Rameshwaram Cafe is a well-known South Indian restaurant franchise with locations across Bangalore. The restaurant is well-known for its tasty and authentic South Indian cuisine, including idli, dosa, vada, and sambar. The restaurant has received worldwide appreciation for its outstanding breakfast and lunch offerings, which appeal to both vegetarians and non-vegetarians with a broad variety of scrumptious options.
On May 7, 2023, the world came to know that the 10/10 cafe in India which is earning Rs 4.5 crore per month by doing idli and dosa surveys and even if their expenses are in lakhs, their profits are in crores. Keeping only 3 things in mind, on top of that we will collect some proofs that whether this is real with example which is in your city, you do not even know.
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The Rameshwaram Cafe earns in crores
Sujit Kumar, co-founder of B2B marketplace Udaan, recently spoke about Rameswaram Cafe in Nikhil Kamarkar’s “WTF is E-Commerce” podcast that “If you see Rameshwaram Cafe. They cut 7,500 bills a day. One store is hardly 10/10 or 10/15 square foot. Does Rs 4.5 crore business a month and clocks around Rs 50 crore a year. They also make decent margins. Around 70 per cent gross margins”.
You can estimate the earnings by seeing the crowd. Every month the earning of this cafe is 5 crores. In a year, this cafe does business of more than 50 crores.
Who is the owner of Rameshwaram Cafe?
Raghvendra Rao a Mechanical Engineering graduate who has 20 years of experience in food industry has started Rameshwaram Cafe with his wife Divya Raghvendra Rao who has degree from IIM.
How Rameshwaram Cafe Started?
Let’s go to 12th Main Road, Indira Nagar, Bangalore, where a huge crowd of people will be waiting for their turn to come. After his acquittal, smoke would be rising from his plate as if someone had put hot steam on his hands. The lingering scent of Filter Coffee and a soft idli in your hands will tell you that you have reached The Rameshwaram Cafe.
In 2021 Raghavendra Rao and Divya Raghvendra Rao opened their 2 outlets inside bangalore and their founders tell that Rameshwaram cafe Dr. A.P.J. Tribute to Abdul Kalam ji, one thing you have noticed, it was launched in 2021, that means they have kept their strong growth from the beginning.
The scope of south Indian cuisine has always been in south India, no matter how many compositors there are, like in their case their compositors are very well-known brand “Vidyarthi Bhavan” which has been in existence for 80 years.
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How Rameshwaram Cafe is profitable from the beginning?
Rameshwaram cafe works on a QSR Module i.e. Quick Service Respond and in local language it is also called “Darshinis” whose job is to serve people more with minimum menu items, low cost, quick service, No Extra sitting, and casual environment to serve maximum value.
Quick service allows that maximum crowd can be easily managed, here service is not considered as a priority, service means it is good if you come and take your order yourself.
So Rameshwaram cafe is making its QSR food chain so strong here by taking care of 3 things.
Time Targeting
They have not targeted the people, they have targeted the time, for example, Rameshwaram cafe is located in 12th main road, indira nagar, where people come out of their homes from 5:30 in the morning, not to walk, but to earn money, So guess who would be making breakfast.
Cafe’s official timing is from 6:30 am to 1 pm, whereas if we come to North India or see many normal restaurants, they consider afternoon to night time as their peak time and there they target Customer’s Mood and Free Time.
The concept there is very simple, if the customer is free, then only he will come to eat and only then he will order, then open at the same time when the customer is free, but Rameshwaram cafe did exactly the opposite, they targeted the busy time, not the free time of the people. .
Let me tell you, if this time-zone was a little higher or lower, then Rameshwaram cafe could have suffered a big loss, let’s understand this.
If you open Rameshwaram Cafe at 10:00 am then you will loose around 55% working customers because they leave to their offices and workplaces 2 hours before due heavy traffic in the Indira Nagar main road.
And If we start Rameshwaram Cafe at 1:00 pm to 9:00 pm timing then you will be able to capture only 32% of working professionals due to the traffic people feel depressed, anxiety and hurry to reach home.
So, this is a new marketing tactics called Time Targeting and it is very important in the business.
Location Targeting
Rameshwaram Cafe is located on one of the busiest main road of India and serves people and this became the reason for their closure in 2022, due to traffic jam and single use plastic waste, the local authorities forbade them and got them shut down But on the demand of the people it was started again but now without single use plastic.
The location of Rameshwaram Cafe is divided into 3 categories.
- Open face entry and side seating
- L-shaped facing and 2 way Entry
- Landmarking
They have chosen such places where people stop even against their wish. You will definitely see the casual atmosphere of Rameshwaram Cafe but its open front where there is no need to open the door like you will see in Burger King, McDonalds, KFC but not here. Here you can take direct entry and place your order.
This open front gives them this opportunity that their customers who are they must come and see once. And most of the sittings you will get to see on the side so that people can see from the open front, now you must be saying what is the big deal in this, everyone does this but for example CSB (Chai Sutta Bar) and MBA Chaiwala prefers sittings in front of their entry. Wherein Burger King, McDonalds have side entry and front facing seating
Second, you will find some of their outlets in L-Shaped, they have opened one cafe at the end of the road where they get to see the benefit of 2 way entry i.e. 2 front entries. And one more thing is seen in their outlets, their Landmarking. For example, some of their outlets are found on the just side of petrol pumps, so that the families who come to get petrol, they definitely go there.
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Self Serve Methodology
In Rameshwaram Cafe, placing your order is very simple and convincing. Here, you have get an online dashboards where you can choose an place your order by yourself. This provides flexibility to them and due to this you get quick service even in their peak time.
By the way, it is not that only Idli and Dosa are sold here, Biryani is also very famous here. And they also have their own recipes which will be known only after going there.
Recognized the Power of Social Media
He recognized the power of social media. Social media has a big role in making his business a hit. Even today, photos of customers are taken outside Rameshwaram Cafe everyday and then posted on Instagram and Twitter. The monthly income of the cafe is Rs 5 crore and the annual income is Rs 50 crore.
Apart from all this, Remshawaram Cafe gets free marketing from social media mostly from Instagram. That why, there is no need for any tech-savvy. People come, make their videos, tag them and they mention those videos, they have made their Instagram pages and they get marketing for free.
Conclusion
If you go to Bangalore and do not try idli-dosa or filter coffee at Rameshwaram Cafe, then your trip is not complete. The filter coffee and idli-sambar here are quite famous. You can guess the popularity of this cafe from the fact that whether it is storm or rain, there seems to be a long line of several kilometers to eat here. The crowd of people outside the cafe is so much that people will be seen eating sitting on the ground.