Increasing volatility in consumer behaviour- Affecting planned growth projections of QSRs

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What’s needed? : Sharp observations and vigilant moves to ensure sustainability.

Customer is king!! Customer preferences by far have been the ruling cause behind the evolution and development of ever growing business of the food and beverages industry, but industry today is experiencing many such factors which will cause existing restaurant trends to change and keep innovating.

Customers today are well-traveled, very well informed, conversant and savvy. Experimenting with food is something which is now a common practice. The knowledge now is not just limited to what has been served to them, they know their food better and take pleasure and pride in ordering more than just one type of cuisine. The love for food and the curiosity to experiment will give the industry new entrepreneurs who are bound to bring with them, new concepts, themes, and chef-led innovations.

The young strata of the population are one of the major forces behind the expedient growth of restaurant industry. Be it just a friend or a peer group, young people inadvertently get routed to the quick service restaurants, multi cuisine fine dines or the most happening and trending culture which has been one of the critical barriers for QSRs and Multi cuisine restaurants –the cafés, discs and drinks lounge.

According to a recent study done with 2050 outlets in all formats across the country by Tag-Taste, an online community for food professionals, over 650 QSRs and organized dining outlets had shut down between 2013 and 2016 in India, most of them being the Global QSRs.

Before actually diving deep into understanding and analyzing the trend we need to understand: What is QSR? Why are global QSR brands hurting?

QSR is the acronym for Quick Service Restaurant, also known as a fast food restaurant, is a specific type of restaurant that serves fast food cuisine and has minimal table service. The food served in QSRs or fast food restaurants is offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, and usually available for take away, though seating may be provided at the restaurant. Examples of such restaurants include McDonald’s, Wendy’s, and Burger King; and drink and snack chains, such as Starbucks, CCD, etc.

Why are global QSR brands hurting?

The change in food trends, regulatory restrictions, ill-planned expansion and irrational occupancy costs are some of the critical issues that the industry has been grappling with. As per a social context experiment it was revealed that the amount people eat increases with the size of the group, and it becomes a herculean task for the QSRs to deliver to such groups at a time. According to a study conducted in recent past, following are the reasons for the setback:

  1. Operational inefficiencies and high attrition rate: With options available with the workforce, quality manpower is a big challenge. The amount of restaurants and cafés (casual dining) opening up in the market cannibalizes the available talent pool. The competition woos your trained employees and attrition rate is extremely high.
  2. Mushrooming Standalones: Since last few years India has witnessed a proliferation of fine dining restaurants, cafés, pubs, bars, clubs, lounges, fast food joints and local food entrepreneurs which has gatecrashed the QSR party by focusing on wholesome experience with Lights, music, food, wine etc. The experience standalone restaurants provide QSRs fail to do.
  3. Sky Rocketing rentals: Rentals are a torture especially in the metros, now also in tier 2 cities, making business unviable and are as high as 60-65 per cent of the total turnover.
  4. Corruption and an unfriendly license raj: unethical practices at various levels despite of stringent controls by Government, the rats manage to find loop holes.
  5. Increase in customer’s willingness to pay: Consumers are ready to pay extra for a fine-dining experience. As the price gap between fine dining and QSR comes down, some are switching to the former.
  6. Thoughtless Growth Plans: KFC in 2014 had 395 outlets which is now reduced to 315, Barista dropped down from 225 in 2011 to 196 in 2016, Dominos closed 8 outlets in 2016 itself, 105 Dunkin’ donuts outlets open in FY 2017, 45 less than a year ago, shut 13 in year 2016.
  7. Tight fight by food tech startups: The likes of Zomato, Food Panda and Swiggy have increased food option for consumers. Moreover discounts and offers like BOGO deepens the pain in the neck of QSR structure.

How 3rd Eye Advisory® helped a QSR in increased revenues by 45%?

