Sanjeev An Am

2010
Submitted by:
Anil M S PGP/14/006
Ankit Arora PGP/14/008
Apoorva Bhagat PGP/14/013
Deepika Negi PGP/14/023
Kartik Desikan PGP/14/034
Nilesh Kadam PGP/14/040
12/8/2010
Cholayil Sanjeevanam: Operations
Management Project Report

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Cholayil Sanjeevanam: Operations Management Project Report
2010

Acknowledgement

Our academic dissertation has called for intellectual nourishment, professional help and
encouragement from all quarters. Our team would like to express our heartfelt gratitude to the
following people for their valuable support:

Professor Dr. Sanjay Jharkharia, Indian Institute of Management Kozhikode for
providing us the opportunity to carry out this project and help us understand and study
various concepts in operations management through this project

Mr. V. Murugan, Senior Operations Manager, Cholayil Sanjeevanam for his
invaluable inputs that helped us understand the various processes and operations of
Cholayil Sanjeevanam , a one of its kind centre for holistic health services. We would
also like to thank him for permitting us to use the various details of Cholayil
Sanjeevanam needed in completion of this dissertation. Further, we sincerely
appreciate the support of the employees of Sanjeevanam Health Restaurant,
Kozhikode.

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Executive Summary

Cholayil Care is an illustrious and esteemed Ayurvedic group from Kerala, which has a deep
history in providing holistic health care. Cholayil Sanjeevanam is yet another feather in the
cap of Cholayil Care group. Cholayil Sanjeevanam represents total health by integrating the
principles of Ayurveda, Naturopathy and Yoga. It comprises of Treatment centres, Hair and
Face care units, Vegetarian health restaurants and Health products counters.

Cholayil Care has 11 treatment centres and 5 vegetarian health restaurants spanning
Karnataka, Kerala, Maharashtra, Gujarat and Sharjah, UAE. The Cholayil Group opened the
Sanjeevanam Ayurveda Naturopathy and Yoga Centre and a natural health restaurant in
Kozhikode in September, 2008. We as a group wanted to choose a service based setup in a
niche sector like health food and Ayurvedic treatment. Hence, we chose Cholayil
Sanjeevanam, Kozhikode. It is interesting to study as to how the company has tried to create
a niche for itself in the health food and Ayurveda treatment. Sanjeevanam has tried to
differentiate itself from regular restaurants and spas on basis of traditional Ayurvedic recipes
and treatment methods. In this report, we aim to study the operation management at Cholayil
Sanjeevanam, Kozhikode in terms of process flow, layout, workforce scheduling, quality
control, inventory control, billing systems, standard operating procedures and service
blueprint. The concluding section includes recommendations to improve the operational
efficiency and overall business of Cholayil Sanjeevanam, Kozhikode.

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Scope of the Project

In this project, we have analysed the operation management at Cholayil Sanjeevanam,
Kozhikode in terms of process flow, layout, workforce scheduling, quality control, inventory
control, billing systems, standard operating procedures and service blueprint. Certain
operational details of the centre could not be included in this project to honour the privacy
and trade secrets of the business. We have restricted our analysis only to the Operations of
the Kozhikode centre of Cholayil Sanjeevanam with focus on the restaurant operations alone.

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Table of Contents

Acknowledgement ..................................................................................................................... 1
Executive Summary ................................................................................................................... 2
Scope of the Project ................................................................................................................... 3
1. Indian Food industry: Overview ......................................................................................... 5
1.1 Health Food ..................................................................................................................... 5
1.2 Ayurveda and Herbal industry ...................................................................................... 5
1.3 Restaurant Industry........................................................................................................ 6
2. About the Company: Cholayil Private Limited .................................................................. 8
2.1 Group Divisions ............................................................................................................... 8
2.2 Location of centres ........................................................................................................ 12
3. About Cholayil Sanjeevanam Kozhikode Centre ........................................................... 13
3. 1 Location ........................................................................................................................ 13
3.2 Vegetarian Health Restaurant ..................................................................................... 14
3.3 Concept of the Restaurant............................................................................................ 15
3.4 Implementation of the Concept ................................................................................... 16
4. A Glimpse into the Operations of the Restaurant .............................................................. 17
4.1 Workforce at the Restaurant ....................................................................................... 17
4.2 Organization structure at Sanjeevanam ..................................................................... 17
4.3 Quality control .............................................................................................................. 18
4.4 Inventory Holding ......................................................................................................... 19
4.5 Planning System ............................................................................................................ 19
4.6 Feedback and Services .................................................................................................. 20
4.7 Layout of Restaurant .................................................................................................... 20
5. Service Process, Strategy and Design ................................................................................ 23
5.1 Elements in the design of service org .......................................................................... 23
5.2 Service Process Matrix ................................................................................................. 24
5.3 Service System design Matrix ...................................................................................... 24
5.4 Service Process Flow ..................................................................................................... 25
5.5 Service blueprint ........................................................................................................... 27
5.6 Suggested Service blueprint ......................................................................................... 28
5.7 Stakeholders .................................................................................................................. 28
6. Recommendations ................................................................................................................ 30
6.1 Challenges ...................................................................................................................... 30
6.2 Recommendations ......................................................................................................... 32

