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Shri Bhaskar K. Shetty Editor Editorial Board Shri Sudhakar Y. Shetty Shri Shashikant Shetty Shri Sukesh Shetty Published by : Smt. S. Suchitra Presto Advertising 301, Crystal Apartments, 1st Marine Cross Lane, Marine Lines, Mumbai 400002 Tel. : 22072714 / 9619611315 prestoads@gmail.com On behalf of : Indian Hotel & Restaurant Association (AHAR) B-2, Wadala Shriram Industrial Estate, G. D. Ambekar Marg, Wadala, Mumbai : 400 031 Tel.: +91-22-2417 1818 / +91-22-2417 3030 E-mail : aharmumbai@gmail.com Director Operation : Jayaram N. Shetty

04 From Editors Desk

Contents

06 From the Presidents Desk 08 From Hon. Gen. Secretarys Desk 10 Destination India 14 Quick Mantra for Protability
............... by Mickee Menon

Publishers Note

............by Sushila Sharangdhar

e have great pleasure to be associated with AHAR for bringing out this wonderful product. We feel this magazine will be of immense value to the Hotelier community and help them to understand the latest happenings in hospitality industry. We gratefully acknowledge the efforts of all committee members of AHAR for supporting and encouraging us by making contributions to the magazine in order to make it a success. I hope that future issues of the magazine will be more useful and interesting. We will make all efforts to provide the association members with the right information and a platform to project their ideas and interact with each other with greater zest and fervor. Feedback at prestoads@gmail.com Smt. S. Suchithra

19 AHAR in action 20 Magical journey of entrepreneurship 29 AHAR in Media

............Mr. Jaya Chadu Suvarna

30 Hospitality industry needs introspection 32 B2B

............by Ramachandran N. V.

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From Editors Desk

Wishing all our readers a Merry Christmas and a very Happy New Year. Its time again for the Annual General Meeting (AGM) of AHAR which is scheduled to be held on Wednesday the 19th December 2012. AGM is not just another meeting or just a formality. Its more of an event keenly awaited by the hoteliers of Mumbai to discuss issues involving their business. The preparation for the AGM is going on full swing. Shri Arvind Shetty, Chairman of the AGM Committee is leaving no stone unturned to see that the function is a grand success. Have you ever wondered that in this time of recession and slow down why global players of Hospitality industries, be it Hotel or Restaurant chains are attracted to India? Top International Fund Companies are eager to invest in the hospitality sector in India. Its Destination India for the international hospitality as they see huge potential in the business here. This issue covers an inspirational story of Shri Jaya C Suvarna, CMD of Jayaleela Corporation Pvt. Ltd. who is a leading hotelier, generous philanthropist, shrewd banker, able administrator and a well-known social worker all rolled into one. A man who came to Mumbai at a tender age of 14 years, like many other leading hoteliers featured in the past issues of this magazine, with a dream for better future and rose to become not only one of the top hoteliers of repute in Mumbai but also the undisputed leader of his community . The term of Shri Sudhakar Y Shetty as President comes to an end. He has taken AHAR to a greater height with his persistent approach to keep a rapport with the powers that be and the bureaucracy which helped resolve any matters with ease. The achievements of AHAR during his tenure as President need no elaboration. The mild mannered and soft spoken hotelier who has a corporate background has shown many a times that he could be an assertive leader and showed who the boss was. I would specially like to thank him for giving me a free hand in publishing this magazine. Happy Reading!!! Bhaskar K Shetty Editor

AHAR delegates meet Chief Minister

and Central exchequers by way of fees, charges etc but also will be able to generate more employment. He also thanked Shri Ranjit Kamble and Shri Suresh Shetty for their support in arranging meeting and having a fruitful discussion. Advisor Shri. Santosh R Shetty who brief the CM on behalf of AHAR, felt that the CM receptive to the suggestions and gave a patient hearing. CM discussed about amending the outdated laws and assured to take immediate action to resolve the matter. Advisor Shri Chandrahas K Shetty who was one of the delegate that met CM said that the government has realised the importance of tourism and the need to involve organisations like AHAR in the process of making new laws to suit the present condition and abolish archaic laws which ind place in the statute since British Raj and has lost its relevance. The continuous rapport that AHAR has maintained with the various concerned ministries and bureaucracy made the government take it seriously. The impact of the meeting with CM was the immediate constitution of a High Power Committee as requested by us under the chairmanship of Shri Amitabh Rajan, Chief Secretary, Home which will study the current 70 regulatory and licensing conditions and try to curt them down to fewer than 5 [TOI-28/10/2012]. The Committee has been asked to submit its report within 3 months. The Panel will have secretaries of Police, Excise, Home, Urban Development, Tourism, Labour and FDA. As per direction of the Chief Minister, Shri Satej Patil, Minister of State for Home had convened a meeting of AHAR and the Police authorities to discuss about the decades old Police acts and need of amendment at his of ice on 8th of November 2012. High ranking of icials from Police and Excise along with representatives of AHAR attended the meeting and submitted the list of main grievances with Police Department. Shri Satej Patil heard from both sides and was very positive in his approach. He said he will forward his pragmatic report to the Chief Minister.

delegation of AHAR led by Shri Sudhakar Y Shetty, President, Shri Shashikant Shetty, Hon. Secretary, Shri Gangadhar Shetty,Vice President, Shri Santosh R Shetty & Shri Chandrahas K Shetty, advisors met the Chief Minister of Maharashtra Shri Prithviraj Chavan on 5th October 2012.Shri Ranjit Kamble minister for Tourism and Shri Suresh Shetty Minster for health also attended the meeting The delegates discussed in detail the harassment and the dif iculties faced by the hotel and tourism industry due to the decades old Police and Excise rules, which are still followed. The delegates convinced the Chief Minister about the need for modi ication of the Police and Excise rules enacted 60 years back to suit to the present conditions, so that many irrelevant, duplicate rules are removed or replaced and the problems faced by the hotel and tourism industry is removed. The delegates represented that by initiating such modi ication both hotel and tourism industry will grow especially in Mumbai and other important places of Maharashtra. This will also result in increase in revenue besides providing employment to lakhs of people and also support a number of ancillary industries which are providing various logistic supports to the hotel and tourism industry. The delegates presented a memorandum highlighting the grievances to the Chief Minister. The main points were [a] Request for removal of PPEL/RC [b] Request for removal of Permit and demarcation [c] removal of BMC license in lieu of the latest FSSAI license issued by FDA and [d] High Power Committee to discuss the grievances of Hotel/ Restaurant industry on regular basis. President Shri Sudhakar Shetty said that the delegate was able to convince the Chief Minister about the genuine grievances and hoped that looking at the positive attitude of the Chief Minister, he may act positively in the larger interest of the hotel/Restaurant and Tourism industry, which contributes crores of rupees to the local body, State

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From the Presidents desk

Dear Members, I am happy to address you all through this magazine. This will be my last address as President of AHAR. Looking back at my journey as President during the last 2 years, it gives me immense pleasure and pride that we were able to move forward maintaining dignity and tempo of our beloved Association. It could be possible through our sheer determination and sincere efforts with the unstinted support of our members in spite of all constraints and hardships the entire industry facing. The last 2 months were of hectic activities. We were able to meet the Honble Chief Minister of Maharashtra Shri Prithviraj Chavan on 05.10.2012. We had a detailed discussion about various matters affecting the entire hotel and tourism industry. We submitted gist of the grievances and explained to the Honble Chief Minister point wise. On behalf of AHAR and myself, I sincerely thank Shri Ranjit Kamble, Minister of State for Tourism and Shri Suresh Shetty, Minister for Public Health for joining us in the discussion. The Chief Minister was very practical and had assured that the matter would be taken up early for redressal. Our main demand of modi ication of decades old Police and Excise Rules to suit the present day scenario and situation was very well taken. The immediate impact of the meeting with CM was the constitution of a High Power Committee as requested by us under the chairmanship of Shri Amitabh Rajan, Chief Secretary, Home which will study the current 70 regulatory and licensing conditions and try to curt them down to fewer than 5 [TOI28/10/2012]. The Committee has been asked to submit its report within 3 months. The Panel will have secretaries of Police, Excise, Home, Urban Development, Tourism, Labour and FDA. Further, as per direction of the CM Shri Satej Patil, Minister of State for Home had convened a meeting with AHAR delegates and Police and Excise of icials to discuss about the decades old Police and Excise Act on 8th November 2012. After he heard from all sides he said that he will forward his pragmatic report to the Chief Minister. We also met the Joint Commissioner of Police [Law & Order], Shri Sadanand Date and had a very cordial meeting. The main grievances of the hoteliers in Police matters were also presented to him. He assured that he would do the needful. We also had an opportunity to meet the man of action Shri Satyapal Singh, Police Commissioner of Greater Mumbai and apprise him of few decade old rules, resulting in harassment to the hoteliers. His response was positive and we are hopeful of initiation of action in this regard. We understand that in many hotels, the of icials of MCGM-Health Department are checking, verifying the kitchen, hotels etc in spite of the hotel is now covered under FSSAI License. The same has been brought to the notice of the Joint Commissioner of FSSAI and we have also sought clari ication regarding the authority of the FDA and MCGM in this regard. I request all members to renew their membership and also help the Membership Enrollment Committee and the VPs to achieve their targets by bringing more members to AHARs fold, which is the voice of Hotel Industry in this metropolis. As the date of the 33rd AGM is approaching very fast, I seek co-operation and support of each and every member of AHAR in canvassing for Stalls, Sponsorers-Co-sponsorers of the event. I invite each and every member to attend the AGM in full strength and make this mega event a grand success. I would like to take this opportunity to thank all our Of ice Bearers, Advisors, Committee Chairmen, Committee Members, each and every Member for their un linching support and ever obliging Of ice Staff for their whole hearted cooperation during my tenure as President. The challenging moments and pleasant memories will always cherish in my mind. Wishing you all a Very Happy and Prosperous New Year in advance. With Seasons Greetings. Sudahakar Y Shetty President

