INTRODUCTION

The Federation of Hotel and Restaurant Industries in India (FHRAI) engaged HVS International to
research the restaurant industry in India and identify both global and domestic food trends. 100
questionnaire responses from independent and hotel restaurants in Jalandhar provided the statistical
basis for analysis of operations and financials of the existing restaurant industry in the country. In
addition, a large cross section of professionals involved in the industry was consulted for their views.
The report presents the results of the analysis and includes the following:
z

Background Scenario and numbers which includes an analysis of the demographic changes
occurring in India and their potential impact on the restaurant industry.

Analysis of responses collected via the questionnaire representing a snapshot of trends in the
Indian restaurant industry.

A summary of key emerging global food trends as well as international restaurant chains that
provide franchise opportunities for operators in India.

A guide on how restaurants are valued and guidelines for conducting a feasibility study before
opening a restaurant.

Real life restaurant case studies on both successful and not so successful restaurants.

Conclusions for each of these sections are summarized below and discussed in greater depth throughout
the report. The reader is advised to read the entire report for a comprehensive view.

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Background Scenario and Numbers

Based on projections extrapolated from the Third Economic Census conducted in 1990, we estimate
that there are approximately 500,000 restaurants in India in the organized sector. This figure is expected
to rapidly increase as a result of the changes in demographic and economic factors which are having a
significant impact on the restaurant industry in India. Increasing urbanization and rising disposable
incomes are characteristics that are common across several emerging economies, particularly in Asia.
However, the pace at which this has taken place in India in the last few years is likely to continue over
the next decade and will outpace most other economies in the region. In particular, Merrill Lynch
estimates a growth in urban consumption at potentially 20% per annum in nominal terms (16% in real
terms) for at least the next 5-7 year period. In addition, higher disposable incomes among consumers
particularly in the top 25 cities and the trend towards eating out are combining with growth in
organized retailing to fuel growth in the foodservice sector.
There are 10 million households in India with average household income of Rs 46,000 per month and 2
million households with a household income of Rs 115,000 per month. Eating out has emerged as a
trend, which is prevalent within this elite group. Two of out of every five households in this group eat
out at least once a month. There are 100 million 17-21 year olds in India, and six out of ten households
have a child that was born in the postliberalization era and has grown up with no guilt of consumption.
Sales by Indian food service companies totaled Rs 350 billion in 2002. The organized sector is
responsible for approximately Rs 20 billion worth of sales. Indian consumers spend only 2.4 percent of
their food expenditure in hotels and restaurants (including on premises and take-out sales). American
consumers, by comparison spend 46 percent of their food expenditure on away-from-home meals.
These demographic numbers represent a young nation which has an increased propensity to spend in
restaurant and other food service sectors.

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Analysis of responses
An analysis of 165 responses out of 1100 questionnaire sent nationwide revealed some interesting
statistics:
z

A majority of respondents (53%) were restaurants that achieved an average check of between Rs
200 and Rs 400.

The total number of employees employed by 66% of the restaurants is under 40 with only 3%
respondents employing more than 100 employees. The sample therefore represented mid-size
restaurants, which are a majority in the country.

With regards to questions on tip and sharing of tips, 83% of the respondents do not levy any
service charge on the restaurant bill. In comparison, 77% of the respondents do not charge a
service charge in banquets. A majority of the respondents (60%) have tip pools.

Emerging Food and Restaurant Trends

Some of the emerging culinary trends internationally include the popularity of health foods, use of
fresh and authentic ingredients, acceptance of new fusion concepts and establishing of the chef
entrepreneur. In India multinational restaurant chains had to make a downward price revision and offer
more vegetarian toppings to increase sales volume. This led to a dramatic improvement in their
performance. They are also adding more spicy items in their menus to satisfy Indian taste buds.

International and domestic multi-unit restaurant groups are expected to drive the expansion in the
restaurant industry in India. Among the leading trends in this regard would be the expansion of quick
service Asian restaurants, fusion concepts, restaurants with a focus on entertainment, and ethnic and
regional cuisine restaurants.
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Restaurant Valuations and Feasibility Studies

There have been very few restaurant transactions that have taken place in India till date, largely because
the restaurant business has not yet evolved into a mature business. However, we foresee a fair bit of
activity in this area in the future: changes in market trends and competition, spurred by a huge
expansion in the food service industry in all major metro cities, would cause many restaurants to
change hands from one operator to the other. Restaurant valuation is a specialised art and appraisers of
restaurant real estate normally consider three approaches to value: the cost approach, the sales
comparison approach, and the income approach. Each approach has its own strengths and weaknesses,
depending on the age and condition of the improvements and whether the building is occupied by an
operating restaurant or is vacant. The cost approach is used to estimate the cost of purchasing a site
suitable for restaurant development and building a restaurant on the site, including the cost of
landscaping the site. The sales comparison approach considers recent sales of restaurant properties that
are comparable to the subject restaurant property in location, size, and brand affiliation (if the
restaurant was in operation at the time of sale). The income approach considers the actual or projected
rental income that could be generated by a restaurant business occupying the building.

A feasibility study is much more than a site-location study - this approach involves gathering and
analysing a great deal of information, from demographics to design, which helps the operators make a
better informed decision about the potential success of a specific concept at a certain location. In order
to establish the feasibility of the proposed restaurant, one must first estimate the development costs of
the project. By analysing both development cost figures and current market conditions, and by making
adjustments for the specific characteristics attributed to the proposed restaurant (such as location, size,
facilities, class and so forth), one will be able to derive an appropriate construction cost estimate for the
restaurant. This investment has to be compared with the returns being indicated by the income and
expense statement to evaluate whether or not the restaurant envisaged is financially feasible.
Four real life case studies are presented with the attempt to highlight critical factors that determine the
success or failure of a restaurant. For each case study, we interviewed the entrepreneur and asked
him/her to identify the key lessons learnt in running a restaurant. We describe the experience of each
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entrepreneur, together with their perceptions of where they were right, or where they went wrong. Two
case studies represent entrepreneurs who believed they had the right idea as well as the resources to
make a success in the restaurant business, and they succeeded the other two cases highlight some of the
factors that did not allow the restaurant to succeed and both of them had to close down. The studies
give the factors, which led to the success of these enterprises.

