How to be an irresistible brand in an overcrowded market?

If you take Tamilnadu(a southern state in India), biriyani (chicken & Mutton) is the most adored food among everyone. Once the people of the state's purchasing power increased, everyone started to eat whatever they wanted without thinking much about their savings.

Many people see this as an opportunity to start biryani shops in the cities to cater to office goers and people who are too lazy to cook their food to take to the office.

As a result, hundreds and thousands of restaurants started to pop everywhere within ten years because starting a small biriyani restaurant was not a big deal. Most biriyani shops don't have varieties(Fish, Ducks, Quail), and it's not a concern for most people. They are only here to eat tasty biriyani to satisfy their appetite, so product differentiation is not needed. Also, considering the population, you can easily break even within months. You only need a small room for ten to fifteen people to dine and a big vessel to cook and serve.

But here's the problem, how will they increase the price?

They aren't looking to increase the price for the sake of it, but the rising cost of gas, electricity, and labor is taking a toll on their business. So, to stay afloat in their business & to protect their tiny market share from their competitors, they must differentiate themselves to run a profitable business. 

Some restaurants have started doing all kinds of malpractices to reduce costs by bribing the food safety department, and shops that can't afford to bribe struggle with low-profit margins. Some shops have raised their prices and, as a result, lost customers.

But a hotel in southern India called SEVATHAGANI BIRYANI RESTAURANT has taken an extreme position to serve its customers. Although they serve quality food, their differentiation comes from creating scarcity around biriyani lovers. They open their shop only on Sundays between 12:00 PM to 2:30 PM.

Because of this quality and scarcity-driven value proposition, many customers are drawn to their restaurants in queues to dine on Sundays. They have been doing this for the past 55 years and have never changed their value proposition till now.

"The extreme position of this restaurant and its popularity is embraced with this town. "

Differentiate or Struggle?

Creating average products for average customers is extremely difficult as the business climate is getting more competitive. So when starting small, you have to take an extreme position to serve your tight-knit customers with a stellar customer experience instead of expecting everyone to be your customers.

From the above example, you can see that Sevathagani restaurant hasn't served biriyani to everyone but for the biriyani lovers who can allocate their time to dine at their restaurant on Sundays. As the word spread all over the state (Thanks to influencers), people who visit this city for work-related matters (Tiruchy) crave to eat in this restaurant at least a single time if the time permits them.

Also, the scarcity nature of their business has given them leverage to charge more for their foods.