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From Hon. Gen. Secretarys Desk

Greetings of the Seasons to all Members December is the beginning of the New Year and not the end of the old one. In the course of this year, we have campaigned for several causes. We have created a situation where the government was forced to sit up, listen and then ultimately call us for a one on one discussion with the CEO of our state. This happens only when every ordinary member of AHAR empowers himself and takes up issues on his personal level. The association will protect those who follow the law of the land. Remember, the association cannot always ight your battles but can show you the right way to prepare for it. The Mathadi workers union was demanding that restaurants allow their employees to join the union. We irst told our members to reply to their legal notice and then took up the issue to the commissioner of Labour. The result is that the union has been told to cease and desists their actions against eating houses. We can take individual cases and build a collective issue. The roadside food hawking is another contentious issue. The local governing body has been turning a blind eye to all the illegal activities, despite the overwhelming proof collected by our members by way of photographs and letters. Many members were wondering whether the anti hawking committee was in fact doing any work at all. In India the wheel of law turns very slowly but turn it does. The Supreme Court has taken cognizance of all the complains logged with the BMC and the court itself and has demanded action. Those of icers who were too slow to act have had strictures passed against them. Our dream is that of a united AHAR taking on the all the problems head on. We will irst have to identify the challenges we face in our operations today, study the future working conditions and create a system which will allow our business to thrive and prosper. It is a strong herd which can beat any predator. This is not an idle thought. The traders in the APMC market have used every ounce of their in luence to block FDI in trade. But now that the bill has been passed in parliament, they have not sat down to lament at their plight. They have set into process an operation which will rival the Carrefours and Walmarts of the world. I have con idence that Indian ingenuity and hard work will ultimately beat these foreign giants. A gentle reminder to all the members to renew/ convert their FSSAI/MPFA license before due date to avoid penalty and last minute rush. See you at the AGM!

Shashikant Shetty Hon. Gen Secretary

Note : All members are informed that FSSAI Licenses expiring on 31.12.20012 should have been renewed before 30.11.2012 . Members who have not yet renewed the license should renew them immediately. Please note there will be a penalty for those not renewing before due date. The last date for conversion of MPFA license is 4th February 2013. Members who have still not converted their MPFA licenses should do so as early as possible to avoid last minute rush. Shashikant Shetty Hon. Gen Secretary

lobal players have been attracted to India as an investment destination in Hospitality Industry over the years for its status of being one of the most promising countries in the Asia Paci ic region. India has seen tremendous growth in demand and supply dynamics of hotels and Restaurants especially in the Tier I and Tier II cities. The metro cities are the front-runners in driving the hospitality industry across leisure, business, Meetings, Incentives, Conferencing, Exhibitions (MICE) and Food and Beverages (F&B) segments. With respect to the number of hotels keys in the top 14 cities of India, it is estimated that approximately 1,12,818 keys as on 2011 exists whilst 66,371 are upcoming. Supply is likely to increase by 59% over the next ive years.

destination india

The Indian Hospitality industry contributes around 2.2 per cent of Indias gross domestic product (GDP). The industry is expected to reach INR 230 billion (US 5.2 billion ) by 2015, growing at a robust compound annual growth rate (CAGR) of 12.2 per cent. India will be investing around INR 448 billion (US 10.1 billion ) in the hospitality industry in the next ive years, according to a report The Indian Hotel Industry Report - 2011 Edition by CYGNUS Business Consulting & Research Firm. The whos who of the world of international fund companies - Blackstone, Morgan Stanley, Walton Street Capital, Starwood Capital, Merrill Lynch, Westbridge Capital, Lehman Brother are looking to invest in the hospitality sector. HVS Hospitality Services estimate approximately 102,348 new hotel rooms are to enter the Indian hotel market by 2015/16, of which approximately 60% are expected to be actively under development. A signi icant number of these hotels are expected to be af iliated with global brands and be of international quality and service offerings. Hotel operators across the country would need to prepare themselves for this expected competition by improving their operational ef iciencies and also their product and service offerings. The Union government has last year constituted the Hospitality Development Promotion Board (HDPB), envisaged as a single window for facilitating the multiple clearances required for hotel projects. We must now shift our focus to convince all state governments to set up similar boards headed by their respective Chief Secretaries, as only then will the full bene icial impact of this welcome measure accrue to the industry. The Cabinet Committee on Infrastructure recently approved a harmonized master list of infrastructure sub-sectors, which includes tourism projects and hotels, but subject to certain conditions and exceptions. We have immediately communicated to both the Ministry of Tourism and Ministry of Finance that the narrow de inition of hotels in this list appears arbitrary and would seriously limit the intended objective and ef icacy of this policy.

INVENTORY PERFORMANCE
Mumbai, with an Average Room Rate of INR 6,400, leads in city wise hotel performance, followed by NCR and Bengaluru. On the other hand, Chennai recorded the highest Average Occupancy Rates (AOR) estimated to be 64% for H1 2012, closely followed by Mumbai and Kolkata. Hyderabad recorded the lowest ARRs as well as AORs. The ARRs have witnessed a modest drop due to economic uncertainties, rising costs due to in lation as well as low footfalls of tourists in the slower months

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of March to May across majority of cities. Occupancy rates may see an upward trend in the second half of 2012 keeping ARRs at moderate levels, along with more opportunities deriving from the festival seasons beginning ahead. Depreciation of the Rupee against foreign currencies further increases attractiveness of India as a tourist destination, as the room rates become more affordable to foreign tourists.

airports, metro / railway stations, corporate parks, hospitals and educational institutions besides providing eating options. Food culture in India is as complex as the tapestry of its heritage. The diverse culinary rituals, wide range of cuisines and the varied cooking techniques make for layer upon layer of an overwhelming yet enriching experience. No holiday is complete without good food and India makes sure it offers a wide selection. Growth of restaurants in the country has put on the table not only diverse local lavours but a huge variety of international cuisines. Indian food choices are a gastronomical delight with each region offering its signature cuisine. Eating out today is considered an experience; it has always been a way of life for Indians. It is a way of socialising in the community where people meet new people in a preordained ambience, while savoring decadent delicacies. There are approximately 1.5 million eating outlets in India and the number is expected to scale up rapidly in the near future. In the current times, restaurants have taken over the task for social gatherings, offering novelty and convenience at the same time. Independent outlets therefore continue to dominate the industry in India. The growth of the tourism industry has also been a positive factor behind the growth of restaurants in India. An increasing number of foreign tourists prefer going stand alone restaurants. It is dif icult to assess the number of restaurants in India as the sector is largely in what is referred to as the unorganized sector where small restaurants and street side stalls are common. There are approximately 100,000 restaurants in the organized or modern sector, which is de ined as restaurants with more than twenty seats and a restaurant menu. Indians have traditionally preferred multi-cuisine restaurants where a family or group can order a range of different cuisines. A typical multi-cuisine restaurant might serve Chinese, various regional Indian dishes and European style foods. That trend is changing as restaurants serving a single cuisine are becoming increasingly popular. Growth in the organized or modern sector is expected to grow at 8-10 percent annually for next few years because of increasing urbanization and increasing disposable incomes. International fast food and local multiunit restaurant groups are driving the expansion in the restaurant industry. South India is emerging as a key region for growth of multi-unit chains that supply reasonably-priced ethnic food with a quick-service concept. After a slow start, Western-style fast food restaurants have grown impressively at 15-17 percent annually in recent years. Most foreign and local chains are doing well in major cities, and are expanding into mid-sized Indian cities referred to as tier-two and tier-three cities. Most of these fast food chains have developed a range of Indian-styled products to suit local preferences. Although these chains procure most of their products locally, several products such as French fries, specialty cheeses, some meats and seafood, lavors, condiments, and other ingredients are often imported. Over the past few years, the coffee shop culture has spread via chains like Costa Coffee, Mocha, Barista and Caf Coffee Day in major cities, and seems poised for further growth. These chains are currently sourcing syrups, nuts and some bakery ingredients from foreign origins. such as French fries, specialty cheeses, some meats and

RESTAURANT INDUSTRY
The Indian restaurant industry has seen signi icant growth over the last few years thanks to the domestic and international chains leaving their stamp on the Indian Hospitality industry. There are various segments ranging from independent family restaurants, cafes, fast food/quick service restaurants, casual/ ine dining restaurants and others that cater to the Indian masses. Restaurants are a key part of retail destinations including malls and local shopping centres, transit locations including

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seafood, lavors, condiments, and other ingredients are often imported. Over the past few years, the coffee shop culture has spread via chains like Costa Coffee, Mocha, Barista and Caf Coffee Day in major cities, and seems poised for further growth. These chains are currently sourcing syrups, nuts and some bakery ingredients from foreign origins.

fragmented supply chain. Strong competition from local suppliers including multinational food companies. Competition from countries with closer geographic proximity. U.S. exporters unwillingness to work with small volumes, consolidated shipments and special labeling requirements.

Institutional
The institutional food service sector includes catering services for the armed services, railways, ships, airlines, hospitals, schools, government meal schemes, prisons, and government and corporate of ices. The leading hotel chains and few corporate caterers provide catering services to the airlines and for higher-end corporate and private events. Cost is a major consideration and catering companies procure most of their food and beverage requirements from domestic sources. To the extent that caterers utilize imported foods, they commonly source from local irms that import and distribute foreign foods.

