Dining, American style

Sanjoy Roy, vice president (operations), Bistro Hospitality Pvt Ltd, believes that Thank Goodness Its Friday's (TGIF) latest outlet at the MGF Mall, Gurgaon will add 10 per cent to the company's annual turnover. Set up at a cost of Rs 3 crore, the restaurant has a capacity to seat 162 customers.

Bistro Hospitality is the master franchisee for the US-based TGIF in India, Nepal, Sri Lanka, Bangladesh and Myanmar. The company's Gurgaon outlet is the fifth in India. The others are at Delhi's Basant Lok complex and Connaught Place, Bangalore and Mumbai.

"We have no intention of going on an expansion binge. It's bad for the company's image to start a new restaurant and close it down after a few months. We're happy at the 10 per cent growth that we have been clocking over the last couple of years," says Roy.

Bistro Hospitality plans to open five new TGIF restaurants "" a second one in Mumbai, Chennai, Hyderabad, Pune and Noida "" in the next three years.

The company is also thinking of opening Friday's American Bar in smaller cities such as Jaipur, Ahmedabad and Chandigarh. "In these places, the bar will be the hub of operations ," says Roy. At TGIFs, sales are equally split between food and beverages. In the US, according to him, food outsells drinks 80:20.

Competition is hotting up in the food business. Retail consultants KSA Technopak says annually Indians spend Rs 35,000 crore eating out. Of this, the organised sector accounts for Rs 2,000 crore.

This is likely to go up to Rs 6,000 crore by next year. "We see every new restaurant as a competitor," says Roy. And to ward it off, TGIF holds regular food and beverages promotions. "It's a way to widen our menu range and hold on to our regulars," explains Roy.

The company is trying various other options to retain customers. High-spending customers at TGIF are invited to join the Friday's big spender's club where members are given discounts on special occasions. The company is also working on plans to boost sales during lean periods (12 noon to 6 pm); according to company officials "buy one and get one free" concept in both food and beverages, could be one way to bring in customers.

In 2003-04, Bistro Hospitality's turnover was Rs 19 crore, up from Rs 16.5 crore in 2002-03. It is promoted by Rajen Jetly, Uday and Atul Punj, K B Kachru and Naresh Trehan.