customers had led to customization in cities like Gurgaon. Gupta said, “Customers working
in the business process outsourcing/IT sector found eating lacchha parantha12 heavy for a meal. We
started with ‘ghar-ki-thali,’ priced reasonably, having roti, dal, sabji and raita13 to suit their needs. Some
customers also wanted fast food. So, we introduced pizzas, pasta and continental. Recipes were
accordingly changed, menus developed so that delivery could be made in two minutes. Demand from
customers led to the introduction of diabetic sweets.” Feedback given by a customer in Gurgaon said:

“The Choose Your Pasta” concept introduced by Bikanervala that allows you to choose every
ingredient of the pasta including the sauce, type of pasta, veggies, etc. is an all-time favorite of
my daughter. My son settles for nothing but a plate of chole-bhatoore and raj-kachori. (See
Exhibit 7.)

Family Restaurants

The restaurants were spacious with a total floor area extending to 800 square yards, spanning three floors.
The layout, snacks and sweet offerings of the outlets were dependent on the available space and customer
demand in the neighbourhood. Cash counters were usually installed at the entrance, and also served as
information booths. “We have reserved the ground floor for breakfast, light snacks, tea and coffee. Lunch
and dinner are usually served on the first floor,” Agarwal explained. Not only were there supervisors on
10
Nine days in the Hindu calendar where fasting is practiced. It falls twice in a year, during April and October.
11
Dome-shaped sweets made of jaggery, dry fruits and nuts.
12
Indian bread using oil for preparation.
13
Bread, pulses, vegetables, curds, etc.

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each floor to guide customers, but displays and pamphlets gave adequate information. Agarwal added,
“Everything is visible. Printed menus have been put up on display boards. In the future we are also
planning to install live media, in all outlets, giving customers information about our outlets.” (see Exhibit
8)

The ambience created in the restaurants through their décor and infrastructure design was appreciated by
all. Agarwal said:

Furniture in our outlet is comfortable and good-looking. As we are not a fine-dining restaurant,
we have not used very fancy furniture or dim lighting. The exterior walls are made of glass, thus
allowing a lot of natural light inside. The internal displays used in our outlet exhibit a lively
atmosphere. We also keep on changing the posters with changes in seasons and festivals. Halwa,
gajaks, etc. form the theme during winters, gujias during Holi14 and ice creams and cold shakes
during the summer season.

The outlets used no artificial odor in the spaces where food was kept and served. Agarwal was of the
opinion that artificial odor was bad for food: “Food tends to absorb the odor. We have a very robust
exhaust system in all our outlets.” Light instrumental music played in the background. On Independence
Day, patriotic songs greeted customers.

One section of the restaurants was usually reserved for holding birthday parties. In many family
restaurants, a kids’ section with toy cars and remote-controlled games had been introduced, giving
customers a sense of the restaurant being tailored to families. Free-of-cost kids’ trampoline, balloons,
camel rides and horse carriage rides had been introduced to keep children happy. Agarwal said, “We hold
painting competitions on Christmas, and gifts are distributed to children by one of our employees dressed
as Santa Claus. If the kid is happy, parents are also happy.” One customer added, “Our kids really liked
the small ferris wheel with various dishes mentioned on it, placed at the cash counter. On rotating the
ferris wheel, the kids could have for free the dish at which the arrow pointed when the wheel stopped.”

Lifts had been installed and various outlets were in the process of putting up ramps for the convenience of
handicapped customers.

Service

Bikanervala, from the beginning, had gained an identity as a self-service restaurant. The staff was,
however, very helpful and sensitive to the needs of customers, especially during rush times such as the
Navratras, Saturday and Sunday evenings and national holidays. After making payment, customers would
feel the discomfort of waiting at counters for their dishes. Different stores introduced an electronic display
system. The customers were given tokens and were asked to sit down and keep track of the token
numbers displayed. The display unit would, through a loud beep, announce the progress of the token
numbers. The loud beep irritated customers standing at the counter, so the stores replaced the display
units with buzzers given to customers waiting for their orders. “We first experimented with the buzzer
system in Dubai, and then replicated it in Gurgaon,” Gupta said. “The system works through radio
frequency. All orders are fed into a hub. When a particular order is ready the system, through radio
frequency, sends a signal to the specific buzzer telling the customer to come to the counter.”