HOTEL PERFORMANCE
Mumbai caters to leisure as well as business visitors, making it a perennial hospitality destination. Though, Mumbai has witnessed a continuous increase in occupancy levels from 2009-2011, the irst half of 2012 has seen a decline of nearly 6% in the occupancy to be recorded at 61%. H1 2012 has experienced slightly higher average room rate (INR 6,400) than the previous year. In H1 2012, Juhu hotels have highest occupancy levels (68%), followed by EBD (65%) and Airport (63%) hotels. However, Average Room rates are the highest in the SBD region hotels, followed by the Airport and EBD hotels. The lowest occupancy rates were seen in Navi Mumbai and the lowest average room rates were recorded in Thane. The CBD achieved average room rates of INR 6,055 at 60% occupancy rate.

COMPETITION
The biggest competition for U.S. food and beverage products in Indias hotel and restaurant (HRI) market is from the local food industry. India s diverse agro-industrial base offers many products at competitive prices. Leading multinational food companies and global brands have food processing operations in India, which offer a range of western-style products at reasonable prices. Most local products are priced lower than comparable imported ones due to high import duties and marketing costs. While many high-end hotel and restaurant buyers are aware of quality differences and insist on world class standards, most are also very price conscious.

HOTEL SUPPLY
Mumbai has a total inventory of 18,500 keys as of H1 2012, with organized segment comprising 76% of the total inventory. The maximum increase was witnessed in the upper upscale category by 93% over 2005 till H1 2012, followed by midscale category (55%). The midscale category witnessed 49% rise, followed by upper upscale category (32%), while the luxury segment witnessed only 11% rise during 2008 to H1 2012. The maximum in lux of keys (7%) to the total inventory was noticed twice in the last 8 years.

EXPORTING TO THE INDIAN HRI SECTOR ADVANTAGES

Higher purchasing power and a growing tourism sector. Increasing urbanization and a growing number of working women. Expanding young population and increasing growth of fast food chains and casual dining restaurants. Growing popularity of American culture and foods. Many U.S. fast food franchises are present in the market. Eating out culture is growing among upper and middle class Indians along with a greater willingness to try new cuisines. U.S. products generally have a good quality image among consumers. Strengthening economic ties between India and the United States. Consumers preference for traditional Indian foods.

OUTLOOK
Mumbai has a pipeline of 10,200 keys in the organized segment in the next 4- 5 years. About 48% of the upcoming inventory will be in Western Suburbs (21%) and Navi Mumbai (27%). 18% is expected in Eastern Suburbs while 13% in the EBD area. Juhu and Airport area will contribute 7% each. In the next 4- 5 years largest inventory is expected in the upscale segment (33%), followed by midscale (27%), luxury (25%), budget (9%) & upper upscale (7%) across different micro markets in Mumbai over the next four years. Close to 1,500 keys are expected to enter the Mumbai market in the H2 2012. Some of these hotels are Shangri La ( 3, 2012) at High- Street Phoenix, Ibis Navi Mumbai ( 3, 2012), Hilton Garden Inn in Navi Mumbai, Ginger Hotel etc. Accor Hotels likely to have the largest inventory base in Mumbai over the next four years. Mumbai - CBD includes Ballard Estate, Colaba, Churchgate, Cuffe Parade, Fort, Nariman Point.EBD includes Byculla, Dadar, Lower Parel, Parel, Prabhadevi, Worli; SBD includes Bandra KurlaComplex, Eastern Suburbs include Vhandup, Chembur, Kurla, Mulund, Powai; Western Suburbsinclude Andheri, Bandra, Goregaon, Khar, Malad, Santacruz, Vile Parle. -Mickee Menon

CHALLENGES
High tariffs and non-tariff restrictions. Speci ic labeling and clearance requirements and procedures. Developing food distribution infrastructure and a long and

n this economy, Restaurants, hit by higher commodities prices and a cutback in consumer spending, are aggressively searching for ways to slash costs. But theres a right way and a wrong way to go about the cost cutting if you do the wrong things to reduce costs, you can create problems and even incur hidden costs in the long run. Sometimes when youre trying to solve a problem, it helps to consider what not to do. Many of these businesses cant pass on the higher costs to customers without losing even more business. So, theyre trying to ind alternative ways to save -- including changing vendors and packaging, altering delivery schedules, cutting serving portions and even prolonging the life of fryer oil.

Quick Mantra for Profitability

down by a few percentage points overall. What this says is that even in a bad recession, some Restaurant companies are way up. Refresh the sales skills of your front of the house staff, get your servers to sell more beverages, put together some creative specials or ixed price options that will get people in the door.

2. Re-structure: The fact is, the

Restaurant industry has changed due to economic, cultural and demographic factors and the pace of change is only speeding up. Many Restaurant companies are holding on (for now) with sophisticated inancing schemes, but their focus should be on re-engineering for the future of the industry, not trying to force yesterdays approaches to continue working. You need to be willing to take a clear-eyed look at the reality of the industry, and reengineer. When you re-engineer, you naturally cut costs as you ind more ef icient methods and approaches to doing business. Re-engineering means asking, What am I unique in? What are the right things for your business to be doing?

more goods you produce the more raw materials you will need. So now, you must be wondering just how to lower those bills in order to control your business costs. Well, there isnt one cut and dry answer, and you need to examine your whole business strategy determine how to achieve cost-reduction without impacting your business adversely. Paradoxically, sometimes in order to save money you may need to spend money, such as upgrading the equipment in use. So here are a few ways you should and you shouldnt do when looking for Restaurant cost-cutting ideas.

Fixed and Variable Cost Control

There are two types of costs in business - ixed costs and variable costs. Fixed costs are those that are not related to the amount of sales or production. They usually include rent, insurance, and the costs incurred by the utilities in use, or for running the business, such as salaries, advertising etc. Fixed costs can change over a period of time, although the increase or decrease is not connected to production. Variable costs, however, are directly related to business activity. Raw materials and inventory are perfect examples of the variable costs of a business enterprise. Inventory has to be kept on hand in the retail industry, and with increased sales, there has to be an increase in the inventory too. Likewise, with raw materials, the

Effective Cost-Cutting Strategies for Restaurants

1. Increase in sales reduces your costs: Did you know a 2%
increase in sales can be equivalent to a 10% reduction in food costs. Even though the industry is down, it is only

3. Invention: Theres nothing like a recession to get the industry dusting off tired old promotions. The happy hour and all sorts of other state-ofthe-art-in-1989 programs are being re-introduced and, to the dismay of those pushing them, the results just arent there. Times have changed. Consider the media that Restaurants use to market themselves. When radio was irst introduced as a new form of media, it took 38 years to reach a market audience of 50 million people. It took television 13 years to reach 50 million. Facebook reached

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50 million in just 2 years. Meanwhile, tired Restaurant chains are pushing happy hour promotions via mass media advertising and taking a wait and see approach with social media. The real winners companies like Apple are winning through invention. We just experienced the worst inancial crisis since the Great Depression, yet Apples iPhone is the fastest selling product in history and sales only continued to climb in the recession. How did they do that without discounts? Invention. The more you innovate and invent, the less you have to discount. The more you can do to create a one-of-a-kind customer experience, the more you can afford to charge and the more customers you can expect to see in your dining room. Effective employee retention is the key to attain both competitiveness and pro itability of the business. Long term health and success of the business is hampered when employers do not follow a systematic effort to create and foster an environment that encourages current employees to remain employed. The replacement costs are about 1.5 times the salary of the individual. These include lost business, damaged morale and the hard costs of new recruitment.

often than the companies. Involving the employee in the decision-making process Utilizing the innate talents and skills, as the employees may feel underutilized otherwise. Effective work appraisals and recognition for performance is a must. Making work more fun and rewarding reduce the stress at workplace.

A cooperative is a buying group that gives independent operators and regional chains buying power like the mega chains. Whether youre buying food, kitchen equipment or marketing services, when you buy in bulk you always get a better deal and better service. If you dont have the buying muscle you need, join or start a cooperative.

5. Inventory Utilization: At
times we stack up cases and cases of a product that wasnt moving. Just one innovative idea and new approach to inventory utilization can make a big impact on the bottom line.

4.

Employee

Retention:

Effective Employee Retention Measures:

Money is not the only motivational factor. In fact having a challenging job, honesty and open work environment, and recognition of work can be important for many. Some of these measures prove useful in reduction in turnover while retaining your current pool of talent: Training: Provide effective training and career development opportunities that lead to the professional growth. De ining a clear career path for the individual for him or her to take a decision in career.. Improved supervision as people tend to leave supervisors more

Even if times are tough, you can often turn to your vendors for support. Landlords will give grace, broadline distributors will give extended payment terms, and in general, your vendors want you to succeed. Your destinies are intertwined in that regard the better you do, the better they do. It is short-sighted to price shop vendors in such a way that you bounce from deal-to-deal with no loyalty to a vendor. When you are loyal and ask for help, generally you get it. Often, those vendors that steal you away with a lower price are lacking on the service side and sometimes, the service you lose is worth more than the discount you gained. You might try to consolidate vendors to increase your purchase volume.

6. Ask your vendors for help:

9. Set a Good Example: You cant show up to work in a brand new Mercedes and expect your employees to believe that cash is tight. Youll notice many CEOs these days setting examples for their other employees by tightening their own belts too. The CEO of General Motors worked for 1 per year. The CEO of Wal-Mart stays in 3 star hotels and often shares a room with another executive. When the head of the company demonstrates a willingness to put the company above his own comfort, it trickles down to the rest of the company and inspires them to do the same. 10. Unnecessary Ingredients:
Removing unnecessary ingredients in a recipe can save your Restaurant big time.

