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    A comparative study of the Indian

    Restaurants in the

    United Kingdom & India

    And

    Their innovations

    A dissertation submitted to the University of Manchesterfor the degree of Master of Science in the Faculty of Humanities

    Year of SubmissionSeptember 2014

    ByCharlene Clarke

    Dissertation Supervisor: Professor Ian MilesManchester Business School

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    A comparative study of the Indian Restaurants in theUnited Kingdom & India

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    List of Contents

    List Figures 3

    Abstract 6

    Declaration 7

    Copyright statement 8

    Acknowledgement 9

    Chapter 1: Introduction 10

    1.1 An overview of the industry 10

    1.2 Background and present situation of the Curry Industry in United Kingdom 11

    1.3 Background of the Indian Restaurant Industry in India 12

    1.4 Chapter outline 14

    Chapter 2: Literature Review 17

    2.1 Service 17

    2.2 Innovations 17

    2.3 Service Innovation 20

    2.4 Hospitality industry 22

    Chapter 3: Research Methodology 28

    3.1 Introduction 29

    3.2 Research objectives 29

    3.3 Research design 30

    3.4 Data collection 30

    3.5 Research Questions 31

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    Chapter 4: Findings 32

    4.1. Background 32

    4.2. The present situation of the restaurant industry in India and 33

    The United Kingdom

    4.3.A Brief background about the restaurants who's owners were interviewed 34

    4.4. Detailed Findings from the interviews 36

    Chapter 5: Analysis 43

    5.1 Analysis the importance of traditional restaurants in everyday life 43

    5.2. What is the role of innovation a in traditional restaurants? 44

    5.3. Analysis of the different types of innovation used in traditional restaurants 44

    5.4. Analysis of the differences between traditional restaurants in 48

    India and United Kingdom

    5.5 Analysis of the amount of innovation used in the 57

    traditional restaurant industry

    5.6 Analyse the future for the traditional restaurant industry 58

    Chapter 6: Conclusion 59

    6.1. Answering the research question 59

    6.2. A conclusion of the differences between the traditional 61

    restaurants in India and the United Kingdom

    6.3. Limitations of the research 62

    6.4. Solutions for Limitations 63

    6.5. Future research 64

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    References 65

    Appendix 70

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    List of Figures

    Figure 1 24

    Figure 2 35

    Figure 3 36

    Figure 4 52

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    Abstract

    The service sector has gained immense popularity over the past few decades and the

    economy has shifted from a predominantly manufacturing based economy to a

    service economy. The service sector is classified into many industries out of which

    the HORECA (Hotels, Restaurant and Catering) group of industries contributes

    significantly to the global economy. In this research the traditional restaurant industry

    is analyzed and a comparison between the Indian restaurants in the United Kingdom

    and India is formulated. The restaurant industry in India and the United Kingdom are

    both growing at a fast pace and the competition within this industry is immense.These countries were chosen for this research not only to analyze the differences

    within this industry but also to find the reasons for the existing differences. This

    research also tries to look into the level of innovation within the traditional restaurant

    industry and the role of innovation in this sector. Innovations within this sector are

    classified according to Schumpeters categorization of the five types of innovations.

    This research is a qualitative research that relies on interviews as the only source ofprimary data and various secondary data forms like books, journals, case studies and

    articles are used as well. There have not been many papers, articles or literary work

    that have been published related to this topic which could make it an interesting

    research for the future use.

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    Declaration

    No portion of the work referred to in the dissertation has been submitted in support of

    an application for another degree or qualification of this or any other university or

    other institute of learning.

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    Copyright Statement

    (1)Copyright in text of this dissertation rests with the author. Copies (by any

    process) either in full, or of extracts, may be made only in accordance with

    instructions given by the author. Details may be obtained from your Program

    Administrator. This page must form part of any such copies made. Further copies

    (by any process) of copies made in accordance with such instructions may not be

    made without the permission (in writing) of the author.

    (2)

    The ownership of any intellectual property rights which may be described in

    this dissertation is vested in the University of Manchester, subject to any prior

    agreement to the contrary, and may not be made available for use by third

    parties without the written permission of the University, which will prescribe

    the terms and conditions of any such agreement.

    (3)

    Further information on the conditions under which disclosures and exploitation

    may take place is available from the Academic Dean of Manchester Business

    School.

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    Acknowledgement

    I would like to thank my supervisor Professor Ian Miles for all the help and support

    with this research. I would also like to thank the restaurant owners for their

    corporation and patience as without them this research would not possible. A big

    thank you to my family for being supportive and ensuring the interviews conducted

    in India went smoothly. Finally I would like to thank my IME class for their help and

    encouragement with this research.

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    Chapter 1:Introduction

    1.1. Overview of the restaurant Industry

    The service sector has gained global popularity only quite recently when compared to

    primary sectors like agriculture and secondary sectors like manufacturing. This

    industry is rapidly growing in almost every part of the world and this has caused a

    shift from a predominantly primary and secondary based economy to a service based

    economy (Giuseppe Berlingieri, 2013). The rise in income of people towards the post

    industrialization period caused this shift in demand to the service sector. (Growth of

    the service sector, 1995). As the spending power of customers increased, they startedto use services on a larger scale. Services have been largely dependent on human

    labor making them expensive and inefficient when compared to sectors like

    agricultural and poultry, however the increase in income is a positive sign for the

    service industry.

    The service sector has been divided into sub sectors and one popular classificationhas been formulated by NACE international (National Association of Corrosion

    Engineers). This classification consists of an extensive list of all the service sectors

    (from G to S in the NACE2 classification) including Financial services, Public

    service and Hotel Restaurant and HORECA to mention a few (Kate P. , 2008). The

    full form of HORECA stands for Hotel, Restaurant and Catering units which

    constitute a large portion of the service sector. They are also know to be part of the

    hospitality sector. Restaurants and Bars constitute 75% of this sector, where most of

    the restaurants and bars are owned by small entrepreneurs (Employing less than 10

    employees) (European Agency for Safety and Health, 2007). In this report the

    HORECA sector is going to be analysed in order to understand the restaurant

    industry in more detail.

    The restaurant industry accounts for a very large portion of the worlds economy. In

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    the year 2011 its total revenue amounted to $2.46 trillion

    (Mike King, 2013). In 2014, Forbes stated that the restaurant industry is the worlds

    biggest industry and the total revenue of the entire sector including fast food joints,

    cafes and restaurants is steadily increasing

    (Fobes, 2014). The restaurant industry is a very competitive industry mainly because

    of its enormous size. Globalization can be seen as one of the predominant reasons

    behind the rapid growth of the restaurant industry. Multi-cultural cuisines are

    becoming increasingly popular which is helping in the expansion of this industry.

    Restaurants could be classified into fine dining restaurants, casual dining restaurants

    and Quick Service Restaurants (Yahoo finance UK, 2014). In this report only the first

    two types of restaurants have been analyzed.

    1.2. Background and present situation of the Curry

    Industry in United Kingdom

    There are more Indian restaurants in London than in the Capital of India (New Delhi)(Indian food - UK food industry, 2014). Indian food has become a part and parcel of

    a normal Britishers life for more than half a century (Hemisphere Magazine, 2005).

    Specialty dishes like chicken tikka masala and poppadoms are available across

    various bars and non-Indian restaurants and are considered British speciality dishes

    (Teatime Magazine, 2014). Britishers have begun to like the spice in Indian food and

    this is one of the main reasons for the growth of this industry in United Kingdom.The other predominant reason for the growth of this industry is the large percentage

    of Indians settled down in United Kingdom. Indian Cuisine accounts for more than

    two thirds of the revenue of the restaurant industry in United Kingdom(Indian food -

    UK food industry, 2014).

