Harajuku Tokyo Cafe sets sights on national expansion with plans for 90 outlets across India – Lifestyle News

Harajuku Tokyo Cafe, a Japan-inspired quick-service restaurant (QSR), brings the vibrant essence of Tokyo’s Harajuku district into a unique dining experience. Founded by Gaurav Kanwar after being inspired by Japanese cuisine during his studies in the UK, the cafe debuted in 2021 at Select Citywalk Mall, Delhi. Due to overwhelming customer response, it quickly expanded its presence across multiple locations in Delhi/NCR, including Ambience Mall and M3M IFC Tower in Gurgaon.

Embracing Japanese pop culture and innovative culinary offerings, Harajuku Tokyo Cafe boasts a diverse menu and an Instagrammable ambiance that attracts a wide range of customers. The brand has achieved remarkable growth, boasting a 243% year-on-year increase. With ambitious plans to scale to 90 outlets in 20+ cities, including Mumbai, Bangalore, Pune, and Chandigarh, Harajuku Tokyo Cafe aims to bring its unique fusion of Japanese street food and culture to the broader Indian market.

In an exclusive interview, Kanwar shares his journey and provides detailed insights into the brand’s expansion strategy.

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1. Can you share the journey of establishing Harajuku Tokyo Cafe in Delhi NCR, including the initial customer reaction and how the brand has evolved since its inception?

While studying for my master’s at the University of Warwick, UK, I developed a huge liking for Japanese food which was easily available at market food stalls and campus restaurants. After returning to India to join the family business, I realized that Japanese street food and bakery were almost completely unexplored in our country and would be a very interesting food trend. I went to Japan to explore this idea further, walked the streets of Tokyo and Osaka to sample street food, visited numerous bakeries and bread factories, and met up with Japanese chefs. I then decided to pursue my passion for food & my vision for bringing unique dining experiences to India, in the form of my first F&B venture, Harajuku Tokyo Cafe – inspired by Harajuku, a district in Tokyo, which is the center of Japan’s most vibrant teenage cultures and vibrant cuisine.

The first outlet was launched at Select Citywalk Mall, Delhi, in 2021, initially occupying a modest 600 sq ft space with seating for 12 guests. The initial response was overwhelmingly positive, with customers appreciating the unique offerings and the quirky, Instagram-worthy ambiance. The cafe’s popularity quickly grew, leading to the expansion of the first outlet into a 1200 sq ft, 45-seater casual dining restaurant.

Over the years, Harajuku Tokyo Cafe has evolved by expanding its presence across Delhi/NCR, including outlets at Ambience Mall, Gurgaon, and M3M IFC Tower in Gurgaon, among others. Each outlet offers a distinct dining experience, from grab-and-go kiosks to a flagship restaurant and bar with a conveyor belt sushi train. The brand has continuously innovated its menu and design to keep customers engaged and excited.

2. How has Harajuku Tokyo Cafe’s growth progressed since its inception, and what are the growth figures for the current financial year?

Since its inception, Harajuku Tokyo Cafe has experienced remarkable growth. The annualized revenue has already surpassed Rs. 24 crore, with a 243% year-on-year (YoY) growth in revenue. The cafe currently operates five outlets in Delhi/NCR. The rapid expansion and positive financial performance reflect the brand’s strong market presence and customer acceptance.

3. Having established a strong market share in the NCR region, what are the next target markets for Harajuku Tokyo Cafe? What factors do you consider when selecting new markets for expansion?

After establishing a strong market share in the NCR region, the next target markets for Harajuku Tokyo Cafe include major cities across India, such as Mumbai, Bangalore, Pune, and Chandigarh. The strategic plan involves scaling the brand across 20+ cities in India, to establish 90 outlets in 3 years. Each city will host at least one to two anchor outlets that can cater to multiple smaller QSR outlets. We are executing this plan by opening our first outstation outlet in Mumbai later this year. When selecting new markets for expansion, several factors are considered: Market Demand: Assessing the demand for Japanese cuisine and the potential customer base in the target city. Competitive Landscape: Evaluating the presence of competitors and identifying opportunities for differentiation. Location Viability: Ensuring the availability of prime locations that align with the brand’s aesthetic and customer experience, as well as considering the footfall in these markets/locations. Logistical Feasibility: Considering the ease of supply chain management and operational efficiency.

