Saturday, November 30, 2013

Indian Hospitality Industry 3



Fast Food Scene in Indian Hemisphere


The chronology of Indian fast food scene takes us back to early 70’s, when we saw Narula’s launch the first American style fast-food outlet in Delhi. They were “The First” to introduce Burgers and Pizza’s in India. This was followed by Vijay Mallya’s UB Group launching pizza chain McDowell’s Pizza King in early 80’s. Then came Wimpy’s the British fast-food chain in late 80’s. McDowell’s Pizza Kings closure in 1987 gave few lean years to the industry and then came Dominos Pizza, followed by Pizza-Hut. Finally McDonald made a grand entry in late 90’s. The turn of the century (21st century) saw brands like Barista, Costa Café, Pizza Land and finally Starbuck and Dunkin Dounuts. Keeping in view that three decades have passed. I thought, it would be a good idea to look into and study success and failures of the fast food industry in India and also evaluate what has been happening to Indian fast food Industry.

Global Hospitality Consultants conducted an exhaustive study of each product and brand and discovered some startling facts which are being presented before my readers. 

American Fast Food

1.Nirula’s Restaurants chain: Nirula’s Restaurant chain was started by two senior Nirula brothers in 50’s and they opened some rather exciting Restaurants like La Boheme, Gufa, Chinese Room and Nirula’s Bakery. They were very innovative in their concepts compared to competition at that time and were considered one of the best brands in 70’s and early 70’s. Both the brothers had a son each, the sons were sent abroad to study. Older one, Lalit Narula came back to India in mid 70’s and opened an Indian fast-food chain in Connaught-place, serving Mutton-Chops & Omelets with Hash browns and Dosas. They did exceedingly well. In late seventies they opened the Americanized fast-food, serving Burgers and Pizzas. The product compared to their international counter-parts was quite sub-standard but having no competition they ruled over Delhi for decades. When the younger brother Deepak Nirula came back to India, (after graduating from Cornell University) and he started Ice-Cream Parlors with twenty odd flavors of ice-cream. India had never seen anything like that before. People went crazy. 15’ X 20’ feet ice-cream parlor in Connaught-place used to earn more revenue than all their other brands put together. They also opened an up-market restaurant called Potpourri serving café food with Salad Bar, first time in India. Those years Nirula’s had Midas-touch, what-ever they touched become success. They expanded to over 35-40 outlets and finally sold their business to a Singapore fund. Today, unfortunately Nirula’s is in a pathetic state and we would not be surprised if we might see those closing operations by 2015. Present owners are looking at various option to exit including selling the chain.


2.Mac-Dowell’s Pizza King: In mid 80’s, Vijay Malya, owner of McDowell & Company decided to launch a Fast-Food chain called McDowell’s Pizza King. They were the first Professionally Managed Fast-Food chain serving three sizes of pizzas with two types of base - thin and thick. Along with that they were the first one to cameup with Grilled Sandwiches and Salad Bar in each restaurant. McDowell’s Pizza King was headed by Mr. Kisan Mehta, President U.B. Group; the waves “Pizza King” created in the food industry have never been matched before or after. Their flagship restaurant in Connaught Place opened to a mile long queue. India Today wanted to do a cover story on us and international magazines like Times and Newsweek wrote about Pizza revolution coming to India. All in all they opened 12-15 outlets in Delhi and Mumbai. Unfortunately Pizza King’s waterloo came with a) Launch of Mumbai’s Operation b)Vijay Malya’s UB group getting into financial mess with Indian Government

     Mumbai Fast-Food market was very confusing. But Mr. Mallya forced us to open Restaurants in Mumbai without conducting marketing study as he believed that Mumbai market would be twice the size of Delhi market and that was the biggest blunder for us and chain’s undoing. Pizza King’s biggest competition in Mumbai was a Dabba-Wala. While weekends were sold-out in most of the restaurants but weekdays were very low. As all the Restaurants were franchised and that led to total chaos and disaster.None of the outlets were able to recover (very high) Rent. Mumbai collapse also led Delhi operation in major financial crunch. Finally in 1987 McDowell’s Pizza King closed their doors to the market. This was an abrupt and  unceremonious end to the most successful fast-food chain, ever, in the country. When Mac-Dowell’s Pizza King opened in Delhi total Pizza market was worth Rs. 17/18,000 per day. When they closed after three years Pizza King alone sold more than 150/160,000 worth of Pizzas every day- a growth of over 100% every year. I feel they were way ahead to their time.


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3.Wimpy’s: A famous Burger chain from England made an entry in India some time in 1985. Their product was reasonably good and in first few years they were quite successful too. Unfortunately chain’s back-up organization miserably failed and they started losing one restaurant after another. Although Wimpy’s still exists in Delhi but is not the Wimpy’s which came to India but a very poor product? Rather sad end to my favorite Burger chain from England.


4.Domino’s Pizza: Next chain to come to India was Domino’s Pizza in 1996, most successful American Pizza delivery chain. After the closer of McDowell’s Pizza King a big gap was there between demand and supply of Pizza in the market and this Delivery concept Chain fill the gap created by closure of McDowell’s Pizza King. Domino’s delivery of Pizza in 30 minutes was instant hit. Their Pizza products were average but they have the best delivery system in the world. They have been growing since then and today have over 100 outlets in Delhi alone. They became envy of most of the restaurants because they were able to provide pizza to client from not a very expensive location and that too in just 30 minutes. Although today nearly all Pizza Restaurants are providing Home Delivery but Domino Pizza remains king of Pizza Delivery.

