Peng’s Chinese Takeaway

Blog 4 - Horizon Scan & Gap Analysis

In the last blog, we did an analysis of Peng’s business and his current business model. In this blog, we will do a Horizon Scan for Peng’s business, while looking at a more modern business plan to implement Peng’s request and a digital transformation strategy for his business. Based on the analysis that was done previously, Mr. Peng has realized that he cannot continue to operate his business as it is currently if he wants the business to survive the changes in these modern times.

The reason for conducting a Horizon Scan Is to have a systematic search done for impending trends, opportunities and flaws that might limit the likelihood of achieving a positive customer experience and a successful Digital Transformation. Let’s call this project (Peng’s Digital Transformation). We have discussed and highlighted some areas that would transform and propel the business forward.

1. Create a website and a mobile app (Establishing an online presence)

2. Integrate with 3rd party providers (Deliveroo, Uber Eat, etc.) (Find a more refined and efficient way to work with these providers)

3. Use virtual counters (including automatic phone orders processing) (Integrate technology into his business operations)

These areas would help to develop an online presence and improve customer satisfaction while becoming more marketable/profitable to the changing customer environment.

The competitiveness that exists in the fast-food sector is depicted in the image below.

Current Trends & Opportunities for the Fast-Food Sector

These points show the society drivers, consumer views and the new technological advancements within the fast-food sector in the UK.

1. Energy Saving smart kitchen and restaurant appliances. (Voice command constructs for placing orders over the counter that also gives recommendations).

2. Contactless Dining Experience (QR Code Menus, Credit Card Payment Facilities at each table).

3. Artificial Intelligence in the Kitchen.

4. Sustainable Packaging (Using Materials that can be recycled).

5. Personalized Business Website (take orders online, book dining arrangements online, make payments online, etc.).

6. Changing food preferences among consumers, (vegan, Vegetarian, Gluten Free, etc.), people are becoming more health conscious and changing the way they eat.

Online interaction and mobile orders have increased drastically since the pandemic. Customer behaviour has changed to a more contactless interaction. Food delivery is now much more preferred and more and more of the competition has been catering to consumers in these areas. For Peng, the virtual counter system will also produce a central database where all retail actions can be tracked and examined.

Current Threats in the Fast-Food Sector

1. Rising Prices for ingredients and rising energy costs.

2. Labour shortages and supply chain challenges.

The problems experienced by firms in the fast-food sector are reflected in part by price increases for food and beverages. These difficulties include labour shortages, rising prices, and supply chain problems. Aside from this is the increased cost in energy prices and inflation due to the pandemic and Brexit.

A Gap Analysis on customer satisfaction and technology for Peng’s business.

In, recent years customer behaviours have been changing. These changes range from face-to-face interaction to preferring to purchase food via mobile device apps and business online platforms, from eating whatever is on the menu to eating healthier (gluten-free, vegetarian etc.). These are just a few examples of the changing customer environment.

In relation to technology, we have also seen the shift or the role it plays in business operations. We have evolved from physical menus to scanning QR codes, having digital menus in restaurants and on our devices, from dealing with bartenders and hostesses and waiters to a more contactless service. From manually imputing inventory to digitally checking inventory. These are just a few examples of how business has been transformed over time.

See the Diagram below.

To also assist in remaining relevant and closing the gap. Occasional online surveys will be carried out and also online reviews on Peng’s website.

Analyzing the 3 options available for Peng. Benefits and Challenges

1. Create a website and a mobile app (Establishing an online presence)

Websites, Mobile Apps and social media offer several benefits for restaurant owners.

Benefits

Brand awareness and Marketing, communicating with customers virtually, creating loyalty programs, improving efficiency and business, providing customer data such as customer habits and favourite meal choices, reducing long lines and order wait times, providing multiple payment options, receiving customer feedback, and having posted customer reviews.

Challenges

Internet outages, downtime due to the website and mobile app maintenance or errors, poorly designed website and app and unresponsive website and app functions.

Most of the challenges would stem from the website and mobile app being poorly designed and not tested for errors. Taking to time to have them both constructed and tested properly should eliminate most if not all issues from occurring. Also running regular maintenance can help spot errors early and keep them running smoothly.

2. Integrate with 3rd party providers (Deliveroo, Uber Eat, etc.) (Find a more refined and efficient way to work with these providers)

Third-Party Provider Benefits and Challenges.

Benefits

Increase business exposure from their website and mobile app and convenience in having a delivery service that is outsourced.

Challenges

High cost to the restaurant for the service, the possibility of customers receiving bad service, poor delivery times as they serve multiple businesses and poor food presentation due to mishandled packages.

Since most of the process is out of the business owner’s control after the food leaves their care, multiple challenges can occur. The delivery worker also isn’t an employee of the restaurant and has no allegiance to making sure their customers are served well. 3rd party providers also employ young persons, and they have a high turnover rate which means that these problems can be reoccurring.

3. Use virtual counters (including automatic phone orders processing) (Integrate technology into his business operations)

Virtual Counters are the ability to conduct business without the customer having to physically come into your restaurant. By offering either options 1 or 2 by default you are offering a virtual counter.

References

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