MBS Dessertation

A comparative study of the Indian
Restaurants in the
United Kingdom & India
And
Their innovations
A dissertation submitted to the University of Manchester
for the degree of Master of Science in the Faculty of Humanities
Year of Submission
September 2014
By
Charlene Clarke
Dissertation Supervisor: Professor Ian Miles

Manchester Business School
List of Contents
List Figures
Abstract
Declaration
Copyright statement
Acknowledgement
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
A comparative study of the Indian Restaurants in the
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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
And
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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

And
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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 of
primary 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 started
to 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 classification
has 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 Kingdom is 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 Kingdom where 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 maximise
customer 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
explained with 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 industry is
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 topic is 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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14
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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15
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 process and 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 to
classification 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
Source
model - includes innovations related to a new market.
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 adaptors
incorporating 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 (Business
Dictionary, 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 more
researchers 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, drive through, 30 minute deliver and healthy convenient fast food options
like 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 and
resources. 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 similar
aspects 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 as
well (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 hotel
industry. Given below in figure 1 is a graphic representation of the various sub
sectors of information technology related to the restaurant industry
I.T Presence in Restaurant Industry

25
% Presence
20
Restaurant
Managment
Systems
15
10
Point of Sale
5
0
1960-64
1970-74
1980-84
1990-94
2000-04
2010-11
Years
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.

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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 online
reservation 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 (ChingShu 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 (ChingShu 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 Kingdom as 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 collected
directly from first-hand experience (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
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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 United
Kingdom and India with respect to the Indian restaurant industry.
What is the inspiration for restaurants employing new ideas to innovate? What
role do competitors play in influencing restaurants to innovate?
Can the best strategy from both the countries be implemented to create a new
successful model? If yes, explain how?
What is the direct relationship between the implementation of a new innovation
and 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),
D sm ds
(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 k away operational methodology

and thus mostly serve fast food like pizza, fried chicken and fish & chips.
Some of these k
w restaurants 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 erstwhile
being 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 a
single 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.
Comparison Between The Indian

Restaurants in India
Tandoor
No. of
Customers/
Week
Desmond's
500
1000
1500
2000
2500
Customers
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 D sm ds. This could be attributed to that fact
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that Tandoor allows for 10-15% discount for loyal customers when compared to
only 6% given by D sm ds
Comparison Between The Indian

Restaurants in The United kingdom
Sanskruti
No. of
Customers/W
eek
Jaipur
Palace
50
100
150
200
250
300
350
Customers
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 will
be 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.

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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
and they play Indian
music in the background to suit the environment.
Th
is 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
h s
says 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
D sm ds 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 two
sons.
D sm ds is 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.
D sm ds has the capacity to seat 70 customers and employs a total of 32 people.

Most of the staff have been working with D sm ds 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 also
takes 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 B g
s first 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 to
be one of B g
s busiest 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
p s of
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 Kingdom is
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 ! S sh is 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 D sm ds makes 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 Th
itself. The Th
into the menu of all four restaurants was an innovation in
is still continued by Jaipur Palace, D sm ds 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 fired
stove, 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 D sm ds both 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. D sm ds 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 be
made 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.
D sm ds 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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Their innovations
47
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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48
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 ownership requires constant and
diligent attention from the owner in order to facilitate smooth functioning of the
restaurant. Thus the responsibility to facilitate quality human resource management
and to prevent loss by theft and pilferage both fall upon the restaurant owner.
The restaurants in Bangalore have been in operation for 25 and 33 years respectively.
They cater to more number of customers on a daily basis and have an organizational
structure of partnership D sm ds) and Private Limited Company (Tandoor). Since
the size of operation of the restaurant is large, the employment of multiple owners
can often reduce stress by the division of duties in an appropriate manner.
Though both the restaurants interviewed in Bangalore have tried to previously
expand, they were unsuccessful because of the inability of the owners to manage time
between two restaurants leading to the subsequent closure of the second branch. In
comparison both the restaurants interviewed in Manchester are not looking at
expansion and want to focus all their attention on one restaurant.
According to S h mp
s classification of the types of innovation dealing with the
organizational structure within a firm, the organizational structure of a restaurant falls

