We all are aware that the restaurant business in Nepal is a tough one to compete in. Owning or running a successful restaurant business requires a lot of hard work, but simply hard work alone can�t guarantee the success. It is one component out of many other elements required. The restaurant industry is constantly evolving with new trends, tastes and preferences coming in to play every now and then. Few restaurants outgrow the success of others, while new ones try to divert the attentions of patrons to their glittering new establishments. Customers are always attracted to new establishments, mainly out of curiosity and excitement but nearly half of them do no return. The half that do, find the experience not as good as the first time and that leads to further decrease in footfall for the restaurant. As much as people love dining out, not all establishments are brimming with customers. Only a small percentage of eateries can be classified as successful in Kathmandu. The definition of successful restaurants in Kathmandu varies from person to person, but the one thing in common are the consistent flow of customers day in a and day out. New and upcoming restaurants do provide competition to established restaurants but they aren�t fazed by the competition as they believe in their ability to remain ahead of the pack. A lot of the success is based on the mutual trust between patrons and the restaurant as well. Established eateries like The Coffee Shop, OR2K, Fire and Ice Pizzeria, Tamarind, Himalayan Java, Roadhouse Cafe, Dhokaima Cafe, Third Eye, Trisara, Hankook Sarang, Villa Everest, Momotarou are few names which have spent years building trust between their guests and are among the most popular eateries in the capital.

Right now in Kathmandu, there are more than 2,000 restaurants operating right now but very few of them meet international standards. Compared to a couple of years back, the industry has been improving. However, not all are able to thrive with

[caption id="attachment_3552" align="alignright" width="366"] Tejendra Nath Shrestha
Chairman
Third Eye Restaurant, Yin Yang Restaurant, Third Eye Bakery, Caf� Tree Netra[/caption]

business. There is a very unhealthy competition in the market right now. People open their restaurants without any knowledge of the business and how to run and sustain it in the long run. They may make quick money in the first couple of months but the lack of knowledge will show itself after that. That is why many restaurants are failing these days. We are trying to open a training center for employers and employees and hope that the current scene here will grow further.

What many fail to realize is the location the restaurant is set in. Location is the most important factor when it comes to running a business. The restaurant business is a very sensitive business. Even the slightest of a bad experience can bring down your entire establishment. Our restaurants have been successful for many years due to our location. However, solely crediting the location is not right too. We have been delivering in terms of quality and taste and our service has been a consistent factor in all these years.

Our restaurants have been trying to meet international standards and always strive to better ourselves. Yes, we have a lot of competition but we try keeping our values and ideas at the forefront. That way no matter the competition, we always stay ahead of it. If many other restaurants conduct proper market research, study the competition and find the right balance between sustaining yourself while also attracting customers, then we will see a major rise in successful restaurants here.

So what sets apart successful restaurants from the struggling ones? There are multiple reasons as to why some find success while the rest struggle. However, the major reason why restaurants are successful is because of its location, food, pricing, and service. Many restaurants struggling for business may have all of the right tools to attract customers but perhaps lack the competitive edge to stay ahead of their competition. The restaurant's reputation as a venue for an enjoyable time also plays a big part in grabbing the attention of customers. Especially in this digital age where one bad review for the restaurant can have a ripple effect amongst all potential customers as their opinions may be swayed from one bad review. Almost all successful restaurants in the country have one thing in common between them. All are based in prime locations with very high footfall. Any restaurateur will tell you that the key to establishing a restaurant is �good location�. Location plays an integral part in driving people to the establishment. Locations with heavy footfall like Thamel is one that is easily accessible by all and located in an environment that is appreciable by people of all kinds. However, finding the right location is also the most difficult aspect of running a restaurant. Especially in Nepal, given the expensive real estate, not everyone can afford to establish his or her business in a prime location. This is not saying that restaurants need to be established in the most expensive or the most popular locations. Some restaurants tucked away in an alley somewhere might be as successful as a restaurant in a popular location.