    The restaurant industry in United Kingdomis worth over 5 billion a year (Teatime

    Magazine, 2014) and provides employment to more than 8% (70000 people) of the

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    population (Keynote, 2012). This industry is dominated by large chains like Mc.

    Donald's and KFC (Franchise help, 2014). Restaurant chains are most popular with

    Quick Service Food (QSF) or take aways. The restaurant industry was the only sector

    that showed growth during the period of recession around 2008 and 2009 in the

    United Kingdom, although they did not resort to large scale promotional activities.

    The Quick service restaurants or the fast food chains grew the most amongst all the

    restaurants sectors inspire of the minimal amounts of advertisement (Keynote, 2011).

    Some restaurants and chains have added healthy options to their menus to cater to a

    larger client base. This has proved to be a positive sign of growth within this

    industry. (Keynote, 2012).

    The Curry industry in Britain was at its peak a few years ago but is presently facing a

    downward slope on the economic curve. The revenue of the Indian restaurant

    industry in United Kingdom is starting to decrease. In the year 2005, a survey

    conducted showed 300 indian restaurants were shut down while less than 100 were

    opened (The economist, 2005). The Strict immigration laws are one of the main

    reasons why chefs from india are unable to work in restaurants in United Kingdom.

    Authenticity is one of the only ways a customer could be satisfied. A customer would

    want to eat food cooked by an indian chef in a curry restaurant with the hope that it

    would be comparatively more authentic as compared to the cooking done by chefs of

    other nationalities. (Ben Mirza, 2014).

    1.3. Background of the Indian Restaurant Industry in

    India

    The traditional Indian restaurant industry located in india is presently worth 7.25

    billion and is growing at a rate of 7% annually (smergers, 2013). It is expected to

    grow to Rs. 3,242 billion by the year 2017 which is 31.67 billion pounds

    (Europmonitor, 2014 ). The organised segment of the restaurant industry consists of

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    0.5 million restaurants. Unorganised restaurants are a great contributor to the

    economy as well but are unable to be numbered or estimated (Federation of Hotel &

    Restaurant associations of India, 2004). For instance the contribution to revenue

    made by small food carts cannot be estimated because of their unorganised structure.

    The Indian population is becoming experimental in its food preferences which is

    drawing a number of international food chains to establish their presence in this

    market. This industry is mainly driven by people between the age of 15 to 44 and the

    number of youth visiting international fast food chains like Mc Donalds and

    Dominos is high (Ken Research, 2013).

    An average India eats out less than twice a month. If they decide to eat outside more

    than twice a month it would prove to be a great increase in revenue of this industry as

    the population of india is very large. An average of only 2.4 percent of the average

    indians income is spent on eating out and on take aways. In comparison to countries

    like America and United Kingdomwhere 46% and 29% of their income is spent on

    the same purpose. Development of india towards the western culture would definitely

    increase income spent on eating out and intern benefit the restaurant industry (Ken

    Research, 2013).

    There is an immense amount of competition within the restaurant industry both in

    India as well as in United Kingdom. Constant improvements and modifications need

    to be done in order for a restaurant to work in such a competitive market (National

    Restaurant Association, 2014). The main focus of a restaurant is to maximisecustomer satisfaction (Keynote, 2011) and to improve customer satisfaction the

    restaurant industry constantly needs improvements related to menus, service or the

    organisational structure (Michael C. Ottenbacher et. al., 2009). Innovativeness, in my

    opinion, could be a great way to gain a competitive advantage over other restaurant in

    the market. According to Muller (1999), a restaurant with a good competitive edge is

    more likely to be successful than others. This competitive edge over other restaurants

    could be brought about by innovation (Indian Food - UK Food Industry, 2014).

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    Innovative techniques could be applied in a variety of sections within the restaurant;

    they could include menus (product innovation), service (process innovation), change

    in perception of customers (position innovation) or change in the organisation

    structure (paradigm innovation) (Humanitarian innovation fund, 2009).

    Innovativeness in a restaurant could be a business strategy to increase customer

    loyalty and the success of innovation

    This research is being conducted to find out the differences between the traditional

    restaurants in India and United Kingdom. A comparison of the various innovative

    techniques used in each country is also compared. This comparison between India

    and United Kingdom would help in giving a comprehensive understanding of the

    restaurant industry in general. Schumpeters classification of types of innovations is

    explainedwith regard to the Restaurant industry.The types of restaurant that have

    been compared in both countries are the fine dining and casual dining restaurants.

    Similar kinds of restaurants were found in each county in order to make a more

    accurate comparison.

    1.4. Chapter outline

    Chapter 1- This chapter of the report consists of the introduction which talks about the

    service sector in general along with its classification according the NACE

    international. The background of the Indian and United Kingdom Curry industryis

    explained with their present situations. The competitive nature of this industry is

    explained to gain a better understanding of the entire industry.

    Chapter 2 The process of reading, analyzing, evaluating, and summarizing

    scholarly materials about a specific topicis what literature review could be defined

    as (Richard Nordquist, 2014). The literature consists of a few relevant articles, case

    studies and reports which have been published relating to this research topic. The

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    literature review is divided into the broad categories of service, innovation, service

    innovations and hospitality. The hospitality section also explains about technological

    growth within restaurants and the difference between ethnic & fusion food.

    Chapter 3- The research method chapter explains the various methods which were

    used to collect the data for this dissertation. The objectives of this research are stated

    in the first part of this chapter. The research design of this assignment is then

    described which explains the qualitative nature of this study. The next part of this

    chapter is the Data Collection Methods used for this research and explains about the

    primary sources of data collection for a better understanding of the procedures used

    to collect data for the dissertation. The final part of this chapter is the Research

    questions, which will be answered in the chapter 6 which is the conclusion chapter of

    this research.

    Chapter 4 Findings- This chapter consists of the background of the traditional

    restaurant industry around the world. The second part of tho chapter gives a brief

    abut the present situation of India and United Kingdom is described to help

    understand the environment of the cities in which the interviewed restaurant are

    located. The third part of this chapter gives a basic idea about the restaurant and their

    owners an the last part of the chapter gives a more detailed explanation of the

    findings of the data. All the data, which is collected in this chapter, used primary data

    collection method (interviews). The same questions were asked to all the

    interviewees. The data collected during the interview is mentioned in the findings.

    Chapter 5 Analysis- The first part of this chapter analyses the importance of

    traditional restaurants in Indian and British peoples daily lives. The second

    subsection talks about the role of innovation in traditional restaurants. The various

    types of innovation as classified by Schumpeter are then explained related to the

    restaurant industry. This section of the chapter divides the data into five categories,

    product innovation, process innovation, Business model, Sources of supply &

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    Mergers and Divestments. The data is collected from the interviews are divided into

    one of the five categories for a better understanding of the types and extent of each

    innovations. The fourth part of this chapter is very important as this is the bases of

    this research. This part consists of the eight major differences with the traditional

    restaurants in India and United Kingdom. The last three sections analyse the amount

    of innovate in the traditional restaurant industry, threats to the industry and the future

    of the traditional restaurant industry.

    Chapter 6 Conclusion- The conclusion summarises the research by answering the

    research questions and by giving a brief list of all the final results of this research.

    The final conclusion consists of the major differences that were noticed in the

    traditional restaurant sector of India and the United Kingdom. The conclusion chapter

    also consists of the limitations of this research with likely solutions. The final part of

    this chapter talks about the possibility of this research helping future research and the

    assumed future trends of the traditional restaurant industry.