7. Find critical leverage Points: The 80/20 rule should

be applied to cutting costs. Many operators attempt to improve 100 areas at once and as a result, they never get deep enough into any one problem to be able to make a real difference. The key is to ind your critical leverage points. Focus on the big stuff irst. Work your way down your pro it and loss statement or inventory, working on no more than 5 items at a time.

Although you should try to cut costs whenever possible, also try to push customers into buying platters with the highest margins. For instance, Restaurants often use pasta, which costs a few pennies per ounce, garnish it with some more expensive items, such as chicken, and price it a few Rupeess less than a dish made entirely of pricey materials, such as steak, so patrons think they are getting a bargain. You also might use specials to get customers in the door and hopefully convince them to return. For instance, Restaurants sometimes offer half-price burgers on slower days of the week, like Monday and Tuesday.

11.

High-Margin

Items:

8. Purchasing Cooperatives:

12. Theft: Restaurants lose certain percent of their total sales to theft and loss, according to the National Restaurant Association. Most of this comes from employees stealing, such as a waiter who does not ring up food and drinks for friends. You should have your managers reaf irm

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the companys policy on stealing and its consequences to employees, and install security cameras. Also, tighten cash-handling procedures. For instance, you might have a cashier ring up sales and issue receipts rather than have a waiter handle the entire process.

them are the most or the least costeffective. Cut down on those that give you the least pro its, while investing more on those products that are the most lucrative.

14. Scrutinize your products or services: Find out which of

operational pain than when variable costs are cut.

16. Question every aspect of your business: Look at every

expense, and see how each one adds to the value of your business. Does it make any difference to the bottom line? Are there any other options? Are there better, faster, cheaper ways of doing things?

13. Wise advice: Apart from

these, there are various ways through which companies can cut costs and at the same time keep its employees happy. The best way could be to not play up with the direct salary but on the other hand try to reduce the operational costs. For instance, instead of the budget for sales team target achievement parties can be reduced, one can see and revise costs of stationery items. Going paperless can save a lot. Instead of just cutting on direct expenses like salary one can work try to slash cost on indirect expenses. This will keep employees satis ied that they are getting their salaries despite such turmoil in economy and will serve the cost cutting purpose too.

15. Make variable costs your target: Cut down on luctuating

costs like advertising and employee salaries irst, before targeting ixed costs like the rent and utilities. This is because cutting back on ixed cost is not always possible. The average Restaurant has a budget of certain % of revenues on advertising and marketing, which gets cut from their budgets when the going gets tough. To some extent, thats fair after all, with the downturn, this is a good time to stop spending on mass media advertising. However, its never a good time to stop marketing. The goal isnt just to spend though, its to invest. Now is the time to invest in innovative new marketing programs like social media, mobile marketing and a host of other new approaches can cause more inancial and

17. Monitoring an important aspect: Dont cut costs just to shore

up a faltering business and then forget all about it once short- term objectives are met. Always keep track of your inances and always ind ways to cut costs.

Sushila Sharangdhar Registered Dietician and Yoga Therapist Website: www.wellnessndiet.com Email: dietitian25@gmail.com Mobile: 09833177129 Continue....... on Next issue

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AHAR IN ACTION DURING 2010-12

The decade old Bye laws of AHAR were amended to suit the present situation and also make it very transparent. It made compulsory attendance of 50% in monthly meeting of the Managing Committee and also speci ic tenure for every Of ice Bearers. Hence, the last AGM saw a lot of young blood in the new Managing Committee. The spirit of the amendment was to encourage and absorb younger members into the Managing Committee which was precisely accomplished. Meeting the Chief Minister and other Concerned Ministers in person and presenting the grievances affecting the entire Hotel Industry in Maharashtra. Our main request was [1] Removal of PPEL/RC license to Restaurants [2] Removal of Drinking Permit System & demarcation. [3] Repealing Section 394 of MCGM Act in lieu of introduction of new FSSAI license and [4] High Power Co-ordination committee along with the representatives of AHAR for meeting regularly and discuss the grievances for redressal to be headed by the Chief Minister. The impact of the meeting with CM was so good that a High Power Committee was immediate constituted as requested by us under the chairmanship of Shri Amitabh Rajan, Chief Secretary, Home. This Committee will study the current 70 regulatory and licensing conditions and try to cut them down. As per direction of the Chief Minister, Shri Satej Patil, Minister of State for Home had convened a meeting at his of ice of AHAR and the Police authorities to discuss about the decades old Police Acts which needed drastic amendments. Satisfactory meetings were held with the concerned Ministers and Bureaucrats and expressing our grievances by presenting memorandum with facts and igures and convincing them for making necessary amendments. A close rapport with all Hotel Associations in Maharashtra outside Mumbai to present our common problems as one and ight unitedly. No hike in FL-III license for the year 2012 due to our continuous approach, follow-ups and representations to the relevant authorities. The harassment by the Police in legally run Orchestra Bars were attended to at high level and redressed. The practice of regular meetings with hoteliers to solve their genuine grievances at Zonal level once in 3 months with all the Deputy Commissioner of Police was being

followed. These meetings have resulted in reduction of complaints at ground levels. Suppressing the arm twisting tactics of leading Liquor Companies and bringing them to negotiating table which made them offer same discounts and offers as offered to wine shops. The harassment to Bar Owners by the Maharashtra Flying Squad was put to an end. It was brought to the notice of the Commissioner of the Excise, which was supposed to act against illicit liquors and bootleggers, that the Flying Squad were unnecessarily harassing Bar owners which doesnt come under their jurisdiction. The Commissioner of Service Tax, Joint Commissioner etc conducted workshop in our of ice regarding the newly introduced Service Tax on Air-conditioned Restaurant serving liquor. FDA camp for conversion /renewal/Registration of FSSAI license in lieu of MPFA License at AHAR of ice. Almost all our members were bene ited without paying any additional money or favour. Government Department has conducted a camp in Associations of ice for the First time in such a large scale. The wide coverage of Hotel Industry grievances in Print and TV media. All leading channels and newspapers covered the interviews, views etc very prominently resulting in creation of awareness to our customers. Even CAG had re lected in its report about our concern of sizable drop in liquor sales due to the wrong policy resulting in exorbitant hike in liquor price. For the irst time, leading Newspapers like TOI, Hindustan Time, DNA, Midday, Navbharat Times, Afternoon etc covered our coverage in prominently. The DNA newspaper conducted two workshops at our of ice and Hotel Krishna Palace regarding hygiene in Restaurants as prescribed in the FSSAI Act for awareness amongst our members. Put up strong resistance against the exorbitant hike, cross subsidy and TDLR charges etc of leading electricity distributing companies through petitions and representations with higher authorities. Switch over from RIL to TPC resulting in saving of crores of rupees to the hoteliers. During the last two years, more than 24 free eye camps were conducted. More than 4,000 hotel employees were bene ited in these camps. Received highest sponsorship amount of Rs.86.38 lakhs through tie-ups, stalls and other promotions during the last two years. Collecting highest membership collection of Rs. 22 lakhs in the previous year. All these achievements were possible only due to the relentless efforts put in by our Of ice Bearers, Advisors Committee Chairmen, Committee members and the unstinted support and encouragement received from each and every Hotelier without which this was not possible. We hope to receive such support in the years to come to make AHAR a force to reckon with in Mumbai and Maharashtra.

Insights about life, business and the way ahead..

he result of one mans vision, Jayaleela Corporation Pvt. Ltd. has gone from strength to strength over the past four decades. Firmly rooted in values of community, service and quality, it is run by the family, in keeping with the principles of its entrepreneurial founder and patriarch, Mr. Jaya Chandu Suvarna.
Coming from a small village called Adve, near Mangalore in Karnataka, Mr. Jaya C. Suvarna began his entrepreneurial journey at the tender young age of fourteen. He headed for the city of Mumbai, with nothing but a dream for a better life. In the journey that followed over the next ive decades, he went from cleaner to waiter to manager to owner to benefactor of thousands. Born with an innate spark, a magnetic personality, a quick and right-thinking mind and great perseverance Mr. Suvarna, joined as a utility boy in a ramshackle restaurant housed in a tin-sheet shelter. He planted a Pipal sapling inside this restaurant. His sons, now young men, proudly point to the Pipal, as it stands tall and stately, offering shelter to passerby. Sacred to Hindus and Buddhists in India, it is worshipped as bringer of blessings, a sheltered space to contemplate the spiritual. This

Mr. Jaya Chandu Suvarna JAYALEELA CORPORATION CMD & Founder

tree, stands outside the now swanky Jay Prakash Hotel. In the past few decades Mr. Suvarna, went from one restaurant to several businesses, with his four sons who have, even with all the choices in the world available to them, followed in his inspiring footsteps. From its origin as a small Lunch Home, today the organisation has grown to encompass a multitude of high-pro it brands across various formats. From well-loved old favourites such as the Jay Prakash Family Restaurant, Jayaleela Banquets, Sai Veg World and Sai Sweets it is has now ventured into real estate development and creating innovative, new hospitality products. Now considered landmarks in their own right, each of these brands are an embodiment of the groups philosophy of never compromising on the quality of its offerings for the sake of packaging. In a life, illed with service to the community and dedication to do the right thing, Mr. Suvarna has joined the Billawara Association and taken its message of empowerment to thousands. He has created institutions that bring free education and better infrastructure to thousands and has taken the Bharat Cooperative Bank from 5 to 50 branches. Awarded for both his entrepreneurial and charity work, he continues to lead by example, to create, build and to make a difference at a proli ic pace even today. The story of Jayaleela Corporation Pvt. Ltd. is the story of this mans will and vision.

