Case study of bajeko sekuwa

Expansion Strategy of
Bajeko Sekuwa
Case Study
Vol. 1
Written by: Anusha Kadel,
Bibek Aryal, Sagar Khanal
Published by: Glocal Pvt. Ltd.

Page | 2 Bajeko Sekuwa | www.case.glocalnepal.com
BAJEKO SEKUWA: THE INCEPTION
The legacy of Bajeko Sekuwa signifies the sheer passion of using an
ordinary art of roasting meat to a strategically successful profit- earning
venture. The journey from a small stall in the premises of Airport in
Kathmandu to the stage of Nepal's leading chain of restaurants has
been an inspirational flicker for all the aspiring entrepreneurs. Initially
commenced by Mr. Dinanath Bhandari and Mrs. Jamunadevi Bhandari
with a capital investment of less than Rs.3000, backed up by the passion
to serve "Mitho Sekuwa", has proved to be the synonym for authenticity
with objectivity. Bhandari with self-learnt art of roasting meat together
with a pan, coal and bicycle spokes started up the business. The basic
profit motive has been adequately complemented with its worth
counting services to its valued customers and hence has been
prospering day by day.
Not many years after the business started, the trend of incrementing
profit had been sited. Had not Mr. Chetan Bhandari (Chairman, Bajeko Sekuwa) ventured out the expansionary
continual of the business from a roadside stall into a small rented room in Sinamangal, Bajeko Sekuwa today
wouldnot have, however, attained the currentsuccess level. Chetan cameupwith the idea of shifting their street
shop to a rented space in Sinamangal after seeing his parents being misbehaved by police. In the year 2051 B.S.,
Chetan set up a small shop with the rent of Rs. 25,000 for 4 ana land. However, his father opposed the idea. Also
on proposing the name for their sekuwa corner, Dinanath came up with the name as 'Bajeko Jambudip Sekuwa
Corner' whereas Chetan wanted only 'Bajeko Sekuwa Corner'. The etymology of the name BAJEKO SEKUWA
can be traced out taking the very name with which his father was called by i.e., BAJE and the food they served,
SEKUWA. While he was on the verge of being employed in a job, his realization of the fact that self-employment
via business made comparatively more money than the job undertaking, became the most influential factor in
his venture to run the restaurant all by himself. With the passion and idea to run the business along with
strengthening up of his economic condition, the gradual business development had been carried out and the
business had been distributed to new outlets in different parts of the city.
Chetan firmly believed that appropriate location was the primary requisite of any successful business. When he
wanted to change the location to accommodate customers to a more spacious place, his idea contrasted to that
of his father for the second time as Dinanath feared losing customers on shifting the location. However, after
three years, theyshifted their location to Gairigaun. When customs office wasbeing shifted to Gairigaun, Chetan
felt a need to open up a new outlet rather than shifting the location. He leased a land at Rs. 35,000 and rented
part of it at Rs. 15,000 to minimize the investment amount. The first outlet was being shut down due to decrease
in customers. Meanwhile, Durga Baajeko Sekuwa corner emerged as their competitor with almost the same
nameandbusinesstype.However,they wereleast affected.Intheyear2056 B.S., theyopened thesecondoutlet
in Nayabazar, Balaju which they shifted to Sorhakhutte after eight months due to termination of the rental
contract. Success heightened as customers increased by 1.5 times. After 6 years in 2062 B.S., the third outlet
was opened in Gairidhara, fourth outlet at Anamnagar in 2067 B.S. and fifth one at Battisputali in 2068 B.S.
Altogether four outlets were opened within the period of twelve years. The gradual growth that made a Sekuwa
Pasal 'The Bajeko Sekuwa' has now opened up doors for franchising.