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    Chapter 2: Literature Review

    2.1. Services

    Before we can talk about service innovation it is necessary to understand the meaning

    of each individual term. Services were traditionally considered to be intangible in

    nature or in other words services did not take a physical shape or form (Business

    dictionary, 2014). Recently however, the definition has been modified to include

    some services that are tangible as well; for instance repair of a product could be

    tangible, as it is a physical manifestation of work (Ian miles, 2014). The economy is

    divided into three sectors; the primary, secondary and tertiary sectors. The primary

    sector deals with activities related to acquiring raw materials, secondary sector

    deals with manufacturing and assembling processand the tertiary sector deals with

    commercial services (BBC, 2014). The manufacturing sector makes goods while

    the tertiary sector provides services for these goods(Ian Miles, 2014).

    2.2. Innovations

    Innovation has been focal point for the success of many endeavours. For more than

    half a century economists like Schumpeter, Burns and Stalker have emphasised on

    the importance of innovation in various industries. Schumpeter stated that innovation

    was one of the primary ways of bringing about economic change (Koral Sledzik,

    2013). Although the term innovation has been widely used by a number of

    economists, innovation in products and processes within the restaurant industry is a

    comparatively new proposition (Michael C. Ottenbacher et. al., 2009).

    Ottenbacher and Gnoth (2005) classified sources of innovation into four categories;

    product or services, marketing innovations, process innovations and innovations

    within the organisation & its culture. This classification is very similar toclassification made by Schumpeter, which was published in his book titled The

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    Theory of Economic development (Thomas McCraw, 2010). The five types of

    innovation by Schmpeter are:

    Product innovation - is concerned with innovations regarding production of a new

    good

    Process innovation - describes new methods of production.

    Business model - includes innovations related to a new market.

    Source of supply - is related to both new supply chain management within a

    business and obtaining new sources of supplies.

    The Merger & divestment - is a change in the organizational functioning of a

    business.

    The most popular types of innovation used today are the product, process and

    Business model innovation (Thomas McCraw, 2010). The innovation related to the

    improvements or additions in the menu fall under the category of product innovation

    and this type of innovation has an essential role to play in the restaurant industry

    (Ottenbacher and Gnoth, 2014).

    Stages of innovation

    Innovation can also be classified according to its stages of development and

    diffusion. They are 1.) Early adaptors 2.) Early majority 3.) Late majority and 4.)

    Laggards (Ryan et. al., 1943). Although early adaptors are responsible for idea

    generation and its implementation, they face resistance to widespread market

    acceptance due to the lack of a proven track record. Once the innovation is

    successfully past the initial stage there is a boost in the number of adaptorsincorporating the innovation into business practices (Karol ledzik, 2013).

    Types of innovation

    Innovation can further be categorized as incremental or radical innovation.

    Incremental innovations are small improvements to an existing product or product

    line that usually maintains or improves its competitive position over time(BusinessDictionary, 2014). Incremental innovations should be focused on in order to

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    gradually improve the systems within a restaurant subsequently improving overall

    growth (Russell Cox et. al. , 2014). A radical innovation can be defined as a new

    product, service, or technology that completely replaces an existing one (Cengage

    learning, 2014).

    Radical innovations like technological innovation take a considerable amount of time

    to be implemented, as they are usually extreme in nature. They usually face greater

    amount of resistance from customers as compared to an incremental innovation. The

    reason for this is that radical innovations require a great amount of change in the

    customers existing lifestyle. Incremental innovations on the other hand are

    comparatively more favored by customers as they do not need to completely change

    their lifestyle and could slowly incorporate an incremental change to their everyday

    lives. (S Ram et. al. , 1989) (Business dictionary, 2014) (Ricky W. Griffin, 2014)

    There exists a general awareness about the role of innovation in the development and

    growth process of various economies (S. Ram et. al. , 1989). In spite of the awareness

    about its importance, there might be some opposition against innovation. The reasons

    for this could be attributed to: 1.) Resistance to change, i.e. public tendency is to

    avoid change in their daily lives, which is a requirement for new innovation. 2.)

    Change in belief systems- customers might show resistance to change because of

    challenge to their belief structure.

    In order for an innovation to be accepted by the public, it should have a definite

    benefit to its customers. For instance price reduction - any innovation entering the

    market needs to be priced at a level making it lucrative enough for customers to shift

    their purchasing power. There could also be other types of value provided by

    innovation like time and place value, which could draw customers towards a new

    innovation. For instance the ATM (Automatic teller machine) provides both time and

    value to their customers ( S Ram et. al. , 1989 ).

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    An example of an innovation in the food manufacture, which is relevant, in this case

    is Tofu. This is a high protein soy substitute, which is mostly used, in Chinese and

    Japanese cuisine. There has been resistance from customers in the use of this product

    although it has high nutritional values and health benefits. Manufacturers of tofu have

    started to package this product in convenient ways like ready to eat meals, in order

    for customers to purchase the product. Another such example is yogurt. Yogurt is

    made out of milk and also has great health benefits. Initially yogurt was endemic in

    nature and was consumed only within the Middle Eastern regions. Initially when

    American customers consumed yogurt, they were unable to even pronounce the term

    and used to call it Colombo. Today yogurt is used in a variety of dishes and is

    available globally in almost every convenience store (Joel Denker, 2003).

    Innovation is only as good as the acceptance it gains from its prospective customers.

    Thus, it is of paramount importance to incorporate market perception of innovation

    before incorporating it into a business. 6% of the people in a study said they visit a

    restaurant because of their variety and innovation (Namkung & Jang, 2007). This

    makes innovation a necessity to survive in competitive markets.

    2.3. Service innovation

    The term service innovation is a considerably new term, which was first spoken of in

    the year 1993 by Ian Miles a Professor at the university of Manchester. There was

    very little known about the term service innovation before 1993 but today a few moreresearchers are able to write papers and articles based on this sector of the economy.

    Most of the innovations were leaning towards the manufacturing sector and usually

    did not focus on new innovations relating to services (Jan Fagerberg Et. Al. , 2006).

    The number of innovations keeping services in mind was almost negligent in

    comparison to innovations related to manufacturing which is a predominant reason

    why fewer papers are written about service innovation as a subject (Jan Fagerberg et.

    al. , 2006).

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    Initially Innovations were considered to be those breakthrough ideas, which were

    radical in nature and made a large-scale impact on the economy, but this is not

    necessarily true when used in the present context of the term innovation. Innovations

    in the present day could be described as a minor incremental change as well without

    there being a revolutionary change necessary to be considered an innovation ( Marja

    Toivonen, et. al. , 2009)

    Service Innovation as stated by Ian Miles (Ian Miles, 1993) is mostly incremental in

    nature which means there have not been many redial innovations, which have

    occurred in this field. Most of the innovations in services experience a steady growth

    rate especially when compared to technological innovations or innovation

    breakthroughs in manufacturing sectors. There innovation within the service sector

    can be mostly classified as product or process innovation.

    There is no doubting the fact that the service industry is a growing industry and it has

    been this way for the last few decades (Growth of the Service Sector, 1995). In spite

    of its growth many economists and statisticians ignored this sector partially and

    sometimes completely. A large majority of economists who talk about innovations

    are referring to innovation related to the manufacturing industry. Most of the

    innovations in the past were product oriented which makes it mostly manufacturing

    based causing them to ignore the entire service aspect of the economy (Ian Miles et.

    al. , 2000).

    The service sector is a growing sector but its growth has been mostly in the past two

    to three decades. Since the popularity of the service sector is more recent when

    compared to the manufacturing sector, the topic of innovation in the service sector is

    also a comparatively new subject. Some of the aspects that should be considered

    while understanding service innovation is innovation in services is not the same as

    innovation in manufacturing.

