Select Page

    Restaurant | QSR

    Restaurant | QSR

    Restaurant Business Mistakes

    I) Challenges Faced by Restaurants and QSR Industry

    #1. Recruitment & Retention

    Yet another challenge faced by the restaurant business or the QSR industry is the recruitment of the right people at the right time and place to impart exceptional service. Research estimates show average employee turnover rate in food services is 155%. Annual turnover among managers is around 61%. Restaurant owners and QSR entrepreneurs need to find and retain top talent as well as invest in technologies like smart kiosks, tablet menus, Kitchen equipment’s standardization, third-party delivery solutions and other tools which cannot eliminate but reduce operational errors and dependency on human resource.

    For efficient day to day restaurant operations, it is essential to have the right employees at the right place and a good team that works and harnesses collective synergies for giving your restaurant or fast food outlet a competitive advantage.

    Placing the right emphasis on hiring and training top talent can help in reducing costs across time. Detailed organogram, job descriptions, qualification, role based recruitment policies, employee friendly HR policies, performance mapping parameters (KPI’s) are the key to finding the right talent. Assessing knowledge and skills can offer deep insights into whether a potential applicant can be a great team member.

    Once the proper employee is hired and trained, turnover to a minimum is the top priority.

    #2. Averting Food Wastage

    Wastage of food and resources directly impact restaurant finances and are also the top fast food industry problems of modern hospitality sector. The greater the wastage, the higher are the losses. Lack of adequate technologies and suitable infrastructure, along with non-integration of the food value chain trigger wastage to the tune of 30 to 40 percent across the supply chain.

    A crucial aspect of averting food wastage is cost control and effective inventory management. Those failing to do so face more supply shortages during peak season and unforeseen expenses along with it. Individual business owners managing the inventory and menu pricing need to adjust the ordering process and limit wastage. Monitoring costs as they fluctuate can impact gross profit on menu items. It is critical to know what ingredients cost, as expenses can be impacted by this.

    Wastage of food is unaccountable to owners and has a direct impact on the finances.
    Restaurants and QSR chains need to keep tight inventory control and spot food losses or food costs in proportion to sales.

    #3. Need for an Omnichannel Approach

    As digital channels are increasingly catching on, and restaurants and QSR industry in general, are targeting e-commerce models like Dark Kitchen, Cloud Kitchen, Delivery options with food aggregators, etc the need for an omnichannel approach has become incredibly important. Adopting omni-channel platforms to restaurant and QSR industry has become an necessity rather than just an option to expand business. Omnichannel approach can be achieved with the help of the right multi-channel consulting solutions providers who can guide to the right things, at the right time. Food Tech companies are also making a mark in this space by offering revolutionary technologies like AI based choices, supply-chain & logistics automation and low cost deliveries to consumers, etc.

    Digital Retail Omnichannel Food Business

    #4. Building Social Media Presence

    Social media presence is critical. In the present digital era, everything is connected and restaurant or QSR outlets are no different. Food delivery and rating apps like Swiggy, Zomato, Uber Eats, etc play a vital role in advertising restaurants. Social media campaigns must be spot on. PR expertise has to be exceptional. Only then will customers come to your food outlet or patronize your hospitality chain.

    Restaurants are increasingly facing the challenges of the reputation economy. Hospitality brands now live or die based on what is said online. Apps and sites like UberEats, Google, Yelp and Foursquare reflect the customer experience. Close to 8 in 10 customers respond to such online reviews. Harvard Business School research further found a one-star rating increase on Yelp (an app which publishes public reviews) leads to a 5 to 9 percent rise in revenue.

    #5. Supply Chain Management

    Planning the supply chain is essential to bring down operating expenses and optimize delivery procedures and timings. As restaurants, it is also essential to develop and nurture quality partnerships with suppliers and vendors. Businesses in the hospitality industry need to evaluate vendor reliability, cost efficiency and flexibility. With day to day action, it is time consuming to research and connect with suppliers one needs to run a business with. But effective supply chain management is the key to success in the restaurant and QSR chain industry.

    #6. Recipe Management

    Without restaurant QSR software for recipe management, or waste audits, your restaurant will fail to grow or thrive. Your current operations and potential cost-savings must be clear. Understanding the annual waste in waste categories is one part. Implementing recipes to control wastage, pilferage and inventory replenishment is another.

    Tracking wastage over time and assessing the steps taken to reduce it are the key to successful recipe management. Educating work teams to reduce waste and prep cooks with cutting techniques that keep food items fresher for longer or yield the most amount of products for the final dish is a good step to take. The more a food source is utilized effectively, the less wastage there is.