                                                               
5.Pizza Hut: Pepsi’s one important arm is Yum Brand Inc. owner of Pizza Hut restaurants world-wide, a Pepsi product. They launched their first Pizza Hut in India on June 1996 with first outlet in Bangalore. Today they have over 170 Restaurants and more the 11 take away outlets. Pizza is a meal close to majority of the middle class Indians food needs providing them large quantity of Carbohydrates (Pizza base), Sauce (tomato), vegetables and protein (cheese and assorted meats). All Indians are very comfortable eating Pizzas because they feel that this is closest to what they eat. I remember when I opening Milkfood Fast Food in Amritsar our largest Desi Ghee Dealer from Amritsar complimented me in front of his Boss saying that Roti with tomato sauce and cheese (Pizza) was very tasty.


Pizza Hut, when they came in, brought American Menu, along with Pizzas they had Salad Bars and Sandwiches, In all their restaurants, although the product was way below the American standards but still we saw a lot of rush and an up market clientele was always waiting outside the Restaurants. That was the height of success that Pizza Hut achieved. In late 2000 onwards, slowly people realized that the Pizza Hut was as expensive as eating in a good restaurant or coffee shop and quality of some of their products like Soup and Salad Bar were way below, seems Pizza Hut also realized that and they stopped having Salad Bars in their Restaurants. Today Pizza Hut has a large number of successful restaurants all over India. They also have quite a profitable delivery system but unfortunately as far as the Pizzas go they are as good or as bad as the Domino’s. My final verdict is, with people becoming aware of Gourmet Pizzas. Pizza Hut is losing the market although they are still doing well commercially but instead of the up market all knowing clientele they now have people who don’t know any better.

6.KFC (Kentucky Fried Chicken): Pepsi’s second fast-food restaurant chain in India is KFC, which was launched in Bangalore in 1995 followed-up with an outlet in Friends Colony, Delhi. Both the restaurants to start with were quite successful and even the product was well received but unfortunately they got themselves into a lot of negative publicity because of health factor. They were blamed for  adding Monosodium glutamate(MSG) more than prescribed limit to make Chicken more tasty and they were frying chicken in pork fat. Unfortunately, due to these reasons, they closed both outlets.KFC was again re launched in 1999 in Bangalore, but they opened Delhi outlet much later in  Rajouri Garden, which has a very large population of Punjabi community great lovers of chicken. Today they have over 280 outlets in India. Unfortunately to survive in India, KFC the Chicken people survive not by selling fried chicken or even chicken Burger but their over sixty five percent revenue comes from vegetarian food, beverages and desserts, not their core competence.


     7. McDonald's, Family Restaurants(!): For every Fast Food Fanatic McDonald's is the God
of modern fast-food. Fact is they are responsible for elevating quality of fast food to the level of excellence. Ray Kroc founder of McDonald's was a man of great vision and it is because of his principles and value, even today, after 40 years of operations and hundreds of newer successful concepts McDonald's is still No.1.


              Like Yum Foods, McDonald's also launched their first outlet in 1996 in Vasant Vihar.


They followed with outlets in Greater Kailash, Green Park, Connaught Palace in Delhi and similarly opened McDonald’s in Mumbai. Today all together McDonald’s has over 1500 outlets in India. Today even in India they are the largest fast-food chain serving chicken and vegetable Burgers& Wraps in different combinations. Unfortunately in last 27 years of operation in India, I notice that they went away from basic principles and the values on which Ray Kroc build McDonald as the best fast-food chain in the world. In India to save money local franchises created sub-suppliers picked-up inferior quality product and the most alarming was compromise on hygienic and quality standards. The most alarming decision was to start home delivery service in India of Burger which has a safe eatable life of 10 minutes (McDonald's quality specification) and delivering to customer in 30 minutes. Thus by their own standards compromising on the health and safety of their customer (kindly read my blog dated 29th June 2010- Dream Gone Sour). My personal feeling is that, McDonald’s is well aware of what is going on in India, but refuses to interfere because they do not have the required freedom to function. Today with liberalization in economy; they have taken charge of the operation. I really hope they will try to rectify all what is wrong in McDonald’s India.


Another point to note that MacDonald’s core competency product has been Burgers, Chicken and meat but ironically enough in India they are surviving on sale of Softy ice creams & Sundays and Aaloo-Tikki Burger, which constitute up to 70% of their revenue.


8.Dunkin Donuts: Fast Foods latest concept in India called Dunkin Donuts. They were introduced last year by Bharti Industries, owner of Dominos India. After the success of Domino’s Pizza, the company has launched Dunkin Donuts, in the Indian market. They serve

variety of donuts made in their central kitchen. They have no outlet where fresh donuts are prepared and served. Automatically this is the reason for their donuts not. Selling so well, because of which they are surviving on the sale of Sandwiches and newly launched sub-standard Burgers. Its an interesting paradox, to see the Dunkin Donuts publicity and marketing collaterals having photographs of all kinds of foods except Donuts. Today they have 16 outlets. My prediction is they will only survive if some miracle happens, otherwise we expect them to fade away into the blue like many other brands.

