Delivering Hospitality through Franchising: The Case of Monginis, India

Delivering Hospitality through Franchising: The Case of Monginis, India

Christo F. V. Fernandes (Goa Institute of Management, India), Babu George (Fort Hays State University, USA) and Ajit Mishra (Goa Institute of Management, India)
DOI: 10.4018/978-1-4666-9761-4.ch007
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Abstract

Every one celebrates their birthday to cherish new dreams, and yet Monginis crawled in 1970 at Chembur, Mumbai with just one store. Mr. Albert Desouza, Marketing Head recalls the cascading journey that has carved a strategic path for Monginis, selling over 30 million pastries and 4 million cakes. It all grew from one store in 1970 to over 75 stores in 1986! However 1990's saw a new surge of energy with the Franchise model and hence this business travelled outside Mumbai. The Franchise model embraced some real time practices of Human Development that were carefully captured through the recruitment strategy, job engagement, training, positive work environment along with strategic practice of embracing local taste in product that has summoned success. Mr. Albert appears pensive at the CST railway station noticing the roaring volume of people and wonders: How will Monginis reach out to every Indian? While the Franchisee model has led to expansion and growth he seems restless; we still have a long journey…but now…how should we travel?
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1. Monginis Food Pvt Ltd

Monginis traces its roots back to its humble beginning to a time when it was a favorite with the Europeans in Mumbai. Little excuse was needed for Englishman to pick up a Monginis cake whenever there was an occasion in his family. A birthday, and an anniversary, a wedding or even tea-time would not be complete without Monginis. Today, it is the nationwide headquarters to which all manufacturing and cake shop franchisees report.

Early in the 20th century, two Italian brothers of the Monginis family ran a catering service in Mumbai's Fort precinct, one of which was popular with the city's European residents at the time. In 1958, Monginis Catering was bought up by the Khorakiwala family, and became Monginis Foods Limited. In 1971, the company adopted the franchise model of business, with a stated emphasis on localized production for local tastes. It also models itself on the “food boutique” concept, focusing on quality, presentation and service. It has thereby expanded its brand and reaches across the country, hitting a total worth of about 950 million rupees by 2012.

Today the 42,000-sq-ft HACCP certified headquarters of Monginis is the place from where all the yummy stuff emerges from. It is the nationwide headquarters, to which all manufacturing and cake shop franchisees report. It is the fountainhead of ideas that are good enough to eat. The Monginis headquarters is also a model bakery with state-of-the-art manufacturing facilities designed to produce a wide range of cakes, gateaux and pastries, tongue-tickling savouries and a variety of any-time snacks. Here quality assurance steps at each and every stage of the manufacturing process ensure world-class soft n fresh cakes, snacks and baker's ware. Monginis headquarters has a well equipped lab and has gained the HAACP certification since past 2 years for maintaining and assuring best of the Hygiene and quality standards of our products and for our customers.

Globally Monginis has its strong presence in Cairo, Egypt,and besides supplying to neighboring countries like Libya, Yemen, Sudan in the African continent. Monginis brand also caters to the prestigious UK market and will soon be expanding to other European countries.

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