Oct-Nov ’13
Hammer Food & Beverage Business Review
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E d i t o r i a l
Publisher cum Editor Rajneesh Sharma rajneeshhammer@gmail.com
Associate Editor Swarnendu Biswas Resident Editor Sharmila Chand (Delhi) Ashok Malkani (Mumbai) Layout & Design Hari Kumar. V Narender Kumar Advertising Sales Delhi: Debabrata Nath, Sumesh Sharma Mumbai: Rajesh Tupsakhre Subscription sales Dattaram Gangurde Director Sales Sanjay Anand Director Operations & Finance Rajat Taneja Editorial & Advertising Offices: Delhi: Hammer Publishers Pvt. Ltd. 1202, Pragati Tower, 26, Rajindra Place, New Delhi-110008 Phone: 91-11-45084903, 25854103 Telefax: 91-11-25854105 Mumbai: Hammer Publishers Pvt. Ltd. 105, 1st Floor, Aarpee Centre, Gufic Compound, 11th Road, MIDC, Near Tunga Paradise, Andheri (E), Mumbai-400093 Ph.: 022-28395833 Telefax: 022-28388947
Website: www.fbrmag.com E-mail: hammerpublishers@vsnl.net © 2013 Hammer Publishers Pvt. Ltd. No article can be reproduced in part or as whole without prior permission of the Publisher. Hammer Food & Beverage Business Review is a bi-monthly magazine, printed, owned and published by Rajneesh Sharma from 302, Himgiri Apartments, J-Block, Vikaspuri, New Delhi. Printed at Age of Enlightenment Publications, Green Fields Colony, Faridabad, Haryana. Annual Subscription rate within India is Rs. 450 and overseas US $110, for surface mail. Single issue is available for Rs. 90 in India and US $25 overseas. Cheques are payable to Hammer Publishers Pvt. Ltd. Editorial Policy: Editorial emphasis in Hammer Food & Beverage Business Review magazine is on educational & informational material specifically designed to assist those responsible for managing institutional food & beverage business. Articles are welcome and will be published on the sole discretion of the editor.
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Indian restaurant going crowd is getting interested in a variety of exotic cuisines, which is reflected in their rising popularity. However, the Portuguese cuisine has not yet managed to garner the pan-Indian popularity that it richly deserves. Except in Goa, Portuguese cuisine has been largely ignored by the gourmets across India, till the recent years. However, recently Portuguese cuisine is gaining popularity in Mumbai. With innovative marketing and promotion, Portuguese cuisine has great potential to attract popularity in Kolkata, as fish plays major role in Portuguese cuisine. The huge variety of seafood offerings from Portugal can also appeal to the non-vegetarian Indian palates, which are spread across the Indian geography. The variety of delectable vegetarian dishes and sumptuous desserts from Portugal can induce the huge population of vegetarian eating out crowd in India, and contribute to the burgeoning bakery business of the country, respectively, only if Portuguese cuisine manages to attract more widespread popularity across India. Indian bakery business, which seems to be perpetually depending on innovative products, would be enriched if Pastel da nata, Bola de Berlim, Arroz Doce, etc. began adorning the stand-alone bakery counters and as well as the coffee café chains across urban India, with greater frequency and abundance. However, to make Portuguese cuisine more popular in India, or to make Indians get to appreciate the authentic tastes and flavours from Portugal in a big way, we need more enterprising restaurateurs who would be willing to take the risk of exploring a relatively unexplored culinary realm in India. They should be willing to extend the gastronomic profile of an evolving Indian palate, rather than simply following the trends. We have attempted to comprehensively discuss the character of Portuguese cuisine and the varied culinary influences which have helped to shape its present character through centuries, in our Cover Story. India’s retail industry presents a bright scenario and a huge potential. The total retail sales in the country are expected to enhance from $395.96 billion in 2011 to $785.12 billion in 2015. Even a decade back, India’s food & beverage retail scenario was almost completely unorganised in character. Even today it may be largely unorganised, but at the same time there is no denying the fact that the increasing presence of organised retailing through supermarkets and hypermarkets is supplementing our small grocery stores, which in turn is sprucing up the retail landscape of the country. The large supermarkets and hypermarkets can also pose huge competition to the small grocery stores and even threaten the latter’s survival in some cases. But ensuring decent footfalls in retail business, where F&B products play a major role, requires careful consideration of several factors. These factors, which are discussed in our Business Story, have more relevance in the survival and success of supermarkets and hypermarkets/malls than in the unorganised retail enterprises, though in small grocery stores too taking into account of these factors can contribute to the success of the business operations. Besides these, we have also covered a gamut of issues that may attract the industry, ranging from increasing relevance of vegetarianism to the exploration of the possibility of a substitute for food, to the current pangs of agri-inflation, to the interesting history of burger. We hope our readers would find enough food for thought between the covers.
Hammer Food & Beverage Business Review
Oct-Nov ’13
CONTENTS
Cover Story
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The Tastes and Flavours from Portugal
Business
44
Leveraging Sales From Retail
Feature
50
The Need for Sustainable Eating
Bakery
58
For Success in Bakery Business
Beverage
66
Towards Syrupy Success
Theme Cuisine
72
Globalisation of Tastes
Operations Managing Food Costs in Restaurants
Oct-Nov ’13
Hammer Food & Beverage Business Review
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Departments Event
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News
12
Report
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Agri
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Product
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Pub
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Restaurant Review
76
Chef Voice
78
Profile
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Hygiene
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Product Preview
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Business Opportunity
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Interview
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EVENT
Dairy Universe India & Sweet & SnackTec India T
he 8th edition of Dairy Universe India: International Exhibition on Dairy Processing, Packaging & Distribution Technology, Equipment & Supplies, and Sweet & SnackTec India: International Exhibition on Sweet & Snack Processing and Packaging Technology, Equipment & Supplies will be organised concurrent to each other during 10th- 12th December 2013 at the Gujarat University Convention and Exhibition Centre, Ahmedabad. Over the years, both the exhibitions have become two of the most important platforms for the suppliers to the dairy, sweet, snack & confectionary manufacturing industry to showcase their latest technological offerings to ‘who’s who’ of the respective sectors. ○
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11th December 2013, with the theme ‘Quality Initiatives in Dairy Value Chain (from Producer to Consumer)’, which will be organised by Indian Dairy Association —Gujarat State Chapter and Mansinhbhai Institute of Dairy & Food Technology, in association with Koelnmesse YA Tradefair Pvt. Ltd. The concurrent seminars will also include a one day seminar on 11th December 2013 with the theme ‘Emerging Global Trends in Ice Cream Industry’. It will be organised jointly by the Indian Ice Cream Manufacturers Association (IICMA) and Koelnmesse YA Tradefair Pvt. Ltd. For further details, please visit: www.dairyuniverseindia.com / www.sweetandsnacktecindia.com
As Gujarat is one of the major manufacturing hubs for sweets and snacks manufacturing, and a pioneer in operating dairy cooperatives and as sweets and snacks are a significant part of the food habits of the people of Gujarat, the state becomes the perfect place to host these trade fairs. Over 150 companies will showcase latest technological offerings pertaining to the dairy, sweets, snacks and confectionary industry at the event. There would be exhibitor participation from around 16 countries. Live demonstration of machines and equipments, concurrent seminars on focused topics will be highlights of the event. The concurrent seminars at the event will be a two day seminar during 10th-
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Fi & Hi India 2013:
The Right Platform for the Indian F&B Industry
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a platform for a varied range of product enhancements and ingredient solutions, UBM India has presented Fi & Hi India 2013.” “This specialised food ingredients event focuses on innovation and consumer trends, providing a platform for key professionals from around the world to link to the exciting Indian market,” he pointed out. Fi & Hi India 2013 was inaugurated by Tariq Anwar, Minister of State for Agriculture and Food Processing Industries, Government of India. Also part of the ceremony were dignitaries such as Ajit Singh, Chairman, ACG Worldwide; Piruz Khambatta, CMD, Rasna International; Chitranjan Dar, CEO, ITC Foods; and Dr. Kalyan Goswami, Secretary General, AIFPA. During his inaugural address, Anwar said, “In the emerging global scenario, to meet the needs of the booming food processing sector, it is important that India gears itself to meet the domestic as well as international standards. The Indian food industry is currently employing 13 million workers and the companies in the food sector contribute 13 percent of the country ’s exports. The Government of India is setting up food testing
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Hammer Food & Beverage Business Review
ndia is fast emerging as one of the most sought after destinations for food investments. As per a finding by the Government of India, the Indian food industry is currently growing at an annual rate of 13 percent and is valued at 135 billion USD; this number is estimated to reach 200 billion USD by 2015. The impressive growth in the Indian food and beverages industry has greatly contributed to a broad range of leading local, national and international ingredient suppliers to showcase their products and solutions at Fi & Hi India 2013, which was held at Bombay Convention and Exhibition Centre, Goregaon, Mumbai, during 3rd – 5th October 2013. The event was organised by UBM India. Here it deserves a mention that launched in 2006, Fi & Hi India has been a major driving force behind India’s processed food sector. Joji George, Managing Director, UBM India, said, “Today ’s global consumers are demanding food and drinks which are low in salt and calories, consisting of fibre, are sustainably sourced and above all involve use of natural preservatives. In order to suit the changing tastes of the consumers and to be
laboratories, storages, etc. for processing food ingredients to ensure food safety. Fi & Hi India 2013 is giving companies a platform to showcase their innovative techniques and solutions in the food processing industry.” The 2013 edition of Fi & Hi India 2013 had several features which provided both regional and global food professionals with the opportunity to learn about the latest industry developments, and meet new business prospects. This edition of the event presented three days of premium onsite seminars, addressed by internationally renowned industry gurus such as Prabodh Halde (Marico), Dalbir Wariah (ITC Foods), C.M.Reddy (British Biologicals), and Vijayabhaskar Reddy (Dabur India). The eighth edition of the event was supported by AIFPA (All India Food Processors’ Association), HADSA (Health Foods and Dietary Supplements Association), Association of Food Scientists and Technologists of India — Mumbai Chapter (AFSTI), Society of Indian Bakers (SIB), and Pharmexcil (Pharmaceuticals Export Promotion Council of India, set up by the Ministry of Commerce & Industry, Government of India).
Oct-Nov ’13
EVENT
Spreading Awareness on
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European Gastronomy
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B
etween September and October 2013 the van of the European Wellness Parade was again seen on the Indian roads, with the aim of spreading awareness about the Mediterranean diet and the qualities of the European food & beverage products among Indian end consumers. The caravan was stationed in Pune on the 22nd and 23rd of September. It continued its travel to Mumbai, where it stayed on the 28th and the 29th of September. The caravan’s tour was culminated in Panjim (Goa), where it stayed on the 5th and 6th of October. Visitors participated in five different and interactive activities, each of them related to one of the five senses. Games attracted the attention and participation of people from all ages One can say that these road shows were innovative ways of introducing the Mediterranean diet to the Indian consumers. This activity, which has already been introduced in six different cities in India, is part of the program named European Quality Food: Eating With Your Five Senses, a programme financed by the European Commission, the Spanish Ministry of Agriculture, Food and Environment and FIAB — the Spanish Food and Drink Industry Federation. This above-mentioned program has a double approach as it targets both the end consumers and F&B professionals in the country. This is a multi-product promotional programme which begun in March 2012 with a budget of more than a million Euros for the three foreseen years of duration. Each year five activities are organised that target different identified consumer profiles. Here it deserves a mention that this promotional programme has been developed while taking into account the identified potential that the Indian F&B market presently has. The program has three main goals: They are to increase the awareness about European food & beverage products in India and emphasise on the value of the European gastronomic culture, with a particular emphasis on the Mediterranean diet, in India. The logic of the programme is based on the premise that a deeper familiarity with the European gastronomic culture in India will increase the consumption of European food & beverage products in the country and eventually, it will facilitate the exports for the European food and beverage industry to India. The other objective of the program is to increase the desire to consume European food & beverage products and create a good positioning of the same among targeted consumers in India. The program is also guided by the objective of increasing the knowledge among F&B professionals in India on European gastronomy and European food & beverage products. Here it deserves a mention that the European Union is nowadays one of the main suppliers of food products in India and its different cuisine traditions have indeed a very good reputation in the country.
Hammer Food & Beverage Business Review
Oct-Nov ’13
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E V E N T S’ C A L E N D E R
Hotel Expo 2013 20-22 November 2013 The Venetian Macao www.hotel-exhibition.com Sweet and SnackTec India 2013 10-12 December 2013 Gujrat University Convention & Exhibition Centre, Narangpura, Ahmedabad www.sweetandsnacktecindia.com Fine Food India 11-13 December 2013 Pragati Maidan, New Delhi www.finefoodindiaexpo.com Hotel Investment Forum India 14-15 January 2014 The Leela Kempinski Gurgaon www.hifi-india.com
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HBF 2013 15-17 November 2013 HITEX Exhibition Centre, Hyderabad www.hbf.co.in
Aahar 2014 10-14 March 2014 Pragati Maidan, New Delhi www.aaharinternationalfair.com
Name
Fratelli Wines Fratelli Wines
Sub Region
Region
Vintage
Medal
Chenin Blanc
Baramati, Maharashtra
2013
Commended
Sette VII
Baramati, Maharashtra
2010
Silver
HOSTECH by Tusid 12-16 March 2014 Istanbul, Turkey www.hostechbytusid.com
Art Collection Rosé
Nandi Hills
Bangalore
2013
Bronze
Grover Vineyards
La Reserve
Nandi Hills
Bangalore
2011
Bronze
Grover Vineyards
Art Collection Sauvignon Blanc
Nandi Hills
Bangalore
2013
Bronze
Grover Vineyards
Art Collection Cabernet Shiraz
Nandi Hills
Bangalore
2011
Commended
Nashik
Sula Zinfandel
Nasik
2012
Bronze
Ritu
Sauvignon Blanc
2013
Bronze
EDT Expo 27-30 March 2014 Istanbul, Turkey www.cnredtexpo.com
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Rasa Shiraz
Nasik
2011
Bronze
Chenin Blanc
Nasik
2012
Commended
Sula Vineyards
Dindori Reserve Shiraz
Nasik
2012
Commended
Vallonné Vineyards
Cabernet Sauvignon Classique
Nasik
2009
Bronze
Vallonné Vineyards
Malbec
Nasik
2011
Bronze
Zampa
Soirée Brut
Bangalore
NV
Bronze
Hotelex 2014 31 March - 03 April 2014 Shanghai New International Exhibition Center, Shanghai, China www.hotelex.cn Alimentaria 2014 31 March - 3 April 2014 Fira de Barcelona, Barcelona, Spain www.alimentaria-bcn.com
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Nashik
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Sula Vineyards Sula Vineyards
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Sahyadri Valley Baramati, Maharashtra
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Grover Vineyards
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Producer
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Wines From India Which Won at Decanter Asia Wine Awards 2013
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India has been awarded a total of 14 medals in the Decanter Asia Wine Awards (DAWA) this year. The 2013 edition of the wine competition received more than 2,300 entries from around the world, with a total of 2,023 medal winners. Launched in 2012 by Decanter magazine, this was the second edition of Decanter Asia Wine Awards. Here it deserves a mention that Decanter magazine is sold in 92 countries. Decanter Asia Wine Awards is now regarded as the largest wine competition in Asia. In the 2013 edition of the competition, there were 39 Regional Trophy winners, 45 Gold medal winners, 369 Silver medal winners, 985 Bronze medal winners, and 585 Commended medal winners. The Decanter Asia Wine Awards aims to recognise quality wines and to provide consumers across Asia with a trusted source of recommendations. Co-chaired by Jeannie Cho Lee MW, the first Asian Master of Wine and a Contributing Editor to Decanter, and Steven Spurrier, Chairman of the Decanter World Wine Awards and Decanter’s Consultant Editor, judging took place in Hong Kong during 16 -19 September. Over 40 top wine experts across Asia comprised the professional judging panel. All wines were judged through blind tasting. The blind tasting of wines was organised in flights to ensure the very best tasting conditions. Among the 14 medals awarded to India, the country has secured one Silver, nine Bronze and four Commended medals. The Silver medal has been awarded to Fratelli Wines, Sette VII, Baramati, Maharashtra 2010. In the Bronze category, medal winners from India are dominated by wines from Bangalore and Nasik. “We would like to congratulate all winners in the Decanter Asia Wine Awards,” said Sarah Kemp, Decanter’s Publishing Director. “All wines were tasted blind and judged by a panel of Asia’s finest palates, and only those which represent outstanding quality are endorsed with a Decanter Asia Wine Award medal,” she pointed out.
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Fourteen Medals for India at Decanter Asia Wine Awards
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EVENT
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Hammer Food & Beverage Business Review
Oct-Nov ’13
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EVENT
A Mega Event for F&B Trade Concludes Annapoorna World of Food India 2013 was organised during 23rd-25th September 2013 in Mumbai by Koelnmesse YA Tradefair Pvt. Ltd. and Federation of Indian Chamber of Commerce & Industry (FICCI). The venue of the 8th edition of the event was Bombay Exhibition Center, Goregaon(E). The renowned food & beverage trade show attracted 6334 trade visitors comprising leading food & beverage retailers and importers from India and neighbouring countries, important government officials and international trade delegations. The trade visitors came from 34 countries. 177 companies from 16 countries presented their exhibits at the event. Annapoorna World of Food India has emerged as one of the most sought after trade fairs for a wide range of food and beverages and as an outstanding platform for the who’s who of the food & beverage industry for acquiring information, placing orders and networking. A series of live cooking sessions by a television channel dedicated to food, named FOODFOOD, was organised on the first two days of the fair. The sessions were well attended and appreciated by both visitors and exhibitors. The trade fair also had a European Kitchen Pavilion, which was part of the program titled ‘European Quality Food: Eating with your Five Senses.’ The
program has been organised to promote European quality food in India. The 7th edition of Food World India conference was organised concurrently with Annapoorna World of Food India 2013, in Mumbai, during 24th -25th September 2013. Eminent speakers like K. Chandarmouli, Chairman, Food Safety & Standards Authority of India, Dr. Samuel Godefroy, Vice Chair — Codex Alimentarius Commission & Director General, Food Directorate, Health Canada, Martijn Weijtens, Chair, Codex Committee on Contaminants in Foods & Acting Deputy Director of the Department of Food Quality, The Netherlands, Dr. Mary Frances Lowe, US Codex Manager, US Department of Agriculture, Siraj Chaudhry, Chairman, FICCI Food Processing Committee & Chairman, Cargill India, Sangeeta Pendurkar, Co-chair, FICCI Food Processing Committee & Managing Director, Kellogg India, Geetu Verma, Executive Director, Foods, Hindustan Unilever Ltd., Chitranjan Dar, CEO, Food Division, ITC Ltd., Venkatesh Kini, Deputy President —India & South West Asia, The Coca-Cola Company, shared their knowledge and expertise during that conference. The next edition of Annapoorna World of Food India is scheduled to be organised during 24th-26th September 2014, in Mumbai. The next edition of Annapoorna World of Food India is expected to be still bigger and better as apart from the food & beverage trade, the event will also focus on the food service sector by having International FoodService India as its concurrent fair.