This study tells the current situation of market and consumer behavior towards our brand. Company
can use this study for knowing its area of scope to grab prospects customers who are consumers for
other companies as well as customers who are not using packaged products. This project can also be
used as to know the consumer expectation and will be used for the improvement in the available
products.
This study tells the current situation of market and consumer behavior towards our brand. Company
can use this study for knowing its area of scope to grab prospects customers who are consumers for
other companies as well as customers who are not using packaged products.
This project can also be used as to know the consumer expectation and will be used for the
improvement in the available products.
The restaurant industry has become one of the most profitable industries in the world. International and
local restaurant chains are satisfying the demand of customers in variety of range of products and
services. The ready to eat segment (fast Food) has given a new Journal of Asian Business Strategy
journal dimension to the industry so that Fast food restaurants like haveli, moti mahal, sagar ratna&
bikanervala are taking very good business in most of the part of world as well as in many cities of
Pakistan and they are spreading their branches very successfully. Basically this is the era of
globalization and due to advancement of media world is shrinking in terms of culture and habits so the
fashions as well as eating patterns are also being opted among all over the world and this the reason for
such a huge spread of restaurant industry in the world.
Every business needs not only to retain its current customers but also to expand customers base
significantly and it is possible only when target customer is fully satisfied from company on some
parameters. The objective of study is to construct comprehensive model of customer satisfaction in fast
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growing restaurant industry covering all the major dimensions of concept.. Secondary research and
Quantitative techniques were used to explain the concept of customer satisfaction. Stratified random
sampling was used for this purpose for data analysis purpose, Correlation and multiple regressions
while using SPSS-16 were used to test the model.

HAVELI
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Haveli stands as a tribute to the glorious past & lifestyle of Punjab. The rich culture of Punjab is well
depicted

in

the

ambience

&

hospitality

of

Haveli.

Haveli is not just a restaurant; it is a holistic experience of Punjab which is derived from the various
food stalls, cultural stores and the impeccable dcor. There are elements like a life-size truck, a dummy
well, colourful bangles, parandis etc. that add up to the ethnicity of the place. Guests can shop for
souvenirs

at

the

stores

selling

traditional

artefacts.

Punjabi food is world-renown and we have taken the efforts to maintain that expectation by offering
authentic flavours of Punjab. As the name suggests, Haveli offers every guest a grand meal served in a
palatial way. The staff dressed in traditional Punjabi attire ensure that every guest has a pleasant
experience

to

take

back

home.

Haveli as a place was conceptualised by Mr.Satish Jain. During his childhood he saw the vast and rich
culture of Punjab where guests at home were treated as GOD. Creating Haveli is his effort to keep the
Punjabi tradition alive. He did a lot of research which has helped him to look into the finer details of
everything

from

exquisite

dcor

to

delicious

food.

Haveli has frozen time to that golden era for generations to come & experience the splendour of Punjab
in its true sense
Haveli was conceptualised by Mr. Satish Jain with the vision to keep the rich traditions and culture Of
Punjab alive for generations to come. His dream shaped into reality with the inception of the first
Haveli at Jalandhar based on the traditional rural aspect of Punjab. With the immediate positive
audience response and growing popularity of Haveli Jalandhar, Mr.Jain initiated the construction of
Haveli Murthal highlighting a contrasting facet of Bygone Punjabi Culture.
As the name suggests, Haveli Murthal is based on the theme of Royalty, highlighting the era of The
Maharaja's in Punjab. The theme is beautifully translated right from the entrance. The venue itself
depicts a Magnificent Palace and has a life size mock-up of a Vintage car at the entrance. Once you
enter you will get an experiential of a king's Lifestyle owing to the palatial dcor. The place is designed
to portray grandeur and class, emphasized by enormous chandeliers. Another exclusive feature is the
exclusive mural paintings hung around the venue capturing the essence of that era.
The delicious food and impeccable hospitality will make you feel royalty.
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The place truly stands up to the promise of Haveli offering food fit for the kings.
Haveli is not just a restaurant; it is a holistic experience of Punjab which is derived from the various
food stalls, cultural stores and the impeccable dcor. There are elements like a life-size truck, a dummy
well, colourful bangles, parandis etc. that add up to the ethnicity of the place. Guests can shop for
souvenirs at the stores selling traditional artefacts.

Rangla Punjab is the true representation of an age-old Punjabi Village. Once you enter the place you
will be transported back in time to experience the grandeur yet simplicity of bygone times. The dcor
of the place has been set-up with intricate detailing, highlighting every aspect needed to familiarize the
guest with the true culture of the olden times. You will find various sculptures of Punjabis engaged in
different acts viz. weaving, dancing, playing marbles, fetching water etc. In the centre foyer the wellwater fetching mechanism is demonstrated with the help of a real bull & a mock-up well. There are
sections of the place dedicated to re-creating replicas of a subedaar's house, a kitchen with brass
vessels, jeweller's store and a mock-up model of a village allowing the guests to get a real glimpse of
that era.
Evenings at the place witness a Punjabi Mela set-up, electrified with live bhangra-gidda performances
and street plays. There are numerous activities viz. Puppetry, Magic show, Pottery, astrology, bioscope,
camel-rides & horse-rides to keep the guests captivated.
The Buffet served in-doors will re-enforce the belief of Punjab's adored Hospitality. The staff treats
every guest as a valued invitee offering delicacies time and again. Visit us & give us a chance to bestow
you with a cultural bonanza of Punjab in its truest sense.

