Case Solution

{ Raju Omlet

Presented by: Sana Baloch

 Q.1. Critically analyze what the customers’ service expectations are from
restaurants such as Raju Omlet? How did these expectations develop?

At the moment, customers have a broad choice of eatery services to choose from and
service quality conditions certainly persuade a restaurant competitive advantage. Service
quality is a significant aspect for restaurants. Raju Omlet targeted the college students,
males who live away from their families and women who come along with their families
to discover the variety of foods available here, thereby creating awareness of this place to
others and this helps in knowing more of the local cultural foods. The prices of their
foods were quite reasonable when comparing to their competitors. Raju Omlet faced
competition on the basis of serving and not product offering. The sense of serving of
Bombay Chowpatty, Chappan Bhog, Bikanervala, Kulcha King and Mumbai Restaurant
were all similar to Raju Omlet, except that all these eateries had outdoor catering, dine-in,
take-away and home delivery options. However, the prices at these restaurants for an
average meal for two were quite expensive when comparing to Raju Omlet.
Mostly customers of all classes, the high-class, middle class or lower income people were
able to enjoy the high quality of food provided here. The Customers usually expect a
good service from any restaurant they go to. Similarly, if the staff of Raju Omlet creates a
good rapport with their customers, people will want to come more often to Raju Omlet.
Three components that contribute to overall customer satisfaction with any restaurant
are good food, good service and a pleasant setting. All of these factors have influenced
the customers and because of the Restaurant’s innovative ideas and its uniqueness, Raju
Omlet has become popular in a short span of time.
 Q.2. Formulate the Unique Selling Points of Raju Omlet. What brand image did
Raju Omlet develop during its start-up period and how was this image
established?

Raju Omlet’s Unique Selling Proposition or Unique Selling Point (USP) was its specialization in egg preparations.
The menu was exclusively made up of eggs in diverse forms – scrambled, boiled, shredded and half-boiled. The
founders of Raju Omlet made it a point to retain the ambience of humble roadside eatery through furniture and
utensils such as petro-max lamps and kitschy kettles and cups, so that this restaurant matched the magnificent
beauty of a city like Dubai. Many egg-inspired quotes and brightly colored walls added to the exceptional style of
Raju Omlet.
During the start-up period, like any other business ventures, Raju Omlet too faced many problems. Many internal
and external factors affect the business. Raju Omlet Restaurant faced the problems in the starting mainly due to the
political factors alone. Mr. Rajiv wanted a gas cylinder connection as the prices are fixed and will be much easier
and feasible to handle. However, the Dubai Municipality insisted that he should opt for a pipeline connection
itself. It also includes inflation. Raju Omlet has been very economical in terms of the prices of each dish. The main
target audience was Indians and Pakistanis as they have similar eating habits. This proved to be a advantage for
Raju Omlet, as they are many Indian expatriates in residing in Dubai. Raju Omlet provides their customers with
local indigenous touch by serving them with variety of both local and Indian flavors. They also create a very
comfortable ambience by having a countryside settingat the prime location of Al-Karama. In case of technological
aspects, research and development areas are explored thoroughly. The best way to know what consumers think
about the organization is to create an online page and put in a suggestion column. Raju Omlet was able to create an
excellent brand image from the very beginning itself due to the positive word-of-mouth publicity. Mr. Rajiv like
most of the entrepreneurs believed in few religious beliefs, one being; inaugurating the cash box on an auspicious
day. As the new restaurant came into being, customers started to flock in and since Rajiv did not want to disappoint
his customers, he ensured that every customer that came ate to his or her heart’s content. The customers found this
concept interesting, as for now they could eat as much they want without paying anything. Many customers came in
just to see if this was actually being carried out. All the customers were pleasantly when they were served free food.
For ten days, this practiced had continued and hence, Raju Omlet was able to establish its name.
 Q.3. What would it take at this restaurant to ensure that customers are highly
satisfied? How valuable is highly satisfied customers in the restaurant business
and why?

Ans .Customers views and suggestions are very valuable not only to restaurant business but also to all
other business ventures. As far as Raju Omlet is concerned, customers are their first priority. Mr. Rajiv,
founder of Raju Omlet has quoted, “We offer fresh eggs cooked with high quality cooking ingredients and
provide value for money”. And true to his words, he is totally against providing low-quality products to
their customers. He constantly began searching for high-quality products for his customers. He started
sourcing fresh eggs and signed an agreement with the local poultry farm, Al-Jazeera Poultry, even though
he had to face more expenses almost up to 30% more than other suppliers. By doing so, he has been able to
provide high-quality products at reasonable rates. An average price for a meal for two at Raju Omlet is Dh
45 Raju Omlet has been successful in preserving the interests of their customers.