Our experts from the Marketing advisory helped the QSR to follow the 3 Ps of patience, perseverance and passion to sustain in the long run through process innovation and design thinking. The key learnings from the assignment were:

  1. Just food is not enough: A restaurant or eating point today is not just a place for eating. It is a place to socialize, to unwind and more. Eating out is no more the rich man’s indulgence. There are options, and people, irrespective of economic class, go out to eat and look for complete value for money. People opt for fresh modern vibes, suitable themes, an open kitchen, and a lavish space with a well-stocked bar and a temperature controlled wine cellar, so Innovation and Creativity is the key.

2.    Demand of global-local food: As per a study according to the India Food Services report 2016, brought out by the National Restaurants Association of India (NRAI), Indians are warming up to Western cuisine. American food accounts for 7% of total eating out occasions and pizza counts at 6.2%. For many QSRs serving North Indian and Chinese delicacies serve as cash cows because a typical Indian chooses north Indian food about 28% of the time, followed by Chinese (19%) and south Indian (9%), according to the report. Moreover, these days’ people are addicted to food channels on TV and food boards on Pinterest or websites, and usually want to consume what they see and crave.

3.    One Place fits all: The report divides the Indian eating-out population into four categories- About 36% of them are family bonding seekers; around 25% fun seekers (the ones who like to experiment); about 15% eat out to socialize and the remaining 24% are the discerning urban class—people with higher incomes who are willing to shell out a premium for quality and comfort, thus to retain, strengthen and create new customer base it is essential to strategize on the basis of changing customer preferences and demands.

  1. Customer Comfort and Liking: Customer comfort is defined as enhancement in services like home delivery and cash on delivery. The per capita income of the Indians has increased and there are more working people/couples per household, with more disposable income at hand, they have higher spending power on food which results in exploring home food delivery options more frequently.
  2. Maintaing balance between Healthy and Comfort food: With increased awareness in the young generation about the impact of fast food on the health and environment, on how raw materials or processed food items are sourced and which foods are organic and which are not. The impact they would create on health and environment as a whole is a matter of great concern, thus introducing concepts like Open kitchen, take kitchen tour, organic/unprocessed food, locally grown fresh raw materials etc. acted as a game changer for the QSRs.

It is important for the entire food industry to understand the need of hour and value the shifting trend of consumer behavior. Needless to mention, such understanding will come only when you are able to map your customers’ minds, which is possible through various tools like Comprehensive Market ResearchMystery AuditDigital Media Marketing campaigns, acquiring best technical and web support and adopting finest ERP solutions for optimizing operational efficiency and the think tank who will invest their knowledge, expertise and experience in helping your businesses grow and flourish.

Thanks for reading!

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Business Incubator

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A business incubator is a company that helps new and startup companies to develop by providing services such as management training or office space. It is a facility established to nurture young (startup) firms during their early months or years. It usually provides affordable space, shared offices and services, hand-on management training, marketing support and access to some form of financing.

What is business incubator?

Entrepreneurs have deep-rooted image of being self-reliant, business incubator helps to sustain the image of the business owners.

  1. Business incubator is an organization that acts as lifeline for small businesses and startups to survive and grow during their initial stages. This association provides secured and affordable environment for the entrepreneurs to boost their venture
  2. Business incubator generally offers physical space, consulting, management services, financial and technical support to the flourishing businesses
  3. Business owners can also get bailed out with additional services like accounting, marketing and networking, provided by few incubators
  4. The main aim of this organization is to elevate your business and take it to the next level

How does a business incubator work?

ü They gather multiple businesses under one roof, provide them guidance, temporary workspace and financial support.

ü Business incubator serves to an assortment of industries.

Benefits of business incubator –

1.    Affordable cost for workspace: It provides affordable workspace for the newbies and entrepreneurs need not have to worry about costly rentals or building costs.

2.    Shared operating cost: Entrepreneurs can be benefited with additional savings by sharing the operational cost with their co-tenants. Business tenants share their overhead costs like expenses related to office equipment’s, utilities, conference room etc.

3.    Strong networking partners: One of the plus points of business incubator is that it offers strong networking, right from the early stage of your business. Many media and tech partners help startups and small businesses who have assistance of business incubators.

