Instructions

Girirajan an unemployed youngster from Kumbakonam, Tamilnadu, visited Singapore where his school friend worked as software engineer. In Singapore, Girirajan realized that there were a lot of Tamils in “Little India” area. He soon assessed that there were very few restaurants serving authentic Tamil food and decided to set-up a restaurant “Giri’s” in “Little India” serving authentic Tamil food in traditional banana leaf. Customers loved the food. Very soon word spread about the good quality food served in the traditional way. Girirajan expanded operation recruiting 10 employees, all Tamils.

Six months later, Girirajan realized that a lot of Kannadiga and Telugu customers started visiting the restaurant along with their Tamil friends. One day, a Kannadiga customer looking for Devangere Benne Dosa suggested that it may not be a bad idea for Girirajan to serve Karnataka and Andhra cuisines along with Tamil.

With time, the popularity of the reastaurant kept soaring. As a result, a lot of Malays, Indonesians and Chinese started visiting the restaurant. His software engineer friend advised to cater to customers of all nationalities. Despite his desire to go grand, Girirajan realized he did not have enough money to get extra space anywhere in Singapore and banks were also reluctant to lend.

One day, while assessing the business, he realized that the restaurant had 90% occupancy rate during peak hours and 40% during the non-peak hours. Both figures were increasing with time.

Question 38

Which of the following options would be most suitable for the growth of the business?

Solution

Girirajan is facing issues with scalability because of a lack of funds. Since he does not have to resources to expand right now, it would not be a very good idea to include some of the dishes on the menu,  as this move can be taken out of proportion and can be seen as discrimination.

He should focus on his current dishes and try to utilize their full potential by improving the quality he is currently offering. This, in the long run, can provide him with the required funds to expand the menu and scale his business.

Thus, the correct answer is C.


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