SAGAR RATNA
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The First name in South Indian Food that comes to mind is Sagar Ratna. The chain of restaurants is
highly acclaimed for its hygienically prepared authentic South Indian delicacies.Sagar Ratnastarted its
first branch in the Defence Colony Market in 1986.
The authentic South Indian cooked fresh many times a day worked well to increase the popularity of
Sagar Ratna immensely.Within a short span it spread its wings far and wide, Today Sagar Ratna has
established its presence in the National Capital Region (NCR) through company owned branches and
beyond NCR through franchise outlets.
It is a testimony to its popularity that even today the people of Delhi strongly identify with its Defence
Colony branch.
Sagar Ratna has been the recipient of numerous Awards in the Hospitality industry. Sagar Ratna has
won the Times Food Award-2012 (Best South Indian Restaurant) a feat it has achieved every year since
2006. The restaurant has also been conferred with several awards by National Institutions like the
National Egg Coordination Committee for being Delhis best restaurant-2005. Recently, Sagar Ratna
was awarded the Golden Spoon Award 2009 for the most admired restaurant of the year by Coca-Cola.
Sagar Ratna has also been awarded the coveted Crystal 2009, instituted by Hindustan Times for
being selected by the residents of the NCR as the Best South Indian Restaurant in the National Capital
Region.It has been ranked amongst the best 5 restaurants in India and 450 in Asia by the world
renowned Miele Guide.
The strong business model of Sagar Ratna was also recognized by Franchise Awards for excellence in
franchising and business development. The nascent coffee aroma emanating from the filter coffee is
another specialty of Sagar Ratna. Moreover being served in the traditional steel tumbler and saucer
adds to the authentic flavor of this concoction.

Vision
To help people eat fresh & healthy and hence live better.

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Mission
To serve great tasting & good quality food along with memorable service in a clean & simple
ambience so that the customer comes back again for the same.

Values
We will exceed customer expectation in whatever we do-Customer Orientation
We will continuously improve our products & processes-Innovation
We will respect employees, customers & suppliers and treat them the way we want to be treated
ourselves Customer & Employee Orientation
We encourage people to share their views and opinions openly and help communicate everything
Open communication
We accept responsibility for all our actions -Accountability
We will demonstrate & promote transparency, honesty & fairness in every action we take
Uncompromised Integrity
We will have a workplace that inspires & support performance orientation Result Orientation
We will take initiatives to do the right things and a can do approach Empowerment & Attitude
We will work together to meet our common goals Team Work We will celebrate every little success
and recognize every good work done Rewards & Recognition

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BIKANERVALA
The company was founded in 1950, as a retail sweets and namkeen shop in Bikaner, Rajasthan.
Bikanervala haits own outlets and range of restaurants in Delhi. Now, Bikanervala products
are exported to several countries worldwide. Bikanervala is one of India's most prominent families in
the business of traditional hospitality products like Sweets and Namkeens. Our forefathers devoted
their lifetime in developing exclusive recipes which are now our proud family secrets. To this wealth of
inherited knowledge our new generation has now added another dimension - Modern Technology.
Today, BIKANERVALA FOODS PVT. LTD. is an ISO 9001:2000, HACCP and SQF 2000 cm certified
company with four modern manufacturing units in the National Capital Region and a chain of 101
outlets in India and abroad, serving vegetarian North Indian, South Indian, Continental, Chinese cuisine
and Fast food along with a vast variety of traditional Indian sweets and snacks. Bikanervala is 100%
pure Vegetarian multi cuisine restaurant which is served & delivered with passion and celebration.

CONCEPT
BIKANERVALA
The traditional Indian sweet shop cum restaurant is an experience in itself. Here you can find the
pleasure & warmth of traditional Indian Sweets, Namkeens, Chaat & Snacks and 100% pure Vegetarian
multi cuisine restaurant which is served & delivered with passion and celebration. Bikanervala's
concept always has been to innovate and yet maintain the original flavour of traditional Indian food
with primary focus on quality, hygiene and affordability. Customer satisfaction is like a religion at
Bikanervala and that is why we have been able to keep our century old tradition alive. Bikanervala
showrooms are located in India, Nepal, UAE & New Zealand.

BIKANO

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Bikano is our international brand of packaged Sweets, Namkeens, Papad and Sherbets, manufactured to
the world standards of hygiene and quality. Bikano's packaged products have always been a big hit with
customers in both India and abroad. Their food products like namkeens, cookies and syrups have made
it the most preferred in between meal snack all over the world. Bikano's concept of constant innovation
through the use of modern technology for packaging retains its original flavour for maximum time
period. With this vast variety of finest packaged products one can always ready to celebrate a sweet
moment , any time , any where. Bikano products are available in Bikanervala & Bikano Chat Cafe
showrooms and in leading super markets and retail stores in India & abroad.
BIKANO CHAT CAFE
Bikano Chat Caf is a new age concept of Bikanervala aimed at establishing a strong network in the
corporate and the retail segment. It is a chain of fast food restaurants and Tuck Shops serving
traditional Indian Chat, Combo Meals, Burger, Pizza and Snacks in a modern hygienic environment.
Their main focus has been to provide exquisitely packaged traditional food at an affordable price to
wherever their customer groups are located, be it corporate houses, malls or even exhibition stalls.
Their innovative menu and state-of-the-art manufacturing and delivery systems ensures original flavor
from base-kitchen-to-customer.

VISION
To savors and share the century old culinary heritage of Bikanervala with ultimate taste and relishing
freshness and ensuring superior customer experience by providing highest standards of product quality
& service.