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Hammer Food & Beverage Business Review
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Jazeera Recreates the Tastes of the Mughal Era In the recent past, Jazeera Hospitality Pvt. Ltd. has launched a chain of fine dining authentic Mughlai cuisine restaurants that revisit the gastronomic culture of the Mughal era and brings across the culinary opulence of the period, for today’s India to savour. The launch was attended by film personalities, Raza Murad, Kirron Kher and Huma Qureshi. Renowned politicians, bureaucrats, technocrats and other celebrities too came to the launch party. According to M. Zahid, the Chairman & Managing Director, Jazeera Hospitality
Pvt. Ltd., “Our recipes have been derived from ancient manuscripts — the Akbarnama, Ain-iAkbari, Alwan-eNemat, Rukat-eAlamgiri and Ni’amatnamah which detail the culinary preferences of the Mughal emperors.” He informed that “As per these manuscripts, gold and silver pellets were fed to the chickens, goats and sheep so that their medical properties were passed on to those relishing the cuisine. And as Akbar was vegetarian three times a week, he had his own kitchen garden wherein vegetables were sprinkled with rosewater such that they possess fragrance when cooked.” Now Jazeera endeavours to recreate that rich culinary history. “Taking a cue from this, Jazeera has done backward integration and established its own livestock breeding facilities and vegetation fields. There livestock are fed with enriched food products and vegetables are indeed sprinkled with rosewater for enhancing their taste and health benefits. Not to forget the ingredients and garnishing which would be as exotic as in those times so that the exquisiteness of the dishes is not lost in any way, form or manner. The taste is bound to stay on and will make people come back,” explained Zahid. Besides the renaissance of the long-forgotten culinary techniques of the Mughal kitchens by expert Chefs, even the ambience of the outlets shall reflect the life and times of the Mughal dynasty. In the first phase, Jazeera is coming up with ten restaurants – three in Delhi; one each in satellite towns of Noida and Gurgaon; and one each in Meerut, Lucknow, Agra, Jaipur and Chandigarh. In the second phase, Jazeera Hospitality shall be increasing the count in Delhi & NCR, besides opening branches in Mumbai and select cities of Uttar Pradesh and Punjab. “A few years down the line, our target is to come up with 100 branches. This may sound a little audacious as of now, however I believe it is achievable. Initially, the focus shall be on north India but eventually we shall make a foray in other regions and international market as well,” added M. Zahid.
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Hammer Food & Beverage Business Review
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NEWS SCAN
A Journey Through Flavours Tarla Dalal (1936-2013), the renowned writer of best selling cookery books, the celebrity Chef, and the host of popular cookery shows on television, passed away on 6th November, following a heart attack. She could be credited with giving cookbook writing its much deserved respectability in the Indian publishing industry. Within three decades, she has completely changed the landscape of culinary writing in India. Born in Pune, she began displaying her culinary predilection from the age of 12, when she was helping her mother with her everyday cooking at home. Her professional journey in the culinary world began when she started taking cooking classes, way back in 1966. She began with six students at her home in Mumbai, but soon the popularity of her cooking classes increased greatly, and young girls and mothers were queuing up to join her classes. The success of her cookery classes, spruced with the encouragement from her husband who suggested her to write a cookery book to reach more people, eventually paved the way for her maiden book in 1974. It was named ‘The Pleasures Of Vegetarian Cooking’ and it was a huge success, garnering sales of over 1,50,000 copies. Since then there was no looking back for the first culinary diva of modern India. During her illustrious journey through the varied tastes and flavours, Tarla Dalal penned 170 titles, several of which have been translated in various languages which not only include Hindi, Gujarati, Marathi, Bengali, but also Dutch and Russian.
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The total sales from her cookery books exceed 6 million copies. Her renowned cookery show ‘Cook It Up with Tarla Dalal’ was aired weekly on Sony Entertainment Television for three years. Her other famous cookery show was the ‘Tarla Dalal Show.’ Tarla Dalal’s visionary enterprise is also being manifested in one of the biggest food websites in India, and a bi-monthly magazine named Cooking & More. In 2007, she started her ‘Total Health Series’ of cookbooks, which comprises health-related cookbooks with recipes and information. This holistic series offers delicious and healthy recipe options for all, with books such as The Pregnancy Cookbook, Baby and Toddler Food, Delicious Diabetic Recipes, Fast Foods Made Healthy, Healthy Soups and Salads, Exotic Diabetic Cooking, etc In the same year, that is in 2007, she was awarded Padma Shri by the Government of India. She was also awarded Women of the Year by Indian Merchants’ Chamber, in 2005. Today the great lady is no more, but her legacy of work, which includes more than 17,000 recipes created by her, lives on.
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NEWS SCAN
Britannia Shows Huge Escalation in Net Profit for Q2
Parle Agro Re-enters the Carbonated Soft Drinks Market
The net profit for the second quarter of the Britannia Industries has escalated by 65.7 percent, as compared to the net profit of the company during the same period of the last financial year. The company’s consolidated net profit for the second quarter of the ongoing financial year reached Rs.97.7 crore, whereas during the same period (during the second quarter) of the last financial year, Britannia Industries’ consolidated net profit was only Rs.59.02 crore. The second quarter of the current financial year (July-September quarter) ended on 30 th September 2013. Here it deserves a mention that during this financial year, Britannia Industries has registered a second consecutive increase in its quarterly profit. Increase in sales and margins could be attributed to the huge growth in net profit of the company during the current financial year’s Q2, as compared to the corresponding period of the last financial year. The net sales of the food products conglomerate also experienced an escalation of 12.82 percent during the second quarter of this ongoing financial year, as compared to the corresponding period in the last financial year. In the current financial year’s Q2, the Britannia Industries’ net sales reached Rs.1740.48 crore as compared to Rs.1542.67 crore in the Q2 of the last financial year. All these impressive figures indicate a good demand for quality bakery and snacks products in India.
Recently, the FMCG giant Parle Agro has reentered the carbonated soft drinks segment after nearly two decades, with Café Cuba. It is probably the first coffee-flavoured carbonated beverage of the country. The drink smoothly combines the flavour of roasted coffee beans with strong carbonated fizz. It is a soft beverage targeted towards consumers with more evolved tastes. The product is currently available in 250ml cans and is priced at Rs.20. Presently, the product is present across the general trade/retail segment and will soon be visible in modern trade outlets, corporate and college canteens, multiplexes, airports, bars/ clubs and restaurants. Parle Agro expects this newly launched coffee drink to register sales of Rs 1000 crore during the first 12-18 months of its launch. Presently, the carbonated soft drinks market in India is Rs.15,000 crore, where Café Cuba is likely to make an impact in the near future.
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NEWS SCAN
An Award for Copper Chimney Copper Chimney, an important restaurant chain having presence in Mumbai, Bengaluru and Raipur, has won the award for ‘Best Indian Cuisine Restaurant Chain – National’ at the Indian Restaurants Awards 2013, held in New Delhi recently. A venture of Pan India Food Solutions, Copper Chimney epitomises contemporary dining experience, serving an eclectic mix of popular Indian flavours and diverse cuisines. Instantly recognised by the hand-crafted copper bells that adorn all the Copper Chimney outlets, over the last
four decades of its success and growth, Copper Chimney brand has managed to recreate the rustic charm of the Northern Western province and Punjab’s famed roadside dhabas. KS Narayanan, CEO Blue Foods stated, “Copper Chimney brand is widely loved, praised and has a legacy of four decades. We are excited to bag this prestigious award, which is due to the consistent efforts put together by our team to ensure consistency in food & service at the highest level,” while adding, “We would further strive to excel and to provide similar & even better service for all our endeavours ahead.” ○
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Tata Starbucks Celebrates its First Anniversary in India Tata Starbucks Limited, the 50/50 joint venture between Starbucks Coffee Company and Tata Global Beverages Limited, is celebrating its first anniversary in the Indian market. To celebrate its India journey, the company has created a special India sourced coffee, aptly named India Estates Blend, as a tribute to its customers, partners, coffee producers and roasters. “We are delighted to celebrate our one year anniversary in India and introduce in our portfolio for the first time a whole bean coffee that is sourced, roasted, packaged and sold in India,” said John Culver, Group President, Starbucks China and Asia Pacific, Channel Development and Emerging Brands. “We have a long-term commitment to work closely with the coffee growing communities where we do business and to elevate the awareness of high-quality arabica coffee in India. This is a proud moment for our partners as we honour India’s long-standing coffee heritage and commemorate this historic milestone in the early days of our India journey,” he pointed out. “As a tribute to our customers, partners and the coffee growers and roasters here in India, we are very proud to launch India Estates Blend, which has been developed thoughtfully along with Tata Coffee, specifically for the Indian market,” said Avani Davda, CEO, Tata Starbucks Limited. India Estates Blend captures the essence and rich heritage of the Indian coffee history and draws inspiration from the finest arabica beans which have been carefully selected from Tata Coffee’s estates, spread across Coorg and Chickmagalur This country-specific blend creates a fine balance between herbal and chocolate notes; perfect for sharing with friends and neighbours. The blend’s packaging has been carefully created to reflect the nuances of traditional Indian designs. Here it deserves a mention that Starbucks entered the Indian market in October 2012 and currently operates twenty five stores in India across Mumbai, Delhi NCR and Pune. Starbucks stores are operated by the joint venture, Tata Starbucks Limited, and branded as Starbucks Coffee - “A Tata Alliance.”
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Hammer Food & Beverage Business Review
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Oct-Nov ’13
Hammer Food & Beverage Business Review
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The Middleby Corporation Acquires Celfrost The Middleby Corporation has announced the acquisition of the commercial refrigeration and food service products business of Celfrost Innovations Pvt. Ltd. The Celfrost’s business was acquired by Middleby’s newly established entity in India, Middleby Commercial Food Innovations Pvt. Ltd. The Middleby Corporation is a global leader in the food service equipment industry. The company develops, manufactures, markets and services a broad line of equipment used in the commercial, industrial processing and residential markets. Here it deserves a mention that Celfrost is recognised in the country as a preferred commercial foodservice equipment supplier with a broad line of cold side products such as professional refrigerators, cold rooms, ice machines and freezers, marketed under the Celfrost brand. Celfrost has been a leading supplier of equipment to many of the fast growing restaurant chains and hotel groups. Celfrost has annual sales of approximately $20 million and is based in Gurgaon, India. “With the acquisition of Celfrost, Middleby will strengthen its presence in the fast growing market of India and expand our commercial foodservice product offerings in India to include complementary cold side products alongside our cooking and warming brands,” said Selim A. Bassoul, Chairman and CEO of The Middleby Corporation. “Celfrost has an extensive marketing and service network in India, including 15 brand centers that we will strategically leverage to support Middleby’s entire portfolio of brands in the market,” he expressed. “We are also excited about the opportunity to introduce the Celfrost brand and portfolio of products into other emerging markets, by utilising Middleby’s existing sales and marketing infrastructure,” pointed out Neeraj Seth, Celfrost’s Managing Director. “This change will also allow us to tap into Middleby’s global network and resources, enabling a further acceleration of our growth,” he added.
Arcux and Perlick Join Hands The New Delhi-based Arcux Bar Zone has been named as the exclusive distributor for commercial products manufactured and distributed by Perlick Corporation, based in Milwaukee, Wisconsin, US. Here it deserves a mention that Arcux Bar Zone is a bar specialist company providing innovative and bespoke bar design from brief to build. Perlick Corporation is a leader in the US market in comprehensive package bar and beverage systems manufacturing, including custom refrigeration equipment, custom underbar equipment, beer dispensing equipment and brewery fittings. The agreement between the two companies emphasises their planned cooperation and business partnership. Arcux Bar Zone will be responsible for marketing, sales, installation and after-sales support of Perlick’s commercial products for the Indian region. In exchange, Perlick will provide all required training to Arcux and will extend support in creating an effective dealership network for the entire territory. The exclusive distribution agreement is expected to help increase the market share for Perlick’s products and implement the needed dealership, after-sales support and service network. Opportunities for Perlick and Arcux Bar Zone are expected to continue to grow in the Indian market, and the two companies look forward to great success within the hospitality industry in the region. “Perlick’s innovative commercial products offer great solutions for professional bars, restaurants, hotel and stadium owners and operators. Perlick’s brand awareness in India is continually growing, and this exclusive agreement for the Indian market will help us further market and establish these high quality products in our territory,” says Parikshit Kakkar, Managing Director, Arcux Bar Zone Pvt. Ltd. “We look forward to working with Arcux Bar Zone to expand our presence in the Indian market,” said Tim Ebner, Vice President of Marketing & Business Development for Perlick, while pointing out that, “It is an exciting time for growth in this market, and we feel confident that Arcux Bar Zone offers comprehensive and competitive services, which we need to build our brand awareness and loyalty in this territory.”
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Hammer Food & Beverage Business Review
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NEWS SCAN
Carat to Enhance the Feel of Chocolate into the Indian market. Another advantage of Carat to the Indian consumers is reasonable pricing. To reduce the cost price, Puratos India imports premium quality raw material and manufactures the product locally in India at their state-of-the-art R & D unit, while maintaining its quality,” explained Dhiren Kanwar, Country Head, Puratos India. By doing so, Puratos India has given a perfect solution to those customers, who are ready to upgrade their product quality, but are price sensitive at the same time. Also, those customers who never compromised on the quality can get quality products, but at a reasonable price. Puratos, a global player in ingredients for bakery, patisserie and chocolatier markets, did announce Carat as the product of the month for Oct 2013. Engineered in Belgium, Carat, a brand new offering from Puratos, is a unique product made to give an extra chocolaty touch to patisserie, bakery, biscuit, ice-cream and chocolate creations. Its exquisite cocoa taste facilitates to give a wonderful effect to the preparations it has been used in. Carat is a compound chocolate with great taste experience, thanks to the intense flavour of the specially selected cocoa powders. Here it deserves a mention that Puratos India has launched close to 75 products in the span of five years in India and will continue to grow the portfolio. Puratos sells products in over 100 countries around the world. “Along with Carat’s remarkable taste, the efficiency of the Puratos India team was also responsible for its successful entry
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FHRAI Elects its New President S M Shervani has been elected as the President of the Federation of Hotel & Restaurant Associations of India (FHRAI), for 2013-14. The election took place after the 57th Annual General Meeting (AGM) of the association, in New Delhi. There was also the election of a new Executive Committee. Shervani succeeds Vivek Nair to the position of President, FHRAI. Nair has been appointed as the new Honorary Secretary of the FHRAI, for 2013-14. Shervani has had the distinction of being the President of the Hotel & Restaurant Association of Northern India (201012), the Vice-President of FHRAI (2010-11 and 2011-12) and Honorary Treasurer of FHRAI (2012-13). A highly successful hospitality entrepreneur with over 25 years of rich experience, Shervani is the Managing Director of Shervani Hospitalities Ltd., which owns and operates a chain of boutique hotels and the iconic ‘Rodeo’ restaurant. He is an alumni of the Pusa Institute of Hotel Management, New Delhi. He is also a member of the Hotel & Catering International Management Association (HCIMA), UK. He informed Hammer Publishers that convincing the policymakers about the negative fallouts of subjecting a destination to multiple taxation would be among his priorities. Working for complete industry status for the hotel sector is also among his priorities. “The Indian hospitality and tourism sector today faces unprecedented opportunities as well as some equally serious challenges. Successfully mitigating the myriad risks posed by an uncertain economic environment and urgently addressing certain systemic impediments which have often constrained our industry’s quest to achieve its full potential, would require all stakeholders to work in unison. One of FHRAI’s key strategic priorities will be to effectively articulate and reflect the concerns and aspirations of our small & medium entrepreneurs, whose vision and dynamism are truly the future growth engine of our industry,” said Shervani after his election to the august position.
Hammer Food & Beverage Business Review
Oct-Nov ’13
NEWS SCAN
Café Gartino Makes an Impact Café Gartino is the latest gastronomical hotspot in Delhi NCR where food is pursued with pure passion. Nestled in the heart of Gurgaon, Café Gartino can come across as a preferred haven for fun loving people. The décor of the place is done keeping in mind the quirky trend, with every element executed with thoughtful precision. Artistically moulded sophistication with modish interiors can be seen everywhere at Cafe Gartino. Spread across two floors, the Cafe is divided into Bistro and Lounge with exotic curios, mirrors, and pieces of art adorning the walls. The colour palette of the interiors includes neon shades of yellow, green and wooden brown; which together facilitate to create a joyful mood. Of course, all this elegance and décor is complemented with wonderful selection of gastronomic options. Raminder Bakshi, the hospitality consultant and the brain behind this concept turned reality into the realm of hospitality, said, “The place offers signature dishes from the inhouse Chef, and famous cuisines from the world. The place serves European, Asian and Italian cuisines, along with other global cuisines, which are complimented with the finest global liquors and music.” The open sitting area of the restaurant adds to its appeal. Succinctly, with its elegant ambience, great food and professional, attentive and yet relaxed service, Café Gartino can come across as a welcome addition to Gurgaon’s eating out options.
Bennigan’s to Enter in India Suri Hospitality International, an Orlando-based restaurant investment and management group, has entered into a Master Franchise Agreement with Bennigan’s. Here it deserves a mention that Bennigan’s is regarded as one of the US’s most iconic restaurant brands. The agreement entails the opening of 50 Bennigan’s outlets throughout India. The first of these proposed outlets is expected to be a reality in the spring of 2014, in Mumbai. The Indian franchise agreement, which includes both the Bennigan’s and Bennigan’s on the Fly concepts, signals the beginning of an aggressive strategic move of Bennigan’s into the Indian subcontinent. Significant resources will be invested in the market to build brand awareness and stimulate consumer interest. The timing for Bennigan’s entry seems appropriate as the Indian restaurant business is showing lots of potential towards popularity of a varied range of global tastes and flavours. “We are convinced that not only Bennigan’s restaurant concepts will be enthusiastically embraced in India, but that the company’s leadership has positioned the brand to succeed globally,” said Nik Patel, the owner of Suri Hospitality International. ”Bennigan’s President Paul Mangiamele and his team have done a magnificent job in leading the chain back to prominence. We are excited to be joining them in the early stages of their global expansion,” he added. “We simply couldn’t ask for a better partner than Nik to take our brand to India,” articulated Paul Mangiamele, Bennigan’s President & CEO. ”Bennigan’s is one of the few American brands that is just as popular overseas as it is at home. That is because of extraordinary franchisees like Nik who understand the importance of delivering memorable dining experiences to every guest, in every meal, on every day,” he elaborated further Here it deserves a mention that Bennigan’s is known for its generous portions and offers a wide selection of American fare, including its world famous ‘Monte Cristo,’ a lightly fried, triple-decker turkey, ham and cheese sandwich served with raspberry preserves. The Bennigan’s on the Fly concept is a fast casual form of the restaurant made for hotels, airports, hospitals, cruise ships and universities. Besides the US, Bennigan’s has presence in Mexico, Central America, Asia and the Middle-East.
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Hammer Food & Beverage Business Review
Oct-Nov ’13
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NEWS SCAN
PepsiCo Announces Huge Investment for India PepsiCo, Inc. has announced plans for the company and its partners to invest Rs. 33,000 crore in India between the present time and 2020. Making the announcement, PepsiCo’s Chairman and Chief Executive Officer, Indra Nooyi said, “India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo. We have built a highly successful business in India over the course of many years, and we believe we have only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners.” Since its entry in India in 1989, the company has till now made an investment of $2 billion in India. Indra informed that this huge investment would be directed towards manufacturing, agriculture, infrastructure and innovation. The power lady also informed that PepsiCo’s investment plans in India would not be affected by the results of the upcoming elections. Presently, PepsiCo India has eight brands in its ambit, which has a turnover of Rs.1000 crore in India. Here it deserves a mention that India currently represents one of PepsiCo’s largest markets globally. This Rs.33,000 crore investment is expected to further strengthen and expand PepsiCo’s capabilities in India, in various strategic areas, which are innovation, manufacturing, infrastructure and agriculture. As far as manufacturing goes, ○
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customers and increase efficiency across go-to-market systems. Furthermore, resources will be allocated to expand PepsiCo’s wellknown collaborative farming program, which provides farmers with access to good quality seeds, technical agronomic expertise, bank loans and crop insurance. This program currently reaches 24,000 farmers, positively impacting their income and social standing in addition to strengthening the reliability and quality of PepsiCo’s supply chain. It is estimated that this recent strategic initiative will add more than 100,000 new employment opportunities, as well as strengthen India as a center of talent development for PepsiCo. In addition, as part of this strategic initiative, PepsiCo and its partners plan to implement state-of-the-art technologies to further reduce energy, packaging and water use in their operations. PepsiCo also intends to expand water recharge programs to sustain positive water balance. Presently, more than 40 percent of the energy requirement of PepsiCo’s company-owned food and beverage plants in India comes from renewable sources, which reflects on the commitment towards environment-friendliness of this food & beverage conglomerate. PepsiCo’s work with Indian farmers has reduced the amount of water used in rice cultivation, leading to conservation of more than 12 billion liters of water in 2012 alone.