Success is not defined just by the riches someone has. Success has various meanings for everyone else. However, in terms of a restaurant when you think about success, you have to think about the bottom line, which is that this is ultimately a business. Profits matter but that isn�t the only driving force. Our restaurant has been since 15 years ago. We started Dhokaima as a hub for the lower-middle-class people of Patan. This is a place for everyone from

[caption id="attachment_3564" align="alignleft" width="330"] Manoj Basnet
Managing Director
Dhokaima Caf�[/caption]

ambassadors to locals. We try to keep the place updated constantly and keep things fresh so the guests will not be bored by it. I think how we started, where we are and the constant love for the place from the people has made us into a success story.

For the first couple of years, this caf� was running on a loss but because we love this business and we were able to sustain it, we are here today because of it. We faced the problem and grew from it. Not many businesses can do this. We assume that struggling businesses don�t have a vision or enough investment but that is not true. Everyone has an idea or a goal they want to achieve but doing business in the country is not very easy because the government isn�t very supportive. Finding the right balance is very important in this industry. A major problem I see is the lack of effort in finding the balance between welcoming in guests while still maintaining profits to run the business. Either they want a lot of customers by offering very low prices that you�re running on a loss or by setting high prices that very few people come in which again is running on a loss. If you go around Jhamshikhel, only a handful of restaurants are doing well. The rest have people only on Fridays and that is not enough. All those businesses are running on a loss. Another problem I see today is that lack of knowledge among the employers. There needs to be courses or training centers available that trains people on how to successfully run a restaurant.

If you ask the secret behind a successful restaurant, the answer will be location. Apart from the location, the restaurant needs to provide at least the basic requirements such as toilet papers in the toilet or hand sanitizers. I would also say that opening a restaurant without parking is a big mistake. Almost everyone has a vehicle in the city and since people are eating out more often, lack of parking can be very demotivating for the customers. Just cooking skills or passion about food isn�t enough to run a restaurant. Lastly, any successful restaurant give people what they want rather than force people into having what the restaurant wants to give. If you must, balance the choices between what the customer wants while still maintaining options for the customers to try new things. You need to have satisfied customers to maintain a consistent flow of customers. If the customer leaves feeling unsatisfied that will harm your business. We at Dhokaima ensure that each customer that walks in through our doors leaves feeling satisfied and wanting to return soon.

Not all restaurants are clumped in a particular location. Each restaurant has a different motive or theme and different targeted customers due to which finding the right location is crucial to succeeding in the industry. For instance, restaurants offering live music performances or loud music and restaurants that offer more peace and quiet are not located in close vicinity to each other. Basing a restaurant in good locations doesn�t always prove successful too. A good example of this would be restaurants in Thamel where the significant number of restaurants are struggling with a lack of customers. Another important aspect required to succeed in the business is the food provided. People flock to restaurants primarily to eat. All the other motives are secondary. Each restaurant has a unique menu specially designed to cater to the needs of the guests. Whether it�s a fast-food joint, a pizzeria, coffee shop or a fine dining restaurant, each eatery offers something different, if not better, than the last. Based on the menu, you can clearly identify what kind of food or cuisine the restaurant has to offer. Some restaurants stick to cuisine from a particular region or country while others offer a variety of choices. While choices are important, it is also essential to keep in mind that everyone else also offers the same kind of varieties elsewhere. Serving a particular type of cuisine helps maintain the reputation and garners recognition for the restaurant. But if a restaurant is serving a particular cuisine, it must ensure that the dishes are authentic and not a fusion cuisine that many restaurants are increasingly adopting these days. An important factor that also sets apart the successful from the struggling ones is the quality of food that is served. The type of food that is expected by paying customers has reached new heights. Everyone likes to eat good food that especially when they are paying for it. Paying for a good meal is like an investment for your taste buds. Failing to provide a decent meal will dampen the guest�s experience. Popular and successful restaurants invest that extra bit of cash ensuring that the guests can have hygienic and good food. The Chimney at Hotel Yak & Yeti serves fresh food using ingredients that are organically grown in their gardens to guests. Services like these provide an extra incentive to the guests to visit establishments like these over and over again.

Initially, Hankook started in Lakeside, Pokhara back in 2002 and we slowly transitioned to where we are now. I would say that our restaurant is one of the more popular establishments right now. Hankook is a product of my love for Korean food. Ever since I went to Korea, it has always been my dream to establish a Korean restaurant in Nepal. The overall reception towards the restaurant has been overwhelmingly positive over the years and given the various changes in trends, people tend to visit our restaurant more often.

