Inside Rameshwaram's ₹50 Cr "Dhanda"💰
A small eatery making over ₹4.5 Cr monthly revenue.
Welcome to the 148th edition of the GrowthX Newsletter. Every Tuesday & Thursday I write a piece on startups & business growth. Today’s piece is going to 95,300+ operators & leaders from startups like Google, Stripe, Swiggy, Razorpay, CRED & more
Rameshwaram does ₹50 Cr "dhanda" every year 💰
All of it without being on Swiggy/ Zomato is insane 🤯
Here's why Rameshwaram is the inflection point ⬇️
We formally launched an very interesting referral program last week, go check it out and see how we implement stuff that we talk about. Referral is the core distribution for any freaking product, religion or even content piece.
Quick context 🗓
I wrote a piece on Rameshwaram about a year ago. The south India restaurant was pulling in crowds to it's Indiranagar eatery.
Everyone in 2021 thought (including me) 🥹
"This is just the FOMO crowd & the initial attraction will go down massively once Rameshwaram completes first few months of operation".
Fast forward May'23 ⚡️
The single eatery does around 7500 orders a day grossing ~₹4 Cr every freaking month. The growth rate can compete tech business valuations on how fast all of this has happened.
Why Rameshwaram’s ₹50 Cr is a sign of inflection? ⬇️
1/ Quick service restaurant is localising 📍
The Rameshwaram owners spent lot of time understanding the local market gap. The chain focuses on finding areas which lack a south Indian specific QSR brand. Look at all their 3 locations in Bengaluru.
2/ Lifestyle Vs scale mindset 🙏🏽
Most Indian chains are moving away from building a "lifestyle business" that is built/managed by a single family to a scalable org structures. This is allowing venture capital to enter & solve capital constraints to scale.
3/ 'Brand' is getting it's due attention 🎯
Have you seen the basic stuff Rameshwaram does? Check their logo? It's designed well - every small branding aspect is well taken care of. Something most local chains didn't pay much attention to.
4/ Growing categories 📊
If you think which local brands (QSRs) have solved for scale - all operate in categories that are growing. Core to why you see south indian restaurant category growing Vs a Tacos / Burger as a category.
5/ Consistent product experience 🟢
Finally, standardisation is kicking in forcing front end and back end ops to have consistent quality. This solves for a consistent taste all year round .Go study how Rameshwaram does back ops for over 7500+ orders with a 20 X 30 ft location.
6/ Social first distribution 📸
Just go to Rameshwaram's location on Instagram, you will 1000s of pictures being taken every single day and posted on Instagram/Twitter. This is creating an ever sustaining loop that solves for newer customers & repeat customers getting that reminder to walk-in again.
That's all for now ❤️
I'm pumped to see a local eatery scale & compete with foreign brands right here in B'luru. Exciting times for localised brands to really nail tech like scale on revenues.
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I’m glad to see you include the visual brand as something that is helping Rameshwaram. Too many companies skip this step because they don’t realize a strong visual identity can help to differentiate from the competition. Plus it can be an indicator of quality for the entire company.