PepsiCo and its partners plan to expand their production capacity in India to more than double the current levels by 2020. Regarding innovation, PepsiCo will continue to expand the range of food and beverages in its portfolio to cater to the wide and evolving needs of Indian consumers. On the infrastructure front too PepsiCo has important plans for India. PepsiCo and its partners plan to ramp up selling and delivery infrastructure throughout India, with a particular focus on rural market expansion. As part of this strategic initiative, PepsiCo will work with its partners to deploy new technologies designed to enhance service to retail ○
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Stresta Comes With Organic Cookies Hyderabad-based Sresta Natural Bioproducts Pvt. Ltd, an integrated organic food company encompassing farming, processing, R&D, exports and domestic retailing, has launched a whole new range of organic cookies under its brand 24 Mantra. The introduction marks Sresta’s entry into the snack category in India. 24 Mantra Organic Cookies will be available across India at all the leading retail outlets including exclusive 24 Mantra Organic Stores (in Hyderabad). Made from 100 percent whole grains and totally devoid of maida and trans-fats, the organic cookies launched by 24 Mantra comes in four different seasoning and delicious flavors — Fruit n Nut, Ginger Snap, Spice n Nut and Cashew Rich. Priced at Rs.90 for 150 gm, these organic cookies are endowed with multigrains — whole wheat, sorghum, rice, little millet, foxtail millet, and flax, which makes them nutritious and healthy. Speaking on the occasion of the launch of the organic cookies, Rajashekhar Reddy Seelam, Founder and MD, Sresta Natural Bioproducts Pvt. Ltd., said, “With no maida and trans-
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fats, the cookie is a healthy option for people from all age groups. We hope people will like our new product and help us bring more such products for a healthy lifestyle.” “Sresta has been continually adding healthy food items to its kitty and organic cookie is something which we wanted to bring for our customers since long. The ingredients have been selected with utmost care so that we can provide a healthy food item to our customers. Our aim is to come up with a range of organic snacks so that people can enjoy healthy food. We also intend to highlight the benefits of such food items so that more people can adopt to the safer and better alternative of organic food over conventional food products, “explained N Balasubramanian, CEO, Sresta Natural Bioproducts Pvt. Ltd. One can hope that these organic cookies can make the tea time of a section of people who can afford these cookies a time for healthy break. These cookies can be also used to satiate bouts of hunger pangs between meals in a healthy manner.
Hammer Food & Beverage Business Review
Oct-Nov ’13
REPORT
The Future of Food?
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Soylent in the recent days. One can say that given that the claims by its many consumers(which of course includes Soylent’s creator Rob Rhinehart, whose 90 percent of meals from January to August 2013 comprised of Soylent) are not exaggerated, this drink has the potential to revolutionise the eating habits of people. Its popularity at a time when people are having less and less time to dine, is expected to increase in the times to come, and consequently, this can give a jolt to the global consumption of conventional food & beverage products. Presently, Soylent’s target market seems to be primarily comprising of busy professionals for whom time spent for shopping for food, cooking it, eating it and then clearing up the mess take a heavy toll on their precious time. If Soylent gains popularity, this would induce the food & beverage industry to make major shifts in their production and
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Rob Rhinehart
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he essence of life is change, and that entails every thing in the world should have a past and as well as a future. Any food historian would vouch for the fact that most of the food items have their history of evolution, which may be either clear or misty. Now it seems the food has a future too. It seems to be Soylent. Its intake, according to its developer or inventor Rob Rhinehart — a 25-year-old software engineering graduate from San Francisco — and also according to many others who have used this thick odourless liquid, can help keep the hunger away from you. To put it simply, according to many claims, if you have Soylent, you don’t need conventional food, for this macro-nutritious shake can meet your nutritional requirements that conventional food intake can provide. Soylent can be described as a concoction of carbohydrates, fats, proteins, sugars, vitamins and minerals. It originally comes in powder form, but is consumed as a drink. One package of Soylent, mixed with water, is expected to sustain you throughout the day, without the necessity of any food intake. The etymology of Soylent can be traced to the novel named ‘Make Room! Make Room!’ by Harry Harrison. The book emerged on the literary scene in the mid sixties of the twentieth century. In the book, Soylent comprises of soy and lentils and used as an affordable food for the masses. The potential and rising popularity of Soylent can be gauged from the fact that Rhinehart has already garnered $1.5 million in seed capital from venture capital and angel investor firms. A person named Brian Merchant from Vice, US had the experience of living on Soylent for 30 days, without taking any food. According to the report of an esteemed news daily, many Indian techies were also found to be having
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By Swarnendu Biswas
marketing strategy. However, the expected role of Soylent in development cannot be ignored altogether. In the near future, Soylent can play a crucial role in alleviating the hunger problem that the world at large is facing. In this twenty-first century world, almost 14 percent of the world’s population is malnourished, whereas one in three people in the developing world are facing nutritional deficiencies. There is no denying the fact that having enough food for the burgeoning global population will be one of the most daunting challenges of humankind in the coming years, and in this regard Soylent can help. But there is a rider. In order to make Soylent alleviate the global food problem, it needs to be made extremely affordable and accessible to the masses, in the years to come. Moreover, the production of more Soylent in exchange of production of food can lower the environmental impacts per person, which can be greatly helpful for our fragile ecosystem. However, all these are only conjectures and reality of these predictions would all depend upon much greater, wider and much more enduring acceptability of Soylent in the market. Presently, the product, all said and done, is at an experimental stage. Besides, going by the reports, the nutritious shake doesn’t taste great shakes. In fact, the drink which looks like a milky sludge, doesn’t taste good even. Therefore it is expected that people may switch to Soylent to save time and stave off hunger in the future, but many may again return to food to celebrate their taste buds, and also for the sake of variety. One can say that though Soylent may not replace food, but it is expected to emerge as a convenient and time saving alternative to food in the years to come.
Oct-Nov ’13
REPORT
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participants. The training session, which was sponsored by Dabon International and Elle & Vire France, covered several wonderful recipes of bakery products. Here it deserves a mention that the Elle & Vire brand was established in 1947 by the Elle & Vire Dairy Cooperative. The company derives its name from Elle and the Vire — two small rivers in Normandy, France. By 1975 the Elle & Vire Cooperative had emerged as France’s leading exporter of dairy products. Today, the brand is among France’s esteemed dairy brands, with more than one out of two French consumers purchasing at least one Elle & Vire product a year. Presently, Elle & Vire offers food service professionals a complete range of high quality dairy products. The result of ongoing research and innovation, Elle & Vire products can cater to the requirements of the most demanding Chefs. At the international level, Elle & Vire sells dairy products as varied as milk,
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ith the objective to disseminate information pertaining to global bakery standards and practices, Elle & Vire Professional conducted a training session at Macaron School, Bangkok during 14th16th November 2013, where many Indian Chefs participated. The training session, which was conducted by Chef Eric Perez, received excellent feedback by the
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A Training to Remember
butter, cream, desserts and cheese. Elle & Vire has presence in more than 120 countries around the globe, in both the retail and food service sectors.
Name of the Participants
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S.No
Family Name
First Name
Establishment name
Location
Type of Business
1
Poisson
Brice
Sweet Lavender
Pune
Bakery
2
Shek
Moshe
Moshe’s
Mumbai
Bakery & Restaurant
3
Anand
Rishabh
Leela Delhi
Delhi
Five Star Hotel
4
Kumar
Anil
Pullman
Gurgaon
Five Star Hotel
5
Kumar
Arvind
ITC
Bangalore
Five Star Hotel
6
Kadam
Vivek
Hyatt
Mumbai
Five Star Hotel
7
Karkhanis
Nilesh
Rolling Pin
Mumbai
Bakery
8
Srivastav
Vikas
Le Meridian
Delhi
Five Star Hotel
9 10
Fernandes Panwar
Lawrence Anand
Sahara Star Dusit Devrana
Mumbai Delhi
Five Star Hotel Five Star Hotel
Hammer Food & Beverage Business Review
Oct-Nov ’13
One of the several recipes explored at the training session is given below: Dome Exotic I. Pâte à savarin: Ingredients 500 gm flour 150 gm Elle & Vire All Purpose Butter 50 gm sugar 15 gm sel 20 gm dried yeast 10 eggs Method 1. Soften the butter 2. In the mixing bowl add all the ingredients with the paddle attachment and add the eggs little by little 3. Let rest for an hour and mould 4. Let rise and bake at 180 degree centigrade II, Syrup Ingredients 1000 gm water 450 gm sugar 250 gm caraibean puree Method 1. Heat up all ingredients together to a boil 2. Soak the babas at70-75 degree
Oct-Nov ’13
centigrade III. Almond coconut dacquoise Ingredients 125 gm desiccated coconut 125 gm almond powder 250 gm icing sugar 300 gm egg whites 100 gm sugar Method 1. Whip up egg whites and sugar 2. Fold in the flours and spread on flexipat and bake at 180 degree centigrade
sugar together 3. Temper with the purees and bring to a full boil 4. Cool down to 40-45 degree centigrade and add the sofetend butter 5. Emulsify with the blender and pour onto flexipan
V. Coconut mousse Ingredients 500 gm coconut puree 135 gm egg whites IV. Cremeux ananas/mangue 175 gm sugar Ingredients 15 gm gelatine 100 gm pineapple puree 500 gm Elle & Vire Excellence 50 gm mango puree Whipping Cream 55 gm eggs Method 45 gm egg yolks 1. Cook the sugar to 118 degree 35 gm sugar centigrade and pour it on the egg whites 2,5 gm gelatin and whip until volume. 55 gm Elle & Vire All Purpose Butter 2. Softened the gelatin in cold water Method and melt into the 125gm of the coconut 1. Boil the pineapple puree first. Then puree. Then add the rest of the puree add the mango puree 3. Incorporate the egg whites and 2. Blancher the eggs, egg yolks and then the whipped cream.
Hammer Food & Beverage Business Review
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REPORT
Impressive Growth of the QSR Market It seems the current economic slowdown has little effect on the quick services restaurants (QSR) market. According to a report by CRISIL, in the next three years, the Indian QSR market is estimated to get more than doubled, which will be largely fostered by demand from smaller cities of the country. According to the report, QSR sector has managed to grow amidst the environment of economic slowdown. Presently, according to CRISIL, during 2012-13, the Indian QSR market was Rs.3400 crore, which according to the global analytical company providing ratings, research, and risk and policy advisory services, is estimated to reach Rs.7000 crore by 2015-16. “The Indian QSR market will more than double to reach around Rs.7,000 crore by 2015-16 from Rs.3,400 crore in 2012-13, driven largely by new store additions,”
the report observed, while noting that most of the new stores will emerge in the smaller tier cities. “In tier I cities, we expect the annual QSR spend per middle class household to surge by over 1.5 times during the next three years, to reach around Rs.6,000 by 2015-16 from about Rs.3,700 in 2012-13. In tier II cities, currently the annual QSR spend is around Rs.1500, which is less than half that of in the tier I cities. However, growth is expected to be much higher in tier II cities, at about 2.5 times, to reach an annual QSR spend of Rs.3700 by 2015-16. This quantum jump in QSR spend in urban areas will be propelled by the increase in nuclear families and working women, steady growth in incomes, changing lifestyle and eating patterns and, importantly, by greater accessibility of QSR outlets,” explained Prasad Koparkar, Senior Director, Industry & Customised Research, CRISIL Research. According to the report, global brands currently have an aggregate market share of 63 percent of the domestic QSR market and will continue to grow on the back of
expansion into smaller cities. These players have been successful in adapting their menu and products to local tastes. Indian players who serve domestic cuisine too will grow, but not as fast as the global players. These findings can give an impetus to the bakery business in the country, as most of the multinational QSRs like KFC, McDonald’s, Pizza Hut, etc. extensively deal with products pertaining to the bakery industry, such as pizzas, burgers and sandwiches, etc.
A Bright Future for the Indian Food Additives Market According to Frost & Sullivan’s recent study titled Analysis of Indian Food Additives Market, from $484.2 million in 2012, the market revenues of the Indian food additives market are expected to reach $897.7 million in 2017. The study notes that “Changing lifestyles and hectic work schedules have spawned a large market for processed and packaged convenience foods. The booming organised retail sector further extends the reach of processed foods.” According to the study, change in eating habits and the frequent introduction of new products and product lines, particularly in the functional food and beverage market for low-fat, low-calorie products, spells growing opportunities for the food additives market in India.
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The study covers the food additive classes of flavours, colours, preservatives, emulsifiers, stabilisers and sweeteners. Among these segments, flavours account for 47 percent of the market; sweeteners contribute the least, by growing at the rate of 25 percent. However, sweeteners market is expected to become increasingly popular in the coming years. “The additives industry in India is veering towards natural emulsifiers and nature-derived colours,” said Frost & Sullivan’s Chemicals, Materials & Foods Research Analyst, while adding that “This change in preferences emanates from the increasing health consciousness among Indians.” However, natural food additive manufacturers in India find it difficult to source raw materials due to the lack
Hammer Food & Beverage Business Review
of centralised supply chain system and presence of multiple sourcing points. The study finds that participants can forge partnerships with cooperatives and invest in contract farming to counter this issue. Such strategic alliances and joint R&D could also lower the prices of nature-derived products and lead to customsed premixes with application specific combination of flavours, colours and other additives for clients. “Ironically, certain government policies could stifle innovation,” noted the analyst. “For instance, the Prevention of Food Adulteration Act (PFA), which governs the food additives segment, permits only certain colours that are certified by the Bureau of Indian Standards (BIS),” the analyst observed.
Oct-Nov ’13
REPORT
A Platform to Recognise
Chefs’ Expertise T
he 10th Annual Chef Awards 2013 was being held at The Ashok hotel, New Delhi, on 23 rd November 2013. The event was organised by Indian Culinary Forum (ICF), in association with Indian Federation of Culinary Associations (IFCA) and World Association of Chefs’ Societies (WACS). The World Association of Chefs’ Societies is a global network of Chefs’ associations, first founded in October 1928 at Sorbonne, in Paris. Today, this global body has 93 official Chefs’ associations as members that represent over 10 million professional Chefs worldwide. Here it deserves a mention that the Indian Culinary Forum is an Indian association of professional Chefs. It was formed in New Delhi in 1985, under the stewardship of Chef Arvind Saraswat as an exclusive non-profit organisation, dedicated to advancement of the culinary arts of India. The forum’s objective is to act as a link and a platform for the promotion of the national community of Chefs. Indian Federation of Culinary Associations (IFCA) was created with the objective of enabling the development of the culinary profession in the country. The primary focus of IFCA is the promotion of the culinary profession in the country through various exchanges and innovations. Indian Culinary Forum is the northern regional association of Dr. Shashi Tharoor
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Indian Federation of Culinary Associations. Coming to the above-mentioned mega event, it attracted the presence of the Minister of State for Human Resource Development, Dr. Shashi Tharoor. The awards were given out across 17 categories. Rajeev Bakshi, Managing Director, METRO Cash &Carry India, conferred Chef Satish Arora of Taj Hotels with ‘METRO Lifetime Achievement Award.’ A galore of Chefs from north India participated at the event, with a competition being held amongst participants from the top hotels, restaurants, bakeries, confectioneries and catering businesses of the country. The competition was held at the Banarsidas Chandiwala Institute of Hotel Management and Catering Technology last month. Speaking about the awards, Bakshi said, “Chefs are the backbone of the hospitality sector, and we are extremely proud to be here to honour their culinary skills and contributions to the industry. METRO is committed to supporting exceptional culinary talent from an industry that caters to some of the most discerning palates across the country.”
Top Chef Chef Satish Arora’s single most important contribution to the development of Indian cuisine was to impart world class presentation techniques and rid it of the ‘curry powder’ syndrome. An idol to many young aspiring chefs, he was appointed the Executive Chef of the The Taj Mahal Palace, Mumbai (then Bombay) in 1972, being the youngest Chef in the world at that time to take over a five-star hotel kitchen.
Hammer Food & Beverage Business Review
Oct-Nov ’13
REPORT Earlier in the week, METRO organised a Chefs’ Day Out at the METRO wholesale distribution centre at Shahdara, Delhi, where a panel discussion amongst top Chefs was conducted. At the event, Chefs exchanged their views on the importance of supply chain efficiency and witnessed the vast product assortment along with customised services offered to HoReCa customers at METRO DC, in New Delhi.
The Chef Speaks
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t the 10th Annual Chef Awards 2013, Food & Beverage Business Review got the opportunity to have a brief interaction with the renowned culinary artist Manjit S. Gill, Corporate Chef, ITC Hotels and the President, IFCA. According to him, Indian Federation of Culinary Associations (IFCA) is providing yeomen service to the Indian food service and hospitality industry of the country by disseminating education and information among the Chefs and also by increasing their exposure levels through seminars and by encouraging their participation in international competitions. According to Gill, still “the rich and varied Indian cuisines have the maximum popularity among the Indian eating out crowd”, and exotic cuisines despite all the media hypes associated with them, “are only catering to niche clientele in India.” He also affirmed that “Indian regional cuisines are gaining popularity, not only within India but also in abroad.” On the evolution of changing societal perception of Chefs across the country, Gill said that “Today, due to greater visibility and exposure of Chefs and also due to greater knowledge about the nuances of food among the people at large as a result of the influences of globalisation, the Chefs in our country are attracting much greater social prestige and popularity than they had enjoyed say two decades ago.”
Oct-Nov ’13
The Awardees Student Chef of the Year Megha Agarwal from International Institute of Culinary Arts Kitchen Artist Award Chef Chittaranjan Jena from Fortune Park Lake City, Mumbai Master Baker Award Chef Javed Alam from Country Inn & Suites, Sahibabad Master Chef International Confectionery Chef Pawan Saxena from Old World Hospitality Master Chef Indian Sweets Chef Dharmender from Old World Hospitality Master Chef Kebabs Chef Govind Ram Arya from Le Meridien Master Chef International Cuisine Chef Kishan Singh Rawat from Country Inn & Suites, Sahibabad Master Chef South India Cuisine Chef FP Girish Kumar from The Ashok Hotel, Delhi Master Chef North Indian Cuisine Chef Saurabh Sachdeva from Radisson Blu Hotel New Delhi Paschim Vihar Chef of the Year Chef Pankaj Kumar from The Lodhi, New Delhi Best Food Writer Hoihnu Hauzel Master Chef Oriental Cuisine Chef Anand Rawat from Old World Hospitality Silver Hat Chef Chef Sabyasachi Gorai from Olive Culinary Academy Lifetime Achievement Award Chef Satish Arora
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Oct-Nov ’13
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COVER STORY
The Tastes and Flavours from
Portugal Portuguese cuisine is probably one of the least known European culinary arts in India. But it is steadily gaining ground in Mumbai and it is sure to become popular in Kolkata, where people have a preference for fish; for Portuguese gastronomic fare consists mostly of fish. As far as meat is concerned, pork is the favoured meat for the Portuguese people. Influenced by diverse contacts with many different cultures from centuries of maritime exploration, Portuguese cooking has become rich with flavours of spices from the far east, seafood culled from the Atlantic Ocean, as well as with vegetables from rich farmlands. Ashok Malkani who takes a peek at the Portuguese cuisine, observes that fire and passion could be said to be the hallmarks of this gastronomic fare, as most of the traditional cooking in Portuguese cuisine is done over hot charcoals. The cuisine comprises of simple dishes using few ingredients, but it exudes strong flavours as is seen in the famous Portuguese charcoal chicken.
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Hammer Food & Beverage Business Review
Oct-Nov ’13
COVER STORY
G
ifting roses has become a hackneyed expression of feelings for the lovers. Now you can take your girlfriend to a Portuguese restaurant and offer a Rosé (traditional Portuguese drink), instead of a rose. Chances are she would love this change in expression. Portuguese food and wines have been overlooked by foodies and wine aficionados in India for a long, long time. But it is now changing. Portuguese food is becoming the talk of the town, in Mumbai. Yes, it even has the potential to gain countrywide popularity. This probably explains the reason
Oct-Nov ’13
why Goa Portuguesa (a restaurant serving Goan-Portuguese cuisine}, which started in 1988, has spread its wings throughout Mumbai by having branches all over the city. Nandos Peri Peri is another restaurant chain that is proving popular with three restaurants in the city – including one in Navi Mumbai. It has branches in other parts of the country too. Yes, Portuguese cuisine is not just becoming popular in Mumbai; it is beginning to tickle the taste buds of the entire country.
