During the early stage of the Pandemic many people moved back to their hometowns due to various reasons, and Cloud Kitchen set up being a Low Capital-Intensive Opportunity, gave hope to the new entrepreneurs wishing to foray into the F&B Business.

The people returning from Metros were widely exposed to the culture of Food Ordering Apps from the ease of their Home / Office. Hence the Online Food Aggregators saw a steep rise in their online food ordering trends from Tier 2&3 Cities.

Reasons impacting the growth of the Cloud Kitchen in Tier 2 & 3 Cities – Comparative to Metros, are, Less Investment , Lower Rentals, Smaller City Radius giving access to Food Aggregators to Cover most of the City, Lower Cost of Manpower, Increasing Culture of Food Ordering rather than Dine in, Higher Disposable Income, Comparatively Less Competition, Less entertainment options, job opportunities, and the aspirational mindset of the people in Tier 2 & 3 cities are a big plus for the Cloud Kitchen business.

Increased reach of the Internet & usage of Smart Phones, has also acted as catalyst to the Food Ordering / Delivery Modules.

Remote Location Rentals for Cloud Kitchens work as advantage and contributes towards a lower operating cost & maintaining a healthy GOP (Gross Operating Profit). Tier 2 & 3 Cities being a great Opportunity for Passionate Entrepreneurs wishing to enter the Food Busines.

Existing Home Kitchens/Chefs have turned their business into Cloud Kitchen and growing their business day by day. Opportunity to scale the Operations / Business and generate funding always will be the Key motivator for the Cloud Kitchen Operators.

Newer Cloud Kitchen Concepts for Tier 2 & Tier 3 Cities have given options to the end users to choose from in turn increasing the ordering pattern. Specially between the young college going millennials the Cloud Kitchens are a big hit, as they are able to decide from where they would like to order depending Upon the Ratings on the Food Aggregators.

Summing up Cloud Kitchens are the new trend and going to stay here for good.

Pankaj Giroti is the Chief Advisory Mentor of TallOak Hospitality

Source: https://hospitality.economictimes.indiatimes.com/news/speaking-heads/growing-market-for-cloud-kitchens-in-tier-2-3-cities/90813855

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Although the cost of setting up a cloud kitchen is low, one does save on the front of the house cost, but sometimes cloud kitchen operators do not factor in the high working capital for running a successful cloud kitchen. It generally takes 6 to 9 months to come into profits, depending upon your cloud kitchen’s location, menu offering, pricing and food cost.

The ideal menu for a cloud kitchen should be with low food cost and higher yield, for which one can charge a decent amount and the customer does not mind paying. One should always keep a close watch on the food cost and tweak the menu regularly according to the pricing and availability of the raw materials and customer demand.

Maintaining consistency in food delivery through its quality and packaging experience, is utmost critical, in order to create guest satisfaction, retention of customers, by gaining their loyalty and in turn getting repeat orders.

Failure to create direct delivery options via promoting the brand’s website and encouraging the customers to order directly and the cloud kitchen delivering a better experience than the delivery partner makes a huge impact on the profitability of the cloud kitchen.

Another very important factor is the lack of Standard Operating Procedures (SOPs), the success of a cloud kitchen depends on how effectively and efficiently the SOPs are implemented and followed by the team and not adhering to the SOPs leads to poor operations management and controls.

One feels that while we are online on the food delivery partner’s platform, the cloud kitchen does not need to do any kind of marketing. It is very imperative to create a direct customer base and reach out to as many customers as you can. The online aggregators have a limited area of delivery for a particular cloud kitchen, but how does one reach out beyond that area. Failure to do so again leads to low sales and profits.

There are many reasons for the failure of cloud kitchens, but the most critical reasons are thin margins, kitchen space rentals, higher commission of the third party online delivery partners, rising competition, lack of dining experience, lack of SOPs, inconsistency in operations and food preparations, poor financial planning, fancy and elaborate menus, lack of marketing, lack of guest interaction as explained above.

Hence, before entering the cloud kitchen space one should do a thorough analysis and be prepared to face the challenges of the cloud kitchen business.

Source: https://chefbharath.com/why-do-cloud-kitchens-fail/

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With the implementation of an effective MIS within a Hotel / Resort, the Management Team is able to generate right / correct information whenever required, with the support of technology and make effective decisions, impacting the Guest Experiences, Companies Culture, Investors Relations / Confidence.