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1. Indian Food industry: Overview

The Indian food market is estimated at over US$ 182 billion, and accounts for about two
thirds of the total Indian retail market. Further, according to consultancy firm McKinsey &
Co, the retail food sector in India is likely to grow from around US$ 70 billion in 2008 to
US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which
would grow to US$ 400 billion from US$ 175 billion by 2025. According to the India Food
and Drink Report Q3 2008 by research analysis firm Research and Markets, by 2012, Indias
processed food output is likely to grow by 44.2 per cent to touch US$ 90.1 billion, while
packaged food sales will increase by 67.5 per cent to reach US$ 21.7 billion. On a per capita
basis, per capita packaged food spending is expected to grow by 56.5 per cent to US$ 18.06
by 2012.
1.1 Health Food

Health food and supplements is another rapidly rising segment gaining popularity amongst
the health conscious. Economic growth, global cuisine and the need for convenience are
changing the dietary choices. Also, health consciousness is popularizing sugar-free and low
calorie diet foods as well as foods containing more natural ingredients. Value-added foods are
in demand and Indian consumers are discovering the growing number of packed and
processed foods available to them. Consumers are placing increasing emphasis on the
provision of safe, nutritious, environmentally sustainable food. The main challenge is to
make our daily food act as medicines as well and provide the right nourishment to the body
that enables one fight diseases at various stages of one's age process.
Recognising the growth potential of the branded health food sector in India, fast moving
consumer goods (FMCG) majors are foraying into this sector in a big way. As Hindustan
Lever Ltd (HUL) is test marketing its health food brand, Kissan Amaze, in three southern
states in India, Godrej Hershey Foods & Beverages Ltd (GHFBL), a joint venture between
Godrej Beverages & Foods Ltd and Hershey Company, is planning to introduce select brands
from its international portfolio in the domestic market.

1.2 Ayurveda and Herbal industry

Ayurveda, one of the ancient traditional medicines of India, believes that the body is
governed by three fundamental principles - Vata, Pita and Kapha. An imbalance of these
causes illness. Ayurvedic treatment helps restore this balance without side effects. Ayurveda
or Ayurvedic medicine is a system of traditional medicine native to the Indian subcontinent
and practiced in other parts of the world as a form of alternative medicine. In Sanskrit, the
word Ayurveda consists of the words ayus meaning longevity, and veda meaning
science. Evolving throughout its history, Ayurveda remains an influential system of

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medicine in South Asia. The earliest literature on Indian medical practice appeared during the
Vedic period in India. The Susruta Samhita and the Charaka Samhita were influential works
on traditional medicine during this era. Over the following centuries, Ayurvedic practitioners
developed a number of medicinal preparations and surgical procedures for the treatment of
various ailments and diseases. In Western medicine, Ayurveda is classified as a system of
complementary and alternative medicine (CAM) that is used to complement, rather than
replace, the treatment regimen and relationship that exists between a patient and their existing
physician.
According to Mr Sanjay Mariwala, Chairman, Kerala State Council, CII, the Indian herbal
market is registering extremely significant growth numbers. It has the potential to reach
Rs.14,500 crore by 2012 and exports may touch Rs.9,000 crore. Globally, the wellness
industry is estimated at over $250 billion while the traditional medicine is a $1-trillion
economy. Currently, the Indian herbal market size is estimated at Rs.7,000 crore. Over
Rs.3,600 crore worth herbal raw materials and medicines are exported. Ayurveda has huge
scope for further development as India's share in the global trade of medicinal plants is just
about 2.5 per cent compared with China's 13 per cent. For the next few years, the industry's
annual requirement of trained therapists would exceed 20,000 personnel. There are about
75,000 standard spas world over that provide direct employment to about 1.5 million people,
according to CII sources. In India, there are over 2300 spas that have created direct and
indirect employment for about 400,000 people. In the next four years, 700 new spas, both
home-grown and international brands, will open in India to meet the growing demand. India
alone needs 20,000 trained therapists while the mushrooming Ayurvedic spas in the US,
Germany, Russia, Singapore and Malaysia and West Asian countries would demand trained
hands to the tune of several lakhs. Hotel spa is another growing category where spas can
contribute up to 15 per cent of a hotel's revenue. At present, India has around 20-25 major spa
centres, most of them spread in the southern states - Kerala, Karnataka and Tamil Nadu.

1.3 Restaurant Industry

The organised restaurant market in India may grow nearly four-fold to around Rs.28,000
crore by 2015, as several foreign players are looking to enter India. According to consulting
firm Technopak and the National Restaurant Association of India (NRAI), the organised
restaurant sector currently enjoys 16% market share in the estimated Rs.43,000-crore
restaurant industry. This is likely to increase to 45% of the total pie by 2015. Given the
faster growth of the organised segment, its share of the pie will increase from 16% currently
to 45%, or from Rs7000-8500 to Rs.28,000 crore (by 2015), NRAI said in its report White
Paper on the Indian Restaurant Industry 2010. According to the report, the total restaurant
industry (inclusive of both the organised and the unorganised segment) is expected to grow at
over 5% in the next three years and is likely to touch Rs.62,500 crore by 2015. The increasing
trend of eating out coupled with the increasing share of young population has driven the
market in the country.

