Good Food: Going Down

In the month of January 2017 Mr. Aftab is worried about the future of his restaurant business
while taking a cup of coffee with his partner and team. Thinking about to move from one
location to another because of the huge losses -in July 2016 revenues were PKR.235000/= down
to PKR.110000/= in December 2016-, customers are not returning and losing the customers on
regular basis despite they are giving the good taste and services to the customers. Mr. Aftab was
exchanging ideas with the partner and team, concerning how to improve the restaurant service
delivery process, what steps we should take to regain the customers and overcome the losses and
make it success in future.

Background

Mr. Aftab after graduating with a marketing degree and experience of sixteen (16) years in
multinational company, and having a big family. He was passionate about food and wants to
open a restaurant. One day while having lunch in the restaurant, Mr. Aftab was captivated with
the idea of starting his own food business as he felt he would be able to run it much better way to
be a successful business. Mr. Aftab opens a restaurant at small scale on 5th December 2015. After
seeing a good run in a restaurant with a limited menu, he was thinking about to expand it. But he
was worried about the investment. Once his family friend Mr. Bashir came to his restaurant for
dinner he was motivated by seeing him and his efforts that how he is doing a business, they both
were talking about the business and expansion. His friend saw an opportunity to invest, he made
an offer to invest for the expansion of this restaurant and work as an equal partner in this venture
under some conditions that have been made with the consent of both or mutual agreement.

Mr. Bashir was working on a private project, experienced in installation and dismantling of
telecom towers and also having some foreign exposure. After ending of the project, he went for
the investment in the food business. Mr. Aftab and Mr. Bashir then restructure and renovate the
business to make it more attractive and profitable. They both invest PKR.500000/= and
employed 4 peoples-waiters- from locality for service delivery. They operated this business as a
project under the name of SAB enterprises-initials letters of their name-.

Trends in Sukkur and Competition:

This industry is changing day by day for more advancements in the foods due to that there is
huge competition and opens the door for the new comers to compete in that business. As in
Sukkur the food business had grown rapidly in the previous decade there is low concept of
variety of food and fast foods, but now in every street there is food corners. Now a day’s people
love to eat food outside of their homes at the restaurants and spots. According to the statistics see
Exhibit 1: the salaried person spending average of their income at the restaurant in the month.
This gives the restaurants an edge to bring new innovations and advancement in their menus at
reasonable costs.

Competitors:

Their competitors are, Al-Habib Restaurant located at the distance of 800 meters. Lasani at the
distance of 1600 meters, and other restaurants in the line, like Nawab Tikka House, and other
local restaurants and also the emergence of Sindhri from Dhabba to restaurant make the
competition intense.

Segmentation and Targeting

They are segmenting the customers in two groups and targeting; one who are the employees in
the nearby offices for that customers they are providing the lunch on the payment of monthly
basis; And the other who are local peoples used to come for outing and fine dining. They are also
giving the discounts to the office employees. And also they are providing home delivery service
within the locality; radius 4 kilometers.

Marketing Mix:

Menu: There menu consist of few dishes at the initial stage before expansion, consist of Biryani
and green and white Karhai at the lunch time, and in dinner they added BBQ-Tikka and Kabab.
After the investment they reset the menu with variety of dishes under the category of Desi,
Chinese, BBQ, Tea and Beverages. (See exhibit-2 for full menu). And later on they added some
fast foods items

Pricing: The food was made fresh after the placement of order. Their aim was to give the quality
food at reasonable price providing significance against money in terms of service and taste. A
feast of two charged around 300 PKR. (See exhibit-2 for full prices)

Location: Good food was located in a rented space in the upscale B-81, Hamdard society,
Sukkur, because of the offices and innumerable residential building in the locality, after much
hunt for the location Mr. Aftab chosen this particular location for convenient and accessibility.