under the category of Merger and Divestment innovation. The restaurants
interviewed in Bangalore were innovative in this aspect as they evolved from having
a sole proprietor ownership to a partnership or private limited company. One of the
reasons for this could be the considerable number of years, in excess, that they have
been present in the industry in comparison to the restaurants interviewed in
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49
Manchester.
5.4.2.Product innovation
All four restaurant owners that were interviewed said their restaurants served alcohol.
As stated by the owner of Jaipur Palace, Dr. Jaju, people do not usually consume
alcohol while eating Indian food. Indian food is usually spicy and Indian meals are
difficult to digest so not many customers choose to consume alcohol with their meal
apart from an odd drink or two. Tough this presumption held true for the restaurants
in Manchester, it was proven false in relation the restaurants in Bangalore.
Both D sm ds and Tandoor hired a specialized bartender in their restaurants unlike
the restaurants in Manchester. The bartender made a variety of cocktails that were
suitable for Indian food. An appropriate example of this would be the development of
Vodka P
(a mix of vodka, blended spices and cold water) which could be
consumed as a cocktail or as a starter as well. The presence of non-alcoholic drinks

was also more common in the restaurants in Bangalore, which could be seen as an apt
example of profitable product innovation.
The restaurants in Manchester have tried to innovate in relation to food by providing
variety in traditional Vegetarian and vegan options available to customers. The
innovation in the restaurants in Manchester is limited only to vegetarian and vegan
recipes. This could be interpreted as a limitation on the scope of expansion within
their restaurant.
In Bangalore the options available to customers are mostly traditional but some
dishes are prepared to suit specific requirements of customer for example fusion food
like I d
s d Ch
s is available if requested. I d
s d Ch
s is a mix
between the spicy flavor of Indian food added to popular Chinese dishes like fried
rice or noodles. Fusion food usually accommodates traditional food recipes with a
twist and the availability of these options is popular among restaurants in Bangalore.

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50
5.4.3. Labor
Labor could be an important determinant of the level innovativeness within a firm.
Many economists have given importance to labor in their definitions and this could
help understand the relationship between labor and innovation. There was one
common feature between both the restaurants that were interviewed in Bangalore,
which was that they both employed a higher number of employees when compared to
the restaurants in Manchester.
Tandoor had 275 customers who visited their restaurant everyday. They employed 82
staff including their service staff, chefs and bartenders. This was calculates as 1 staff
member serving every 3 customers. Similarly D sm ds catered to around 114
customers everyday erstwhile employing a total of 32 staff. One staff member served
3 customers in this restaurant as well. When the staff to customer ratio was compared
to the restaurant in Manchester Jaipur Palace had one staff member serving 5
customers (40 customers/day and 8 staff serving them) and Sanskruti had 1 staff
member serving 7 customers (50 customers/day and 7 staff).
From the amount of labor employed by each restaurant, two outlooks could be
assumed; 1.) The restaurants in Manchester are under employing staff to work in their
restaurants or 2.) The efficiency of staff in the restaurants in Manchester is higher
than the staff in Bangalore. For the purpose of comparing of innovativeness between
countries we will look into the second aspect. Each staff member in the restaurants
interviewed in Manchester is serving between 5 and 7 customers. This shows that the
level of efficiency per staff member is higher than that of Bangalore (3 customers/
staff member for both the restaurants). This is a form of process innovation. Either
the staff in Manchester is more qualified for their job or there is a process, which is
followed that allows each staff to increase their efficiency.
Process innovation includes the innovation in different services available to the
customer apart from the main product innovation. Thus it can be assumed that the
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51
greater the efficiency of the staff, the lesser number of staff that is subsequently
required. With the decrease in the number of staff required there is also a co-related
reduction in wage expenditure, which results in savings for the restaurant and thus
acts like a process innovation.
One important feature, which should be taken into account, is that the restaurants in
Bangalore could be employing more staff because the comparative cost of labor in
Bangalore is much cheaper than in the United Kingdom. The labor laws require the
staff to be paid a minimum of 6.5 per hour in the United Kingdom erstwhile while
the labor in India is available for much cheaper (The United Kingdom Government,
2014)). This is an aspect that should be given considerable importance while
formulating a comparative study also taking special notice of the prevailing currency
conversion rate in order to obtain accurate results.
Comparison of Customer to Employee Ratio

300
250
Customers/W
eek
200
150
Employed
Personnel
100
50
0
Tandoor
Desmond's
Jaipur Palace
Sanskruti
Figure 4, Comparison of Customer to Employee Ratio