MOTI MAHAL
The Moti Mahal Tandoori Trails mission is to set up outlets with the least amount of capital
expenditure and provide extensive menus and multiple revenue sources while maintaining the highest
standards of efficiency and quality that customers will buy.
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With our growth rate we project ourselves to be more than 200 restaurants worldwide. To be seen as
one of the major food players, may it be as fine dining, bar, fast food concepts in the malls, processed
food and branded secret spice formulations available in every grocery store or hyper mart. To have a
chef training institute in almost every city focusing to bring out the best talent and culinary artist in our
country. The goal of the Company is to develop a very wide franchising system for Indian fine dining
restaurant to have its presence in entire world.

MISSION
Being the first franchise system is the only unique franchise system in the world which ensures a steady
supply of master chefs to all its franchisee units. These chefs will be personally trained through
Mr.Gujral & his corporate chefs in the Moti Mahal Kitchen which not only ensures standardized quality
of the dishes but also the control of the quality of purchases in the franchisee kitchen. However much
has been explained in the operational manual which assists the franchisee to operate the business
smoothly.
The Moti Mahal Group has pioneered the post independance Restaurant business in Delhi and the rest
of India. There has been a paradigm change in the way food is cooked, served and also eaten because of
the numerous "firsts" of the Moti Mahal Group. The most important being the inheritance of the
creative skills of the Royal Mughal Chefs.
In next five years we project ourselves to be in every city in India and major cities in the world.

RADHE O RADHE

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We are what we eat. A proper diet is of prime importance for our wellbeing and balance. The food we
consume not only helps to maintain the body in good shape but also ensures the wellbeing of mind. At
Radhe Radhe it is important for us that you relish what we prepare for you and at the same time you are
nourished by what you eat. Your health, enjoyment and wellbeing is truly our blessing and source of
success. We will serve you with fresh food made with pure Ghee and with selected homemade spices
and masalas. Ghee is most rejuvenating and promotes longevity. It aids digestion and is soothing to our
nervous system. At the right proportion, the human bodys rate of absorption of ghee is high, making
ghee an excellent medium for transporting vital nutrients to all parts of our bodies.

At Radhe Radhe, we strive satvik food for those who are spiritually inclined. Our Satvik food is
moderately cooked with fewer spices has less fat and it is digested easily. Our preparations bring a
keener sense of balance to our minds and bodies.
Traditionally its well-known fact that there are three major categories of food. These are differentiated
by their gunas or characteristics.
1)

Satva Guna : This is associated with calmness, purity and balance. Satvik foods bring us

longevity intelligence, strength, health, peace and happiness. Examples of typical satvik foods include
fruits, vegetables, grains, cereals and so on.
2)

Rajo Guna : This is associated with activity, passion and energy. This is typically our ability to

get going and get work done. Typical examples of rajasik foods are hot spicy foods and saltfoods.

Our Specialty North Indian Indulge yourself in preparations that are thick, moderately spicy and
accompanied with creamy gravies.
Satvik Food Options Mellow, peaceful, light to moderately cooked with few spices and very little fat.
Digests easily, builds immunity and brings mind body balance. It keeps you feeling light.
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Lassis Our very special Punjabi Lassi. Great nutrition, a digestive aid, alkaline fare (is great for us
since the human bodys PH is also alkaline) and is typically consumed with or after a meal.
Rotis Daily breads that are made of finely milled whole wheat flour.
Desserts Indian in origin, loved worldwide. You taste them, we are positive you will come back for
more.

Review of literature
Introduction
This part reviews the relevant literature about consumers and services, the consumer decision making
Process model and previous studies in consumers restaurant selection Behavior. Furthermore, the
interrelationships between customer satisfaction, food Quality, service quality and behavioral intentions
are discussed. Lastly, the restaurant Choice factors, dining occasion, and demographic characteristics
are reviewed. Previous studies on consumer behavior in the restaurant context have identified a number
of factors that consumers consider important in their restaurant selection. Following are examples of
these studies:

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Lewis (2009) investigated the influence of the benefit features of advertising on

consumers decision to go to a restaurant.
Three types of restaurants: family/popular, Atmosphere, and gourmet were analyzed. Food quality was
found as the most important feature determining patronage in tensions to any type of restaurant.

However, the range of importance of the other features differed by the type of
restaurant Auty (2009)
Identified the choice factors in the restaurant decision process based on four occasions: a celebration,
social occasion, convenience/quick meal, and business Meal. Food type, food quality and value for
money were found as the most important Choice variables for consumers when choosing a restaurant.
The order of these choices Criteria varied according to dining occasions. The author further suggested
that if the consumers perceived that restaurants provide comparable food type, food quality and price,
they would take image and atmosphere of the restaurants into account when making a final decision,
Family/popular and convenience/ fast-food restaurants.

The Kevels (2010) results Showed that the relative importance of the restaurant
choice factors differed considerably by restaurant type, dining occasion, age, and
occupation.
The studies of consumer behavior in ethnic restaurants are relatively limited. Previous ethnic restaurant
studies have focused on consumers perceptions and attitudes or on a particular cuisine (e.g., Josiam &
Monteiro, 2004 ;) Among these studies, the unique characteristics of ethnic cuisine are commonly
discussed. However, ethnic restaurateurs cannot compete simply on the uniqueness of the cuisine. The
results of past studies have emphasized that, in order to succeed, restaurant operators need to pay
attention to the attributes that have the highest regard in relation to consumers selection behavior.

Service providers need to understand how consumers choose and evaluate their
Offerings (Zeithaml, 2012).