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    A number of survey use services as sub section within the manufacturing industry,

    which could give deceptive values for both the sectors. Innovation in the service

    sector is widely neglected or not enough importance is given to it (Ian Miles et. al. ,

    2000).

    2.4.Hospitality

    The hospitality industry consists of a number of industries out of which restaurant,

    hotels, hostels and travel agencies constitute a significant amount. It is a very

    competitive industry and establishing a new firm within this industry could be very

    challenging. The hospitality industry depends on the overall satisfaction of the

    customers, which is a major factor, which will make them repeat giving the firm

    further business, or not. The last two or three decades have proven to be effective in

    growth and development of the restaurant industry as many new innovative

    techniques have been used both in the product as well as the service line. They

    include introduction of restaurant chains, franchises, hierarchal organizational

    structure, drivethrough, 30 minute deliver and healthy convenient fast food optionslike subway to name a few (Christopher Muller., 2010).

    Customers consider a number of factors before choosing a restaurant. The food

    available within the restaurant is not the only factor, which influences their choice. A

    customer would return to a restaurant if they were satisfied by the service and food.

    Customer satisfaction refers to the extent to which a customer is satisfied by products

    and services provided by a business (Business case studies, 2014). Customer

    satisfaction is a very important aspect within the restaurant industry and this could be

    achieved if innovative procedures are used in the functions of the restaurant.

    Due to a multitude of restaurants the customer is spoilt for choice and their choice

    depends upon factors like customer experience, overall satisfaction and savings.

    Taking the example of a restaurant, customers visit when they have spar time andresources. If they like the food and service available they will visit again, if not they

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    will not waste their time and resources on the same place. The product within a

    restaurant should be of good quality, which can be done by hiring a good chef. The

    service within a restaurant is also very important as sometimes the food might be

    average but the service makes people visit again.

    Ensuring a good team of staff is employed who are friendly and polite could ensure a

    customer would visit again. People are likely to make a choice of restaurant not only

    based on the food served but based on a number of other factors as well. They

    include service, ambience and timeless of delivering the product (Susskind & Chan,

    2000). A feasibility study should be conducted before opening out a restaurant to

    ensure details like location, proximity of customers, competition and other similaraspects related to the restaurant are not be left out (James Caan, 2014). The

    cleanliness of a restaurant (Sulek & Hensley, 2004), decor, interiors and ambiance

    (Parsa et al. , 2005) also play an important in influencing a customers in choice of

    restaurant. Studies conducted by Smith et. al, (1999) have shown that there is a direct

    relationship between good customer relations and customers loyalty. Activities like

    coupon promotions are an important way of increasing publicity of a restaurant aswell (Taylor and Long-Tolbert, 2002). The aim for a restaurant should be to satisfy

    new customers and hence enable recommendations to their family and friends

    (Namkung & Jang, 2007).

    Technological growth within the hospitality industry

    The conventional meaning of the term technology with regard to the hospitality

    industry is not the same as its dictionary meaning. Technology in this sector refers to

    the use of organizational systems and/or to the way work is done (Spang, 2000).

    The technological growth within this industry has not been as high as compared to

    other fields like computers, electronics and telecommunication.

    The importance of technology in the hospitality sector over the past few years has

    increased tremendously and has also seen a reduction in significance over the last few

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    years. Over the past 50 years labor has had a predominant role to play in the

    hospitality industry. Christopher Muller (2010) emphasizes on the existence of labor

    even in the future within this industry although the technology to support labor will

    become more advanced (Muller et. al. 2010).

    Rob Law et. al. , (2012), conducted a research which shows that with the passage of

    time the number of published articles and authors have seen both a growth and

    reduction in numbers. This research resonates with the surge experienced in the

    implementation of information technology in the restaurant sector initially, which

    also saw a subsequent reduction with time. According to Rob Law et. al. (2012) the

    incorporation of information technology is only a recent development in the hotelindustry. Given below in figure 1 is a graphic representation of the various sub

    sectors of information technology related to the restaurant industry

    Figure 1, % Presence of I.T in Restaurant Industry

    From figure 1, the most importance has been awarded to restaurant management

    systems in information technology and the least has been awarded to point of sales

    systems. This data represents a lop-sided emphasis on only certain sections of

    Information technology in relation to the restaurant industry.

    0

    5

    10

    15

    20

    25

    1960-64 1970-74 1980-84 1990-94 2000-04 2010-11

    %P

    resence

    Years

    I.T Presence in Restaurant Industry

    Restaurant

    Managment

    Systems

    Point of Sale

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    The organizational structure within a restaurant or hotel could be made in a similar

    manner to that of any other organized industry. There are certain restaurants which

    are working on a global level and have a hierarchal organizational structure similar to

    a global company; for instance Kentucky Fried Chicken (KFC) and the Marriott

    group of hotels have a clear hierarchal organizational structure (Christopher Muller,

    2010).

    Mc Donalds and the Hilton group were two of the first organizations within the

    hospitality sector to use computers within their operations. Mc. Donalds gave away

    computers as a form of promotion for Atari Video Computer Consoles. The Hilton

    group of hotels experimented with the use of computers as a part of their onlinereservation initiative in 1970, but it was not very successful, as the use of computers

    was not common.

    In the 21st century a great majority of work done within the hospitality industry

    utilizes a computer, be it for accounting of cash or credit sales, inventory, ordering

    from a producer or publicity. Technology in the present day could be also be utilized

    to send E-mails from the restaurant in order to remind customers about various offers,

    promotions or events. The mobile phone has a similar effect on the customer. Text

    messages with promotions, birthday wishes and events could be used to keep in

    contact with their customer (Thomson Reuters, 2013).

    The Internet is also becoming an important part of the technology related to the

    hospitality sectors. Emails are frequently sent to customers to keep them informed

    and this has proved to be an easy and effective two-way form of communication

    between customers and restaurants. It is also predicted that in the next five years all

    industries within the hospitality sector will be providing free or low priced Wi-Fi

    (Thomson Reuters, 2013). The reviews of a restaurant on the Internet have a big role

    in play in the promotion of a restaurant. Sites like Trip advisor and Zomato influence

    customer choice especially for previously un-known restaurants. A better feedback

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    results in a greater chance of repeat clientele for a restaurant.

    With respect to the service sector particularly the restaurant industry, innovation in

    services could take place because of the following five reasons:

    Unintentionally- an innovation could arise without aiming or looking for change

    Intentionally for a particular project

    Innovations tailored according to customers

    Innovations which are research oriented

    Innovation using a pilot customer for the study

    Ethnic and Fusion Food within the hospitality industry

    Over the past few decades, the importance of regional food has decreased. People no

    longer rely on domestic production of food for sustenance and survival.

    Industrialization and globalization has lead to the increase in the foreign goods

    hring, 2014). Foreign cuisines are not only

    becoming popular within dedicated restaurants but also local restaurant where owners

    are beginning to incorporate popular food cultures into their working styles. The term

    fusion cuisine refers to ethnic foods from other countries in combination with local

    tastes. Fusion food has gained popularity because it is usually complaint with local

    pallets thus finding widespread acceptance (Ching-Shu Su, 2009).

    Ethnic cuisine is usually characterized as being foreign in nature in regard to a

    specific area of sale. Ethnic cuisine requires specially trained chefs that might not be

    readily available. When ethnic food is accepted, so is their foreign culture (Ching-

    Shu Su, 2009). Tourism has increased in the 20th century and the number of people

    demanding for ethnic cuisine has increased. This is one of the predominant reasons

    why the ethnic cuisine industry has grown within a comparatively short span of time(Don Kalb et. al. , 2000). Other factors contributing to the growth of ethnic foods are,

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    client perception of it being food with a variety of tastes, while others feel it is

    different from the food available at home (Roseman, 2006). People have become

    more experimental with their food and enjoy experiencing new atmospheres within a

    restaurant. Ethnic restaurants are the most popular type of theme restaurants (Ching-

    Shu Su, 2009).

