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HBR CASE STUDY

Expand the
Menu?
A restaurant chain seeks to broaden its appeal without losing its identity.
by Sandeep Puri, Kirti Khanzode, and Alison Beard

This document is authorized for use only in Prof. Anil Philip's Strategic Management Subject-B-(2022-23) at Xavier Institute of Management & Entrepreneurship (XIME) from Jul 2022 to Jan
2023.
 EXPERIENCE
Case Study
Expand
the Menu?
A restaurant chain seeks to broaden its appeal without losing
its identity. by Sandeep Puri, Kirti Khanzode, and Alison Beard
R
ohit was juggling eggs. Smooth,
brown ovals—in one hand or
the other for a split second,
and then up, up, up in the air. First
there were three, then four, then
five—Where are they coming from?
he wondered—but he kept his arms
moving and the loops going, and
the crowd in front of him cheered.
Where am I? Who are these people?
He wanted to look around but knew
he couldn’t take his eyes off the eggs.
Then, suddenly, they changed into
different things: a chicken leg,
a courgette, a tomato, a potato, and
a bag of lentils. He tried to keep
juggling, but his fingers slipped on
the slick chicken skin, he tossed
the lentils too low and the potato
too high, and everything came
crashing to the ground. He looked
down, but the mess wasn’t what
he expected. All around him were
broken eggs—dozens of them—
whites and yolks oozing out through
splintered shells.
He woke with a start—sweaty,
heart racing—and looked from side
to side. To his left was Anaya, still
SAM PEET
sleeping. To his right, his nightstand
and alarm clock; it was almost
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This document is authorized for use only in Prof. Anil Philip's Strategic Management Subject-B-(2022-23) at Xavier Institute of Management & Entrepreneurship (XIME) from Jul 2022 to Jan
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midnight. Rohit sank back into his
pillow, breathed for a moment, and
started to chuckle—quietly, so as not
Sandeep Puri to wake his wife. He was the founder
is an associate and CEO of Yolk-ay, a popular United
professor at Arab Emirates restaurant chain that
the Institute of
Management specialized in traditional Indian egg
Technology in dishes but was, as of that morning,
Ghaziabad, India. considering expanding its menu. The
Kirti Khanzode
is an associate dream was pretty easy to interpret.
professor at
the Institute of Ten Years Earlier
Management
Technology in “Dad, you have to try this.”
Dubai. Alison “Try what, Vikram?” Rohit asked,
Beard is a senior putting down the Sunday paper. He’d
editor at Harvard
Business Review. been staring at an ad for the hotel
where he worked as a bell captain,
wishing that “superior service” had
been listed alongside “luxury spa,
five-star restaurant, and rooftop pool.”
He felt underappreciated, and so
did his team. At least he had the
morning off. Anaya was making
breakfast—egg oats upma—
and it smelled delicious.
“Put this in your palm
and squeeze as hard as
you can,” Vikram said.
“Because I want yolk all
over my hands?”
“It won’t break. I promise.”
2023.
Rohit was skeptical, but his
19-year-old son rarely initiated
conversation nowadays, so he did as
he was told. He squeezed—with all his
might. But he couldn’t crush the egg.
“See?” Vikram said. “The shape
helps it withstand the pressure.”
“Very interesting,” Anaya said,
putting breakfast on the table.
“Indeed,” Rohit said, smiling and
setting the egg aside.
“I miss your food, Ma,” Vikram
said, mouth already full. He had
started university the previous fall
and was home only on weekends.
“I can’t get a good upma to save my
life—never mind masala omelets
or egg curry. You should open a
restaurant next to the dorm. Or even
a handcart like the one that taxi
driver in Vadodara took us to when
we were visiting Dadu and Nanu last
year. Remember how good those fresh
omelets were? I’m telling you, there
are so many Indians on campus. My
friends and I would be there every day.
So would the professors.”
“Those egg dishes are easy,” Anaya
said. “You could learn to cook them
yourself. Isn’t there a kitchenette in
your dorm?”
“No time,” Vikram replied. “Class,
cricket, parties…” His mother frowned
at the last point. “And soon there
will be work,” he added hastily. “I’m
 EXPERIENCE
applying for a summer internship
at Sony in Dubai Internet City. Now,
there’s a place you should open
HBR’s fictionalized a restaurant. It’s crawling with
case studies transplants from Mumbai, Chennai,
present problems Delhi, Bangalore—all in their twenties,
faced by leaders
in real companies all away from home. Everyone’s
and offer solutions coming for the jobs, just like you and
from experts. This Dad did. You’d make a fortune.”
one is based on
the HBS Case Rohit hadn’t touched his eggs.
Study “Raju He was too busy listening to his son
Omlet: Expanding outline the business idea that would
in the United Arab
Emirates” (case no. change their lives.
W15515-PDF-ENG),
by Kirti Khanzode Five Years Earlier
and Sandeep Puri,
which is available “We did it, Dad—three new
at HBR.org. restaurants in three months. I know
you thought I was crazy when I
suggested it, but we couldn’t let
Tikka House and Raja Cooks steal
such prime retail spots from under
our noses. There will be literally
hundreds of new workers moving
into those areas over the next year,
and we really need to be the ones
increasing our supply to meet
that demand.”
“Did you learn that in your business
school classes?” Rohit teased.
He felt so proud of Vikram he
thought he might burst. When they
opened the first Yolk-ay restaurant,
five years before, his son was a
scrawny college student, welcoming
customers at the door with flyers
he’d printed at a local copy center.
Today, armed with an MBA from the
Emirates Academy of Hospitality
Management—which he’d earned
while working as a cashier, cook,
restaurant manager, supplier liaison,
and, finally, COO—he was a
full-grown man and a
full-fledged partner in
the business.
They now had five
locations, including the
three new ones, spread
across Dubai, Abu Dhabi,
a and Ras al-Khaimah, in
3 Harvard Business Review June 2016
This document is authorized for use only in Prof. Anil Philip's Strategic Management Subject-B-(2022-23) at Xavier Institute of Management & Entrepreneurship (XIME) from Jul 2022 to Jan
office and residential areas with high
concentrations of Indian, Pakistani,
and Bangladeshi expats. The
restaurants were known throughout
the Emirates for having the best
egg dishes west of Okha, made with
local farm-fresh ingredients, priced
affordably, and always served with
a smile, for breakfast, lunch, and
dinner. Both Rohit and Vikram could
recite the pitch in their sleep, they’d
given it so many times to financial
backers, customers, and journalists.
Thanks to hit radio ads—developed by
Vikram and featuring his and Rohit’s
voices touting the health benefits of
eggs—the father-son duo had even
become minor local celebrities: expat
entrepreneurs made good. Yolk-ay’s
2010 turnover had been two million
dirhams. With the expansion, they
hoped to double that amount this year.
The restaurant they’d just opened,
near the Mall of the Emirates in Al
Barsha, had been packed all day.
“Where to now?” Vikram asked.
