With four outlets at Indiranagar, JP Nagar, Brookfield and Rajajinagar, The Rameshwaram Café has acquired something of a following in India's Silicon Valley Bengaluru. While Rameshwaram Café started with two outlets in 2021, its founders say a decade of planning went into it. Late last year, there were news reports of each outlet making crores of rupees in turnover monthly. The founders prefer to maintain stoic silence on how much The Rameshwaram Cafés make, admitting only that they are doing well. (The café again made headlines when one of the former judges of TV show MasterChef Australia, Chef Gary Mehigan, had his Peak Bengaluru moment on a breakfast visit here.)
Rameshwaram Café will open its doors to diners in Hyderabad’s tech centre at Madhapur on January 19, 2024. Co-founders, and husband-and-wife duo, Raghavendra Rao and Divya Raghavendra Rao, spoke to Moneycontrol about Rameshwaram Café earnings, origins and outlets, including the latest one in Hyderabad, on the sidelines of Proficorn 2023, a forum for MSME business owners to share insights and learnings. Excerpts:
Bengaluru is seeing exponential growth in wealth and yuppie culture. What role do you think a café like yours plays here?
Bengaluru is a city with a lot of potential, as the population comprises youngsters who are always looking to explore more. And when something is presented well, has good quality and is at the right place, it becomes a plus point for a restaurant like ours. Bengaluru is a city that has people from different cultures and states. South Indian food is the only cuisine that connects this diverse population. About 70 to 80 percent of our customers are the youth and the café belongs to all states, we are here to represent South India.
Also read: Bengaluru: Top 10 places for all-day breakfast and dosas in the city
Divya, you are an IIM Ahmedabad graduate and a chartered accountant. Do you feel right at home among Bengaluru’s startup/corporate culture?
Yes, of course, I am from Bengaluru myself. I have been told by someone that if you find acceptance in Karnataka, the whole world will accept you. It was the right place for us to start as we are locally from here and we know the city’s environment and culture and we had a better hold on things to start with. We need to trust our potential and start something we believe in.
Given how quickly Bengaluru is changing (rents are up 30 percent in one year), what are the challenges and opportunities you see for a traditional (in terms of menu) cafe like yours?
Apart from rentals, prices of groceries, and salaries are also going up. Every year we will increase our prices slightly and that should take care of all the price fluctuations. Also, we work on a volume game. Only when volumes are sustained, can we withstand these kinds of price fluctuations. We service anywhere between 3,000 to 4,000 customers each day in each of our outlets.
Are darshinis likely to be the new coffee shops for start-ups in India or are you looking to capture a different segment?
Yes, for sure, as people are looking to eat good food without wasting time. We are comfortable in the QSR model and we can avoid unnecessary manpower and unnecessary expenses related to fine dining. We believe in the concept of serving food fresh. The minute a dosa is ready, it is served to the customer. It is easy to interact with the customer and they can see the food being made in the open kitchen. In that sense, the food speaks to the customer. Also, we want the customers who enjoy the food to come and we do not have any seating as such. In fact, we have a temple model in all our cafés and the Hyderabad café has an element of the Madurai Meenakshi temple.
Why Hyderabad after Bangalore?
We met the right people and team, who waited for a year-and-a-half for us, so this was a logical choice. Hyderabad is an IT Hub and we explored many locations in the city and eventually found that the location in Madhapur was the right fit. Hyderabad is part of South India, and we felt this was the next logical choice and everything fell in place as well.
What is your opinion on the impact of social media on food?
We take all views positively. Of course, when we see a negative review, we take it seriously and see what we can learn from it. Social media is helping us in the sense of showcasing our menu to the world. Likewise, we use social media to relay the message we want to convey. We believe that word of mouth is a great marketing tool. Today’s generation is very smart. They do not compromise on what they need and are willing to pay for good food service and good food. Having said that, our pricing is reasonable as even with Rs 100 one can have a good meal of idli, vada and coffee. Although our costing is high due to good quality ingredients, we have a thin margin, but our volumes make up for the same.
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