UK-based global fast-food enterprise
Quick-service restaurant (QSR)
Business need addressed:
Simplify store operations to provide store manager and staff with real-time information to make faster decisions, increase capacity, and drive revenue
Genpact created a dynamic dashboard mobile app prototype that enables staff to run the store on a day-to-day basis by:
- Focusing on key metrics
- Applying QSR industry best practices
- Making faster, more accurate decisions
- Making sale relevant information immediately available
- Allowing more face time with customers
- Enhancing competitive team spirit
- Boosted revenue by improving the conversion rate on promotions from 2% to 5%
- Boosted the upsell rate from about 12% to 20% to increase revenue
- Increased store capacity by 30% within two years
This Genpact client, already a mature enterprise with annual revenue of £360 million and 800 plus locations, ambitiously wanted to double its revenues over five years. Amazingly, it turned out that restaurant operations (which are 40% company-owned, 60% franchisee-owned) were still being driven largely by a manual, paper-intensive processes. This left restaurant managers and shift runners overwhelmed by large amounts of unstructured and unprioritized information.
In other words, many thousands of fast-food employees were regularly left unsure about what work needed to be done fast and what work did not. Having a work atmosphere that’s squarely at odds with one’s business’s core mission produced some very ugly results, including the following:
- Supervisors who were more interested in managing numbers than their teams
- Staff had less face time to give to customers, which hampered their ability to positively influence the overall "service experience"
- Missed opportunities to maximize revenue and profitability
- Uncertainty about how to drive revenue growth and profitability “in the moment”
- Absence of a performance management culture and team spirit
The client knew the answer lay in simplifying restaurant operations and creating a modern framework for real-time management. However, the client also knew it needed an experienced partner that could map the journey ahead in a way all stakeholders could embrace and implement. After performing a thorough root-cause analysis, using Lean and Six Sigma principles during restaurant store visits and interviews with store managers, shift runners, and area coaches, Genpact identified the following challenges faced by store managers and shift runners on a daily basis.
Restaurant managers had very little time to spend interacting with customers and see problems as they unfolded (or opportunities as they went unmet); for example, complaints and other customer feedback were compiled manually in a notebook.
To start, 40% of store-manager and shift-runner time was spent doing administrative tasks that were manual and tedious. When the smartphone in your pocket has more power to engage and stimulate you than your work does, your productivity can’t help but suffer. Even the commitment of the brightest, most-dedicated employees can be expected to take a hit as all that needless tedium saps their energy and leaves them wanting to find more challenging work elsewhere.
Staff wasn’t being told about their restaurant’s targets, and the service and promotional strategies meant to meet those targets. Shift teams generally lacked the marketing savvy to courteously upsell the ticket size of transactions based upon the kind of customer they had demographically, and the latest special offers. Last, the seasoned employee responsible for running a shift rarely had the time to coach and motivate teams.
A tenth of daily time-spend went to manually collecting information for any one of the 52 reports issued weekly. Equally unsettling, information was available only after something signifiant had happened, making it hard to correct or capitalize “in the moment” and with the degree of speed customers expect in a fast-food experience. Nor were area coaches, restaurant managers, and shift runners able to share best practices with counterparts across the 800-location chain. From an information technology standpoint, multiple systems were used within one restaurant, making for a highly user-unfriendly experience where, ultimately, there was no single credible source for information.
Genpact applied practical intelligence to the process, adding insights from internal and external environments to make smarter decisions and using technology to drive process and analytics. Specifially, our process reengineering experts assessed numerous representative stores to understand the challenges, ecosystem, and store dynamics. Next, we set a goal of “empowering the manager and the team by providing real-time information”.
Through collective intelligence from our Analytics and BPM practices, we de-mystified the concept by creating a storyboard that represented “a day in the life of a store manager” and held workshops with store teams. We developed an iOS app prototype within seven days of gathering user stories, defining principles, and identifying key metrics that would become part of a “dynamic dashboard”. The final model was based on real-time feedback from store staff members to optimize the user interface and the user experience.
Eight guiding principles
Genpact conceptualized and designed the client’s handheld dynamic dashboard app based on the following eight principles.
As a result of Genpact’s research, findings, and dashboard building, the client is in a much improved position to grow the business by maximizing the opportunity to sell, drive compliance and meet gold standards, maximize profits through optimal labor utilization and reduced waste, grow talent by creating a performance-driven culture, and create a marketing-savvy restaurant team.
Within the UK market, the lessons learned and actions being taken will help the company’s restaurants become operations leaders; grow talent and provide long-term career opportunities; build a scalable model; create a commercially driven workforce at all levels; drive innovations in the systems, menu, etc.; and provide insights into formulating growth strategies.
Globally, this new, more dynamic, real-time information-driven operations and IT framework will allow the client to automate reporting by country, region, and area; work from a single source of truth; personalize the dashboard by using widgets; cross-pollinate talent; empower teams and drive ownership; and use analytics to drive customer traffic and run store operations.