HOSPITALITY PRODUCT DEVELOPMENT BY PUNAM GARU

PUNAM GARU

MARTICULATION NO : N08015439

AN ASSIGNMENT ON HOSPITALITY PRODUCT DEVELOPMENT

TOPIC : Critically evaluate the changing nature of consumer demand for

restaurant services within India. Base your evaluation upon a type of

restaurant of your choice and illustrate it with appropriate industry examples.

RESTAURANT TYPE : REGIONAL CUISINE THEMED RESTAURANT

COMPILED BY : PUNAM GARU

MATRICULATION NUMBER : 08015439

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CONTENTS PAGE

1) EXECUTIVE SUMMARY – PAGE 3

2) INTRODUCTION – PAGE 4

3) FACTORS INFLUENCING CONSUMER DEMAND – PAGE 5-7

4) THE MEAL EXPERIENCE – PAGE 8

5) FACTORS CONTRIBUTING TO CUSTOMER SATISFACTION- PAGE 9

6) REGIONAL CUISINE THEMED RESTAURANTS – PAGE 10-12

7) CONCLUSION – PAGE 13

8) BIBLIOGRAPHY – PAGE 14

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EXECUTIVE SUMMARY

The assignment is critical evaluation of the changing consumer demand in the

restaurant services in India. Here the restaurant type chosen for critical evaluation is

the regional cuisine themed restaurant which is gaining popularity in the Indian

market. Since India is a country of varied cultures , cuisines and customs, therefore

a wide range of choices are available to the restaurateurs to experiment with this

segment of restaurants. But then this segment also has its own set of advantages

and disadvantages. The factors which influence the consumer demand are culture,

subcultures, convenience, variety, status, impulse and necessity. The meal

experience of the consumer is guided by the consumers physiological needs,

economical needs, psychological needs and convenience factors. Customer

satisfaction depends upon the ambience, facilities, quality, service, customer care,

value ,safety and security of the food and beverage outlet. Hence these factors

collectively influence the consumer demand and is also responsible for any change

or drift in consumer demand.

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INTRODUCTION

The topic chosen for the assignment is the critical evaluation of the changing nature

of consumer demand for restaurant services within India. The evaluation is based

upon the regional cuisine themed restaurants. These restaurants are the most

upcoming type of restaurants in India and are gaining a good footage in the Indian

market. The first half of the report tells about the factors which influence the

consumer demand , the meal experience and factors affecting the quality of the meal

experience and also the factors which contribute towards consumer satisfaction. The

last half of the report talks about the relevant industry examples, which proves the

theory which is discussed before. The report is made by consulting books and

hospitality journals.

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FACTORS INFLUENCING CONSUMER DEMAND

CULTURE

As per Blythe (1997:90) , ‘Culture is a set of beliefs and values that are shared by

most people within a group......it is passed on from one group member to another....it

is learned and is therefore both subjective and arbitrary’. Hence the consumer

demand is profoundly influenced by the cultural beliefs and values. The cultural

values and beliefs are so deeply embedded in the minds of the consumer that

sometimes the choices made by them are unconsciously influenced by culture.

Culture is responsible for the communication and language of the consumer, their

dress and appearance, food and eating habits, time and time consciousness,

relationships formed by them, values and norms, beliefs and attitudes, mental

processes and learning and work habits of the consumer. Moreover culture gives

a sense of self and space to the consumer. Therefore many of these factors affect

the consumer demand of hospitality goods and services. The consumption of

hospitality goods and services is done not only to experience their physiological

benefits but also to express the culture of the consumer through socialising ,

participating in ritual, expressing symbolism, etc.

[Reference : Williams, A.,2002.Understanding The Hospitality Consumer.1st ed.

Burlington. Butterworth- Heinemann]

SUBCULTURES

According to Chrisnall (1995: 123), ‘ A national culture is made up of several sub-

cultures that have their own distinctive characteristics, some of which may be very

different from the total pattern of culture’.

AGE SUBCULTURES5

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Age is a commonly identified subcultural characteristic , though there is enough

debate on the homogeneity of the age groups. The market could be segmented into

particular age groups, who have particular requirement, trend or demand for

hospitality goods and services. These differences have long been recognised by the

hospitality companies and hence they design their goods and services to suit these

age groups.

GEOGRAPHIC SUBCULTURES

Geography as a subculture is not very specific in nature as the designations may be

too large to identify the specific groups, but still the hospitality marketers try to cluster

the consumers as per their designations. It is being believed that people of the same

region share some common interests, needs ,etc, therefore subcultures could be

formed as per the geophaphic segmentation of a region.

RELIGION SUBCULTURE

Religion is a subculture which is very closely associated with tradition and custom

and hence the consumer behaviour could arise from religious beliefs. Religion holds

certain rules and norms which ought to be followed by the consumers to stay in the

society, hence these norms and traditions influence the consumer demand.

ETHINICITY SUBCULTURE

The process in which people use labels to define themselves and others is known as

ethinicity. Ethinicity is an important factor in determining consumer demand as the

consumer behaviour is dependent upon the strength or weakness that consumers

hold in their associations with their ethnic group.

