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Breaking Bread S2 E5 | Why is continuous innovation so important? | Deepinder Goyal ft. Varun Tuli

Zomato2024-03-29
9K views|5 months ago
💫 Short Summary

The speaker discusses the journey of opening and running a successful restaurant, emphasizing the importance of creativity, leadership, and adaptation in the competitive industry. They share insights on menu innovation, team building, training, and operational changes, highlighting the impact of COVID-19 on business operations. The speaker reflects on the shift towards delivery services, customer preferences, and healthier food choices. Despite challenges, the restaurant thrived during the pandemic, demonstrating resilience, flexibility, and community support. The future outlook for the restaurant industry is optimistic, with a focus on providing unique dining experiences and embracing evolving trends.

✨ Highlights
📊 Transcript
Opening of Yum Yum Tree restaurant in 2008 with a focus on unique Pan Asian cuisine.
02:38
Challenges of introducing a Chinese-only restaurant in a market accustomed to traditional Chinese, Japanese, and Thai options.
Emphasis on providing diverse menu options to attract customers and early interest in cooking.
Deliberate decision to keep the restaurant's name flexible to accommodate potential cuisine changes in the future.
Evolution of restaurant concept and operations at Yamcha.
06:50
Transition from large format to smaller format without alcohol or discounts.
Decision to ban top-selling dishes to encourage creativity and innovation among chefs.
Successful introduction of stone pots as a substitute for popular Haka noodles.
Stone pots innovation became a hit and gained popularity among customers.
Success in the Restaurant Industry
08:57
Restricting menu items to induce creativity and preferring small restaurants with no reservations.
Emphasizing the importance of sticking to their concept and being leaders in creating unique experiences.
Prioritizing a larger middle-level team despite criticism for high employee salaries.
Successfully maintaining a large, successful business in a competitive industry with a low mortality rate compared to the industry average.
Key Highlights of Starting a Restaurant Business
11:26
Education, talent, and hard work are essential for success in the restaurant industry.
Many entrepreneurs fail to assess their skills before starting a restaurant business.
In India, businesses often operate on borrowed money due to financial support from parents until age 25.
Starting small, learning from failures, and gradually increasing investment based on market insights are recommended strategies for success.
Importance of focusing on one location and ensuring product success before expanding.
15:51
Sticking to one cuisine for 10 years and outsourcing other cuisines as a strategy.
Building a team that aligns with core competencies and interests to delegate tasks like HR, legal, and finance.
Use of nepotism and hiring from the same community to create a cohesive team.
Rule of minimizing incoming calls to indicate efficient team performance.
Importance of Hands-On Training and Leading by Example in the Restaurant Industry.
18:19
Managers in the restaurant industry need practical skills and a comprehensive understanding of their job responsibilities.
On-the-job training is preferred over formal programs due to high turnover rates.
Starting from the basics and gradually building up skills is crucial for success.
Learning from mistakes and taking personal responsibility for tasks are emphasized in the culinary field.
Embracing change and adapting to new delivery services is crucial for growth in the restaurant industry.
21:53
Failures should be accepted as part of the learning process to facilitate growth.
Delegating decision-making responsibilities can lead to innovation and expansion.
COVID-19 has acted as a catalyst for transformation in the restaurant industry.
A more collaborative and open approach to business operations is necessary for success in today's market.
Importance of operational change in increasing talent and ability within an organization.
24:55
Operational change led to more freedom and decision-making for employees, resulting in growth.
Emphasis on building brands and implementing a semi-DIY concept for product delivery.
Example of 'tablespoon' brand development showing a shift towards creative freedom for employees.
Planning delivery products before dining products to ensure successful outcomes in delivery services.
Customer Behavior in Restaurants
29:32
Repeat orders make up 60-70% of total orders at restaurants, as customers prefer familiar dishes over trying new items.
Popular dishes are often ordered up to 10 times a year and may continue to be ordered once or twice a year for several years.
The focus when creating new dishes is to surpass the popularity of existing top-selling items to boost overall category sales.
Business growth during COVID-19 pandemic.
32:15
Increase in delivery orders led to tripled revenue.
Increased customer trust resulted in more frequent and larger orders.
Crisis presented an opportunity for growth and personal reflection.
Speaker shared experience of salary cuts and employee involvement in decision-making during lockdown.
Restaurant implemented voluntary salary cuts during lockdown but turned a profit.
36:15
Cut salaries were repaid in following months, reflecting positive outlook.
Team efforts and community support were key to success during challenging time.
Growth seen in both dining and delivery, with delivery encouraging more people to dine out.
Consumption expected to rise exponentially in India, transforming aspirational brands into everyday ones.
Emphasis on the Future of Dining and Delivery Services.
39:51
The speaker believes that dining out will always offer a superior food experience compared to delivery.
However, they recognize that delivery is becoming more of a necessity in today's world.
People are now looking for ambiance, experience, and celebration when dining out.
There is a growing trend of ordering food that people actually enjoy eating, rather than just aspirational dishes.
Shift in Indian culture towards ordering food from restaurants over cooking at home.
45:41
Convenience and genetic inclination for calorie preservation drive this change.
Young couples moving to new cities lack household help, increasing reliance on food delivery services.
Emphasis on community and social dining experiences in Indian culture.
Trend signifies a move towards a more relaxed and convenience-driven lifestyle.
The impact of portion sizes on delivery culture, influenced by apps like Blinket.
47:03
Household's preference for healthier options like vegetables and grilled meats in frequent orders.
Connection between wheat, sugar, and health issues like diabetes, prompting a shift towards healthier eating habits.
Changing perceptions of dishes like sandwiches and burgers from accompaniments to main courses.
Emphasis on educating and training people on healthier food choices, promoting brown bread over white bread.
Customer choices in food options are crucial, emphasizing the importance of variety and alternatives.
51:40
There is a trend towards low-carb or wheat-based dishes among customers.
Catering to different dietary preferences, including vegetarian, non-vegetarian, and egg-based meals, is essential.
Challenges include collecting data on dish preferences and educating users.
Despite potential revenue implications, the focus is on providing healthier choices and accommodating diverse needs.
Emphasis on Quality Work Over Specific Metrics.
54:10
The team aims to do the best work possible without setting specific goals or targets for the next quarter.
They prioritize pushing themselves to their limits rather than focusing on revenue or profit metrics.
The main focus is on delivering high-quality work and exceeding expectations without being bound by specific numerical targets.