Don’t think that “on the system” means digitization! The secret to multiplying profits is actually…

What are the secrets to increase revenue for these restaurants?

In recent years, the catering market is undergoing earth-shaking changes. The pattern of the Chinese catering market is also advancing towards the pattern of 10,000 stores. 

New brands and time-honored brands have been flexing their muscles. Some have opened thousands of stores, and some have doubled their revenue… 

‍The rush of Xinpai Catering: Sign 1,000 stores in 2 years and complete 2 financing in 3 months

A Kushikatsu brand that has only been established for two years, has signed more than 1,000 stores nationwide, completed nearly 100 million yuan in financing, and achieved a lot of amazing revenue data: for example, in 2020, it has received 15 million customer visits, and the number of sales exceeded 120 million sticks can circle the earth one and a half times.

This brand that ran out of Internet speed is Kuafu fried skewers . Why can a newly created brand develop steadily and quickly?

One of the important reasons is digitization. Its founder Yuan Zelu once mentioned, “In the future, there must be digitization first, and then there will be thousands of store chains.”

Don't think that "on the system" means digitization! The secret to multiplying profits is actually...

Yuan Zelu can be regarded as an out-and-out Internet aboriginal. When he was at Baidu , he was engaged in big data work. During the period of Xi Shaoye, he also made a lot of digitization attempts; when he founded Kuafu, he had formed an understanding of digitization: “Digitalization consists of two parts: one is business digitization, Including CRM, membership system, small programs, private domain traffic, etc.; there is another management digitalization, involving three roles, namely users, customers and franchisees.” 

“Food industry in recent years have been talking about the digital transition, a lot of people feel that the system is a set of digital, but your organization, and your work is not based on data-driven business.”

Don't think that "on the system" means digitization! The secret to multiplying profits is actually...

The first step in the digitalization of Kuafu fried skewers is from the selection of products. “Traditional catering is based on the personal preferences of the founders. Often the boss thinks it is good and the boss is optimistic, and it is new to the forehead. There are too many subjective factors and empirical judgments. And we use reviews, takeaways, e-commerce, etc. Collecting big data on the whole network’s serial product sales in two dimensions, selecting the first batch of 26 SKUs, and then performing the final elimination update based on quarterly data analysis, so the sales situation is very good from the beginning.” 

Last year’s epidemic gave Kuafu a more in-depth exploration of digitalization. “Food digitization fact, digital full link. Link-digital we learn that shells . Shells with digitally revolutionized the internal benefits distribution mechanism intermediary of the line. Future we hope to allow the operator to visualize, probably plans to use It will take 1-2 years to realize 360-degree full-link digitization.” 

Time-honored brands are getting a new look: annual revenue increases by 50%, and online orders increase by 70% year-on-year

In recent years, the time-honored brands have generally not had a good life, and negative news such as losses have emerged one after another. In the increasingly fierce competitive environment, some time-honored brands still show good results.

Throughout last year, the overall turnover of Emei Restaurant has increased by 50%. Among them, online orders are more popular, with a year-on-year increase of 70%. Today, its head office sales data even exceeds that of 2019. 

Behind the performance, its customer base is also expanding. This 71-year-old restaurant is not only “regular customers”, but most of its takeaway users are women in their 20s and 40s. 

Where is the secret to the renewal of the old brand? The answer is also digital. 

Driven by the parent company Jude Huatian , Emei Restaurant has used the cash register system more than 20 years ago.

When the food delivery platforms first emerged, stores also joined the food delivery camp. In 2020, food delivery revenue has always accounted for about 30% of the overall revenue, with the highest one month reaching 35%.

Develop innovative dishes with reference to big data. For example, more desserts are given for online takeaways, while offline dine-in foods are recommended for seniors’ favorite hair cakes.

Keeping up with the trend of digitalization, “Adapting Measures to Local Conditions” is applied to restaurant operation and management. This is what distinguishes Emei Restaurant from many time-honored brands. Zhang Yuming, general manager of Emei Restaurant, believes: “Digitalization is not about replacing a machine and adding a QR code, but a manager how to use digital data to make more informed decisions. For example, the inventory in the restaurant management system. Reminder, if you set a three-day reminder, it will be red if you enter too much, reminding you that this ingredient needs to be digested faster. But if you ignore this reminder, it means that this function is not in place.” 

Don't think that "on the system" means digitization! The secret to multiplying profits is actually...

When Zhang Yuming first took a job at Emei Restaurant in 2018, he saw the report and had this plan in his mind: reduce inventory, control quantity, and ensure quality.