[Reference : Williams, A.,2002.Understanding The Hospitality Consumer.1st ed.

Burlington. Butterworth- Heinemann]

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CONVENIENCE

The hospitality product or service should be convenient enough for consumption.

Inconvenience could form a negative reaction in the minds of the consumer.

VARIETY

There should be enough variety or options available to the consumers to make their

choice, lack of options could create a monotonous environment for the consumers.

STATUS

The consumption of the hospitality product or service should enhance or maintain

the status of the consumer.

IMPULSE

Sometimes an impulse is generated in the minds of the consumer which drives the

consumer to consume the hospitality services or products. Such an impulse may be

created due to many factors like any upcoming trend, social influence, etc.

NECESSITY

Necessity of the hospitality product is a major factor for influencing the consumer

demand. Necessity refers to the basic requirement for the consumption of the

hospitality product, therefore it is a strong factor for influencing consumer demand.

[ Reference : Hospitality Product Development Napier Slide, Lecture 4]

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THE MEAL EXPERIENCE

All food and beverage operations are aimed at achieving consumer satisfaction or

meeting the consumer’s needs. The needs that the consumers would want to satisfy

are:

PHYSIOLOGICAL : physiological needs refer to the bodily/physical requirements of

the guest, e.g. to quench the thirst or the need for special foods (organic, low

calorie).

ECONOMIC : the value for money factor should be present in the meal experience.

The need for good value, rapid, fast service and convenient location is important.

SOCIAL : the place should be bear a good social environment so that social

gatherings are possible.

PSYCHOLOGICAL: the meal experience should offer an enhancement of self-

esteem, fulfilment of life-style needs, variety, etc.

CONVENIENCE: the meal experience must be convenient to enough to have. The

physical impossibility of having the meal experience could hamper the consumer’s

intention of having the meal experience.

[Reference : Lillicrap,D. & Cousins. J,2002. Food and Beverage Service.6th

ed.Hodder and Stoughton Educational : London]

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FACTORS CONTRIBUTING TO CUSTOMER SATISFACTION

AMBIENCE – ambience refers to the environment, decor, hygiene and other soft

elements which enhance the beauty of the place and also affects the psychological

needs of the consumer.

FACILITIES – the facilities which are offered at the food and beverage outlet also

contribute to the customer satisfaction.

QUALITY- the service quality or food quality is a major factor for customer

satisfaction. The quality or standard of the food and beverage outlet enhances the

customer satisfaction and makes a status statement for the customer.

SERVICE – however good the food may be but unless it is served in a proper

manner customer satisfaction can never be attained. Therefore the service quality

plays a vital role in customer satisfaction.

CUSTOMER CARE- customer care or giving the required attention to the customer

is important for customer satisfaction.

VALUE- the value for money factor is very important in satisfying the customer. The

customer should not feel cheated, therefore the standards of the outlet should be

such maintained that it returns the customer the value of the money he/she paid.

SAFETY- the food and beverage outlet should provide a safe environment to its

customers so that they can enjoy their meal experience without any fear or stress

SECURITY- proper security arrangements are a necessity in a food and beverage

outlet to provide the customers a satisfactory meal experience.

[ Reference : Hospitality Product Development Napier Slide, Lecture 4]

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REGIONAL CUISINE THEMED RESTAURANTS

Regional cuisine restaurants have always existed in India in different shapes, sizes

and formats and have always strived to bring a Taste Of India to the people of other

cultures and to the true gourmands who wishes to experiment with the diverse tastes

that comprises India.

A number of small, standalone single-cuisine restaurants are spread all over India

that are trying to make a mark for themselves with quality and authentic regional

dishes. According to Dr Suhas Awchat, the owner of three regional cuisine

restaurants – Goa Portugesa, Diva Maharashtracha and Culture Curry, most

consumers today are biased about a particular region’s cuisine and they think that

the entire cuisine comprises of only two or three dishes. Therefore regional cuisine

restaurants help in removing myths and a variety of dishes from the particular region

gets introduced.

According to Vivek Bhanushali , the General Manager of Chetana restaurant in

Mumbai which is reputed for its Gujrati and Rajasthani cuisine, people mostly think

that Maharashtrian food is limited to jhunka bhakar and vada pav, which are the

most popular Maharashtrian dishes. Therefore the Maharashtrian Thali was

introduced in Chetana Restaurant to give the consumers a feel of an authentic

Maharashtrian meal. Restaurants like Kandahar that serves North Indian cuisine

at Oberoi Hotels and Resorts in Mumbai, Vindhyas which serves South Indian

food at The Orchid hotel in Mumbai, etc all promote regional culture through food.

But according to Anuj Gupta of Samrat Restaurant that offers Gujrati and

Punjabi cuisines , the concept of standalone restaurants offering just a single

cuisine is just not feasible. And moreover consumers today look for options when

they go out to eat. But single- cuisine restaurants can be afforded by star hotels

as the clientele visiting these hotels demand authenticity and they also posses the

purchasing power.

