Franchising

Tarka Indian Kitchen's 2020 sales up 13.5%

Provided

February 4, 2021

Despite trying times for the restaurant industry in 2020, Tarka Indian Kitchen posted that its 2020 sales were 13.54% higher than in 2019.

Shortly before the crisis struck, Tarka increased its prices on third-party delivery to offset the margin and ensure there was leftover profit for the brand, Tarka CEO and co-founder Tinku Saini said in a company press release. When the pandemic forced dining rooms to close and Tarka was already top of mind for guests when ordering off-premise, it saw a 121.06% increase in third-party delivery sales and 42.24% increase in to-go sales.

"Though 2020 presented unforeseen trials, Tarka was ready for the challenges thrown at us," Saini said. "We previously saw about 15% of sales come in from third-party delivery orders. So as a restaurant with an already steady to-go and delivery business, we were well-positioned when those ordering options skyrocketed. Guests had already seen our brand's name on third-party delivery apps before, so we believe that previous exposure was a key contributor to our huge spike in delivery sales."

In 2020, Tarka partnered with another Austin-based company — ATX Specialty Foods — to outsource its sauces, which set the brand up to begin rapid expansion efforts. Outsourcing its sauces helped streamline operations and reach wider audiences through additional growth and franchising. Tarka expects to grow within its primary markets — Houston, Austin and San Antonio — in 2021, and will enter the Dallas market.

Throughout the year, Tarka made updates to its digital ordering channels, with additions like online ordering, curbside pickup and a digital rewards program, all of which increased Tarka's insight into its customer base and allowed the brand to make smarter site selection decisions. Tarka added delivery links to its website and app with much lower commission on orders originating from those links, and the brand leveraged its growing rewards member base to push offers and communicate with guests at the start of the pandemic, which led to an increase in guests' spending and frequency of visits.

Menu innovation also remained significant to Tarka in 2020 as it launched more vegan, vegetarian and gluten-free items, Saini said.