Rameshwaram Cafe Success Story – Complete Case Study

Rameshwaram Café is quite synonymous with famous brand outlets like KFCs and McDonalds in Bangalore. Really? Yes, ask a person living in Bangalore for the last few years and you will know the fame of Rameshwaram Café.

Do you know what the most fascinating fact is?

Rameshwaram Café is hardly three years old! Launched in 2021, it gained massive popularity in such a short span. Surprisingly their success is much more than just its popularity. Look at some of the mind-blowing facts about Rameshwaram Café-

• Daily bills (Total): 7,500 (approx.)
• Monthly turnover: Rs.4.5 crore
• Gross Profit Margin: 70% (approx.)
• No. of outlets opened in just two years: 4 outlets

All these facts boil down to one obvious question- 

“How did Rameshwaram Café attain remarkable success?”

Well, the answer lies in its smart working and remarkable strategies. In this case study, we will decode the success story of the famous “Rameshwaram Café.”

Let’s begin!

(A) A Brief Overview of Rameshwaram Café 

Rameshwaram Cafe is a quick-service restaurant (QSR) outlet that has become a hidden gem in Bengaluru. It has garnered popularity and a loyal customer base, contributing to its tremendous revenue growth. The cafe’s owner has shared some insights into their success story.

When you step into The Rameshwaram Cafe, you’ll discover a distinguished South Indian quick-service restaurant chain, operating under the umbrella of M/s. Altran Ventures Pvt. Ltd. Here, they prioritize crafting freshly made dishes with top-notch ingredients, authentic recipes, and strict hygiene standards. Every order is served piping hot to ensure a delightful dining experience for you.

Let’s have a brief overview of the company-

(B) Rameshwaram Café: How did it start?

The origin of Rameshwaram Café began with the innovative mindset of Divya Raghavendra Rao and Raghavendra Rao. Being a postgraduate student of IIM Ahmedabad, Divya Raghavendra Rao (Founder of Rameshwaram Café) she always envisioned making the traditional South Indian cuisine famous. She aimed to compete with global chain restaurants like KFC and McDonalds.

Quite ambitious. Isn’t it?

Seeing our traditional cuisines becoming famous globally is a proud feeling among all the Indians. After all, that’s our soft power! 

Coming back to the story. The goal was quite massive. Also, its execution wasn’t that easy for CA Divya Raghavendra Rao. She needed the guidance, partnership, and support of someone having remarkable skills and experience in the food industry. Fortunately, she met the right person i.e. Raghvendra Rao.

Here comes the main role of Raghvendra Rao. He had a humble food cart in Seshadripuram and  20+ years of experience in the food industry.

Together they launched “Rameshwaram Café.”

(C) Why did they name their startup “Rameshwaram Café”?

This is the most common question of the folks. They chose the name “Rameshwaram” to pay tribute to our late president Dr.APJ Abdul Kalam’s birthplace.

As per the founders, the place Rameshwaram is famous for its rich cultural heritage and the native of the missile man of India. So, logically they wanted to represent authentic South Indian food with the famous name “Rameshwaram” all across the globe.

All right! So, what makes this café so famous?

Well, there are numerous factors that contributed to the massive fame of this famous Café. Go through the next and you will find out soon!

(D) Working Strategies: Why is Rameshwaram Café so famous?

The food mavens are keen to know- Why is Rameshwaram Café so famous? How did it become famous? The answer lies in its efficient working strategies-

(D.1) Consistent & Good Quality of Food

To ensure uniformity throughout all their chains, Raghavendra and Divya implement stringent guidelines pertaining to food quality and ingredient selection. One noteworthy rule is the prohibition of baking soda in their recipes. They exclusively employ pure ghee, avoiding any blending with oil. Artificial colorings or flavorings are categorically excluded from all their dishes, a practice that upholds consistency and elevates the quality of every item on their menu.

(D.2) No Refrigerators- Freshly made food

Rameshwaram Cafe places a strong emphasis on the freshness of its cuisine. The founder proudly states that none of their establishments utilize refrigerators. Instead, their dedicated staff prepares fresh batches of batter and chutneys multiple times daily to maintain a consistent and delightful taste experience. Whether you visit in the early morning or late at night, you can always count on enjoying exceptionally fresh food.

