A new breakthrough in the food service industry in India today is the Cloud Kitchen. With the increasingly mutual need for all restaurants to serve delicious and fresh food as quickly as possible and with the customers wanting everything at their doorstep at a nominal amount, the trend of cloud kitchen is picking up with lightning speed. The audience has become digitally savvy, and the traditional concept of physically going to a restaurant to have a meal has also undergone tremendous changes to keep up with the ever evolving needs.
Cloud kitchen is a category of food outlet with or without a dining area where one can place the order online in a few clicks. The food is prepared in an authentic manner, follows all safety standards, maintains quality and hygiene, and delivered to your doorstep within the time frame as specified by the outlet. There is also an option to make the payment online to completely digitize the process. These outlets run well because their customers prefer eating at home or do not have the time or inclination to step out of their homes or offices to grab a quick meal.
Another striking feature is the fancy packaging of the food that drives customers to order and be assured of quality. Customers also end up trying multiple different outlets nearby owing to the convenience. With relatively low pricing due to heavy savings on space and staff, cloud kitchens have become a boon for food lovers and those who prefer quality and variety.
The backbone of outlets or restaurants on cloud kitchen is their integrated backend. An end-to-end restaurant management solution is a must that takes down the order with specifics, shares it with the chef, processes payments, tracks delivery, profiles customers, and collects feedback while improving on the same. Cloud kitchens are definitely here to stay and are estimated to be worth Rs. 400-500 Crore in 2016 according to industry reports.
In a world, that grows more mobile every day, the MPOS system is an evolution of POS technology. With mobility, you can break free from the wires that limit the traditional POS, allowing you to enable all or part of the transaction process wherever needed to preserve and improve service quality – from pre-scanning items in the baskets of shoppers to complete payment processing.
Mobile POS, or mPOS, systems are the modernised and disruptive players in the restaurant point-of-scale game. They are quite precisely described to be: POS systems with the ability to be used anywhere. Servers can hoist around and use them anywhere in the restaurant. Food trucks can use them regardless of where they’re at. And vendors can use them at any off-site events and farmer market.
From a “multi-cuisine fine-dine restaurant to a vada-pav wala” down the road, anyone and everyone can use MPOS as per their convenience.
Down from their inherent mobility, mobile or cloud based POS systems offer many advantages over traditional POS solutions. For example, the high cost of implementation and bulky nature of legacy systems can be bullying to restaurants looking to adopt a new portable & latest tech-driven point of sale system for their restaurant. Around 63 percent of the restaurateurs still, don’t have a POS system in place. Either they do not have space to keep the bulky hardware or the facility to setup the system, cannot afford the setup cost, want to hide sales figures, or whatever their comprehensions are!.
MPOS – For Flexible, on the Spot Acceptance at the Point of Decision
No longer limited to a fixed register, the MPOS allows you to provide your customers brand new conveniences that help to boost the speed of service and quality. According to the latest report, the global MPOS terminals will reach $42.99 billion by 2022 from $9.07 billion in 2015.
How does it work?
The MPOS system consists of a handheld mobile “computer” with a lightweight, compact portable (bluetooth) printer and payment card reader. Or the receipt/bill can be shared with the customer either via a text message or an email, thereby saving paper (minimising carbon footprint) and printer cost. One can simply swipe their debit/credit cards are required in order to complete the purchase or can take money from the customers via various mobile wallets or net banking facilities. A flexible MPOS technology can either replace the supplement wired POS stations, traditional wired checkout stand, or both.
The Many Benefits of MPOS in Restaurants
Restaurateurs can use the wireless handheld device to access a wealth of information from ingredient information to real-time menu changes, prompts that ensure every order is complete, as well as the solution to many questions such as whether a dish contains nuts or is gluten-free.
MPOS technology allows F&B businesses to:
Increase Sales: as the overall process of serving customers is faster, , enabling more table turns in fast turnover environments. Add something else, same things repeated again and again
Assure service quality: customers may have enjoyed a great meal with good service, but if they have to wait a long time to complete the payment, their last impression will have a negative impact on the overall customer experience. With the MPOS in hand, there is never a wait.
Enhance credit card security: With the MPOS at the table, diners have the peace of mind that comes from never losing their sight off their credit cards. The skimming of credit card is no longer possible. The card can’t be negligently charged twice. And a customer’s card won’t unwittingly end up in the hands of another diner.
Boost service productivity for a restaurant: through eradicating all the trips to the POS terminal, the server productivity is increased. The same number of servers can now provide better service to more tables, thereby allowing owners to contain staffing costs without impacting service quality. repeated again
Achieve POS functionality and more for a Rapid ROI:
MPOs also offer another value – it is not a point solution. The handheld mobile computer that is at the heart of the MPOS is a multi-functional device that helps to serve many purposes. In addition to allowing employees to ring up purchases and access sales related information, it can also be used after hours to take inventory, execute markups and markdowns, conduct shelf audits, process and reconcile incoming shipments, alter electronic signage, and enable communication between employees. The number of devices you need to purchase, and your workers need to carry is reduced. And you get a single device you can put to work every minute of the business day – an investment with a rapid return.