The Brain Behind
Bajeko Sekuwa, established around four decades ago started its journey from street in the premises of airport
in Kathmandu by Mr. Dinanath Bhandari (father of Chetan Bhandari). Apparently, it has five of its own outlets in
Kathmandu and five franchises inside and outside the valley.
Mr. Chetan Bhandari (Chairman of Bajeko Sekuwa), who is serving his
business since twenty years is one of the most successful entrepreneurs
of Nepal.
It is often said that success is simple but there is no abiding success
without commitment and dedication. He recalls joining his father's
business with the interesting story of "kaan and gidi" (ear and brain).
Passion gave him the fuel that powered his success train and caused
him to tap his true potential. Despite the conflict in family, he expanded
his family business from street to structural restaurant at Sinamangal.
Moreover, the restaurant going culture was least developed back then.
People were not willing to go to the restaurant and pay higher prices.
So his father alwaysfeared loss of his valued customers. Believing in risk
taking to gain returns, his vision came in shape with the increase in
customer demands that led to the expansion of his restaurant. He had clearly
understood that people were his greatest resource. There were a lot
of challenges from the very beginning till date but he accepted risks
and moved ahead finding out the possibilities to eliminate the
challenges. He always focused on achievement and took
opportunities that shaped his success.
Mr. Bhandari's vision and mission are backed up by strategic action
plans. Even when his plan deviates from the actual results, his
commitment is inexorable. Rather, he deals such situation with
alternative courses of action. He believes in reducing the
uncertainties through action plans and there is no such thing as
failure, but these are the only results. He always says, "Good is the
worst" and prefers to be the best.
Therewerehurdlesduringhisjourneywherehefelt likesteppingback
from his business. However, he is here today because of his sheer
dedication towards his work. He is very good at identifying problems
and solving them. Business is dynamic in nature. His action plan does
not always work out but his focus, effort, and dedication to heighten
Bajeko Sekuwa is very commendable. He is now about to expand his
business all over Nepal, mostly through franchising. With a team of well- motivated and dutiful staffs, he plans
to rise. His staff admires him as an optimistic and motivating person; friendly in nature and a boss who mentors
them to bring out the best.
He started Bajeko Sekuwa with a very clear vision; to make his restaurant a place for hygienic food serving
authentic Nepali Cuisines. His confidence that he could successfully run a restaurant business made him
successful entrepreneur today. However, he had least expected to grow this faster. Bajeko Sekuwa as a brand is
growing day by day. Mr. Bhandari’s target is to open around 200 franchising outlets all over Nepal and then by
2083 B.S., he wants to sell his restaurant at the maximum possible amount.
Mr. Chetan Bhandari
Mr. Dinanath Bhandari

Business model
Bajeko Sekuwa is a Nepali restaurant that has been serving its customers authentic Nepali cuisines. Specially
known for its authentic Nepali menu, it now operates its business from five outlets in Kathmandu valley and
other five franchises inside and out of the valley. The outlets are operated by Bajeko Sekuwa team whereas
franchises are managed by Bajeko Venture Pvt. Ltd. Initially, the chairman chose outlet expansion as a
strategy for branching of Bajeko Sekuwa. However, an expansion of business through the outlet is not an easy
task due to the higher management cost. They have established Bajeko venture, which works under the
supervision and team of Bajeko Sekuwa. Also, the ultimate goal of the expansion is franchising via
outsourcing. Meanwhile, they have planned to expand the restaurant in major cities of Nepal and golf
countries like Macau and Oman including many other countries.
Franchising
In many cases, Franchising Model has proved to be a successful business model for expansion of parent
company’s business. Franchisee is also benefitted from established business and brand. Since franchisee
provides all the required resources and capital in opening and operation of outlet, business owner can invest the
money on other resources because it does not need any capital to penetrate the market. Here, franchisee not
only invest large amount of capital, they also agree to pay nine percentage of gross sales as royalty. Therefore,

Franchisee will be highly motivated towards higher sales and profitmargin tocompensate and recover operating
cost. From this model, the franchising company can grow to hundreds and thousands of units with a limited
investment and without spending any of their own capital on unit expansion. Franchiser can also invest in
process rather than on staffs. The risk associated with increase in number of staffs and involvement of various
trade unions due to branching is also mitigated. Likewise, franchising company can reduce the management
cost associated with standardization via utilizing local resources. Similarly, all the inefficiencies due to
centralized control system will be ceased.
The Challenges of Franchising:
Legal binding by contract for the limited year of agreement
with franchisee and shared organization practices is the biggest
threat for franchiser. During contracting period, company is
obliged to support the franchisee as per the agreement. There
is very low company control to franchises compared to the
outlets. As restaurant business is a highly sensitive business,
the deliberate intention of franchisee to grow fast by deceiving
the laws and practices may lead to reduction in the belief and
trust that brand holds. The cost of monitoring and supervision
automatically grows. The quality, safety and brand loyalty
practiced in chain business may reduce too. Franchisee may fail
to adopt standardization, proper treatment of staffs and
professionalism in work culture. In this regard, one of the
franchise licenses of Bajeko Sekuwa was withdrawn due to
failure in implementation of SOP. The biggest challenge will be
on establishing system and maintaining pace on growth.
Batisputali outlet of Bajeko Sekuwa
If company expands business via chain strategy, there is centralized locus of control and there will be whole
profit realization. With this, risk associated with protection of core competency remains the same but the trust
and belief of customers will grow and company can focus on automation in the system.
However, unnecessary needs and demands of trade union may prove to be a threat for company. Company can
invest its financial resources on process; it will distribute large amount for staffs, and the cost associated with
employee retention and motivation will be higher as well.

