Links with an established food company help an Indian cuisine specialist take on the Australian market.
Some businesses are launched only after long, careful planning. But sometimes, things just happen.
Today, Tandoori Palace is a chain of Indian restaurants and takeaways, which also sells its sauces in restaurants. It began about 20 years ago when founder Anup Nathu was under pressure to find a use for a vacant space which a property syndicate he belonged to had invested in.
Starting an Indian restaurant couldn't have been further from his mind, coming from a family background in which academic achievement and a professional career reigned supreme. However, the ex-accountant and former Canterbury cricketer took to the food business.
"What was intended to be small business turned out to be a full-time business," he says. "We kept to the basics - good authentic food, good service and good value for money."
The company now has restaurants in Christchurch, Queenstown and Rotorua.
"Full credit must be given to my wife, Sadhana, who truly deserves a medal for contributing to the success," Nathu says of his wife, a food technologist.
Unlike most food entrepreneurs, who struggle to gain a toehold in the supermarket chains, Nathu found it relatively easy, thanks to potential clients who knew of his cricketing background and were willing to give his products a go when he started selling frozen curry meals in 1995.
"That gave me opportunities to place products for three months and see how they went."
He learned, however, that having access is not the same as as being able to deliver efficiently to supermarkets nationwide.
When Tandoori Palace's curry pastes made their way into Progressive Enterprise's stores, says Nathu, "initially we popped the champagne - for a little player like ourselves, it was a big deal. They had 150 stores nationwide. We got back to reality quickly.
"We realised we had the potential, we had good products. We had a vision we could grow the business further. What we needed to have was the infrastructure in place to support our business."
In March 2008, Tandoori Palace sealed a joint venture with the well-known food company Barker's of Geraldine, in a move that not only boosted growth but set the stage for it to get into the Australian market.
At a food show, Nathu chatted with Barker's employees and was impressed by their passion for the company's brand and products, and their company's strong family feeling, reflecting Tandoori Palace's values.
He pursued Michael Barker and soon a deal was done over a handshake.
Since the joint venture, Tandoori Palace's turnover has grown. "We have gone from $300,000 per year business to $1.2 million in over 18 months, and still growing. My aim is to have our core business grow to $3 million in a couple of years."
Nathu says the joint venture, in which Barker's of Geraldine has taken a 50 per cent equity stake in the Tandoori Palace brand, has enabled Tandoori Palace to benefit from Barker's food technicians, its strong distribution infrastructure and its strength in manufacturing.
Within 15 to 24 months, Nathu hopes to have the company's products ready for the Australian market, where Barker's has a foothold. New products are being developed, including vegetarian meals, marinades, dips and chutneys.
Good groundwork is compulsory for anyone wanting to succeed in the food industry. Nathu first tapped into the frozen curry market when the trend was just beginning. He moved into the curry pastes and sauces when he sensed a change in the market.
"You have got to come out with products that are not the same. There is strong competition, so you have got to have a point of difference."
Tandoori Palace's main competitor is Patak's, a British brand. Nathu is confident Tandoori Palace has an edge, but wants to to grow gradually and and not overcapitalise.
At one time the company bought a pie-making business which seemed to complement its curry sauce-making venture, but the pies diverted resources and attention from the core business.
As to when a business should cut its losses, Nathu says: "It is difficult question to answer - when to stop when something doesn't work. The key is when your cashflow is hurting."
His cricket days prepared him well for business. "One day you are on top of the world, scoring a hundred, next day, a duck brings you back to earth. Sport is a great preparation for [the] business environment - dealing with pressure to perform; playing in a team environment thus learning how to deal with people; the need to make decisions under pressure."