The figure 4 given above clearly depicts that although the number of customers
visiting Tandoor per week is the highest it is D sm ds that is in greater demand
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Their innovations
52
due to the number of
s m s visiting/seat available per week is greater.
From the figure given above it can also be garnered that Sanskruti enjoys double the
customers visiting per week per seat available when compared to Jaipur Palace.
5.4.4. Expansion for the restaurant

One common feature that was noticed in the restaurants interviewed in Bangalore
was that both the restaurants tried to expand their business by opening a second
branch but were unsuccessful. The restaurants were opened under the same name but
the owner/directors were unhappy with the outcome.
Tandoor had opened their second branch in one of the malls in Bangalore and
D sm ds had opened their second restaurant in a locality popular for restaurants.
The second branch of each restaurant required time and effort from the
owner/director of the restaurant and the division of resources like labor (Chef and
service staff). It was challenging for the owners/directors to manage both the
restaurants, which led to subsequent closure of the second branch.
The common features with the restaurants interviewed in Bangalore are that they
were initially open with the idea of expansion in mind and the owners pursued that
ambition when the opportunity presented itself. Along with their being a growing
demand for restaurants amongst the urban populace in India the number of customers
visiting restaurants in India has also experienced steady increment.
Although the average percentage of income spent on eating out by an Indian is not as
high in comparison to the United Kingdom, the sheer population of India can be seen
as the cause for its high demand. One disadvantage of the high population is that
many restaurants are established within this industry increasing the amount of
competition.

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53
Thus operation within the Indian restaurant industry is considerably difficult. If

appropriate resources and assistance is available to the restaurants in Bangalore in the
future they could re-examine another attempt at expansion. Their loyal customer base
and good reputation in the market could continue to prove as an added advantage.
The traditional restaurants owners in Manchester that were interviewed were
comparatively new to the market as compared to the restaurant in Bangalore. Jaipur
Palace and Sanskruti were both owned on a sole proprietorship basis and did not have
any expansion plans. Thus it can be concluded that the traditional Indian restaurants
in Manchester have a niche market and are satisfied with being able to run one
restaurant efficiently rather than invest in expansion. According to the owner of
Jaipur Palace being ambitious is a good trait but when it could interfere with what has
already been established in the past, it could become problem.
5.4.5. Competition
When the owners and directors were asked about competition in the market, the
restaurant owners in Manchester and the ones in Bangalore had two very different
opinions. The Restaurants in Manchester said that they both catered to a specific type
of customer segment who are mostly vegetarian and vegan customers. There is large
portion of the Indian population that is vegetarian mostly because of religious
purposes and vegans because of personal preference. In addition to being vegetarian
some customers are also extremely particular about the methods used to cook the
food, which is why they prefer not going to a restaurant that caters to nonvegetarians.
This is the target audience for Sanskruti and Jaipur Palace along with customers who
want to eat authentic and traditional food. Both these restaurant owners are not
threatened by competition because they have a steady customer segment that they
cater to. There are not many vegan and vegetarian restaurants in United Kingdom,
which proves to be a positive aspect for the traditional Indian restaurants interviewed
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54
in Manchester. The owner of Sanskruti also categorically mentioned that the reason
behind the conception of this restaurant is because he saw a opportunity in the market
which could be successfully exploited
D sm ds and Tandoor cater to a much wider variety of clientele as there are many
restaurants providing similar cuisine present in Bangalore. They serve vegetarian as
well as non-vegetarian Indian food that accommodates the most popular type of
cuisine. Their target audience is wider, in comparison to, the restaurants in
Manchester, which could also prove as a threat because of competition serving
similar food.
The owners of both the restaurants are aware of the competition in the city and they
try to stay ahead of it by maintaining their quality and ensuring their customers are
always satisfied. This technique has worked well for them over the years as they have
a steady and reliable customer base due to their sterling reputation within the
industry.
5.4.6 Customer loyalty and loyalty discounts

Upon review it was found that the customers that visit the restaurants in Manchester
have a direct geographical proximity in terms of accommodation or work near the
restaurant. According to the owners clientele from fallow field were the main
audience that these restaurants attracted.
In Bangalore both the restaurants are located in the center of the city. According to
the owners people travel from many different localities to visit their restaurants. The
loyalty of customers with the restaurants in Bangalore seems to be greater than the
customers of the restaurants interviewed in Manchester. Though this could be
attributed to the difference in experience of the restaurants compared, it is a
significant factor that should be addressed.
One reason why customers keep re-visiting the restaurants in Bangalore repeatedly

