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The secret to cost management is to train all your employees to be cost conscious.

SP: To sustain this situation of low volumes and lower spending, we have to keep operating costs low. Success is to create a unique experience, to be different from the others.

GL: Yes, in today’s world restaurants cater to the different segments. However all of us need to keep costs under control to make profits. Look at QSRs which are going all out to cut down their entry prices to drive in footfalls.

If you look around, theme restaurants do better than multi-cuisine ones as people do not mind spending for the experience.

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Does the current situation require some radical thinking or can you still afford to be measured? What solutions have you implemented?
AS: It calls for innovation rather than radical thinking. Be quality conscious and consistent which will infuse confidence in customers on your product. It also helps to be in touch with the market pulse.

At Caperberry, we started with a good value four course lunch for Rs500 plus taxes, but it was the only option. So after a month and a half, we launched the three course lunch for Rs400 plus taxes to bring in the element of flexibility. The foot falls doubled in a week and now we have a very successful lunch.

SNR: Frankly speaking the situation is not very encouraging, but neither is it so bad that one should take very radical control measures, at least for the near future.

One solution which we have successfully implemented is streamlining our purchasing patterns and also improving accuracy to save 12%, which is big in these challenging times.

SP: Yes, radical thinking is necessary. Getting footfall at this crucial time is important. Once in, well trained incentives and staff can up sell to reduce the margin impact.

GL: Having seen most hotels cut down the costs of buffets, one wonders how low can the buffet pricing be? But wise decisions like having the main course made live instead of having it sit around on the buffet for a long time makes it look good as well as cost effective.

We have asked our suppliers to pitch in with extra freebies for our staff food, where we save money on the meats.

Can some of the kitchen work be outsourced (pre-mixes, central kitchens)? How and which areas?
AS: This may not be applicable at Caperberry because of quality and detailing. However, for larger operations, they could definitely be outsourced. The quality control of such products and services will always require close attention.

SNR: Outsourcing and vendor based operations are always big questions in this business. Though it saves on one front, you are always paying some extra money at the other end. The only area which I feel can be outsourced is the stewarding but this does not have much effect on overall costs.