Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar

Lucknow 226 010
Academic Year
Batch
Trimester
Programme

2015-16
2014-16
5th
PGDM, PGDM-FS

(PGDM / PGDM-FS / PGDM-RM)

Name of Course
Section
Name of Faculty

Customer Relationship Management

A
Dr. Reeti Agarwal

Nature of submission
(Assignment / Project Report)
Topic of Assignment / Project

Project Report

Deadline for submission

December 24, 2015

Group/ Learning Team Number

CRM Practices in a restaurant industry

Submitted by:
Sl.
No.
1
2.
3.
4.
5.
6.

Name of Student

Enrollment No.

Nikita Srivastava
Raj Vardhan Singh
Ashraf Asif Siddiqui
Shubhankar Vaish
Abhishek Tewary
Sankalp Bajpai

JL14FS23
JL14PGDM195
JL14PGDM196
JL14PGDM
JL14PGDM
JL14PGDM

Date of receiving at PMC

TABLE OF CONTENTS

Signature

Signature of PMC staff

CHAPTER 1
(a) MEANING AND IMPORTANCE OF CRM
Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data throughout
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving sales growth. CRM systems are designed to compile information
on customers across different channels -- or points of contact between the customer and the
company -- which could include the company's website, telephone, live chat, direct mail, marketing

materials and social media. CRM systems can also give customer-facing staff detailed information
on customers' personal information, purchase history, buying preferences and concerns.
Looking at some broader perspectives given as below we can easily determine why a CRM
System is always important for an organization.
1. A CRM system consists of a historical view and analysis of all the acquired or to be
acquired customers. This helps in reduced searching and correlating customers and to
foresee customer needs effectively and increase business.
2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and
which not.
3. In CRM system, customers are grouped according to different aspects according to the type
of business they do or according to physical location and are allocated to different customer
managers often called as account managers. This helps in focusing and concentrating on
each and every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also useful in
acquiring new customers. The process first starts with identifying a customer and
maintaining all the corresponding details into the CRM system which is also called an
Opportunity of Business. The Sales and Field representatives then try getting business out
of these customers by sophistically following up with them and converting them into a
winning deal. All this is very easily and efficiently done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very cost-effective.
The advantage of decently implemented CRM system is that there is very less need of paper
and manual work which requires lesser staff to manage and lesser resources to deal with.
The technologies used in implementing a CRM system are also very cheap and smooth as
compared to the traditional way of business.
6. All the details in CRM system is kept centralized which is available anytime on fingertips.
This reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. This increases the chance of getting more business
which ultimately enhances turnover and profit.
8.

If the customer is satisfied they will always be loyal to you and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth of
business.

CHAPTER 2
(a) INTRODUCTION TO INDUSTRY

Restaurant companies are essentially retailers of prepared foods, and their operating performance is
influenced by many of the same factors that affect traditional retail stores. For the most part,
restaurants have business models that are relatively easy to understand, and the array on the Value
Line page is the same as that of a standard industrial company. Nonetheless, there are a number of
unique factors to consider when making investment decisions regarding this large and segmented
industry.
Competition between restaurants is intense, since dining options abound. And, while there are
certainly dominant players in this industry (especially among fast-food purveyors), no one company
has the market cornered. Indeed, virtually every restaurant location must compete not only against
other publicly traded chains, but also a wide array of small, local establishments. Competitors
include everything from delis and pizzerias to fine-dining restaurants. And, of course, it is relatively
easy to forgo prepared foods, altogether, in favor of home cooking, which is usually a less
expensive option. Thus, restaurant meals are discretionary purchases, and the industry tends to be
highly cyclical.
Restaurants may be classified or distinguished in many different ways. The primary factors are
usually the food itself (e.g. vegetarian, seafood, steak); the cuisine (e.g. Italian, Chinese, Japanese,
Indian, French, Mexican, Thai) and/or the style of offering (e.g. tapas bar, a sushi train,
a tastet restaurant, a buffet restaurant or a yum cha restaurant). Beyond this, restaurants may
differentiate themselves on factors including speed (see fast food), formality, location, cost, service,
or novelty themes (such as automated restaurants).
Restaurants range from inexpensive and informal lunching or dining places catering to people
working nearby, with simple food served in simple settings at low prices, to expensive
establishments serving refined food and fine wines in a formal setting. In the former case,
customers usually wear casual clothing. In the latter case, depending on culture and local traditions,
customers might wear semi-casual, semi-formal or formal wear. Typically, customers sit at tables;