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55
could also be attributed to the loyalty discounts apart from the obvious reasons like
hospitality and quality of food. A discount of up to 15% is available for loyal
customers of Tandoor and a 6% discount is available for the loyal customers of
D sm ds. The owners of the restaurants in Bangalore feel that their customers are
loyal because of their consistent quality and hospitality over the year. Both the
restaurant owners in Bangalore have been chefs in the past thus allowing for an added
advantage of understanding the tastes and preferences of their customers better.
5.4.7. Student Discounts

Approximately 52% of the global population is under 30 years of age out of which a
large portion of them are students (Erik Qualman, 2014). The concept of a student
discount is popular in United Kingdom and is available for public transport, retail
stores and restaurants. Both the restaurants in United Kingdom have a student
discount available provided the student can produce a valid student ID. Jaipur Palace
gives a 15% erstwhile Sanskruti gives a 10% discount to students. Student discounts
are a great way to increase the number of customers visiting the restaurant.
The restaurants in Bangalore do not offer student discounts, as this trend has not yet
become popular in India. Bangalore has a large number of educational institutions
around the city and it would be a good strategy to implement student discounts to
increase restaurants sales.
5.4.8. Web Presence

The Internet serves as a popular platform for advertisement amongst the restaurant
industry. People are constantly looking for rating and reviews online before choosing
to visit a new restaurant. Sanskruti and Jaipur Palace have their own websites where
customers can view their menu, get directions to the restaurant, view photo galleries
and even give feedback. These websites are a good platform for promotion for the
restaurant and create a convenient option to give customers a general idea about the

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56
restaurant. Jaipur Palace has home delivery services, which are listed with a number
of websites like J s -E ,
2G and F m B
. These sites are very useful
in increasing sales and, in my opinion, create a major customer base via online order
from such sites.
The restaurant in Bangalore do not have a website for their restaurant. They tend to
utilize more traditional forms of customer retention like hospitality and food quality
maintenance but do not advertise as much as much as restaurants in Manchester.
There are a few online sites like J s -E in India as well but these sites are not as
popular in India when compared to the United Kingdom. Reviews and online ratings
are available as well but, since they rely purely on the
s m s experience, should
not always assumed to be positive in nature. D sm ds has home delivery options

but is not listed with any delivery site. If the restaurants in Bangalore could begin to
list their restaurants with online site like J s -E or Y mm B it could create
and alternative revenue stream for them as well.
5.5 Analysis of the amount of innovation used in the

traditional restaurant industry
From the interviews that were conducted a conclusion can be drawn relating to the
level of innovation used within the restaurant sector of the hospitality industry. The
overall innovation in restaurants especially traditional restaurant are low as compared
to fast food restaurants or large restaurant chains The technological innovation in this
sector was at its peek a few years ago but has started to decline and not many
improvements are being made in this field.
According to the interviews conducted most of the innovations in this industry are
related to either product or process innovation. When innovation is spoken about in
relation to an economy, somehow it is presumed to be a radical innovation or break
though innovation. Most of the innovations within this industry is incremental in
nature and are not enormous in size or impact. The large percentage of the economic
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57
growth that is contributed by the restaurant industry talks about its relevance and
importance although the innovations involved are mostly incremental in nature.
5.6 Analyze the future for the traditional restaurant

industry
The traditional restaurant industry is experiencing a growth spurt globally. There is
an increase in the amount of people that eat out which is also responsible for the
growth in the restaurant sector in general. In India, with the increase in per capita
income of the population as a whole, people are willing to spend more money on
eating out currently as compared to the past. The increasing number of people eating
out and the increasing amount of money they are willing to spend is a positive aspect
for the restaurants in general. The traditional restaurant industry is benefitting from
the aforementioned factors as well.
In the United Kingdom the population as a whole is becoming more experimental
with their food choice and is constantly trying to experience new cuisines. Traditional
restaurants are growing in scale throughout the United Kingdom but some of these
traditional restaurants often serve fusion food, which is passed off as authentic.
There are very few restaurants that actually serve authentic and traditional cuisine.
Fusion restaurants could be an alarming threat to the client base currently enjoyed by
authentic restaurants. People living within the United Kingdom might not have a
complete idea about traditional cuisine nuances, which could sometimes result in
compromise in the form of fusion food. The traditional Indian restaurants in United
Kingdom are also beginning to face some problems because of the strict immigration
rules. Indian chefs are unable to stay in the United Kingdom, which could be a threat
to the traditional restaurant industry.