    Recipe management helps in effective control over wastage and optimal utilization of fresh products sourced for crafting dishes and items on the menu.

    II) How YRC Consultants Help???

    From opening and launching a restaurant or cloud kitchen to making the transition to a new branch or a franchise model or expanding your hospitality business, trust specialists at YRC hospitality consulting. Experience the certainty of trained experts working on strategies like designing customized Standard Operating Procedures and Franchise Business Plan guaranteed to help your restaurant or QSR business grow.

    If your eatery is thinking “how can we develop our bakery brand or restaurant?” it’s clear you need a QSR consultant. Quick Service Restaurant (QSR) consulting solutions from YRC, the premier restaurant business consultant can help. YRC specialists develop standard operating procedures for casual dining, and are the go-to Quick Service Restaurant consultant your brand needs to expand. As a premier QSR franchise consultant, YRC is the first choice of those looking for a capable and exceptional food franchise expansion consultant.

    As the hospitality industry becomes more focused and attuned on customer requirements, the basic need of the hour is the use of detailed standard operating procedures or SOPs for operating food retail chains can yield solid ROI and streamline your restaurant or QSR outlets. From managing the menu to using freshly sourced products, handling customer grievances to managing your in-house team of staff and chefs, there are many benefits of choosing SOP specialists at YRC to oversee and grow your restaurant business.

    Concepts where YRC Business Management Consultants have the expertise:

    • Quick service restaurants (qsr)
    • Casual dining restaurants
    • Fine dine restaurants
    • Take-away fast food outlets
    • Dark kitchen
    • Cloud kitchen
    • Delivery-only kitchen
    • Boutique restaurants
    • Café, bistro and bakery
    • Food trucks
    • Pop-up restaurants
    • Pubs, brewery, bars

    Business Management Consultant

    III) About Restaurant | QSR Industry

    Restaurant, QSR and hospitality industries are flourishing, as new entrants seek to join in. The restaurant and QSR corporate ecosystem and entire industry is enjoying the benefit of economies of scale. But along with the profits, come the challenges faced by restaurant management. Among the biggest challenges facing restaurant industry experts and ventures alike is the millennial customer. While designing an SOP for QSR these factors must be taken into consideration.

    Discerning, demanding and digital natives, the new-age restaurant patron has higher standards even for quick service restaurants. A food delivery service SOP can help. Concerns revolve around diet, nutrition, sourcing of ingredients and food sensitivities or allergies. Younger diners are more adept at a sophisticated worldview when it comes to eating out or management of restaurant service issues. So handling the restaurant or QSR outlet in a professional and organized way can help hospitality entrepreneurs to bring a lot to the table. According to a BCG survey, going digital could well be the panacea for the restaurants and QSR industry with concepts like Dark Kitchen, Cloud Kitchen, Delivery Kitchen, etc. Market leaders like Domino’s note 60% of their sales comes from digital channels, according to a BCG research report.

    Customer Service Restaurants

    To read more refer following resources:

    Get Advice for Restaurant | QSR Industry Consulting

    3 + 8 =

    Related Blogs

    5 Things to Check Before Investing in a Franchise Brand

    5 Things to Check Before Investing in a Franchise Brand

    Unlike in case of startups where everything is planned from the scratch, in a franchise business, the franchisees get to work on a predefined ready-made business platform which saves them from the struggle and hardships of starting a business from nothing and help...

    read more
    How can an Indian SME Attract Investment?

    How can an Indian SME Attract Investment?

    The official records put the number of MSMEs existing in India at over 500 lakhs approximately. The numbers may appear frightening for budding entrepreneurs and other existing SMEs as it may present an exaggerated picture of competition. However, it also needs to be...

    read more

    We work only for Visionaries.

    PROCESS AUTOMATION

    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.

    VIDEOGRAPHY & PHOTOGRAPHY

    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)

    DIGITAL MARKETING

    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.

    IT INTEGRATION

    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.

    WAREHOUSE & LOGISTICS PLANNING

    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.

     

    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.

    UI & UX DESIGNING

    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!

    SAMPLING & PRODUCTION

    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.

    PRODUCT DESIGNING / SOURCING

    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.

    BRANDING

    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.

    ORGANOGRAMS & SOP’s

    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.

    CRITICAL PATHWAY

    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.

    BUSINESS STRATEGY & BUSINESS PLAN

    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.

    MARKET RESEARCH

    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.