The franchisee gets chance to run a business which has been already established. Franchisee may gain profit
by selling customer accepted products. There is no need to look after the product development and marketing
of a product since all the raw material with core value added is provided to them in reasonable price by the
franchiser.
Franchisee may however, add food items to the menu. Bajeko Sekuwa also assists in franchising through
ambience structure design and architectural setup. They also provide trainings to franchisee so that they will
able to provide and deliver the products as per SOP to the customer. They have authority to look out, plan and
implement local resources. Currently, high investment for getting franchising license, continuous royalty
charge, finance on operating expenses, managing of diversified employees, retention of knowledge, skills and
attitudes resources, frequent change in government policy (e.g. zero tolerance policy against drunk driving,
quota on selling tobacco) are proving to be hurdles for successful operation of franchises.
Core competencies
The core competency of Bajeko Sekuwa is the ‘brand’ that the restaurant has created among people since its
establishment. For Maintaining and providing same level of quality to the customer, Bajeko Sekuwa adopts
concept of standardization.
Standardization
Since it adopts standardization concept; human resource management, financing, marketing operating and
many other activities are done through corporate office. This also applies in food production; Central office
provides SOP to central kitchen and outlets. Moreover, when company chooses standardization, outsourcing of
all the required materials from others is a major problem. Bajeko Sekuwa maintains standardization from the
point of inbound logistics in which they have certain standards and blueprint for the delivery of raw material.
They provide specific menu to each of the vendors for example Babari Khasi for mutton and specific masala
ingredients. In order to maintain similarity in cuisines they established central kitchen system and provide
standard blueprint to all outlets.
Operations
Bajeko Sekuwa has the logistics managements systems shown as follows:
Baajeko Sekuwa has integration with number of vendors. Based on the requirements almost all the raw
materials, ingredients and supplies are purchased from them. Each of these vendors is responsible in delivery of
raw inputs in the central store. After that, central kitchen has major role in processing and producing identical
food items based on the SOP. Central kitchen prepares masala, marinates mutton and prepares some final
cuisines like Mo:Mo and other items. Bajeko Sekuwa determines size and quantity of inputs in food items. These
semi-prepared food items are delivered every day to the outlets and franchises. Then outlet’s kitchen either
roast, steam or cook and process the food. Finally, it is delivered or presented to the customers. Likewise, other
No. of
vendors
Trasportation
of Raw
Material to
Central Store
Central
Kitchen
Processing
Delivery of
semi-
processed
food to
Outlets
Further
Processing in
Outlet
Serving
Customers

