Case Study #4- Expand the Menu? Rohit was juggling eggs. Smooth, brown ovalsin one hand or the other for a split second, and then up, up, up in the air. First there were three, then four, then five Where are they coming from? he wonderedbut he kept his arms moving and the loops going, and the crowd in front of him cheered. Where am I? Who are these people? He wanted to look around but knew he couldnt take his eyes off the eggs. Then, suddenly, they changed into different things: a chicken leg, a courgette, a tomato, a potato, and a bag of lentils. He tried to keep juggling, but his fingers slipped on the slick chicken skin, he tossed the lentils too low and the potato too high, and everything came crashing to the ground. He looked down, but the mess wasnt what he expected. All around him were broken eggs dozens of themwhites and yolks oozing out through splintered shells. He woke with a startsweaty, heart racingand looked from side to side. To his left was Anaya, still sleeping. To his right, his nightstand and alarm clock; it was midnight. Rohit sank back into his pillow, breathed for a moment, and started to chucklequietly, so as not to wake his wife. He was the founder and CEO of Yolk-ay, a popular United Arab Emirates restaurant chain that specialized in traditional Indian egg preparations but was, as of that morning, considering expanding its menu. The dream was pretty easy to interpret. TEN YEARS EARLIER Dad, you have to try this. Try what, Vikram? Rohit asked, putting down the Sunday paper. Hed been staring at an ad for the hotel where he worked as a bell captain, wishing that superior service had been listed alongside luxury spa, five-star restaurant, and rooftop pool. He felt underappreciated, and so did his team. At least he had the morning off. Anaya was making breakfastegg oats upmaand it smelled delicious. Put this in your palm and squeeze as hard as you can, Vikram said. Because I want yolk all over my hands? It wont break. I promise. Rohit was skeptical, but his 19-year-old son rarely initiated conversation nowadays, so he did as he was told. He squeezedwith all his might. But he couldnt crush the egg. See? Vikram said. The shape helps it withstand the pressure. Very interesting, Anaya said, putting breakfast on the table. Indeed, Rohit said, smiling and setting the egg aside. I miss your food, Ma, Vikram said, mouth already full. He had started university the previous fall and was home only on weekends. I cant get a good upma to save my lifenever mind masala omelets or egg curry. You should open a restaurant next to the dorm. Or even a handcart like the one that taxi driver in Vadodara took us to when we were visiting Dadu and Nanu last year. Remember how good those fresh omelets were? Im telling you, there are so many Indians on campus. My friends and I would be there every day. So would the professors. Those egg dishes are easy. You could learn to cook them yourself. Isnt there a kitchenette in your dorm? Anaya asked. No time, Vikram replied. Class, cricket, parties His mother frowned at the last point. And soon there will be work, he added hastily. Im applying for a summer internship at Sony in Dubai Internet City. Now, theres a place you should open a restaurant. Its crawling with transplants from Mumbai, Chennai, Delhi, Bangaloreall in their twenties, all away from home. Everyones coming for the jobs, just like you and dad did. Youd make a fortune. Rohit hadnt touched his eggs. He was too busy listening to his son outline the business idea that would change both their lives. FIVE YEARS EARLIER We did it, Dadthree new restaurants in three months. I know you thought I was crazy when I suggested it, but we couldnt let Tikka House and Raja Cooks steal such prime retail spots from under our noses. There will be literally hundreds of new workers moving into this area and the others over the next year, and we really need to be the ones increasing our supply to meet that demand. Did you learn that in your business school classes? Rohit teased. He felt so proud of Vikram he thought he might burst. When they had opened the first Yolk-ay restaurant, five years ago, his son had been a scrawny college student, welcoming customers at the door with flyers hed printed at a local copy center. Today, armed with an MBA from the Emirates Academy of Hospitality Managementwhich hed earned while working as a cashier, cook, restaurant manager, supplier liaison, and, finally, COOhe was a full-grown man and a fully-fledged partner in the business. They now had five locations, including the three new ones, spread across Dubai, Abu Dhabi, and Ras Al Khaimah, in office and residential areas with high concentrations of Indian, Pakistani, and Bangladeshi expats. The restaurants were known across the Emirates for having the best egg dishes west of Okha, made with local farm-fresh ingredients, priced affordably, and always served with a smile, for breakfast, lunch, and dinner. Both Rohit and Vikram could recite the pitch in their sleep, theyd given it so many times to financial backers, customers, and journalists. Thanks to hit radio adsdeveloped by Vikram and featuring his and Rohits voices touting the health benefits of eggsthe father-son duo had even become minor local celebrities: expat entrepreneurs made good. Yolk-ays 2010 turnover had been two million dirhams. With the expansion, they hoped to double that amount this year. The restaurant theyd just opened, near the Mall of the Emirates in Al Barsha, had been packed all day. Where to now? Vikram asked. Home, Rohit said. Your mother is waiting for me, and Im sure Gretchen is waiting for you. Vikrams German-born wife of one year was pregnant with twins and due in just a few days. I meant, which locations should we start scouting next? There is huge growth in Sharjah. Tikka House just opened therea little too early, in my opinionbut Ive heard rumors that both Infosys and Tata are considering moving significant numbers of employees there next year. I could put Arundhati on it. Vikrams college friend was working at Yolk-ay, focusing on new business development. I appreciate your enthusiasm, Vikram, but lets make sure the new restaurants are running smoothly first. We dont want to spread ourselves too thin. The quality has to stay the same across all our outlets. Thats what were known for. Thats our promise to customers. I promise it will, Dad. Ill see to it. And over the next five years, he did. THAT DAY Dadu, Dadu. Rohits grandsons rushed into his arms. They