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Consumers cannot choose and evaluate services in the same manner they do to physical goods as
services have distinctive characteristics and Are high in experience quality. Therefore, consumers find
it more difficult to evaluate services when compared to physical goods. Several studies (e.g., Kotler et
al., 2009 Zeithaml, 2012) suggest that the main characteristics that make services different from
physical goods are: intangibility, variability, inseparability, perishability, and lack of ownership. The
intangible quality of services is that services constitute performances and they often cannot be seen,
felt, tasted, or touched like physical goods (Zeithaml, 2012)., when making restaurant choice decisions,
Consumers used both tangible and intangible factors. The intangible factors are primarily: food quality,
service quality, and value for money the intangible characteristic of services makes these factors
difficult to evaluate prior to the actual purchase.

Restaurants dcor and atmosphere to guide them in forming expectations about the
restaurants (Bitner, 1990; Wall & Berry, 2007).
Most services are not produced and consumed until after they are sold. The production and
consumption of a service experience is usually a simultaneous process (Zeithaml & Bitner, 2012). A
restaurant service has a high level of contact between diners and service employees. Accordingly, the
skills and performance of restaurant staff are vital to diners perception of restaurant experience (Kotler
et al., 2009). Services cannot be stored. In contrast to physical goods that can be stored and sold at a
later time, services cease to exist if they are not sold when they become available (Hoffman & Bateson,
2001). For instance, a customer who does not show up for a reserved table in the restaurant will cause
the restaurateur to turn down the chance to serve other diners if the restaurant is full (Kotler et al.,
2009).

Service providers often find it difficult to balance the supply and demand of
services, given the unpredictable nature of consumer demand for services
(Hoffman & Bateson, 2013).
Services are an experience. Consumers pay to get access to and experience a service but do not get a
tangible ownership of that service (Clemes, Mollenkopf, & Burn, 2010). Accordingly, consumers may
feel a lack of control in the purchase of services . Food quality is rated as the most important attribute
influencing restaurant decisions in many studies on consumers restaurant selection behavior The
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elements that constitute food quality proposed in this study are unique tastes and ingredients, menu
variety, Appearance and presentation, healthy food options, and familiar food.

Cross Culture
While aspects of service quality and satisfaction have been examined, there is a lack of research on
literature examining cross-cultural differences in the service exchange relationship. Furthermore, while
there has been some conceptual research about whether services need to be modified for different
cultures, there have been few empirical studies to help provide answers . The hospitality sector is
specifically confronted with cultural diversity and its accompanying heterogeneity. As the dominant
approach for establishing service quality relies on the prior research and knowledge of customer
expectations, the diversity of the hospitality sector demands that service standards be established in
consideration of the varied perspectives of the guests they serve. Reisinger and Turner define culture as
representing both the similarities and the differences of a group of people in their values, rules of social
behavior, perceptions, and social interactions. In addition, they believe that markets cannot rely on the
perceptions of service alone to generate satisfaction; specific cultural values need to be considered.
According to Strauss and Mang, the assumption is that customers with different cultural backgrounds
may have different expectations toward service encounters and thus, may perceive service encounter
situations differently. Kong & Jogaratnam (2007) state that due to cultural differences, consumers in
and of different countries may experience a service encounter differently, even in the same type of
restaurant. Some recent studies found that customers from different cultures formed different
perceptions of service quality either because of differences in expectations or because they attached
different weights to different service quality dimensions

Time Perceptions
The concept of time has been studied throughout a variety of disciplines including economics,
psychology, sociology, economics and cultural anthropology (Mosakowski & Early, 2000). Recently,
socio-cultural aspects and recent academic literature shows an increasing concern with time and timePage
18

related benefits associated with certain products and services. In the hospitality segment, the concept of
time is a valued commodity, and has been a primary factor in the rapid expansion and success of quick
service restaurant chains (Becker & Murrmann, 2014). A distinguishing characteristic of service is that
both the production and consumption are said to occur simultaneously. It is generally believed that the
dining experience can be broken down into three stages: the pre-process stage, which extends from a
customers arrival at the restaurant until he or she orders the meal; the in-process stage, which consists
of placing an order and consuming the meal; and the post-process stage, which begins with check
settlement and ends when the customer leaves (Dube-Rioux, Schmitt, & Leclerc, 2014). Another study
divides the customer dining experience into six main components: pre-arrival, the time from when the
customers decide they want to come to the restaurant until they arrive; post-arrival, the time from when
customers arrive to when they are seated; pre-process, the time from when customers are seated until
they receive their first food order; in-process, the time from when they receive their order until they
request payment; post-process, the time from when they request payment until they leave the
restaurant; and table turnover, the time from when customers leave until the table is reseated (Kimes,
2014). Recent research related to time indicates that customers have been shown to be more upset when
a delay occurred during the pre-process or post-process stage of the dining experience than when the
delay occurred during the in-process stage, even though the delay was of the same length of time in
each stage (Dube-Rioux et al., 2014). For restaurant service, this simultaneous process occurs as a
tightly knit sequence of events that begins when the customer enters the restaurant and does not
conclude until the customer departs (Becker & Murrmann, 1999). Within operations, the meal duration
is typically viewed as a function of three elements: wait time, service time, and consumption time
(Kimes et al., 2014), not just as one

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RESEARCH METHODOLOGY
Research methodology deals with the method of study i.e. how the study will be carried out and what
techniques will be used. It is the careful investigation and enquiry in a systematic manner in order to
find solution to find problems in research. it consists of defining and redefining the problems,
formulating the hypothesis or suggestions solutions ,collecting data and evaluating the data and at last
carefully testing the conclusions to determine whether they fit he formulated hypothesis or not.

RESEARCH DESIGN
Research design states the conceptual structure within which research is to be conducted. A research
design is the arrangement of conditions for collections and analysis of data in a manner that aims of
data in manner that aims to combine relevant the research purpose with economy in procedure. The
different research designs available are:
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Exploratory research: it generally emphasis on discovery of ideas and insights. Its more
qualitative rather than quantitative.
Descriptive research: it is concerned with determining the frequency with which something

occurs or

extent relationship between two variables. This study will be having an

exploratory research, which is based on discovery of ideas and insights.
The research design of my research project is Descriptive Research.