Promotion: As Mr. Aftab was a marketing graduate, he thought that (BTL activity) will give
better exposure to the good food. And also they visit offices nearby for marketing purposes and
uses word of mouth communication. They interact with the customers to know the taste and
preference of the customers in food. The idea was to use personal selling and interaction to build
rapport, in turn encouraging word of mouth recommendations. And also he uses the billboards
and flyers to make it visible to the customers of their existence.
On different occasion they are also giving some deals and discounts coupons in the magazines.

Ambience: They planned the interior like, the customers feel like it as a home, because the
location was set like a bungalow. They are giving the homely touch. The ambience was one that
would appeal to a young adults and families, and providing the cool, calm and comfortable
space.

Staff and Services: The staff was consists of 11 skillful and trained staff. Three chefs as one for
Desi foods, one for Chinese and one for BBQ. And Desi foods chef have one assistant who
assists him with helping hand for cutting and washing of the ingredients. Four waiters as the two
for customers who sit outside of the restaurant and two for the customers who sits inside like
families and others. And one person is responsible for home delivery services. One is a dish
washer who is responsible for the washing and cleaning of the used utensils and makes it hygiene
for the next use.

Way ahead:

The dilemma is Mr. Aftab and Mr. Bashir is losing customers and thinking on the plan. They
were searching about the problem what happen to this venture, why they are losing customers?
After few days spent on research they come to know, according to some regular customers: they
were not consistent with the taste that they are providing in Desi foods. Other than this reason
there was complaint of service delivery that they are taking more time to deliver their foods to
the destinations. Mr. Bashir suggest him to change the location of the business or start a new
venture with new name, new place that starts from the scratch. And one of his team members
also gave suggestion to change the Chefs and go with the current restaurant and reposition them.
What should they do? Is it viable to change the chefs or go for the new location with new name?
If they change the chefs, how they should change the customer perception about the taste
consistency of the good food? What type of strategies will be helpful for them to cater this type
of situation?
Exhibit: 1

Salaried Person
70%

60%

50%

40%

30% Salaried Person

20%
10%
0%

25000-40000
30000-50000
50000-80000
Exhibit 2- Menu and Prices

Desi Food Mutton Karahi 1100

Mutton Brown 1000

Mutton Joint 350

Chicken Karachi 800

Chicken White Karachi 850

Chiken Tika Karachi 850

Chicken Handi 850

Chicken White Handi 900

Chicken Spring 850

Chicken Drum Stick 350

Chicken Dhaka 800

Chicken Charga 800

Roti 8

Salad 40

Raita 30

Chinese Food Chicken Fried Rice 200

Egg Fried Rice 150

Vegetable Fried Rice 170

Chicken Jalfrazy 250

Vegetable Jalfrazy 200

Chicken Ginger 250

Chicken Chilly 250

 Chicken Manchurian 270

Chicken Chopsi 300

Chicken Shashlik with Plain Rice 250

Chicken Shashlik with Vegetable Rice 300

Chicken Chomin 350

Fix Vegetable 150

Mong / Maash ki Dal 100

Bar B Q Fish Dambra Fry 1200

Chicken Tikka 170

Chicken Mallai Tikka 200

Chicken Green Tikka 170

Chicken Achari Tikka 170

Chicken Boti 180

Chicken Malai Boti 200

Chicken Achari Boti 180

Chicken Namkeen Boti 180

Chicken Reshmi Kabab 200

Tea & Beverages Tea 30

Kashmiri Tea 40

Green Tea 50

Coffee - Expreso 60

Cold Drink - Regular 30

 Exhibit 3 – Financial Statement

June-July August- September October-December

Revenue 235,000 190,000 110,000

COGS 152,750 150,000 120,000

Admin exp 25,000 25,000 20,000

Rent exp 18,000 18,000 18,000

Mkt exp 10,000 - -

Total cost 205,750 193,000 158,000

Income 29,250 (3,000) (48,000)

Exhibit 4: advertisement banners