4.    Great access to finance: Reputed incubators have good union with venture capital and banks thus tenants can get availed with better financial support.

3rd Eye Advisory® has helped many startups such as NGO’S, E-commerce companies and few financial companies by providing assistance as startup incubator. Some of the services we offer as a startup incubator are:

  • Helping with business basics and networking opportunities
  • Marketing assistance and connections to strategic partners
  • Accounting/financial management assistance
  • Access to bank loans, loan funds and guarantee programs
  • Access to angel investors or venture capital
  • Comprehensive business training programs
  • Advisory boards and mentors
  • Management team identification
  • Helping with business etiquette
  • Technology commercialization assistance
  • Helping with regulatory compliance
  • Intellectual property management and legal counsel

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What is Big Data? Big data is a term that describes the large volume of data – both structured and unstructured

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What is Big Data?

Big data is a term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. But it’s not the amount of data that’s important. It’s what organizations do with the data that matters. Big data can be analyzed for insights that lead to better decisions and strategic business moves.

While the term “big data” is relatively new, the act of gathering and storing large amounts of information for eventual analysis is ages old. The concept gained momentum in the early 2000s when industry analysts articulated the now-mainstream definition of big data as the four Vs:

Volume – Organizations collect data from a variety of sources, including business transactions, social media and information from sensor or machine-to-machine data. In the past, storing it would’ve been a problem – but new technologies (such as Hadoop) have eased the burden.

Velocity – Data streams in at an unprecedented speed and must be dealt with in a timely manner. RFID tags, sensors and smart metering are driving the need to deal with torrents of data in near-real time.

Variety – Data comes in all types of formats – from structured, numeric data in traditional databases to unstructured text documents, email, video, audio, stock ticker data and financial transactions.

Veracity — Veracity refers to the trustworthiness of the data and to develop mechanisms that reduces the inherent discrepancies in all the data collected.

Why Big Data Matters?

All companies, without undermining their size or industry, should start looking into Big Data initiatives and cloud-based storage as cost-effective strategies to improve their business performance. This, no doubt, applies to utility companies since they are entering an era of new challenges in providing consumers with all the information they want at a fast pace to keep them satisfied in order to build strong customer relationships.

To cater to this huge demand, many companies have sprung up to offer services to other businesses, enabling them to launch big data initiatives of their own. In other words, to leverage the information they have available in order to improve productivity and efficiency, and ultimately increase profits. This also enables companies to minimize infrastructure investments for their big data initiatives or avoid them completely by using cloud-based storage and analysis tools that can be rented when needed.

How it works and key technologies

There’s no single technology that encompasses big data analytics. Of course, there’s advanced analytics that can be applied to big data, but in reality several types of technology work together to help you get the most value from your information. Here are the biggest players:

Data management- Data needs to be high quality and well-governed before it can be reliably analyzed. With data constantly flowing in and out of an organization, it’s important to establish repeatable processes to build and maintain standards for data quality. Once data is reliable, organizations should establish a master data management program that gets the entire enterprise on the same page.

Data mining- Data mining technology helps you examine large amounts of data to discover patterns in the data – and this information can be used for further analysis to help answer complex business questions. With data mining software, you can sift through all the chaotic and repetitive noise in data, pinpoint what’s relevant, use that information to assess likely outcomes, and then accelerate the pace of making informed decisions.

Hadoop- This open source software framework can store large amounts of data and run applications on clusters of commodity hardware. It has become a key technology to doing business due to the constant increase of data volumes and varieties, and its distributed computing model processes big data fast. An additional benefit is that Hadoop’s open source framework is free and uses commodity hardware to store large quantities of data.

In-memory analytics- By analyzing data from system memory (instead of from your hard disk drive), you can derive immediate insights from your data and act on them quickly. This technology is able to remove data preparation and analytical processing latencies to test new scenarios and create models; it’s not only an easy way for organizations to stay agile and make better business decisions, it also enables them to run iterative and interactive analytics scenarios.