14
Festival of colours.

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The company was planning to develop mobile applications wherein customers could not only place orders
through mobile, but could also make payments through credit cards on mobile. Gupta continued, “We
plan to leverage iCloud systems for the purpose, wherein all our orders will be menu-driven. This would
help in reducing the customer waiting time. By the time the customer would reach the outlet, the order
would be ready.”

Service-counter employees made it a point to inform customers when they were buying food items that
were perishable and which they planned to consume later. “Although the customer would have already
made payment, we would refund it to the customer or give him an alternative food item,” Agarwal said.
“There is no point in having a dissatisfied customer.”

RUNNING THE BUSINESS

Enforcing Standards and Streamlining Operations

Gupta mused, “Way back, we had only Nirula’s and McDonald’s. The only gap between Western and
Indian cuisines is the presentation and hygiene. Customers have started comparing Indian eating joints to
international standards. We have to improve to match international standards with respect to ambience
and hygiene.” Agarwal explained, “We gave importance to hygiene and were the first to introduce the
concept of serving golgappas and its water15 in packets. The customers have to fill and eat them on their
own. We use filtered water.”

The company had a dedicated IT Department. A customized enterprise resource planning system
developed by Microsoft in 2006 streamlined various activities in the company and various outlets, like
billing, the placing of orders, inventory management and customer feedback. Gupta said, “When a
purchase order is raised an SMS is automatically sent to the vendor. Likewise, when payment is made an
SMS is sent to the vendor. A bill of materials is maintained for all dishes. Order-taking is linked to
billing, which is linked to production and further linked to inventory. When entries are posted at the end
of the day the inventory is updated. Cash reconciliation is done at the end of the day.” Sunil Tripathi,
from operations, added, “There are centralized purchasing, logistics, accounts, audit, marketing, HR and
cost control departments. Items and their quantities sent to various outlets are fed into the centralized
system and updated by order-taking and billing at each outlet.” Check on saleswas also maintained by
counting the number of coupons generated. Both the number and size of bills was tracked. Every
franchisee had adopted the same software so as to maintain standard operations. “However,” Tripathi
said, “The price of food items in different outlets, depending on the locality in which the outlet is, the rent
and the number of workers working in the outlet, might vary.”

Standard operating procedures (SOPs) to be followed for personal hygiene and grooming, the personal
service of counter staff, the taking of orders at the cash counter, the handling of home-delivery orders, the
handling of customer complaints, assessing customer satisfaction, etc. were all documented and circulated
across all outlets. Veena Kumari added, “Generally, employees are not allowed to go against the SOPs.
But if the situation demands, the employee before reverting to the customers should talk to the operations
manager or the owner of the outlet. The final decision is theirs.”

In 2014, the company was announced as the second winner of the Confederation of Indian Industry 5S
Excellence Award. The 5S principles conveyed that cleanliness and efficiency parameters had to be
followed in whatever one was doing. The complete details of 5S appear in Exhibit 6.
15
Water was prepared by adding spices such as coriander, chilly, tamarind, etc. Each golgappa was filled with gram, potato,
tamarind sauce and water. The normal practice was for golgappas to be filled and served by a person behind a counter.

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Managing Performance

The company had consciously not hired expert chefs from elite hotels. Gupta explained, “Our strength is
our traditional workforce. We have food makers from different parts of India. We are, therefore, able to
maintain the original taste of various dishes.” Traditional cooks in the factory were complemented by
highly skilled employees from reputable institutes and companies. A franchisee owner of a New Zealand
outlet added, “People from Lawrence Road are trained and are most experienced. I have taken them for
my New Zealand outlets. My job is to do quality control and follow up on customer complaints every
day. Kiwis and Europeans visit the outlets to get a feel, although some are very regular.” Gupta
commented, “In 1997, I was the only technical person in the company. Today we have more than 500
technical persons. Employees from reputed companies like Hindustan Unilever, Nestle, to name a few,
have joined us.”

