Tuesday, November 2, 2010

IDLI: The Science of economics vs economics of Science

Firstly I'd like to start out by apologising for no posts on knives. The content is prooving more challenging than earlier expected and is quite difficult to condense and simplify so lets do something fun.

Personally I wanted to do this post a long time ago but due to time constraints. I couldn't devote enough time.
Lets get straight to the point.

Idlis
Love it, Hate it, but you can't ignore it.
There is just something about well fermented rice and urad dal batter steamed to perfection and enjoyed piping hot with even hotter sambar and a refreshing coconut chutney

I am a complete south indian although my parents hail from different states. I am passionate about south indian snack/ street food and love my idlis, dosa, medu vada, uttapam. I absolutely detest the watery sugary solution that passes off as sambar/ sambhar(as most non-south indians would refer to), and the urad dal adulterated coconut chutney in udupi restaurants.

I am on a mission to make ordinary people like you and me more aware of what we are spending our moolah on! and to promote good, healthy(within limits : p ), nutritious, wholesome satisfying food at prices that are not criminal.

I happen to go to College just like you and me and what often happens is, that I pick up a plate of idlis from a dark skinned gentleman who comes on a bicycle, who promptly packs it up for me since he knows that I always eat on the move. He charges a paltry Rs.10/- for a plate of idlis. I don't even need to tell you how many idlis he gives before you would conclude that what he is offering is truly DIRT cheap!

Unfortunately I don't have a picture of the stall on hand but my memory serves me quite well. Dealing with the efforts put in by that poor chap to serve us demanding customers will really be a totally different post. Probably the next one. 

Lets limit our selves to a point of view of a customer. What I am concerned is whether I am getting VFM (value for money).

I happened to be extremely hungry so I purchased and parceled 2 plates of idli. Upon which I got this.....



20 bucks Parcel
Contents: (clockwise) Sambar, coconut chutney, idlis


Packaging contents: (Takeaway)
1. Small white plastic bag (visible in 1st picture) X 1 (Thin = 15-20 microns thick)
2. Thicker transparent plastic bags (medium)     X 2 (Thick= 25-30microns) (Offered to be packed separately hence = +2 (optional)
3. Same thicker transparent plastic bag (large) X 2 (Thick= 25-30microns) (Offered to be packed separately hence = +1 (optional)

In case you are having it there its just a regular paper plate.

Practically analyse this decision for packaging. Its absolutely logical. They have taken a cheap grade of plastic for the outer packaging and a better grade (thickness) for the food content, I'll go as far as to say food grade plastic bags for the sambar, idli and chutney. They probably cannot risk any of their food getting spoiled and risk bad publicity purely through word of mouth.

I decided to get rid of the packaging and examine the food a little closely.

All food taken out and

Food Content Data:

I used my trusty weighing scale for all weight measures.

1. Sambar = 140gm
2. Chutney = 120gm
3. Idlis (11 number) = 185-190gm

Since I took 2 portions lets average it out.
1. Sambar = 70gm, 2. Chutney = 60gm, Idlis = 95gm

Since I got 11 idlis I was a little confused but if one takes a conservative estimate = 5 idlis per portion.

I also measured the sambar and the chutney in a measuring jug:
1. Sambar = 150ml
2. Chutney=150ml

By elementary maths you should have already got an amazing fact.

Q. Whats the weight of an idli?
A. Total weight per portion/ no. of idlis = 95/5 = 19g

* I must inform you though that this is possibly the minimum weight of an idlis. In udupi restaurants the idlis are usually a little larger so probably 1 Idli in an udupi restaurant is equivalent to 2 idlis from this joint.

To drive home the idea again. I repeat you are only paying Rs.10/- for all of this up till this point. Not convincing enough?

Lets delve a little further into customer psychology and how people think

A Customers spending power (willingness to spend) is inversely proportional to his awaresness! 

I took the liberty to  check up the price of 1 plate of idli from an udupi restaurant close by. sure enough the price comes to Rs.20/-!! (this is a conservative number, some places it is more...). If one has the urge to have idlis in an A/C room it comes to around Rs.32/-

Yes...the same idli, becoming cold twice as fast in that god forsaken A/C room for 32 Bucks.
Pictures speak a thousand words so I thought I'd break down all the costs involved in one picture

A plate of Idli at an udupi restaurant

What is essentially is served:
1. Idlis = 4
2. Sambar  = 75ml
3. Chutney=75ml
4. Steel plate=1
5. Spoon=2
6. Unlimited drinking water= ??

So assuming in the first case scenario of the bicycle idli.

Out of Rs. 10: Food cost is probably Rs.6-Rs.6.5, overheads (Packaging, gas, transportations, storage, bribes??) would amount to another Rs.1-1.5. Profit per portion is probably not more than Rs. 2
Hence, even at such a micro level of a business the bicycle idli guy is relying on multiplicity value of commodity and relying on selling each and every idli he has made to probably realise some sort of substantial profit.

In the Udupi restaurant scenario:
Over heads are probably more due to operations but they are making a profit of probably close to Rs.3 Because inherently they are cutting down on ingredients (watery sambar, urad dal adulterated chutney).

The million dollar question is how does one assess the sales mix of home deliveries vs table service?
There probably is a rough thumb rule but  I am not aware. Thats where expenses can be balanced out and profit maximisation can really take place.

Ok too much heavy analysis lets get back to doing something fun.....

I had quite easily managed to measure weight and volume of sambar and chutney as well as the weight of an idli. But I thought I'd be that little more crazy and find the density of an idli.

So in true spirit of a culinary scientist, I did an experiment that would really help you do cool stuff at home. Just don't let your mom find out.




Finally tell me how much would you pay for a plate of idli in a 5 star hotel/ rather charged because noone likes to pay the bill in  a5 star hotel. I tried to present it in the best possible manner below. Also add a red chutney powder with some pure ghee (actually should be coconut oil) but yes it is offered by many 5 star hotels. The costs involved are still the same as that 32 rupee plate of idli, in the A/C section of that udupi restaurant. Only thing is that your idli will look something like.




It is a sad fact but so bloody hell true that people essentially eat with their eyes first and customers are suckers for substandard food repackaged and sold in a glorified platform.

The sadder reality is the fact that the food service industry relies on selling average food at  presented well at exhorbitant prices, where I will specifically be critical and zero in on five stars.
Cost vs Quality deficit in food can only be bridged by consumer awareness......


So all you smart guys and gorgeous girls out there before you put any morsel of food in your mouth that you have had to pay for, think for a second whether it is really worth every penny and your palate.

Cheers!

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