    Various dishes like chicken tikka, humus and kidney pie are not only found in ethnic

    restaurants but also in take aways, cafes and multi-cuisine restaurants. Another such

    example is the Japanese specialty sushi. Sushi was not very popular on a global scale

    around 3 decades ago. Today sushi has become extremely popular and it is no longer

    a hunt to find a Japanese Restaurant serving sushi. Departmental stores have also

    started selling sushi snack packs, which have been altered to favour popular tastes

    and preferences trends. Barbecue chicken sushi, Carrot roll sushi, Cajun Chicken or

    even California rolls are modified flavours added to sushi to suit the customers taste

    and preferences. (Ching-Shu Su, 2009).

    Authentic Ethnic restaurants are usually small in size and have not/do not want to

    increase their scale by starting large chains of the restaurants (Joel Denker, 2003).

    Most of the owners or chefs of these ethnic restaurants are not originally from the

    country of the food served. For instance either Pakistani or Afghani owners run some

    Indian restaurants whereas Iranians manage Greek and Turkish restaurants. Taking

    United Kingdomas an example, a number of Indian restaurants incorporate Pakistani

    and Bangladeshi food because they are owned and managed by either Pakistani or

    Bangladeshi owners respectively. (Don Kalb et. al. , 2000)

    Globalization definitely has a positive effect in bringing various regional foods to

    different parts of the world, but its downside is that it could lead to the increase of

    fusion foods (The Economist, 2005). Fusion food is positive to a certain extent but

    could be harmful because it could prove to be a threat to authentic restaurants. This

    shows that this industry could be facing some issues and hence are having to close

    down (Indian Food - UK Food Industry, 2014).

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    Chapter 3: Research methodology

    3.1. Introduction

    The following chapter is in relation to the research methodology utilized for this

    report, which helps impart structure and a format based on the collection of

    information from both primary as well as secondary sources. The methodology is

    meant to keep a researcher on the right track in order for them to gain relevant

    information, which could be analyzed to obtain a final result.

    In this chapter the various techniques and procedures used to collect data are

    described. The chapter begins with the basic objectives of this research followed by

    the research design, data collection and research questions. The limitations of this

    research are described in detail as well to help understand what aspects need to be

    further investigated and what sources of information have been utilized to obtain this

    information.

    This study follows the methodology of a pilot study research. A pilot study refers to a

    study that is conducted on small-scale as compared other full-fledged researches.

    Pilot studies are usually used when there is limited time and funds available to

    conduct a research. (Ashley Crossman, 2014)

    The aim of this research is to collect information using primary and secondary

    sources of data collection to aid the formulation of a final conclusion, which

    compares the traditional Indian restaurants in in UK and India. The data collection

    techniques consists of the primary and secondary data collection as well as qualitative

    and quantitative research methods used in order to obtain information for further

    analysis. The last section of this chapter includes the 5 different research questions,

    which are addressed by the end of the data analysis and findings.

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    3.2. Objectives of the research

    The objective of this research is to

    1.

    Understand the traditional restaurant industries within United Kingdom and India.

    2. Draw a comparison between their product and process innovations, organizational

    structure, as well as other general criterias differentiating the industry in both

    countries.

    3. Try to identify the predominant features leading to success of the restaurant

    industry in each country.

    3.3. Research design

    There research conducted for this dissertation is a descriptive research. The problem

    explored by the research is known and the report attempts to compose a

    comprehensive solution addressing the problem. The direction of the research is clear

    hence the research is aimed at drawing a conclusion in a particular manner (solution

    to the problem).

    This dissertation uses a qualitative research approach. Qualitative research is

    characterized by its aims, which relate to understanding some aspect of social life,

    and its methods which (in general) generate words, rather than numbers, as data for

    analysis

    (Michael Quinn Patton, 2002). A qualitative research is aimed at a target audience

    and it focuses on in-depth studies of specific group. Qualitative research includes

    interviews, in context observations as well as group/individual discussions (QRCA,

    2014). Interviews could be conducted face to face, on the telephone or by using

    Internet applications like Skype, Viber, etc. (Market donut, 2014). For this research

    two interviews were conducted face to face and two utilized telephonic mediums.

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    Qualitative research allows for a certain margin to incorporate personal suggestions,

    by the researcher, based on research results, which ensures the incorporation of

    researcher opinion along with pure data. Interviewing is a good way to utilize the

    qualitative approach of research as it enables the consolidation of an interviewees

    perception along with the inclusion of co-related reasons.

    Market donut, (2014) Qualitative research does not give too many statistical values

    and figures as compared to quantitative research. Qualitative research could be

    utilized for a topic, where the research question has a definite parameters but only

    small amounts of knowledge related to the given scenario/situation, is known

    (Michael Quinn Patton et. al. , 2002).

    This research is a pilot study which means it is conducted on a limited scale

    because of the limited amount of resources like time and money that are available to

    the researcher. A pilot study takes into consideration only a few samples of research

    but it is usually in-depth and great details could be obtained from this study as it

    focuses on quality and not quantity (Ashley Crossman, 2014).

    3.4. Data collection

    The data for this research is collected using both primary as well as secondary data

    sources. Primary data encompasses data, which is original in nature or obtained by

    the researcher on a first hand basis. It is defined as Data observed or collecteddirectly from first-handexperience(business dictionary, 2014). Thus it is concluded

    that the interviews conducted for this research can be categorized as primary data

    sources.

    The aforementioned interviews were in a semi-structured form and were conducted

    face-to-face as well as telephonically. For the purposes of this report four restaurant

    owners were interviewed. They were the owners of the restaurant called Jaipur Palace

    http://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/data.htmlhttp://www.businessdictionary.com/definition/experience.htmlhttp://www.businessdictionary.com/definition/experience.htmlhttp://www.businessdictionary.com/definition/experience.htmlhttp://www.businessdictionary.com/definition/data.html
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    (Manchester, United Kingdom), Desmonds (Bangalore, India), Sanskruti

    (Manchester, United kingdom) and the Directing manager of Tandoor restaurant

    (Bangalore, India)

    Thus given the classification of this report as being a pilot study only four interviews

    could be conducted. Although the comparison of the entire restaurant industry cannot

    be concluded on the basis of four interviews a comprehensive and detailed

    comparison can definitely constructed to understand the differences with the

    traditional restaurant in each country and the types of innovations utilized. Secondary

    data sources comprise of published data and the data previously compiled in other

    articles, research papers and reports.(Business dictionary, 2014).

    The secondary data utilized for the purposes of this report consisted of a number of

    case studies, journals, books and websites. All the articles and reports that were

    analyzed mention aspects that were directly co-related to this research for instance

    the product innovations made by chefs, importance of social media for the restaurant

    industry and statistical representation of data related to traditional restaurant industry

    in India and United Kingdom.

    3.5. Research Questions

    Why is it important to be innovative in the restaurant industry?

    Identify the best and most innovative business strategies utilized by the UnitedKingdom and India with respect to the Indian restaurant industry.

    What is the inspiration for restaurants employing new ideas to innovate? Whatrole do competitors play in influencing restaurants to innovate?

    Can the best strategy from both the countries be implemented to create a newsuccessful model? If yes, explain how?

    What is the direct relationship between the implementation of a new innovationand the success of a restaurant?