The Culinary Influences Portuguese cuisine, has over the centuries, been shaped by several influences. One can say that traditional Portuguese recipes include influences of an array of flavours and culinary
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techniques of many other cultures Any country’s or a region’s cuisine is inextricably linked with its culture and history, and Portuguese cuisine is no exception to this cardinal principle. The history of Portugal is not only of imperial conquests it also includes getting occupied by Romans and Moors. Therefore the varied culinary influences in Portuguese cuisine are not only external, but also internal. The Roman conquest of the region which we now know as Portugal enabled Portuguese to get introduced to wheat. Romans wanted Portugal to become the granary of Rome. Introduction of olives, grapes, garlic and onion in Portuguese cuisine can also be traced to the Roman influences. The influences of the Moor invasion in Portugal in 711 AD also contributed in giving shape to the Portuguese cuisine. Moors maintained their stronghold in the southern part of Portugal’s geography for many centuries. Almonds, figs, and desserts with the influence of egg were Moorish influences on Portuguese eating patterns. However, there is no doubt that the most major influences on the modern Portuguese cuisine as we know today have been because of Portugal’s legacy in maritime exploration and as colonists, which began in the beginning of the 15 th century. The exploration of the African coast by Portuguese ships introduced coffee, peppers and peanuts to the cuisine of Portugal, and their
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COVER STORY forays into the east introduced them and eventually the rest of Europe, to varied spices, curries and even tea. At the same time, Portuguese also explored into south and their explorers discovered Brazil in 1500. This led to the introduction of the Portuguese people to pineapples, tomatoes, corn and potatoes through the Portuguese sailors. As the centuries passed, all these global influences became part of Portuguese cuisine. In fact, to Portuguese goes the credit of introducing herbs and spices like saffron, pepper, ginger and coriander, and also of introducing pineapples, potatoes and coffee to the Europe. Today the influence of Portugal’s former colonies can be easily observed in the culinary character of Portugal, especially in the wide range of spices used in the Portuguese cuisine. Similarities between Portuguese canja and Asian congee cannot also be ruled out, which shows oriental influences on Portuguese cuisine. Succinctly, the culinary traits from its former colonies in Africa, India and Far East have made impacts on the Portuguese cuisine, thereby making it different in character than the Mediterranean cuisine of its neighbours. For example, though the Portuguese and Spanish people have many common ingredients in their traditional food preparation, their distinct histories and geographies have endowed them with different cooking styles and dishes from each other. Portuguese cuisine was influenced by
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various culinary legacies and food products across the globe, and at the same time, it influenced various other cuisines. For example, the Brazilian cuisine has a strong Portuguese influence, where Brazil’s own versions of Portuguese dishes like feijoada (a stew of beans with beef and pork) and caldeirada (fish stew) find place. Goa’s pork vindaloo is inspired from Portuguese culinary influences. In 1543, Portuguese trade ships sailed to Japan and there the Portuguese introduced refined sugar to the Japanese. Portuguese explorers and merchants to Japan were followed by Portuguese missionaries. Here it deserves a mention that tempura, a traditional Japanese dish comprising seafood and vegetables, was introduced to the Land of Rising Sun by the Portuguese missionaries, during the Nanban Trade period.
The Essential Character Traditional Portuguese dishes often comprises of simple ingredients, based on regional produce. The Portuguese cuisine also has an emphasis on fish. As Portugal is a sea faring nation with a developed fishing industry, it is natural for the fish to play a crucial role in Portuguese dishes. Portugal has Europe’s highest fish consumption per capita. No wonder, many of the dishes of Portugal are fish-based. In Portuguese cuisine fish comes in boiled, grilled, fried, deep-fried, stewed and roasted forms. Cod is the most common fish consumed in Portugal.
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However, Portuguese cuisine is not only about fish. The Portuguese cuisine includes not only seafood and pork but also meat, cheese and vegetables. As Portuguese cuisine doesn’t involve much challenges to prepare, and often needs the application of very basic equipment, it is many a time termed as peasant food. Even a single pot over an open fire is sufficient to create many popular Portuguese dishes. Piri piri or small fiery chilli pepper, black pepper, saffron, vanilla, and cinnamon are some of the spices used in Portuguese cuisine. The olive oil is one of the bases for cooking and flavouring meals in many Portuguese dishes. Garlic, coriander and parsley also attract wide usage in Portuguese dishes.
Food From the Waves Popular Portuguese seafood consists of not just cod but also fresh sardines (especially when grilled as sardinhas assadas), squid, crabs, shrimps, prawns, lobster, spiny lobster, shellfish, clams, oysters and many other crustaceans. A famous fish stew of the Portuguese people is Caldeirada, which comprises a variety of white fish and shellfish, along with potatoes and tomato, onions and peppers. It is better to infuse some white wine and lots of herbs into the dish. The dish entails the right layering of various ingredients, which enables the flavours to mix well. Sardines have been popular Portuguese delicacy since centuries. They used to be preserved in brine for sale in rural areas of Portugal. This eventually paved the way for the development of sardine canneries along the Portuguese coast. Canned tuna is also popular in Portugal. Grilled sardines have become quite popular in Mumbai. Seasoned with salt, popped on the grill and then served up with a tomato salad and new potatoes – tasty and healthy! Wash it down with a chilled Vinho Verde and you may feel
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COVER STORY the bliss near your senses. You can have the sardines like the Portuguese do, that is by using your fingers, and on a slice of bread, and you may absorb all those Omega 3 juices. Arroz de Tamboril (Monkfish and Rice) is another popular dish of Portuguese cuisine, which is worth a gastronomic exploration. The Monkfish (having very broad, depressed heads – as wide as the fish is long, with females reaching approximately 39 inches) is chopped into chunks and mixed with rice, tomatoes, spices and a range of fresh herbs to get a filling and sumptuous dish. Camarão (prawns) is another popular seafood of Portuguese cuisine. It can be had boiled, fried, peeled or with heads and all. Prawns are always a great option at a restaurant serving Portuguese food. Piri piri prawns are hard to beat. Tiger prawns grilled over charcoal are also no less delicious.
Tasty Chicken Chicken dishes are also an integral part of Portuguese cuisine. In Portuguese, chicken is known as Frango. Frango no Churrasco or chicken on grill is a delicious chicken dish from Portugal. “A whole chicken is butterflied open and put in a typical marinade mixture of olive oil, white wine, garlic, bay leaf, lemon juice and paprika. When ordered, it is taken out of its marinade and placed on a rotating spit over a flaming hot coal pit, basted with a
sauce similar to the marinade, with a touch of butter and a hint of piripiri added,” explained an expert on Portuguese cooking,. while describing the preparation of Frango no Churrasco. Frango da Guia is another special chicken dish of Portugal. The dish is named after the town of Guia in Portugal, where the dish is believed to have originated. Salad with just tomatoes and raw onions is the ideal accompaniment with these chicken dishes of Portugal. For Frango da Guia, French fries are the ideal added accompaniment, whereas for Frango no Churrasco go for potato chips as accompaniment.
Green Options Portuguese cuisine is not only about flesh and spices. Enterprising Indian restaurateurs can not only introduce non-vegetarian Portuguese cuisine with heavy influences of fish and seafood in India, in a big way, they can also introduce vegetarian dishes from Portuguese cuisine to cater to the huge numbers of Indians who want to try exotic food but are vegetarians. Yes, it may delight the vegetarians and the lovers of vegetarian food that Portuguese cuisine has in its ambit some delectable vegetarian soups. Most vegetarian soups from Portugal are quick and easy to make, and they are delicious. Their increasing presence in Indian restaurants can help the busy corporate crowd to have a quick and
healthy meal. The Portuguese soup is thick with a vibrant orange colour, derived from pureed carrot, pumpkin, potato and onion. These soups are made by adding vegetables and garlic into a pressure cooker for about 20-30 minutes and then passing them through a food mill. Now add a touch of salt to create your vegetable soup, the Portuguese way. Many build upon this base by adding cooked green vegetables such as nabicas (kale), espinafresi (spinach) feijão verde (long green string beans) and couve (cabbage), which is usually paired with feijão (red kidney beans). A big bowl of any of these hearty Portuguese vegetable soups can make for a delicious meal anytime! They can satiate a busy person’s hunger pangs when she/he has to skip a formal lunch for lack of time. And the vegetarians need not worry for the Portuguese vegetarian cuisine doesn’t end with soup. Neither does it begin with soup by the way. Vegetarians wanting a bite of the Portuguese delicacies can have Tremoco, which happens to be a great beer snack in Portugal, and is usually enjoyed by Portuguese people during socialising over drinks. They are big butter beans, salted and tasty. The beans should be taken out from the skin before enjoying Tremoco, as beans can provide bitterness on biting. Accorda and Migas are some of the many other delicious vegetarian offerings from Portuguese cuisine. Both are bread-based dishes.
Just Desserts The dessert delicacies of Portuguese cuisine are also varied. There are over two hundred varieties of sweets found in Portugal, which an Indian baker can explore. The rich egg-based custards of Portuguese cuisine are out-of-theworld. In several desserts the Portuguese use cinnamon. Pastel de nata is a well-known Portuguese dessert. It is essentially an egg custard tart in filo dough that is ideally served warm, fresh out of the oven and sprinkled with cinnamon and powdered sugar. Bola de Berlim, Leite Crème, Arroz Doce or Portuguese sweet rice pudding are some of the other important dessert creations from the land of Portugal, which can find good market in India. I
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Oct-Nov ’13
BUSINESS
Leveraging Sales From Retail Rapid urbanisation and increase in disposable incomes has led to retailing in India undergoing transition. Along with the fragmented local markets, we are seeing large centralised wholesale markets. In the processed food and packaged goods the advent of organised retailing has been more rapid than in the fresh food markets. Supermarkets, hypermarkets, discount grocers have been growing in India. Now is the right time for the entrepreneur to enter into organised multi-brand retailing. Ashok Malkani takes a look at the intricacies involved in maintaining and enhancing the footfalls in a food retail enterprise. One of these is the organised and attractive display of the merchandise to attract the customers into making impulse purchases, which can result in increasing sales.
T
oday, retailing is the fastest growing sector in the Indian economy. The total retail sales in the country are expected to enhance from $ 395.96 billion in 2011 to $ 785.12 billion in 2015. With over 13 million retail stores, India has more retailers than any other country in the world. Yet, most of these retailers are tiny and unorganised. However, in urban India large supermarkets and hypermarkets/malls are supplementing the traditional retail stores. But the shift from local kirana shops to organised retail in tier II and III cities
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and as well as in rural areas is expected to take a long time.
The Trend of Organised Retailing In the recent years, urban India is witnessing steady growth in organised grocery retailing. Future Value Retail Ltd (FVRL) and Reliance Retail Ltd. are two major players in the realm of organised grocery retailing in the country. Now we are witnessing an interest by many foreign players to enter India’s retail market. Global retail giants like Wal-Mart, Carrefour and Tesco are waiting to enter the Indian retail sector.
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So how does one enter the Indian retail market? Current entry options for foreign players are as under: Franchise Agreements Most widely used entry channel by multinational retailers Fast food retailer Domino’s entered through master franchise while Pizza Hut entered through regional franchise Cash and Carry WholesaleTrading 100 percent FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers. Wholesaler deals only with smaller retailers and not with
Oct-Nov ’13
BUSINESS
consumers. Strategic Licensing Agreements Foreign company enters into a licensing agreement with the domestic retailer.
Display to Get Market Edge However, simply entering the multi-brand retail sector in general or a grocery business in particular is not enough to achieve success in these endeavours. A consumer-first mindset is more important than years of experience for success in the retail business. Planning about which goods should adorn the shelves and in what quantities is essential, so as to prevent goods gathering dust on the shelves. And of course, you need to get the most affordable deal that is possible for the products that you would be retailing, without compromising on good quality so that the profits and prospects of enduring business are complemented. Yes, there are several other factors than these which can influence success in organised retail business. The consumer behaviour in organised retailing across supermarkets and hypermarkets/malls is somewhat different from that of the consumer behaviour in unorganised grocery stores. Along with service retailing in small kirana stores, where the customer asks for specific items which the retailer fetches, we are also witnessing self service retailing in urban India, across supermarkets, hypermarkets/ malls, where customer herself/himself scouts for the products of her/his choice and then places them at the counter for billing. As in organised retailing across supermarkets and hypermarkets/malls consumers get the opportunity to see the display of goods for quite some time, while scouting for their
Oct-Nov ’13
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BUSINESS purchases, the visual appeal of the products is likely to make a greater influence on the consumers’ buying preferences in organised retailing, than in unorganised retailing across kirana stores. Moreover, the organised F&B retailing in India now entails huge competition, with a plethora of supermarkets and hypermarkets/malls making their presence felt in the urban retail landscape of the country. In many cases, the goods or product ranges of one supermarket or hypermarket are not much different from the other. Therefore, in order to attract consumers, the organised retailers not only need to keep a plethora of products, which also includes an array of food & beverage products, but the display of products also needs to be attractive so as to induce the consumers and the potential consumers of those products. The arrangement and showcasing of the goods has to be handled extremely carefully. A player in organised retailing must be aware of the customer profile visiting her/his store. Normally, in urban areas, the customer profile of the majority of the people visiting the supermarkets and hypermarkets/malls can be described as given in the figure below. The supermarkets and hypermarkets/ malls in India should have their product profile and display tailored in a manner which would interest this clientele. As their consumer profile is often similar, the ranges of products on display in a group of supermarkets or in a group of hypermarkets/malls also tend to be
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similar to each other in many cases. When the product ranges are similar across various supermarkets and hypermarkets, their display often become a major deciding factor governing their purchases and thus profits or loses. Creative displays also play a role in facilitating business in unorganised grocery stores, but their role is more important in supermarkets and hypermarkets/malls.
Creative Store Displays By using creative store displays you are making a certain visual connection with buyers and potential buyers of your products, a connection that can easily be an enduring one. However, visual merchandising is not only about attraction; it is also about awareness. Good visual merchandising helps showcase the product and educate the customers about its features in a memorable way, and thus helps the product enter the mindshare of the consumers. Thus the consumers are likely to become more inclined to make a purchase of the given product. For promoting items that are on sale or those which required to be sold quickly, end aisle displays endowed with colourful signs can be intelligent revenue enhancing options. Placing the impulse purchases like candies and inexpensive chocolates near the cash register can attract the customers or their kids to these items while the consumers are waiting in line to pay the bill. It is preferable to have the ‘impulse buys’ as somewhat inexpensive to the shopper’s budget.
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Supermarkets and Hypermarkets One can say that the supermarkets are an extension of the grocery stores. Supermarkets are large self-service grocery stores that offer customers a variety of food and household supplies. Here the merchandise is displayed into an organised aisle format, where each aisle is numbered or labeled and has only similar goods placed together. The supermarket houses fresh food products, poultry as well as canned and boxed goods. However, supermarkets are smaller than hypermarkets or big-box markets, which are basically supermarkets combined with departmental stores.
Different products in a supermarket and hypermarket/mall should ideally be displayed in different ways. For example, seafood displays can be made creative by draping a fishnet around the side of the refrigerated unit. This would make the consumers and potential consumers of sea food quickly get the idea that the unit contains fresh catches from the sea. And it is better if the refrigerated unit where sea food are being kept is coloured blue. The cases where fresh meats are being kept should be lined with green mesh. The colour contrast is expected to make the meat’s packaging more attractive to its consumers and potential consumers. Similarly, displaying apples and mangoes in bushels, and keeping the vegetables under a white light will add to their attractiveness. However, if you keep the greens under a yellow light they will appear less fresh than they actually are, so avoid that. Canned and boxed goods often comprise the majority of displays in organised retailing. These displays have great scope of creativity. Use the cans or boxes as building blocks and you can create structures like pyramids and cubes out of them. Themed displays can also be employed to club together various products that can be relevant purchases for a given season or occasion, such as Christmas or Valentine’s Day. However,
Oct-Nov ’13
HOTEL Business Review
Appointments
Mar-Apr ’13
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BUSINESS operations, where the impression of the consumer plays a huge role in revenues. For example, a consumer is thinking of buying a particular brand of fruit juice. She/he is more inclined to buy it from a store where the shelves are stocked with that brand of fruit juice, along with huge presence of its competing brands of fruit juice, than from a store which showcases only one or two cartons of the given brand of fruit juice, with no presence of competing brands of fruit juice. Therefore stocking inventory on a regular basis is necessary, and it is also extremely important to place new products behind the old ones in case of perishable products like fruits and vegetables. However, at the same time, it is also prudent for the store manager/ owner to evaluate which products are
themed displays which correspond to a given festival or occasion, should be introduced only a few days before that specific festivity or occasion, so to reap revenues by exciting the popular mood. Besides creativity in display, some basic facts need to be kept in mind. Shelves should be properly arranged and goods must be systematically labeled so that consumers do not have to spend the whole day for making their desired purchases. If they have to do so, chances are they will not visit the store again. For first impression is a lasting impression as far as consumer behaviour goes.
Location Needs Introspection Besides product quality and product displays there are other important factors behind the success of retail operations. Location is one of the most important factors behind the success of a supermarket or hypermarket operations. Ideal location of a store doesn’t only mean that the store is situated in an area where its target consumers reside or are expected to frequent, or in an area from where the target consumers of the store’s products are likely to make their purchases. Whether the retail store is located on the main road or in an alley is also the deciding factor in consumer preferences towards the store. Therefore before opening a store this factor also needs to be considered upon. Whether there are other similar stores in the vicinity, or
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whether there can be a parking problem are other factors to be weighed upon before choosing the location of the multi-brand retail store. There are instances when people have expressed their interest about goods in a given store, but chose not to visit it because of the parking problem or due to heavy traffic around the location of the store.
Wise Pricing One of the sure shot ways of keeping your organised retail business competitive and successful is to keep the prices as affordable as possible. Nothing is more appealing to the customer than finding that the goods she/he purchased at your shop were lower priced than another shop down the road. This can be done in several ways like having special sales, or buyone-get-one-free offers. But don’t compromise on the quality to a great deal in order to lower the price range. This step can be counterproductive. Another way of attracting customers is by having a wider range of a given type of products (say mangoes and apples) and brands (say of coffee) than other multi-brand retail stores.
Managing the Inventory Of course, the well-stocked shelves also facilitate success of organised retail
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experiencing brisk sales at her/his store, and which products are experiencing negligible sales, and then tailor the inventory accordingly, so that wastage is minimised. Though many of these above discussed principles seem to be more relevant for the success and as well as survival of organised retail businesses, but they can also be useful for the small grocery player, in the unorganised retail sector. It may be stated that managing store operations for a retail business of any size or complexity, ranging from the neighbourhood grocer to the multinational retail chain, is a challenging task. It entails integration among various functions in the store. When all the functions in the store are performed in an integrated manner and in perfect coordination, the store operations are likely to run smoothly ■ towards sure success.
Oct-Nov ’13
F E AT U R E
The Need for
Sustainable Eating By Swarnendu Biswas
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n the backdrop of incessant environmental degradation, sustainable lifestyles have garnered considerable mind and media share. Sustainable lifestyles also include sustainable eating. One of the ways the idea of sustainable eating can be fostered into reality is through the practice of vegetarianism or through abstinence of meat products, or at least through lesser consumption of meat than before. Vegetarianism has had always been fairly widespread in India, primarily for religious and cultural reasons. But now opting for an exclusively vegetarian diet is gaining popularity across the developed world, and this trend is thankfully running parallel to the growing meat consumption in the developing countries. It may be argued that going for exclusively vegetarian diet is gaining popularity in the developed world primarily for personal health reasons, which may include the objective of having lower risk of obesity and heart disease, having lower risk of cancer, and attaining greater longevity.
Health of Us and the Planet But there is no denying the fact that
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vegetarianism can also positively influence the sustainability of the planet. It is simply because growing agricultural produce results in less carbon emissions and involves less usage of water on an average, as compared to raising of livestock for meat. Yes, complete abstinence from nonvegetarian food may be quite difficult for many regular non-vegetarians. If not vegetarianism, at least regular adherence to a diet with vegetarian food items, fish and fruits, with no role of meat products can be helpful in solving the global hunger and water crisis and the continual threats to our fragile environment, which we would discuss below. There is no denying the fact that huge consumption of meat by humankind is leading and can lead to severe problems for our present and future.
