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Restaurants
Branding with Kwality
Kwality group plans to establish a multi-brand strategy
for each of the brands and businesses and is looking at franchising options
in the future. Dhruv Lamba , managing director, speaks to Sanjeev Bhar
about the future.
Dhruv Lamba
Managing Director, Kwality Group
At a time when dining out was considered a lavish affair at
a five star hotel, Kwality group came up with restaurants redefining the concept
of dining-out for the middle class. Taking great pride in what the group has
achieved over the decades Dhruv Lamba, managing director of the company says,
"Today at this juncture, we wish to become one of the biggest companies
in food and beverage sector with multiple brand operations in India as well
as abroad." The determination comes from the fact that Indian food sector
has changed its stature over the last decade and Kwality, as a brand, has established
itself as the harbinger in gourmet business.
According to Lamba, restaurant business has grown into a big segment. With the
spending capacity of the middle class families increasing, the approach towards
dining is also going through a sea change in all age groups. This has led to
define and redefine the food business time and again. Lamba says, "The
major opportunities for the quick service restaurants (QSR) sector have multiplied
with various sectors such as the highways, hospitals, malls and food courts
coming to the fore. Even PVR Cinemas just announced the launch of its food courts
recently, justifying that the potential for growth in this sector is sky high."
Development in India
Lamba says "Due to the opportunities created by both, public and private
sector organisations, as well as government initiatives such as property auctions
and development of malls," The growth in hospitality business is happening
very fast and this is one of the key reasons why the food business has grown
so rapidly.
The Indian market has a great potential for QSRs. Lamba feels that metros and
non-metros alike offer great opportunities for standalone restaurants and QSRs.
He says, "Malls, cineplexes, food courts are being developed, success of
which lies in the variety of food offered to the customers." He adds, "There
is immense scope of restaurants in hotels, standalone units, airport outlets,
kiosks, home delivery, etc. even though, our company is concentrating on the
QSR expansion with hospitals and along the highways." He also said that
companies are opting for the management and franchise route as opposed to ownership,
but the Kwality Group has company owned and operated outlets. They wish to venture
into the franchise route in the future, ownership would still remain the first
option for the company.
Kwality group is focusing on the development of the QSR business in Delhi and
NCR region with a plan that the greatest potential lies along the newly developed
highway systems. "With a better road infrastructure, traffic movement is
set to grow at a very fast pace. The tier-two cities also have a great potential
with better infrastructure," says Lamba.
On the horizon
As
tourism is growing and hospitality also develops, international brands have
been attracted to the investment opportunities in the country. Lamba says, "In
the recent past, foreign equity has helped to shape the industry for buyouts,
tie-ups and have actually propelled introspection among the domestic chains
to ramp up their operations in order to face the future challenges from foreign
brands. The inflow of these brands has also given the Indian market more variety
and helped it develop the Indian palate further." Thus, he feels, the competition
has been blessing in disguise for the industry, helping it to develop and innovate
better, whether it is the company's business strategy or the cuisine it offers.
Competition has changed the consumers' preferences and consumers today, are
ready to experiment with food. "Tourism, thereby, can be perceived for
the change in customer behaviour and knowledge, as they are travelling so much
and identifying themselves with opportunities in offer. Consequently, to keep
ourselves aligned with the customer profile, there is a need for constant innovation
and experimentation in our products on offer," explains Lamba.
He says, that in the future, a top-of-the-line restaurant will be identified
by its unique design, experimentation ability, technologically driven business
for sustained growth, out of the box sales and marketing strategies that are
spontaneous and direct. "Another key issue restaurants have to constantly
struggle with is unmatchable customer service and manpower issues, especially
top executives. Restaurants also have to be responsible towards its environment
for being socially acceptable."
With a number of brands coming into the Indian food segment the opportunities
for tie-ups and partnerships are limitless. Lamba observes, "A number of
brands in the Indian market have already started this trend with international
collaborations and selling equity to chains. Thus foreign tie-ups could well
be the future for domestic restaurant brands."
Lamba believes…
The government has contributed a great deal in developing this business by improving
the infrastructure and allowing the future development of the retail segment.
Lamba feels that the government should simplify various regulations for restaurant
operation in order to promote the restaurant business.
About the critical issue this sector is facing, Lamba suggests that finding
and retaining good manpower would be a key strategy for the wholesome growth
of the group and employee stock option plan (ESOP) is one way to tackle that
issue or else we will have to resort to big incentive packages for senior professionals
in the business.
The Kwality group today is operating over 40 restaurant outlets (owned properties),
with multiple brands in the fast food, bakery and confectionery, dining, and
catering business with operations in Delhi, Mumbai, Goa, Baroda and London.
"For company growth, we will establish a multi-brand strategy for each
of the brands and businesses; the company would eventually look at the franchising
options in future. We have lately tied up with leading hospital chains around
India and would look for more. The number of QSRs would continue to grow associating
with malls and highways destinations," concludes Lamba.
India and abroad under the brands of The Village Restaurant Complex, Bread
n More, Kwality Xpress Food Courts, Chopsticks Xpress, Gaylord Restaurant
(London and Mumbai), Kwality Restaurant, Kwality Catering.
Kwality group has the following brands to its credit:
Bread & More-leading home-grown chain of bakery and confectionary,
Kwality Xpress-the leading Indian fast food joint famous for its Channa
Bhatura and Chopsticks Xpress-a leading quick service chain of oriental
cuisine.
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