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    Chapter 4:

    Findings and discussions

    4.1.Background

    The aim of this research is to try and compare the Indian restaurants in the United

    Kingdom and India. The Restaurants that were chosen were specialty Indian

    restaurants, which catered to a variety of customers. For the purpose of this research

    the restaurant industry was chosen because of its significant influence on the global

    economy.

    The restaurant industry has been growing at an increasingly rapid rate in India as well

    as the United Kingdom (Giuseppe Berlingieri, 2013) thus making these two countries

    ideal as the basis of a comprehensive comparative analysis. The owners of four

    restaurants were interviewed out of which two of them were from Manchester,

    United Kingdom and the other two were from Bangalore, India. A wide variety of

    responses obtained from the owners, helped in the creation of an extensive

    comparative study between all four restaurants and further promoted a better

    understanding of the degree of innovation within the restaurant industry.

    The four restaurant owners/directors that were interviewed were Jaipur Palace

    (Manchester, United Kingdom), Dsmds (Bangalore, India), Sanskruti

    (Manchester, United Kingdom) and Tandoor (Bangalore, India). Although there were

    a considerable number of questions that generated similar responses from the owners,

    there were also responses that had features, which differed, hence allowing for a

    comparative analysis to be drawn between both the countries. The innovations that

    were discussed by the owners were largely incremental in nature. There were no

    radical innovations or breakthrough innovations. The innovations included quality

    improvement or maintenance, improvements in hospitality, better response to

    customer feedback and similar incremental innovations necessary to ensure the

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    successful operation of a restaurant in a competitive market.

    4.2. The present situation of the restaurant industry in

    India and the United Kingdom

    This section talks about the general findings that were observed and compiled using

    the secondary data sources. A part of the data available for both countries is given

    below-

    a)India- The population of the entire nation is very large in comparison to the

    United Kingdom. Bangalore is the 19th most populated city in the world and

    fifth most populated metropolitan city in India. (major city statistics, 2007).

    The magnitude of people staying in this city contributes to the growth of the

    restaurant industry and there is a consistent demand for new restaurants to be

    established. Bangalore has the most number of pubs in Asia and the list of

    restaurants and eateries are not very short either (Rediff Q&A,2014).

    Bangalore has restaurants specializing in a variety of cuisines from which

    Italian, Chinese, Mexican, Arabic and Indian cuisines enjoy the greatest

    popularity. Thus it can be concluded that due to a large demand and easy

    availability of restaurants an intensely competitive market exists in Bangalore.

    These market conditions make it necessary for restaurants in Bangalore to

    constantly compete in order to survive.

    b)Manchester - this is the second largest city in UK but it is the 58th most

    densely populated city in the world (City major statistics, 2007).

    There are a large number of restaurants in Manchester and most of these

    restaurant serve alcohol. Manchester is popular for its Italian, Greek, Chinese

    and Indian curry houses apart from the traditional british cuisine which is

    extensively available around the city (Manchester restaurants, 2014). There are

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    restaurants in Manchester that follow the kawayoperational methodology

    and thus mostly serve fast food like pizza, fried chicken and fish & chips.

    Some of these kwrestaurants serve middle eastern food like shawarma

    and donner kebabs as well thus incorporating varied cuisine to increase their

    customer base. These k w restaurants are usually opened for longer

    hours in comparison to traditional restaurants, which ensures the availability of

    restaurant food in the city of Manchester irrespective of time.

    4.3. A Brief background about the restaurants who's

    owners were interviewed.

    The following section describes the characteristics of the restaurants, initially

    observed by the author of this report, while conducting the interviews. The

    characteristics ascertained are documented and explained below-

    Jaipur Palace- This is a restaurant, which is owned, and operated under the guidance

    of a man who has been in the hospitality sector for the previous 20 years erstwhilebeing a doctor by qualification. This Restaurant has been open for only 4 months

    but has managed to create a clientele of 150 patrons per week on average. This

    Restaurant is located in the Fallowfield region of Manchester and caters to a large

    British population, which is vegetarian or vegan.

    Desmond's- This Restaurant is run by a man called Desmond who has been a chef

    for the last 40 years and who initially established this restaurant in Bangalore 25

    years ago. According to Mr. Desmond his restaurant enjoys a central location in the

    city of Bangalore serving approximately 150 customers on the weekends and 100

    on the weekdays. A demographic analysis carried out by Mr. Desmond suggested

    that the day time clientele is primarily corporate erstwhile in the night large family

    groups and tables with customers aged between 25-35 comprise the majority of

    business generated.

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    Sanskruti- This is a sole proprietorship Indian restaurant located in the Fallowfield

    region of Manchester and has been operational since 1 year. This restaurant enjoys

    the loyalty of primarily Indian customers in Manchester focusing and specializing

    in vegetarian and vegan food. The catering size of this restaurant is calculated to be

    300 people per week.

    Tandoor is a well-established Mughalai themed Indian restaurant, which is located

    in Bangalore city center. It was established in the year 1981 and would complete its

    33rd year in this industry in 2014. It is a Private Limited firm with two directors.

    For the purposes of this study one of the directors of this restaurant was

    telephonically interviewed. Tandoor has the capacity to seat 190 customers at asingle time and caters to 1925 people in a week on average. The clientele of

    Tandoor is varied with the majority (60%) being of foreign origin and the remainder

    being distributed between family and corporate clientele.

    Figure 2, Comparison Between The Indian Restaurants in India

    It can clearly be seen from the figure given above that of the Indian restaurants

    interviewed in India tandoor enjoys more than double the clientele patronage per

    week when held in comparison to Dsmds.This could be attributed to that fact

    0 500 1000 1500 2000 2500

    Desmond's

    Tandoor

    Customers

    Comparison Between The IndianRestaurants in India

    No. ofCustomers/Week

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    that Tandoor allows for 10-15% discount for loyal customers when compared to

    only 6% given by Dsmds

    Figure 3, Comparison Between The Indian Restaurants in The United Kingdom

    It can be observed form the figure given above that of the Indian restaurants

    interviewed in Manchester Sanskruti enjoys a greater patronage/week despite having

    fewer seats available when compared with Jaipur Palace. This enables a better

    understanding of the existing comparison between both the aforementioned

    restaurants given that Sanskruti has only 10% student discount while Jaipur Palace

    has a 15% discount in place for students.

    4.4. Detailed Findings from the interviews

    In this section of the dissertation, the interviews conducted with each restaurant willbe discussed in order to form a better overall understanding about the restaurant

    industry. Two of the restaurants were from Manchester and the other two were from

    Bangalore. First the Restaurants in Manchester will be discussed followed by those in

    Bangalore.

    Jaipur Palace

    This restaurant was established 4 months ago.

    0 50 100 150 200 250 300 350

    JaipurPalace

    Sanskruti

    Customers

    Comparison Between The Indian

    Restaurants in The United kingdom

    No. ofCustomers/Week

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    The restaurant is run on a sole proprietorship basis and the owner has previous

    experience in the hospitality industry.

    Jaipur Palace is located on Wilmslow Road and has no chains or branches of this

    restaurant and they also serve alcohol.

    The food is traditionally cooked keeping the tastes of the Indian states of Gujarat,

    Rajasthan and Punjab in mind.

    They get ideas from their chef as he is a pure vegetarian, which helps develop new

    products on the menu.

    The restaurant is an 80 seater and approximately caters to 150 customers in a week.

    The number of customers visiting on the weekends is higher than the weekdays.

    They employ 8 full time and part time employees including their manager, chef and

    bartender.

    They clientele mainly consists of customers from the British community who might

    be vegetarian or vegan.

    Each customer spends around 15 pounds on food and 2-3 on alcohol although

    not all consumers consume alcohol.