Management Information System – Is a vital tool to monitor, control and maximize the operational efficiencies, hence increasing the ROI’s, by the way of information generation, communication, problem identification in turn helping in the process of decision-making.

With the implementation of an effective MIS within a Hotel / Resort, the Management Team is able to generate right / correct information whenever required, with the support of technology and make effective decisions, impacting the Guest Experiences, Companies Culture, Investors Relations / Confidence. A Hotel / Resort is focused on its service and product offering. MIS enables us to extract vital information & facilitates the Hotel / Resort to achieve its business goals in a more efficient manner. It becomes very important for a Company managing / operating a multi-unit Hotel / Resort Operations, locally or globally, to have a robust and user-friendly MIS in place, so that every level of management team is able to use and take advantages of the MIS within the day to day operations of a Hotel / Resort.
MIS enables a Hotel / Resort to strengthen themselves by identifying areas of improvement, by generating various reports for e.g. Revenue Reports, Food & Beverage Cost Reports, Sales & Marketing Reports, Employee Performance Reports etc. etc. Having a strategic report at the right time, enables a Hotel / Resort to tap the opportunities & address the areas of improvement real time, giving the Hotel / Resort a competitive edge.

Every Hotel Company has their Own Unique MIS Structure. Fostering a culture to implement & generate Reports is the most critical tool for effective Hotel Management.

Standalone Hotels viz a viz Branded Chain Hotels, sometimes struggling due to the lack of effective MIS in place. MIS not necessarily be technology driven, especially for smaller Hotels / Resorts where economies of scale is not feasible. The Hotel Management Team still can implement the MIS with the way of efficient record keeping of all the activities happening at the Hotel / Resort. One should chalk out a Plan and mentor the Hotel’s team to generate Daily, Weekly, Monthly Reports for all the Departments of the Hotel, enabling the Management Team to make effective decision-making adhering to their business goals.

Strategically formulated reports enable Hotels / Resorts to maximize the benefits of the opportunity present within the market & minimize the effects of harmful events. MIS helps with data assimilation and in turn helps the Hotel / Resort to perform direct marketing & promotional activities. MIS acts as a great communication & planning tool for a Hotel / Resort. MIS helps in planning, management & operational controls, process seamlessness by providing appropriate reports & information. MIS processes data effectively, helping a Hotel / Resort by being more flexible to demand, in understanding its guests needs / behaviors & keeping the costs down.

Hence investment within a good MIS Tool becomes extremely important for a Hotel / Resort.

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Branding is an idea or image which is marketed & that it is recognizable by more and more people, identified with a certain service or product. Branding is an important aspect of a company, as it allows companies to build their reputations and expand their portfolio.

Hotel / Resort Brand Names & their Brand Standards can be a big part of the marketing of any type of hospitality ventures. Branding has always been a hot topic. One must either be affiliated by a Franchise Agreement or Membership or a Brand Created independently. A Brand provides an identity and a sense of consistency. Creation of a Brand can be achieved, by focusing on the expectation and market analysis & all deliverables including the Brand manual.

A brand is the identity of a specific product, its service delivery & its consistency. Brand Standards distinguish facilities from its competitive set, so as to establish their own customer preference. Customers are likely to prefer well-known Hotel / Resort Brands because of their distinguished Brand Standards, over generic products in order to minimize their R&D & risk.

12 August 2016

Branding is an idea or image which is marketed & that it is recognizable by more and more people, identified with a certain service or product. Branding is an important aspect of a company, as it allows companies to build their reputations and expand their portfolio. People are even attached with a Brands Emotionally as well, because of their Standardization & Customer Service. Brand Standards driver higher ROI by capturing more market share & in turn building strong customer loyalty. For a brand to stand out, there must be consistent Brand Standards in place, which ensure that each Team Member of the Brand has the responsibility to deliver a consistent & uniform guest experience.

For Franchised & Managed Hotels / Resort, Operators take various steps to make sure their Brand Standards are in compliance. All Operators mandate Brand Standard Audits and if not complied with on one or more occasions, ultimately resulting in bitterness in relationship & termination of the Franchise or Management Arrangement.

Compliance of Brand Standards at all times is achieved through the daily management leadership of the General Manager of the Hotel / Resort by way of fostering a Strong Culture through Induction, Training, On Job Training, Recognition and other Learning & Development Tools available on hand. Firm implementation of the Brands SOP’s is a Key Pre-Opening Exercise for a Hotel / Resort. Brand Standardization across the board (all departments) within a Hotel / Resort – Front Office, Housekeeping, F&B Service, F&B Production, Engineering, Purchase, L&D, HR, Sales & Marketing.