Livestock and Deforestation The plethora of meat eaters requires the continuous breeding and maintenance of a huge livestock population, which need huge amounts of land and water, and which produce huge quantities of waste. In fact, the huge livestock population often leads to deforestation, for growing of
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feed crops and grazing, and deforestation is one of the reasons for endangering our environment. It may sound unbelievable but like many unbelievable facts it is true that over the centuries millions of hectares of trees have been decimated to present meat before the forks. We can very well imagine what would be the situation after say five decades, if meat eating population continues to increase across the developing nations as it is doing now.
Water and Land Besides deforestation, the maintenance of huge numbers of farm animals for meat production has effect on our water sources. According to an expert, production of one pound of beef requires almost thirty times more water than it is needed to produce one pound each of potato, wheat, maize and rice. If the same dietary pattern continues across the globe, it would lead to severe water scarcity in agriculture by 2050, when the world population is expected to reach 9 billion. More than 25 percent of earth’s terrestrial surface is used for grazing. According to FAO’s report titled Livestock’s Long Shadow - Environmental
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F E AT U R E Issues and Options “livestock production accounts for 70 percent of all agricultural land and 30 percent of the ice-free land surface on the planet.” This land could be better utilised for agriculture to feed the hungry millions.
Meat of the Food Crisis Besides, in a world facing severe food crisis, with approximately 1 billion people going hungry every night, the fact that livestock population consume majority of the crops of the world may sound shocking, but sadly it is true. And it is not surprising also for there are more than 56 billion animals raised across the globe each year for slaughter and consequently, for food; which is a number much more than the global population of humans And the sustenance of these animals for slaughter needs huge amounts of food. A significant proportion of farm animals are used for meat, and they are often slaughtered when their other economic utilities are exhausted. It is not only cruel, but also sheer uneconomical as far as the food crisis of the planet is concerned. Grains fed to farm animals can
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feed many, many people and thereby save them from hunger, only if we do not have to maintain such a huge stock of animals for the meat eating population. If the meat eating human population continues to increase rapidly in the developing world, as it is doing presently, the food crisis is expected to aggravate further in the years to come, and this can be perilous to the future of humankind. By turning vegetarians we non-vegetarians
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can potentially place more food before the world’s hungry population in the future. Besides the land and food crisis, rampant meat eating can lead to other environmental problems too, besides deforestation. The unimaginable quantity of livestock population on earth, which is a prerequisite for meeting the dietary needs of non-vegetarians across the globe, generates enormous greenhouse gas emissions, which we all know are harmful
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F E AT U R E
for our blue planet.
Greenhouse Emissions In fact, in FAO’s report named Livestock’s Long Shadow - Environmental Issues and Options, which was published in November 2006 and is very much relevant today, seven years after its publication, it was estimated that the livestock were responsible for 18 percent of greenhouse gas emissions, a bigger share than that of transport. The report also estimated that livestock accounted for 9 percent of anthropogenic carbon dioxide emissions, 37 percent of anthropogenic methane emissions, and 65 percent of anthropogenic nitrous oxide emissions. Here it deserves a mention that methane’s capacity to influence global warming is 25-30 times more than carbon dioxide. Many environmentalists believe that the major source of climate change during the last two centuries was primarily due to increased greenhouse gas emissions. Greenhouse gases, which include carbon dioxide and methane, trap heat in the atmosphere. These excessive greenhouse gas emissions are contributing towards global warming, which is in turn is leading to melting of glaciers, rising of sea level and can also frequent the occurrence of floods and
droughts. Unchecked greenhouse gas emissions can jeopardise the existence of our planet. Air pollution is not the only polluting effects of the livestock population reared for meat. The huge livestock population for meat also generates huge quantity of waste, which leads to land and water pollution. Moreover, animal waste has pathogens like salmonella, E coli, and cryptosporidium among others, which has the potential to transmit to humans through water run-off or through manure. Thus mountains of animal waste from livestock can make us prone to diseases, besides playing a role in ruining the land and water. If only more and more people resort to vegetarianism or at least skip meat as much as possible, the livestock population would drastically reduce within two or three generations (for their need would be reduced), and thus the strain on environment would be much lesser than it is today, thereby helping to save the future of earth. In fact, many experts believe that changing your diet from meat eating to vegetarian is more environment-friendly in effect than changing from incandescent to fluorescent bulbs. If we collectively do not make a conscious choice to switch over to a more predominantly vegetarian diet today, tomorrow it may be too late.
Vegetarian Eating out Thankfully, along with the sharp rise in demand for meat in the developing countries, more and more people in the developed world are also seen adopting to vegetarianism. The food service business of our country can play a major role in addressing these above-mentioned challenges to our environment and our future survival, by opening up more vegetarian and as well as vegan restaurants for the eating out crowd.
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The five-star hotels can also make it a practice to have one exclusively vegetarian restaurant in their ambit. Royal Vega restaurant of ITC Grand Chola, Chennai can serve as a pertinent example in this regard. Royal Vega presents a sumptuous offering of delectable vegetarian food from the magnificent royal kitchens of India. Featuring a fine collection of signature vegetarian dishes from across India, Royal Vega showcases the classical grandeur of the vegetarian repertoire of the subcontinent and beyond. The Country Inn & Suites by Carlson, Sahibabad is a unique five-star hotel where dining options are only vegetarian. These are some of the praiseworthy initiative in the hospitality industry towards vegetarian dining. And finding the clientele for vegetarian food in restaurants would not be a problem in a country where still more than 30 percent of the population is vegetarian, and where abhorrence of non-vegetarian food often has religious and ethical sanctions.
Our Regional Greens In order to convert many lovers of nonvegetarian food like me to vegetarian dishes, the restaurant business in metropolitan India should go beyond vegetable biryani and vegetable kebabs. They should bring to the forefront the many wonderful vegetarian specialties from India’s rich treasure-trove of regional cuisines, on the national platter. Some examples could be Aloo Posto and Mochar Ghonto from Bengal, Litti Chokha from Bihar, Sadya from Kerala and Pohay and Vada Pav from Maharasthra among others. There is every chance that timeless tastes of these and many more regional vegetarian dishes could soon waft from regional to national popularity through creative marketing endeavours. ■
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AGRI
Tackling
Agri-inflation By Swarnendu Biswas
P
resently, in India the prices of vegetables have simply skyrocketed, causing great disturbance in the budget of common people of the country. Though onion price rise is garnering more media focus, but that doesn’t mean that prices of many other vegetables are not subjected to severe inflation during the recent months. Onions may have experienced an almost unbelievable 278 percent hike during 2013, but the prices of other vegetables are also not at all pocket-friendly for the common men and women in India. Even the prices of tomatoes and potatoes have become unmanageable. Cereals are also out of reach for many as are fruits. The soaring cost of Basmati rice in the recent times, deserves special mention in this context. In fact, the food prices in India have enhanced by 18 percent as compared to the last year, and agricultural products are playing a crucial role in this back-breaking food inflation. However, the continuation of this recent escalation of vegetable prices can not only enhance misery in middle income and lower income households, which it is already causing, but it does have the potential to affect the restaurant business in the country too, especially those restaurant businesses which operate on small margins or are serving only vegetarian dishes.
likely that there would be marked enhancement in the prices of food products in restaurant business, in the days to come. This in turn may negatively effect the eating out culture; which in the recent years was gaining momentum because of certain conducive socio-economic and demographic factors. Overall, the continuation of the agricultural inflation that has been recurring in India in the recent years, may result in Indian restaurant business suffering a setback in demand, not only because of increased prices of food products in restaurants, but also due to the fact that middle income people would now have lesser disposable income after spending on their day-to-day fruits and vegetables than they were having say six months or one year earlier. Succinctly, these huge prices of fruits and vegetables are likely to leave them with lesser discretionary spending, which also includes the spending channeled on eating out. Those restaurants which would steadfastly refuse to raise prices despite the high prices of some of their chief ingredients (rice, fruits and vegetables), may have to compromise on the quality or portion size. This will be more true for the vegetarian dishes. In all the three cases (increase in prices, loss in quality or decrease in portion sizes within a short span of time) the restaurant business in India is likely to suffer a setback in demand.
Potential to Affect Eating Out If the prices of fruits and vegetables continue to remain at the steep level, or increase even beyond to where they are at presently, it is
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Ready to Eat? However, the exorbitant prices of fruits and vegetables can
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AGRI induce the consumers to opt for affordable pre-cooked and ready to eat products in a big way, which is likely to give a boost to this segment of the food & beverage industry. Already such a trend is getting evident. According to a survey by ASSOCHAM, sharp price rises in fruits and vegetables have compelled over 55 percent of middle and low income group people in the country to shift to precooked and ready-to-eat food items to maintain their kitchen budget. However, the nutritional value of many ready to eat options in the market can hardly match that of fruits and vegetables.
Such a Huge Wastage Many blame the exorbitant price rise of onions for our low rate of economic growth this year, and some blame the last year’s drought for it, and some for the excessive monsoons this year. They say that excessive rains in onion producing states like Maharashtra and Gujarat is responsible for the shortfall in onion production. And some others blame the middlemen and the hoarders. All of these reasons are true but these reasons don’t reveal the complete story. It should be remembered that besides onion prices, many other vegetables, fruits and cereals have also been subjected to severe inflation this year. In fact, price rise of vegetables and fruits is not a new phenomenon in the Indian economy, though this year the effect of agri-inflation has been particularly stinging. There are various other reasons for the recurring agriinflation in our economy besides the weather fluctuations and bottlenecks in economic growth, and the influences of the middlemen and hoarders. Unless we find effective and comprehensive solutions for these reasons, we cannot solve the recurring challenge of agri-inflation from our economy. In a recent study, ASSOCHAM has highlighted that India incurs post-harvest fruits and vegetable losses worth over Rs.2lakh crore each year, largely owing to the paucity of food processing units and modern cold storage facilities, and a callous attitude towards tackling the grave issue of post-harvest losses. West Bengal is leading the pack in this regard with annual post-harvest losses worth over Rs 13,657 crore followed by Gujarat (Rs 11,400 crore), Bihar (Rs 10,700 crore) and Uttar Pradesh (Rs 10,300 crore). Moreover, according to the same ASSOCHAM study, only about 22 percent of fruits and vegetables produced in India reach the wholesale market. This is a pathetic statistics by all standards. “Developing wholesale markets together with enhancing the cold storage capacities in local and regional markets are key for reducing post-harvest fruits and vegetable losses and enhancing their market arrival,” observed the ASSOCHAM study. If only the huge post-harvest wastage of our fruits and vegetables could be tackled by more widespread and exhaustive pest control measures, and by building up a comprehensive infrastructure of food processing units and cold storage facilities, greater quantity of fruits, vegetables and cereals would have entered the market. Their increased supply could help the administration to better tackle their huge demand, thereby inducing a relatively better stabilisation of agricultural prices in the country.
Direct Marketing by Farmers Urgent actions to prevent further increase in the current prices
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AGRI of fruits and vegetables in India are necessary. In fact, it is always preferable to reduce their present unmanageable rates, which would not only benefit the retail consumer, but also the entrepreneur in the food & beverage industry seen struggling with spiraling costs of production. The corrective steps include drastically curtailing the role of middleman in agriculture. It is common knowledge that the middlemen often not only prevent the farmers from getting their due price for their produce, but also are often responsible for inflated prices of fruits and vegetables in the market. It is because they often purchase the farm products from the farmers at very less price and sell them at the market at exorbitant rates. Thus both farmers and the retailers and as well as the food & beverage industry suffer. The Indian’s government’s passing of the Agricultural Produce Market Committee (APMC) Act for the purpose of regulating the functioning of wholesale agricultural markets throughout the nation is a desired step in this direction. This law has the potential to help prevent the operations of middlemen. Rythu Bazars in the state of Andhra Pradesh is a very good example of direct marketing of agricultural produce from farmers to consumers. More such examples must become reality soon. If our state governments(since agriculture is a state subject), along with the help of some corporate players, become proactive in presenting the farmers produce directly to the urban retail and institutional consumers from a plethora of huge supermarkets, the present scenario of exorbitant fruits and vegetable prices could be controlled to certain extent in the future. Otherwise, this type of maddening agri-inflation may occur again…and again, in India. Farmers’ cooperatives can also be treated as an effective answer to keep the agricultural prices in check, while at the same time facilitating to give farmers a good value for their agricultural produce through direct marketing of agricultural produce. State governments should support and promote more and more farmers’ cooperatives to eliminate the scourge of middlemen in agriculture. Farmers’ cooperative societies have been successful in Madhya Pradesh and Maharashtra. At the same time, a close watch on the hoarders of fruits, vegetables and cereals and stringent prevention of their nefarious activities by the state governments is also the need of the hour.
Infrastructure Development Of course, these steps need to be supplemented with more and better irrigation facilities, so that farmers’ produce even in this twenty-first century India do not have to often entirely depend on the vagaries of monsoon. The diesel and petrol prices need also to be kept in check for they play a crucial role in the costs of food products to the end consumers. Moreover, both the Union and the state governments, along with the support of private players, should jointly endeavour to vastly improve our bleak scenario in terms of food processing facilities and cold storage infrastructure. More effective pest control initiatives in warehouses storing food grains are also needed. ■
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BAKERY
For Success in
Bakery Business By Swarnendu Biswas
T
he Indian bakery business is going through an impressive growth phase. According to a report with Research and Markets, the market size for the Indian bakery industry was pegged at 4.7 billion USD in 2010, and it is expected to reach 7.6 billion USD by 2015. The report notes that with rapid growth and changing eating habits of people, bakery products have gained popularity among the masses of India. The bakery industry of India has also achieved the third position in generating revenue among the processed food sector. Considering the fast changing socioeconomic profile of the society, bakery products are likely to be in great demand in the near future. In urban India, families are having less time to cook, and often busy schedules are inducing snacking options to replace main meals. This trend is expected to increase the demand for breads, biscuits, burgers and pizzas in urban India even more in the near future. The low price and high nutrient value of many bakery products can also enhance their demand in the market. Many of the bakery products are already items of mass consumption in urban India. This eventually can make the bakery business a lucrative option for many enterprising bakers or would be bakers.
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Today with the Indian bakery industry showing impressive growth, bakery business has great possibilities of success in the country. And in the unorganised sector, which accounts for 65 percent of production of bakery products in India, the investment required for this business is also not that high. Neither is professional training mandatory for success for an entrepreneur entering the bakery business. One can start the bakery business even from one’s home. . But does in reality a bakery business, especially if it grows beyond a home-based enterprise and necessitates the renting or purchasing of a commercial space and hiring of a team, is that simple as it sounds? No it is not, in most cases. Simply knowledge of ingredients and judgement of the right proportion and temperature would not be enough; though absolutely necessary, to run a successful bakery enterprise in most cases. Various factors need to factored in for making a success in this highly competitive business. Of course, creativity and sustained hard work are the essential perquisites of bakery operations, but they are necessary conditions for success in this business, and not sufficient ones. The entrepreneurs toying with the idea of entering bakery business or expanding its area of operations into the realm of
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bakery business should be aware of the ongoing trends in the Indian bakery industry in order to tap their business potential in this area in a better manner. And they should also be endowed with some essential skills and attributes, and be aware of some essential market realties.
Location and Costs First of all, an entrepreneur thinking of starting a bakery enterprise (whether as a stand-alone bakery or a franchisee outlet) should be sure that her/his location of bakery is correct. That is she/he should be sure that the location where she/he is thinking of starting her/his bakery enterprise has a need for a new bakery outlet or not, or whether the consumer profile there is suited for the kind of baked products which she/he has in mind or has expertise in producing or not. If the answer to any of these questions is no, the entrepreneur should proceed to another suitable location that is within her/his budget, without thinking twice. Before starting a bakery operation, the total costs involved in running the bakery business should be calculated in detail, which should include both fixed and variable costs, and then the entrepreneur should make a very conservative estimation of the expected revenues of the bakery unit during the first six months or
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BAKERY one year of its operations. If the latter exceeds the former, then only the entrepreneur should initiate her/ his bakery business. Two examples of fixed cost are the rent of the outlet (assuming the entrepreneur doesn’t own the property where she/he decides to create a bakery) and the depreciation on the bakery equipment or the lease costs on them; two examples of variable cost are the cost of ingredients and human resources or labour. Though salary is often regarded as part of fixed costs, but since most of the bakeries in India operate in the unorganised sector, it is more realistic to assume that human resource costs or staff or labour costs as variable costs, which can fluctuate according to production needs. It is also very important to realise which costs to cut and which costs should be left untouched. For example, unheeded reduction in costs of ingredients and human resource with the objective to break even or earn profits in very quick time may be counterproductive for a startup bakery operation in these competitive times, when people are expecting
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innovation and quality in their bakery products. This step may lead to lowering the quality of the products, which may in turn get your start-up bakery business being swept away by the harsh and biting winds of competition, to the oblivion. Besides that one must remember that in bakery operations, creativity and ingredients can be distinguishing factors from its competition, and thus their costs shouldn’t be unduly curtailed if the entrepreneur wants to succeed in the business, in the long-run.
Ingredients and Equipments In this context, it is necessary to add that an entrepreneur venturing into a bakery business should have a sound knowledge of those ingredients and bakery equipments, which are to be used in her/ his business. Otherwise she/he has less chance of delivering quality products that can withstand or surpass the competition. Even if she/he has staff to manage the day-to-day operations, she/he must have a sound knowledge of ingredients and equipments, or else the entrepreneur can
Hammer Food & Beverage Business Review
be taken for a ride by the staff, resulting in compromise in quality.
Fresh Products and Waste Control The bakery business should always emphasise on fresh products, and on minimising wastage. The aroma of freshly baked products can play a great role in inducing the customers to a given bakery unit, and can easily convert a potential customer into a real one. Furthermore, creative display of freshly baked goods would help shape the first impression among the bakery’s consumers and potential consumers, and in bakery business, like in other facets of life, first impression though not certainly is the last impression(a succession of bad performances may eventually erase the goodwill earned through initial good performance), can easily be a lasting impression. For minimising waste in bakery operations it is necessary to keep a tab on the items which the bakery is selling the most, and the items which are attracting unimpressive sales. The inventory must be adjusted accordingly, so that precious
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BAKERY expenditure is not misallocated towards potential waste. This is especially crucial for a start-up bakery with very limited investment, for there waste can be a great waste of scarce money, whose continuation can soon lead to a cash crunch and thereby compromising on necessary investments.
Careful Pricing and Promotion The right pricing of your products is also very crucial. It is always better to price your bakery products judiciously, while taking into account of not only your cost of production, but also the prevailing price range of your competition nearby. It is because you need to cover your costs and make a healthy profit, but before that you need your products to be sold at the first place. At the same time, it is wise and prudent to give greater weightage on promotion/showcasing of those bakery products whose profit margins are higher in the bakery over those bakery products where the profit margin is comparatively lower in the given unit. It is a business savvy step to display the products whose profit margins are higher in a much more attractive way in the bakery as compared to other products in the given bakery’s portfolio. This may help the entrepreneur/baker to earn quick revenues and eventually decent profits by passing through break-even very soon.
to price them very high.
Good Range, Health and Taste The product range of bakeries should not only be comprehensive, but should try to merge health and taste well, as health is emerging as an important factor behind F&B purchases. Bakeries which can come up with innovative, tasty and healthy snacking options to satiate the sudden bouts of hunger pangs between lunch and dinner have a good chance to succeed in these times. Bakeries should not only have white bread, cakes, biscuits, patties, pastries, burgers, sandwiches, etc. Eventually bakeries should also have products like muffins, baguettes, croissants, various types of healthy breads and other bakery products, to which urban Indians are getting familiar with the maturity of globalisation.
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HR and Hygiene Good quality human resource with the right expertise and also the right attitude to go the extra mile, maintenance of impeccable hygiene standards in the bakery unit are some of the other measures which need to be taken care of if one needs to write an enduring success story in the Indian bakery industry. Incompetent personnel or the person lacking the right attitude to succeed in the bakery industry, and rampant untidiness in the atmosphere of the bakery can deter many potential guests.
