Encore Hotels to focus on 'value' restaurants, institutional business

Encore Hotels Pvt Ltd, a Rs 45 crore hotels and restaurants chain, is redoing its business strategy with more ‘value’ restaurants, institutional sales and deliveries, to survive during the recession.

The company is planning to set up 20 ‘value’ restaurants in India under brands ‘Rajdhani Thali’ and Rajdhani Snackles.

It recently inaugurated its first restaurant in Kolkata and is planning at least three more in the city over the next two years.

According to Ronald Fernandes, general manager - sales and marketing, Encore Hotels, “We are planning more value restaurants because that is the format which has not seen any dip in business, while all our fine dining restaurants has seen 25 to 30 per cent decline.”

“We are planning at least two more Rajdhani Thali in Kolkata in two years to take the total to three. We are also looking at increasing our institutional business for supplies to schools, offices and residences as well as more value options at Orissa and Siliguri in the east,” Fernandes said. “Currently, our institutional business contributes less than 10 per cent to our turnover, and includes supplies to schools and hospitals. We also hope that our delivery business would see a 20 per cent business growth,” he informed.

So far, Encore’s institutional business supplies to Billabong School (Mumbai), hospitals such as Fortis Hospital (Mumbai), and Aditya Birla Memorial Hospital (Pune). Encore lunch boxes cost between Rs 75 and Rs 115.

While Rajdhani Thali sees an average per cover of Rs 125 - Rs 225, its fine dining restaurants commands an average per cover of Rs 375-Rs 450.

“We are also looking at introducing more Rajdhani Snackles at railway stations, multiplexes, for on-the-go consumption. Here our average per cover is close to Rs 50,” Fernandes informed.

Encore Hotels is primarily into food and beverages services with its brands Rajdhani Thali, Rajdhani Snackles, Zest, Revival, and Encore Foods. Currently it has 55 units under these brands operating in 17 cities.

“In pursuit of a global vision, Encore plans to set up 250 outlets of Khandani Rajdhani, 30 multi–cuisine business & leisure hotels and 40 other catering services in the near future,” Fernandes added.