Brand Standards act as a minimum level of Product & Service expectations within the eyes of a Guest. They create cohesiveness necessary to the survival of a Hotel / Resort. Brand Standards are critical in creating Brand Identity & Equity. Standards bring stability to the business. Standards Keeps one ahead of the Competition. Standards allow a Guest to Choose a Hotel / Resort with confidence. Standardization reduces operating Costs.

Brand Standards which have been developed over a period of time, they should be part of Companies Vision & Mission Statement. Everyone working for the common goal of the company should go the extra mile to exceed the Guest Expectations by consistently achieving a higher level of Brand Standards.

Communication & Deliver of Brand Standards should match each other. Very importantly, the Service Standards provide the staff with guidelines as to what they should be doing for their guests. Standards help to identify and close service gaps.

A Satisfied and a Happy Guest becomes the Hotel’s / Resort’s Brand Ambassador and tends to bring in referral & repeat business for the Hotel / Resort.

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Feasibility Study is generally done to identify the Strengths, Weakness, Opportunities & Threats to a particular proposed development linked to its Cost of Development, Product Positioning, Revenue Analysis, DSRC & IRR Ratios, eventually determining the ROI.

Feasibility Study is primarily conducted to provide honest and reliable information to the client to help them decide whether to develop their proposed Hotel / Resort project. It allows a venture to address how it will operate. It also identifies potential hurdles that may hinder the operations and determine the amount of funding to get the business up and running. Feasibility Studies assess the financial viability & suitability of a location & market for a Hotel / Resort project.

Feasibility Study should be conducted before starting a Hotel / Resort Project. It should be clubbed along with a Concept Development of the proposed project which co relates to the financial assessment of the Project. A feasible project is one which has greater economic value than its cost.

At the backdrop of such a conducive business atmosphere Feasibility Study Reports on Hotel / Resort Development attempts to examine such critical factors which will provide vital inputs in general to the potential investors and estimation of commercial viability of such an investment. It presents the market analysis of the hospitality industry in terms of structure, segmentation, market size, major share etc.

Feasibility Study analyses the steps involved in setting up a Hotel / Resort describing the technical aspects in terms of locational details and land requirement. It assesses the manpower planning and financial estimates involved in setting up a Hotel / Resort. Feasibility Study brings an insight into the procedure for setting up a hospitality venture, type of machinery & floors space required, requirement of regulatory permissions & clearances. Analysis viz. SWOT of the industry. An Investor before taking over / entering a new venture wants to understand the future prospects and fair valuation of a property. Feasibility Study is equally important for those who are buying / selling a Hotel / Resort and also too for hospitality establishments looking to start a Green Field Hotel / Resort project.

Following are some key factors which should be kept in mind while getting a Feasibility Study done.

• Concept Development along with Proposed Hotel / Resort Facilities
• Geographic & Demographic Analysis
• Tourism Data Statistics Analysis
• Competition Analysis
• Market Fare Share Analysis
• Market Segmentation
• SWOT Analysis
• Demand Generators
• Brand Positioning
• Capex Cost Parameters
• Manpower Analysis
• Operating Revenue & Expense Analysis
• DSCR (Debt Service Coverage Ratio) & IRR (Internal Rate of Return) Ratios

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Advantages of Hotel, Resort – Brand Tie Up / Brand Conversion

Hotels should focus & work hard to secure a great online reputation by way of positive guest feedback, which gives the hotel an edge to bargain to increase the revenues. Satisfied guests become Hotel’s brand ambassadors.

• Pankaj Giroti September 29, 2020, 15:50 IST

Being the market leader, in these times is dependent on a hotel’s ability to quickly adapt & change the business module to exceed the guest expectations & the surrounding market community.
1. Making a Splash
Everyone needs something new. Renovated and converted properties become a point of interest immediately within the local and global market. Hotel Owners can capitalize on the new improved asset. An expert team and well strategized marketing plan for the launch of the New product plays a critical role and draws customer base faster.

2. Transformative Impact
Ideally, the cost of transformation & refreshing the product is substantially less than a new-build. The advantage still being that the market perceives the renovated hotel as a New Product, making it possible to capture more market fair share and significantly improve the revenues.

