For some of India's oldest family-run restaurant chains, business is an oscillation between leaving legacy untouched and reinventing to stay relevant
Shivanna Sadanand first went to the Mavalli Tiffin Rooms (MTR) in Bengaluru 50 years ago, and has been a regular ever since. A lot changed in his life over time: He took a voluntary retirement from being the private secretary to former Congress minister HM Channabasappa, joined his family business of iron and steel; raised, educated and married off his two children. But even today, the 78-year-old dutifully spends his Friday evenings and Sunday mornings at MTR, catching up with friends, discussing life, politics, literature, and everything under the sun. Back in the day, he recalls, the group was even joined by prominent Kannada literary icons like Masti Venkatesha Iyengar and Shivaram Karanth.
Bengaluru’s food and beverage (F&B) scene has changed as well. Many restaurants have emerged in the vicinity of the historic Lalbagh Botanical Garden where MTR’s oldest outlet is located. India’s IT city has emerged as the country’s pub capital, with eateries flaunting a multitude of global cuisine options for its well-travelled customers. But nothing’s changed at MTR, believes Sadanand. “Even today, the masala dosa, made with dollops of ghee, tastes the same as it did in the ’70s. So does the filter coffee. Badam halwa continues to be served every Saturday, and the chandrahara on Sundays, which is deep-fried maida flour topped with sweet liquid made from khoa,” he says.
Sadanand recollects getting to know MTR’s affable second-generation owner Harishchandra Maiya, who took over the business from his uncle Yajnanarayana Maiya. The latter was a cook from South Canara who founded the restaurant in 1924. Sadanand also remembers being uncertain about MTR’s future when Harishchandra’s daughter Hemamalini took over in 1999 after her father passed away following a prolonged illness. “Today, she has not only managed to run the Lalbagh Road outlet, but has also launched many others without ever changing the original MTR experience,” he says.
This “spirit of MTR” is always at the core of every decision she takes, Hemamalini Maiya tells Forbes India. Along with brothers and fellow business partners Vikram and Arvind, she has taken MTR to eight other locations in Bengaluru, apart from outlets in Udupi, Singapore, Dubai and Malaysia.
The restaurant also has countrywide brand recognition because of the eponymous MTR Foods (owned and managed by Norwegian conglomerate Orkla) that sells processed and packaged food products like breakfast mixes, ready-to-eat meals, spices and savouries. Apart from being co-brands, Hemamalini says, the two entities do not affect the other’s business. Uncle Sadananda Maiya, who managed MTR with her father, split from the restaurant business in 1994 to take over MTR Foods. It was sold to Orkla in 2007.
Like MTR, India’s hospitality industry landscape is dotted with age-old family-run restaurant chains, many inching close to a century or older. They are finding presence in cities and countries other than the ones in which they were launched, with third or fourth generation family members revving up expansion and chasing scalability through family-owned or franchise outlets. Across these brands, however, the overarching golden rule seems to be the same: Keep refreshing to survive competition, without letting go of the brand’s legacy. And each of these restaurant chains strikes that balance in its own way.
Same but Different
Take the case of Mumbai-headquartered Kailash Parbat and Bhagat Tarachand, or Delhi-headquartered Moti Mahal. All three were small restaurants started by refugees from Pakistan who settled in India after Partition. They expanded just to an outlet or two (or three) until the second generation. As the third generation took over, the brand remained the same, yet different.
“My goal was to launch 100 Moti Mahal outlets across the world before the restaurant turned 100,” says Monish Gujral. His grandfather Kundan Lal Gujral (who is seemingly credited with the invention of tandoori chicken and butter chicken) founded Moti Mahal in the 1920s in Chakwal, Pakistan, before relaunching in Delhi post-Partition. Soon, his tandoori cuisine found regular patrons in leaders like Pandit Jawaharlal Nehru, Indira Gandhi, former Prime Minister of Pakistan Benazir Bhutto, and former US Presidents Richard Nixon and John F Kennedy. Today, the restaurant is two years short of turning 100, but Gujral has already reached his goal.
Moti Mahal (renamed as Moti Mahal Delux during a brand upgradation in the 1970s by second-generation owner and Monish’s father Nand Lal Gujral) is now present in 18 Indian states, apart from outlets in Oman, Tanzania, Saudi Arabia and New Zealand. Over the years, more than 20 new dishes have been added to the original menu.
With a single-minded focus on expansion, the company opens between eight and 12 franchise outlets per year, with an average annual growth rate of 10 percent. Gujral believes in experimenting with restaurant formats, and invests between ₹40 lakh and ₹60 lakh in each franchised fine dining space and ₹10 to ₹15 lakh for the kiosk model. The models take two and one year respectively to break-even.
“We have nine models for the brand,” says Gujral, explaining that formats are tweaked depending upon the demand and the demographic. For instance, the Moti Mahal Tandoori Trail is a franchise option offering specialty cuisine in metros, while smaller cities in Punjab, Haryana, and Jharkhand (like Karnal, Panipat and Deoghar, for example) have multi-cuisine outlets serving Indian, continental, Chinese and Mexican food.
“People in smaller cities or towns prefer to step out as a family, and considering the lack of food options there, multi-cuisine restaurants work better than specialty outlets,” says Gujral, who has also leveraged Moti Mahal’s legacy to experiment with the quick service restaurant (QSR) format in shopping malls. “The food court models include sub-formats that specifically serve either tandoors, kebabs, chaat, Chinese, Mexican or Continental food.” These offerings are removed from what Moti Mahal originally stood for, admits the restaurateur who is also a chef. “But it is important to keep changing with time to keep the legacy alive.”
Kamlesh Mulchandani concurs with Gujral. When the third generation owner of Kailash Parbat took over in 2004, the restaurant had just three outlets, all in Mumbai. Fifteen years on, they have 52, out of which 35 are in India and the rest across countries like Singapore, the US, Australia, Canada, Qatar, China, United Kingdom and Thailand.
The menu has also been reinvented over the years. From simple pani puris, dahi wadas, kulfi faloodas and lassi, the restaurants now offer dishes like pav bhaji and Amritsari chole fondues, nachos, chipotle palak chaat, KP Long Island Iced Tea made with pani puri water, and jeera whiskey sour that contains a hint of ajwain.
In Portugal, Mulchandani is now launching Kailash Parbat alongside another brand ‘Veganpati’ in an attempt to attract the emerging global vegan market. Here, one would find khichdi-flavoured risottos, burgers made with beetroot bread and sambar made with olive oil. According to Mulchandani, moving away from the core of what his restaurant conventionally stands for channelises growth beyond boundaries.
“This way, we remain Indian in terms of our offerings, but cater to an international customer base. In this competitive market, we have to constantly be on our toes, keep an eye out for the market and grow according to what does well,” says Mulchandani, who runs Kailash Parbat along with brothers Amit and Jai. “Today, we see a year-on-year growth between 15 percent and 18 percent. When a brand comes attached with a lot of expectations, it is our responsibility to do whatever it takes to keep it successful.”
Gujral, on his part, plans to look inward. He wants to take the Moti Mahal brand to small towns in Uttar Pradesh and Uttarakhand like Hardoi, Rudrapur, Sitapur and Sultanpur. “These are aspirational markets. I plan to convert already-existing family operations that need professional intervention to Moti Mahal outlets. This way, the brand will reach the farthest corners of the country, with lower overheads and investment. It will also provide employment opportunities in rural areas.”
(This story appears in the 01 March, 2019 issue of Forbes India. To visit our Archives, click here.)