1. Which are the factors that you feel attracts or will draw a customer to Jayaleela Corporation Private Limited? Jayaleela Corporation is known for creating products and services that are honest, that deliver great value and are accessible to everyone, Jayaleela Corporation is a trusted name and this goodwill is created over the period of time, we have a long list of loyal customers and more are getting added as we grow. 2. Describe the entrepreneurial journey you travelled to reach to this success level in your business? I am thankful to God for whatever I have achieved in life, I come from a small village called Adve near Mangalore in Karnataka, Life was never easy as my family was very poor and to afford one meal a day was also dif icult. My entrepreneurial journey started at the age of fourteen when I headed for the city of Mumbai, with nothing but a dream for a better life for my family and myself, I started working as a utility

boy in a hotel, from being a utility boy to waiter to manager to owner I worked very hard, in the journey that followed over the next ive decades, the result we see today is Jayaleela Corporation and its verticals. 3. Elaborate on the hurdles you had to face to reach to this stage of success? There have been endless hurdles in the business life cycle and personal, its dif icult to elaborate on few, however, never to give-up attitude, and the will to go on no matter what, has helped me to overcome all hurdles in life, I am thankful to Almighty who looked over me in times of trouble. 4. In your journey has your family been supportive and encouraging at every step? I dedicate my success, to my Mother Mrs. Achu Suvarna, my Uncle Mr. B. G. Suvarna and with other family members blessings and support without which I couldnt have made it till here. 5. According to you, what would be the reason for a customer to step in speci ically to your hotel?

We believe strongly in customer satisfaction, by maintaining highest grade in hygiene and give the best service experience to the customer. We take customers comments very seriously, be it compliment or compliant, we act upon their suggestion and keep elevating our standards accordingly. We create Value for money products. 6. Which are the brands established under the umbrella of Jayaleela Corporation Private Limited? Our Brands are Jay Prakash Bar & Restaurant (Since 1963), Jayaleela Banquets (Since1993), Sai Veg World (Since 2005) and Sai Sweets (Since 2005) 7. Which are a few signature items at your eatery? The irst of our eateries, the Jay Prakash Restaurant and Bar, has become a familiar, suburban landmark over the past 50 years. With an emphasis of exquisite and sumptuous seafood it has come to be known for its large variety of grilled, baked and cooked ish and for its exotic crab, prawn and lobster dishes. For the cosmopolitan foodies, the restaurant also serves a wide selection of popular regional cuisines ranging from Manglorean and Punjabi to Mughlai and Chinese. 8. How accessible is the Jay Prakash Restaurant & Bar for one to reach out frequently? Located perfectly next to a transport hub, a suburban business district and within the catchment areas of upmarket residential settlements, it offers welcome reprieve to young professionals and an evening out to families. Loyal regulars are known to come from far and wide, knowing that this familiar haunt is guaranteed to serve up a steaming hot plate of something delectable and perfect for any kind of craving. 9. How did the establishment of Jayaleela Banquets take place? In todays market and hard core competition, what is the uniqueness introduced to draw maximum crowd? In 1984, the organisations started Jay Prakash Hall, an eatery that served authentic South Indian cuisine on fresh plantain leaves. In 1993, it underwent a transformation to take on its current avatar and became Jayaleela Banquets, illing in an obvious need, it provided the irst elegant space for corporate and social gatherings in the Goregaon East region. From grand family celebrations and community meetings to Swish Corporate business conferences, Jayaleela Banquets provides a much-needed customizable space for the hub of businesses and residential catchments nearby. 10. Sai Veg World Restaurant is popularly called as Platform No. 6 of Goregaon East Station. What are your views in this respect? Affectionately known as the Platform No. 6 of Goregaon East Station, Sai Veg World offers a bewildering and mouth-

watering array of scrumptious bites for the vegetarian and for the street food a icionado. Offering a range of modes from airconditioned seating, a regular section and even a really zippy standing section. 11. How would you rate Sai Sweets compared to other well known Mithai brands? I always felt that Goregaon East doesnt have any quality Mithai shop and there was a need to ill the gap. It was a successful venture right from the day one. The popularity of Sai Sweets encouraged us to start branches in Vile Parle and SantaCruz. 12. Not only do you actively contribute to entrepreneurial work but we have also heard that you do a lot of charity work. Elaborate your initiatives. As an entrepreneur, I always wanted to create opportunities for my community and other entrepreneurs. Today I feel proud to say my association with Bharat Co-operative Bank, when it had just 5 branches to the journey of 50 branches and still growing. Today, Bharat Co-operative Bank has created hundreds of job opportunities and bene ited many entrepreneurs. Also it has established businessmen for startup and ongoing business to ful il their aspiration and dreams. Some of my Charity and Social Initiatives: a. Billawar Association Since1991: I am a big follower of Shri Narayana guru as he preaches strength is in unity and equality, I wanted all the Billawas to come together as one big family and only then there will be recognition in the world. I was instrumental in shifting the Billawar Association of ice in 1991 from Bora Bazaar, Fort to a mammoth independent building at the central location at Santa Cruz East. b. Guru Narayan School : Billawar Association sponsors two Schools in Mumbai & Karnataka Guru Narayan Night School at Santa Cruz provides free education, free uniform and free railway passes for the under privileged students. Guru Narayan School at Udupi, Padubelle also provides free education, free food and free bus services from 1st to 10th standard to students from all community in the region. c. Narayan Guru School & Junior College, Mulki: The trustee of this institution which caters to 1500 students education from 1st to 12th standard. d. GOKARNANATHA Temple at Kudroli Development Community Chairman since 1990. Mangalore:

e. VISHWANATHA Kshetra at Katapadi: Development Community Chairman. f. Billawar Mahamandal since 2000: Founder and the President of Billawar Mahamandal which brought all the Billawar Communities Association in various parts of India and abroad under one roof. Billawar Mahamandal has also sponsored Narayan Guru Urban Co-operative Bank at Udupi District.

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Managing Committee Meeting

8th

Committee to study and submit report whether to ile a suit for stay in the implementation of certain provisions of FSSAI.

he 8th Managing Committee Meeting was held at Hotel Krishna Palace, Nana Chowk, Mumbai on 30th August 2012. Shri Shivanand Shetty, Host Vice President ZoneIII welcomed the members and thanked his team for their wholehearted support. Shri Sudhakar Y Shetty, President commenced the proceedings as per agenda circulated. Shri Shashikant Shetty, Hon. Gen. Secretary presented the minutes of the 7th Monthly Managing Committee Meeting held on 30.7.2012.The house unanimously approved the minutes proposed by Shri Ravindra Shetty and seconded by Shri K. K. Mahale. Shri Nitin Shetty, Hon. Treasurer presented the accounts of AHAR and Orchestra Bar for the month of July 2012.The house unanimously approved the accounts proposed by Shri Prakash Shetty and seconded by Shri Balakrishna Shetty. Followed by this, the President briefed the events of month - Delegation of AHAR met Smt. Valsa Nayar Singh, Secretary Environment Dept, Govt. of Maharashtra on 9.8.2012. She clari ied that as per the newly amended Plastic Handling and Management Act 2011, only plastic carry bags above 50 microns are permitted. The amendment is underway and may be implemented soon.

WP/PIL against Declaration of Dry days during election:

The President asked Advocate Veena Thadani to study the legal aspects and to advise whether they should move court against the unilateral decision of Election commissioner in declaring the dry days without adhering to the laid down norms. She has given her opinion and suggested iling a Writ Petition in the High Court in this regard. AHAR, along with Maharashtra Wine Merchants Association will ile the said petition and bear the expenses jointly. This will be bene icial in future when declaration of dry days is announced during various election processes. The petition will be iled after proper coordination very soon.

FSSAI:

AHAR delegation met Shri Yatin Sawant, Deputy Commissioner Excise and discussed about the proposal demanding the removal of permit, if not fully but atleast partially; removal of demarcation; Reduction in Transfer fee-8 times of license fees; Removal of Grade I for Permit Rooms; Reduction of Dry days; and Removal of 5% Vat on liquor tunover. AHAR Delegation met Mr. Surve, Vigilance Director, Excise and briefed him about the fall in sales due to hike in prices and requested him not to harass the Permit Room hoteliers for petty reasons such as incomplete books of account etc. He assured AHAR delegates for his support but clari ied that no smuggled liquor from Goa or any other state should be found in the business premises. In case any outlet is found with such goods, he will initiate severe action. They also met Flying Squad-excise Chief Mr. Belvalkar and discussed about unnecessary harassment to licensees. He agreed to cooperate with the members in case of genuine dif iculty. President and the delegates met DCP, Zone-VII and apprise him of harassment to the orchestra bar hotels, who are adhering to the timings and other requirements like nokarnama etc. He was apprised that any illegal doing by these bars can be dealt sternly but innocent hoteliers earning their livelihood should not be harassed. While agreeing with their contentions, he requested the delegate to brief the Additional Commissioner of Police, East Region for direction.

The Chennai and Bangalore High Courts have stayed the implementation of certain provisions of the new FSSAI affecting the hoteliers. The President had formed a committee under the Chairmanship of Shri Arvind Shetty to study and submit a report whether to ile a suit for stay in the implementation of certain provisions of FSSAI. The other members of the committee are Shri Sukesh Shetty, Shivanand Shetty, Kamlakar Shenoy, Shashikant Shetty and Santosh R Shetty. The Managing Committee will decide the course of action after getting the committee report, inputs from activists, experts and lawyers. The Labour Minister has given an appointment on 4.9.2012 to discuss the relevant matters like deduction of food allowance, minimum wages hike etc. The AHAR delegates had already met the Labour commissioner earlier and he had clari ied that deduction of Food Allowance is not allowed and it is Labour Department and not BMC, which is looking after the wages part.

