Cafe Idly plans to raise funds post expansion

Delicious, finger-licking idlis await your way- Cafe Idly

Bangalore –based Dinesh Bhaktinathan and Rajesh Bhaktinathan co-founded Cafe Idly back in 2009 in a city which already had many established coffee chains. Currently they have three outlets in Bangalore. In a chat with Larry Bradley, Dinesh explains what made them stand out and how they have proverbially bootstrapped and grew organically without any external funding.

How it began: We had a dream to start our own cafe / restaurant from our college days but we hesitated due to our limited budget. A regular restaurant was out of the question for a new entrant like us. In order to beat the competition, we had to stand out from the crowd.

Dinesh and Rajesh Bhaktinathan

That’s how we got the idea of combining traditional South Indian fast-food specializing in different types of Idlies but with a classic rock touch- somewhat like a mini ‘Hard Rock Café’, in terms of the music and the ambience but with traditional food. We thought that this idea has never been done before and would definitely suit the ‘palate’ of the cosmopolitan Bangalore audience, Bangalore being the rock capital of India. Thus, ‘Cafe Idly’ – ‘Idlies with Rock n Roll’ was born.

Making a mark: We had to stand out from the crowd. We believed that our success could be only through our customers, so we gave our core focus on the overall customer experience.  Also we believed that being consistent in whatever we do is more important than being the best.

Mouth-watering cuisines

Another important reason for our growth has been that we have tried to differentiate not just in terms of our concept but also in terms of our menu. Many items that are part of our menu are unique and are not that easily available in other places. For example, the varieties of Idlis that we have include- the Burger Idly, Kanchipuram Idly, Gunpowder Idly, Manchurian Idly, Paddu and others. We also have Appam / Dosa with Paneer / Chicken curry which has become hugely popular. The concept as well as menu differentiation has surely helped us a lot.

Bootstrapping: Even though there has been a lot of investor interest in our venture, as part of our business philosophy, we would like to reach a certain stage in-terms of the number of outlets, revenues, employees etc. before we look for external funding and that might happen in the next 12- 18 months.

Right now, most of our growth has been on the back of our revenues and business loans taken from a public sector bank.

Finger-licking idlis

Cost effective marketing and smart product pricing: Our unique concept did the job thereby helping us to create the required buzz in the market. We relied heavily on social media to increase our customer base.

We also focussed on smart product pricing. Our focus has always been the entire customer experience which includes the ambience, customer service, quality and general hygiene. So our customers don’t mind paying a slight premium for our products.

What could be the success ratio for a restaurant chain that combines traditional, authentic cuisine with a jazzy, modern ambience? Do share your views.