Predictive analytics- Predictive analytics technology uses data, statistical algorithms and machine-learning techniques to identify the likelihood of future outcomes based on historical data. It’s all about providing a best assessment on what will happen in the future, so organizations can feel more confident that they’re making the best possible business decision. Some of the most common applications of predictive analytics include fraud detection, risk, operations and marketing.

Text mining- With text mining technology, you can analyze text data from the web, comment fields, books and other text-based sources to uncover insights you hadn’t noticed before. Text mining uses machine learning or natural language processing technology to comb through documents – emails, blogs, Twitter feeds, surveys, competitive intelligence and more – to help you analyze large amounts of information and discover new topics and term relationships.

Using big data analytics, 3rd Eye Advisory® was able to identify customer insights patterns for an organization in FMCG sector which helped them in better customer choice decision making, cost reduction and development of customer specific products and services.

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The Positives and Negatives of Job Description

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Job description is a resourceful management tool which details the primary responsibilities, expectations, necessary skills required for a job. A well-structured Job description should include the below mentioned elements

·     Job title – Clarifying the level of the position in the organization

·     Objective/Purpose – A summary of job description specifying the need of the job

·     Salary range – Mentioning the minimum and maximum pay an ideal candidate would       get, if he joins the organization

·     Roles and Responsibilities – A detailed list of primary and secondary objectives in their order of importance. Any responsibility which consumes more than 5% of an employee’s time has to be accountable.

·     Qualifications and educational requirements – Detailing the prerequisites to perform this job along with the skills expected from an individual

Other details such as location, position type, reporting structure, and job family will add great clarity to a job description. In addition, a lot of organizations have moved to adding performance metrics in the job description.

Why do we need a job description? – Positives

·     Setting clear expectations

A detailed job description setting clear expectations from an ideal candidate beforehand, will decrease a lot of efforts of recruitment team by eliminating the need of explaining the expectations to every interested individual.

·     Hiring the right person

Well-written job descriptions help attract qualified individuals who are ready to perform the specified duties. The details about the role and responsibilities of the job holder will help the candidate be prepared of the interview process which makes the selection process much easier.

·     Setting key performance measures and evaluating employee performance

Employers can use the job description to derive key performance measures (Key result areas & Key Performance Indicators) and also to evaluate the performance of each individual against his/her contribution toward specified duties.

·     Acts as a legal document

Job description acts as a legal document limiting the legal liability of the employer. A job description stating the physical requirements will act as a legal proof and limits the employee’s power to restrain to perform a duty, or complain about it.

Is it all helpful? – Negatives

·     Becomes outdated quickly

While a job description may be accurate when it is written, it has to be changed as in when an employee need to perform a new type of work or if he is entitled to be responsible for an additional duty. It is a very time-consuming job to keep updating the job descriptions as they have to updated every time a change is made.

·     Improper job descriptions

Vague and inaccurate job descriptions will attract legal exposure and increase the employee’s power to restrain from performing a duty. There have been instances where a poorly written job description acted as an evidence in lawsuits.

·     Limits Innovation

Job description details the primary responsibilities and performance expectations, which limits his/her motivation to add more value, apart from the specified duties, by being innovative in improving procedures and methods. Employee job descriptions have to be flexible to work outside of the box.

3rd Eye Advisory® has been a key influencer for many organisations in various sectors across global boundaries to draft the job descriptions of every employee of their organisation in order to ascertain that proper job responsibilities are associated with every employee and the employees feel empowered to take up their duties. This helps in enhanced productivity and improved decision making in the entire organisation which directly helps in gaining financial profits. An organisation in FMCG sector has been greatly benefitted by defining their job descriptions through our experts in human resource advisory team, which in turn increased the employee productivity by 33%.