(D.3) Strategic Location

No matter how good the quality of food you provide, if your store is away from the customer’s reach, then you can’t meet your targets. That’s why the strategic location of your store plays a crucial role in the success of your shop/café.

Similar is the case with Rameshwaram Café.

The cafe is situated in a busy area with high footfall, which has undoubtedly aided in attracting customers. As per the latest reports, Rameshwaram Café processes nearly 7,500 bills per day. That’s how the strategic location of Rameshwaram Café helps in its high footfall and large customer base.

Currently, the café is located at the following places-

• 119, 12^th B Cross, 19^th Main, J P Nagar 2^nd Phase, Bangalore, Karnataka (560078)
• 2984, 12^th Main, Hal 2^nd Stage, Indiranagar, Bangalore (560008)
• 52, Outer Ring Road, J P Nagar 2^nd Phase, Bangalore, Karnataka (560076)
• 1, Green Avenue, IYPL Road, Brookfield, Bangalore, Karnataka (560037)

(D.4) Well-trained Staff

According to the founder, a crucial step before launching any new outlet is the meticulous training of the staff. They are trained to master the art of food preparation and to effectively handle the cafe’s operations and diverse clientele. Presently, Rameshwaram Cafe boasts a team of more than 700 employees, with 10 core team members playing a pivotal role in the cafe’s achievements.

(D.5) Long Working Hours

One remarkable aspect that catches our attention when it comes to Rameshwaram Cafe is its late-night operation, extending until 2 AM. There’s a certain charm in enjoying piping hot dosas and idlis during the wee hours, which resonates with the people of Bangalore. The Rameshwaram Cafe’s unique hours have indeed captured the affection of its patrons.

(D.6) Focus on Customer Satisfaction

Rameshwaram Cafe values making customers happy the most. They work hard to provide a pleasant dining experience, and excellent service, and maintain high cleanliness standards. This strong dedication to keeping customers satisfied has built a loyal group of people who keep coming back to the cafe.

(D.7) Sustained and Growing Sales Figure

Sujeet Kumar, one of the co-founders of the B2B marketplace Udaan, recently discussed the cafe during a podcast. He mentioned, “Take Rameshwaram Cafe, for instance. They generate around 7,500 bills daily, operating from compact 10 by 10 or 10 by 15 square feet stores. This establishment records a monthly revenue of approximately Rs. 4.5 crore, with an annual turnover of about Rs.50 crore.”

(E) Marketing Strategies: Key to Organic Growth

Do you know, that Rameshwaram Café makes the least investment in marketing its brand? Despite that, it still managed to grab a large customer base and that too loyal customers.

Quite surprising! Isn’t it?

Well, the following factors helped Rameshwaram Café to establish its large customer base-

(E.1) Word-of-mouth marketing

The success of Rameshwaram Cafe was primarily driven by organic word-of-mouth, without the need for paid bloggers or outsourced marketing. Most of the reviews that you see in the social media posts about the café are made by satisfied customers. Those customers give genuine feedback which plays a key role in word-of-mouth marketing. 

Although, the official Instagram handle of Rameshwaram Café also posts pictures of their food. But that’s hardly 5% of the total posts about the company. The rest 95% of reviews are provided by the customers.

(E.2) Brand Name- Rameshwaram Cafe

Here, the name “Rameshwaram” also played a significant role in establishing the fame of the café. As discussed above, the term “Rameshwaram” signifies three important things-

• The rich culture of South India
• Birthplace of former President “APJ Abdul Kalam”
• Authentic South Indian food.

That’s why the customers are naturally attracted to the café. Also, their orders are served within 15-20 minutes despite the huge crowd.

(E.3) Usage of pure and organic ingredients in food 

As you have read above, Rameshwaram Café emphasizes the importance of using pure ingredients in their food. As per their claims, they avoid using artificial colors and flavors. These features make the café unique and set apart from others. That’s why the usage of pure & and organic ingredients in food acts as a key marketing strategy aiding in organic growth.

(F) Rameshwaram Café Franchise Cost

In most cases, the franchise cost for any business is influenced by various factors such as the location, market potential, the chosen business model, and the available floor area. 