[caption id="attachment_3561" align="alignright" width="339"] Chij Man Gurung
Owner
Hankook Sarang Korean Restaurant[/caption]

It was very challenging to open a Korean restaurant in the beginning. There were few Korean restaurants at the time but in my opinion, our ability to sustain ourselves over the long term helped us immensely and we are where we are now because of it. We initially targeted tourists and slowly Nepali people became aware of the food too. I think that has helped our cause. As more people are dining out frequently, Korean cuisine has become a favorite among all age groups, especially amongst the younger generation. People don�t look for the prices anymore. It is a factor but its not the only thing people look at. Service and the quality of the food are more essential at present. If you look at our establishment, it is slightly higher priced but people don�t mind it because we have not compromised on the quality of our ingredients and the service we provide. Our customers have come to expect quality food and service of us and we always deliver.

In Nepal, we have a lot of investors looking to open a restaurant today. What they don�t realize is the difficulty that is behind the scenes. There need to be proper investments in all sections of the restaurant. Investing in quality service is just as important as your chef. People should not make compromises regarding anything while running a restaurant. The moment you make a compromise in quality or service or any other aspect, it the moment you are setting up your restaurant for failure.

Most popular eateries serve not more than two types of cuisines at the most. Restaurants like Nepali Chulo, Newa Lahana or Tasneem�s Kings Kitchen all offer a specific cuisine. Serving a particular cuisine also helps the restaurant maintain its identity and reputation as an outlet for cuisines of their choice. A major deterring factor for customers are the prices set by the restaurants. Often times the prices set by the restaurants are very high compared to the service and the food they provide. They seem to be unaware as to the amount they should be charging for their services. Successful restaurants on the other hand through much trial and error have found the right balance. They know exactly what their services are worth and given their reputation and food, people don�t mind paying a bit more if it means they had a good time. Not all successful restaurants are of very big stature. Some are small while others are bigger. If the restaurant wants to attract high paying patrons, the prices are likely to average between a few thousand rupees at the minimum whereas lower to moderate prices are targeted towards similarly paying customers. Finding the right balance between prices is tricky as people are likely to sway away from high charging establishments. In Kathmandu and elsewhere, successful restaurants don�t overcharge their guests. People dine and leave the restaurant with a feeling of having enjoyed the meal as well as not overpaying for it. Some of the restaurants do have very high prices but those restaurants target very high paying patrons. Locations of the restaurant also play a significant part in determining the prices. A restaurant in Durbar Marg may charge almost twice the amount for a similar kind of food compared to a restaurant in Thamel or elsewhere. They say that first impressions are the last, and restaurants are no exception to this. The quality of service from the moment you step foot into their restaurants to the time you leave, they will ensure that your time with them has been as pleasant as possible. Given their reputation and standards, nothing short of excellent service is provided of them. People have come to expect good service and the restaurant knows that a bad experience for a guest in any department will severely hinder their growth and reputation. The high expectation always pushes them to strive to be better. Established restaurants are constantly trying to reach new heights and set benchmarks for the rest of the industry. It is the kind of drive and desire that helps you gain success and fame as an accomplished restaurant over time.

Immediately after joining Annapurna, I tried to understand the offerings by various food & beverage venues across Kathmandu including standalone restaurants, hotels, pubs, and five-stars. It�s heartening to see many young entrepreneurs coming up with great concepts. There is fine dining, casual, relaxed amid nature, caf�, bistro, and theme-oriented setups. Cuisine focused or local Nepali famous joints in Jhamsikhel, Thamel, Durbar Marg, Bhaktapur.��I wish all these

[caption id="attachment_3560" align="alignleft" width="259"] Tripurari Singh
Director, Food & Beverage
Hotel Annapurna[/caption]

entrepreneurs� great success! However, following an idea and assuming it will be a great success isn�t the right approach. Rather it should be done after thorough market research to identify �where to play?� A restaurant business is not a quick money-minting business and requires continuous effort and engagement through different channels with the target audience.

