Navigating the future of food and flavour

Over the past decade, the dining landscape in India has undergone a significant transformation, reshaping how 
restaurants operate and engage with their customers. Evolving culinary trends and shifting consumer preferences have created both challenges and opportunities for restaurateurs. Today, managing finances, including budgeting and cash flow, is more crucial than ever, as operators seek to optimise revenue streams in a competitive market. The successful integration of effective marketing strategies—both online and offline—plays a key role in attracting and retaining patrons. Additionally, as technology becomes increasingly embedded in restaurant operations, 
from reservations to inventory management, it offers new ways to streamline processes and enhance customer experience.

Moreover, restaurateurs must navigate complex regulatory challenges while ensuring food quality and authenticity. With sustainability in mind, many are implementing initiatives to reduce food waste and source ingredients responsibly. In this crowded landscape, standing out requires innovation and a clear understanding of pricing strategies and menu engineering. As they look to the future, many restaurateurs are developing long-term growth plans that not only sustain their businesses but also position them for success in an ever-evolving industry.

Evolution of dining experiences 
Zorawar Kalra, Founder and MD of Massive Restaurants, which includes brands like Masala Library, Made In Punjab, Farzi Café, and Pa Pa Ya, has keenly observed the evolving dining landscape in recent years. He notes, “With increased disposable income and a growing middle class, dining out has become common. The dining experience has been shaped by societal shifts, technological advancements and the ever-changing palate of consumers.”

Kalra emphasises that the restaurant industry reflects broader societal trends and modern diners’ desires. “Today, there’s a significant focus on sustainability and innovative cuisine, as consumers seek experiences that align with their values,” he states. He highlights the role of technology in adapting to evolving consumer needs, from online reservations to improved delivery options. As dining out gains popularity, Kalra and his team are committed to resonating with the new generation of diners, blending tradition with innovation to create memorable experiences.

Over the last decade, Satyajit Dhingra, COO of Impresario Entertainment & Hospitality Pvt Ltd, has observed a significant shift in India’s dining culture. “Dining in India has transformed from being primarily a weekend activity to an integral part of daily life,” he notes. With changing lifestyles, people are increasingly seeking experiences that blend socialising, work and relaxation, particularly embraced by Millennials and Gen Z. He highlights SOCIAL, Impresario’s innovative café-bar concept, as a pioneer in this evolution. “We introduced the idea of café-bars where work seamlessly meets play,” he explains. By offering a vibrant atmosphere with music events and live gigs, SOCIAL has redefined weekday outings, emphasising that dining is about creating memorable experiences and fostering connections.

Rahul Singh, Founder and CEO of The Beer Café, has seen significant changes in India’s dining landscape. “The rise of food delivery apps has revolutionised the way people dine,” he notes, emphasising convenience, with many choosing to order in. Digital payments have streamlined transactions. Restaurants are now offering unique experiences, like themed eateries and farm-to-table concepts. The growth of quick-service restaurants (QSRs) and local brands has diversified options. Technology is crucial, with contactless dining becoming standard and cloud kitchens focussed on delivery. He highlights the rise of niche restaurants featuring artisanal and fusion foods, alongside the impact of social media in enhancing customer engagement and brand awareness.

Bo-Tai, Mehrauli Qutub

Managing finances
Kalra emphasises on the importance of structure and efficiency in operations, stating, “We adhere to a strict framework and SOPs that allow us to monitor everything.” This meticulous approach ensures streamlined accountability and promotes a variable spending model linked to revenues, enabling swift adaptation to market changes.

Amit Bagga, Co-founder & CEO-CMO, Daryaganj Hospitality, describes their financial management as the “bible of the brand.” His Annual Operating Plan (AOP) encompasses budgetting and cash flow management, leveraging advanced software for insights and timely adjustments. Cash flow management is crucial, with annual forecasting to anticipate surplus and shortfall. Regular audits refine strategies, while KPIs align with AOP objectives to foster a cohesive team environment.

Singh, meanwhile, underscores effective financial management as vital for long-term success. He advises creating detailed budgets based on historical data and monitoring cash flow regularly. “Identifying fixed and variable costs, along with a contingency fund, helps prepare for unexpected expenses,” he explains. Cost control is critical and he 
recommends monitoring food costs and reducing waste through portion control. “Optimising staff costs by scheduling for peak hours and cross-training employees improves efficiency,” he adds. By utilising specialised accounting software and integrated POS systems, restaurants can automate bookkeeping and generate financial reports. He also stressed on the importance of maintaining a cash reserve for emergencies and seasonal fluctuations. Regular reviews and professional advice ensure that financial strategies remain effective. By adhering to these principles, Singh believes restaurants can secure a healthy financial position and long-term success.