SAMPLING PLAN
UNIVERSE- Universe consists of all restaurant customers in Jalandhar cityof selected restaurants.
SAMPLE SIZE- This refers to the number of respondents to be selected from the universe to
constitute a sample. A large sample gives more reliable results than the small samples. So the sample
size of 100 respondents/ restaurant customer was taken into consideration in case of research work.
SAMPLING UNIT- Sampling unit consists of restaurant customers of Jalandhar city.
SAMPLING TECHNIQUE- The technique used for my study is Non Probabilistic Convenient
Sampling.
METHODS OF DATA ANALYSIS & INTERPRETATION: Making use of data and understanding
its meaning is very important and critical work. For this purpose following methodology is used.

STATISTICAL TOOL USED

Likert Scale
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21

Almost Always

Sometimes

Strongly agree

Agree

Percentage method i.e. =

Rarely

Strongly disagree

No. of respondents

Never

Disagree

x 100

Total no. of respondents

STATISTICAL GRAPH/CHART USED

Pie Chart
METHODS OF DATA COLLECTION
DATA SOURCE
The methods used for collecting the required information regarding comparative study of restaurant is:
PRIMARY SOURCE
Primary source are those sources from which myself have collected the data and no other information
collected by someone else is used for this the following method is used: PERSONAL INTERVIEWPersonal interviews with the restaurant customer using restaurants ones were conducted using survey
with the help of structured questionnaire to understand and to ensure proper information and reducing
subjectivity on my part.

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22

SECONDARY SOURCE
Secondary data are those, which have already been collected by someone. For this study the source of
secondary data is: Websites
Magazines
Articles and Newspapers
Books

Secondary source is also one of the sources used for project work.
1. Generals
2. Newspapers
3. Magazines
The data available in the journals/published by the concerns in the field of consumer behavior
regarding purchase mobile phones from time to time is referred.
II.) Internet websites
The secondary source of information for my project report is also taken from the internet web sites

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23

OBJECTIVES
The main objective of the study is the customer satisfaction regarding services of restaurant, for this an
attempt has been made to find out the various factors which influence the customers to visit selected
restaurants

The objectives of the study are as follows:

To know the customer satisfaction level regarding food services provided by the restaurant.
To know the level of service scapes available to the customers in these restaurant.

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24

Limitations
The Data regarding the study was not readily available in a concise manner; therefore several
approximations were required to be made.

The recommendations made for future scope of study in the project are on the basis of Analysis
of Present Trends that may not become suitable on implementation after few years.

Experience of the Researcher will be lagging in the study that might have made the study more
analytical in nature.

Time availability will be a major constraint since the study is required to be prepared in time
bound manner.

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25

1. Income of customer?
a)10000-20000

b)20000-30000

c) 30000-40000

d)more than 40000

purpose: To know the income level of customer

table no.1: showing the income level of customer
Income
No. of respondent
10000-20000
26
20000-30000
18
30000-40000
33
More than 40000
23
total
100
Chart no.1 chart is showing the income level of c

%
26
18
33
23
100

income level of customer

10000-20000
23

20000-30000

26

30000-40000
more than 40000
33

18

Data
Analysis: almost 33% of people have their income level between 30000-40000, and 26% of people
have their income in between 10000-20000, 23% of people have their income more than 40000 and rest
of them have their income between 20000-30000

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26

Data interpretation: most of the people who used to go in restaurants belong to high class and income
level is between 30000-40000

2. How many times do you usually eat in the restaurants?

a) More than 3 times a week b) up to3 times a week
b) Once a week
d) hardly ever
Purpose: How many times an individual eats in the restaurant
Table no.2: showing the how many times an individual eats in the restaurant.
No. of times
No. of respondents
%
More than 3 times a week
33
33
Up to 3 times a week
37
37
Once a week
26
26
Hardly ever
4
4
Total
100
100
Chart no.2: chart is showing the how many times an individual eats in the restaurant.

eating time

more than 3 times a week

up to 3 times a week

33

26

once a week
hardly ever

37

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27

Data analysis: almost 37% of people eats upto 3 times a week, 335 of people eats more than 3 times a
week and 265 of people eats once a week in a restaurant.
Data interpretation: Most of the people eats almost 3 or more than 3 times a week in a restaurant.
Such data is showing the habit of people of eating in a restaurant.
3. When you eat in the restaurant, what type of food do you normally choose?
starter

vegetables

Fresh fruit

desserts

salads

hot main course

fried food

sandwiches

Purpose: to know what type of food do normally eat in the restaurant

Table no.3: showing what type of food do normally eat in the restaurant

No. of
Starter
Vegetables
Deserts
Hot main course
Fried food
Fresh fruits
Salads
Sandwiches
Total

No. of respondents
12
17
7
23
17
8
8
8
100

%
12
17
7
23
17
8
8
8
100

prefered food by customer

8 12
17

17

starter

vegetables

deserts

hot main course

fried food

fresh fruit

salads

sandwiches

23

Data analysis: almost 23% of people eat hot main course,17% of people eat fried food as well as
vegetables,12% of people eat starter and 8% of each eat fresh fruit etc. in a restaurant.

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28

Data interpretation: most of the people take hot main course, fried food ,vegetables as well as starter
in their meal in a restaurant.
4. In how much time to get your order?
Within 10 min

10-20min

20-30min

Purpose: to know about timing of delivery of the orders of the customers

Table no.4: showing the timing of delivery of the orders
Time for get the order

No. of respondents

Within 10 min

23

23

10-20 min

57

57

20-30 min

20

20

Total

100

100

Chart no.4: showing the timing of delievery of orders

timing of delievery of orders

20

within 10min

23

10-20 min
20-30 min

57

Data analysis: almost 57% of people get their order from 10-20 min,23% of people get their
order within 10 min and rest get within 10 min.

