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Strategies For Expansion

The document provides guidance on choosing the best location for a restaurant. It discusses that location is one of the most important factors influencing a restaurant's success. The document then lists various factors to consider when selecting a location, including visibility, parking availability, space size, crime rates, surrounding competition, accessibility, zoning laws, foot and car traffic, prior business turnover at the location, complementary nearby businesses, and whether to set up individually or as part of a collective venue. It also discusses how the type of cuisine and target audience should guide the appropriate location choice for different types of restaurants like quick service restaurants.

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Chirag Bagga
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0% found this document useful (0 votes)
137 views8 pages

Strategies For Expansion

The document provides guidance on choosing the best location for a restaurant. It discusses that location is one of the most important factors influencing a restaurant's success. The document then lists various factors to consider when selecting a location, including visibility, parking availability, space size, crime rates, surrounding competition, accessibility, zoning laws, foot and car traffic, prior business turnover at the location, complementary nearby businesses, and whether to set up individually or as part of a collective venue. It also discusses how the type of cuisine and target audience should guide the appropriate location choice for different types of restaurants like quick service restaurants.

Uploaded by

Chirag Bagga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

Strategies for Expansion-

The 3As Strategy

The chief components influencing rivalry in the espresso retail area include evaluating,


item/administration quality, brand recognition, taste, and item assortment.

To separate itself from rivalry, one has to manufactured its retail procedure on 3As:

Affordability — ensures that it attracts every kind of customer — be it a school/college


student or an office goer, at an affordable price.

Accessibility — The goal of the brand was to ensure that the cafes should be within arm's
reach. It believes in serving people across the country by providing the same experience
everywhere.

Acceptability —  ensures that consumers should buy and drink their product without
compromising on taste. The strategy was to bring people together to relax and unwind. The
company further encouraged its customers with its catchy tagline that says "Let us catch up
on CCD" that every Indian must have heard at one point or another.

Choosing The Best Location For Your Restaurant!

i) Why Is Location Important?

Choosing a restaurant location is one of the core driving factors of a restaurant.


Metropolitan cities like Delhi and Mumbai see a forever rise in their population curve,
which points towards lack of space available, or the lack of that perfect space for your
restaurant. Preparing everything beforehand and getting all the licenses and rent before
time would help you to have options among different locations. The better your restaurant
location is, the more profits are bound to flow in. 

ii) What Are The Factors To Consider When Choosing A Restaurant Location? 

A restaurant needs to be at a place with a higher footfall, and places where your target
audience visits frequently. Different kinds of restaurants have different needs in terms of
space, visibility and target audience. So here are some common factors for different kinds
of restaurants to look for while choosing the perfect place. 
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

a) Visibility: 
The first and foremost factor that you should consider should be the visibility of your dream
place. Your restaurant’s place needs to be compliant with your theme. You must also
understand what kind of people are walking in and will those pedestrians be willing to stop
by your restaurant. A little bit of research is needed on which part of the day brings you the
most traffic. Once you figure that out, you’re all set to launch your rocket!

b) Parking
Whether you’re planning to open a fine dining restaurant or a Quick Service Restaurant,
you must make sure that there is enough place to park near your place. Parking problems
generally lead to loss of potential customers, and eventually a big loss to your business. 

c) Space-Size
A larger space size might not be your lookout when you consider space for your restaurant,
but an appropriate space. According to statistics, there is a need for five square feet of
kitchen space for each table that you decide to put in your restaurant. This space lets your
chef work in a calm manner, and also avoid accidents while slipping, trimming or messing
around.

d) Crime Rate 
You can’t get rid of crime when you talk about Delhi. It’s always important to include all the
risk factors that might hamper your business. Considering the crime rate, there needs to be
a strict provision in your head of what kind of traffic you want to target. Casual dine,
restrobars and fine dining are mostly affected by this factor. 

e) Surrounding Competition analysis


As a restaurant owner, you must choose your perfect location on the basis of the
surrounding competition. The already established competitors drive the market already,
which needs to be changed by your new place. So you must set the place accordingly. 

f) Your Cuisine: 
Once you decide on the theme of your restaurant, you must quickly skip to the cuisine and
menu engineering. Your cuisine will tell you a lot about the most suited place for your
restaurant. “Cuisine should be your primary concern while choosing a location for your
restaurant,” adds Luv Khosla, a restaurant consultant from Champ Foods, Delhi, “Mostly
because the crowd in different areas of Delhi have a dramatically different taste”. 
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

Finalizing your cuisine also involves choosing whether or not you want to include non-
vegetarian food into it. There are markets like that of Prashant Vihar in Rohini that are
explicitly available for vegetarian cuisine. Apart from that, some areas of North Delhi are
also popular for vegetarians because of the population living around. 