There are other smaller fast-food outlets like Papa Jones Pizza, Pizza Express, and Pizza corner, Café Coffee Day, Barista and Costa. Some of them have done well but most of them are still struggling to survive. Reason being the Indian eating trends. Most of the international chains go out of the way to changes in their core competence by trying to adapt to Indian taste and flavors. How will it work? A large part of our huge middle class has travelled abroad and has tasted the original and loved it. So we all look for the taste we had in USA, Europe, Middle-east or South-east Asia. If they want an Indian fast-food, thus would prefer to go to Indian fast-food restaurant .At no stage will I try to find the taste or flavor of Chana-Bathura or Tandoori Chicken in a Burger or a Pizza joint.

Indian Fast-food in Delhi and Northern India

  Today Indian Fast Food is doing extremely well. In north Chana-Bathura and Chaat, in Mumbai Pao-Bhaji and Vada-Pao and south Indian food all over India. In Delhi, today there are three major Indian fast-food players; between them they control 65-70% of fast-food market. For decades, all Halwai shops also have been serving food along with Indian sweets, Chana-bhatura, Samosa and Chat has become essential part of our everyday snack. In early 80’s, most of these shops had small sitting area of 3-4 tables where they served Indian snacks, soft-drinks etc. for the people who came to buy Indian sweets. The real change came after the closure of Pizza King between 1987 to 1994-95, because the vacuum created by the closure of large fast food chains (except Narula’s) forced people to look for never pasture and renovated Halwai Shops with larger food choice attracted masses to visit sweet shops in large numbers. Stores like Haldiram, Bengali Sweets Shop, and Nathu’s Sweets, all started acquiring more and larger shops next to them and started to increase the menu items. First genuinely successful Indian fast-food, was in Friends Colony by the name ‘Nathu’s Sweets’ where only 1/4th space was given to the sweets and the remaining to cafeteria style sitting followed by Haldiram, Bengali Sweets Shop and Evergreen Sweets House. Today after nearly 26-27 years, there are four invincible leaders.


1.Haldiram: Haldiram, even today is most professionally managed sweets shop and restaurant. There first successful venture as self service restaurant was in their central kitchen at Faridabad Road followed by Ring Road, Lajpat Nagar and subsequently a very large Central Kitchen and Restaurant on NH-8,Gurgaon. By this time they got into a mode of standardizing the product and working as a very successful system in all there outlets. Today they have over 22 large restaurants in Delhi-NCR serving 40 t0 50 thousand everyday and by an estimate their             profitability would be the highest in the city.

 2.Bikaner: Bikaner Sweets Shop and Restaurant although started little late, they had franchised their name extensively but the first successful venture as a professional Restaurant opening in sector-29, Gurgaon. Where they had created Restaurant-cum-Banquet-cum-Sweets Shop in nearly 20,000 square feet area. Their menu is very similar to Haldiram. Their service style, method, system and procedures are 100% copy of Haldiram. Today they are the second largest player for opening at least one of outlets every year. Bikaner like their better half has over 22 outlets in NCR.   


     3.Evergreen Sweets House: This sweet shop was opened by four brothers who worked hands on to start with and by early 70’s established themselves as one of the best Halwai’s shops in the country. Remembering their success in 70’s, I remember at Diwali they took-over Green Park market area supplying sweets to most of the middle class in South Delhi and even today they are rated one of the top Sweet Shops. As for the food from the very start, every day they used 30-35 covers in a sweet shop serving food like Chana-bhatura and Chaat. They got in touch with us in 2003, as they had taken-over a shop next to their old shop and wanted to open a shop similar to Haldiram and Bikaner and wanted my help to design and start the place. We (Mr. Shyam Chopra and Myself) discussed the weaknesses and strengths of existing Indian fast-food chain and designed a model unique, yet very appreciated. One of the biggest weaknesses in most of existing fast-food chains was their self-service system. Guest going with his family had to stand in queue to select what they wanted to eat while the family sat occupying the table so that nobody else would take it away. After cutting the bill the man went to various counters as per his order and would place the order. Then would wait for his order to get ready and bring the food to the table and then they all ate the food. On an average such a table took minimum of45 minutes of occupancy. In Evergreen, we decided to have waiter service and captains to receive the guest, make them comfortable, take their order and start serving the food immediately. By doing so, we converted Evergreen into the most comfortable, convenient and reasonably priced restaurant in the country. We were reducing the time of table occupation at a time by half at peak hours. This concept has worked so well that their ownership has themselves confirm that today their business is much more profitable than sweets business. Their menu not only includes Pasta and Pizza but also Chinese and Dim sum. I personally feel that these concepts are so strong and in future we will see many more such restaurants doing successful business

4.Sagar (Ratna) Restaurant

 In 1986 after leaving Mcdowel Pizza King, I took upjob as GM Centaur Srinager. After three/ four months I visited my home town ,Defence colony  NewDelhi and came to know about a newrestaurantin Def Col market serving amazing Dosas.I liked the product so much that I wanted to meet the owner of the restaurant. After praising his product, I offered him a place in my Hotel to openSagar in Srinagar. He was very excited and agreed. After six months when I came back to Delhi to sign him, he just looked through me. His world had changed, there was a queue of between 50 to 100 people waiting to get into that small place. Within days he bought over first and second floor of his shop plus first and second floor of next shop. Rest was history. He became most sort after concept in Delhi. Very soon from one outlet today his company own nearly 70 Restaurant, before he sold 75% equity to a new York base fund. Unfortunately, today quality of food has gone down and menu prices have gone up. I feel Sagar is going Narula’s way.