Optimisation of main revenue streams
Talking about the need to diversify revenue streams in a competitive landscape, Kalra says, “Our primary revenue comes from customers dining in or ordering from our brands.” To adapt to changing consumer preferences, he and his team focus on continuous innovation, exploring new product launches and menu enhancements. This proactive approach keeps offerings fresh and appealing. Additionally, the brand optimises online ordering with better visibility and an engaging loyalty programme, encouraging repeat business and strengthening customer relationships. On the other hand, Bagga outlines his strategic revenue generation approach, with casual dining as the cornerstone of his business. He also taps into delivery through Five Senses Delivery, corporate catering, and traditional kulfi kiosks. To maximise these streams, he implements an Optimisation Plan alongside their Annual Operating Plan (AOP), setting ambitious targets and identifying cost-reduction areas while enhancing revenue opportunities.

Singh says The Beer Café’s diverse revenue sources, primarily from beverage sales and food options enhance the dining experience. Strategies like menu engineering, ‘Happy Hours’ discounts, upselling and seasonal promotions encourage repeat visits. Events like live music and themed parties boost foot traffic, while loyalty programmes enhance customer retention. By refining these strategies, The Beer Café positions itself for long-term profitability in a competitive market.

Bo-Tai, Mehrauli Qutub

Marketing strategies
Kalra mentions on a customer-centric approach in his strategy, stating, “Providing exceptional value and service has been the most successful for us.” He enhances engagement through targeted hyperlocal campaigns that address community concerns. “We leverage digital marketing to generate brand buzz, particularly among the youth,” he explains, fostering strong connections with local customers and ensuring relevance in a competitive landscape.

Bagga focusses on product quality as a key marketing tool, asserting, “A strong product and exceptional customer experience are the most powerful marketing tools any restaurant can have.” This commitment encourages positive word-of-mouth, turning satisfied customers into effective marketers. He highlights the role of user-generated content and engaging posts on platforms like Instagram, saying, “This builds a vibrant online community and amplifies authentic customer experiences.” 

At The Beer Café, Singh describes a multifaceted marketing approach, noting, “We maintain an active presence on social media, particularly Instagram, showcasing our ambience and new offerings.” User-generated content and influencer collaborations enhance their reach, while local SEO and targeted advertising improve visibility. Offline, the café hosts themed events like quiz nights and beer tastings to attract diverse crowds. “Our loyalty programme encourages repeat visits, while partnerships with local breweries create buzz,” Singh adds.

Regulatory challenges and compliance requirements
At Massive Restaurants, shares Kalra, stress is on the importance of compliance. He says they stay updated through a dedicated team that manages and updates SOPs. Daily briefings ensure that staff are informed about new guidelines. “This proactive approach not only safeguards the business but fosters a culture of accountability and excellence among employees,” he adds.

Bagga highlights his strategic approach to regulatory challenges, noting, “We navigate regulatory challenges by maintaining a robust and proactive system.” Central to this is a comprehensive regulatory tracker that documents all relevant regulations, keeping the team aligned. Compliance standards are integrated into KPIs, and 
monthly monitoring ensures consistent execution. Engaging top-tier consultants for expert guidance is also vital. “Their insights help us remain well-informed and compliant,” he explains.

Underscoring the significance of navigating the regulatory landscape in the food service industry, Singh explains, “Operating in India means adhering to numerous regulations at both central and state levels,” he notes. The Beer Café ensures all necessary licenses are in order, from liquor to food safety. Rigorous hygiene practices and regular employee health check-ups help meet FSSAI standards. Additionally, they enforce age verification for alcohol service and pay required excise duties. He adds, “Regular consultations with legal advisors and internal audits keep us ahead of potential issues.” By proactively addressing regulatory challenges, The Beer Café minimises legal risks while enhancing its reputation and customer experience.

Daryaganj, Worldmark 1, Aerocity New Delhi

Strategies for managing operational risks
Kalra underscores the importance of hygiene in his establishments: “We conduct regular audits and enforce strict hygiene SOPs.” Detailed cleaning procedures and weekly expiry stock checks ensure First In, First Out (FIFO) compliance. Each outlet undergoes weekly audits, with scores meticulously tracked. 

Singh stresses on the critical importance of managing operational risks related to food safety at The Beer Café. “We implement comprehensive food safety protocols,” he states, noting the use of the HACCP system to identify and control potential hazards during food preparation. Regular monitoring ensures compliance with safety standards, while staff receive continuous training and certification through the FSSAI’s FoSTac programme. Rigorous daily cleaning schedules target all areas, especially high-touch surfaces. The café collaborates exclusively with approved suppliers and conducts inspections to guarantee quality.