Data interpretation: most of the people get their order in 10-20 min andnwithin 10 min

5. What kind of offer do you like?

Price discount

gift voucher

other
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29

Purpose: to know about preferred offers of the customers

Table no.5: showing the preferred offers of the customers.
Offers

No. of respondents

Price discount

68

68

Gift voucher

24

24

Other

Total

100

100

Chart no.5: chart is showing the preferred offers of the customers.

offers
8

price discount
gift voucher

24

other
68

Data analysis: almost 68% of people prefer price discount, 24% of people like gift vouchers in the
various offers provided by the restaurants.
Data interpretation: most of the people like price discount offer among various offers provided by
various restaurants.

5. Do you considered the hygienic restaurant?

Yes

No

Purpose: to know about the customers consideration towards hygienic restaurant

Table no.6: showing customers consideration towards hygienic restaurant.
particulars

No. of respondents
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30

Yes

79

79

No

21

21

Total

100

100

Chart no.6: showing the customers consideration towards hygienic restaurant.

hygirenic restaurent

21

yes
no

79

Data analysis: almost 79% of people consider hygienic restaurants while going to the restaurants.
Data interpretation: most of the people like to go in a hygienic restaurant to get hygienic food.

7. Thinking about value for money, how would you describe the food in general?
Good value for money

reasonable

bad

Purpose: to know about the price reasonability of the food provided by the restaurants.
Table no.7: showing the price reasonability of the food provided by the restaurants.
Particulars

No. of respondents

Good value for money

56

56

Reasonable

27

27

Bad

17

17

Total

100

100
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Chart no.7: chart is showing the price reasonability of the food provided by the restaurants.

Value of money

good value for money

17

reasonable
bad

27

Data analyses: almost 27% of the people like to have reasonable food in the restaurant while 17%
feel that the price is bad
Data interpretation: Most of the people think that the price is reasonable in the restaurant.
8. How would you describe the variety of foods?
excellent

good

fair

poor

Purpose: to describe the variety of foods

table no. 8 showing the variety of foods in the restaurants
Particulars

No. of respondents
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32

excellent

26

26

good

37

37

fair

22

22

poor

15

15

total

100

100

Chart no.8: chart is showing the variety of foods in the restaurants

variety of foods
excellent
15

good

26

fair

22

poor
37

Data Analysis: almost 37% of people think that the variety of foods in the restaurants is good, 26% of
people feel that it is excellent,22% of people feel that it is fair and rest of them feel that it is bad.
Data interpretation: most of the people like to have the variety of foods in the restaurant.

9. Are you concerned about the types of food you eat?

Most of the time

sometimes

never

Purpose: to concern the types of food you eat

Table no.9: showing the types of food do individual eat
Particulars

No. of respondents

Most of the time

69

69

Sometime

23

23

Never

8
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33

total

100

100

Chart no. 9: chart is showing how individual is concerned about the type of food in the restaurant

concerned about food

8

most of the time

sometime

23

never
69

Data analysis: almost 69% of people most of the time they concerned about the food, 23% of people
sometime concerned about the food and rest of them never concerned about the food.
Data interpretation: most of the people are concerned about the food in the restaurant.
10. Would you like more information about the ingredients used in our dishes?
Yes

No

Purpose: to know the information about the ingredients used in the dishes
Table no.10: showing the information about the ingredients used in the dishes
Particulars

No. of respondent

yes

69

69

No

31

31

Total

100

100

Chart no.10: chart is showing the information about the ingredients used in the dishes

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information about ingredients

yes

31

no
69

Data analysis: more than 50% of the people like to know about the ingredients used in the dishes and
rests of them are not interested to know about the ingredients.
Data interpretation: most of the people are interested to know about the ingredients in the dishes.

11. Is the staff are well-presented?

Most of the time

some of the time

Never

Purpose: to know the staff are well presented or not.

Table no.11: showing the staff are well-presented.
Particulars

No. of respondent

Most of the time

57

57

Some of the time

29

29

never

14

14

total

100

100

Chart no.11: chart is showing the staff are well-presented.

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35

staff well presented

14

most of the time

some of the time
never

29

57

Data analysis: almost 57% of people thinks that the staff is well presented in the restaurant, to some
extent 29% people thinks that staff is some time well-presented are rest of them thinks that the staff is
never well presented.
Data interpretation: most of the people attract to the staff presentation while some are not
12. Have you ever face a problem to find seat in restaurants?
Most of the time

some of the time

Never

Purpose: to know about the problem regarding finding seat.

Table no.12: showing about the problem regarding finding seat.

Particulars

No. of respondent

Most of the time

12

12

Some of the time

36

36

never

52

52

total
100
100
Chart no.12: chart is showing about the problem regarding finding seat.

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36

seat problem

12

most of the time

some of the time
never

52

36

Data analysis: almost 52% of the people dont occur seat problem while dining in the restaurant, but
36% of the people occur the problem sometime.

Data interpretation: most of the people dont occur seat problem in the restaurant.

13. When you dine in restaurant are you usually with?

Friends

Business associates

family

by yourself

Purpose: to know with whom you are dine mostly in the restaurant.
Table no.13: showing with whom you are dine mostly in the restaurant.
Particular

No. of respondents

friends

43

43

Business associates

11

11

family

35

35

By yourself

11

11

total

100

100
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37

Chart no.13: chart is showing with whom you are dining mostly in the restaurant.

dining
friends
11

business associates
family

43

by yourself

35
11

Data analysis: approximately 43% of the people like to have dine with their friends, while 35%
like to have dine with family.
Data interpretation: most of the people like to have dine with friends and family while other like
to have dine with business colleagues and by themselves.
14. Are you satisfied with the rate list?
Yes

No

Purpose: to know the satisfaction about the rate list.