Conclusion

Final evaluation clearly shows that nearly most of the International fast food operators didn’t have it easy in India. Worldwide quality, recipes, service standards and reputation has been compromised at all levels. MacDonald is surviving by selling softy ice-cream and aloo tikki Burger, delivering products with a edible shelf life of ten minutes, after half an hour. Evidently the hygiene standards have been compromised by all international restaurant chains. Pizza Hut which boasts of high quality International Pizzas are trying to compete with Domino in quality and most of the time losing to them. KFC sell everything but their main product. Dunkin Donut sell more sandwiches and burgers then Donuts. In India it’s all topsy-turvy, but the question is why? Its High time they took a closer look at the Indian Fast food scenario  and realized that Indians of today want the original taste; they don’t eat Chana Bhathura in Mumbai and Batata Vada in Delhi. Similarly International operators must bring same quality of product, high hygiene standards and most importantly the same Menu and flavors to India, or else they will be rejected sooner than later.  


Written By Anil Chak and Virat Varma                                                          


                                                                          





Sunday, June 16, 2013

Indian Hospiality Industry 2

                            




Management by default Part 2

The Fact File
 Just to DOUBLE CHECK what I had written about the receding standards of the quality of service in branded deluxe hotels  in my previous   blog, I thought I must venture out to cross check if my  observations/remarks were harsh on undeserving hotel properties—so after some more experiences and observations I thought I must update my readers.

      I wanted to stay at Westin Mumbai, Taj Lands Inn, JW Marriot or Hilton but rooms  were not available and then with great difficulty I finally got a room in one of the mentioned Hotel. My stay at this Hotel was quite comfortable except for the issues that make good hotels better. Some of my observations are placed below;

             I had gone to the Hotel at about 12.30 pm with a friend. No porter to help even the doorman not in sight. We requested the car valet to call for the porter and started to climb up to the entrance door (about ten stairs). Their was a shout in Hindi “udar sey apna bag scan kar ke upar aao” (Go to the other side and get your briefcase scanned and then come up), no “please”-no” polite courtesy”- no one at the machine to help, even the switch, was conveniently(conveniently for them) at the door. And they call themselves  5star Deluxe Hotel!
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              As the room was not ready, we decided to sit in the lobby lounge, and wait. While waiting we ordered one cappuccino and one Iced Tea. It took over twenty minutes to get my coffee with one piece soggy biscotti; it took another ten minutes to get the cold beverage. There was only one table other then us.
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       After seeing my friend off, I came up to my room. The hotel room was well appointed. I tried to switch on the TV- no luck. Finally called for help and was told  that I need to press half a dozen other switches before remote can start working and this will happen every time I close the TV. Hassled as I was,   I left the TV on till the next day jus to avoid switching it ON &Off  or to call for help each time to watch a program.
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             I had a meeting with a client at 3pm-I took him to the lounge. No snacks were available; we ordered one tea a cold coffee and some French fries. It took twenty five minutes. Bad service, bad food and zero courtesy’s plus were charged for all these items in Executive lounge. Even next morning buffet breakfast was really a joke- it reminded me of Drive in Motel breakfast in USA, which usually have better choice.
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       Back in Room, still hungry I ordered Pakoras (Room Service recommendation). Came on time but without Tomato sauce, Tabasco or even Salt & Pepper. Waiter was polite and ask me, when he can come for clearance- half an hour I replied. But no one came to clear the tray-luckily for them I ordered Dessert at about 10 pm so that tray was cleared. But dessert tray was not collected till I checked out next day at about 11.30pm. And Yes! here is the clincher that concludes  my critical appreciation and the  tale of anguish ; There was no Evening Service provided  in  the room, ( This is an   important element of the schedule for housekeeping staff, where the room is tidied, essentials replenished so that the guest can have a comfortable evening followed by a good night’s sleep).
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           Buffet breakfast in the restaurant was quite elaborate. But As usual service left very big hole in terms of hospitality, friendliness and basic courtesy. No one welcomed and no one said thank you or goodbye when the Guest was leaving.

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           Next morning when I checked out, the receptionist asked me two very stupid questions:
      
             Sir, would you like Airport Drop or would you like to take Taxi? Being Airport Hotel, I asked if it was complimentary? No Sir you will have to pay for the it.

      Sir would you like to carry your own luggage or should I call the porter?
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      The purpose of writing this ‘Hotel stay evaluation’ is to once again highlight the heartless, thoughtless style of American hospitality devoid of all sensitivities, now being conveniently practiced as the industry moves on to learn the better of west. But in the Indian context, it is this kind of service that makes you feel like as if one is being taken for good ride. Perhaps the need of the hour is to strike a balance between East & West. May be its time to rediscover the soul of Indian Hospitality in order to strike the right cord in the minds of our guests in India and from across the seven seas  who feed the industry.


Written by Anil Chak & Virat Varma

Thursday, April 18, 2013

Indian Hospitality Industry 1


Hotel Management in Default Settings

Today I have completed more than 35 years in the Indian Hospitality Industry. It was a humble beginning as Junior Executive Trainee in Akbar hotel on a stipend of Rs. 600 - I had just returned from Beirut, Lebanon. Gradually then, as a young lad, I was exposed to the Indian System of hotel environment, management, cuisines. I am very grateful that I grew up in the setting when great hoteliers’ like M. S. Oberoi, Ajit Kerkar and S.N. Gadhoke were trying to set standards in the hospitality Industry. Every time we served them breakfast, lunch or dinner we were trained to be precise on the timing, product contents, accompaniments, sauces and so on. Every time we served them, it was like a classroom lecture on Hospitality Standards, Environment, and Ambience and to learn how to hone the already known skills. Like our bosses, we were equally passionate about what we cooked, what we served and how we served.

