STRATEGIC INSIGHTS : A CHINESE FOOD JOINT WHICH NEVER TOOK OFF

Mumbai’s Churchgate Railway Station is a busy place. It lies on the southern end of the Western Line of Mumbai suburban rail network and connects Mumbai’s prime office areas like Nariman Point with the suburban regions of Andheri-Borivali. Most people like me, unable to afford an apartment closer to office (it costs upward of Rs.50,000 per month in rent for a 300-500 sqft apartment) live in the suburbs and undertake a daily commute to Churchgate and back. Just like me, there are lacs of people who arrive at Churchgate station every morning, many of them still looking for a quick breakfast option. Similarly, during evenings most people returning from work, keep vigil for appropriate snacking options to gain enough strength to undertake the harrowing train commute back home.

True to the entrepreneurial spirit that has come to define Mumbai, a number of small and big eating joints, stocking right from humble Vada-pav to slightly more up market Pizza, line the main hall of the station catering to the demand of commuters looking forward to grab a quick bite. One such joint used to be a Chinese fast food joint which closed business a few months back. This post is about the Chinese fast food joint  which replaced it.

Taste of China (TOC), the joint in question,  started renovating the shop immediately after the previous occupants vacated it. They adopted a snazzier and more sophisticated decoration theme than the previous firm. The walls were painted in bright red replete with drawings of Chinese temples and dragons outlined in gold. Red Chinese lanterns hung from the ceiling to complement the interior Chinese themed décor. Chair, tables  and a small cashier section, all done in bright red colour also found their appropriate places inside the shop. The side of the shop which faced commuters was made up of glass with outlines of two dragons who had their tongue stuck out, possibly intentionally done to signify that the food served inside is delicious enough. A big signage was placed above the glass doors announcing the arrival of “Taste of China”.  And last but not the least, the menu too seemed promising, it had everything from spring rolls to a plate of Hakka noodles with Manchurian balls in thick Schezwan sauce.

I still remember the day TOC threw its launch party. Many colorful people were inside its doors enjoying the fare, some sort of puja ceremony was also underway. It was a big day, for the owner and his employees. Incidentally, it was also the day when I first got interested in TOC, which will not come as a surprise to many who know me well. However, this time around my interest was purely academic. “This joint will fail miserably, the only thing which remains to be seen is what actions they take (if any) to avoid their imminent closedown.” I told myself right on the day of the launch.

Its over two months now since the launch, and even though TOC has now  hired a North Eastern girl for the cash counter to fully complete its Chinese 'look', I have not seen (ever) more than two or three customers sitting inside TOC at any given moment. In fact most of the times there is not a single customer inside.  This, when a neighboring Frankie (egg roll) stall has a waiting line of more than 10 customers at any given moment (during evening peaks 6PM-9PM).  Since Mumbaikars are almost as crazy about Chinese as Delhites are about Moghlai, the absence of  customers at TOC was something unusual. Certainly TOC was doing something terribly wrong which prevented customers for visiting the store even once – not even out of just plain curiosity which generally brings customers to a newly opened shop.

Well I don’t mean to brag here, but I knew it then and I know it now as to why TOC has been a failure right from the beginning. I was even tempted a number of times to go and explain to them the things which they were getting wrong. But the realization “Anything received free of cost is never valued” would soon dawn upon me and I would pass the store every day without any interference.

Yesterday, I saw a “20% Discount on all food items” board hung outside its doors. Patience and money seem to be running out faster than I had anticipated. Unless they begin corrective actions actions, TOC it looks, will have to wind up. Should I tell them what’s wrong with their strategy? I leave that decision to you reader. Given below are my justifications for why I feel that TOC never really stood a chance –

·     RULE BROKEN 1 - What is being offered and is it relevant?  What they are offering is basically decent quality Chinese food. But what the customer wants is a decent quality fast food (Chinese or otherwise). No one really plans to stop and enjoy a chinese dinner on a railway station. A customer simply wants a filler for the next two hours, that’s it. And yes, they may indeed have products which match with customers need for a filler – but hey who knows about it ?

·     RULE BROKEN 2 – Is the cost structure in line with customer’s requirements? They invested huge sums in creating the right décor, when the important factor for the customer, all the while, was limited quantity of good food, which came really really fast (he has a train to catch buddy, remember?).

·     RULE BROKEN 3 – Glass doors! You are kidding right? Any food which comes out fast seldom has doors or walls around it. It’s a perception we all hold due to being consistently conditioned to believe it.  Samosas, Pakodas, Burger, Pastry, Pattice, chat, paanipoori etc.etc. are all get served at lightning fast speeds and not a single vendor selling these products will put a door in front of his customers. Food served inside closed doors is special (not fast) and takes time to be served. Everyone, including the customers at Churchgate station are aware of this fact.

·     RULE BROKEN 4 – Do you display your key products? TOC did not even place a single picture of the actual fare. TOC is a new joint and therefore most customers would experience some dissonance while deciding to pay it a visit. By placing images of the food (fast food) items, TOC could have helped lessen customer’s cognitive dissonance thereby increasing the probability of their visit. It is for this reason that intelligent marketers make some portion of the cooking area visible to the customer - Anyone who has visited a Mc Donalds store will know exactly what I am talking about.

Now, whenever you plan on starting a business, you know whom to consult- Right? 

YF-IThink