office supplies, grocery items, gasoline, and required resources
are also delivered from central store as per the outlets requisition.
If the quantity of material required is higher, then vendors directly
deliver it to outlets under the orders of central office. Since office
supplies are once in every three month, breakage or loss may
create problems to the outlet manager. As central office provides
every item, outlets have to wait until regular delivery time. They
have provision of petty cash funds for each outlets manager. From
this petty fund the outlet manager meet small and day to day
expenses.
As the culture of coffee drinking is increasing day by day, they
have also incorporated coffee section in each outlet. They have
made alliance with Korean management to deliver typical Nepali
coffee in the name of ‘Nuri coffee’. The mode of alliance is profit
sharing. Both the management has perfect alliance on increasing
their sales. Both parties cooperate with each other in order taking,
order processing, serving, and maintenance despite running
distinct business to the same customer.
Bajeko sekuwa helps on marketing of Nuri coffee by providing front space in each outlet. Not only that they also
promote branding as ‘coffee with sekuwa’, which is effective to both parties to increase sales. Nuri provides
coffee, tea, and others products which are not the part of Bajeko Sekuwa’s menu.
MARKETING
The secret of Bajeko Sekuwa’s success lies in the quality and service together with belief and trust to create
loyal customers. The customers visit the restaurant times and again and recommend it to their circle. The
name itself was given by customers. They are the primary source of increasing their sales by introducing and
promoting brands among the new customers. The effectiveness of word of mouth is still a reliable marketing
method in this case. Bajeko sekuwa has never promoted themselves via television, radios or newspaper to
reach this level. However, they give information about location and menu ahead of outlet’s opening via
Facebook or press conference. They have developed their own websites and they also use social media to
provide information and communicate to their customers. Moreover, sponsoring for television and radio
programs, leaving visiting cards and menu to various corporate offices, discount schemes and customer
feedback policy are some of their marketing techniques.
When Dinanath Bhandari visited Tribhuwan International Airport, he found that airport official, visitors, airlines
staff were queuing up for afternoon snacks, avoiding the airport canteen because it was too expensive. During
the initial period, he identified what product he would sell, which place was appropriate for business and who
would be the potential customers. As time passed by, they were able to identify, segregate and target
customers more precisely. Most of the customers who visit Bajeko Sekuwa’s outlets are working professionals,
business persons or persons above average economic class. While the name of the restaurant itself suggests
the availability of non-vegetarian items, there is a need to make people aware of the availability of vegetarian
food items as well.
Bajeko Sekuwa centrally operates its business through five different outlets; each of the outlets has different
types of customer. Central office does the job of marketing of outlets and franchises. Now, they have come up
with the idea of expanding in major cities of Nepal along with international markets.

COMMUNICATION HIERARCHY
Mainly outlet managers are responsible for communication of information within the organization. It happens
in either hierarchy or team briefing. With the increased number of social media like WhatsApp and e-mail, the
hierarchy in communication has been removed.
In order to coordinate and communicate with corporate and outlets, three tires communication system is
practiced.
TRIANGULAR LOOP IN SUPPLY DEPARTMENT TRIANGULAR LOOP IN OPERATION DEPARTMENT
THE COMMUNICATION TAKES PLACE IN THREE TIERS:
TIER 1: CHAIRMAN AND BOARD OF DIRECTORS
TIER 2: CHAIRMAN, ADVISORY AND HOD
TIER 3: IN BETWEEN THE TRIANGULAR LOOP
HOD
Production
incharge
Production
team leader
Outlet
Manager
Outlet
Incharge
Outlet Chef
Chairman/CEO
HEAD OF
DEPARTMENT
Supply
Department
Production
Procurement
Store
Delivery
HEAD OF
DEPARTMENT
Operation
Department
Branch Operation
Sales and
Marketing
Repair and
Maintainance
HEAD OF
DEPARTMENT
Admin and
Finance
HEAD OF
DEPARTMENT
Institutional
Capacity
Development
Advisory

TECHNOLOGY
In Shrawan 2073, they introduced tablet system for order receiving and order handling purpose which is still (as
on Mangshir 2073) in the testing phase. Positive results are being shown by the use of latest technology. For
instance, when the waiters take orders, the system hits the account and kitchen department simultaneously
providing quick and easy order receiving as well as maintenance of records.
HUMAN RESOURCES
Bajeko Sekuwa has 165 staffs (as on September 20, 2016). Providing job opportunity and managing diverse
attitude, behavior and culture of large number of people is always challenging. When it comes to restaurant
business, knowledge, skills and attitude plays vital role in the competitive business. Particularly, in restaurants
business, we see 60%-70% turnover every year. However, Bajeko Sekuwa is able to maintain around 40%
turnover which is the major achievement for the growth of the business. After leaving Bajeko Sekuwa, the staffs
are mostly found to have gone abroad. Although the company functions centrally, inclusion of outlet manager
in HR planning of outlets have minimized the employee turnover. Outlet manager forecast required resources
and ask for the approval from corporate office for selection of employees. Outlet manager plays the major role
in HR management in each outlet.
se.glocalnepal.com
When staffs are selected, they are kept in the probation period of three months for socialization and knowing
the work culture in which individual is paid or unpaid depending upon his/her experience and attitude towards
work. In this period he/she gets training on how work is done, communication of work culture and has to visit
each outlet and central kitchen. Also, they have to perform work of each level like security guard, cleaner,
dishwasher etc. so that he/she respects the worked performed by others. After three months until eight months
they will remain temporary staff of the company. The outlet manager can recommend for permanency after 3
months of trail period and further 6 months of observation. When one becomes permanent staff he or she gets
various facilities.
The retention and performance of staff is good in comparison to other restaurants. For this, timely payments,
team work, bonus and other incentives, supportive organization culture, succession planning in each level,
clarity in authority and responsibility and providing sufficient information are the major factors. As per company
information, we have found that average salary of staff is around Rs.12, 000 to Rs.14, 000 excluding service
charges.
Moreover, chairman’s concepts of mutuality in goal and growth of business with the growth of staff is
commendable. Likewise, higher level staffs are motivated by franchising opportunity.