Since then lot of water has flown under the bridge our peers have taken a sabbatical from the industry, leaders have changed. Large numbers of International Brands are in India. The influence of Casual American Style of management is now quite visible all over. Though we construct better hotels with superior technology we ignore the finer nuances of this delicate industry thereby choking its growth and development, in terms of quality and excellence.

Contrary to what anyone may say, our service standards have gone down without doubt. The human touch has been conveniently replaced by efficiency- whatever it means to the managements, Guest Satisfaction is secondary and only provided on complaint or demand.

Indian culture once the mainstay of courtesy and hospitality has taken a flight into oblivion. New targets of the hotels are healthy bottom line, and guest satisfaction is not really a part of agenda. Over the last few years having conducted over mystery customer operation audits, I am quite in a position to comment on the issues and areas of deterioration, but before I do, I would like to inform my readers that this is not true for South East Asia.  Service or guest experience, quality of food, authenticity of cuisine in these countries is reaching new heights we can only write or talk. Today not only India but the entire modern world is desperately trying to emulate the service standards of hotels like Regent, Shangri-la, Aman, Four Season, Mandarin Oriental, The Peninsula & Lebua Hotels and Resorts. These are also hotels who have rewritten service standards for the world to follow and yet have achieved   financial targets we can only dream.

My observation is based on  the premise that a hotel to be successful, requires good architectural design, well appointed rooms, latest software’s and good facilities, but more than anything else it requires a human touch, because Hospitality Business is all about people - weary people who come for a respite. They deserve the best and even more.

My points of observation are placed below:
1.      Periphery entrance to the hotel is one of the essential and impressionable but in the name of security we have turned this as it were an entry to barricaded army area. Instead of guest getting a feel of services and security he experiences a show of arrogance and discourtesy. Mostly the staff deployed is not properly trained to be well-mannered besides majority of them are not aware of what they are looking for when checking cars. This scene remind you of the mile long queue on main roads due to road blocks, but when you reach the block you notice the police men are standing on the side and not even looking at you.

(Our mystery customer report and our study indicate that 65% of client do not believe that Hotels take security of premises and guest very seriously and feel it’s a waste of time.)

2.    System of appointing a doorman was started to provide a grand welcome to every guest. Unfortunately in most of the hotels this service is only working for guest with luxury cars and expensive life style. My experience in visiting the same hotel was different with three different cars - while a BMW got me stiff army style salute and an extra dose of service, courtesy with a smile, a Honda city gave me the feeling as though  I was entering a corporate office and finally it was Maruti Swift which got me that special cold look reserved for a  petty customer who just hangs around in the lobby or has come for  a meet-up with the esteemed rich guest already staying of the hotel.

Most of these hotels make you realize or define your social class and economic status. This at times is made obvious by the Durbaan who makes the guest conscious. This treatment is more pronounced in North India as compared to the western or southern parts of India.  I recall the first time when I came back from abroad after 10 years, my flight was diverted to Mumbai (Bombay) and all passengers were given transit accommodation at TAJ. I clearly remember trying to carry my own baggage, as all bell boys were busy taking out the luggage from the buses before I could enter the hotel,  I was attended by lobby manager who insisted that I hand over my hand baggage to him as he welcomed me  with a very genuine  smile. Today when you visit a hotel, nine out of ten times you have to ask for someone to carry your luggage.You feel you are on your own , as if you are in some kind of an urban sarai ( Our study indicate nearly every second guest has this issue and feels this should  be improved)

3.   Our Reception Service has become much Americanized. I remember I had to wait 20 minutes in Lexington Hotel in New York just to get the keys to my room. Technology has reduced the work load of the front office to less than half of what they were doing earlier. Still I find it quite amusing that receptionists do not bother to exchange pleasantries or to even welcome you with a smile. As a guest - you have to introduce yourself, you have to request for everything. There is no display of courtesy either verbal or in the body language,  no warm smiles, in most of the cases it reminds you of visiting Udhyog Bhawan PRO office and queuing up to  get an entry pass to visit government office. What has happened to our basic values? Why have we forgotten the poor sucker standing across the counter is going to make or break the hotel? (8 corporate guests out of 10 feel that technology has not improved in the service).

4.     I was taught while growing up in the industry that Housekeeping and Room Service is the backbone of any successful hotel venture. It is surprising  that the house keeping standards of a  well managed 3,4 or 5 star hotel are nearly the same including the  facilities in the room, barring  the size of the room which may vary with number of Stars. However to me what matters is how thoughtfully the room is maintained in the hotel. There is a standard practice of cleaning the room once a day and then there is a turn down service in the evening. But if a guest checks-in early and has used the room and bathroom, before going out, the housekeeping never clean or services the room and in the evening you  return to a dirty room. In most cases the evening service depends on the availability of staff and their whims & fancies. For me perfect housekeeping would mean each time I return to my room, I must find it tidy and all touched up, Paper, books, clothes all properly stored with sparkling toilets, freshly laundered towels and linen etc. all in a spick & span condition and yes not forgetting that little flower to greet you and to make you feel good while you prepare to call it a day. But I guess in today’s scenario while picking up good things from West, we have given up good things of East for which West came to us, our service with a soul and smile.