According to Meldan D’Cunha the owner of Soul Fry chain of restaurants

famous for its Konkan Coastal cuisine in Mumbai, people have the enthusiasm to 10

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try out new cuisines and they come from near and far to try it , but this enthusiasm

fades away eventually and then the restaurant will have to sustain itself to hold

on to the taste and demand of its clientele and its then when the issue of

authenticity arises.

According to Kamlesh Barot while doing research for the Rajdhani chain of

restaurants that specialises in Rajasthani cuisine, an exclusive tour of Rajasthan

was made to collect recipes , observe culture and finally bring down the chefs

from the region to train the other chefs of the restaurant and prepare authentic

food.

According to Vishwas Sarpotdar, manager of Vividh restaurant which specialises

in North West Frontier cuisine, menu selection is equally important and even

when it concerns the cuisine of the North West Frontier Province , there are subtle

differences that exists in the cuisine from various areas of that province. It is a

challenge to decide which recipes will be more liked by the people.

Another way of making authentic food is to use the right equipment for the

preparation of the dishes. As per Naveen Bakhru, manager of Rice Boat

restaurant which specialises in Kerala cuisine, the authenticity in the operations of

the restaurant is maintained by the special equipment procured that is traditionally

used in the region. A thorough research was done in Mumbai before the opening of

Rice Boat restaurant , and it was seen that apart from a few food festivals in five-star

hotels there was no other single restaurant in Mumbai which specialises in Kerala

cuisine. Hence the concept of opening Rice Boat was thought about as a large

number of keralites resides in Mumbai.

But as per Virji Safiya, the food and beverage manager of Dum Pukht and

Bukhara at ITC Maurya in Delhi, the consumers of the restaurant are not region-

specific as a little bit of all the cuisines is embraced by even regional cuisines. And

Indian food is like music which is universal and is even popular among the foreign

guests.

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Traditional service and the apt ambience in which the food is being served , along

with the quality of food prepared by the speciality chefs from the region , all

complement to the popularity of the restaurant. Therefore just having the right

equipment and crockery with perfect interiors and ambience is not enough.

Speciality restaurants also require well-trained staff who are well versed with the

menu and traditional serving techniques and are traditionally dressed. The manager

or chef at the Chetana restaurant goes personally to individual tables and gives a

brief summary of the dishes served in the restaurant, which can otherwise be found

in the menu. Therefore regional cuisine restaurants require specialised kitchen ,

authentic ingredients , speciality chefs, traditional décor and well trained

sevice employees.

The past few years have seen a boom in the regional cuisine restaurants , as these

restaurants have started springing up all over the country and the already existing

restaurants have undergone changes to keep pace with the changing consumer

demand. It has been realised by the hoteliers that offering a single cuisine where

authenticity is promised is much better than offering multiple cuisines under a single

roof, where the degree of authenticity is questionable and the taste is mediocre.

Another probable reason for the increasing popularity of the regional cuisine

restaurants is that these dishes at quite tough to prepare at home due to the

unavailability of authentic raw ingredients in the local market and is also time

consuming.

[Reference : Anon,2008.Tastes Of India. Express Hospitality, Dec 1-15, Pg 19-21]

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CONCLUSION

Therefore the above report discusses about the factors which influence the

consumer behaviour such as culture, sub cultures such as age subcultures, religion

subculture, geographical subculture, ethinicity subcultures, convenience, variety,

status, impulse and necessity. These factors are responsible for the consumer

behaviour and their needs and demands. Nextly comes the Meal Experience , which

defines the wants of a consumer from a particular food and beverage outlet. These

wants or requirements are categorised as physiological, economical, psychological

and convenience. Factors such as ambience, facilities, quality, service, customer

care, value, safety and security are responsible for consumer satisfaction. Hence it

seen that all these factors directly or indirectly affect the consumer demand. After

this the real industry situation is focussed upon. It is seen that regional cuisine

restaurant chains are coming up and consumers are preferring single or speciality

cuisine restaurants rather than multicuisine restaurants because the present

consumer is more focussed on the authenticity , taste, variety and quality of the food

and service rather than just having a meal. It is also observed that since these

speciality cuisines are tough to prepare at home due to unavailability of proper raw

material and skill, therefore consumers demand such kind of regional cuisine

restaurants. Such is the demand for these restaurants that when a new regional

cuisine restaurant is set up people travel from far and wide to experience the food

and service of the restaurant , but again this phase is just temporary and once this

enthusiasm of the consumers is over, the restaurant will have to strive continuosly to

hold on its clientele. But then according to some people, it is difficult to have a

standalone restaurant serving only a single cuisine , but as seen again a lot of

variety can be brought out and a lot more experimentation can be done with these

regional cuisine restaurants so as to always offer something new to the consumers.

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BIBLIOGRAPHY

1) Anon,2008.Tastes Of India. Express Hospitality, Dec 1-15, Pg 19-21.

2) Lillicrap,D. & Cousins. J,2002. Food and Beverage Service.6th ed.Hodder and

Stoughton Educational : London.

3) Napier CD ROM.

4) Williams, A.,2002.Understanding The Hospitality Consumer.1st ed. Burlington.

Butterworth- Heinemann.

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HOSPITALITY PRODUCT DEVELOPMENT BY PUNAM GARU