Hotel Annapurna is one of the most iconic brands of Nepal; we have been in business for 54 years now! We have restaurants like the Ghar-e-Kabab, Arniko Room, The Coffee Shop and The Cake Shop, which have been here for almost four decades and more.�These brands have made their name in Nepal. They have evolved and consistently delivered quality food and personalized service. While restaurants around the city are usually quiet during the day, Hotel Annapurna�s Coffee Shop has footfall throughout the day. Often, we hear that location could be one of the contributing factors; however, in my opinion, our major strengths are our specialized, consistent food and service. We have a sustainable and competitive business model, and many newcomers look up to us! Personally having exposed in the hotel industry with major international brands for 15 years, it adds on to our traits of becoming analytical & starts looking at opportunities in an existing or new setup.

Many new or existing restaurants fail because of several factors, many of them can be clubbed under revenue and operations. For example, often newcomers fail to attract customers and can�t generate enough revenues, or sometimes it could also be a lack of operational discipline. Entering a hyper-competitive space doesn�t do any good, before entering a market, the focus must be on envisioning the sustainable competitive advantages first and then working towards substantiating it. As a new business in the food industry, the basis for the successful model is one, which has a strong foundation of authentic, flavorful, quality food & beverage by a distinctive way of presenting all the elements of guest touchpoints. While a great theme, appealing ambiance, and accessibility can be some key success factors, newcomers must have a zeal and passion to succeed. Everyone in the staff should work towards enhancing a customer�s experience!��Failing to do so becomes your biggest threat, as word-of-mouth spreads like wildfire.

It�s extremely important for a business to define the value-proposition they bring for their customers. Every guest could be a potential brand ambassador for your business. With success comes competition, but that�s where your competitive advantages come into play. Strength is into its product, processes & real asset is their human resources, who make things happen & drive great results.

The kind of service provided by a restaurant leaves a lasting impression on the overall dining experience. The quality of service can enhance or dampen your mood greatly. Even if the meal you had is fantastic, poor service will ruin the diner�s experience. Restaurants that have exceptional service always manage to stay ahead of the rest due to the extra care they provide in making the guests time enjoyable. Good service goes a long way in determining the future successes of a restaurant. Restaurateurs may be hesitant to invest in quality service and focus on improving everything else, but the restaurant business doesn�t work that way. Investing in quality service will pay dividends itself.

I think that the French Bakery is successful but is still in a learning process but compared to other establishments in the area. There are many other restaurants in the capital that are more successful than us but because we have tried to do something different, with the interior and our food we have remained a unique establishment and therefore been able to welcome customers successfully on a daily basis.

While opening a restaurant you should find out what the competition is around the area. You should be able to provide something different and not a carbon copy of the restaurants in the same area. We have been doing things differently and that shows in our service and the food here. We have also managed to serve food according to the location of our restaurant here. Many restaurants around us serve the same food like pizzas, burgers, and pasta. You need to be able to stand out from the rest and naturally, people will want to come to your restaurant.

[caption id="attachment_3551" align="alignright" width="356"] B. N. Shrestha
Chef/Owner
French Bakery[/caption]

One thing that I would like to advice other restaurateurs is that they remain authentic. I see a lot of restaurants fail to find their identity. They have Nepali name but serve foreign food, where is that idea coming from? They also need to ensure that customers leave the restaurant feeling satisfied with what they have paid for and naturally, their services will reach a wider audience through satisfied customers.

Another thing that many restaurants or customers focus on is online reviews these days. Yes, it is important to keep a good review which helps in the business but we should also realize that reviews aren�t everything and they can be fabricated. You see so many restaurants with very positive reviews but no one is perfect. Everyone has a flaw, no matter how small and to get that authentic experience, you should personally visit and see for yourself rather than decide against going there based on a review. Many times personally, I have seen people visit a restaurant based on positive reviews and return with a bad experience.

Regardless of how constantly the change is, restaurants at the top seem to remain there no matter the competition. They remain consistent with all the facilities they provide and are able to better themselves with each passing year. Kathmandu has plenty of potential for new and old restaurants to succeed, as people are dining out more frequently. It remains to be seen whether restaurants at the top continue to stay there or will new ones disrupt their business New restaurants with millions in investments hope to attract guests with lucrative settings but people have become aware that luxury doesn�t necessarily mean a good dining experience. People are like to visit places they trust and will continue to do so. We can only hope that new and old restaurants match and provide for guests like the successful ones have done for decades.