The company had its own fleet of trucks. Every day, food cooked in the factory was frozen and
transported to the various company-owned outlets. Based on the previous day’s sales, each outlet gave an
estimate of the quantity of food items required for the next day. Tripathi said, “Dishes like shahi paneer,
dal makhani, sambar, dahi, etc. are cooked and frozen in the centralized kitchens/factory. They are then
thawed in the various outlets. Final offerings like sandwiches, roti, dosa, bhatura, etc. are made in the
outlets. Perishable items like vegetables for salad, cheese, milk, etc. are bought every day in the outlets.
Every outlet has a cold storage and deep freezers for storing food. But food items having a one-day shelf
life are discarded at the end of the day.” Agarwal added, “We have a tie-up with Mother Dairy, a
government agency, for vegetables and milk. Every day, delivery is made to our various outlets. Ice
cream, too, is procured from either Amul or Mother Diary on a weekly basis. Initially, we had started
manufacturing it. But it turned out to be very costly.”

The company had a dedicated customer service department. Gupta said, “The mantra of success at
Bikanervala is to look at all products and services from the customers’ point of view. We have achieved a
benchmark in fulfilling the expectations of consumers. An independent customer care cell exists in our
company. An exclusive helpline has also been introduced to support the customers. They can contact us
via email too. Customer feedback forms are also kept in all the outlets. Our counselor gets in touch with
the customers within 24 hours of registration of a complaint, and we close all complaints within seven
days.” Agarwal continued, “We also have a very subtle system of assessing the satisfaction level of
customers. The supervisor in each outlet not only asks customers for their feedback, but also keeps a note
of whether customers leave food on their plate. Customers discuss food while eating. By observing and
listening to them, we are able to get an idea of their satisfaction level.”

All customer feedback was sent to the corporate office and reports were generated on a monthly basis.
The customer feedback got reflected in the monthly performance reviews of employees. The variable pay
component of each employee’s salary was linked to quality and internal audit scores. Veena Kumari
explained, “If performance is more than 100 per cent, variable pay is 110 per cent of basic pay; if
performance is 90 per cent, variable pay is 90 per cent of basic pay; if performance is less than 70 per
cent, variable pay is 0.” Gupta added, “In this industry, we were the first to introduce such a
comprehensive performance management system. Key responsibility areas are specified for each
employee from top management to apprentices. Three parameters of cost, delivery and quality decide the
rating criteria.”

The training of employees was a continuous process. The company had a separate team of trainers and a
comprehensive training manual. Induction programs designed for different levels of employees were held,
with a 90-day course designed even for the labourers at various outlets. “Seventy per cent of our

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employee base is permanent and thirty per cent is contractual,” Gupta specified. “However, during
festivals when the workload increases, more than fifty per cent of the labour comes from outside.” Each
small group at the factory level had a team leader who was responsible for not only managing his team
but also for collecting ideas from members and discussing them in management forums. Worthy ideas
were implemented across the company. Agarwal said, “We try to create multi-skilled persons, so that
during rush hours they can help out in alternative tasks. There is competition between sweets and the
restaurant. It is usually noticed that when there is a rush in the sweets section, there is not too much rush
in the restaurants and vice versa.”

All outlets had a dress code for employees. Gupta said, “Having a dress code for employees at the outlet
is very important. Otherwise they cannot maintain clothes as per our standard. Every employee would end
up wearing different-coloured dress. It would not leave a good impression on the customers.”

FUTURE OUTLOOK

The popularity of the outlets was increasing, with a growth rate of 30 to 40 per cent on a year-on-year
basis (see Exhibit 9). According to Gupta, the company boasted the highest number of sweets in the
world, but the biggest challenge for the firm was in getting trained and qualified workers. As he put it,
“Everyone wants to become an engineer. No one wants to become a Halwai.”16 The franchise owner from
New Zealand agreed, saying that people took more pride in being referred to as chefs rather than “sweet-
makers.” He had sent an application to the New Zealand authorities requesting that institutes be set up
that provided training in food and culinary skills. Agarwal added, “There is no written study material. No
formal classes are held. There are institutes that train students to become chefs in hotels, but no institutes
to train them to become Halwais. I fear this art will die down.”