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Chapter 6 - Conclusion
The conclusion summarizes the final results of the entire research into a few
paragraphs. The conclusion is defined as the section that gives a research or a report a
logical ending. The research questions are addressed in the first section of this
chapter followed by a brief description of the final results found after analyzing the
data collected from this research.
6.1. The answers to the research questions:
Why is it important to be innovative in the restaurant industry?

The level of competition in the restaurant industry is very high. Restaurants
need to keep innovating in regard to products and processes to ensure they are
able to retain their existing customers and also attract new ones.
Identify the best business strategies utilized by the United Kingdom and India in
the context of the Indian restaurant industry.
In the United Kingdom the traditional restaurants try and maintain an optimum
size in order to facilitate ease of management by the owner. These restaurants
cater mostly to vegetarian and vegan customers, which serve as a niche
customer segment in the market.
The Indian restaurants interviewed in India catered to a greater variety of
customers and were partnership or private limited companies unlike the sole
proprietorship restaurants in the United Kingdom. Thus enabling a greater
distribution of responsibilities reducing individual stress and allowing for
greater contribution towards the innovativeness of the restaurant.
From where do restaurants get new ideas to innovate? What role does competitors
play in influencing restaurants to innovate?
All the restaurants interviewed for the purposes of this study incorporate ideas
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59
generated from their owner/director and staff but most of the ideas are based on
their
s m s needs and requirements. Online reviews of customer feedback
as well as feedback using forms, suggestion boxes or directly approaching the

owner are an important source of idea generation for restaurants as well.
Competition within the entire industry is high but the restaurants in Manchester
are at an advantage because they serve only vegetarian and vegan customers.
The restaurants in Bangalore are at an advantage because of their long history
within the field and because of repeat business generated by loyal customers.
Can the best strategy from both the countries be implemented to create a new
successful model? If yes, explain how?
It would be very challenging to apply the best strategies of both the industries
together to form one model. Each country has its own social, economic and
cultural background, which might not be similar to that of the other. A few
practices could be incorporated from each respective industry but a
combination of the best practices from both industries to create a new model
would be extremely difficult. A few other problems that may arise are the
demographic differences, difference in cost of labor, raw material and taxes.
What is the direct relationship between the implementation of a new innovation and
the success of a restaurant?
Although some industries may completely rely on new innovations to survive,
for example the IT sector. The Traditional Restaurant industry however, is not
that dependent on radical innovation. Thus it is possible for the restaurant
industry to survive only on incremental innovations. New innovation is
definitely a beneficial feature for a traditional restaurant but if the quality of
food served is consistent along with a hospitable team of staff then the
restaurant can be said to be on the right track.

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6.2. A conclusion of the differences between the

traditional restaurants in India and the United
Kingdom
This section of the conclusion consists of the final observations related to this
research. There were a number of differences that were found after conducting the
interviews with the restaurant owners from Indian and the United Kingdom. Some of
the major differences between the traditional Indian restaurants in both countries
were:
Firstly, the number of customers visiting a traditional restaurant is higher in India as
compared to the United Kingdom. This difference is caused because the population in
India is much higher than the United Kingdom hence the competition experienced by
a restaurant is also is much greater. The difference in operational size between India
and United Kingdom makes it necessary for Indian restaurants in India to keep
innovating and expanding in order to remain competitive in the market. The
restaurants in United Kingdom are usually content with one restaurant and generally
do not aim for expansion.
Secondly, there is a big difference between the number of employees in the Indian
restaurants in the United Kingdom and India. On an average the restaurants in India
employ almost double the labor force as compared to the United Kingdom. The labor
employed in United Kingdom is usually more trained as compared to India. In my
opinion cost cutting in terms of labor is an innovation in itself, which is advantageous
to restaurants in United Kingdom.
Thirdly, there is a lot of importance given to hospitality and personal relations in the
restaurants in India. The owners have built a loyal customer following through the
years because of their service and personal attention given to customers. This ensures
repeat customer clientele visiting the restaurant. The restaurant owners interviewed in
United Kingdom had recently established their restaurants as compared to India