A north-Indian/Punjabi cuisine works most in areas like Rajouri Garden and Punjabi Bagh.
You can’t expect to flourish with an Italian menu there. A breakfast place would be best
suited in either Gurgaon, Lodhi Road or even Majnu ka Tila, so on and so forth.

g) Accessibility:
Accessibility is a crucial step while choosing a restaurant location. Other restaurants that
are more accessible but have an inferior quality of food and other services might turn out
to perform better than yours. 

A well-established market like Rajouri Garden has restaurants working extremely well
whereas restaurants shutting down every six months. This is major because the inner
market of Rajouri Garden is not as accessible as the main road market. This is why Rajouri is
a really tricky market to be in.

h) Safety
According to reports from OSHA, nearly 40% of the accidental deaths in the restaurant
industry happens due to falling. Other possible reasons could include fire, struck by object
or electricity. 

As a restaurant owner, you must make sure that all the safety measures are in place, like
the installation of a slip-free floor and proper precautions for a fire or electricity
breakdown, keeping the safety of its employees as its first priority. 

i) Popularity /Market Research


Complete market research will help you to know about the popularity of the place among
different kinds of customers. This will also indicate your future endeavors and scope of
growth in that area. For example, a fine dining restaurant like Themis Barbeque might work
best in an area like NSP, than that of Kamla Nagar, due to the lack of intent for dining out in
people frequenting Kamla Nagar market. 

Researching a market space is more than knowing what kinds of customers come there. It is
to make sure what your target audience should be, what they wear, what their tastes are,
what their music choices are and all of that. 
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

j) A Unique Selling Point:


Choosing a restaurant location according to your theme is one thing, and still having that
unique selling point is another. You must ensure that everything from your design to your
menu to your interiors and the quality of your food helps you to stand out even among a lot
of competitors

k) Marketing:
How you market your restaurant should be one of your major concerns. When you pick up
a restaurant location, you must also take note of the factors that affect the marketing
strategies of your restaurant in that area. From formalizing your brand to targeting the right
audience, you would need. 

l) Room for Growth:


You must choose a location that has a constant room for growth. This is an important factor
as, after a while, there comes a saturation phase for a restaurant after which it only
declines. 

m. Check Zoning Laws


Zoning laws dictate what can be done with real estate in a particular place. In some areas,
they allow restaurants to be built but limit the kinds of food served, like alcohol. Therefore,
before committing to a site, you should consider the area’s zoning laws and other permits.

n. Consider Foot and Car Traffic


Cars or people walking by should be able to view your restaurant – this helps them make a
split-second decision to dine in. The more people who walk by your restaurant, the more
likely it is that they will come in. A signboard that stands out or an area for car parking is
also an advantage. This could also help you opt for strategies such as letting the scent of the
food waft outside the restaurant to engage more and more people. 

p. Study Space Turnover


Don’t take a chance on a retail property where many other companies have attempted and
failed. Even though the places might seem great to start a restaurant, there’s a reason why
others have failed before. If you’re considering moving to an area you don’t know much
about, study it for a few months to identify turnover (how many people move in and out).
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

q. Look for Complementary Businesses


While you might want to avoid direct competition, certain local businesses may direct
customers towards your restaurant. For instance, a coffee shop close to a corporate office
or a juice shop next to a gym would experience strong sales. On the other hand, positioning
yourself next to different sorts of eateries, such as a pizza shop next to a burger business,
will diversify your audience.

r. Consider Setting up Shop at a Collective Venue


Being an independent business has benefits like visibility, but joining a collective venue like
a food truck park gives you access to more customers. This strategic placement will draw a
crowd of customers visiting other establishments in the area to your company. Additionally,
all businesses could mutually profit from the exposure to each other’s customer base.

 How Do You Choose The Most Appropriate Location For Different Types Of Restaurants? 

Different restaurants demand different kinds of audiences and therefore it is important to


know the right location or ’hotspot’ for your kind of restaurant. Five kinds of restaurants
are mentioned here with their respective hotspots. 

a) Quick Service Restaurant 


A Quick Service Restaurant needs to be around universities or schools where they are able
to meet the right kind of audience. Since people come to Delhi from all over the country for
their studies and other purposes, they need places like these to take care of their hunger
pans and also are pocket-friendly.

Places like North Campus, GTB Nagar,  Kamla Nagar, Netaji Subhash Place and places
surrounding these areas are well-established teenage-spots, which is why they are
popularly the best location for fast food restaurants. People with vegetarian as their
specialty cuisine should choose areas from North Delhi. 

Accessibility and popularity is one aspect which you won’t have to worry about here. Along
with that, there is ample room for growth here. Whereas, the downside of choosing these
places is that you will have to face a lot of competition. 