3. Become a part of Bigger & Expert Network
Avail immediate benefits by choosing & joining hands with the right Brand fit for your Hotel. It does not make economic synergy for a standalone hotel to create the band width that a well-established Chain of Hotels will bring to the table.
4. Catalyst Impact
Hotel Brand fit which brings marketing, sales, manpower & revenue enhancement controls & tools, acts as a catalyst, resulting in faster growth, because the renovated or converted hotel is kind of a New Hotel Launch with new Brand positioning, price points & new target customers.

5. Take a leap within the Competition
Property improvement plan puts the Hotel ahead within the comp set aesthetically, while the up to date global systems & process in place puts the Hotels overall positioning onto the next level.
6. Higher Level of Performance & Enhanced Guest Experience
A well-trained Team, effective SOPs, fair & firm Management, are the key to High Level of Performance. The feedback a Hotel receives from its guests is extremely important. Hotels should focus & work hard to secure a great online reputation by way of positive guest feedback, which gives the hotel an edge to bargain to increase the revenues. Satisfied guests become hotel’s brand ambassadors.
7. Increase in Occupancy
Bump up Revenues, by taking advantage of a great distribution network of the new Hotel Brand. Up to date Revenue management skill sets of the team & the tools, with a global approach, helps the Hotel Occupancy levels. Maximizing the service levels, ensures the travelers which the Hotel attracts & in turn they become long-term customers and the Hotel sees a rise in direct bookings.
8. Enhanced GOP & Healthy ROI
With a proven track record of a professional team in place, an asset is managed well and deliverables are much healthier, increased Revenues – ADR’s & APC’s. With strong MIS in place, the GOP & ROI is bound to see a gradual growth and meet the financial targets.

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Creating the right kind of Hospitality facility is very important. The idea is to create hygienic facilities, ease of working and comforting atmosphere, in addition to something that pleases one and all.

Strong compliance to food safety and hygiene standards has become a unique selling proposition for hotels and restaurants going forward and it would enable them to build higher guest confidence in today’s scenario in turn drive revenues as well.

Creating the right kind of Hospitality facility is very important. The idea is to create hygienic facilities, ease of working and comforting atmosphere, in addition to something that pleases one and all. Moreover, the aim should be always to reduce the cost of operation and increase efficiency manifolds without compromising the Food Safety Standards. As the old saying goes, the Back of the House supplements the Front of the House.

Being proactive is the ONLY mantra. Preventing outbreaks before they happen is what every business should be focusing to comply with. Success depends on satisfying your guests and managing your risks.

Information, education, networking to the hilt is the key to survival and success today. We all know information & education is power, which will translate to high levels of guest confidence & satisfaction.

While progress is happening, the hospitality facility provider should gear up, and their efforts must continue in reducing food borne illness in order to reduce the health impact on consumers. Improper cleaning and sanitization of food service equipment, surfaces & utensils are a significant factor in the food production process. Microorganisms are frequently transferred directly onto food or surfaces during the food preparation, serving and storage cycle. Poor hand washing, failure to clean and sanitize a cutting board between uses, or using the same preparation table with raw and cooked foods are all examples of how easy it is to move bacteria around the kitchen and create dangerous food safety risks.

Complying with the HACCP and Food Safety regulations, one needs to conduct a hazard analysis, identify critical control points, establish critical limits, critical control monitoring requirements, corrective actions, pest control management, regular daily / weekly audits, record keeping systems and verification procedures.

That is why it is very important to develop an effective HACCP Plan before opening any new kind of food business, small or large scale & also to foster a culture of food safety.

Hospitality Facilities / Food Business Owners should get certified & make their own tailored made Good Practices, keeping in mind the Local Governmental Guidelines & also keeping in mind WHO, CDC, FSSAI, SAATHI recommendations.

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Our Focus – Hotel, Resort – Brand Tie Ups / Conversions.

Management / Franchise / Leasing / Revenue Share Modules.

We work with 20 Plus International Hotel Brands & 50 Plus Domestic Hotel Brands.

Get in touch, so we may assist you with the right Brand Fit.

E: talloakhospitality@gmail.com  I W: www.talloakhospitality.co.in

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Gaurs Group, one of India’s leading Delhi based real estate firm has announced delivery with the offer of fit-outs for its Rs 750 crores, Gaur City Mall, at Greater Noida West.