Food Allowance:

Restaurant Business Magazine: Since the publisher of our in-house magazine is unable to sustain the cost of around Rs.2.5 lakhs per edition due to poor advertisement revenue, they have requested AHAR for a subsidy of Rs.1.25 lakhs per edition for only 4 editions. Thereafter, AHAR will not provide any subsidy and the printer will have to meet the expenses through generation of revenue by advertisements. Members are requested to solicit advertisement from their suppliers for our Magazine to make it viable. We have decided to sponsor next 2 magazines @ Rs.1.25 lakhs each. The sanction of Rs 1.25 lakhs was approved by the house proposed by Shri Mukund Shinde and seconded by Shri K.K. Mahale. Camp for FDA License: FDA is insisting on a camp for registration/renewal/conversion of FSSAI license. In case we get minimum of 200 members, we will conduct a camp at AHARs of ice. Members are requested to inform AHAR if their establishment has still not registered/renewed/

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converted the FSSAI license to enable us to decide and ix the date for the camp.

Membership drive: The president personally requested all members to support their Vice Presidents in membership drive and also canvas for the renewal, enrolling new membership etc. so that the target of membership is attained. AGM: The 33rd AGM of AHAR will be held on 19th December 2012 at Buntara Sangha Auditorium. It will be a full-day event. Members are requested to take active part and involve themselves in canvassing for stalls and sponsorers to make the event a grand success. The of ice bearers have unanimously selected Adv. D.K. Shetty as the returning of icer for conducting the elections to the Managing Committee for the year 2012-2013.The house proposed by Shri Sukesh Shetty and seconded by Shri Ravindra Shetty unanimously approved the selection.
The Managing Committee has unanimously decided that Shri Arvind Shetty, VP, Zone-VIII, will be the Chairman of the 33rd AGM Committee. Members are requested to support him in making the event a grand success. He has already inalized the various committees for the smooth functioning of the AGM. MERC has directed Tata Power to provide electricity to South Mumbai consumers presently serviced by BEST through switch over. The members are advised to apply for the same and save in electricity costs.

downs and working with unity together is the need of the hour. Shri S.M.Shetty appreciated the working of the Managing Committee. Any other matter: Shri Gaurang Shah says that since the Shops & Establishment Department has instructed us to deduct the food allowance from the salary of the hotel employees, we should follow it as the circular after June 2006. Shri Sukesh Shetty informed that their request for allowing deduction of food allowance has been turned down by the Labour Commissioner, who had threatened that stringiest action, will be initiated against hoteliers, who found deducting the food allowance from salary. The President replies; He had started a new trend by sending the invitation of monthly meetings to all ex-of ice bearers for their participation and to make use of their experience. The Agenda and the minutes are for discussion and approval of Managing Committees only. The Decorum of the meeting should be maintained at any cost. By shouting truth cannot be suppressed or proved as lie or vice-a-versa. The President requested; The Vice Presidents must pull up their sleeves and collect maximum membership as the AGM is approaching. All the members should support AHAR through stalls, sponsorship, advertisement etc. to make the 33rd AGM a memorable event.

Appeal with Appellate Tribunal, Electricity, New Delhi:

The hearing has concluded and submissions are being done challenging the demand of cross subsidy by RIL. We have so far spent Rs.10 lakhs for the same. We need a sanction for additional Rs.1 lakhs for legal expenses as the matter is on inal stage. The house proposed by Shri Sukesh Shetty and seconded by Shri Ravindra Shetty approved the same. All the VPs presented the details of the work done during the month:

Condolence: The house prayed for eternal peace of Shri Vilasrao Deshmukh, Ex-Chief Minister Govt. of Maharashtra expired on 14.8.2012.
Shri Vittal Shetty, Reay Road expired on 2.8.2012. Shri Aikala Chandrakant Shetty, media Reporter Udayavani expired on 6.8.2012. Shri Chandrashekar Shetty brother of Shri Satish Shetty, Hon. Jt. Secretary expired on 20.8.2012. Shri Shambu. A. Shetty, Hotel Pushpa Vihar, Ghatkopar expired on 18.8.2012. Stall Support was provided by Food Guard, Fresh Energy, Veg-it, Unify Design and Menson.

Speeches by Advisors: In the speech by Advisors Shri

Narayana Alva said that they should consider providing Agenda of the Managing Committee meetings to ex-of ice bearers if they demand as they have provided support, time and energy for the Association since long. The expenses of proposed ight against TDLR charges by BEST should be borne by AHAR, even though it affects only South Mumbai hoteliers as they are our members. Shri Santosh R Shetty said that there is no option but to challenge BEST TDLR in Supreme Court by employing eminent Advocates. Commenting on some members for speaking rudely and shouting demanding a copy of Agenda to ex-of ice bearers he said that the President and his chair should be respected and the decorum of the house should be maintained at any cost. Shri Chandrahas K Shetty said that the Of ice bearers must move and collect the maximum membership which is the main strength of any Association. Any matter can be discussed in a digni ied way rather than shouting and arguing etc. Consulting eminent legal experts in TDLR matter is very important. Shri Datta Kadam said that the total team work of the existing committee is really appreciable. AHAR over the years has seen many ups and

Vote of Thanks: The Hon. Gen. Secretary Shashikant Shetty thanked- the President for conducting the meeting in a digni ied way, Host Vice president Shri Shivanand Shetty for arranging the meeting, Karnataka Malla & Udayavani for media support, Vendors for their Stall support, Management of Hotel Krishna Palace, USL for sponsoring liquor & SABMiller for sponsoring Beer.

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Managing Committee Meeting

9th

CM briefed to constitute a High Power Advisory Panel to interact on quarterly basis to sort out problems faced by hotels and restaurants.

he 9th Managing Committee Meeting of AHAR was held on 3rd October 2012 at Ivy Banquets, Amar Mahal, Chembur, Mumbai. Shri Vijaykumar Shetty, Host Vice President Zone-V welcomed the members and thanked his team for their unstinted support. Shri Sudhakar Y Shetty, President made a brief introduction of the host Vice President and commenced the proceedings as per agenda circulated. The minutes of 8th Mg Committee Meeting held on 30.8.2012 presented by Hon. Sec. Shashikant Shetty was approved and Proposed by Shri Ravindra Shetty and Seconded by Shri K. K. Mahale & Accounts for the month of August 2012 presented by Hon. Treasurer Shri Nitin Shetty was unanimously approved and Proposed by Shri Prakash Shetty and Seconded by Shri Balkrishna Shetty. Followed by this, the President briefed on the events of the month:

The newly transferred ACP Shri Vasant Dhoble is harassing the hoteliers of his Zone with various unreasonable charges. The Partner and the Manager of Swagat Hotel, Vakola were arrested on frivolous charges. Our delegation met MLA Shri Krishna Hegde, DCP-Zone-VIII and apprised them about the incident. Our delegation also met Shri Sadanand Date, Jt Commissioner of Police [Law & Order] on 28.9.2012. They briefed him about the harassment by Shri Vasant Dhoble, ACP to hoteliers of Vakola and Ashraya Hotel, Chembur. He was very positive and assured that after studying the cases he will initiate the necessary action.

Service Tax Matter: As the State Government has not submitted its reply in the Service matters, the case was deferred for three weeks by High Court. Next hearing was ixed on 30.10.2012. Meeting with Advisors:
A Joint meeting of the of ice bearers and Advisors was held on 18.9.2012. Many relevant matters were discussed. It was unanimously decided to keep the decorum and sanctity of the meeting. Any grievances of the members may be referred to the President or Secretary and get it redressed. The Environment Department of Maharashtra Government has clari ied that even the pouches carrying liquid food items like Chutney, Sambar, Sauce etc, the hoteliers should use only plastic carry bags of 50 microns and above only.

Memorandum to CM:

The pointers of memorandum forwarded to CM were their request for abolition of the Place of Public Entertainment License (PPEL) for Permit Rooms and Registration Certi icate issued by the police department for operating a restaurant. Secondly, the need to abolish the health permits issued by the State Excise Department for the consumption of alcoholic beverages in the restaurants. Thirdly, to abolish the requirement of separate enclosure needed for permit room for the service of alcoholic beverages. Fourthly, to simplify the procedures for service of liquor in banquet halls of hotels & restaurants by levying an additional amount equivalent to 10% of existing annual license fees. And inally, to abolish the Health License issued u/s 394 by Mumbai Municipal Corporations in lieu of the FSSAI Licence. Change of user procedures should be applicable only when a residential premise is converted into commercial premises or restaurants and no change of user procedures should be applicable when commercial premises are being used for restaurants. The delegation also requested the Honble CM to constitute a High Power Advisory Committee under the Chairmanship of Chief Secretary along with various other Secretaries (Home, Finance, Urban Development, Tourism, Civil Supplies, Excise, Labour, etc) and representatives of trade associations to interact on quarterly basis to sort out problems faced by hotels and restaurants and to support the Government of Maharashtra in their endeavour to encourage hospitality industry and attract and encourage more domestic and foreign tourists. The delegation met Shri Sumit Mallik, Principal Secretary Excise Department and presented a memorandum of our genuine grievances. He was very supportive and assured that he will do the needful in addressing our grievances.

Plastic Bags:

Meeting with Labour Minister:

The discussion on the relevant matters like deduction of food allowance, minimum wages hike and child labour age etc. with the Labour Minister was scheduled for the current week. Shri Arvind Shetty briefed that the committee formed for the purpose of Study of various provision of the new FSSAI that is affecting the hotels/ restaurants is doing its ground work, collecting legal opinions from experts etc. On collecting the relevant inputs, they may decide about the future course of action including the option of iling WP.