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Restaurants in Kozhikode

There are about 330+ restaurants in Kozhikode which includes the Five Star Deluxe Taj
Residency. The Kerala Tourism Development Corporation (KTDC) is a commercial agency,
which actively participates in building up basic infrastructure needed for the development of
tourism in the State such as hoteliering, provision of transport facilities and publicity. They
operate star hotels, budget hotels, Araam hotels, Yatri Nivasses, Restaurants and Beer
Parlors, Central Reservation Systems and Conducted Tours. The number of beds available for
the year 2005-06 was around 416490. Around 312284 domestic tourists and 34468 foreign
tourists occupied these restaurants/ hotels during 2005-06.

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2. About the Company: Cholayil Private Limited

Cholayil Care is an illustrious and esteemed ayurvedic group from Kerala, which has a deep
history in providing holistic health care. Cholayil Care manufactures the largest selling
branded Ayurvedic soap Medimix and Cuticura brand of talcum powder. Dr. V.P. Sidhan is
the founding father of the Medimix, which is manufactured using a wholly indigenously
developed process with manual equipments. Cholayil was founded in 1969, with a global
vision that is firmly rooted in Indian values - 'to touch lives with a range of quality products
that enhance the quality of life'. The prime objective of Cholayil Care group is to provide its
customers with high quality products without altering their traditional value thereby
enhancing quality of human life. The group has interests in toiletries, personal and health care
verticals. Cholayil Care products are presently manufactured at various locations in Tamil
Nadu, Karnataka and Pondicherry. It also exports its products to the UAE, Saudi Arabia,
Oman, Bahrain, Kuwait, Qatar, Yemen, Malaysia, Singapore, Japan, Taiwan, Nepal,
Maldives, Mauritius, Egypt, Kenya, the UK, France, Germany, Spain, Sweden, Lithuania, the
US, Australia, Russia, the Czech Republic, Bangladesh, South Africa, Romania, Cambodia
and Seychelles.

2.1 Group Divisions

Cholayil Products and Services
Cholayil Ayurvedic Health and Research Academy
Cholayil Care Herbal Garden
Cholayil Sanjeevanam Academy of Ayurveda

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Cholayil Products and Services

Cholayil Products and Services is promoted by Dr. A.V. Anoop, who is also a director of
Cholayil Private Limited. Dr. Anoop is a well-known personality in the field of Ayurveda
with over 25 years of experience in Soaps, Pharmaceuticals, Cosmetics and Food Industry.
His tremendous passion for business expansion led to formation of Cholayil Products &
Services in March 2007 with the idea to deal in FMCG and other health products. Cholayil
Products & Services (CP&S), the marketing wing of Cholayil for south has a dedicated
division for Institutional sales of its branded products. Medimix Ayurvedic bath soap,
Medimix Sandal Soap and Medimix Transparent (glycerine) are the company's flagship
brand. Sanjeevanam Cough Syrup is also a part of the product portfolio. These products are
marketed to Hotels / Hospitals / Industries at special subsidized prices, the motivation for
which is the tremendous visibility garnered and products trials ensured. The institution sales
department of CP&S caters to more than 4000 hotels across the country with doorstep
deliveries.

Cholayil Sanjeevanam

Cholayil Sanjeevanam is yet another feather in the cap of Cholayil Care group. Cholayil
Sanjeevanam represents total health by integrating the principles of Ayurveda, Naturopathy
and Yoga. Cholayil Sanjeevanam is ISO 9001:2008 certified and commenced operations in
July 2004 at Mogappair, Chennai. Sanjeevanam seamlessly blends conventional and modern
Ayurvedic medicinal values based on the above inspirational principle to provide a healthy
body, mind and soul to mankind.
Cholayil Sanjeevanam is a one of its kind centre for holistic health services that rejuvenates
the body physically, mentally and spiritually. It is a tribute to natural living and aims to
provide guidance regarding food and lifestyle, blending traditional wisdom with modern
conveniences, so that healthy people can stay healthy and those with health challenges can
improve their health. The spacious and aesthetically designed centre provides holistic
treatment based on the tenets of Ayurveda, Naturopathy and Yoga to provide "Healthy &
Happy life" and aspires to be a unique integrated solution centre for all health problems.

Mission and Values:
"Cholayil Sanjeevanam will endeavour to touch everyone's life across the globe by
leveraging on our strong roots in Indian culture and by continuously developing our
knowledge and expertise in the herbal/natural products domain."
Holistic health services
Strongly rooted in Indian culture of Ayurveda
Strong emphasis on further research in the natural products domain
International standards of quality