According to a POS Software Trend Report for 2015, these were the business drivers influencing restaurant POS upgrades, but with the current Demonetisation drive by Modi government, you can only guess what the numbers would be now and how important it would be, to be technologically ahead from the others!
Within the Food & Beverage industry, there are a range of recent trends that add complexity to the way companies function. Starting from food safety to the regulatory acts, restaurant owners and food manufacturers are under more pressure than before. One of the best ways to handle the growing complexity of this industry is to invest in efficient technologies such as an ERP system. A well-designed ERP system can put together all of these aspects into a single set of information, facilitating the company’s management. Apart from improving the operational performance, it also aids to incorporate all the compliance rules into one place making sure that they are being fulfilled.
Must have aspects in an ERP system
In order to choose the right ERP system for a food and beverage industry, the software must have all the functional requirements which are required for the organization. This is very much true especially in the food and beverage industry due to its highly complex functional nature. Below are few aspects, a food and beverage industry ERP system must have to be fully functional.
Regulatory Compliance: This aspect is no greater aspect than that of regulatory control. The need for raw material isolation, traceability, environmental guidelines and regulatory compliance must be achieved at the highest level. The system must be agile, thorough and rapid if the product recalls occur. Additionally, the regulations are becoming more exact and constantly changing.
Quality and supply chain management: The ability to control production quality is crucial. F & B industry ERP systems must have the capability to record real-time data on various aspects of supply and manufacturing during production and store the data for future reference.
Inventory management: Iin F & B industry, excess inventory is more than just wasted cost. For example, when perishable raw materials are involved, delays in processing and surplus inventory may lead to safety and quality issue. This is why inventory optimization is a ‘must-have’ ERP feature for F & B industry.
The ERP system must have materials requirements planning (MRP) functionality and traceability features, thus enabling to plan ‘Just-in-time’ delivery of raw materials or ingredients.
Single source system: The system must allow to trace costs associated with certain products and product lines down to the ingredients used in their products. Alternatively, a single system has to be implemented in order to manage production, financials, quality, production, inventory and many more.
Importance of choosing a food and beverage specific ERP
It is important that the ERP system you choose can answer to several issues you face. By obtaining the right ERP system specific to F & B industry, you will be proficient in meeting industry demands (operation-specific) by alternatively increasing your profits, satisfying customers and ultimately improving productivity.
While the below listed are few functions that F & B industry needs in an effective solution.
Flexible and Extensive Lot Control
Code Tracking
Materials Tracing
Regulation Management
FDA Requirements
Storage and Handling
Packaging and Labeling
Recall Management
Test/Mock Recalls
Recall Data Organization
Expiration Date Monitoring
Warning Notices
Inventory Rotation Management
Waste Tracking
Growth Capabilities
Addition of Processes
Additional User Support
ERP solutions can be an outstanding tool that do boost your business profits, but it is important to remember that without the right ERP, the benefits it reap begin to lessen rapidly. An ERP system is a wise choice in this ever changing and complex field.
QSRs (or Quick Service Restaurants) are the future of the restaurant industry. The food sector has a huge steady growth of around 3.7 trillion in 2018. Further, consistent sales have seen a ten per cent annual growth in the last few years. Quick Service Restaurants coupled with casual dining accounted for 75-per cent of market share and its growth has been consistent and exponential.
These statistics predict an extremely favourable picture of the overall industry. Though we have come across the term QSR, most people only have a very vague idea of what it is! In the next segment, we’ll define the concept and how it works. Additionally, we’ll also cast some light on why the future of the sector is bright.
What Exactly are Quick Service Restaurants?
QSR is the industry name for fast-food chains in India. These chains offer good quality food items and also keep the costs to a minimum amount. At these restaurant types, a platter can be presented to you instantly.
Further, there are many quick-service restaurants that focus and specialize in making a single dish only. In these joints, the deployed workers are often very skilled in preparing and serving their particular dish. Sometimes, the chains also offer drinks and beverages to complement the food items, but this option isn’t mandatory.
For example, though the biggie Fassos specializes in making rice bowls and wraps as their main dish, they do not shy away from offering a few more options too. McDonald’s, another famous fast-food restaurant, specializes in burgers but also offers other food and beverage options. Recently, they launched McCafe that offers beverages and increases the variety of food they provide.
How Quick Service Restaurants Operate?
QSR generally operates as a chain model. They establish their outlets where customer footfalls remain maximum. That is why we find them in and around shopping malls or theatres.