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hence a conclusion was ambiguous as to the existence of their loyal customer

following.
Fourthly, organizational innovation in India is a good way of managing the activities
of a restaurant. Both the restaurants in India are either a Private Limited Company or
a Partnership company. The more number of owners running a restaurant increases
the effort, innovations and creativity put into the restaurant. It becomes challenging
for a sole proprietor to manage a restaurant on his or her own. The restaurants in
India enjoy an advantageous position due to this aspect of their restaurants.
Lastly, the student discounts available in the United Kingdom are a good strategy to
potentially increase customer base (students) visiting the restaurant. The restaurants
in India only give frequently visiting customers a discount, which does not benefit
new customers especially those on a budget. Discounts are a good strategy used by
restaurant in United Kingdom to provide added incentive for customers visiting their
restaurants.
6.3. Limitations of the research

There were a number of problems, which had to be overcome during this research. A
few of the limitations found were Lack of resources and time - There was a period of three months, which was given
to complete this research. Within this amount of time, only a pilot study could have
been conducted. The time and resources were limited which restricted the amount
of data (both primary and secondary) that could have been collected. The number of
interviews that were conducted were also limited because of these factors.
Accuracy of information - there is no confirmation about the accuracy of the
information obtained. In the primary research conducted (interviews), some
restaurant owners might not have been willing to share personal information about
their restaurant, which could give rise to a few discrepant values and figures.
Disclosure of the exact business values may be harmful for the interviewees, which
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might prevent them from sharing information freely. The secondary sources like
articles from the Internet may not be completely reliable which could act as a
barrier to this research.
Miscommunication or misinterpretation of data - during the interview or analysis of
secondary information could be misinterpreted which could prove to become a
problem for the research. This could be rectified to a greater extent in a face-to-face
interview, as it is a more personal form of interaction, but could prove as hurdle for
the telephone based interviews as the degree of communication between the
interviewee and interviewer is reduced.
Comparison of two countries could be complicated- a comparison between the
United Kingdom and India could be extremely complicated because India is a
developing country erstwhile the United Kingdom is considered to be a developed
country. The various political, cultural and environmental features of both the
countries are not similar which could become a problem related to the research of
such a topic.
Only
one city from each country was used to collect data - the primary data
collected representing India and United Kingdom was done based on only one city
in each country. The generalization of the entire country and restaurant industry
cannot be done according to the interviews conducted in only one city. An idea
could be drawn for future research but the conclusion is not binding.
6.4. Solutions for the limitations

There are a number of limitations to the research mentioned that arose during the last
three months. These problems have tried to be minimized by Contacting few but reliable sources for the interviews to ensure the lack of time and
resources do not have an extremely adverse effect on the research. The
owners/directors of restaurants were interviewed in order to gain information,

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which is precise and reliable.

Maximum effort has been taken to ensure the data collected from both primary and
secondary sources are accurate to reduce problems relating to analyses of the
information.
The interview questions were framed in a concise and clear manner trying to
prevent miscommunication between interviewees and interviewers.
6.5. Future research

For future research to be more accurate and precise the limitations of this research
should be minimized. This could be done in the following ways:
By comparing sectors like the fast food sector and the restaurant chains which
usually have a greater level of innovation than the traditional restaurant sector.
The number of interviews that were conducted could be increased to obtain a
greater variety of data to be analyzed.
The primary data collection could also include questionnaires as a means of
obtaining customer perspective, which would give a well-balanced view into
the restaurant industry.
Lastly, when a comparative study is conducted between two countries in the
future, more than one city could be used to draw a comparison between the
entire restaurant industry of the country. Generalization of the entire country
based on information obtained from interviewees presented in one city might
not give appropriate results.