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Cholayil Sanjeevanam comprises of:

a) Treatment centres:
These centres offer therapies under the Indian Medical System based on the concepts of
Ayurveda, Naturopathy and Yoga. Reputed and experienced Medical Officers and
experienced therapists offer lasting solutions for asthma, hypertension, obesity, sinusitis,
migraine, diabetes, skin disorders, arthritis and other chronic illness, besides providing
relief from stress through specialized rejuvenation therapies.
The Ayurveda Therapies include Pizhichil, Njavarakizhi, Shirodhara, Shirovasthi,
Udvarthanam, Abhyangam, Nasyam, Elakizhi, Kativasthi, Urovasthi, Netratharpanam
and Panchakarma.
Naturopathy is a multi-disciplinary approach that uses the healing power of natural
resources like food, herbs, earth, water and air to help the body heal itself. The
Naturopathy Treatments include Diet Therapy, Hip-Sitz-Spinal Spray Combo Bath,
Cold Circular Jet, Mud Therapy and Massage Therapy.
Yoga, a science not less than 5000 years old, is simultaneously self-diagnosis,
healing, prevention and maintenance. Yoga Therapy includes therapeutic yoga
treatments that target specific ailments such as Bronchial Asthma, Sinusitis, Diabetes,
Hypertension, Menstrual Disorders, Arthritis, Obesity, Insomnia, Back Pain,
Digestive disorders, Anxiety Neurosis etc. Sanjeevanam also has well-trained
instructors offering customized Yoga therapy to individuals based on their needs.
Special Yoga programs are available for General Health, Children, Women, and
Sportspersons etc.

b) Hair and Face care units:
Hair and Face care units Provides excellent treatment on hair loss and skin problems like
acne, dry skin and so on, which have a long lasting effect. Cholayil Sanjeevanam houses
a unit dedicated to hair and face care which offers natural treatment using medicated oils
and herbal medicines. Diet counselling is also provided to address nutritional
deficiencies that adversely affect the hair and skin.
Hair Care services include Treatment for hair loss, Treatment for hair growth,
Hair repair treatment, Elimination of excess sebum and itchiness and Prevention
of dandruff recurrence.
Face Care includes Facial (Saffron, Spirulina), Gold facial, Protein facial, Deep
cleansing treatment, Acne treatment, Tightening pore treatment, Pigmentation
treatment, Facelifting treatment and Anti-wrinkle treatment.

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c) Vegetarian health restaurants:
Cholayil Sanjeevanam health restaurant serves healthy and tasty foods cooked based on
the naturopathic principles. Cholayil Sanjeevanam is supported by a panel of eminent
dieticians and other professionals. The food is prepared only in earthen, bronze and copper
vessels by specially trained and experienced cooks, without using ingredients considered
detrimental to health.

d) Health products counters :
The Cholayil Sanjeevanam Health Products include a wide range of natural products like
pure honey, natural health mix, Chamba rice, Palm candy, Ginger coffee, Dhania coffee
etc. All these products are made with ingredients of the purest quality and do not contain
any preservatives or artificial ingredients while retaining the natural goodness of complex
carbohydrates and insoluble fibers.

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2.2 Location of centres

Cholayil Sanjeevanam has centres across India and an overseas centre at Sharjah. The centre
is expanding its business bringing the healing touch and benefits of Ayurveda and healthy
living to people across the globe.

State City/ District Type Address
Karnataka Chennai (H.O.) Centre & Restaurant Block 1, Ist Floor, AMM Towers,
Thiruvalluvar Road, Mugappair, Chennai
Adyar Ayurvedic Centre 15, Indira Nagar, First Main Road, Adyar,
Chennai
Restaurant Old No.24, New No.76, B. Venkatarathinam
Nagar, Adyar, Chennai
Nungam-bakkam Centre & Restaurant New No. 97, Old No.45, Nungambakkam High
Road, Nungambakkam, Chennai
Bengaluru Restaurant No: 50, 100 Feet Road,Opp. Kendriya Sadhan
Madivalla Bus Stop, Koramangala IInd Block,
Bengaluru, Karnataka
Kerala Thalassery Restaurant Dew Drop, 382, Holloway Road, Thalassery,
Kannur District, Kerala
Kozhikode Centre & Restaurant MN'S Avenue, Near Fourth Railway Gate, P.T.
Usha Road, Kozhikode
Ernakulam House No CC.42/2319, Chittoor Road,
Kacheripady, Ernakulam
Maharashtra Aundh Ayurvedic Centre C13 & 14, Supercon Residency, Opp.ITI,
Aundh, Pune
Kalyani Nagar Ayurvedic Centre G1, Goodwill Enclave-V, Co-operative Housing
Society Ltd, Plot No.32, Survey No. 290/4,
Final Plot No.77, Yerwada, Kalyani Nagar,
Pune
Gujarat Ahmed-abad Ayurvedic Centre Kamla Kamdhenu, Drive-in-road, Helmet Char
Rastha, Memnagar, Ahmedabad, Gujarat
Sharjah, UAE Sharjah Ayurvedic Centre Natural Physical Treatment Centre, 1C,
Corniche Road, Al Shuwaiheen Area, Next to
Corniche P.O., Sharjah, UAE

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3. About Cholayil Sanjeevanam Kozhikode Centre
3. 1 Location

Cholayil Sanjeevanam Centre, Kozhikode

The restaurant is located at MNs Avenue, Near Fourth Railway Gate, P.T.Usha Road,
Kozhikode.
Daily Timings of the restaurant is as below:
Lunch: 12pm - 3pm
Snacks: 3pm - 7pm
Dinner: 6pm - 9pm

Cholayil Sanjeevanam Kozhikode Centre was inaugurated by Smt.P.K.Sreemathi Teacher
Honble Minister for Health & Social Welfare, Govt. of Kerala on Sunday, 7th September
2008 in the presence of Mr.M.Bhaskaran, Honble Mayor of Kozhikode. The Centre is
equipped with Treatment facilities for Ayurveda, Naturopathy & Yoga. It also has a
Vegetarian Health Restaurant that serves Fresh Natural food.