Other places like Greater Kailash, South Campus, and Khan Market work for all kinds of
restaurants as there is a lot of corporate crowd for your visibility. Another advantageous
aspect would be the popularity aspect that you gain there. 
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

Some university students might also be attracted once you have a name in the market. All
said and done, you need to focus on the quality of your menu and place, to stand out from
your competitors. 

b) Casual-Dining Restaurant 
There is a mixed population in Delhi, which means there are people from villages, students
and families. To consider a casual dining place, you need to either focus well-established
malls or markets near households as walk-in traffic is one of the major sources of revenue
for them. 

A few of my suggestions would be the Khan Market, where you can expect a lot of families.
It is a safe area for families, with a minimal crime rate, you’d get enough space for your
restaurant and also would be able to grow more. The property costing here would vary
from Rs. 600-800 per square feet.

On the other hand, places like Greater Kailash part1 and Epicuria Mall in Nehru Place,
where you can expect a rental costing of about Rs. 300-500 per square feet. There are a lot
of families expected here, and there are no issues related to parking. 

For vegetarian cuisine, Prashant Vihar in Rohini is one of the hotshot markets for casual
dines. In fact, they would not allow non-vegetarian restaurants a space in the market.
Whereas Indian and Chinese cuisine would mostly work in Janakpuri but would be priced a
little on the lower side. 

CP is the central part of Delhi, and thereby attracts a lot of traffic. Marketing will be a


cakewalk for a restaurant in CP, as there are spaces for advertisements and the word of
mouth being an extensive strategy. The best part about choosing a restaurant here is
the accessibility from all over Delhi. You’d find people from Gurgaon and those of Noida
hanging out in CP. Renting a place here would cost you a little extra but there would be an
altogether profit of about 4 times. Having the right technology to streamline operations and
handle higher footfall in these restaurants becomes crucial. 

Some areas of Rohini including Sector 7, Sector 9 and around M2K market could be a nice
place for casual dining. You can expect a lot of family crowd as there are a lot of societies
around.  

You could also try Hudson Lane in North Delhi to be your ideal restaurant location as it is
quite famous among families and teenagers. Being near to household areas, walk-in traffic
would be the best way to make a profit here. You would have to loosen your pockets a little
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

here and can expect a rent of about 300-500 per square feet. Also, beware of the
competition! 

c) Fine Dining Restaurant


A fine dining restaurant is best suited in areas where there are people who have a better
paying capacity and want to live a higher standard of living. There are many such areas in
South Delhi including Greater Kailash, Lodhi Road and Khan Market where the property
rate might be a little high but the profits are equivalently higher. Other important
advantages of getting a place here are safety, minimal parking issues and adequate space. 

Since it is a well-known fact that South Delhi has posh traffic, it would be a wiser decision to
invest in those markets if it fits your pocket. Other than those, Connaught Place being the
hub for all foodies, you must consider getting a space there. The best fine-dine places
presently are all in CP, due to accessibility, popularity, room for growth and marketing
perspectives. 

A very few areas in Dwarka have some Fine Dine restaurants in Delhi. It is mostly a
residential area and the rental costings are touching the sky, due to which not all
restaurants survive. The delivery market overpowers other kinds of restaurants in and
around this area. 

Since investments are one major issue, you could think of Indirapuram and Noida as your
go-to places for a fine dining restaurant. 

d) Restrobar
A restrobar is a major attraction for office going crowd and younger generation. There is
often loud music and a vibe unmatching that of a family. The hotspots for resto-bars in
Delhi are CP and Punjabi Bagh. There is regular traffic along with it being the highest on
weekends. Some of these places don’t have parking facilities as they promote no driving
after drinking, which is ideal. 

Along with these Sector 29, Gurgaon is also gaining popularity among youngsters. Apart
from extensive crowd, you can also expect competition, and space issues. The major issues
here would be getting all your licenses in place, there are about 20-25 licenses that you
need to put in order before you serve your first pint! 

The main market of Rajouri Garden is completely famous for Restrobars, but you will
mostly find a family crowd in there. This is why you must choose this place in case you’re
bringing in your non-vegetarian and the place has a theme focusing on families. 
KPMG TEAM PROJECT AND PEER ACTIVITY POINTERS

e) Food Truck
Food trucks are generally accepted well enough where people are ready to experiment with
newer cuisines and aren’t pocket sensitive. This is why Gurgaon, which is the corporate hub
of Delhi NCR sees more food trucks than any other part of Delhi. 

A couple of areas in Gurgaon, especially Sector 29 should be your ideal space for that.
However, the newer food trucks in Sector 29 are losing their charm. We would suggest that
you try other areas from Gurugram, like the Golf Course Road, Sohna Road, Sector 60,
Sector 61 and a lot more around these markets 

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