“Home,” Rohit said. “Your mother
is waiting for me, and I’m sure
Gretchen is waiting for you.” Vikram’s
German-born wife of one year was
pregnant with twins and due in just
a few days.
“I meant, which locations should
we start scouting next? There is
huge growth in Sharjah. Tikka
House just opened there—a little
too early, in my opinion—but I’ve
heard rumors that both Infosys
and Tata are considering moving
significant numbers of employees
there next year. I could put Arundhati
on it.” Vikram’s college friend was
working at Yolk-ay, focusing on new
business development.
“I appreciate your enthusiasm,
Vikram, but let’s make sure the new
restaurants are running smoothly first.
We don’t want to spread ourselves too
thin. The quality has to stay the same
across all our outlets. That’s what
2023.
we’re known for. That’s our promise
to customers.”
“I promise it will, Dad. I’ll see to it.”
And over the next five years, he did.
That Day
“Dadu, Dadu.” Rohit’s grandsons
rushed into his arms. They were
turning five today and had asked to
have a party with their preschool
friends in the original Yolk-ay, in
Dubai’s Al Karama. Because their
birthday fell on a Monday this
year, the one day of the week the
restaurants were closed, Vikram
had asked Rohit, and of course Rohit
had agreed. The boys were the light
of his life, and no matter how many
Yolk-ays there were—they’d opened
the eighth, in Sharjah, a year before—
this was still his favorite. It felt like
home, especially this morning, since
Anaya was cooking in the kitchen.
He’d told her he would ask the staff to
come in and handle everything—his
employees were like family, after all—
but she’d insisted.
“Your chefs might cook for every
20-something in the Emirates
nowadays, but they’re not going
to cook for my grandsons on their
birthday,” she’d told him.
Vikram was right behind the
boys, carrying presents, which he set
down on one of the café tables. “Are
you ready for 10 more kids running
around this place?” he asked.
“Of course,” Rohit replied. “They’re
the next generation of customers!”
“At least we have an hour until they
come. Does Ma need help? Ah, never
mind, Gretchen is already on her way.”
Indeed, Rohit’s daughter-in-law had
given him a quick kiss on the cheek
and then darted behind the counter
and through the double doors into
the kitchen, shouting “Boys, be good!”
as she went.
“Is she talking to us or to them?”
Rohit joked.
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Case Study
Teaching Notes
Sandeep Puri and Kirti Khanzode teach the case on which as well as they’d need to. No one Vikram ducked his head
this is based in MBA marketing, services marketing, and retail
wants cold eggs.” sheepishly. “They said they were
management courses.
“Actually, people do want us to do happy with the menu and probably
WHAT DREW YOU TO THIS STORY? home and office delivery. According wouldn’t change their routine—but
Many of our students and friends regularly visit Raju to our customer surveys, they want Dad, remember that those are our
Omlet. We had a chance to meet with the founder it desperately. They’re getting it from most loyal customers, people who
to discuss the challenges of expanding without every single one of our competitors. really love their eggs. Imagine if we
compromising the unique value proposition. But you’re right—maybe they don’t did a broader survey of all quick-
recognize the reduction in quality that service restaurant diners—everyone
HOW DO YOU KICK OFF THE DISCUSSION? would come with the convenience. who goes to Tikka House or Raja
We ask about critical success factors in the
The chefs have been adamant on that Cooks or KFC. If we asked them
restaurant industry generally and in the UAE in
particular. Then we prompt students to discuss point, and I’m not going to argue with what would bring them to Yolk-ay
customer expectations, marketing communications, them, or you, about it again.” more often, you know they’d say
and potential growth strategies, including home “Good,” Rohit said. more offerings.”
delivery, geographic expansion, and menu changes. “So let’s talk about the menu. What “We’ve always said that if you
can we add to spice things up?” try to do everything, you won’t do
WHAT DO YOU HOPE THEY’LL TAKE AWAY? “The chefs in the test kitchen were anything well.”
We want them to understand the importance of working on some new preparations “I don’t want us to do everything—
branding to small and medium-size businesses, to yesterday—a recipe one of them just a few more things, enough to
evaluate the strategic choices available to Raju
got from his great-aunt, another get people talking about us again,
Omlet given customer preferences, and to work
from a cookbook that just came out enough to make sure this business
out how entrepreneurial firms create and sustain
competitive advantage. in America.” keeps growing, for me, for you, for
“Egg dishes?” your grandsons.”
“Of course,” Rohit said. “Yolk-ay “What does Sunil think?” Yolk-ay’s
“I brought some trains to keep is eggs. Our brand, head chef was
them occupied,” Vikram said, pulling our marketing, our a traditionalist;
the toys out of a rucksack. genesis—eggs.” Rohit couldn’t
“Great, let’s play.” Tell us what you’d “Only eggs, for imagine
“Actually, Dad, I was hoping we do in this situation. ever and ever? suggesting this
could talk business for a second. Have Go to HBR.org. Couldn’t we type of expansion
you thought about the discussion we consider adding to him, much
had with Arundhati last week?” some vegetarian and less insisting he
“Sure—we’ve hit a dead end with chicken dishes, execute it. There
geographic expansion. That’s fine. We with poultry would be huge
can focus on the existing restaurants and produce sourced implications for the
for now.” from the same farms kitchen staffs—new
“Yes, but turnover has been flat for as our eggs? We already have solid ingredients, equipment, and stations;
the past few months, and we seem relationships with suppliers, and additional training; a whole new way
to be losing market share to Tikka they’d love to do more business with of working together.
House and to Western competitors us. They’ve been begging us for years.” “Actually, we asked him to do a
like KFC. Of course, we still have “Of course they have. It would small, unofficial market test on Friday.
loyal customers who love us for the mean more money for them.” Don’t be mad—it was impromptu, just
familiarity, but we don’t seem to be “More for us, too, I think. something Arundhati and I thought
winning new ones. The excitement Arundhati and I asked a few questions up that morning, a tiny experiment.
isn’t there anymore. That’s why about this in the last survey. A full We brought him the ingredients
Arundhati and I think we need to start 48% of respondents said they would for those samosas he made for last
expanding in other ways.” come to Yolk-ay more frequently and quarter’s company party, and he
“Are you talking about home spend more each time if we had a grumbled at first but finally agreed to
delivery again? I thought we’d more varied menu.” make a batch to hand out as samples
agreed that our dishes don’t travel “And what did the other 52% say?” to the lunch crowd. People loved