Kozhikode Centre- Opening

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3.2 Vegetarian Health Restaurant

Cholayil Sanjeevanam Health Restaurant serves healthy and tasty foods cooked based on the
naturopathic principles. Cholayil Sanjeevanam is supported by a panel of eminent dieticians
and other professionals. The food is prepared only in earthen, bronze and copper vessels by
specially trained and experienced cooks, without using ingredients considered detrimental to
health.

Sanjeevanam also offers a wide range of high quality natural health products with the very
best of ingredients, with no preservatives or artificial stimulants while retaining the natural
goodness of complex carbohydrates and insoluble fibres. Pure Honey, Dates, Bran Rice,
Amla Powder etc. are sold over the counter at each restaurant.

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3.3 Concept of the Restaurant

The restaurant is based on the concept of Saatvik diet in accordance with its motto of
Healthy food, Healthy Life.
For an object or food to be Saatvik,
It must be healthy, nutritious and clean
It must be uncontaminated
It should not spread evil or disease in the world, which disallows food or objects
obtained after killing or causing pain to a creature as the object would then have
source in an evil act
Its presence must purify the surroundings
It should not weaken the power or equilibrium of mind, which disallows aphrodisiac
or other drugs and intoxicants that can affect the mind in such a way
It must not be stale or pungent-smelling
A Saatvik diet, also referred to as a yoga diet or sentient diet is a diet based on foods which,
according to Jainism, Ayurveda and Yoga, are strong in the sattva guna, and lead to clarity
and equanimity of mind while also being beneficial to the body. Such foods include water,
fruit, cereal, bread, most vegetables, beans, nuts, grains, milk and milk derivatives (cheese,
butter, ghee, cream, yogurt), and honey.
It is most helpful to consider the general characteristics of the Saatvik diet, which
traditionally is described as pure foods that are rich in prana (life force). Organic foods are
therefore recommended for both their purity and vitality. The food should be fresh and
freshly prepared. Leftovers are decidedly Tamasik.
Pure, Saatvik food needs to be chewed carefully and eaten in modest portions. The food
should be enjoyed for its inherent taste and quality, rather than the spices and seasonings that
are added.

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3.4 Implementation of the Concept

Fresh procurement of vegetables and other foods on a daily basis
Fresh and hygienic preparation of food items
No refrigeration
No addition of preservatives
No addition of colouring agents
Unutilized food is thrown away daily
Low consumption of milk and milk products
Organically produced vegetables are used
Good quality cooking oil is used
Natural sweeteners (jaggery, honey) are used in place of sugar
Tamasik spices like red chillies are not used
Saatvik alternatives are used, e.g tomatoes in place of tamarind
Certain dishes are prepared a little in advance, for e.g., rice is pre-cooked
Foods rich in fibre protein and water majorly feature in the menu
Foods requiring fermentation are fermented only a day before, but the time of
fermentation is less than the standard time taken, so as to reduce the sourness
Snacks are not oil-fried, but steam cooked instead
Tea is not served, as it is not considered good for health because it contains caffeine
Coffee variants, Ginger Coffee, Tulsi Coffee are on the menu
Kalkandu (Tamil), a natural sweetener is placed on the table for the customer to add
as per his requirements
Lukewarm water is served in variants which change daily, e.g. cumin seeds-flavoured
water
Their specialty items include a wide range of salads, steamed food, juices as well as herbal
drinks in addition to the specialty Rajakeeyam meals. The fare includes North Indian, South
Indian, Tandoori, Chinese as well as Continental cuisine and aims at satisfying the palettes of
both the health conscious and the food connoisseurs, thus encouraging the society to
subscribe to multi-cuisine food that is wholesome in taste and brimming with good health.

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4. A Glimpse into the Operations of the Restaurant
4.1 Workforce at the Restaurant

At the Calicut branch not many people are employed because the customer turnout is not
much as compared to other branches like Chennai and Banglore. Further it is very rare when
extra shifts are used here.
The restaurant has the capacity to accommodate at most 35 people. There are 2 waiters who
take orders, 5 cooks to prepare the delicacies, one restaurant manager, one person at the
billing counter and 2 to 3 people in cleaning staff. All the employees are permanent.
Cooks are first trained in Chennai centre and then sent to restaurants at other locations.
A normal working day at restaurant starts at 7 a.m. with cleaning of the restaurant and
kitchen. Around 8 a.m. cooking preparations start. As the customers start coming orders are
taken.
4.2 Organization structure at Sanjeevanam

Organizational structure at Sanjeevanam has a hierarchical structure at the top and a flat one
at the bottom. The sequence of power flow is as below:
Operations Manager
Operations Manager of Chennai Branch looks after the operations at Sanjeevanam,
Calicut. He visits the branch every alternate week.
Restaurant Manager
Restaurant Manager reports to the Operations Manager. He is in charge of all the
activities of restaurant.
Front Office Executives
One person sits at the billing counter. He is responsible of generating the bill for
customers.
One person is responsible for procurement of raw materials for the restaurant. He
keeps tab of the quality of vegetables and other things.
Waiters/ Order-takers
The restaurant has two waiters. Since the customer inflow at Sanjeevanam is not very
much, employing only two waiters serves the purpose.
Cooks
There are 5 cooks at Sanjeevanam, most of who were trained at Chennai first. They
also report to Restaurant manager along with front office execs and waiters.