Franchising Route
Customers’ Profile More than the national trends, the product range of a given bakery should give more importance to the local tastes where the given bakery is located. For example, designer dessert is an emerging trend in the Indian bakery business, but its consumers are still largely confined among the upper echelons of the society, in big cities of India. So if your bakery is not located in an upmarket locality in a big city, too much of your creativity and money invested in designer desserts are not likely to yield the desired revenues. However, that is not to say that if you are a bakery owner in a middle class area of a tier-II city, you shouldn’t experiment with designer desserts. You can, but you cannot afford to give too much focus on it. Ideally, the focus should be on mainstream bakery products like conventional cakes, biscuits, breads, etc. At the same time, you can create some themed and customised cakes with exotic ingredients as experiment and be sure not
traditional middle-class area and if you intend to target the consumers with moderate means and old-fashioned tastes, it is advisable not be too funky with your ambience and décor; for it may prove to be counterproductive and your would be consumers would be reluctant to come to you by perceiving you to be too costly or high-end. In that case it is better if you keep your bakery’s ambience and décor simple and straightforward.
Themed Offerings, Ambience and Decor To stand out from the competition, during celebrations like Diwali, Holi, or Christmas, producing of specially themed bakery products which reflect the spirit of these celebrations can be a savvy option to garner business. For example, rose shaped cakes on Valentine’s Day or crackers’ and candles’ shaped chocolates during Diwali can generate interest among the crowd. The other important factor that influences the success of bakery operations is the ambience and décor. These aspects should also depend upon the locality of the bakery or the clientele that it primarily caters to. For example, if your bakery is located in an upwardly mobile or posh area of a metropolitan city, the ambience and décor should be sleek and somewhat unique, but if your bakery is located in a
Hammer Food & Beverage Business Review
These days many retail bakery chains are opting for franchise route, which can be an opportunity for the entrepreneur to enter the bakery business with the advantage of instant brand recognition. For a franchisee bakery operation some of the above-mentioned factors for running a successful bakery operation need alteration. For example in a franchisee bakery outlet, pricing of the products will not be dependent upon the competition in the locality concerned from stand-alone bakeries or bakery chains, and neither does the outlet should have any individualistic appeal in terms of ambience and decor. Instead the ambience and décor of the franchisee bakery outlet should ideally simulate the ambience and décor of other franchisee bakery outlets of the franchise so that brand recognition process is facilitated. But to become a franchisee of a renowned brand, the entrepreneur often needs to have a tidy sum of money and a decent real estate area with her/him. Moreover, if the product quality of the franchisee fails, the hard-earned brand reputation of the franchise company is at stake, which may result in cancellation of the arrangement. The feature has been done with inputs from Ashok Malkani, Mumbai.
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PRODUCT
Biting into the
Burger By Swarnendu Biswas
T
hese days, burger has emerged as a very popular snack in the Indian fast food space. The huge crowd at McDonald’s, KFC’s and Nirula’s counters reflects that the burgers have caught the imagination of not only the young college going generation, but also of the urban middle-aged and middle class section of our society at large. Its popularity is a part of India’s growing fast food culture, which again is fostered by growing disposable incomes in select but sizeable pockets of the Indian society, influence of global tastes, fast-paced lifestyles, and growing nuclearisation of urban families. McDonald’s is of course synonymous with high quality burgers, but the presence of burgers in urban India is far more widespread than the ambit of McDonald’s in the country. Nirula’s and KFC India have their burgers and in the recent past Dunkin Donuts did come out with a range of burgers for the Indian
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market. Not only the organised fast food chains, but nowadays, we are seeing a plethora of bakeries and other eating out outlets in the unorganised sector displaying burgers on their shelves.
contents. The burgers are usually served with condiments like sauce, mustard, ketchup and mayonnaise, which are either added to the burger or presented on the side of the dish.
Simple and Delightful
German Influence, US Market
The global popularity of this simple and delightful fast food is complemented by its over hundred-year-old legacy. However, all said and done, the history of burger is not very old as compared to many other famous food items of the world. The name burger is derived from hamburger, and is a short form of the latter. A burger can be simply and commonly defined as a one or more cooked patties of minced goat meat, chicken, beef, pork, potato, etc., sandwiched between two bread buns. The patties and bun package can be spruced with green vegetables, lettuce, tomato, onion, cheese, as part of the
Though the term hamburger is derived from the word Hamburg, a city in Germany, but modern burgers were probably not presented to the world by the Germans, as is being commonly believed. The burger could possibly have its origins in the US, though the German influence on burgers could not be discounted. Here it deserves a mention that during the mid- nineteenth century, a plethora of immigrants from various parts of northern Europe were beginning their voyages to the United States from Hamburg, with the objective of settling in the ‘New World.’ They eventually introduced their culinary legacies and customs to their host country, one or
Hammer Food & Beverage Business Review
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PRODUCT some of which probably led to the creation of burgers. During that period, New York was the most common destination for ships cruising from Hamburg, and various restaurants in the vibrant city began offering the Hamburgstyle steak in order to attract German sailors and immigrants landing there. During the late 19th century, Hamburg steak, which can be regarded as precursor to hamburger, were served in many restaurants located in the port of New York. The dish was a lightly salted and often smoked beef minced by hand, which was usually served along with onions and bread crumbs. This dish was similar to minced beef preparations found in Hamburg in those days and helped to create nostalgia among the huge exodus of German and other European immigrants to the US. And nostalgia is often channelised into healthy revenues. It is believed by many food historians that the first hamburger (which is also referred to as burger) was created by a Danish immigrant named Louis Lassen of Louis’ Lunch — a small lunch wagon in Connecticut — in 1900. Though bread and meat were consumed separately or as a sandwich much before the invention of hamburgers, but it is believed that they were first presented between two slices of bun only in the beginning of the twentieth century. However, there are other claims to the invention of burger. Many claim that Charlie Nagreen used to sell pork meat between two slices of bread at the Seymour Fair (now known as Outagamie County Fair), Wisconsin, USA, way back in 1885, which enabled his consumers to eat while walking along. The Seymour Community Historical Society of Seymour, Wisconsin has credited Charlie Nagreen with the invention of hamburger. He is also known as “Hamburger Charlie.” But according to the research of White Castle, an US-based fast food hamburger restaurant chain, hamburger was first created in Hamburg, Germany, by a German cook named Otto Kuase, who came up with this fast food option in 1891. However, the most popular among these and many other claims towards the origins of hamburger or burger is that of Louis Lassen’s of Louis’ Lunch, who incidentally is believed to have come up with this singular combination, which in the later half of the next century was going to foster the fast food revolution, to cater the need of a patron who was in a tearing hurry (yes, in those days too time was scarce). Being too busy to sit and dine, he asked for something to eat on the move, and the ingenuous Lassen came up with the first hamburger, whose filling was a broiled beef patty.
The Rise of White Castle If to McDonald’s credit should go for popularising hamburgers across the globe, to the White Castle goes the credit of making hamburgers an integral part of the palate of the US people. White Castle was founded in 1921, by Walter Anderson and Billy Ingram, in Wichita, Kansas, US. Presently, the fast food hamburger chain is headquartered in Columbus, US. Credited to be first fast food chain in the world, the company is known for its small, square hamburgers, which are also known as sliders. In the aftermath of World War-I, probably due to widespread anti-German sentiments in the US at that time, burgers’ popularity received a setback in the country. But the sliders
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PRODUCT from White Castle revived the popularity of burgers in the US. The impeccable hygienic standards followed at White Castle outlets also managed to dispel US people’s apprehension at that time regarding eating ground beef, which was caused by Upton Sinclair’s novel named The Jungle(1906) that showcased the poor sanitation practices of the meat packing industry. Moreover, White Castle’s chain-wide standardised method of food preparation instilled confidence among the consumers that they would receive the same quality of offerings from any White Castle outlet. Besides, as the concept of fast food was unknown at that time in the United States (and elsewhere too), there was absence of infrastructure to support the business. The company therefore created its own infrastructure, which included centralised bakeries, meat supply plants, and warehouses to meet its supply requirements. However, the company’s refusal to franchise or resort to loan has probably lowered its growth potential. Despite pioneering the concept of fast food and the nationwide popularity of burgers, all of White Castle’s 420 outlets are located within the US, which doesn’t sound impressive in front of other huge QSR chains, which begun much later but have emerged as global forces in the QSR business.
visited the outlet for a business purpose, he was impressed by the bothers’ effective operations, and pitched his vision of creating McDonald’s restaurants all over the US to them. Kroc was the first to realise the huge business potential that the restaurant did embody. However, eventually the reality of McDonald’s was to even surpass this initial vision of Ray Kroc… The brothers and the visionary joined hands in 1955, when Kroc became the franchise agent of the McDonald brothers. In 1955, Kroc founded the McDonald’s Corporation. He opened the very first restaurant of McDonald’s Inc. in Des Plaines, Illinois, USA. The Des Plaines outlet garnered hundreds of dollars on its opening day, and soon more eager franchisees were lining up. Kroc franchised scores of restaurants to franchisees. By 1958, McDonald’s had sold its 100 millionth hamburger…and that was just the beginning of the story. The brothers, however, didn’t feel the
An Inspiring Story Without reference to McDonald’s no story of burger can be complete. The success of this largest hamburger chain in the world speaks volumes of the entrepreneurial genius of Ray Kroc, who fashioned its phenomenal growth. The genesis of the company can be traced to 1940, nineteen years after White Castle came into being. It begun as a barbecue restaurant in San Bernardino, California, that was being run by Richard and his brother Maurice McDonald. They produced a limited menu, focusing on just a few items—burgers, fries and beverages—which facilitated or rather enabled them to emphasise on quality at every step. Here it deserves a mention that in 1948, the brothers reorganised their business as a hamburger stand by introducing production line principles. When Kroc, who was a milkshake machine salesman at the time,
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pressing need to expand their business on a nationwide basis. Kroc eventually purchased the chain from the McDonald brothers in 1961. He soon made McDonald’s burger not only a national favourite but a global success story in marketing. The edifices of McDonald’s success story, which created global popularity for burgers, were probably the stringent consistency of quality across outlets located in different geographies, and successful franchise operations. Ray Kroc believed in the entrepreneurial spirit, and rewarded his franchisees for individual creativity. Many of McDonald’s most famous menu items—like the Big Mac, Filet-O-Fish and the Egg McMuffin— were created by the franchisees. At the same time, the McDonald’s operating system insisted
Hammer Food & Beverage Business Review
franchisees to follow the core McDonald’s principles of quality, service, cleanliness and value.
Catering to Indian Tastes Today, McDonald’s has presence in 130 countries across more than 32,000 outlets, and the fast food chain serves 58 million customers, on an average, each day. In India, where McDonald’s begun its journey in 1996, the burger chain has a network of over 300 restaurants. India is the first country in the world where McDonald’s does not offer any beef and pork items. McDonald’s have also made earnest and successful endeavours in catering to the Indian tastes. More than 70 percent of McDonald’s menu in India has been locally developed with complete segregation of vegetarian and non-vegetarian products right from the food processing plants to the point of serving the customers. McDonald’s commitment to its Indian customers is evident even in development of special sauces that use local spices and chillies. Today, burger, a fast food product which originated from the other part of the planet, has became favourite of middle class urban Indians. Besides the above-mentioned socio-economic factors, which were mentioned in the first paragraph of the story, the growing Indianisation of burgers has also contributed to their popularity among Indians, many of whom favour global tastes with local flavours. McVeggie burger, McSpicy Paneer, McAloo Tikki, Masala Grill Veg burger from McDonald’s, and KFC’s Veg Zinger burger, and its recently launched Potato Krisper — a crispy potato patty, topped with tangy sauce and served up in a soft, warm bun — are only some of the plethora of burgers catering to the nuanced Indian tastes. However, the burger offerings of the QSRs should be more sensitive to the regional flavours of India, and these chains need to come up with more pocket-friendly burger options than before, if they want the taste and flavour of their burgers to permeate deeper into the realm of tier-II cities and even the huge untapped rural India. Probably the QSRs selling their burgers in India these days need another genius like Ray Kroc to make burger’s popularity a pan-Indian I reality in true sense.
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BEVERAGE
Towards
Syrupy Success
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Hammer Food & Beverage Business Review
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In fact, the varied usage that syrups can be put through to accentuate the beverage appeal of bars and cafes can make one awestruck. “Our syrups play their role in alcoholic beverages, which also include beers, in coffees, in whipped cream, and also in ice creams as topping,” informed Olivier Monin, the President of Monin. He told that bars in restaurants, irrespective of whether they be
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For Bars and Cafes
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the world by volume, with only China and Russia ahead of us in this regard. Along with the growing popularity of alcoholic beverages, the popularity of coffee café chains are also on the rise in urban India and its reasons for growth are also somewhat similar to the reasons for growth in consumption of alcoholic beverages in general, in the country. Both these trends are inducing varied creative concoctions of syrups to gain currency in the Indian beverage industry, for these syrups are playing crucial roles in bars and coffee bars by making assorted alcoholic beverages and coffee concoctions more appealing to the tastes of their consumers. One can say that syrups can play a hugely facilitative role in the bar and coffee café business of the country, in the near future.
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ccording to ASSOCHAM, the alcohol consumption in India will go beyond 19,000 million litres by 2015. The fact that in 2011 the alcohol consumption in India was only 6,700 million litres, speaks volumes about the growing popularity of alcoholic beverages in the Indian food & beverage industry. According to the estimates of Euromonitor International, during 201217, the spirits volumes in India would grow at a 7 percent compounded annual growth rate. The rise in disposable incomes and greater openness in the society due to maturation of globalisation could be attributed to this trend. India happens to be the third largest global spirits market in
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By Swarnendu Biswas stand-alone restaurants, a part of the restaurant chain, or restaurants in hotels, and coffee cafes comprise Monin’s major clientele in India. The family-owned company caters to the professionals in the beverage industry, which include highrange cocktail makers and barmen among others. Here it deserves a mention that Monin, with its presence in 144 countries, is a globally renowned producer of premium flavourings for beverage and culinary applications. Monin, which has won several esteemed awards during its fluid journey through global success, also happens to be an important player in the evolving syrup market of India. The company entered the Indian market in 2003, where it has been floating 120 flavours. “Green apple, water melon, peach, mojito mint and passion fruit are some of our popular flavours in India, which are used to enhance the feel of cocktails and mocktails,” observed Martin. Strobos, the Beverage Innovation Manager at the Monin’s newly built studio at Gurgaon. For coffee bars, the caramel, hazelnut and cinnamon flavours from Monin can create heavenly drinks out of latte, cappuccino, and mocha. Monin’s range of flavours can not only play a facilitative role in cocktails and coffees, but also in teas. In fact, the Monin’s flavoured tea concentrates are a
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of India but our major focus is in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad and Pune. But considering the growing demand for our syrups in the country, we also want to deepen our distribution network across various tier-II cities of India,” explained Olivier Monin. According to him, the post-modern and globalised India of twenty-first century has a huge potential for syrups across its restaurants, bars and coffee cafes.
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Olivier Monin
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Presently, after wisely gauging the growing popularity of its syrups in an evolving Indian market, the French company with more than a hundred-year-old legacy(the company was set up by a 19-year-old dynamic entrepreneur named Georges Monin, in 1912), has envisaged to deepen its distribution network in India. “At present we have presence in 45 cities
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Monin and the Market
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refreshing blend of all-natural fruit juices, plant extracts, and gourmet teas. Though Monin’s flavours are uniform across the globe, for the Indian market, Monin has tailored a unique concoction named Chai. The ‘Chai’ from Monin is a spicy teabased concentrate that combines ginger, cinnamon and clove touches for versatile usage. “Besides continually adding value to the drinks, we also develop completely new beverage menu on request, for bars and coffee cafés,” informed Strobos. In the recent past, Monin has come up with trendy frappe powders in five flavours — chocolate, coffee, non-dairy, yoghurt and vanilla. All these frappe powders, which are Monin’s international launch, are now available in the Indian market.
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BEVERAGE Monin has recently come up with a production plant in Malaysia, which is expected to facilitate the company to tap its South Asian markets, which include the Indian market too, more vigorously.
Studio for Awareness Of course, despite their increasing popularity in the country, the market for syrups in India is at a nascent stage. Therefore exploring the full potential of syrup concoctions in alcoholic beverages and coffees need sustained awareness building exercises in the Indian food & beverage industry by the syrup manufacturers in India. The newly developed studio of Monin at Gurgaon serves this purpose, besides of course conducting R&D activities pertaining to the development of new recipes and menus of Monin. “We are planning to have more such studios in India, in the near future, in order to enhance the spread of awareness of our products across the industry, through dissemination of useful information,” proffered Olivier Monin candidly. Monin has also conducted road shows in India to generate market awareness for the usage of its products. I
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PUB
Get Heady with
Nysha By Swarnendu Biswas
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t a first glance, the Nysha Bar & Grill, located at the posh marketplace of Sector 18 in Noida, came across as a combination of style and substance. Further observation confirmed or rather reinforced the first impression. The 80-cover pub-cum-restaurant, which includes a 30 cover private dining area within its ambit, exudes a casual yet formal ambience that is likely to encourage both the fun loving youngsters as well as the graying on the temples corporate honchos visiting or working at Noida to have a heady time at the place, after the sun sets on the hectic day. Of course, that doesn’t mean they need to visit the bar at Nysha Bar
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& Grill only after the dusk descends on Delhi NCR, for the place is open from 12 am to 12 pm, daily.
The People’s Place At the same time, the family crowd or a couple thinking of having a romantic rendezvous may not mind enjoying the outlet’s diverse and delicious multi-cuisine options after a tiring shopping spree at Sector 18, with or without the accompaniment of assorted alcoholic beverages. In fact, the private dining area of
the restaurant is targeted at couples, families and friends. The décor of the place, which is spread across an area of 2500 sq. ft.in the basement, reflects an amalgamation of Indian and Turkish influences, with a sprinkling of Mediterranean touch in the alcoves. According to Varun Khera, the Managing Director of Nysha Bar & Grill and one of the four business partners of Bean Tree Coffee Pvt. Ltd. the décor of the place is going to be renovated soon, and the renovated restaurant Varun Khera will reflect an erstwhile royal
Hammer Food & Beverage Business Review
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PUB cum-restaurant can not only impress an occasional drinker of alcoholic beverages but also a connoisseur.
Raising the Bar aura of medieval India, through its ambience and décor. Khera has made quite an eventful journey from his days as a cabin crew with Jet Airways, but his unassuming behaviour didn’t betray any headiness of success.
Going Back Nysha Bar & Grill is one of the three offerings of Bean Tree Coffee Pvt. Ltd., a company which was set up in 2005 by four enterprising men wanting to explore new horizons in the Indian food service industry. The other three founders and business partners of Bean Tree Coffee Pvt. Ltd are Manas Wadhwa, Sachin Maharia, and Charu Ralli. The other two expressions of the company in the restaurant business are Desi Vibes, and Kaffiiaa. Desi Vibes is a multi-award winning Indian restaurant where you can get delicious north
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Indian and Mughlai food, and Kaffiia is an Italian café and lounge. “Nysha Bar & Grill was launched in October 2011 to cater to the need of an elegant and well-stocked pub which could also provide a global gastronomic trip to the guests with spirits to match; here in the heart of Noida,” explained Khera. The beverage choices at the pub-
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The bar truly raises the bar in terms of its varied offerings. In the realm of whiskies, the exotic scotches in Red Label, Black Label, Gold Label and Blue Label are complemented with renowned domestic brands like Black Dog, 100 Pipers and Blenders Pride. The single malt section has globally renowned names like Glenfiddich, Laphroaig and Talisker adorn the beverage menu. From Beefeater to Baccardi, the gin and rim section is also decent enough. If you like to grin and beer it, then chances are you would get floored with frothy choices ranging from Kingfisher, Tuborg, Carlsberg, Budweiser, Corona and Stella. I could discern that the vodka selections at the exhaustive bar also included the names of important brands like Smirnoff, Absolut and Grey Goose. adorning the shelves. “Our list of beverages also encompasses a range of liqueurs, cognac,
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PUB tequila, shooters, bubbles, classic cocktails and innovative martinis, and wines, including champagnes. For those who are not interested in alcoholic beverages, we have a wide gamut of mocktails to feel in high spirits without spirits. We think this exhaustive list of beverages can cater to the increasingly diversified drinking preferences of modern urban India, whose microcosm can be found in Noida,” explained Manas Wadhwa. “Besides the regular cocktails, we also have champagne-based cocktails on offer, which are liked by our discerning crowd,” added Khera. Sachin Maharia also joined the conversation. He informed us that besides the “evergreen cocktails like MaiTai, Bloody Mary, Margarita, Manhattan, etc. Nysha Bar & Grill has some innovative martinis on offer like Pomegranate Martini, Passion & Cranberry Martini, Serpent (a concoction of vodka, sandal wood, apple juice, lime juice, brown sugar and lemon grass) on offer.”