Pricing decisions and menu engineering
Kalra explains their pricing strategy: “Our pricing decisions consider market conditions and input costs.” While they aim to shield customers from rising raw material prices, adjustments are sometimes necessary. To manage this, they stagger price hikes and focus on menu optimisation by reducing less popular items and introducing new products. “By streamlining our offerings, we create a more focussed and appealing menu,” he adds, emphasising on their commitment to quality and customer satisfaction. 

Bagga highlights a value-driven approach that resonates with the Indian market, stating, “We recognise our customers are more value-sensitive than price-sensitive.” By maintaining high standards comparable to premium restaurants while keeping prices accessible, they attract customers and foster loyalty. Their meticulous, data-driven menu engineering evaluates dishes based on sales volume, customer feedback, food cost, preparation time and spoilage. “Any item falling short on four parameters is typically removed,” he notes. 

Meanwhile, Singh outlines a comprehensive pricing approach, drawing attention on the importance of understanding costs and margins. “Calculating COGS and gross profit margins is our starting point,” he states. Their menu engineering categorises items by popularity and profitability, focusing on optimising star items while reassessing laggards. Psychological pricing strategies, such as charm pricing and bundling, enhance appeal. Regular reviews of sales data and customer feedback allow for ongoing adjustments. “By combining these strategies, we effectively manage pricing and menu engineering to maximise profitability while delivering value,” he adds.

SOCIAL, Hazratganj, Lucknow

Food sourcing and quality control
Kalra highlights the importance of quality and efficiency in food sourcing, stating that they manage this through central base kitchens and approved vendors, who undergo trials and regular audits. They use a daily demand planner to prepare orders based on the time of day and week, minimising food waste and enhancing sustainability.

Food sourcing is crucial for maintaining integrity of the dining brands, feels Dhingra, adding that they partner with trusted suppliers and implement rigorous quality checks, along with regular audits and staff training to uphold standards. At The Beer Café, Singh notes freshness and quality are key to their dishes. They work with trusted local suppliers, employing rigorous inspections and the FIFO method. Standardised recipes ensure consistency, supported by continuous staff training. “To reduce food waste, we analyse sales data for accurate demand forecasting and creatively repurpose ingredients nearing their end. We also encourage customers to take leftovers home, reinforcing their commitment to quality and sustainability,” he adds.

Stay competitive in a crowded market
Kalra opines innovation is crucial for market leadership. “We constantly evolve our food and dining experiences,” he says, pointing to brands like Farzi Café and Louis Burger that offer modern takes on Indian cuisine and gourmet burgers. By creating unique concepts, these brands attract customers and maintain a competitive edge.

Dhingra believes competitiveness requires thoughtful brand-building and customer connection. Each of Impresario’s brands offers unique experiences. For instance, SOCIAL uses a hyperlocal strategy that reflects community culture in its design and events. “This ensures each outlet feels authentic to its neighbourhood,” he explains.

Singh notes that The Beer Café stands out by specialising in beer, offering a diverse selection that enhances the dining experience. He describes the café’s relaxed atmosphere and community-focused themed events as key to attracting repeat customers. “By fostering local connections and our loyalty programme, we build lasting relationships,” he adds. This combination of strong branding, community engagement, and efficient operations keeps The Beer Café a popular destination for beer lovers and casual diners alike.

The Beer Cafe, Cosmo Mall, Zirakpur

Long-term growth strategies 
Outlining a focussed growth strategy centred on two key levers, Kalra shares, “Expanding our dining footprint through franchise partners allows us to bring our brands closer to customers quickly. It enhances accessibility and local engagement. He plans to scale cloud kitchen operations, aiming to establish kitchens in 15 cities by 2025.

Meanwhile, Bagga presents a long-term growth strategy that stresses on solidifying the brand’s presence in the Delhi-NCR. “Our strategy focusses on strengthening our foothold while strategically expanding within this territory,” he explains. The establishment of a comprehensive headquarters integrates essential departments for seamless coordination, featuring an R&D and training kitchen to ensure high standards. Regular review sessions for managers and chefs foster team cohesion and operational efficiency. 

Singh explains The Beer Café’s sustained growth relies on strategic expansion. “We’ll continue presence in Tier II and Tier III markets,” he notes. The franchise model will accelerate growth, and diversifying offerings, including 36 fresh cocktails and healthier food options, will attract a broader customer base. Singh emphasises on the importance of financial planning and building a strong corporate culture to ensure consistent service quality as the brand grows.

Dhingra reflects on Impresario’s vision to lead in the evolving hospitality landscape. “In the next four to five years, we aim to solidify our status as a cultural hub and trendsetter,” he shares, planning to grow to 100 outlets across metro, Tier II and III cities while adhering to a hyperlocal strategy. He sees potential in cloud kitchens to scale rapidly, while Smoke House Deli will focus on enhancing its premium dining experience.