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Cleaning Staff
There are 2 to 3 people responsible for the cleaning of the restaurant including
kitchen. These people report to the person responsible for procurement of raw
materials.

Organizational Structure at Sanjeevanam, Calicut

4.3 Quality control

Sanjeevanam is a 100% veg restaurant. It serves up healthy and tasty food designed along the
naturopathic principles and is supported by a panel of eminent doctors and dieticians. The
restaurant uses a number of quality control measures:
The food is prepared only in earthen, bronze and copper vessels by specially trained,
experienced cooks. No ingredients which are considered detrimental to health are
used for cooking i.e. coloring agents, preservatives etc. Even red chilli powder is not
used.
There is one dedicated person to check the quality of vegetables coming in.
Since the restaurant does not have any refrigerator, it uses minimum milk products.
Sanjeevanam is ISO 9001 certified. The certification relates to quality management
system and is designed to help organizations ensure they meet the needs of customers

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and other stakeholders. Its implementation leads to superior operational performance
as compared to other similar restaurants.
ISO: 9001 standard vendors are also arranged for daily procurement of food items.
For the Kozhikode centre, there is a single source for procurement of vegetables.
Vendors are fixed on a 1-, 3- or 6- month contract period after checking quality.
Quality checks are based on physical testing and subject to experience. Aperiodic test
sampling of vegetables is done to ensure that they are of adequate quality and
freshness.

Some healthy food items prepared at the restaurant:
Gujhia is steam cooked instead of oil-fried and instead of Maida, wheat flour is
used in its preparation. Instead of sugar, palm candy powder or honey is used as a
sweetener.
For Dosa batter is not fermented and some other method is used.
Normal coffee is also not served at the restaurant because of the high caffeine. Instead
of similar coffee powder with health benefits is used.

4.4 Inventory Holding

The make-to-order versus make-to-stock question is a fundamental one in organizing and
controlling production. According to some studies (one of those of Milgrom and Roberts,
1987); inventories and information about demand are substitutes for one another in
production. Their results suggest that firms should employ only one of the two strategies:
firms either produce for inventory or produce to order, but not the both.
Many examples support this conclusion but many others do not. Some firms often shift from
one alternative to the other while other firms constantly employ a mix of the two alternatives.
Sanjeevanam restaurant also uses a mix of both strategies. Being a concept based restaurant
which believes in healthy food, its policy is to serve people freshly prepared food. Once
prepared, food cant be used more than 4 hours. But there are few items like rice and some
vegetables, which are prepared beforehand so that when the order comes it can be modified
as per the order and served.
This kind of inventory management requires an efficient demand and supply planning system
to ensure that the inventory that would be wasted is minimized.

4.5 Planning System

In case of large orders, they must be intimated beforehand to enable better planning. The
planning system involves the collation of the daily sales reports of the past 6 months through
their online, automated billing system. This is used as a feedback mechanism to learn about
the required quantity to be procured daily. Cost budgeting is carried out every 3-4 months
based on these required procurement details.

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4.6 Feedback and Services

The restaurant also solicits feedback from the customers. The headquartered office at
Chennai decides the menu changes for the individual branches after a compilation of this
feedback.
The restaurant offers several options to the customers in the form of in-restaurant dining,
banquet hall (located above the ground floor) dining, party orders, takeaways and home
delivery services (for large order quantities). It also has the option for prior booking.

4.7 Layout of Restaurant

Service Area
The service area of restaurant has a rectangular layout. The room has been separated into two
sides. One of the sides has 4 tables with the seating capacity of 4 people each. The other side
has 3 four Seater tables arrangement and one 6 Seater table. This side has sofa seating at one
side of the tables. The restaurant can accommodate 34 people at full capacity.
The kitchen is at the other end of the room as shown in the layout. Washroom is at the other
end. Washroom area is quite clean with the separate facilities for ladies and gents.
There is a product stall behind the billing counter which displays the Ayurvedic products like
honey, dates, coffee powder etc. etc.

No. of tables Seats per table Max Capacity
7 4 28
1 6 6
Total 34

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Service Area Layout

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Kitchen Layout (Drawn as per the details shared by Restaurant Manager)

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5. Service Process, Strategy and Design
5.1 Elements in the design of service organisation

There are basically four elements involved in the design of a service organization:
Target Market
Service Concept
Service Strategy
Service Delivery System

Target Market
The target segment for this concept restaurant is all those people who are health conscious.
The restaurant started with aim of attracting people in the age group of 40+. But the recent
trends with younger population becoming more health conscious have led to younger
generation frequenting this restaurant.

Service Concept
Sanjeevanam offers quality of products and freshness of products as service differentiators.
Nutritional value of the food provided is the USP of this restaurant and it hopes to maintain
customer loyalty by not compromising on the cleanliness and the quality of the food.