Veena Kumari said, “The attrition rate in the industry is high. As a traditional foods industry, people have
been associated with it for the past 50 years. They do not want to change their orthodox style. Also, unity
amongst the karigars17 is very high. They leave in groups. It is essential to interact with them personally
or arrange for their meeting with the owner.” The company had set up its own academy that maintained a
complete database of employees. Various employees had been with the company for more than 20 years.
They were able to convince labourers from their villages, through word of mouth, to join the factory
during festivals when production ran on a 24/7 basis. Veena Kumari added, “There are villages in India
where the whole village is involved in making sweets and namkeens.”

The company had developed its own curriculum and had a robust training structure that had been
recognized by the Ministry of Labour and Employment. Certificates, certifying participants to be trained
halwais, were being given by the government of India. The company had even started the practice of
training uneducated people who did not have the money to get educated. It bore the cost of their training
and lodging. It provided them with a means of earning their living. Certified people were also promoted
to work abroad in the company’s established outlets. The firm also promoted females from lower sections
of society to undergo training, and then offered them jobs. Was it a sustainable model for the company?
Bikanervala had been able to manage up until now. But with an increasing number of customers flocking
to its outlets, were there other alternatives to meet the challenge?

16
A sweets and snacks maker in India.
17
Hindi word for “labourers.”

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EXHIBIT 1: INDIA’S FOOD SERVICES MARKET SIZE (IN BILLIONS)

2013 2018
Chain Market INR 127.85 (USD 2.5) INR 332.5 (USD 6.5)
Licensed Standalone Market INR 552.1 (USD 10.5) INR 1125.2 (USD 21.5)
Standalone Market (in Hotels) INR 70 (USD 1.3) INR 116 (USD 2)
Unorganized Market INR 1726.85 (USD 33.7) INR 2506.70 (USD 48)
Total Market INR 2476.80 (USD 48) INR 4080.4 (USD 78)

Source: “India Food Services Report 2013,” Hospitality Biz India, July 5, 2013,
www.hospitalitybizindia.com/detailNews.aspx?aid=17030&sid=20, accessed December 3, 2014.

EXHIBIT 2: INDUSTRY-WISE MARKET SIZE

Industry Market Size (USD bn) in 2013


Retail 490
Insurance 68
Food Services 48
Telecom 39
TV 8
Hotels 6.5
Films 2

Source: “India Food Services Report 2013,” Hospitality Biz India, July 5, 2013,
www.hospitalitybizindia.com/detailNews.aspx?aid=17030&sid=20, accessed December 3, 2014.

EXHIBIT 3: MARKET SIZE OF CHAIN FORMATS

Format Chain Market Size, 2013 (INR Share in Total Chain


bn/USD mn) Market (2013) (%)
Café 15.2/290 12
QSR 5,50055/1,060 43
Frozen Dessert/Ice Cream 7757.75/150 6
Casual Dining 3,95039.50/760 31
Fine Dining 5005/95 4
PBCL 5405.4/105 4

Source: “India Food Services Report 2013,” Hospitality Biz India, July 5, 2013,
www.hospitalitybizindia.com/detailNews.aspx?aid=17030&sid=20, accessed December 3, 2014.

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EXHIBIT 4: CURRENT SIZE AND GROWTH PROJECTION FOR FOOD SERVICES CHAIN FORMAT

Format Main Players 2013 2018


Café Coffee Day, Barista INR15.2 bn INR 37.75 bn
Café
Lavazza, Starbucks, etc. (USD 290 mn) (USD 725 mn)
McDonald’s, Domino’s Pizza, INR 55 bn INR 167.85 bn
QSR
KFC, Subway, etc. (USD 1.06 bn) (USD 3.23 bn)
Frozen Baskin Robbins, Natural, INR 7.75 bn INR 15.6 bn
Dessert/Ice Nirula’s, Vadilal, Giani’s, etc. (USD 150 mn) (USD 300 mn)
Cream
Moti Mahal, Indigo Deli, Pizza INR 39.5 bn INR 90.35 bn
Casual Dining Hut, Papa John’s, Flavors of (USD 760 mn) (USD 1.74 bn)
Italy, Rajdhani, etc.
Punjab Grill, Mainland China, INR 5 bn INR 10.1 bn
Fine Dining Smoke House Grill, Olive Bar (USD 95 mn) (USD 195 mn)
& Kitchen, Taman Gang, etc.