CAPACITY UTILIZATION
Success of business operation greatly depends on whether the capacity utilization is effective in yield
management or not. Most of outlets have spacious parking area and sitting capacity. Although all the outlets
of Bajeko Sekuwa opens from 9:30 am to 10:30 pm every day, their pick hour is mainly after 1 pm in some
outlets; majority of outlets are busy after 3 pm on all days except Friday. They are only able to target
customers with above average incomes who mostly come after finishing their works. Except on business days,
the capacity is underutilized. They can utilize this capacity by targeting wide range of customers with ultimate
goal to increasing their sales.
ase.glocalnepal.com
Tabulation and synopsis of the research findings:
 Age group: As per the research conducted, people aged above thirty visit Bajeko Sekuwa the most i.e.
46%. Income level of such group of customer is one of the main reasons for it. Also, the ambience that
Bajeko sekuwa offers is spacious enough for family dinners and celebrations as well as meetings and
casual talks. The percentage of customers aged 20 to 30 visiting the restaurant is 43% and below 20 is
10%.
It is represented graphically as follows:

 Most of the customers are likely to recommend the restaurant to others.
 Many customers come here on daily basis, especially for lunch and casual meetings. However some
also visit the restaurant on weekly or on monthly basis. Its authentic food, good ambience and
appropriate location are what they love about the restaurant. Average time spent by them is one hour.
Various Ratings given by customers can be presented as follows:
 Many customers are likely to come here again. They are happy with the service being provided here.
 Most of the customers are satisfied with the current food options that includes the authentic Nepali
cuisine including Sekuwa and Mo: Mo. Also, many of its customers were formerly informed of the fact
that Bajeko sekuwa not only offers non vegetarian cuisines but vegetarian food items as well.
 Most of the customers are happy with the quality of food. They primarily come here for authentic
Nepali cuisine and sekuwa. Staffs here are also good. They are customer friendly and are service-
oriented.
 With regard to price and value, many customers think that price with respect
to value is matched. However, few think that it is expensive. Only 13% of the customers think that the
price is fair.
 Customer service is good there. They are treated with equal respect, queries are answered and food is
served on time. The billing counter is also computerized. As a result, order processing and food serving
along with payment is faster.
 Many customers visiting Bajeko Sekuwa think the atmosphere is very good. It provides room for every
type of sitting arrangements from informal meetings to birthday parties, family dinner/lunch etc.

CASE.GLOCALNEPAL.COM
Page | 12
Message from the Publisher
AtGlocal, wehavealways been trying to focus on developingtrainingmodules
and exposure for the students and youths. While working with lots of student
groups and youths, especially, the management student, we realized the need
of having case studies of Nepali businesses, entrepreneurs and business
ecosystem. As for the studies, the trend is to use the case studies from abroad
which are global but not local. We believe that learning from own surrounding
is much more important as you can practically visualize, learn and evaluate.
With the vision to have case studies from Nepali Market and having it as a
resource for studies in management, we started working with corporates and
student for developing course wise case studies. The initiation of journey has
been fantastic working with Bajeko Sekuwa Team and three passionate
business enthusiasts, Anusha Kadel, Sagar Khanal, and Bibek Aryal. Special
thanks to Mr. Chetan Bhandari, Chairman, Bajeko Sekuwa, for helping with
the references and resources about Bajeko Sekuwa. Thanks to Mr. Ceaser
Rana, for closely contributing.
We hope to serve the cause with much more case studies about Nepali
Business Ecosystem.
Alina Prajapati,
General Manager,
Glocal Pvt. Ltd.
Hanumansthan, Anamnagar
Kathmandu Nepal
info@glocalnepal.com | +9779843636871

Case study of bajeko sekuwa

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