5. In Corporate Hotels and Resorts Room Service can play a major role to generate from Food & Beverage revenue. Room Service menu is priced at least 15 to 20 % more than the restaurant or coffee shop rates so to provide additional service. This is the most disappointing service in today’s scenario, as the guest is treated as a captive who is solely dependent on them, it is an opportunity for the hotel to get creative, do what they want and how they want. I vividly recall my stay at the Clark Oberoi, Shimla back in 1976, every time I ordered room service it was a celebration. Room service staff would lay a proper table cloth and napkins   and even serve the meals, unless of course we didn’t want them to.

Many years later when I opened Regent Mumbai I tried to repeat  the same thing with modern equipment. There was this trolley which would roll in the room and then get converted into a table with laid out covers which is followed by piping hot food and the waiter used to wait on us to start the meal. I harbor a strong belief that with such large number of manpower we hire in India to run a  hotel, this service is easily possible and to say the least it needs to be experienced and it will have its own rewards . Frequent visitors to the hotels will agree with me that in most cases the room service is all lop sided. In a typical scenario, first it is difficult to order and when your order is finally noted over the phone most of the time they bring wrong items – sauces and accompaniments are matter of luck. Then finally the removal & clearance of trolley which is a matter of sheer luck or lottery, I am sure most of my readers will confirm spending nights with dirty tray or trolley. (90% of the guest staying and using room service feel then when they order from room service they are compromising with their meals. They are forced to order room service not because they like to, but because of convenience).

6. There is a major misunderstanding about upgrading of Communication Systems in the hotels that is the telephone Technology for internal communication. We keep on upgrading this technology so to improve service to the guest. But our management team thinks this is to reduce manpower. Little do they realize that telephone operator is the only vital link which the esteemed guest has with the management team of the hotel. On top of that in 80s’ and 90s’, this was a major revenue earner .

Experienced traveler will confirm how important is the Telephone Operator to the guest, but somehow we all have forgotten him  in the hope that  someday we will completely eliminate the operator  or at least we want to think  that we will. Today   with the help of new technology buttons we are making guest’s life even more miserable than comforting. Most of the operators seem to be in a tearing hurry to help the guest. The system of offering help to the guest has been totally eliminated. Consequently at times it is easier for the guest to call the hotel from his room from his mobile  than to go through the operator , because the brief given to the operator is to give priority to incoming calls from outside, than to calls from rooms. That is not all unfortunately, the worst is, if you are calling from outside and want  some information or want to get in touch with somebody in the hotel, you will have to be very lucky if you are connected in the first attempt. I have kept the record of my ordeal with hotels last year in this context - I called about 23 hotels to get some information or booking e.g. it was either about the rooms, or about a guest staying or want to be connected to  banquet/sales department or most of the times just trying to get connected to the GM of the  hotel. In the process I may have spent around Rs. 4.75 per call per hotel. (Most of the guest and their secretaries felt that it was easier to get across to hotel’s contact person on his mobile than to call him through EPABX system of the hotel).

7. As an Assistant F & B Manager of a small ITDC Qutab Hotel in Delhi, where the most popular affair used to be the Sunday Buffet,  for 3 years I worked with this hotel, and we had nearly 65% repeat clientele for this Sunday Buffet. It was not that we served amazing food or we created an exceptional ambiance , it was, just that basic and pure, guest service. We made an effort to treat every guest in a very special way. His likes and dislikes were noted and we worked on that. I remember my family restaurant in Beirut, where I had the opportunity to work with a Senior Captain, his name was John De’Souza. He was the best guest relation manager, I ever worked with. I remember an instance - It was lunch time and our restaurant was empty it was nearly 2 PM in the afternoon. A Sheikh from Kuwait walked in the restaurant and when he looked at the empty restaurant, he asked John in his broken Hindi “ Kaya huwa Koi nahi hai”( What happened-no other guest) and john answered “Hajur aap agaye to Hamme kisi ki jarurat nahi hai” (Sir, you have come-now we don’t need anyone). The Sheikh was so emotionally charged that he hugged him and gave him a tip that was more than the cost of the meal.

I want to put a question to my readers i.e.  have they ever gone through  a similar experience in -  let us say last 10 years with a  big brand hotels like The Taj , Hyatt, Sheraton, Oberoi or ITC, today we  want the guest to pay ridiculous amounts for nothing. We have little  patience to serve him, the food according to his wishes and desires, ironically enough, even after so many years and with so many new concepts floating in the market the best restaurants still are  Bukhara and Moti Mahal in Greater Kailash, New Delhi. In the effort to modernize ourselves we forget who is paying for our existence. I have visited many restaurants, cafés and lounges in Hotels, if I ask for something different than the menu, as a rule they refuse to change, and this goes for all the hotels, however there may be exceptions - and exceptions  prove the rule).”The rule is not to change”

Most of coffee shops in hotels insists on a buffet - lunch or dinner because of their convenience, and if by chance you are stubborn and  have  your way, then your meal is  delayed to prove their point. This is also the reason why more and more free standing restaurants are doing well while the F&B revenue keeps dropping in hotels.


( The people we spoke to, majority of them felt that visiting hotel for F&B is not a good option when it comes to  value for money.)