The mall is touted to be the first and largest mall of Greater Noida West with over 8.45 lac square feet of retail area.
Gaur City Mall, which is Ground + 20 floors in total has the mall on the first 5 floors followed by offices and service apartments and has signed up with Radisson Hotels for an upscale 180 key Luxury Hotel at the top. The mall is a part of 25 acres Gaur City commercial hub which has Gaur City Center – a commercial project, biggest multilevel parking of the region for 5600 cars, an operational petrol pump and an upcoming hospital of Gaurs Group’s 237 acres Integrated township. Gaur City has been developed with an investment of Rs 8000 crore and will be housing close to 29,000 families in Greater Noida West. With a huge retail area catering to shoppers, the mall will also have a 180 key upscale Radisson Hotel, which itself is the first in the region. Along with this, the mall will also have commercial office spaces and service apartments.

The retail area has already been flooded by brands in multiple sections, be it the anchor stores or F&B. The mall would have coffee shops, restaurants, lounges, gym, spa and banqueting & conferencing facilities. Located right on the Gaur Chowk – entry to Gr Noida West region and on the 130-metre wide road, the mall is in close vicinity to the approved metro station. The mall would cater to the huge population of Gr Noida West which is close to 3 lac residents. Gaur City alone would have a population of close to 1.5 lac residents when fully occupied.PVR Cinemas is the Multiplex partner at the mall to provide the best cinematic experience. Anchor store brands like Shoppers Stop, Lifestyle, Big Bazaar, Globus, Pantaloons, Reliance Trends, Home Center, Max, Fab India have already tied up along with vanilla store brands like Raymond, Miniso, Puma, Blackberry, Adidas, W, BIBA and many more. The mall would also embody the best in dining and food outlets with Barbeque nation, Imperfecto, Starbucks, Burger King, Smoke Factory, Subway, Dominos, Carls Jr, already in place. In total almost 80+ brands have been signed at Gaur City Mall ensuring success from the word go.

This is the group’s second shopping mall. It has already developed ‘Gaur Central Mall’ at Raj Nagar District Centre in Ghaziabad. The Group has plans to start 3 more malls this year with 2 in the NCR region and one in Dehradun. The group is also developing multiple group housing projects in Noida, Greater Noida West and Siddharth Vihar (Ghaziabad) along with a 250-acres township project, Gaur Yamuna City on Yamuna Expressway. The group has also forayed into affordable housing along with expanding in education and hospitality sector.

About Hospitality Projects

Founded in the year 1995, Gaurs Group has never looked back. With a credo for chasing excellence in each and every endeavour, Gaurs, since its inception, has been riding high on the path of success.
A proud history of delivering projects on time and as per promised specifications, Gaurs is a name to reckon with when it comes to real estate in NCR.
Manoj Gaur, an eminent name in the Indian real estate sector is the managing director of Gaurs Group. He is also the founding member of Indian Green Building Council and the forerunner in group housing & integrated township projects in the country.
Apart from Real Estate, Gaursons India has ventured into Education sector few years ago by opening Gaurs International School at Gaur City, Greater Noida West, and now has ventured into the Hospitality sector as well.
Gaursons India is pleased to announce their Tie Up with prominent Hotel Brand likes Sarovar Hotels & Radisson Hotel Group.
Following are the Groups upcoming HospitalityProjects:

The Gaurs Sarovar Portico – a 72 Keys Mice Destination, at Gaur City Club, Greater Noida West, having Banqueting & Conferencing Facilities up to 10,000 pax. All Day Dining, Tea Lounge , Swimming pool , GYM. Proposed Opening 3rd Quarter of 2019.

Radisson – a 180 Full Service Hotel at Gaur City Mall, Greater Noida West, having Banqueting & Conference Facilities up to 500 pax. All Day Dining, Coffee Shop, Infinity Swimming Pool, GYM, SPA. Proposed Opening between 2/3 Q of 2020.

Gaurs Runway Suites – 84 Keys Service Apartments, at Gaur Yamuna City, at Greater Noida, having Banqueting & Conference Facilities up to 350 pax. All Day Dining, Coffee Shop, Swimming Pool, GYM, SPA – Project under Construction stage.

Gaur Central Mall – 120 Keys Luxury Hotel, at Dehradun, having Banqueting & Conference Facilities up to 600 pax. All Day Dining, Coffee Shop, Swimming Pool, GYM, SPA. –Project on Drawing Board Stage.
All together the group will have 454 rooms approximately up in running by 2023.

Manoj Gaur, MD, Gaurs Group

There is currently no other mall in the region and Gaur City Mall is going to fulfil the gap. We are expecting the mall to be very successful as with such a large population already residing and over a lac more flats soon to be ready for possession there would be a huge demand for shopping and commercial area.

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