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Gamification- the new powerful tool for Human Resource Management

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What can gamification do for processes in Human Resource Management, is a daunting question for every organisation these days. It is no longer a myth that gamification of Human Resource Management as a function has significantly helped the employees to create an environment in which the employees feel recognized and rewarded for their achievements, even beyond compensation and benefits. The employees are linked with the business goals and the achievements are expanded beyond points, badges and leader boards. So what is Gamification? Gamification is the usage of game-thinking and game mechanics in non-game scenarios such as business environment and processes, specifically in recruitment, training and development, and motivation; in order to engage users and solve problems, as defined by Gartner Group.

According to the author of Gamification of Learning & Instruction, Karl Kapp, the key to gamification is how addictive it can become across all generations of people and believes that out of the different advantages gamification has, the prime advantage is that it encourages employees to be engaged with the gamification activity thus developing stronger network in the organisation. A number of organizations are using gamification for talent management, workforce efficiency, training and development and tap into new talent pools through different mechanisms like goal setting, neck to neck competition, real-time feedback and rewards.

According to a Gallup research released in April 2012, less than one in 10 employees are ‘engaged’ in their jobs. The remaining are ‘not engaged’ (60 %) or are ‘actively disengaged’ (32 %) – the most harmful form of disengagement. The objective of gamification in human resource management is to develop mechanisms from game design and implement them in non-game contexts in order to make the employees more engaged.

The immense power of gamification can also be derived from the fact that many organisations have started to develop mechanisms through which the rewards and incentives are built using gamification and is linked with employee performance management and employee engagement. This has helped the companies to not only track employees’ progress towards individual goals but also receive tangible or public recognition of their achievements. These badges of motivation can often be shared on internal and social networks for further visibility and motivation.

Our experts from Human Resource Advisory have helped many companies to deploy gamification mechanisms in their Recruitment and Selection, Training and Development and Employee Engagement policies. We developed gamification mechanism for recruitment at an organisation in hospitality sector to optimise human resource costs and time required for recruitment and acclimatize prospective employees with the organization, the company culture and the hospitality industry. This helped the organisation to reduce the time required for induction of employees by 50% and in turn employees were acclimatized with the organisation.

For another organisation in the manufacturing sector, who were looking for leadership training, we developed an online module using the concepts of real time gamification processing. This allowed the organisation to have the creation of real-life environments with built-in networking features, enabling the development of Online Role Playing Games. The end result of the training was development of better collaboration, leadership and team player competencies as the employees were subjected to real-world industrial training and simulation.

Our experts have also assisted in designing a gaming based wellness program for the employees of an organisation in IT sector which will help the employees to keep a check on their healthy by choosing and developing plans to foster wellness. This information is shared through an online assistant on regular intervals with the employees in order to promote employee wellness.

In a nutshell, gamification in human resource management has been a real game-changer and has become an important component of a company’s overall Human Resource strategy. The Gartner research indicated that by 2015, 50% of organizations that dealt with innovation processes have gamified their processes. The market for gamification is expected to grow significantly in the next coming years. What is your company doing to incorporate gaming techniques into your workplace?

 

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Why Corel Draw is not so good for printing: Things You must ensure before going to print

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Based on my past experiences in Graphic Designing, I would like to clear that why Corel Draw is not so good for printing in comparisons to Adobe Illustrator. The basic difference between the two graphic designing software is provided below:

·     CorelDraw software is user-friendly and has lesser learning curves, i.e. anybody can learn it, while Illustrator is regarded as matured software involving stiff learning curves.

·     CorelDraw software can be learned even from tutorials, but one needs proper training from a good graphic design institute for learning Illustrator.

·     Print preview in CorelDraw is not as good as Illustrator, Illustrator being a postscript file format, it renders more accurate print preview.

·     All versions of Adobe Illustrator run on PC and Mac, while the same is not the case with CorelDraw.

·     In some action CorelDraw is far smarter, simpler and easier than in Illustrator, but for print you must have CorelDraw x5 or latest version.

·     If you’re new to design and use windows, I recommend you to use Illustrator. It’s more of a professional program and will help you to learn to be a better designer.