Nysha Bar & Grill. One of days of the week. them is trained in an array of The culinary offerings at global cuisines, another has Nysha Bar & Grill can specialty in Indian curries, wonderfully complement while the third is a Tandoor its heady offerings. “The expert. exhaustive array of heady beverages at Nysha Bar & Intelligent Promotions Grill are complemented The resto-bar did came up with a gamut of cuisines on with some interesting the menu, which include promotions in the recent past. tastes and flavours from One of the recent promotions Mexican, Italian, at Nysha Bar & Grill was the Mediterranean, Lebanese, offer of three pegs of 100 Turkish, Chinese and Manas Wadhwa Pipers whisky of 12 years old, Mughlai cuisines,” asserted for the price of one. This offer was valid Khera. during August-October of this year. The Whether one would prefer to begin pub-cum-restaurant also offered four one’s gastronomic journey with achari bottles of Kingfisher beer at Rs.549 paneer tikka or a Lebanese platter, or for during the summer months of this year, that matter with a non-vegetarian kebab which no doubt, was very well platter, she/he would not be appreciated by the leisure as well as disappointed here. Similarly mutton barra kebab, murgh corporate crowd visiting the outlet. malai tikka and ajwaini fish “As far as other promotions go, we have introduced special packages for tikka are not out of place corporates, have started ladies night on with herbed chicken lasagne Wednesdays with free cocktails, and also or a crispy whole pomfret in did invite upcoming and talented sufi ginger chilli sauce at the menu world of Nysha Bar & singers to perform at the pub-cumrestaurant,” pointed out Charu Ralli, Grill We found the Mutton The Gastronomic Journey Charu Ralli who heads the operations and brings his Roganjosh and Dal Makhani Me and my colleague expertise of event management to the extremely sumptuous to our Debnath began with 100 company. He added that the outlet has tastes. Pipers, which was accompanied with been attracting a crowd of 150 people Khera stated that the exhaustive crispy risotto with exotic vegetables, and on an average on a daily basis, with the menu also has a section on sumptuous Triple Chicken Sampler Platter. Yes, like footfalls going up to 200 people on an South Indian delights which include the readers to me also the name of the average, on a given weekend. items like Chicken Chettinad and second dish seemed a bit out of the Malabari Parantha among others. “Our Ralli also confidently asserted that ordinary, and I enquired Khera about variety of snacking and fine dining Nysha Bar & Grill, which involved an the contents of the dish. “In the Triple options at affordable rates induces many approximate initial investment of Chicken Sampler Platter, we have three guests staying at Radisson Blu MBD Rs.3000-3500 per sq.ft,. is expected to styles of chicken preparations on a single Hotel Noida to dine here,” observed platter. It includes chicken satay which break even by 2014. As far as the brand Khera. is a Mexican preparation, chicken extension goes, “We are also envisaging In order to meet the needs of a pentagon which is a Chinese new Nysha Bar & Grill outlets in Delhi, diversified palate, there are three trained preparation, and chicken Lebanese, from 2014 end onwards,” proffered Chefs who are exclusively engaged with which as the name suggests, is a ■ Khera. Lebanese preparation,” elaborated the dynamic entrepreneur. The food and drink that followed gelled well with the soulful Bollywood numbers belted out by the inhouse DJ. The musical environment at the outlet keeps changing with the Sachin Maharia
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Hammer Food & Beverage Business Review
Oct-Nov ’13
THEME CUISINE
Globalisation of
Tastes By Sharmila Chand
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reole rice to Teriyaki Lamb, shami kebab to mezee platter, sushi to biryani, pan fried duck breast in African style to Napoletana alle Pronto (fresh pomodoro basilica sauce with broccoli, pine nuts and olives) – the new generation restaurants are presenting a menu encompassing diverse culinary genres. Not very long ago, risottos and paellas, au gratin and steaks were dishes meant to be savoured at five-star hotels’ coffee shops and restaurants, in India. There were hardly any other options to enjoy them. But in today’s India, you can have them at various multi cuisine restaurants too, which are not within the ambit of five-star properties. This is an exciting time for the F&B industry, which includes the F&B industry of India too. However, the
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increasing popularity of various global cuisines in India reflects diners’ sophisticated palates, their quest for gastronomic adventure and their desire to explore unheard and unconventional cuisines from the world. For example, there is a growing demand for cuisines like Peruvian cuisine (yes, it is from Peru, located in other part of the world), for its unique take on familiar ingredients such as corn, potatoes and chilies. Moroccan cuisine, Korean cuisine, and the exploration of Japanese cuisine beyond the familiar option of sushi are also getting vogue in India. One of the global cuisines which is getting very much popular in urban India is the Italian cuisine. Now there are a large number of discerning Indian restaurant visitors who have knowledge and taste of
Hammer Food & Beverage Business Review
the rich treasure-trove of Italian dishes, that go much beyond your regular pizza and pasta. But the exciting trend is that along with the individual popularity of various cuisines from the world which have been getting witnessed in the post-modern India’s culinary map since a decade, intermingling of various cuisines from across the globe is also taking place in many restaurants of metropolitan India, in these recent times. The matured palate of increasing numbers of Indians is embracing amalgamation of divergent flavours, which is encouraging many innovative Chefs’ new-age culinary creations. An interesting trend in the Indian restaurant business these days is the innovative way of synthesising the culinary culture and flavours from different geographies. It is no longer greatly surprising to have an Italian pizza spruced with South-east Asian flavours, or a galouti kebab filled with foie gras. Chefs are giving global fusion food a new meaning altogether. Well, multi-cuisine is emerging as the pragmatic choice for many restaurants dotting across Indian metropolitan cities. Leave no chance, let the guests be happy on a worldwide gastronomic adventure seems to be an emerging current of business logic in the high-end restaurant business, in metropolitan India. For the guests, whether you hanker for a continental or home-style fare, it is time to step out and eat out. It is because there is a world of tastes waiting for the guests to explore…
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THEME CUISINE This above-mentioned proclivity towards having a variety of global cuisines on the platter may be more evident in the high-end restaurant business across metropolitan cities of India, but it is percolating across tier-I and tier-II cities of India too. Here I present some restaurants/ restaurant chains, which have successfully come up with creative multi-cuisine combinations to satiate the continually evolving palate of their guests.
and comfort they have come to expect from us, and rightfully so, we constantly innovate and add to the menu so that there is always something new for them to try. Our new menu takes inspiration from different parts of the world and gives our guests a chance to try from south-west American to mainland European to oriental dishes,” explained Aditya Parikh, Director, Pronto.
Set’z Celebrate Culinary Variety Global Flavours at Pronto For example, Pronto, the café chain in Mumbai famously known for its pastas and pizzas, has now added a wide range of new mouth-watering dishes including the delectable Cayenne Chicken Salad (a healthy mix of grilled cayenne chicken, romaine lettuce, sautéed onions, cherry
tomatoes and corn tortilla strips served in a tangy chipotle dressing) & the Tuna Salad made with tuna flakes, apples, mixed greens, jalapeno, basil, carrots and cucumbers, and served with a mustard and dill dressing. The pastas include a wide variety of vegetarian as well as non-vegetarian fare. There are some new favourites on offer too which include Napoletana alle Pronto (fresh pomodoro basilica sauce with broccoli, pine nuts and olives), Panna E Funghi (a creamy concoction of mushrooms, fresh basil and parmesan cheese), and Calabrese (pepperoni, hot salami, paprika, olives, spring onions and fresh tomatoes). Adding on to the Pronto’s list of pizzas is the must try Best Ever Supreme pizza, a complete and wholesome treat for every meat lover. This mouth-watering pizza consists of grilled chicken, roast beef, pork salami, caramelised onions and grilled peppers. “Most of our guests are loyal repeat customers and are like family to us. To provide them with the level of service
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Set’z in Delhi is the perfect example of multi-cuisine gastronomic fare. European, Arabic, Chinese, Japanese, Thai and Indian flavours have found their one-stop destination at Set’z. With 20 expatriate Chefs working on their specialties, being on this restaurant simulates the experience of being on a
stage with the skilled Chefs performing food theatre. Set’z’s exceptional open kitchens incorporate seven main cooking sections, each complete in all respects, be it the wood-fired Peking duck oven or the gigantic stone cladded pizza oven or the char griller for kebabs. With the emphasis on the very best, freshest ingredients, Set’z’s menu features uncomplicated, seasonal dishes, highlighted with classic favourites from each kitchen. At the restaurant, diners can fascinatingly watch as meats, seafood and vegetables are being prepared and cooked to perfection before being served.
American Legacy, International Appeal The recently opened The California Boulevard at Rajouri Garden, New Delhi, brings together the deep understanding of food from across the seas, and rinses this knowledge and understanding of tastes with the wonderful wines. The restaurant named after the iconic
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American landmark, presents a picture of flamboyance through Hollywood, music, fashion, design and brilliant service. There is a lot more that goes beyond the name; its multi-cuisine menu along with a curated collection of fine wines exalts the sense of taste, while the posh ambience and décor, manifested through posters of leading ladies from Hollywood, designer furniture and serving ware, western music and aroma of luxurious perfumes together creates a magical designer ambience, making a wonderful impression on the other four senses. A classy Harley Davidson parked near the entrance of the restaurant accentuates the ambience. The brainchild of restaurateur Rajan Sethi, the restaurant even has a wooden pizza oven — a testimony to the
attention paid to details when it comes to an authentic multi-cuisine experience. One can say that The California Boulevard promises to transport its patrons to a world that smells like America, speaks like America, feels like the ‘American Dream’ but tastes international. From doing survey of these and many more high-end multi-cuisine restaurants in the recent times, and gauging their increasing popularity notwithstanding the current lean phase in the Indian hospitality industry, I think that it is the time to welcome ourselves to an era of global cuisines, an era where Chefs are producing a plethora of dishes catering to experimental tastes; bringing together the very best of east and west. The globalisation of tastes and flavours is an emerging trend in the Indian food & beverage industry. And the perfect complements to a variety of global cuisine offerings on a single platter are an excellent array of fine wines, good coffees, and a wide selection ■ of popular Continental desserts.
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RESTAURANT
Tastes
from Two Continents By Sharmila Chand
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bold new epicurean adventure is the best way to define the newly opened Uzuri Deck and Dining restaurant in the capital. Here the European cuisine is being offered with the scrumptious taste from the dark and beautiful Africa. Uzuri is a Swahili word for ‘the state or characteristic of being good.’ The menu has been conceptualised to
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present a memorable gourmet experience to the guests by beautifully mingling the modern European cuisine with the rustic flavours of Africa. The beverage list includes extensive wine selection and signature cocktails. The restaurant, located at M block of Greater Kailash-II, New Delhi, is spread over two levels. At Level 1 you can get an intimate dinning space along with
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chic décor. It has a seating capacity for 40 guests at a time. The Bar and Deck on Level 2 of the restaurant has an equally complementing décor with wellappointed indoor and outdoor space, offering a perfect place to enjoy and revel drinks with friends and family.
The Interiors The décor of the restaurant reflects exotic Africa. Warm, exotic woods and earthy materials such as stone and terracotta have been used, intricately carved with African motifs. The moody bar, overlooking the deck, with lounge seating and palm trees completes the hedonistic experience. The idea was to present the interiors that complemented the cuisine. Tribal patterned fabrics were designed exclusively for the restaurant. Every element of décor of the restaurant is bespoke, from chairs to tables and some of the artworks; all handmade at the studio. Preeti Knowles of Hidden Gallery
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RESTAURANT a gastronomic journey across continents, spanning from Europe to Africa or from Africa to Europe for that matter. Collectively, the creative Chefs have conceptualised a menu that beautifully mingles the flavours of the two continents and have presented it to the global Indians. The beverage list boasts of an extensive wine selection to complement the food, combined with selective spirits and signature cocktails which are native to African palates. 1234 1234 1234 1234 1234 1234
Signature Dishes
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• Crispy Cocoon Prawns, Mango & Mint Salsa, Summer Vodka Dressing with a side of Parma Ham & Melon. • Trio of Beetroot & Goat’s Cheese with Toasted Pumpkin Seeds and Warm Bread. • Pan Fried Duck Breast, Crispy Confit Leg, Citrus Mash, African Style Beetroot & Wilted Spinach with Port & Madeira Jus. • Home Smoked Confit Salmon Fillet with Pickled Koirabi, Sesame Seeds and Horseradish Vinaigrette. • Kenyan Coffee and Paprika Tenderloin with a Smoked Truffle Compound Butter, Fondant Potato with Chargrilled Vegetables.
fame has done the interiors. She has a string of quality restaurant interiors to her name and is famed for her great aesthetic designs as well as great quality.
The Promoters The promoters of Uzuri Deck and Dining, Aanshul Rastogii and Gaurav Parwani have on board a team of talented and experienced people in the trade, who have joined hands on this project. Aanshul Rastogii is a hospitality professional specialising in operational and commercial finance, having headed finance division at premium international hotels in London. Gaurav Parwani is a hospitality professional from London with hands on experience in food & beverage operations in premium international hotels. “We aimed to introduce a restaurant concept that hasn’t existed in Delhi. Our target guest profile is a welltravelled Indian/expat within the age group of 30-60. We decided on a European cuisine infused with the culinary touch of Africa, which entailed hiring the right Chefs. We have on board Chef Rishim Sachdeva, who is bringing on the table technical skills and knowledge of European
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Bikram Singh is a seasoned hospitality professional with a passion for restaurants and hotels. He has fourteen years of hands-on experience in setting up and operations of food and beverage establishments. At present, he heads a boutique consulting firm named Skill Smith Hospitality Consulting that offers solutions to hotels & restaurants in concept development, technical planning and operations. Singh has provided crucial support to the overall concept development, as well as to the technical and operational planning of Uzuri Deck and Dining. flavours which he had acquired in Europe, and Chef Guy Clark, a passionate cook with knowledge of African spices,” Rastogii explained, while talking about the restaurant’s target profile and its unique culinary character. “With the young generation travelling worldwide and having been exposed to the international cuisines, they are now welcoming and open to experimenting new food trends with demanding standards,” pointed out Parwani, while explaining the business logic behind this amalgamation of flavours in their restaurant. I
The Creative Chefs Two young and extremely talented Chefs lead the kitchen at Uzuri Deck and Dining. Guy Clark has joined the team from South Africa and is a celebrated name in the culinary world of the same country. Rishim Sachdeva of Indian origin is a trained Chef. Being a globetrotter at a young age, he has gained tremendous technical skills and work experience in Europe with some renowned and celebrated Michelin Star Chefs and restaurants like The Fat Duck by Chef Heston Blumenthal and Chef Matthias Taubert.
The Menu The Chefs intend taking their guests on
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CHEF VOICE
Being Passionate
About Perfection By Sharmila Chand
Born and brought up in a small town in Jharkhand, Chandra Shekhar Pandey, Executive Chef, The LaLiT Golf & Spa Resort Goa, always has had a love for good food. At the same time, he was endowed with a good memory of how a particular dish tasted and also was armed with the ability or rather the quality to discern and differentiate various flavours and tastes. These attributes are of course, still with him, only further honed by experience. Pandey begun his culinary journey from IHM Mumbai and later he went on to train under the Kitchen Management Training Program at the Oberoi Centre for Learning and Development. “The program, which laid an equal emphasis on culinary knowledge and skills, gave me an opportunity to work under the best Chefs of India at that time,” recollected Pandey. He developed his skills in Indian cuisine from working in restaurants like Kandahar at The Oberoi, Mumbai and at Soma at Grand Hyatt, Mumbai. “I picked up my knowledge about western cuisine from Frangipani at Trident, Nariman Point, Mumbai, and from working at Grand Café and Celini, at Hyatt. My exposure in oriental cuisine is due to my tenure in quality restaurants like Baan Thai, China House, and India Jones,” expressed Pandey, quite candidly. All these exposures in varied forms of culinary arts have helped Pandey in gaining a broad perspective in various cuisines and in the application of various culinary techniques. The excerpts of the interview follow: How do you define yourself? I am a student of life. I believe in attaining perfection with continual improvements. I am spiritual yet rational. I try to be humble and to learn from everyone. I have an appetite for knowledge. I believe that unless and until one does not become a good human being, she/he cannot become a good Chef.
What is the meaning of life for you? For me, life is an exciting journey on a roller coaster with its own ups and downs. Every day is an opportunity to learn
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and to achieve your goals.
Who is/are your source of inspiration?
What would you like to say on your work?
There have been so many Chefs who have influenced me and have inspired me. There are GMs who have been very good leaders, and there have been hoteliers, who have helped me to grow and learn. They are towering personalities in the hospitality industry. In this regard, I would like to mention about our own CMD, Dr. Jyotsna Suri, whose energy and leadership are exemplary.
I believe that I am fortunate to be a Chef. My profession involves so much of learning from various perspectives. I get to meet so many types of guests and the people I work with come from different walks of life. I like to focus on the basics and then build upon.
What is your philosophy of work? It is never say die.
Hammer Food & Beverage Business Review
What is your definition of success as a Chef, and how do you
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define success at a personal level? Success for me is the satisfaction of my guests, satisfying their varied demands and expectations, and achieving our business goals and success with my team. On personal level, my definition of success is happiness and peace with my family.
What are the things you are passionate about? They are food, music, cricket, books and my family, not necessarily in that order.
How do you rate yourself as a Chef? I think I would give myself 8/ 10.
As a professional what are the things you are very particular about? I am extremely particular about training and cleanliness. I am also obsessed with perfection.
What is your favourite cuisine? My favourite cuisine is the Bengali cuisine.
And what is your favourite spice? It is turmeric.
And what would you rate as your favourite dish? Chicken biryani is my favourite dish.
Whom would you consider as your favourite diner/s? I love to feed the kids the most.
What do you consider as your hot selling item? It is Flambe Gulab Jamun with Rose Petal Ice cream.
What is your favourite equipment and favourite gadget? Hot plate is my favourite equipment, and my favourite gadget is kitchen thermometer.
How would we see you ten years from now? You are likely to see me as an entrepreneur or a General Manager.
What are your future plans? I am looking forward to write a book on my culinary knowledge and experience.
What is the position of Chefs in India, these days? In the recent years, Chefs have gained a lot of recognition in India, thanks to the media and changing lifestyles. Today becoming a Chef has become a career of choice for many young aspirants. Nowadays, being a Chef in India provides so many avenues to showcase your talent and art.
What are the problems and challenges faced by Chefs, in India? Logistics and supply remain a challenge for a resort like us. The rising cost of food commodities is also a big concern.
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PROFILE Aashita Relan, the Owner and Managing Director of ANI Hospitality, is one of the youngest restaurateurs in Delhi. She is the daughter of Ajay and Mala Relan, the owners of the Relan Group of Industries. She did her graduation from The University of Warwick in England, in business management. After that she did her post-graduation in hotel management from Les Roches, Switzerland, where she graduated with a first class degree. At the age of 24, she successfully ventured into the hospitality arena with her first restaurant — Royal China — which is an authentic Chinese cuisine restaurant in Nehru Place, New Delhi. ”Our motto is to serve authentic Chinese food while keeping in mind the constantly evolving and emerging trends and tastes from around the world. With Royal China, we have tried to create a destination restaurant where we take great pride in ensuring that all the ingredients that we use are extremely fresh and authentic; they are imported from China,” stated Aashita. The restaurant has also got a number of awards in the recent past. While commenting on the galore of awards won by Royal China in the recent times, Aashita pointed out that “2013 has been a very lucky year for us. We have won over 10 awards this year. “ The restaurant has also expanded into outdoor catering, which has become very popular. Royal China’s Chefs visit outdoor sites/homes and cook everything from start to finish. The food provided through the outdoor catering tastes exactly as it does at the restaurant. Moreover, Aashita makes sure that she is present there at every outdoor party which Royal China takes up, in order to ensure that everything runs smoothly! Royal China has also recently started home delivery. Aashita aims to cover the whole of Delhi through her home delivery business. So far, the restaurant is delivering all over south and central Delhi. The excerpts of the interview follow:
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First and foremost, please spell out some key challenges of opening a new restaurant?