Service Strategy
Sanjeevanam provides service to the customers with the highest possible quality. A
customers visit to a Sanjeevanam doesnt end with his purchase of food/beverages. He goes
there for the experience of having healthy food. The staff at any service establishment plays a
very important role in the proper functioning and success of that establishment. Especially in
the restaurants the staff makes or breaks the place. Employees help the restaurant to facilitate
the process of quality service. The behavior of the employees directly contributes to the
customers overall experience. Their actions, reactions and conduct while interacting with the
customers will directly affect the customer satisfaction.

Service Delivery System
The delivery of the product plays an important role in improving customer service. Some of
the factors like the time taken to place/deliver an order and the process of placing and
delivering an order contribute to the customers overall experience.
Order Time is the time taken from when the customer wants to place an order, till when the
order process is completed.
Delivery Time is the time taken from the point when the customer gives the order, to when it
is delivered to the customer. Delivery time largely depends on the preparation time and the
delivery process. It is also an indicator of how long a customer must sit idle until his order is
ready for consumption.

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5.2 Service Process Matrix

The service process matrix applicable to Sanjeevanam is shown as below. A high amount of
customer interaction is required and the degree of labor intensity is relatively low which puts
it in the category of Service Shop. It is important for the sales and other executives to
address the needs of each customer separately and provide appropriate products.

5.3 Service System design Matrix

Essentially this points out the fact that quality and consistency of services; sales force
management and consumer involvement are the key issues to be taken care of by
Sanjeevanam. Also in the service system design it falls in the face-to-face tight specs
position, highlighting the importance of process of sales being the key in differentiating with
the competitors.

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5.4 Service Process Flow

1. Customer comes in and occupies a table
2. Menu is given to the customer by the assigned order-taker/ waiter.

3. After offering water, any one of the two order-takers takes the first order from the
customer

Sanjeevanam Health
Restaurant

26

2010
4. The order is taken and noted in a notepad

5. The order-taker goes into kitchen and enters the order into the computer with a
specific program known as KITCHEN ORDER TOKEN.

6. Details like name of waiter, table number, time of order, number of people occupying
the table and the food ordered is entered into the system. A serial number is assigned
to it to know about the previous orders given by the customer, if any.

7. 3 copies of printed receipt are obtained from the KOT for the data entered. Waiter
keeps one, second is given to kitchen and third one is given to the billing counter.

8. After receiving the KOT receipt, ordered food is prepared in the kitchen. Once the
food is ready, it is given to the waiter to serve

9. The waiter then serves the food to the customers. The KOT receipt helps in avoiding
any confusion with respect to food ordered by different customers

10. More orders from the customer follow the same procedure. The billing counter copies
are kept together in the slot reserved for that particular table. After all the orders are
processed, all the KOT receipts are taken to the billing counter

11. Here the serial numbers are checked for each receipt and so is the table number. The
bill is made as a compilation of all these KOT receipts. The bill is taken to the table
by the order taker

12. Customer pays the bill and the waiter takes the balance from the billing counter and gives
it back to customer. All the bill details can be accessed by the central office in Chennai.

Bill at Sanjeevanam with all the details

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2010
Total time taken at the restaurant (for a single order)

Activities Time taken
(Minutes)
Time taken to decide on items 5
Time taken to note down the
order
2
Time taken to cook the food 25
Clearing the table 3
Getting the bill prepared and
giving it to the customer
4
Customer paying the bill 2

Total time 42 Minutes

5.5 Service blueprint

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5.6 Suggested Service blueprint

5.7 Stakeholders

Customers

Current Process and its impact on stakeholders:
All levels in the process use Kaizen
Trainings at regular intervals
Various cuisines to choose from and they also serve in house specialities
Food prepared with utmost care and tested physically
Frequent menu upgradation based on data collected about previous customers

Employees

Competitive Compensation
Sales linked bonus and incentives

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2010
Regular training sessions provide great opportunity to learn about technology,
products and other skill
Promotions are also linked with duration in service along with the effort put in.
This policy is to promote loyalty.
The need to perform aspect may put a lot of pressure on employees

Sanjeevanam Management

Sanjeevanam shows high level of commitment to customers and care to customer
needs. It believes that customer satisfaction is the way to success.
Good environment and ambience to make customers feel comfortable

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2010
6. Recommendations

Sanjeevanam is a concept restaurant which focuses on the benefits of Ayurveda for holistic
well-being. Apart from having a number of health services like Ayurvedic massage, skin and
hair treatments, herbal baths, yoga and meditation etc. they also specialize in a niche area
known as Saatvik food. This special kind of food is defined to be made by pure and natural
ingredients, under most hygienic and scientifically tested techniques so that the nutritional
value of ingredients is not lost and all the harmful toxins present in the food are removed
carefully.

As this concept is highly inspired from the philosophy of Ayurveda and many people are not
very much aware of this age old concept, the management is currently facing a major
challenge in the attracting the general mass towards this idea of healthy living.

As the operations manager Mr. Murugan also pointed out, the Major challenge in front of
them today is that though they have capacity but they are not able to attract the crowd as far
as their Calicut centre is concerned.