At the end of the year, he cut off the secondary library in the kitchen and used the large library directly . The reason is that in kitchen management, the shorter the raw material turnover time, the higher the controllability of product quality. 

When it was first implemented, everyone resisted because it seemed too inconvenient and needed to be forced. “From the perspective of implementation, the managers are more powerful, and the system functions must be integrated into the overall kitchen management.” Now everyone has tasted the sweetness, and no longer has to worry about the quantity and freshness of the secondary Curry ingredients. The store management is also more refined. 

For Emei Restaurant, it is a digital transformation battle, and the key lies in the leaders’ determination to subvert themselves. As Peter Drucker, the father of management, said: “Management is to do things right; leadership is to do the right things.” The more time-honored, the more you want to become a leader in the digital age, the more you need a top-down The management team stepped forward to make use of digitalization to reconstruct the restaurant business. 

Beijing’s catering digitalization leads the country, with online orders increasing by 150.7% in the first half of the year

Whether it is Kuafu fried skewers or Emei restaurant, they are all typical cases in the “Digital Upgrading Action of Beijing’s Catering Industry”. The “Beijing Food and Beverage Industry Digital Upgrade Action” is actually an activity guided by the Beijing Municipal Bureau of Commerce and jointly implemented by the Beijing Culinary Association and Meituan to help catering businesses carry out digital upgrades. 

This action was launched at the end of last year, because the impact of the epidemic on the catering industry last year has not dissipated. However, it is precisely because of an epidemic that complements the upgrade of catering people’s digital awareness, and makes catering people from “belief experience” to “belief data.” 

Looking back on the actions in the past six months, more restaurants have benefited from this digital upgrade war, and a larger market has opened up. 

The big data on the Meituan platform shows that as of the end of May, the system indicators of catering merchants in Beijing have improved significantly compared with December last year. The average store score of merchants in the city that has participated in the food delivery business growth system (store points) reached 84.09 points (out of 100 points). This is 6.69% higher than the national average of 78.82 points . Beijing leads other first-tier cities. The online business growth system (ROS score) of dine-in catering merchants increased by 11.46% , and Beijing also led other first-tier cities. 

After January 23, 2020 last year, the Southeast Asian restaurant brand Susu & Joy Thai entered the winter in an all-round way. “There is no reserve, no echelon, no personnel, and no foreign aid. To make matters worse, the management system is not systematized, just grabbing it.” The founder Li Xuebai recalled the situation at that time. . 

“According to platform data and optimizing takeaway products, takeaway sales have increased by as much as 200%-300%,” Li Xuebai said after the epidemic, “digitalization is a’plug-in’ to deal with uncertainty and combat risks. 

Don't think that "on the system" means digitization! The secret to multiplying profits is actually...

The brand has gradually realized “from experience-driven” to “digital-driven”, and the speed of opening stores is also soaring. In the 7 years before 2020, Susu & Joytai have steadily opened 7 stores. In the past one and a half years, with the empowerment of digitalization, six new stores were opened soon. 

Another pizza brand, Papa John’s , has achieved significant growth in membership operations after the epidemic. In 2019, Papa John established a membership system. Before the epidemic, it had accumulated 60,000 members in one year. After paying more attention to the operation of online members, the membership system quickly “strengthened”. “By May of this year, we have achieved 170,000 members. This is the impact of the digital age on catering.” said Zhang Zhaoyong, general manager of Papa John’s brand. 

Wang Dongfeng, head of the Meituan Catering Ecological Development Department, also mentioned that the epidemic has made most catering owners realize the benefits of digitalization. The planning of the Meituan catering system has also been divided into many levels to meet the digital needs of different restaurants. “For example, after the digitization of the front hall is completed, we can predict tomorrow’s stocking based on weather conditions, operating hours and other data, which can achieve the goal of reducing the cost of the back kitchen by 5%.” 

With the joint efforts of multiple forces, Beijing has ushered in a small peak in online orders. As of May of this year, online orders for in-store catering have increased by 150.7% year-on-year, which is much higher than the national increase of 98.7%. Beijing’s online in-store catering has continued to accelerate and outperformed the national average growth rate. 

The Beijing Municipal Bureau of Commerce also continued to list “digital catering” as one of the key tasks of this year. The relevant person in charge pointed out that “actively explore the digital transformation path of the catering industry through the joint construction of government and enterprises” and announced that “the top ten digitalization will be cultivated in the second half of the year. Featured neighborhoods”. Beijing’s catering industry is on the track of faster development. 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dont-think-that-on-the-system-means-digitization-the-secret-to-multiplying-profits-is-actually/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-07-21 13:05
Next 2021-07-21 13:07

Related articles