FSSAI Committee:

High Power Advisory Committee:

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AGM: The Chairman 33rd AGM Committee, Shri Arvind Shetty declared the names of the Chairman and coordinators of
various AGM Committees as under:
NAME OF COMMITTEE AGM REGISTRATION STAGE & TROPHIES WELCOME, FELICITATION SECURITY/TRAFFIC/ POLICE CATERING STALLS LI UOR & BARREL LUCKY DRAW MEDIA CHAIRMAN SHRI ARVIND SHETTY SHRI MUKUND SHINDE SHRI MAHENDRA KARKERA SHRI RAJU POLOMPALLI SHRI SHASHIDAR G SHETTY SHRI KARUNAKAR SHETTY SHRI. BHASKAR K SHETTY MOHANDAS J SHETTY SHRI RAVINDRA SHETTY SHRI SUDHAKAR Y SHETTY SHRI .NARENDRA B.PANESAR SHRI.RAVI V. BHANDARI SHRI.AMIT V.SHETT SHRI K.V.SHETTY SHRI. VISHWANATH SHETTY SHRI SUKESH SHETTY SHRI. DINESH SHETTY SHRI SURESH C. SHETTY COORDINATOR

The VPs presented the details of the issues in their zone and its redressal during the month. A few advisors like Shri Santosh R Shetty, Shri Chandrahas K Shetty, Shri Datta Kadam and sub committee members Shri Sukesh Shetty, Shri Shashidhar Shetty, Shri Bharat Thakur gave an overview of the work performance during the month. Shri Adarsh Shetty said that Shri Vijaykumar Shetty, VP is doing good job and all the hoteliers should support him in his endeavor. Shri Datta Kadam said that the total team work of the existing committee is really appreciable. AHAR over the years has seen many ups and downs. The President advised the members not to employ any person below the age of 14 years in their establishment and always keep age proof. He asked them to restrict smoking in the restaurant premises. Do not use plastic pouches for Sambar, Chutney, Sauce etc. and only in case of urgency plastic pouches of 50 microns and above should be allowed. He suggested getting Service tax registration done and that

hoteliers should apply for switch from REL and BEST to TPC.

Condolence: The house prayed for eternal peace of Shri

Mahabal P Shetty Vaishali Bar & Restaurant, Safed Pool, Saki Naka, expired on 31.8.2012. Shri Vittal Shetty father of Shri Jagdish Shetty, Ex. Secretary, AHAR expired on 23.9.2012. Shri Manju Devadiga father of Shri Jaideep Devadiga,Hotel Mallika, Malad. Stall Support was provided by Shriram Chits, First Energy, Mad-crock energy drinks, Unify Design, Menson and Signature International Foods.

Vote of Thanks: The Hon. Jt. Sec Satish Shetty gave a vote
of thanks to the President for conducting the meeting in a digni ied way, thanked host Vice president Shri Vijaykumar Shetty for arranging the meeting in a very grand way, Karnataka Malla & Udayavani for media support, Vendors for their Stall support, Management of Hotel Ivy Banquets, USL for sponsoring liquor & Budweiser sponsoring Beer.

10th
T

Managing Committee Meeting

High Power Panel under the chairmanship of Shri. Amitabh Rajan, Chief Secretary, Home will study the current 70 regulatory and licensing conditions and try to curt them down to fewer than 5. It will submit its report within3 months.
by Shri Ravindra Shetty and seconded by Shri Prabhakar Shetty. Shri Nitin Shetty, Hon Treasurer presented the accounts of Ahar and Orchestra Bar for the months of September 2012.The house unanimously approved the accounts and was proposed by Shri K.V. Shetty and seconded by Shri K.K. Mahale. The President briefed the events of the month as mentioned below: The AHAR delegation met Shri Prithviraj Chavan on 5.10.2012. Shri Ranjit Kamble Minister of State for Tourism and Shri Suresh Shetty, Cabinet Minister for

he 10th Managing Committee Meeting was held on 31st October 2012 at Hotel Avenue,Thakur Complex, Kandivali. Shri Anil Salian, Host Vice President Zone-X welcomed the members and thanked his team and hoteliers of his zone for their generous and ample support. Shri Sudhakar Y Shetty, President made a brief introduction of the host Vice President and commenced the proceedings as per agenda circulated. Shri Shashikant Shetty, Hon. Gen. Secretary presented the minutes of the 9th Monthly Managing Committee Meeting held on 3.10.2012. The house unanimously approved the minutes and was proposed

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Health were also present. The meeting lasted for more than 1 hour. The delegaion presented a memorandum of grievances. He sincerely thanked Shri Gangadhar Shetty, VP, Zone-II for coordinating and arranging the meeting. He also thanked Shri Santosh R Shetty, advisor for leading the delegates. The main points of memorandum presented to CM are Abolition of Place of Public Entertainment License [PPEL] and Eating House Registration Certi icate [RC] issued by Police. Secondly, abolition of Liquor consuming Individual permits and separate permit room enclosures in a Restaurant [demarcation]. Thirdly, to remove BMC License 394 in lieu of new FSSAI Certi icate. Fourthly, to form a high power committee to address the grievances of the Restaurateurs with Chief Secretaries of Police, Excise, Home in the team and under the aegis of the CM. He further said that he is happy to inform that the CM has constituted a High Power Committee as requested by us under the chairmanship of Shri Amitabh Rajan, Chief Secretary, Home which will study the current 70 regulatory and licensing conditions and try to curt them down to fewer than 5 [TOI-28/10/2012]. It will submit its report within 3 months. The Panel will have secretaries of Police, Excise, Home, Urban Development, Tourism, Labour and FDA. The AHAR delegate met the Commissioner of Police Shri Satyapal Singh on 10.10.2012 and presented him with main grievances of hoteliers with Police Department and discussed the same. The main points were Issue of P.P.E.L to FL-III Licensee, requirement of Parking for renewal/issue of new PPEL license, dilution of P.P.E. licensing conditions for practical purposes- Rule No 8[1],8[2],14A, Transfer License into Legal heirs name, giving Restaurant Business on conducting Basis. As the licensing conditions are causing practical dif iculties to the hoteliers, we requested him to look into the matter and do the needful for Suspension of P.P.E.L. BEST in its latest bills has added an amount ranging from 20-25% as Transport Division Loss Recovery from the electricity consumers. We have formed a committee and are considering the possibility of iling suit in SC against this imposition. Since the expenses will be huge and AHAR can not afford to bear it alone, we are approaching other affected Associations like FAM, RTWA etc for their support. In a meeting held on 25.10.2012 at AHARs of ice, Shri Mohan Gurnani, FAM President said that since the expenses are huge we should make efforts for creating public awareness in this regard through pamphlets, press conference, brochures, meetings etc. and request the consumers to shift from BEST to TPC. Our member Shri Guruprasad Shetty is ighting against the BEST in Delhi for his right to switch over from BEST to TPC as allowed in electricity Act. However, he is alone and ighting a giant like BEST for the bene it of all our members. It is the unanimous decision of the house to support him in his ight, which will be bene icial to all by sanctioning an amount of Rs.10 lakhs as legal fee support. This was proposed by Shri J. D. Shetty & seconded by Shri Prakash Shetty. A joint meeting of advisors, representatives from Zone-I and II was held on 18.10.2012 at of ice regarding Food Allowance deductions. After lengthy discussion, as there were confusions regarding the same, a committee was formed under the chairmanship of Shri A.B. Shetty, advisor with Shri

Vasant Shetty, Ex-VP and Shri Gaurang Shah, Ex-Treasurer as committee members and Shri Santosh Shetty advisor as the coordinator. The committee will study the matter for the deduction of Food allowance from the salary of the hotel employees then refer it to experts and will submit its report on the same. On receiving the same the Managing Committee will decide its future course of action. The Labour Minister had agreed to meet AHAR representatives in the second week of November to discuss the relevant matters like deduction of food allowance, minimum wages hike and child labour age etc.

FSSAI: The committee formed for the purpose is doing its

ground work, collecting legal opinions etc. On getting all inputs, they will decide about iling of WP against certain provisions of new FSSAI Act, which is affecting our hoteliers. In case of any harassment by of icials of MOH-MCGM like checking the food items, checking the kitchen etc. it can be brought to the notice of the Joint Commissioner [FDA] on the spot. You can also take help of AHAR of ice in this regard. Adivsors Shri Santosh R Shetty, Shri Chandrahas K Shetty, Shri Datta Kadam addressed the audience and appreciated the efforts of the present committee and requested the members to support it. The VPs and the chairmen of the Sub Committees presented the details of the work done by them during the course of the month. The chief guest of the meeting Shri Gopal Shetty, MLA, was felicitated by the President, Secretary, Host Vice President, the advisors and the senior hoteliers of the region. He said it is the high time that all hoteliers should unite and ight vigorously against the harassment meted to them by various authorities. He also advised our association to have a meeting with MLAs of all the political party to discuss the grievances and request them to raise the same in the ensuing assembly sessions. He assured his support in BESTTDLR matters and requested the of ice bearers to submit him a memorandum in this regard.

Condolence: The house prayed for eternal peace of Shri

Jaysheel Shetty, brother in law of Shri K. Y. Shetty, Krishna Palace on 23.9.2012. Shri Ramanna Hegde father of Shri Manmatha Hegde, Hotel Divya, Dahisar on 8.10.2012. Stall Support from Unify Design, Menson, Food Guard, McCain Foods India Pvt Ltd,First Energy, Sahara India Pariwar, H.G.Tours and Travels were whole heartedly thanked.