However, to secure approval as a Rameswaram Cafe franchise owner, you would typically need an initial investment ranging from ₹10 lakhs to ₹15 lakhs for a minimum floor area of 200 to 250 square feet.

This initial investment encompasses expenses like the franchise fee, equipment and machinery costs, interior and exterior decor, and various other miscellaneous expenditures.

Let’s go through the breakdown of Rameshwaram Café’s franchise cost-

Is the Rameshwaram Café Franchise Profitable?

Yes, as of now, it is a profitable franchise in the food industry. You can see it through its astonishing profits and revenue. As per the reports, it earns around Rs.4.5 crores in a month. That’s how it can be roughly estimated that each business outlet of the café generates over Rs.1.5 crore.

(G) Challenges faced by Rameshwaram Café

Rameshwaram Cafe faced various challenges in its journey. One of the constraints preventing the cafe from serving more customers could be the time it takes for the batter to ferment. This could limit the speed at which they can prepare certain dishes. Additionally, like any other business, they faced general challenges that are common in the restaurant industry.

Some of them are described in the following table-

However, despite these challenges, Rameshwaram Cafe has emerged as a successful venture, with a monthly revenue of 4.5 crores. The owner of Rameshwaram Cafe, CA Divya, has also provided business tips for aspiring entrepreneurs, emphasizing the importance of perseverance and finding ways to overcome obstacles.

(H) Future Plans of Rameshwaram Café

Currently, Rameshwaram Cafe operates four branches in Bangalore, situated in J.P Nagar, Indiranagar, Brookfield, and the latest addition in Rajajinagar. In terms of future plans, the founders shared that Rameshwaram Cafe is venturing into international expansion with its inaugural outlet in Dubai. 

On the domestic front, their upcoming establishment is set to launch in Hyderabad, with a specific focus on expanding in tier 1 cities.

Furthermore, the founders expressed optimism about Rameshwaram Cafe’s ambitious expansion plans within the next five years. She envisions the presence of Rameshwaram Cafe branches not only across North and South India but also on the global stage.

You must note that the figures related to the revenue, profit margin, and customers stated in this write-up are based on the latest reports. However, the founders haven’t disclosed the exact financial figures of Rameshwaram Café.

Note: When it comes to cafes, various startups related to tea have emerged in the Indian market. If you want to know about such startups in detail, then go through the article “Chai Startups of India.”

(I) Rameshwaram Cafe Bast: Undergoing Investigation

On a fateful afternoon of 1st March 2024, Rameshwaram Cafe in Bengaluru’s Whitefield area witnessed an explosion leaving nine people injured. This incident was caused by an improvised explosive device (IED) around 1 pm and resulted in burn injuries, with one woman undergoing plastic surgery for treatment.

As the investigation progressed, CCTV footage revealed a man entering the cafe with a concealed bag, sparking diligent efforts by authorities to identify the individual. Bengaluru police promptly registered a case under the Unlawful Activities (Prevention) Act and the Explosive Substances Act in connection with the explosion.

During this time, Chief Minister Siddaramaiah expressed confidence in the investigation, pointing to the multiple CCTV recordings available to the investigative teams. Detentions followed as part of the probe, with four individuals picked up from Dharwad, Hubballi, and Bengaluru, undergoing questioning.

The investigation explored various angles, including potential rivalries, to unravel the motive behind the blast. DNA clues, such as a cap abandoned by a suspect near the blast site, suggested an early link to an ISIS module from the state’s Shivamogga region.

This incident remained a matter of concern, and authorities were committed to bringing the perpetrators to justice. The once-bustling Rameshwaram Cafe now stands as a grim reminder, urging you to recognize the necessity for vigilance and security measures in public spaces!

(J) Key Takeaways: What did you learn from Rameshwaram Café Success Story?

Here comes the final and most important part of the Rameshwaram Café case study i.e. the key takeaways.

Go through the table given below and you will know what you learned from the Rameshwaram Café case study-

These lessons highlight the importance of a customer-centric approach, efficient operations, and the potential for rapid success with the right strategies and dedication.

Thank you for dedicating your time to this write-up. We sincerely hope that you found it informative and gained valuable insights from the Rameshwaram Café success story and case study. Your engagement is greatly appreciated!