In order to ensure whether Raju Omlet’s customers are satisfied with their services, they have to undertake
certain public relations and advertising campaigns, so that they can understand what the customers feel
about Raju Omlet and also what more they have to do in order to remain the customers first choice in the
list of restaurants. A PR campaign strategy normally includes statement of objectives, situation analysis,
specification of target audiences, messages to be communicated, specific program elements to be used,
timetable and budget and finally details of the program evaluation. Raju Omlet, provided advertisements
at two different radio channels have played an important role in creating awareness about their special
offerings. Raju Omlet, by the medium of radio told the customers various health benefits of eating eggs.
For this campaign to be successful, Rajiv and Nakul (father & son duo of Raju Omlet), chose the correct
radio channels and prime times for their advertisements. Hence, a very positive response was got from the
public. They reached in large numbers for the high-quality food, good services and cosy atmosphere.
 Q.4. Critically analyze what points should Raju consider before introducing the
home delivery service? Do you think they should go ahead and introduce it, why
or why not?

Ans .Raju Omlet currently follows“No home delivery option” as the founders, Rajiv and Nakul are against the idea of
letting the customers consume it’s offering by paying the same price for a diminished quality. While packing away
the food stuffs, there is a drop in the fresh quality assured. Even when other restaurants have home-delivery options,
Raju Omlet chose not to indulge in this practice, as for them quality is of main concern. This restaurant needs to
streamline their offerings. That is they should just stick to a few food which is in consumer demand, and most
importantly, they need to work on improving the quality of these foodstuffs
In Raju Omlet’s case, it keeps in mind to mix the roadside handcart eatery of Rajubhai’s omelet experience into the
modern life of Dubai. If Raju Omlet considers introducing home-delivery service, there are many points to be kept in
mind.Home-delivery means providing the customers the eatery ordered at their footsteps. There are both advantages
and disadvantages while taking into consideration home delivery service. Few advantages being; by using the food
delivery service, one can save time. In this fast phased world, most of them don’t have time to cook or drive all the
way to their favorite restaurants. Another benefit of home delivery is that, once quality of food and speed of delivery
is assured, one can regularly chose home delivery options and also get special discounts. However, there are a few
disadvantages of home delivery too. One of them being, providing the food with supreme quality. For this, they will
have to take on a vehicle, so that food can be transported to the customers.Since, egg preparations comes under the
head of potentially hazardous products (products that consist in whole or in part of mil or milk products, which are
capable of rapid growth of infectious microorganisms), the vehicle used for transporting must maintain temperatures
at 140 degree Fahrenheit for hot foods and 41 degree Fahrenheit for cold foods during transportation. Another
disadvantage is that, sometimes the delivery man may bring in the wrong order which in turn will lead to a lot of
time and energy being wasted. Instilling the home delivery service, may also prove to be expensive. Thus, a few
customers are bound to find these prices not reasonable. One major disadvantage of home delivery is that restaurants
will have to add artificial flavoring to their products so that they still look fresh. This can prove to be awful for health.
Furthermore, if Raju Omlet tries its hand in home delivery, they will also have to keep in mind the hot climate of
Dubai. Hence, delivery will be possible only in few destinations.
 Q.5. Rationalize whether Raju Omlet should purse a product development, market
development, diversification, or market penetration strategy when considering their
potential expansion into other parts of the UAE.

 Ans.United Arab Emirates is considered as one of the safest place to live in and is known for its trade and
business. As mentioned in the case study, “Dubai is called the “Melting Pots of Cultures’ and is home to people
over 200 nationalities.”Nearly 1.75 million Indian nationalities reside in UAE, which makes it the largest
expatriate community.UAE is also a tax-free country, which makes it even more attractive. United Arab
Emirates comprises of seven emirates: Abu-Dhabi, Dubai, Sharjah, Ajman, Umm-Al-Quwain, Ras-Al-Khaimah
and Fujairah. UAE is a mixture of advanced infrastructure, tax-free income, job opportunities, security etc.
Hence, it is important to expand to other parts of UAE. All the Emirates are well connected through roads, and
people staying in one emirate travels to other for work and sight-seeing. Currently, Raju Omlet has only one
branch, which is in Dubai. Therefore, opening eateries in other emirates can prove to be beneficial to the
restaurant. Raju Omlet , if they try to bring in diversity by preparing dishes of chicken, vegetable etc. they might
lose their uniqueness. Hence, product development is not a suitable strategy to be considered while preparing to
get larger. Market development the Raju Omlet case study are to be believed, currently, the restaurant has only
one branch at Al-Karama, Dubai. Hence, to get bigger, Raju Omlet can use the market development strategy to
spread out their business venture. They can open up new branches in different parts of Dubai alone or also other
Emirates. Diversification since Raju Omlet’s USP is egg preparations only, diversifying into a new product is not
a valid choice as then they will lose their distinctiveness. At the same time diversifying into new market is a
pertinent alternative. Keeping in mind the popularity of Raju Omlet, market diversification will enhance their
current profits if they are opening new branches at various locations. Market penetration strategy for instance,
Raju Omlet could increase the regularity of purchase through excessive advertising promotions that will give
consumers an explanation to go there more often. They can also boost amount per purchase occasion through
“value meals”. By following these marketing actions they can gain customers from their competitors. Raju
Omlet can adopt price reductions, expanded delivery in the existing marketplace, sales force endeavour or
promotions could be the additional ways to implement market penetration strategy. Consequently, potential
growth is only the way forward for Raju Omlet. Rajiv & Nakul might find the expansion process hard but as the
risks are more, the payoffs and profits are greater too.