their orders are taken by a waiter, who brings the food when it is ready. After eating, the customers
then pay the bill.
(b) NEED FOR CRM IN A RETAURANT INDUSTRY:
Its a busy night in your restaurant -all the tables are booked and more customers are lined up while
waiters are occupied serving meals and clearing tables. The kitchen is firing on all cylinders.
Managers are working the floor making sure things are running smoothly. At the end of the night,
the coffers have been nicely filled, waitrons have earned great tips and happy satisfied customers
have strolled out the door. It was a good night for business.
But, how do you keep the momentum going and have more profitable nights like this with a
constant stream of customers? How do you ensure those satisfied customers eat at your restaurant
regularly?
Lets face it, the restaurant industry is tough. There is some debate on the statistics, but, it is
estimated that between 60 80% of new restaurants fail within the first year. Around 70% of those
that make it past the first year are likely to close their doors within the next three to five years.
These are scary statistics for restaurant owners. For those that do last, life is still not easy competition is around every corner. Customers are spoilt for choice. How do you get a leg up to
help you stand out above the crowd that are all clambering to get their feet through the door?
Relationship building is key; it can make the difference between a one-time customer and those that
return on a regular basis. These days there are plenty of CRM solutions out there that cater
specifically to the restaurant industry and have changed the game significantly in this highly
competitive arena.
5 ways a restaurant's CRM initiative can turnaround customer churn:
1. Build a customer database
The first thing a CRM system does is gather information and help the restaurant owner get to know
their customer.
1. Customer contact details
2. Frequency of visits
3. Preferences on meals
4. Average spend per visit
when linked to the restaurants point of sale software, it can provide valuable reports and analysis
on1. Most popular menu items
2. Items that are not selling
3. Busiest days/ nights and help identify the reasons why
4. If it is a nationally franchised or chain of restaurants, it can provide the franchisor with
information on which regions are performing better than others.
This becomes the basis for communication with the customer, helps track customer trends and feeds
into marketing plans.
CHAPTER 3
(a) INTRODUCTION TO MCDONALDS

McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68
million customers daily in 119 countries across more than 36,000 outlets. Founded in the United
States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice
McDonald. In 1948, they reorganized their business as a hamburger stand using production line
principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He
subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The
McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as
well as sales in company-operated restaurants. In 2012, the company had annual revenues of $27.5
billion and profits of $5.5 billion. According to a 2012 BBC report, McDonald's is the world's
second largest private employerbehind Walmartwith 1.9 million employees, 1.5 million of
whom work for franchises.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft
drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has
expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.

(b) INTRODUCTION TO GINGER RESTAURANT

Ginger is an Indian hotel chain, established by Roots Corporation Limited, and part of the Tata
Group, a new brand under a category called "Smart Basics Hotels". The first hotel was opened
in Whitefield, Bangalore in June, 2004. Roots Corporation Limited is a fully owned subsidiary
of The Indian Hotels Company Limited (IHCL). IHCL, part of the Tata Group is Indias largest
hotel chain with more than 70 properties in India and abroad and over 100 years' presence in Indias
hospitality sector. It initially charged 999 per night in 2004. Today it charges range from 29993499 plus taxes per night.

CHAPTER 4
(a) CRM PRACTICES IN MCDONALDS