4.  What strategies do you use to keep Harajuku Tokyo Cafe relevant in a constantly evolving market?

To remain relevant in an ever-changing market, Harajuku Tokyo Cafe focuses on continuous innovation and customer engagement. Key strategies include Menu Evolution: Regularly updating the menu with new and innovative offerings to keep customers excited. Customer Feedback: Actively seeking and incorporating customer feedback to improve the dining experience. Cultural Immersion: Maintaining a strong connection to Japanese culture through design, ambiance, and culinary authenticity. Digital Presence: Leveraging social media and digital marketing to reach a broader audience and stay connected with customers.

5. Has Harajuku Tokyo Cafe secured any external funding to date, and are there plans to raise additional funds to support the brand’s growth?

Harajuku Tokyo Cafe has not taken any external funding so far. The brand has achieved significant growth through internal resources and strategic planning. However, as the expansion plans progress, there is a possibility of raising funds to support further growth and development. Potential funding would be aimed at accelerating market entry into new cities and enhancing operational capabilities.

6. What insights from your market research have shaped Harajuku Tokyo Cafe’s expansion strategy? Additionally, how do you maintain the quality and authenticity of your products across various outlets?

Market research has provided valuable insights that have shaped Harajuku Tokyo Cafe’s expansion strategy: Rising Demand for Japanese Cuisine: The increasing popularity of Japanese cuisine among Indian consumers has been a key driver for expansion. Preference for Experiential Dining: Customers seek unique and immersive dining experiences, influencing the design and ambiance of new outlets. Urbanization and Lifestyle Changes: The growing urban population and changing lifestyles favor the convenience and appeal of QSR formats. To ensure the quality and authenticity of products across different outlets, the following measures are implemented: Centralized Sourcing: Key ingredients are sourced directly from Japan to maintain authenticity. Standardized Training: Staff undergo intensive training in Japanese cooking techniques and quality standards. Consistent Processes: Standard operating procedures are established for all outlets to ensure uniformity in preparation and presentation. We operate a 15,000 sq ft central kitchen, which plays a crucial role in standardising more than 85% of the cooking processes across all outlets, ensuring consistent quality and taste for our customers.

7. What are the major challenges Harajuku Tokyo Cafe has encountered during its expansion?

The biggest challenges faced during Harajuku Tokyo Cafe’s expansion include: Pandemic Resilience: Launching and expanding during the COVID-19 pandemic required constant adaptation to changing regulations and consumer behavior. Supply Chain Disruptions: Ensuring a consistent supply of high-quality ingredients amidst global supply chain disruptions posed significant logistical challenges. Operational Management: Managing operations across multiple outlets while maintaining consistency and quality was a complex task. These challenges were overcome through adaptability, innovative solutions, and a strong commitment to customer satisfaction.

8. In what ways does Harajuku Tokyo Cafe stand out from other Japanese F&B brands in the market?

Harajuku Tokyo Cafe differentiates itself through several unique aspects: Cultural Immersion: The cafe offers an immersive cultural experience, replicating the vibrant atmosphere of Tokyo’s Harajuku district with quirky design elements and interactive features. Innovative Menu: The menu includes a diverse range of authentic Japanese desserts, street food, and beverages, crafted with precision and creativity. Customer Engagement: The cafe’s Instagram-worthy ambiance and engaging social media presence attract a broad and enthusiastic customer base. Quality and Authenticity: Harajuku Tokyo Cafe emphasizes the use of high-quality, authentic ingredients and traditional Japanese techniques, ensuring a genuine dining experience. By focusing on these differentiators, Harajuku Tokyo Cafe has established a strong and distinctive brand identity in the competitive F&B market.

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