To reduce cooking time, the food items are prepared in a centrally located kitchen. Then, the final step of heating and assembling food or other assortments like dips and sauces is done on location. This way the restaurant serves food faster and caters more customers.
This restaurant model offers multiple benefits:
The salary bracket for staff members remains lower than traditional restaurants.
These restaurants have nominal table charges as the tables here aren’t even extremely decorated.
So, overall, setting up of any quick service restaurant is inexpensive when compared to fine dine restaurant options.
Why is the Future of QSRs Bright?
We’re sure until now you understand that the concept of QSR has come a long way. In fact, CARE ratings of the concept are very good. This food-service system is to record an 11 percent growth between 2020 and 2023. The sales will surpass the 5-trillion mark by the end of 2022.
They’re so ubiquitous that we all tend to stop by QSRs knowingly or unknowingly. Now, let’s discuss the factors that make QSR an astounding success.
Millennials
People in the age bracket of 15-35 years love to dine-out and eat delicious food. So, naturally, they spend a huge fraction of their earnings on fast foods. If you’re a QSR chain, they’re your ideal customer base and you should focus on them. Luckily, current age demographic statistics say that the median age of India is 27 years. This figure is lower than the global average and a huge advantage for Indian QSRs.
Giant food chains have come up with some novel ideas to cater to the health-conscious millennials too. In western and southern Indian, entrepreneurs are investing around 1000 crore in the next 3 years to incorporate healthier food varieties. These foods will include low-fat & low-calorie options too. So, health-conscious millennials will not have to worry about the calorie-count. Further, the stores would be completely digitized and offer flexible cashless payment options to attract this sector as well.
Increase in Per Capita Income
India is a fast-growing economy with an annual growth rating standing at around 10-per cent. This growth has fueled the consumption boom of the nation. Modern-day Indians prefer to dine out at least once every week. This habit cements the position of QSRs in the economy.
With the sales growing exponentially, entrepreneurs are enjoying a huge amount of profits. That’s why QSRs are grabbing eyeballs with their high-profit margins and rising customer demand. The task has been almost effortless and names like Wow Momos have become household names. Another demographic keenly interested in QSR food is the office goers who don’t mind spending money and saving their cooking time.
Internet Service in Cosmopolitan Cities
Internet services have become more accessible than ever. The online ordering window has enhanced with the passage of time.
Now, customers in 2-tier and 3-tier cities want the same privileges & comfort available to the metropolitan cities. Quick service restaurants and third-party delivery services are expanding their outlets in small cities as well. India has the highest worldwide data usage, and this situation is even more conducive for these chains. So, many third-party vendors have spread their base across 2-tier and 3-tier cities in India as well.
Why are QSRs Street-smart?
Fine dining option is very pricey, and its preparation also takes a lot of time. They also don’t cater to the people who want to grab a bite while returning from the office. This makes the situation more favourable for quick-service restaurants. The food-items are easier on the time constraints and one does not have to worry about budget-breaking bills too.
Further, for the restaurant owner, the capital investment involved is low. It is relatively easier to establish a QSR. QSRs often have a positive word of mouth and most people recommend these joints to friends and relatives. This is another reason why these chains are being able to stand the cut-throat competition.
In the End
QSRs are adapting to the changes people want extremely well. Their increased popularity makes their presence felt not only in metropolitans but also in suburban areas. Overall, their future looks bright and CARE’s predictions are also positive. Their services are seeing a massive increase in demand.
The F&B industry is one of the most competitive industries to survive and make a mark in. The pricing, service, quality of food, and location and some of the primary factors that affect a restaurant’s standing in terms of the number of footfalls it gets, the economies of scale it generates, and the revenue it makes. Apart from these, there are various other dynamics that might directly or indirectly impact your restaurant’s business and may change the game overnight.
The increase in the number of fast food and take away joints has seriously influenced the preference of fine dining spots. The decision makers need to be updated and quick to take strategic steps to stand out at all points of time. Large restaurant chains seem to have a competitive edge over other eateries, and so does a niche restaurant that serves unique and uncommon cuisine which is not readily accessible or perhaps has a popular head chef. In order to stay ahead in the game, it is essential to conduct a detailed analysis of the demographics of the surrounding area, taste of the existing customers, and accordingly optimise the factors that make your business flourish.
This can be achieved by installing an updated and complete restaurant management solution that provides you with enough data to analyse and strategise and take those important decisions. Being digitally progressive by having a website/app or social media presence also highly influences the customers’ perception of your brand.
What a restaurant business also needs to be aware of is that if something is running successfully, it always has the potential of being imitated and cashed in by competitors. Considering this feature as constant of the restaurant industry, the business must make it a point to continually keep innovating and experimenting to witness the best outcomes and emerge as leaders.
