Restaurant of the

Future

For Internal Circulation Only

 Yum Brands: Using innovation to focus on customers
Yum Brands is one of the world's largest restaurant companies, with thousands of KFC, Pizza Hut, and Taco Bell restaurants in more
than 130 countries. The company had traditionally focused on brand building, with autonomous decisions made at the division
level, making it difficult to dictate common technology solutions and facilitate technology adoption.
Furthermore Yum Brands lacked a business and technology strategy to evolve from a traditional mass-marketing approach to new
strategies focused on the "digital customer." The company wanted to shift customer interactions from anonymous to intimate,
utilizing new technologies such as mobile ordering, social media, mobile ecommerce, loyalty, digital coupons, and nontraditional

Yum’s payment methods.

The EA team, named Technology Innovation & Architecture (TIA), was responsible for raising the awareness of technology
Strategy innovations that could accelerate or disrupt the business. To encourage thinking about "the age of the digital customer," the EA
team began crafting messages, including a short "art of the possible" video that addressed consumer expectations and the
impending impact of technology on the restaurant industry.
TIA built on this understanding with customer journey maps overlaid with technology-based opportunities, augmented with best
practices employed by other companies along with other market research. The market research TIA presented revealed how Yum
Brands compared to competitors, primarily in processes and use of technology. TIA organized a digital summit of more than 300
marketing professionals to promote digital excellence in Yum markets, including increased use of social media.
In the future, digital awareness and experimentation will continue to be an agent of change, particularly as the company plans to
identify opportunities to leverage technology platforms across divisions and integrate those platforms. The underpinnings TIA has
built -- digital awareness and experimentation leading to implementation -- will provide a foundation from which to truly drive
digital transformation across the organization.
Munjal Dave, senior business architect at State Farm, said this about the Yum Brand case study: "They are an example of moving
beyond the traditional realms and techniques of EA, embracing customer experience methods and using them to shape and
connect technology innovation to business outcomes."

From <http://www.infoworld.com/article/2612201/enterprise-architecture/enterprise-architecture-2013-infoworld-forrester-
enterprise-architecture-awards.html>
Outlet visited :
KFC at Sacred World,
Wanowrie. Pune (very prime
up market property about
10000 sq.ft)

Business Facts :
There are approx. 25 KFCs in
Pune
Only 3-4 are making money
This one is in losses

Approx. 100 customers per

day
15% are ordering out
Rs. 260 average order size
180-200 customer on
weekend/holidays
30 staff & 3 managers
Growing Corporate & Bulk
Orders
Call Centre Order fulfillment
issues
 A hungry consumer’s Journey Map – This should be our starting point
Aware Decide Go Explore Buy Wait Receive Eat Check out

I am hungry. I wonder What dish Looks Looks I am excite Ah the food Delicious & Was it really
Have no how this will be a big Good/Bad Good/Bad for the at last! Fresh good?
Thinking

time. service hit? I hope Like/do not Like/do not food? Looks Was it
Want to eat works? everyone like the like the Will the good? Warm but worth the
healthy like’s the ambience? ambience? wait be too Looks bad? soggy spend?
place/food? long?

Find out Ask Friends/ Drive out – Explore Get friend’s Small Talk Ask family/ Eating Ask family/
what’s Family? Directions? Menu / family Check friends Watching friends
available. Use Apps Order out? Ask Friends/ preference Smartphone- about theirs other’s eat about theirs
Doing

Take out viz. Zomato Call Outlet? Family Order & do other Listen for Comment
Menus? Use Apps Pay things while approval/ on
Ask Friends? viz. Zomato waiting disapproval Facebook
Use Apps Look around Rate on
viz. Zomato Foursquare

I hope I can I hope I am I hope I am I hope I am I hope I am I hope I am Feeling Feeling Would I
make the making the making the making the making the making the good/ good/ come back
right choice. right right right right right neutral/ neutral/ again?
Feeling

