Anjan Chatterjee Chairman and Managing Director, Speciality Restaurants Limited, talks about the demand and response from the public, strategies that will be adopted to increase footfalls and cloud kitchens among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts: 

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Q: Restaurants and bars have been allowed to open with 50% capacity in Maharashtra from October 5, 2020. How has been the demand and customer response since the restaurants were allowed to open? Also, name the regions where strong trends are visible in India?

A: Things have started in Bengal, i.e. Kolkata, Bangalore, Chennai and Delhi and the footfalls for dine-in is opening gradually. Delivery was allowed earlier and has been in place during the lockdown and has been a good one for us. As you said our brands are very strong, may it be Mainland China, Oh! Calcutta, and the list of brands, and for it the way we are looking at the safety environment. And due to this faith of people has increased on us. In Maharashtra, standalone has been opened till 10 pm but malls are opened only till 7 pm.

So, we have not opened our malls in malls and will look forward to opening them when their timings will move till 10 pm because the most important aspect of dine-in is the food that you take at the night, i.e. the dinner, this is why we have not opened them. Yes, it is slow but steady and the only thing that will differentiate here is your brand, i.e. the faith people have. We have been into the business for the last 26 years and people know that if they will go to Made in China or Oh! Calcutta then they will be safe as we have created an environment and have followed the protocols. At the moment, the confidence of people is increasing gradually.

When it comes to the attack of CORONA, then the number of cases is going down and the graphs are moving in the right direction in terms of Pulmonary. So in the time to come, we will have to look forward to how the challenge should be accepted. We are engaged in cloud kitchens and are balancing our acts. You have said that there will be some problems in dine-in at the start but I feel that in the next 3-4 months – as the festive season is coming – it will become better and better. 

Q: What are the key strategies that you are adopting to increase footfalls? Also, tell us the part of your business that is being compensated through home deliveries and what kind of trends is visible for the future?

A: Fewer people will come out in the short-term and mid-term, thus there will be challenges related to dine-ii but 60% volume of the business is coming from home delivery, takeaways and it will consolidate in near future and may come down to 50%. As we were in restaurant and dine-in and have geared up ourselves for the betterment of the deliveries, including our operational challenges, which were covered in this lockdown and we strengthened the safety protocols. It is a new normal, so we have tried to win people confidence and for the purpose, we did videos, informed them on social media that you are in a safe environment.

Footfalls have increased a lot in Bangalore and Kolkata. Deliveries are increasing at a continuous pace for cloud kitchens have been created, in fact, a separate vertical has been created for it. We are also taking the brand to places where we were not present under an umbrella called ‘Specialty Cuisine’, under which each of our brands will be present, it will comprise of the cloud kitchens and food will be delivered from those facilities. 

Q: I believe that the prudent strategy of the company in the future will be on home delivery instead of expansion in new outlets as it is going to be a cost-effective process for you. Do you have such a thought and work will be done in this regard?

A: We will have a focus on cloud kitchens. As you said that there will be a certain change in the cost structure because the front of the house will need more cost for manpower to serve the dine-in and air conditions etc are also required. In the case of cloud kitchen, the expenses for the kitchen are incurred. And, to build this volume, we have created our vertical, as ‘Under Specialty Cuisines’ brands and we are focusing a lot on it. We are a debt-free company, so we will not have to take money from someone to build this vertical.

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We want to combine the internal strengths of the company and consolidate them in a way that fine-dine will be staying. We are rationalizing our portfolio and are right-sizing it. In the coming future, we would try to turn 50:50 into 60:40.