Today we are on the threshold of a major growth in hotel industry and if our service standards do not match the proverbial Indian Hospitality and continue to be the way they are, there is very little hope. We have everything what our South East Asian neighbors’ have, but the difference is, that in India, hospitality is a  social phenomenon, a concept that is based on the principle Atithi Devo Bhava, meaning "The guest is God." From this stems the Indian approach of graciousness towards guests at home and in all social situations. It is we who are perceived by the world as a seat of Culture, warmth and Divine Heritage. It is important for us to win over the world by our faith and excellence of hospitality and become example to the world. Today technology has given us ability to achieve excellence in service standards and create a reputation beyond what is best in the world. Complacency is not an option when it comes to tourism development and growth. It would be a good idea to setup a research centre so to improve the service standards of existing hotels and also create and achieve new heights in Hospitality business opportunity.

Epilogue
“I may be branded as a bitter critique for my ballistic reactions by some in the hospitality industry - my advice to them, let’s not rock our own boat”./ Ends

Written by Anil Chak & Virat Varma

Wednesday, February 29, 2012


MyFootprints on Stone of Time…!

Sometime, in late sixties I completed my Higher Secondary education, keeping in view my marks my dad decided that I needed to go abroad, because the chances of getting admission in any of the Engineering colleges in India were rather remote. And any way deep down, who wanted to go to the engineering college. I was sure there was more to life than that. So destiny decided and I sang ‘Beirut here I come’. At that time Beirut was a happening place and to study there I felt like God’s chosen one.

Who knew then, that these were the first strides out that were taking me towards my “Karma Bhoomi”. The battle for survival had begun. Along this endless march in life, I met so many people that many of them I do not even remember now, but there are some unforgettable one who helped me pave the path of my life. I met a few who recast my attitude, touched the very core of moral fiber. Some infused my willpower with an extra drop of zeal to fight. I dedicate this blog to record the sweet memories of those great human beings with whom I was fortunate enough to work or was thrown together with by dear destiny.

Vinod Gulati: My childhood friend who I always thought was smarter and better looking than me. After school he decided to join the Army. He used to come home two times every year and that was like celebrating Dewali. Every day he would take me to CP for a treat to a new Restaurant - Gaylord, Labohim, Laguna, United Coffee house and other popular restaurants of the happening cannaught place area. This was my first brush with the world of Luxury, good food and bravery. While spending time together he would narrate his experiences in the Army OH! Army seemed like a dream world. I didn’t mind hard work ,fighting the enemy, any boy’s dream, and a passion with me and to top it all holidays like those thrown in Army seemed the way to go but my parents did not think so and that’s that. Well, Vinod was/is my hero. I wanted to be like him. Time passed, and Vinod remained my friend, philosopher and Guide .Although we don’t meet often enough now but he will remain my best friend forever.( Like my daughter would say my BFF)

· I did write about Bhisham Varma in my earlier blog. What can you say about a man who falls in the same category as Super Man, Spiderman and Phantom all rolled in one. He was the best swimmer for more than a decade in Delhi, his pole vault record at Delhi University is yet to be broken, phenomenal driver who could identify the name and model of a car blind folded simply by listening to the sound of the engine. He was a commercial Pilot as well and so much more. As for me, he was my Chachaji, a father figure; I looked up to him for directions in life. He gave me confidence, believed in me, guided me— whatever I am today is thanks to him. He was a visionary, a genius with an ability to turn his weakness into his strength. He was a charmer par excellence. He would have his biggest critics eating out of his hand within minutes, he was never scared to take on people /companies ten times bigger and come out a winner-always. He was like GOD by my side; even today after every achievement I feel his presence around me, I miss him because I know he would be really proud of me. He will always be my guiding spirit.

· Leila Varma: A beautiful, charming and highly disciplined lady is my Chachi (Aunt)-married to my Uncle Bhisham.A Palestinian Christen (Greek orthodox) Leila was every thing opposite (in good ways) to my Uncle. Highly educated in USA, very shy-she was forced to be my mother, sister and guide at a crucial time in my life. She never ever interfered in our work. I remember we had a manager called Saud who was working with my Uncle for many many years-once when Uncle was in London on business I caught him manipulating the restaurant bills and asked him to leave the restaurant and only come back after Uncles return. He got furious and rang up my Aunt complaining about me-mind you I was only an 18 years old green horn but Leila backed me up and asked him to come back after uncle’s return. She taught me the most important lesson of my life---while working in Beirut I was ordered by uncle to bribe Airline staff, government official and not only that I was forced to do things which I felt were unethical .Having no friend at that time, I started writing a dairy to give vent to my frustrations. Without realizing that Uncle was monitoring my each move. Being a masochist- on one page I toyed with the idea of death. By mistake the dairy fell in uncle’s hand and all hell broke loose. While my uncle was giving me a lecture on changing with the world (he was right in his own way), Leila interrupted and told me not to give in, but to fight for what is right, she said, “Virat you don’t have to change with the world but to work on changing the world to what is right”. Till date I have worked on what she taught and that has made me the man I am and mind you that most of the times makes me a misfit in this world. But I am proud of who I am.

· Judith Brewer: A ravishing blond from New York and a graceful walk from Paris- she was a real friend in that ‘friendless’ early world of mine. She was actually going out with a diplomat friend of mine and when I tried to date her she said, I was like a little brother. We remained friends till I returned back to India and thereafter; I could never locate her in this world. She was my teacher and a friend who taught me to write letters, but most important thing she taught me to be independent and learn to be my own boss. She gifted me dignity of living.