Source: “India Food Services Report 2013,” Hospitality Biz India, July 5, 2013,
www.hospitalitybizindia.com/detailNews.aspx?aid=17030&sid=20, accessed December 3, 2014.

EXHIBIT 5: ORGANIZATIONAL STRUCTURE

BOD - Chairman

Managing Director

Chief Executive Director


Officer (CEO)

Executive Vice- Vice Assistant Vice- General Manager Assistant General


President (EVP) President President (AVP) (GM) Manager (AGM)
(VP)

Source: Company documents.

This document is authorized for use only in Prof. Biranchi Narayan Swar's MARKETING OF SERVICES 6.24.2020 at Management Development Institute - Murshidabad from Jun 2020 to Dec
2020.
Page 11 9B15M044

EXHIBIT 6: THE 5S METHODOLOGY

There are five primary 5S phases. They can be translated from the Japanese as “sort,” “straighten,”
“shine,” “standardize” and “sustain.” Other translations are possible.

A. Seiri (Sort): This phase is identified with various steps taken to evaluate necessary items with regard
to cost or other factors, remove and dispose unnecessary items and prevent the accumulation of
unnecessary items.

B. Seiton (Straighten or “set in order”): This phase is identified with arranging or streamlining all
necessary items so that they can be easily selected for use. It not only prevents loss and waste of
time but also ensures a first-come-first-served basis.

C. Seiso (Shine or “sanitize”): This phase is identified with cleaning the workplace completely, keeping it
safe and easy to work in and preventing the deterioration of machinery and equipment.

D. Seiketsu (Standardize): This phase is identified with maintaining high standards of housekeeping and
workplace organization at all times or maintaining everything in order according to its standard.

E. Shitsuke (Sustain): This phase is identified with performing regular audits and keeping in working
order.

Source: “What is 5S; Seiri, Seiton, Seiso, Seiketsu, Shitsuke,” Lean Manufacturing Tools,
http://leanmanufacturingtools.org/192/what-is-5s-seiri-seiton-seiso-seiketsu-shitsuke, accessed March 24, 2015.

EXHIBIT 7: PICTURES OF SELECT DISHES

Source: Company website.

This document is authorized for use only in Prof. Biranchi Narayan Swar's MARKETING OF SERVICES 6.24.2020 at Management Development Institute - Murshidabad from Jun 2020 to Dec
2020.
Page 12 9B15M044

EXHIBIT 8: BIKANERVALA FAMILY RESTAURANT

Source: “Bikanervala, Sohna Road,” So Deli, www.sodelhi.com/indian-sweets/3665-bikanervala-restaurant-sohna-road-


gurgaon, accessed April 7, 2015; “Bikanervala,” zootout, www.zootout.com/delhi/bikanervala-mathura-road-398/photos,
accessed April 7, 2015.

EXHIBIT 9: COUPONS GENERATED / SALES IN OUTLETS

Location Coupon, Sales, Dec. Budget, Coupon, Sales, Dec. Coupon


Based Outlet Dec. to to Mar. 2013 Dec. to Mar. Dec. to to Mar. 2014 Growth
Name Mar. 2013 (INR) 2014 (INR) Mar. (INR) Rate from
(No.s) 2014 Last Year %
(No.s)
1 CP Coupon 49,723 14,376,884 19,590,376 51,331 16,672,411 3
2 FRD Coupon 53,094 16,492,810 21,821,320 53,503 19,694,328 1
3 ITL Coupon 63,864 30,167,260 36,048,037 73,892 29,979,416 16
4 PVR Coupon 71,885 24,242,300 29,526,702 78,139 29,038,434 9
5 RRM Coupon 94,863 28,887,207 38,633,221 100,723 35,716,407 6
Total 333,429 114,166,460 145,619,656 357,588 131,100,996 7

Source: Company documents.

This document is authorized for use only in Prof. Biranchi Narayan Swar's MARKETING OF SERVICES 6.24.2020 at Management Development Institute - Murshidabad from Jun 2020 to Dec
2020.

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