    Card payment is more popular as compared to cash (80%).

    A student discount of 15% is available for students but there is no loyalty discounts

    available

    A Thali (plated meal with a variety of dishes) is available on weekdays, which is an

    attraction because of its wide variety and low price.

    The owner says that Jaipur Palace has a s m and they play Indian

    music in the background to suit the environment.

    This a lot of competition in this field but it does not effect us as we are one of

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    the few pure vegetarian and vegan restaurants in hssays the owner of the

    restaurant.

    Customer feedback is obtained by issuing feedback forms at the end of the meal and

    their feedback is used as a source of improvement or idea generation.

    An innovation, which the owner feels, that has helped increase revenue is

    developing an extensive menu for vegetarians and vegans.

    The most striking aspect about Jaipur palace according to the owner, Dr. Jaju, that

    enables repeat customer service is value for money and hospitality.

    Desmonds

    Dsmds was established 25 years ago and is run by Mr. Desmond. He had

    worked as a chef in three reputed restaurants in Bangalore before opening up his

    one.

    The restaurant has a partnership agreement between the owner, his wife and twosons.

    Dsmdsis located on Lavelle Road in Bangalore, which is a prime location for

    restaurants and is highly commercialized area.

    They have both take away and home delivery services within a 3 km radius.

    Their food is authentic but the chef and owner are experimental as well to satisfy a

    certain niche of customers.

    They serve alcohol and have employed a full time bartender as well.

    Dsmdshas the capacity to seat 70 customers and employs a total of 32 people.

    Most of the staff have been working with Dsmds for many years and are a

    source of ideas.

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    An average of 700 people eat at this restaurant in a week and each customer spends

    around 7.5 to 10 excluding alcohol. Alcohol is consumed mostly in the night and

    people would spend around 3 on it.

    The majority of clientele visiting, during lunch hours, is attributed to corporates

    around the vicinity and in the night customers consist of either families or people

    coming home after a party as it is opened past midnight.

    70% of the payment is done using card and loyal customers get a discount of 6%.

    There are no student discounts available at this restaurant.

    There is a buffet available during the lunch hours from Monday to Saturday, which

    works out to be very economical for the working class.

    Mr. Desmond has tried to keep the interior youth oriented yet classy by using a lot

    of black and white themes throughout the restaurant.

    The background music that is utilized ranges from old to new English songs.

    Mr. Desmond is responsible for most of the ideas within the restaurant and he alsotakes customer opinions and feedback into consideration.

    Mr. Desmond spends a lot of time in the restaurant, which gives customers a good

    opportunity to give feedback directly to the owner. A suggestion box is also kept in

    the restaurant incase someone doesn't want to approach the owner directly or incase

    he isn't available.

    Innovations are done in terms of additions to menu, modernization of the interiors

    and expansion of the basic product; for example adding a dessert counter in the

    restaurant.

    There is a lot of competition in the restaurant industry in Bangalore and but the

    owner feel that people come back because of their personal relations, service,

    quality of food and hospitality.

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    Sanskruti

    This Vegetarian and vegan restaurant has been open for 11 months and is located in

    Mauldeth Rd near Fallowfield in Manchester.

    Sanskruti does not have any branches and is operated on a sole proprietorship run

    by Mr. Jaymin.

    Sanskruti focuses on the authenticity of their food and tries to keep recipes as

    traditional as possible.

    They serve alcohol and have a seating arrangement that accommodates 50 people.

    They employ 7 people and no home delivery services are available but people often

    take away food from this restaurant.

    An average of 300 customers eat here in a week and the Thali in this restaurant is

    very popular on the weekdays. The majority of their customers are Indians looking

    for authentic food and sometimes foreigners who are looking to experiment with

    new type of food.

    An average customer spends 10 pounds on a meal and if they are drinking 3 to 4

    is spent on alcohol.

    80% of the payment method used is card payment and student discount of 10% is

    available. There are no loyalty discounts available at this restaurant.

    The interiors include traditional paintings and pictures, which are hung up to give a

    traditional feel, which is enhanced by the Indian background music that is played in

    this restaurant.

    The owner is present in the restaurant most of the time, which enables customers to

    directly give their feedback to him. Online feedback of customers is also taken

    seriously.

    According to Mr Jaymin Sanskruti exploits a gap in the English market due to the

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    lack of authentic pure vegetarian and vegan restaurant in Manchester. This in

    itself is innovative and expansion of the menu and incorporating new dishes

    catering only to vegetarians and vegans is a form of product innovation.

    Mr. Jaymin feels that their customers would return to their restaurant again because

    of the authentic nature and good quality of their food.

    Tandoor

    Tandoor is one of Bgsfirst restaurants to start serving Mughlai cuisine and

    they have a loyal customer base for 33 years.

    It is located in on M.G. Road, which is in the heart of Bangalore city and happens tobe one of Bgsbusiest roads.

    It is a private limited company and this interview was given by one of the directors

    Mr. Raj Singh.

    The food on the menu comprises of dishes that have done well previously and thus

    enjoy easy marketability. Tandoor enjoys a loyal customer base that generates a

    steady revenue stream.

    They are known for their consistency in food and people have often said the food

    today tastes almost the same as 33 years ago.

    This restaurant serves alcohol.

    Tandoor has the capacity to seat 190 customers at a given time and approximately

    1925 people eat here in a week.

    The amount spent by a single customer for lunch is less than for dinner because

    people usually tend to drink in the night.

    The average spent on lunch is 7 to 9 and for dinner is 10 to 12.

    85 % of the payment is done using card and 10% is the average discount given to

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    loyal customers. No student discounts are available.

    No meal deals of buffets are offered and only al a Carte is available in this

    restaurant.

    The ambiance resembles a Rajasthani (State in India) Palace. There is not much

    innovation done regarding the ambiance, as they want it to remain similar to that of

    when they stared off.

    Incorporation of innovations, in this restaurant, is achieved by employing product

    innovation in relation to the menu. Mr. Singh himself has added a number of new

    items onto the menu recently.

    With regard to competition, Mr. Raj says the field is becoming more competitive by

    the day and the location is a prime hub for Indian restaurants like Tandoor. Another

    aspect of competition, which is challenging is obtaining manpower. To keep the

    authenticity of food and maintain recipes from up to 33 years ago, trained chefs are

    needed which might not be easily available.

    The most important aspects of the restaurant that Mr. Raj feel would make

    customers re visit the restaurant are their maintenance of quality, consistent quantity

    of food served and the Price at which the product & service is provided to the

    customer.

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    Chapter 5:Analysis

    The analysis consists of the interpretation of data collected and a subsequent

    discussion. Primary data was collected using the medium of interviews and the

    secondary data was collected from secondary sources like online articles, journal and

    books to analyze various topics related to the traditional restaurant industry. Towards

    the latter part of this chapter the data collected in the interviews is classified into

    psof according to Schumpeters classification methodology.

    5.1 Analyze the importance of traditional restaurants in

    everyday life.

    This section of the analysis has been concluded from the secondary data sources that

    have been collected for this research. The continuous rise in the number of working

    professionals in India can be directly co-related to the rise in popularity of traditional

    Indian restaurants. An increase in the number of people employed per household has

    increased over the years causing an increase in the number of families that order food

    or visit restaurants. In my opinion traditional restaurants cater the niche segment of

    individuals who are unable to cook but still want home cooked food. This is one of

    the predominant reasons for the growth in traditional Indian restaurants in the

    country.

    In the United Kingdom, the growth of traditional Indian restaurants could be because

    of the increased demand generated by the Indian populace present in the United

    Kingdom. The percentage of income spent on eating outside in United Kingdomis

    much higher than that of India. In my opinion people from other nationalities visiting

    a traditional Indian restaurant are either being experimental with their food or have

    tried Indian food before and have liked it. There is a growth trend within this sector

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    and that makes research about this topic more relevant.