· Toni Campbell: A great friend, the man to whom I owe my sensitivity and gift of writing, especially to his younger brother Colin Campbell. Colin was young rebel with Jesus Christ beard and hair style. Somehow I was going through my own rebellious phase and we hit off well. He used to write very fine poetry. He helped me in converting my heart aches into verse. He first taught me to write poetry and then became fan of what I wrote. He was always a cool guy who promised to come to my wedding, dressed in a suit but no tie and shoes. We wrote our first poetry book together it was called “INTODUCTION”. Today he lives in Spain and takes care of his mother.

· Psyche Nigam: My boss in ITDC and A.K. Dave Assosiates. A vivacious, pretty and Hot-yes really hot lady. We were all in love with her- all her Management Trainees, her colleges and even her bosses except, obviously her husband (God bless his soul). She was real deliverer. Although she was just one of the many Dy Directors, but the fact was that she ran ITDC. She was a go-getter and I was her assistant. She taught me to be a hotelier. She was multi tasking from training to planning to running of Hotels. Actually if you think about it, her exit was the first nail in ITDC hotels coffin. I was her “Golden Boy” and the lady was really fond of me and she was very unhappy when I left her company for another Job. She is a great Lady maybe the best .I will always love and respect her and will be ever so grateful for her guidance and training.

· Kissan Mehta & Vjay Mallya: Together they have played a very important role in my life. Kishan Mehta President UB group gave me a break to head his Fast Food Division and start a pizza chain under the name Pizza King in 1983-84.I was working for Milk Food at that time and when I came to know that McDowell & Company is planning to come into fast food industry. I felt cheated as I wanted to be the first one. I dared and called Mr. Mehta’s office and as luck would have it he came on the line and called me for an interview and rest is history. He is the man who brought Coca-Cola to India. A great manager. He gave me total freedom to run the chain the way I wanted. We became so successful that we were written about in Times and Newsweek & India Today wanted to do a cover story on us. It was because of Pizza King Mr. Mallya is even today called The King. Mr. Mehta’s guidance helped me to open the first pizza chain in our country successfully and that gave me tremendous confidence and my abilities as a manager were put to test, successfully.

· Vijay Mallya on other hand was a Prince Charming, a ‘Dare Devil’ and ‘Great Human Being’ all rolled into one. He was proud of us and on many occasions he said that to me. He believed in us to an extent that he lived, breathed and ate pizza from Pizza King like it would go out of fashion. My interaction with him was limited, but at every stage we interacted he was always surrounded by self centered coterie of managers who misused their position for their personal benefits. And it is my belief that is the reason Vijay Mallya a man of vision, who came out with outstanding concepts like soft drinks (Thrill, Rush and Sprite), the first highly successful fast food chain Pizza King and an amazing King Fisher Airline could not overcome the difficulties. Even today I am emotionally attached to Vijay Mallya and his vision and it hurts to see yet another of his passion – the Kingfisher Airline slowly going to dogs. I hope for the first time he himself buckles up to fight it out. What I learnt from him was he gave his involvement with his new projects was total but along the way he got over them and started looking for new ideas like a child would do with an old toy when he found a new one .If he is still determined to beat his father’s achievements. Then he must realize that it is not just starting a new project, but what matters is how each one of those gets converted into a successful venture,by following them through thick and thin. May be I say this because all the people attached to Pizza King are all doing well individually today but all still miss Pizza King a Lot.

· Richard Rekhy: When I was working as GM at Centaur Hotels I met this very humble and polite auditor representing renowned firm RSM . Richard was their managing partner, Northern India. Richard and I became very good friends. Even after I left Centaur and joined JP hotels he was my friend and financial advisor. Although we did not do any business together but we interacted on daily basis. Richard was the one who forced me into Hospitality Consultancy. His boss Mr. Ratan S. Mama had a great regard and believe in Richard and in 1996 we floated a company under RSM- Ratan Mama Consultants in collaboration with Pannell Kerr Forster first professional Hospitality Consulting firm in India. Being a Restaurateur and Hotelier my ability for deskwork was limited. I was hard core operation man. It was Richard with his uncanny support that not only in guiding but even in writing reports with us that established us as the first Professionally Managed Consulting Firm. Within six months of starting of the company Mr. R. Mama passed away and his son who was supposed to be my under study by default became my boss. Following next two and a half years were tough, we did about 57 small, large and medium projects/assignments and all those were successful because Richard’s supported us. To be précis he had a major role to play in turning me from hardcore Hotel Operation Professional to a Professional Corporate Manager. My ability to look at projects operationally, financially, administratively is his training. Today Richard is heading KPMG as their COO. God bless him.

· K K Sharma: I became friends with this maverick lawyer from high court when I was working with JP’s. He has a great ability and fire to win legal battles which also gives confidence to his client. After leaving Regent Mumbai when I open my own restaurant he was there to help me. The loosing restaurant saw all my fare wheather friends vanished into the blue, except for KK. He not only supported me but helped me in so many ways to stay afloat during the times of monetary stress. His unflinching belief in me - when everybody, including some of my family, lost confidence in me he was there for me and that’s something I will never forget. He taught me the real meaning of a good friend. You are not rich if you have too many of them just a few true ones makes life worth living.

Written by Anil Chak & Virat Varma