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And
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69
Appendix
Initially there was widespread dissatisfaction amongst customers with reference to
service provided by waiters/waitresses in restaurants. This gave rise to the idea of
wireless communication systems (IFI CLAIMS Patent Service, 2012) . It was the
responsibility of restaurant owners to ensure their customers were satisfied. A
number of restaurants have started to incorporate systems where customers have the
least amount of interaction with waiters. There are a number of patents which have
been granted in relation to this aspect of the Restaurant industry. Some of the popular
patents include:
U.S. Patent Number 5699039 consists of an electronic table pager and display
device, with a call activation switch incase a customer needs to contact a waiter
(IFI CLAIMS Patent Service, 2012).
U.S. Pat. No. 5,845,263 - This innovation is user friendly and shows full colour
images giving users the opportunity to enter their data using a keyboard. Full
screen images are shown to customers and this data could be transferred to the
kitchen in the form of an order. This system is presently employed in a number of
restaurants.
U.S. Pat. No. 5,907,275- This technology is used in drive-thru systems and fast
food restaurants.
It consists of an audiovisual interactive communication
between the customer and the person who takes the order. The customers use the
audio device which is transmitted to a attendant who takes down the order.
The wireless maitre d system is a new innovation which has tried to incorporate the
various features of other innovations, already in use. Small hand-sized pagers are
used by the waiters when customers need to communicate with them. This makes

And
Their innovations
70
ordering something from the menu or calling for the bill easier. The objectives of this
innovation primarily involve the creation of a two way communication between
restaurant personnel and customers. The other objectives of this innovation include
displaying the calorie count and health benefits of available food. This innovation
could be termed as an economical and dependable new innovation (Michael
Ottenbacher. et. al. , 2005).
Definition of diffusion
The rate of success or failure of restaurant chain is very unpredictable. A number of
fast food and restaurant chains like Mc. Donald's, KFC, Dominos Hard Rock Cafe
and TGI fridays have proved to be very successful on a global scale. Most of these
chains are proved to become popular among customers irrespective of which
nationality they belong to. But this is only applicable in ideal situations which might
not favour all such service industries causing the failure of some of these restaurants/
fast-food chains. Some of the reasons of their failure could be attributed to high cost
of real estate, non availability of site space, lack of funds or excessive government
regulations. In order for a restaurant chain to be successful it is important to ensure
that the d ff s
defined as mm
of
takes place. Diffusion of innovation could be

g innovation through certain channels over time among
members of a social s s m (Everett Rogers, 2003).

This journal written by Richard Carter talks about the diffusion of innovation of U.S.
restaurants and their viability internationally. It was compared to Australia and had
proved to be similar in structure. Quick Service Restaurants (QSR) like Mc.
D
ds, KFC and Red rooster had a 47% share of the restaurant market and 53% of
the share was held by Full-Service Restaurants (FSR) like Sizzler houses and fine
dining restaurants (Richard Carter, 1997). The most growth in the restaurant industry
that has occurred has taken place in the last 10-12 years.

And
Their innovations
71

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A comparative study of the Indian

Dissertation Supervisor: Professor Ian Miles

1.1 An overview of the industry

1.4 Chapter outline

Chapter 2: Literature Review

2.3 Service Innovation

2.4 Hospitality industry

Chapter 3: Research Methodology

3.2 Research objectives

3.3 Research design

3.4 Data collection

3.5 Research Questions

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

The United Kingdom

4.4. Detailed Findings from the interviews

5.1 Analysis the importance of traditional restaurants in everyday life

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

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

5.4. Analysis of the differences between traditional restaurants in

India and United Kingdom

traditional restaurant industry

6.1. Answering the research question

6.2. A conclusion of the differences between the traditional

restaurants in India and the United Kingdom

6.4. Solutions for Limitations

6.5. Future research

A comparative study of the Indian Restaurants in the

A comparative study of the Indian Restaurants in the

A comparative study of the Indian Restaurants in the

A comparative study of the Indian Restaurants in the

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

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

Further information on the conditions under which disclosures and exploitation

A comparative study of the Indian Restaurants in the

A comparative study of the Indian Restaurants in the

the year 2011 its total revenue amounted to $2.46 trillion

1.2. Background and present situation of the Curry

1.3. Background of the Indian Restaurant Industry in

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

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

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

1.4. Chapter outline

A comparative study of the Indian Restaurants in the

Chapter 2: Literature Review

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

innovation - is concerned with innovations regarding production of a new

innovation - describes new methods of production.

model - includes innovations related to a new market.

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

business and obtaining new sources of supplies.

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

gradually improve the systems within a restaurant subsequently improving overall

Radical innovations like technological innovation take a considerable amount of time

A comparative study of the Indian Restaurants in the

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

2.3. Service innovation

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

A comparative study of the Indian Restaurants in the

I.T Presence in Restaurant Industry

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

A comparative study of the Indian Restaurants in the

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

A comparative study of the Indian Restaurants in the