Opening a restaurant is really a tough challenge to achieve fruition. You have to consider several factors and sub-factors while opening a restaurant, starting from the location, which of course is an extremely crucial factor. A potential restaurateur needs to analyse what area has a market for the type of cuisine that she/he wants to serve. Is it safe, is there parking, etc. are other factors to be taken into account while choosing the location of the restaurant. What dishes to include in the menu, staff training, what type of atmosphere to create in the restaurant, etc. are some of the other important challenges to be weighed upon or factors to be considered before opening a restaurant.
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What would you like to say on the current restaurant business scenario in Delhi, Mumbai & Bangalore?
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Flavours of China
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Presenting the Authentic Q
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important in a restaurant. When people go out to eat they desire to have an atmosphere that peps up their mood. That is why we have created a very cosy, pleasant and warm ambience.
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She/he needs to be a people’s person. Moreover, the person shouldn’t think that she/he is always right. And of course, the person should have knowledge about the cuisine/s on which the restaurant is focusing upon.
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What are the top three traits or skills you look for in your Head — Food & Beverage Manager?
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Is it getting difficult to hire good trained manpower these days?
Yes, with the plethora of restaurants opening these days, there is a huge shortage of trained staff in the industry.
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To start an authentic fine dining restaurant has not been easy. It took us a lot of time to educate people to try our authentic menu.
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What kind of specific challenges did you face, at the initial stage? I mean the challenges which are germane to this restaurant and not necessarily to the Indian restaurant business in general
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We have to face a lot of pressure. The hours are long and run into late night. Moreover, we need to follow the policy that the customer is always right.
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I love the fact that we can contribute towards making our diners’ evening more special. I feel happy when someone smiles after a good meal at Royal China.
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I believe the quality of food is what has helped us build our brand. People have enjoyed the food and we have tried to be consistent in our food, prices and service. I don’t believe in changing the menu every six months. The dishes we had on the first day are still the dishes that one will find in our menu.
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Food trend in the country has changed a lot from what it was a decade ago. Diners are now exploring new international and regional cuisines in a bigger way.
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I think Mumbai has the best market for restaurant business right now, in the country, though Delhi is not far behind. Bangalore has a growing market for restaurant business too. Soon it is expected to catch up with Delhi and Mumbai.
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PROFILE
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Anything else you would like to say?
I would like to say that we invested a lot of time and tailored strategies to get people to develop a liking for our authentic Chinese cuisine offerings.
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HYGIENE
Smart Cleaning of
Vegetables By J S Dhingra
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egetables have the potential to present bountiful nutrition to humankind. Vegetables are necessary for our day-to-day needs of energy and are among the basic food items for most of us. With the increase in global population the need for vegetables keeps getting higher day after day, which induces steps to increase their produce. The use of pesticides, fungicides, growth hormones, etc. is being frequently adopted to prevent insect attack on vegetables, thereby facilitating to increase their yield. But unfortunately these pesticides and fungicides are used incessantly, often without discretion, which can cause severe side effects on humans, animals and the environment at large. Their indiscriminate usage in agriculture can cause deadly diseases such as cancer, hypertension, skin ailments, and many other fatal diseases. However, it is a knee-jerk reaction to advocate complete banning of pesticides from agriculture since they are necessary for increasing the productivity of agriculture, which is in turn extremely necessary to meet the ever increasing demand for vegetables. But their usage needs discretion and restraint.
The Challenge for Food Service Instead it is necessary to get to the crux of the problem. In our country, the use of pesticides is regulated by the
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government authorities and their dosages are also educated to the farmer. But unfortunately the farmers/growers are less sensitive towards the long-term effect of excess use of pesticides and in order to reap maximum possible profits from their crop they ignore the adverse health effects on the consumers of vegetables grown by them. Many of these vegetables with excess pesticide influence also reach the restaurants and other avenues of the food service industry. They are often laden with myriad surface contaminants, which not only include pesticides, but also handling residues, and other contaminations piled on the vegetables during their journey from farm to the food service business via mandi. They together pose a huge hygiene challenge for the food service business. In fact, for any industry engaged in food service business, be it a stand-alone eatery, a restaurant/restaurant chain, a hotel, a catering business, a food processing unit, etc. the knowledge about cleaning their vegetables of possible contaminants is necessary. Now the food service business needs to tackle this issue comprehensively, in order to facilitate presenting healthy food to its consumers. The guests/ consumers not only expect but also deserves good quality food, and good quality not only entail taste and innovativeness, but also the crucial factor of health. The restaurants/eating
Hammer Food & Beverage Business Review
outlets and other players in the food service business should use a quality washing agent to eliminate or at least markedly reduce the surface contaminants from vegetables and fruits. Reducing contaminant load will reduce chances of ill-health to the consumers of those vegetables and fruits. Now what is a quality washing agent? There are a few chemical options like potassium permanganate, oxidising chemicals such as chlorine, hypochlorite, chlorine dioxide, peracetic acid, hydrogen peroxide and ozone which have been routinely used to reduce microbial contamination on fruits and vegetables. The oxidising chemicals by definition oxidise organic molecules on fruits and vegetables as well as on contaminating microorganisms. Thus oxidising process kills microorganisms but it may create by-products which may be unsafe.
Chlorine and Ozonizers Let us examine the comparative advantages and disadvantages of chlorine and ozone on treating of vegetables. (i) Chlorine Compounds – Chlorine is effective on some bacteria. It is excellent and cheap for sterilising water but for sanitising vegetables chlorine is only partially effective and has issues like leaving after-taste in leafy vegetables. Moreover, it is volatile and
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HYGIENE needs continuous monitoring while in use. Also chlorine is ineffective in removing pesticide residues and some other contaminants. In fact it leaves its own odour and by-products. Chlorine on reaction with organic matter creates by-products called THMs (Tri Halo Methanes) which are associated with causing bladder cancer and hardening of arteries. (ii) Ozonizers – Ozone is a highly reactive gas. It rapidly reacts with all organic matter on the vegetable surface and either kills them or reacts and converts them into by-products. Ozone is not so safe in high concentrations for humans. To be effective in treating vegetables it must have a concentration of 200mg and an exposure of minimum 15 - 30 minutes. Whereas the MAC (Maximum Acceptable Concentration) for ozone is 0.30 ppm / 15 min. for humans. Exposure of ozone in high concentration above 15 minutes may damage human lung tissues. If ozone is used in over the prescribed concentration, it will damage the vegetables. At the same time if ozone is used in low concentration, it will not be
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effective in treating vegetables. Using the right concentration of ozone on vegetables is needed for effectively treating them and this requires expertise and high precision. Hence continuous monitoring by a qualified person is required for cleaning vegetables with ozone. Moreover, ozone reacts and creates by-products which can be highly hazardous to human health. Seldom data about the possible health hazard of these by-products are being supplied. Ideally, before using ozonizers commercially or even on an individual level, an elaborate study should be done on each chemical (which include pesticides) to be treated with ozone. Also the study of all by-products ozone creates and their possible health hazard to humans should be known before using ozonizers.
Without Side Effects There is also a natural option named Veg Fru Wash, which is patented for humansafe washing of vegetables and fruits. Veg Fru Wash can be construed as a new-age solution to the nagging
Hammer Food & Beverage Business Review
problem of surface contaminants including pesticide residue, bacteria, wax, dirt, grime, etc. on vegetables. It is non-volatile and can be stored all day in a container for batch wise washing of vegetables. Veg Fru Wash is based on sorbitol which is edible and is being used in many food products. Hence Veg Fru Wash is completely human-safe. Moreover, the usage of Veg Fru Wash doesn’t require any specific know-how. Any person with normal understanding can easily use Veg Fru Wash. About the Author: J S Dhingra is a seasoned expert on health and hygiene issues. He presently heads Jegson Innovative Industries and is responsible for new innovations which are safer for humans and environment.
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O P E R AT I O N S
Managing Food Costs in
Restaurants By Sharmila Chand
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ood costs play major role in any restaurant’s success or failure. For example, it is wonderful to have foie gras in the menu, but think twice (or more) if it has a chance of affecting profits. Without making a careful consideration of food costs, perhaps no restaurant (which include restaurants in hotels, of course) can have enduring success in the business. With more precise food cost management, one can eliminate or at least reduce excess inventory and decrease waste, thereby
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increasing margins and business growth.
Deciphering Food Cost We talked to F&B professionals across the hotel industry and found what are the steps they take or are taking, in order to keep food costs’ percentage at manageable levels. According to Sudeep Sharma, Food & Beverage Manager, Jaipur Marriott Hotel, “Food cost surely is one of the high costs in any F&B operations. COGS(Cost of Goods Sold) is a key
Hammer Food & Beverage Business Review
calculation whenever we fix pricing of dishes on the menu. All the elements like procuring costs, stocking costs and preparing costs are added to reach the final figure, which is called the food cost of any item.” The formula for calculating total food cost of a restaurant is simple — net food purchases divided by net food sales (here net means after the change in inventory).
Pragmatic Steps “Many measures put together help in
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maintaining the food costs in commercial F&B operations. For example, constantly checking the inventory to ensure minimum wastage, maintaining standardisation of recipes and portion size and consistently delivering on the standards, training our Chefs on a continual basis to manage food storage and process like FIFO (first in first out), and through pricing the menu items based on their production costs,” added Sharma. Many a time, Chefs need to be business savvy too in order to check the food costs. According to Neeraj Balani, Director, Food & Beverage, Radisson Blu Hotel New Delhi Paschim Vihar, “Controlled store requisition, keeping the perishable food items at the right temperature so that their shelf lives are not compromised, ensuring FIFO (First in First out) for all perishable items, controlling the portion size of the dish, establishing yields of the recipes and checking they are being achieved though production, minimising waste in the kitchen and tracking of waste, organising the storage room and keeping inventory to a minimum, and by ensuring stock rotation to avoid spoilage,” are some of
Controlled production is a must. Do not overproduce. This will serve many purposes; it will save costs, facilitate presenting fresh products to the guests and will entail less wastage/spoilage. - Sandeep Panwar, Executive Chef, The Metropolitan Hotel & Spa New Delhi
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Ensure FIFO (First in First out) for all perishable items. - Neeraj Balani, Director, Food & Beverage, Radisson Blu Hotel New Delhi Paschim Vihar
the effective ways to manage food costs in restaurants. Sandeep Panwar, Executive Chef, The Metropolitan Hotel & Spa New Delhi, emphasises that right ordering is essential for keeping the food costs in check. “The best way that we can control food costs is by ordering correctly.” He further outlined some more points to keep the food cost under control. He believes in following standard recipes, which includes standard portion and sizes for vegetables, meats, cheese, etc. “Besides, receiving needs to be checked for both quality and quantity, which entails competent person for taking care of receiving. Daily checks of fridges and cold room are also needed as this will facilitate in first in first out process, in maintaining rotation and decreasing waste,” Panwar explained. Balani also stressed on placing food orders as per requirement. “Training and briefing the restaurant employees to care about the food costs and placing food orders as per the requirement, especially for banquet functions are important steps to keep the food costs in restaurants in check,” pointed out Balani. Panwar also recommended controlled production. “Do not overproduce. This will serve many purposes; it will save costs, facilitate presenting fresh products to the guests and will entail less wastage/spoilage,”
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O P E R AT I O N S
Ordering perishable items in bulk but receiving in small batches is a wise thing to follow. Panwar pointed out. “Taking advantage of seasonal produce, ordering perishable items in bulk but receiving in small batches, monitoring waste tracking sheet, monthly evaluation of top 50 products in spend value, monitoring receiving and issues from stores on a daily basis, forecasting revenue and ordering accordingly,” are some of the relevant suggestions by Suresh Thampy, Executive Chef, Courtyard by Marriott Mumbai International Airport, for successful management of food costs in
Training, training and more training to the food handlers on processes and cost optimisation is needed to keep the food costs in check. A well aware individual will always make efforts to ensure food quality and costs are as per defined standards. - Sudeep Sharma, Food & Beverage Manager, Jaipur Marriott Hotel
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commercial eating out establishments. Sharma justifiably gives a lot of emphasis on training for managing food costs. “Training, training and more training to the food handlers on processes and cost optimisation is needed to keep the food costs in check. A well aware individual will always make efforts to ensure food quality and costs are as per defined standards,” he asserted. Sharma also opines that “Senior personnel like the Head Chefs should lead by example in driving quality while maintaining food costs.” However, he stresses on never compromising on quality. “Instead manage your resources wisely,” Sharma pointed out. Balani advised that dishes at restaurants should be priced keeping their cost in mind “while at the same time ensuring a high value for money for guests.” He also calls for planning the menus around seasonal availability. “Use more of seasonal fruits & vegetables in the menu as they are cheaply available and are likely to be in their best quality during the given season,” he advised. In fact, almost all industry professionals whom I conversed with stressed on ordering as per the requirement, maximising the use of each ingredient, and cooking while taking into account of the seasonal produce. The industry professionals also suggested restaurants to have more than one vendor to keep the food costs under control.
Hammer Food & Beverage Business Review
- Suresh Thampy, Executive Chef, Courtyard by Marriott Mumbai International Airport
Tapping the Technology Tools Using technology to check food costs is the happening trend in the food & beverage business. “We use Prolific as a store requisition software wherein the requisition detail of the day/week/ month can be viewed and controlled. Any item which is less in stock can be seen through and ordered,” informed Balani. “We are using WINHMS software to manage food costing. This software keeps the record of all items being imported in the hotel, helps in ordering food products, and in estimating product records. All these attributes help in managing food costing,” concurred Panwar. “We use menu engineering tool to find out the most selling, most popular and profitable items on the menu which helps to eliminate the nonprofitable and non-popular items whenever a new menu is launched,” said Thampy. However, employing sophisticated technology to keep the food costs in check is not the option for everybody. “At Marriott Jaipur we do not use any software to manage food costs. A Food and Beverage Controller is employed for carrying out these calculations, who is accountable for food cost control and ensuring minimum food wastage,” explained Sharma. I
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PRODUCT PREVIEW
Adding to the Drinking Pleasure Clean glassware is essential for beverage service. A glass free of soils and residue is needed to maintain aroma and flavour. Using clean, ‘beer-ready’ glassware is expected to increase a restaurateur’s profits and his customers’ satisfaction. The glass washers from Krome Dispense can make the beer-ready glasses a quick and easy process by effectively cleaning the glasses from inside as well as outside. These glass washers, which are designed in Germany, can clean all types of glasses. They require no electricity, and no involvement of plumber/s for their installation. Moreover, they entail low investment and facilitate a high degree of hygiene in glass cleaning operations. The Krome Dispense has two models of glass washers in its portfolio, which the industry can use. Pacific Merchants info@kromedispense.com
Eco-friendly and Fuel-efficient Solution Navshakti — the innovative bio-mass gasifier cook stove from Navitas Green Power (Fuel Management) Pvt. Ltd. can bring big savings to the fuel bill. This eco-friendly, low cost, easy to use cooking solution with flame intensity equivalent to LPG, and with heat output with flame control similar to that of LPG, is suitable for a comprehensive range of bulk cooking exercises. The equipment has a running cycle time ranging between 2 to 3 hours. Navitas Green Power (Fuel Management) Pvt. Ltd. sales.navitasgreen@sar-group.com
Designer Cutlery & Tableware Established in 1982, Neeti Udyog is a leading manufacturer and exporter of designer cutlery and tableware. With decades of experience in manufacturing and delivering quality products which are creatively designed, the company has carved out a niche for itself in the hospitality industry across the globe. The USP of Neeti Udyog is that it can deliver custom made products. With its motto ‘You Sketch We Craft’ the company can fabricate all items as per the specifications/dimensions of the customers and can also develop the existing designs in silver-plated wares, stainless steelwares, copper wares, and brass wares. The range of cutlery and tableware of Neeti Udyog are immensely popular across leading hotels, restaurants, and other food service outlets. Neeti Udyog anshul.neetiudyog@gmail.com
HACCP Manager Kit The HACCP Manager Kit provides the software, hardware and PC interface for the collecting, reporting, analysing and storing of product temperature records and checklist documentation. The Handheld is a data-collecting instrument designed to simplify the gathering of temperatures and the documentation of corrective actions as well as managing standard checklist processes. The database software allows for customising up to 300 menu items and the Handheld can store up to 3000 temperature readings. The handheld also holds up to 1500 checklist records (150 questions) with yes/no or numeric answers, and corresponding corrective actions. The HACCP Manager software is the most important and powerful component of your HACCP Manager system. Data can be quickly transferred between the Handheld and a PC. The database is fully customisable. Critical control points and corrective actions can be defined to ensure a detailed and solid HACCP workflow tailored to your facility. Mittal International sales@mitalin.com
The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of Hammer Publishers Pvt. Ltd.
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BUSINESS OPPORTUNITY
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INTERVIEW
4Ps and F&B Success By Sharmila Chand
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that cannot be handled or resolved. Each problem or setback has an answer, just that we as frontline managers have to come up with alternative approaches to solve the same kind of problem.
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Finally, how has been your experience at the present job?
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It is a privilege and a great opportunity for me to be associated with one of India’s legendry hospitality brands, and to be working along with some very experienced seniors like Gulshan Arora as my Senior VicePresident, who has been in the hospitality industry for over four decades, and also with the rest of the executive team, which is very helpful towards addressing any operational need or adversity I might face at my job. We all work as one unit, which is a great thing.
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Perhaps no F&B professional would ever say that her/his job is not challenging. We are expected to create a ‘wow’ factor for every guest, and it seems that each has her/ his own bar that she/he has set up mentally about what is good, what is excellent, and what is over the top for her or him. And we, as the deliverer of those expectations, are expected to know or decipher that and must strive to reach and surpass that bar everyday. To be able to adapt to changing tastes, trends, and clientele and to come up with a solution at the spur of the moment is what makes our jobs exciting as well as challenging. If you go to specifics then I would say that retaining a skilled talent pool is the biggest challenge which every F&B Manager faces right now. Not being able to deliver 100 percent satisfaction to my guests due to statutory regulations that I am bound by can also be frustrating. In this currently inflated economy, the taxation levied on the hospitality industry is also something that denies us to operate with open arms, which is one of the challenges of our profession in the present times. However, with all these years of experience I have come to realise that there is no issue or challenge in my profession
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Is your job challenging? Can you point out some of these challenges?
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a guest’s desire to 100 percent, because of some autocratic compliance or policy that I have to adhere to.
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It discourages me greatly when an event or activity does not garner the kind of returns we projected despite no fault from our end. The other thing I dislike in my job is sometimes my inability to fulfill
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What do you dislike the most?
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The ability to create memories for people, which they are likely to cherish for a lifetime, is what I like the most about my job. The fact that total strangers become friends after interacting with us and entrusting us with the responsibility of creating those picture perfect moments, is a role that I strive to excel on, on every day. In our business no day at office is the same day.
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What do you enjoy the most about your role of being the Executive Assistant F&B Manager?
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Savvy PR skills, strong financial acumen, and know-how of operations are the three traits which can get you places in this profession. The F&B Manager also needs to know how to explore the social media and other relevant online portals, in order to be able to attract and connect with the generation next. The human resource skills of acquiring, training, developing and retaining the right talent for the operations are also extremely important in today’s competitive market scenario.
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What are the top three traits or skills every Food & Beverage Manager must have to excel?
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Satish Fernandes, Executive Assistant F&B Manager, Sun-n-Sand, Mumbai, has been in the industry for over 15 years, with varied experiences in the hospitality sector. He has worked as a flight attendant too for a short span. In his words, “The one thing that I have learnt is to have faith in your team, gain the team members’ trust, and their respect will follow automatically. At the same time, give them freedom and also give them your undivided attention when they come to talk or share anything with you, be it in meetings or in a personal session.” He believes in the cardinal principle of 4 Ps. “The 4Ps that I focus on are people, profit, product, and process and I think they are the fundamental pillars of any operations,” he asserted, while adding, “I try and focus on these 4Ps as much as possible, which in return guarantees my success and the success of my F&B team.” The excerpts of the interview follow:
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Throw some light on the property
We have many loyal guests spanning across generations that not many hotels can boast off. It is a well-maintained property affording scenic sea views and the changing colours of the sea, and the owners extend full support and freedom for its operations. All the suite rooms were refurbished in the recent past, and the F&B outlets have been renovated during the last three years. Our tag line, ‘Small enough to listen, Big enough to serve’ is what we strive to practice as an ideology and inculcate among our team members.
Oct-Nov ’13