Vote of Thanks: The Hon. Gen. Secretary, Shashikant Shetty thanked the President for conducting the meeting in a digni ied way, Host Vice president Shri Anil Salian for arranging the meeting, Karnataka Malla & Udayavani for media support, Vendors for their Stall support, Management of Hotel Ivy Banquets, USL, JIL for sponsoring liquor & Sabmiller

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11th
T

Managing Committee Meeting

9 ex of ice bearers, 10 Senior Hoteliers, 2 President Nominees along with cash award to the employees children securing highest marks in SSC and HSC honoured.
to the Excise Minister regarding our grievances. The Delegates also met Shri Subash Jadhav the Chief of Maharashtra Flying squad and requested him not to harass the licensed hoteliers and take action against the illegal joints. A Months back our delegation met the Commissioner of State Excise and requested him to restrict the use of lying squad raids to illegal joints and not on legally run bars. He has given the instruction to the Flying Squad only to raid the illegal joints. Delegation of AHAR met Shri Bodke the New Supdt of Suburbs and appraised him about the pending issues. AHAR as well as a number of BEST electricity users of south Mumbai has sent their objection against the petition of BEST to MERC for hike in electricity tariff, which is already the highest compared to other electricity providers. A number of hoteliers using BEST electricity have sent their objections to BEST petition. Member using BEST electricity are requested to gather on 29th of this month at MERC, Cuffe Parade at 11.00 a.m to air their protest against the hike. We are approaching like minded Associations for support and awareness. Shri Mohan Gurnani,FAM met us in our of ice and assured their support in creating public awareness in this regard. The hearing in Service Tax matter has been posted on 5.12.2012. The judge has instructed the Service Tax Department not to issue any further notice or reminder to any hoteliers till 5th of December 2012, as Service Tax Department has failed to ile its reply.. In FSSAI matters, we have got the draft petition prepared by experts challenging many provisions of new FSSAI ACT. We will decide the future course of action including iling WP. A memorandum is sent to Shri Veerappa Moily, Minister for Petroleum regarding exorbitant hike in LPG prices which will result in closure of small hotels. A memorandum is also sent to Shri Veerappa Moliy for expediting the supply of piped gas in south Mumbai. The Municipal Commissioner has proposed giving permission to Roof Top Restaurant that is happy news. The BMC is also regularizing the roof top restaurants by charging premium.

he 11th Managing Committee Meeting of Indian Hotel & Restaurant association [AHAR] was held on 26th November 2012 at Hotel Moksh, 247 Park, L.B.S.Marg, Vikhroli [W], Mumbai. The meeting began with lighting the lamps by Advisors Shri Chandrahas.K.Shetty, Shri Narayana M Alva, President Sudhakar Y Shetty, Hon. Gen. Secretary Shri Shashikant Shetty and host Vice President Shri Sunil Patil. Host of the meeting Shri Sunil Patil, VP, ZoneVI welcomed the gathering and expressed his gratitude for support by his members. Shri Sudhakar Y Shetty, President made a brief introduction of the host Vice President Shri Sunil Patil and commenced the proceedings as per agenda circulated. Shri Shashikant Shetty, Hon. Gen. Secretary presented the minutes of the 9th Monthly Managing Committee Meeting held on 3.10.2012. The house unanimously approved the minutes proposed by Shri Sukesh Shetty and seconded by Shri Prasanna Shetty. Shri Nitin Shetty, Hon Treasurer presented the accounts of Ahar and Orchestra Bar for the months of October 2012.The house unanimously approved the accounts proposed by Shri Chandrahas K.Shetty and seconded by Shri Narayna M Alva. Addressing the gathering, President Shri Sudhakar Y. Shetty briefed: Delegation of AHAR met the CM, Maharashtra on 5.10.2012. Main demands forwarded were: Abolition of PPEL & RC, Abolition of Permit & demarcation, Removal of BMC License in lieu of FSSAI License, Formation of High Power Committee CM appointed a High Power committee headed by Shri Amitabh Ranjan, Chief Secretary Home along with Secretaries of other departments of Police, Excise, FDA, Labour, and Tourism etc. The committee was advised to submit its report by 3 months after meeting and discussing with AHAR representatives. Meeting with Shri Satej Patil, Minister of State for Home, Government of Maharashtra As per direction of the Chief Minister, Shri Satej Patil, Minister of State for Home had convened a meeting of AHAR and the Police authorities to discuss about the decades old Police acts and need of amendment at his cabin on 8th of November 2012. High ranking of icials from Police and Excise along with representatives of AHAR attended the meeting and submitted the list of main grievances with Police Department. Shri Satej Patil heard from both sides and was very positive in his approach. He said he will forward his pragmatic report to the Chief Minister. The delegates included Shri Santosh Shetty, Advisor, Shri Sudhakar Y. Shetty, President, Shri Shashikant Shetty, Hon. Gen. Secretary, Shri Shivanand Shetty, Shri Arvind Shetty, Vice Presidents and Shri Shashidhar Shetty, Chairman, Excise committee. Delegate of AHAR met Shri Gatole, Joint Commissioner State Excise and reminded him of our proposal to be sent

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JULY - DEC 2012 On the occasion Shri Kamlakar Shenoy and Adv. Balkrishna Shetty briefed about the BEST electricity matters and pour ight with MERC. Shri Bharat Thakur, Chairman, Orchestra Bar committee said that their case in Supreme Court may come for inal hearing by end of December and they expect a positive Verdict by the Supreme Court. Shri K.K.Mahale appreciated the efforts of present committee. On the occasion Shri Chandrahas Shetty, Advisor the awareness of various rules and regulation is must for hoteliers. Sri Naryana Alva said that unity and support are the two vital things which makes a organization strong.

33RD AGM: The 33rd AGM will be held on 19.12.2012 at

Buntara Sangha Auditorium, Kurla, Mumbai. M/s Mad crock energy drink will be the main sponsorer of 33rd AGM. The Mg Committee members, Special invitees and co-optees should attend the event at 9.30 a.m. without fail. We are attempting to increase the number of stalls to make maximum use of available space at the Venue. Members are requested for canvassing and bringing vendors to sponsor the stalls. We will be honoring 9 ex of ice bearers, 10 Senior Hoteliers, 2 President Nominees along with cash award to the employees childrens securing highest marks in SSC and HSC. Hence the members are advised to be present at 3.00 p.m sharp. We will also be felicitating the employees childrens who had excelled in Sports, culture etc in State and National level. Members are advised to submit such names immediately to the VP or Of ice. All the VPs presented the details of the work done by during the month.

Condolence: The house prayed for the eternal peace of the

departed hoteliers, Shri Balasaheb Thackeray and the 26/11 victims. The meeting was concluded with vote of thanks by Shri Shashikant Shetty, Hon.Gen.Secretary

AHAR CSR INITIATIVE

Eye camp organised by Zone - I under VP Shri Shailendra Shetty

Eye camp organised by Zone - III under VP Shri Shivadnand Shetty

Eye camp organised by Zone - VI under VP Shri Sunil Patil

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Hospitality industry needs introspection

By Ramachandran N. V.

arketing hospitality sector is very precariously balanced on two forces sweeping the industry. Macro forces, things that affect the market completely outside control and Micro Forces, things those are happening in the market or industry. The former is beyond one's control, whereas, the latter can be in luenced, if not controlled. Business hotels provide a typical example of Macro Forces. They are largely dependent on economic conditions that prevail, not only within the country but also worldwide. With fast-changing and ever evolving economic changes, the dynamics of business travel is highly notable. It is crystal clear how some markets in the US and Europe has been more severely affected by the recession. It is high time we made introspection and got into the rooted problems faced by the hospitality industry. If the British, the Germans and the Americans are not travelling (thanks to Euro turmoil) then who is thronging the travel sector? Clearly one can see a lot more Asians are travelling. In fact, we can call this intra-regional movement. (Business Hotel Survey Business Indian June 24, 2012.) Remember, comparing to Europeans and Americans, Asian are more prudent and are averse to splurging and launting their wealth or indulging in luxury. They are cut to this pattern of behavioral economics predominantly by choice rather than by chance. Brought up in society that puts less value in indulgence, Asians want to curtail extravaganza and go for frugality adds to this, the instability in job market and the fear looming economic recession. Other factors that in luence these intra-regional travelers are mainly weakening of Indian Rupee and the sky-rocketing of in lation. Not in the long past, luxury that used to mean something that was expensive because it was highly desirable and also scarce, but today, ubiquity seems to be the driving force of luxury and not scarcity. This paradigm shift in the behavioral economics of the people has led to the trickle-down effect with luxury brands becoming increasingly more accessible, not just in terms of physical availability but also in terms of affordability. Reason why there is a huge demand for home-stays, bed and- breakfast arrangements, ethnic boarding and lodging life style etc. which are comparatively less expensive and gratifying.

As the market matures, spending by Indian consumers or indulgence may also grow; driven by the need to satisfy them rather than for the status they could gain. In fact, another segment of travelers to watch out is a source of indulgence for foreigners -luxurious Indian experiences in which price is not the object but the experience; for example mega Indian weddings, Ayurvedic treatments, meditation holidays for baby moaners, martial arts of India's past etc. The future success of hospitality industry players mainly depends on how they dove-tail this trend with conventional services they offer to their guests. And the real catch is affordability factor. The evolution of time-share industry is a case study for mixing affordability with added value and value added services. Far from minor add-ons where one cannot increase price, they dwelled on value added services like in lation-proof holidays by offering time and location speci ic time shares. Option for larger accommodation to suit the needs of a growing family is a paragon for value added services. Introduction of points-based marketing was a water-shed strategy in selling vacation ownership packages to the upwardly mobile segment of the society. Property time share concept to location speci ic time share, the industry has taken a quantum leap forward. Move with the times of get stagnated and inally sink into the abysmal depth of extinction. This is true in every sense as far as the hospitality industry is concerned.

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JULY - DEC 2012

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