In 1968, P. Rajagopal opened a tiny grocery shop in K. K. Nagar, on the outskirts of Chennai.[4] In 1981, he opened his first restaurant, which initially operated at a huge loss. However, his restaurant quickly became both popular and profitable.
While visiting Singapore in 1992, Rajagopal observed the functioning of multinational fast food restaurants like McDonald's. He used them as a model for his restaurant chains.[5]
By the 1990s, Saravanaa Bhavan had opened multiple restaurant locations throughout Chennai. In 2000, Saravanaa Bhavan opened its first branch outside India, in Dubai, a city with a large number of Indian expatriates.
Currently, Saravanaa Bhavan has multiple overseas locations which are run by franchisees.[6] While the restaurants have gained popularity among non-Indians, they mostly target the South Asian expatriate population. They have been referred to as "canteen-like joints strictly aimed at Indian expatriates missing a taste of home".[7] To save on labor costs, Saravanaa Bhavan sends workers from India to work in their foreign branches.[8]
Legal Issues
In 2004, founder P. Rajagopal was found guilty of the murder of Prince Santhakumar, the husband of a woman who had rejected his marriage proposal.[9]