6.1 Challenges

The various Challenges currently faced by the centre can be grouped into following main
sub-divisions:

Awareness and Marketing

Calicut being a tier two city currently does not have a high spending and
cosmopolitan culture which is ideal for niche businesses like this. The trends in
spending in Calicut are very much different from what people around Snajeevanams
other centres in the cities like Bangalore, Chennai etc have. For example as the
operations manager said, unlike in other cities, Calicut has less people visiting the
centre during weekends as compared to weekdays.

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2010
The concept itself is not very well known and accepted by the people. There is a great
deal of consumer education and exposure required.
Lack of connect with the young generation is also a major problem faced by this
specialty food centre especially in its Calicut centre. People in the age group of 20-35
sometimes feel more disconnected from concepts like Ayurveda and traditional
practices of maintaining healthy life. As they are the future spenders and decision
makers, it is important to make them aware of the uniqueness and effectiveness of
such cuisines.

Inventory Maintenance

Since the philosophy of saatvik food focuses on maintaining the nutritional value of
the food and avoiding any preparation technique which deteriorates the quality of
food, there is very less carry forward of inventory in Sanjeevanam. Since they adopt
the technique of make to order for most of the food items, all of the processed food on
any particular day is either consumed on the same day or is discarded. Sometimes
inefficient planning results in preparation of food in excess quantity, which results in
significant losses.
Supplies (such as fresh vegetables and fruits) are procured every day. This is a major
area of improvement, as the overheads involved with transportation etc. can prove to
be very costly if incurred every day.
Major problem was identified with the availability of different food items mentioned
in the menu card. Many instances of customers being denied of food item of their
choice has been noticed, which has resulted adversely on the consumer experience.

Restaurant layout and Settings

The space for the restaurant dining area is about 600 square feet with seating capacity
of 36 people. The arrangement of tables is such that at full capacity there is little
space for the movement of waiters and stewards and this makes the space looks a bit
congested during peak hours.
There is no place for people waiting for a table to get free or a parcel done, to be
seated. Though not a major issue currently, in future as the business increases this
may have adverse effect on the profits.
Being on the ground floor, the restaurant has the problem of receiving less of the
natural light during the day time. As the lights provided in the dining area are dim, it
along with the color of the walls make the setting looks a bit dull and unenthusiastic.

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2010
Workforce

As the number of waiters is just three, during peak hours this may result in increased
service times. Also since the cooks require special training at the headquarters in
Chennai, getting new cooks requires a process which could result in delays in case of
sudden requirement surges.

6.2 Recommendations

Based upon the analysis of the operations of the Sanjeevanam centre in Calicut, we were able
to identify a number of various problems and improvement areas, which we pointed out in the
section above. Keeping these issues in mind we hereby suggest certain specific action items
which can be undertaken in order to improve the efficiency of the day to day working of the
centre and make the centre more profitable:

There is a need to spread the message of Ayurveda and benefits of the facilities
provided by the centre to the people. This can be done through a number of ways:
o Special food festival spanning for say a week or so can be conducted every six
months so as to educated people about the benefits of Ayurveda
o Tie ups with work places like IT companies and educational institutes like IIM
Kozhikode and NIT Calicut can help in connecting with the young consumer
section. Also since these young people form a major part of the money
spenders in the region, it will increase the sales volumes by considerable
amounts
o Advertising through social networking sites like Facebook, Twitter and portals
like FoodGuide.com, Sulekha.com etc. can help in connecting with a larger
mass
o Sponsorships of events like seminars by art of living etc. can prove to be of
major help as far as reaching to the right people is concerned
o Targeting special needs of smaller consumer segments like specializing in
Jain food will help in developing a loyal customer base

For more efficient inventory management it is recommended to procure fresh
vegetables and fruits twice a week. It is advised to have a refrigeration facility in their
space to store the supplies for a period of 2-3 days. This measure will be helpful in
reducing the overheads involved in procuring raw materials, which in turn will bring
down the cost of the food items

For their daily estimation of food quantity demanded they should keep a record on the
average demand of the various items on the daily bases. This data when accumulated
for a period of about 6 months can be helpful in predicting the daily demand on each

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day of the week so that more accurate estimates of the quantity can help in reducing
wastage of semi processed and processed food

The interior setting of the restaurant should be appealing and should it not look
congested even in the peak hours of operations. For this, there should be provisions
made for better lighting. More power saver CFL lamps can be brought in place of tube
lights. Also During the daytime time, arrangements to allow natural light inside
should be made. Also the walls can be decorated with painting and pictures related to
the theme of the restaurant, say for example nature. There should be space for free
movement for waiters during peak hours and some space should be kept for people
waiting for table or a parcel done

They should also promote and advertise their home delivery service, as many people
today prefer food getting delivered to their door step, instead of wasting time in
getting to the restaurant and then waiting for food there

To improve the availability of food items during peak hours it is advised that certain
popular items on the menu be semi processed and stored to a level so that it is
possible to use them over a larger range of final products. For example gravy base for
a group of dishes can be prepared and stored for later use as and when demanded

Maintaining a shelf for merchandized goods, behind the cash counter is a nice idea,
and they should use more ways like pamphlets and table placards, to promote the
sales of such products.

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2010
References:
http://www.cholayilsanjeevanam.com/

Sanjeev An Am

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