The Unique Brand Elements of 'Hotel Saravana Bhavan' - An International Restaurant Chain
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Case Code: BSTR458 Case Length: 13 Pages Period: 1981 - 2013 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.300 Organization: Hotel Saravana Bhavan Industry: Fast Food Industry Countries: India, Global Themes: Brand Management, Business Strategy, Entrepreneurship, Human Resource Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In August 2013, renowned Indian restaurant chain, Hotel Saravana Bhavan (HSB), opened an outlet in Frankfurt, Germany, thereby continuing with its international expansion. As of 2013, HSB had a presence in 12 countries through 46 outlets, including the US, Malaysia, France, Thailand, and Singapore.
The first HSB outlet was established in Chennai, India, in 1981 by Pitchai Rajagopal (Rajagopal). Rajagopal, who came from a humble background, was uneducated and had no experience in the restaurant industry. However, through HSB, Rajagopal offered a unique proposition in the South Indian restaurant industry of the 1980s – tasty food at modest prices, served in a hygienic environment by courteous staff.
Over the years, HSB became a great success and Rajagopal went on to open several outlets in India, primarily in cities such as Chennai and Delhi. HSB also diversified into other areas of the restaurant industry such as outdoor catering, home food delivery, and quick service restaurants, apart from offering HSB-branded ice creams, bakery products, and sweets. HSB made its international foray in 2001, its strategy being to target expatriate Indians in large cities who were on the lookout for authentic South Indian food.
A unique aspect of HSB was its practice of using the freshest ingredients in its food, which was made as per requirement. No leftovers were served. Through extensive study and customer feedback, Rajagopal ensured that his dishes had the right mix of ingredients to provide the best taste. Moreover, the restaurant chain had a policy of having its chefs specialize in a particular item, so that the food retained its standard flavor. Over time, HSB became renowned for the high quality and taste of its food, which came to be popularly referred to as the 'Saravana Bhavan taste'. HSB was also highly regarded for its focus on cleanliness and courteous service...
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