were turning five today and had asked to have a party with their preschool friends in the original Yolk-ay, in Dubais Al Karama. Because their birthday fell on a Monday this year, the one day of the week the restaurants were closed, Vikram had asked Rohit, and of course Rohit had agreed. The boys were the light of his life, and no matter how many Yolk-ays there now weretheyd opened the eighth location, in Sharjah, a year beforethis was still his favorite. It felt like home, especially this morning, since Anaya was cooking in the kitchen. Hed told her he would ask the staff to come in and handle everythinghis employees were like family, after allbut shed insisted. Your chefs might cook for every twenty-something in the Emirates nowadays, but theyre not going to cook for my grandsons on their birthday, shed told him. Vikram was right behind the boys, carrying presents, which he set down on one of the caf tables. Are you ready for 10 more toddlers running around this place? he asked. Of course, Rohit replied. Theyre the next generation of customers! At least we have an hour until they come. Does Ma need help? Ah, never mind, Gretchen is already on her way. Indeed, Rohits daughter-in-law had given him a quick kiss on the cheek and then darted behind the counter and through the double doors into the kitchen, shouting Boys, be good! as she went. Is she talking to us or to them? Rohit joked. I brought some trains to keep them occupied, Vikram said, pulling the toys out of a rucksack. Great, lets play. Actually, Dad, I was hoping we could talk business for a second. Have you thought about the discussion we had with Arundhati last week? Sureweve hit a dead end with geographic expansion. Thats fine. We can focus on the existing restaurants for now. Yes, but turnover has been flat for the past few months, and we seem to be losing market share to Tikka House and to western competitors like KFC. Of course, we still have loyal customers who love us for the familiarity, but we dont seem to be winning new ones. The excitement isnt there anymore. Thats why Arundhati and I think we need to start expanding in other ways. Are you talking about home delivery again? I thought wed agreed that our dishes dont travel as well as theyd need to. No one wants cold eggs. Actually, people do want us to do home and office delivery. According to our customer surveys, they want it desperately. Theyre getting it from every single one of our competitors. But youre rightmaybe they dont recognize the reduction in quality that would come with the convenience. The chefs have been adamant on that point, and Im not going to argue with them, or you, about it again. Good, Rohit said. So lets talk about the menu. What can we add to spice things up? The chefs in the test kitchen were working on some new preparations yesterdaya recipe one of them got from his great-aunt, another from a cookbook that just came out in America. Egg dishes? Of course, Rohit said. Yolk-ay is eggs. Our brand, our marketing, our genesiseggs. Only eggs, for ever and ever? Couldnt we consider adding some vegetarian and chicken dishes, with poultry and produce sourced from the same farms as our eggs? We already have solid relationships with suppliers, and theyd love to do more business with us. Theyve been begging us for years. Of course they have. It would mean more money for them. More for us, too, I think. Arundhati and I asked a few questions about this in the last survey. A full 48% of respondents said they would come to Yolk-ay more frequently and spend more each time if we had a more varied menu. And what did the other 52% say? Vikram ducked his head sheepishly. They said they were happy with the menu and probably wouldnt change their routinebut Dad, remember that these are our most loyal customers, people who really love their eggs. Imagine if we did a broader survey of all quick-service restaurant diners everyone who goes to Tikka House or Raja Cooks or KFC. If we asked them what would bring them to Yolk-ay more often, you know theyd say more offerings. Weve always said that if you try to do everything, you wont do anything well. I dont want us to do everythingjust a few more things, enough to get people talking about us again, enough to make sure this business keeps growing, for me, for you, for your grandsons. What does Sunil think? Yolk-ays head chef was a traditionalist; Rohit couldnt imagine suggesting this type of expansion to him, much less insisting he execute it. There would be huge implications for the kitchen staffsnew ingredients, equipment, and stations; additional training; a whole new way of working together. Actually, we asked him to do a small, unofficial market test on Friday. Dont be madit was impromptu, just something Arundhati and I thought up that morning, a tiny experiment. We brought him the ingredients for those samosas he made for last quarters company party, and he grumbled at first but finally agreed to make a batch to hand out as samples to the lunch crowd. People loved themcouldnt get enough. And Sunil was grinning from ear to ear. So he wants to expand the menu too? Not exactly. He talked my ear off about the havoc it would wreak on his systems. But I think we could bring him on board if we had your support. I dont know, Vikram. Can we talk about it at the office tomorrow? I thought we were here to eat cake and watch a clown do some juggling. Sure, Dad. Sleep on it. Well talk tomorrow. THAT NIGHT Rohit was still at the party, and the twins were opening the last of their gifts, tearing into identical boxes wrapped in yellow paper and tied with red bows. They were quite largeHad Vikram bought them those monster trucks?but once the boys had them open, it looked like only white tissue paper was inside. They pulled out sheet after sheet after sheet, flinging them across the table, until finally, simultaneously, they reached in deep and pulled out their prizes. In Rezas hand, hoisted above his head, was a perfect brown egg. In Wolfgangs, a chicken leg. Both boys were beaming. Rohit woke again with a start and turned to the alarm clock: 1 AM. Two dreams in one night about the same thing: Vikrams proposal. But what did they mean? Stick to eggs, or not? Question: Should Yoly-ay expand its menu offerings? Or stick it its roots? Assignment: Submit a 1-page, single-spaced, size-12 font, written document explaining if you think Yolk-ay should expand its menu offerings, or if you think they should stick to what they know and are great at.