Well! If you still have Corel Draw as the only option, then ensure to tick off the following checklist before proceeding for the print-

·     Always try to use simple effects and prefer flat colour tones

·     Remember after print your design, colour tone can be changed into a little bit dull and matt, so use slight bright clear tone.

·     Try to avoid shadows effect, small bold font and small compact designs.

·     Make your design compatible with Coral Draw (x3, x4, x5) version of print agency.

·     Ensure proper bleeding areaCut line and Safety Zone.

·     Ensure your outputted is at 300DPI.

·     Convert all text into outlines.

·     Ensure your CorelDraw file is in CMYK mode.

·      Save Your File as a PDF with Bleed and set bleed limit as 0.125.

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Social Media Detoxification and its Impact on Businesses

Social Media Detoxification and Its Impact on Businesses

Detoxification (popularly termed as Detox) means a time period during which a person abstains or refrains from using something that is toxic or harmful for us. Social Media is as much a bane, as it is a boon. Nowadays, studies show, social media addiction is more widespread than any other substance abuse. To deal with this, a new concept is slowly emerging and gathering widespread attention: Social Media Detoxification.

In simple terms, Social Media Detoxification refers to cutting off all social media interactions for a certain period of time, usually one to three months. Social Media Detoxification serves as a reaction to information overload, which is a result of new media and digital connecting devices. Constant usage of digital connecting devices at the work place has been observed to result in increased stress levels and reduce productivity. That being said, social media is a vital platform for businesses to grow and prosper in the cut throat competition prevailing today.

Social networks are one of the fastest growing industries in the world. Having a social media presence, accompanied by an appropriate strategy and plan, can be highly beneficial to the business. Hence, as much as Social Media Detoxification is beneficial for the users, it has an adverse impact on the businesses which rely on social media for their success.

Impact of Social Media Detoxification on the Business

Reduced Audience and Brand Awareness

Due to Social Media Detoxification, the audience available to the business significantly diminishes. Social media is one of the most efficient marketing methods to syndicate content and increase business visibility. Reduction in audience due to adoption of Social Media Detoxification results in diminution of brand awareness.

Difficult to Gain Customer Insight

Social media generates a large amount of data about customers in real time. Every day, there are approximately 500 million tweets, 4.5 billion likes on Facebook and 95 million photos and videos posted on Instagram. Behind these astonishing numbers, is a plethora of information about customers- who they are, what do they like etc. Social Media Detoxification results in loss of this insight and makes it harder for the business to understand what its customers want and how to serve them better.

Diminished Website Traffic and Search Ranking

One of the most significant benefits of social media for a business is assistance in increasing their website traffic. Apart from helping in directing people to a particular website, social media also aids in achieving an elevated search ranking. Social Media Detoxification has a negative impact on the website traffic as well as search engine ranking of a business.

Inconvenience in Sharing Content with the Masses

Social Media is one of the fastest and most cost efficient ways to market a business. The various social media platforms facilitate dispensing of information, about a product or service, to the public. It also exposes the business to new eyes and with one touch, a multitude of people can learn about the business. Social Media Detoxification makes it gruelling for the business to increase the awareness of the masses, about its products and services.

Decrease in Sales

Social Media has proven to be a very effective tool for the sales team, in any business. B2B companies use platforms like LinkedIn to reach out to their customers directly, while B2C companies can use the likes of Twitter or Facebook to increase their exposure. Having a social media presence, allows the customer to understand a brand, giving it more chances to gain business and popularity. Due to Social Media Detoxification, the businesses cannot directly interact with their customers and these results in a downfall in the sales of the business.

This is an emerging problem for the Digital Media Marketers today. If not dealt with properly, it can have a negative effect on the business. At 3rd Eye Advisory, we focus on spreading awareness about a brand, increasing its popularity as well as tackling problems that arise due to unfavourable conditions or trends on various social media platforms, by following a modern marketing approach. We believe in providing an air tight marketing strategy so as to obtain best possible results.  For a solution to overcome this problem effectively #ask3rdEyeAdvisory. 3rd Eye Advisory aims at providing result-oriented cutting edge solutions to its clients.

 

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