    5.2. What is the role of innovation a in traditional

    restaurants?

    In the Restaurant industry most of the innovations take place either in Fast food

    (quick Service) restaurants or in large chains (Franchise help, 2014). For example,

    Y!Sshis a Japanese chain of restaurants that have implemented labor efficient

    techniques by using conveyor belts and taps providing drinking water fixed at the

    side of each respective table. This is a chain of restaurants that is found in many

    countries around the world including the United Kingdom, UAE And Norway (Yo!

    Sushi, 2014). Traditional restaurants, in my opinion, are usually slower to implement

    new innovations as they are small in size and resources are limited when compared to

    large restaurant chain. The restaurant industry is mostly less innovative when

    compare to the energy and healthcare sectors. According to the interviews conducted,

    traditional restaurants mostly innovate with regard to their product while other

    departments are not often neglected in terms of innovation.

    5.3. Analysis of the different types of innovation used in

    traditional restaurants

    There are five types of innovation as classified by Schumpeter are-

    Product

    Process

    Business Model

    Source of supply

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    Mergers and Divestments

    According to the interviews that were conducted the various innovations within

    the restaurant industry come under any one of the aforementioned five

    categories. The innovations in the restaurant industry as stated by the

    interviewees are usually incremental in nature. The most popular types of

    innovation are Product innovation, process innovation and Business Model

    innovation. A majority of the innovation within this industry falls under one of

    these three mentioned categories. The innovations relate to the restaurant could

    be divided into the following -

    Product innovation- this category is related to changes or additions made to food

    served within the restaurant. Changes in the quality, presentation or new additions to

    the menu would be the most popular forms of product innovation. All the restaurants

    were focused on traditional and authentic cooking. In order to ensure customer

    satisfaction in regards to the restaurant menu, restaurants need to constantly alter it by

    making additions or deleting items.

    Sanskruti and Jaipur Palace are less than a year old and hence can afford to be

    complacent and postpone any change in their menu erstwhile Dsmdsmakes it a

    point to change their menu once every 18 months or two years. Tandoor also makes

    additions to their menu creating new items but the classic customer favorites like

    butter chicken and tandoori kebabs are kept constant.

    Incorporation of the Thinto the menu of all four restaurants was an innovation in

    itself. The This still continued by Jaipur Palace, Dsmds and Sanskruti but

    Tandoor has discontinued it as the a la carte was proving to be more profitable for

    them.

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    Process Innovation- process innovation is related to new methods of production.

    The new method of production in relation to restaurants could be use of chain

    production or mass production of particular items, which are popular. According to

    Mr. Singh a director in Tandoor certain items need to be produced in bulk in order for

    them to be served quickly. For example, the chicken could be marinated in bulk and

    kept aside. The onions and tomatoes could be chopped up and kept ready because

    they are used in most of the Indian dishes. Similarly for the other three restaurants

    they prepare the food for the Th before hand thus eliminating preparation time

    and improving on overall efficiency.

    New methods could be used for cooking the food as well. Instead of using a gas firedstove, which is commonly used in India, shifting to electronic stoves might be

    economically beneficial. The change from gas fired to electrical burners would cause

    a reduction in cost of fuel and maintenance costs as well. Both the restaurants in India

    are trying to become more efficient in terms of the methods used for cooking

    allowing for a greater efficiency in terms of cost and time.

    Business model- Market innovation discusses the innovation related to a new market.

    Market innovation in the restaurant industry is very common but is mostly correlated

    with large-scale restaurants with easy availability of funds. Most of the restaurant

    owners that were interviewed run small-scale restaurants that prioritize authenticity

    over expansion.

    Both Sanskruti and Jaipur Palace have been operational only for 1 year and 4 months

    respectively and their owners have no plans for further expansion any time soon.

    Tandoor and Dsmdsboth tried to open another branch in Bangalore but it was

    not very successful as the owner had to divide their time and resources, subsequently

    leading to the shut down of the secondary restaurant.

    A number of traditional restaurants are happy with their small size as it is easy to

    maintain and due to the generation of steady sufficient revenue. Expansion of a

    restaurant often causes owners to juggle their attention between two or more

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    restaurants and this could lead to the reduction in quality of one or all the restaurants

    subsequently leading to a reduction in sales. Most of the traditional restaurants that

    were observed for this study are small scale and the owners are content with their

    size.

    Sources of supply- This innovation is related to the various methods of obtaining

    input or raw materials. In the restaurant industry the majority of the raw materials are

    edible items like vegetables, meat, breads, etc. Sources of acquiring these goods are

    referred to as innovation related to sources of supply.

    Sanskruti and Jaipur Palace both have invested in a thorough market research before

    investing specific sources of supply within the industry, which helps them obtain raw

    materials at cheap prices. Dsmds and Tandoor have been in the industry for

    many years and hence rely on consistent vendors who give them the best price of raw

    materials bought in bulk.

    Innovation in relation to new inputs is not very visible, as only minute changes can bemade in relation to the supply of raw materials. The owners of the restaurants

    conduct a comparative market analysis regularly and in due course chose the vendor

    providing the best quality for the best price.

    Mergers and Divestments (organizational innovation)- Amongst the four restaurants

    that were interviewed Sanskruti and Jaipur Palace were sole proprietorship concerns.

    These two restaurants have been operational in the market for a much shorter time as

    compared to the other two restaurants interviewed. There has been no organizational

    innovation in relation to these two restaurants though the possibility cannot be ruled

    out for the future.

    Dsmds is a partnership concern, which was initially a sole proprietorship

    concern, akin to the aforementioned, restaurants. The organizational structure of the

    restaurant was changed to make it into a partnership between Mr. Desmond and his

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    wife holding 30% of the shares and each of his two sons holding 20% of the shares.

    Tandoor used to be a sole proprietorship firm as well when it initially started in 1981.

    Today they have changed the organizational structure into a private limited company

    with two directors holding the majority share of the restaurant. Hence it can be

    concluded that though, a majority of the restaurants initially start as sole

    proprietorship or a partnership ventures, with the passage of time and on the

    evaluation of growth potential, organizational structure changes are usually

    incorporated.

    5.4. Analysis of the differences between traditional

    restaurants in India and the United Kingdom.

    Four restaurant owners were interviewed to formulate the database for this research.

    The primary data generated was used to draw a comparison between the traditional

    restaurants in United Kingdom and India. Two of them were from Manchester

    (United Kingdom) and the other two were from Bangalore (India). The similar

    characteristics of the restaurants in each country are mentioned after the differences.

    Although these features interviewed did not present identical results, they did

    however have a significant impact on the results of this report.

    There were a number of differences as well as similarities found between both

    countries. Some of the differences are-

    5.4.1 Organizational structure

    The organizational structure adopted by both the restaurants in the United Kingdom

    was sole proprietor ownership. In India one restaurant had a partner ownership while

    the other was a private limited company. The organizational structure of the

    restaurant could make a big difference in its operation.

    The restaurants in Manchester were both owned and managed by a single person.

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    This shows that there is an immense amount of pressure on the owner. Both the

    owners had sufficient knowledge about the cuisine served in their restaurant and they

    had to handle the entire operations of the restaurant from cooking, finances,

    employment and legal documents, to name just a few operations.

    The restaurant in Manchester are newly established as compared to the restaurants in

    Bangalore which might be one of the reasons behind the ownership being limited to

    one person. This method of ownership could be beneficial for people who are not

    willing to delegate work to others. This form of