Table no.14: showing the satisfaction about the rate list.
Particulars

No. of respondents

yes

77

77

No

23

23

Total

100

100

Chart no.14: chart is showing the satisfaction about the rate list.

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rate list

23

yes
no

77

Data analysis: almost 77% of the customers are satisfied about the rate list of the restaurant while
rests are not.
Data interpretation: considering about the rate list most of the customers are satisfied.

15. How do you pay your bill in the restaurant?

Cash

credit card

debit card

Purpose: to know how customers pay the bill.

Table no.15: showing how customers pay the bill.
Particular

No. of respondents

Cash

61

61

Credit card

13

13

Debit card

26

26

Total

100

100

Chart no.15: chart is showing how customers pay the bill.

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39

bill payement

cash

26

credit card
debit card
61

13

Data Analysis: more than 50% of the customers are like to pay the bill in cash whereas 26% of
customers pay their bill through debit card.
Data interpretation: most of the customer preferred to pay the bill in cash while others pay
through debit and credit card
16. Is sound or live band in the restaurant influence the customer to visit again in the restaurant?
Yes

No

Purpose: to know about the sound or live band influence the customer.
Table no.16: to know about the sound or live band influence the customer.
Particulars

No. of respondents

Yes

79

79

No

21

21

Total

100

100

Chart no. 16: showing the sound or live band influence the customer.

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sound or live band

21

yes
no

79

Data Analyses: almost 79% of the customer influenced by the live band or sound in the restaurant
while other doesnt bother.
Data Interpretation: Maximum customer need the live band or sound because of good environment
they want.

Findings
After analyzing the primary data which is collected from the sample with the help of questionnaire and
sensory evaluation form conclusion formed at this ground that:
Customer purchasing decision is mostly influenced by quality and taste of the product of the
restaurants in the area of study.
Customer shows a very good loyalty towards restaurant.
Customers are well aware of most of the restaurants.
Customers are more attract to the restaurants that have more offers.

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41

Conclusion
This study tells the current situation of market and consumer behavior towards the restaurants. The
study tells how customer influences by the environment of the various restaurants which attract them to
visit again. The study also states the customer satisfaction level regarding the various aspect of the
restaurant. The main factor which we came to know after researching is that rate list affects more to the
customer and the customers are mostly attracts to those restaurants who gave more offers and discounts
like Sagar Ratna and Bikanervala.

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42

Suggestions
On the basis of findings from the research made there are some points on which the company should
take care of:
Company should increase its food length in special items.
They should work on the improvement in the product quality and their unique selling proposition.
They should have increased their outlet chains to reach large number of customers as the maximum
buyers like to dine in.

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43

BIBLIOGRAPHY

Library Resources

1. Philip, K., "Marketing Management", Pearson Education

2. Schiffman, L.G., Kanuk, L.L., "Consumer Behaviour", Pearson Education
3. Barbara, O., "Brand Loyalty and lineage", Tata McGraw Hill
4. Bhandari. L., "Marketers Guide to Indian Consumers", Pearson Education
5. Kothari, C.R., Research Methodology: Method and Techniques, Wishwa Prakashan Pvt. Ltd
6. Singh, I., Kaushal, V., Research Methodology and Statistical Methods, Kalyani Publishers.

Internet Sources
1.
2.
3.
4.

http://radheoradhe.com/dubai/index.php?page=inner&event_id=17&title=About%20us
http://haveliheritage.net/haveli/about.php
http://motimahal.in/about-us/
http://www.sagarratna.in/about-us/

Questionnaire
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44

I am a student of Ramgarhia Institute of Engineering & technology, phagwara and I am

undertaking a project titled Customer Satisfaction regarding services of restaurants in
Jalandhar(with special refrence to Haveli, Sagar Ratna, Moti Mahal & Bikanervala) for my
MBA final research project. The following information is sought from you for academic purpose. I
will be grateful to you if you spare few minutes of your valuable time to answer the questions. The
information will be kept confidential. It will be of great help to me.

Personal Details
Name :- _______________________________________________________
Age:

under 16

Sex:

male

Type of work:

16-34

35-54

55 and over

female
managerial

administrative

clerical

student
Income of the respondent?
10000-20000

20000-30000

30000-40000

more than 40000

Questions
1. How many times do you usually eat in the restaurant?
More than three times a week

up to three times a week

once a week

hardly ever
2. When you eat in the restaurant, what type of food do you normally choose? (Tick each
one as appropriate)
starter

vegetables

desserts

hot main course

fried food

fresh fruit

vegetarian main course

salads

sandwiches

3. in how much time to get your order?

Within 10 min

10-20min

20-30min
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45

4. What kind of offer do you like?

Price discount

gift voucher

other

5. Do you considered the hygienic restaurant?

Yes

No

6. Thinking about value for money, how would you describe the food in general?
Good value for money

reasonable

bad

7. How would you describe the variety of foods ?

excellent

good

fair

poor

8. What improvements, if any, would you like to see in the variety of foods on offer?
---------------------------------------------------------------------------------------------------------------------------9. Are you concerned about the types of food you eat?
Most of the time

sometimes

never

10. Would you like more information about the ingredients used in our dishes?
Yes

No

11. Is the staff are well-presented?

Most of the time

some of the time

Never

12. When you dine at this type of restaurant are you usually with?
Friends

Business associates

family

17. Are you satisfied with the rate list?

Yes

No
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46

by yourself

other

18. How do you pay your bill in the restaurant?

Cash

credit card

debit card

19. Is sound or live band in the restaurant influence the customer to visit again in the restaurant?
Yes

No

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47