Revealed! The secret behind Rameshwaram Cafe's INR 50 crore annual turnover

Passion can take you places, but only when you believe in it and yourself too. This might sound like a line of wisdom, but there exists a couple who are living it as the proud owners of Bengaluru's famous Rameshwaram Cafe.

The Rameshwaram Cafe is a premium South Indian chain of QSR modules and is a trademark registered under the mother company, M/s. Altran Ventures Pvt. Ltd. Founded by Raghavendra Rao and Divya Raghavendra Rao, it is a pure vegetarian restaurant that offers South Indian dishes from 6.30 AM to 1 AM.

As per the website of the cafe, they both started the cafe with the aim to providing original, unfiltered South Indian flavors globally. Over the years, both the founders have received many awards and accolades for their impeccable contributions in their respective fields.

On Friday, the 3-year-old cafe suffered a blast in which five people were injured. As per the police report, the blast was caused by a suspected cylinder explosion at the eatery.

The Instagram page of Rameshwaram Cafe describes it as a "Premium Veg Dakshin Bharatiya Cafe''. It is located at various locations, including Indiranagar, JP Nagar, Brookfield, and Rajajinagar in Bengaluru and Madhapur in Hyderabad.

Also Read: 8 lesser-known facts about Bengaluru's Rameshwaram Cafe

Why the name Rameshwaram?
As per the website of the cafe, it was the dream of the founders to launch “The Rameshwaram Café” as a premium, pure vegetarian South Indian chain of quick service restaurants. The dream transformed into reality in 2021 with the successful launch of two outlets in Bengaluru. The website states, "The name ‘Rameshwaram’ was chosen by founders to pay tribute to Dr. APJ Abdul Kalam, as it was his birthplace. It holds true to its value of authenticity and the expansive flavours of South India. In the chaotic cacophony of extroverted leaders, Dr. APJ Abdul Kalam led the nation with his patience, dedication, and charming old-school ways. At Rameshwaram, we look up to him in every form and draw inspiration from the way he lived — holding ground in grandeur."

The secret to success
What makes it a leading name in the business is its quality foods and its monthly turnover, which is said to be around INR 4.5 crore. As per reports, the cafe processes around 7,500 bills every day with a gross margin of approximately 70%. As per experts, the success is also credited to the QSR business model, which has helped the business grow in other cities too.

As per the data published by the Business Rule website, the market valuation of the chain is Rs. 18,800 crore, and the franchise cost is between Rs. 10 and 15 lakhs, whereas the franchise fee is between Rs. 2 and 3 lakhs. And most importantly, the annual turnover of the cafe is approximately Rs. 50–54 crore.
What is a QSR business model?
A QSR business model stands for Quick Service Restaurant. It's a type of restaurant format that focuses on providing fast and efficient service to customers. The key features of such a business model are speed and efficiency, a limited menu, standardization of foods, takeaway and drive-thru facilities, affordability, and a franchise model.

As per the Magic Pin website, the price point of the cafe ranges from Rs 30-Rs 200, and the popular dishes include Ghee Podi Idlis, Ghee Thatte Idli, Ghee Podi Masala Dosa, Open Butter Masala Dosa, Garlic Roast Dosa, Akki Roti, Gongura Rice, Ven Pongal, Vada, Ghee Sambar Button Idli, and filter coffee.

Thumb and Embed Images Courtesy: istock and Instagram/rameshwaramcafe