June 2016 Harvard Business Review 4

This document is authorized for use only in Prof. Anil Philip's Strategic Management Subject-B-(2022-23) at Xavier Institute of Management & Entrepreneurship (XIME) from Jul 2022 to Jan
2023.
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them—couldn’t get enough. And

Sunil was grinning from ear to ear.”
“So he wants to expand the menu
too?”
“Not exactly. He talked my ear off
about the havoc it would wreak on his
systems. But I think we could bring
him on board if we had your support.”
“I don’t know, Vikram. Can we
talk about it at the office tomorrow?
I thought we were here to eat cake and
watch a clown do some juggling.”
“Sure, Dad. Sleep on it. We’ll
talk tomorrow.”

That Night
Rohit was still at the party, and the
twins were opening the last of their
gifts, tearing into identical boxes
wrapped in yellow paper and tied
with red bows. They were quite
large—Had Vikram bought them those
monster trucks?—but once the boys
had them open, it appeared that only
white tissue paper was inside. They
pulled out sheet after sheet after sheet,
scattering them across the table, until
finally, simultaneously, they reached
in deep and pulled out their prizes. In
Reza’s hand, hoisted above his head,
was a perfect brown egg. In Wolfgang’s,
a chicken leg. Both boys were beaming.
Rohit woke again with a start and
turned to the alarm clock: 1 am. Two
dreams in one night about the same
thing: Vikram’s proposal. But what did
they mean? Stick to eggs, or not? 

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Should Yolk-ay
expand its menu
offerings?

5 Harvard Business Review June 2016

This document is authorized for use only in Prof. Anil Philip's Strategic Management Subject-B-(2022-23) at Xavier Institute of Management & Entrepreneurship (XIME) from Jul 2022 to Jan
2023.