How much choice? choice? choice? choice? choice? bad? bad?

will I spend?
 Some ideas

Gesture Walls and

Virtual Chef

Col. Sanders Ghost on

the table through
Virtual Reality

11/19/2018 5
 Live Events staged on
LIVE EVENT
Bing Pulse
WEBCAST//
Tarun’s birthday Bash
10 AM-2 PM January 29th
2015

11/19/2018 6
Taco already has a mobile App which includes Food Buddy
ordering, payment & gifting

Master Chef Lee Great Party Ideas

How about a Yum App which promotes healthy Meet Col. Sanders’ Ghost at a KFC today

eating across all Yum Brands and other ideas 7

 Virtual Tour of Kitchen

1. KFC offers a
Tour of the
Kitchen
2. You have to ask
the Store
Manager
3. I did
4. Pretty
impressed

11/19/2018 8
 Tablets and Touch Tables

11/19/2018 9
YumHobbits
An immersive community
for the young and
adventurous
10
Collective ideas thus far (Aniruddha)
Restaurant of the future needs to encompass
1. Smartglasses,
2. Augmented reality,
3. Gesture interfaces,
4. Customer face identification,
5. Avatars,
6. Seamless wireless payments and more…
One can think of food orders and payments using Bluetooth technology. Mobile apps that can br downloaded to interact with a conveyor belt order
projection, Gaming device remotes (XBOX) that can transform normal TVs into interactive ones and Kinect sensor that can upgrade waitresses into Goddesses.
The first level is the use of the Bluetooth augmentation technology that increases the precision of location detection going to the level of the individual table
where the customer is seated. Each table needs to be kitted out with a Bluetooth enabled beacon disguised in Colonel’s face. (KFC Brand).

Bringing the phone close to the beacon should boot up the menu app. From here, the customer should be able to peruse the menu, see what their friends
liked in the past, what they had ordered in the past, and then place the order. The same app should also allow payments as soon as one is done. Payment
options can be KFC Wallet, Cards, Netbank, or redeemable coupons. The idea is just tap the bill and slide to pay.

As ordering is digital, the restaurant can keep running a total of dishes ordered and project this on a nearby wall. A projector screen can keep tabs on what’s
been ordered and whose order is coming next. But there can be a problem: If everyone’s ordering Zinger box meal, how can you tell whose is whose? Well
that’s where the next piece of technology will work to customize your order. Once you have chosen what you like, you add stamps, a signature or a message,
and then flick it off-screen and upto the projector. It then digitally shuffles down, and onto a conveyor belt behind the orders already taken.

In case the customer wants to speak then a click on the chef symbol will patch a call through to a member of the serving staff, who reply not in person, but
through a video call. The serving staff can be in store or in an off-site call center. Routing of calls can be optimized based on customer volume at any time.
This will ensure Zero-wait.
 Collective ideas thus far (Bala)

Check out how Retailer Burberry has incorporated digital in their flagship store.

http://retail-innovation.com/burberry-regent-street/

When it comes to food, the approach could be different.

Some of the ideas which I can think of:

1. How about showcasing the history, cooking process of KFC in digital kiosks or table tops, to engage the audience as they
wait for their food to be ready?
2. These days KFC/McD let out their facility for events/celebrations. How about using Technology for customizing the events
with customer logos, names/pictures, etc
3. Improving productivity is the biggest need, considering the population of India. You walk into any KFC store on a weekend
and you end up waiting for placing your order and getting it served. Can Tech help to improve the service delivery and
experience?
4. The biggest opportunity to would be to innovate the layout of the retail store itself. Can customers walk around and see
the kitchen?. Can they order from table using technology?
5. Can they leave feedback/comment on quality right after the meal digitally?. Can they share/invite their friends/family?

11/19/2018 12
 My research links

1. http://www.engadget.com/2014/03/28/restaurant-of-the-future/

2. http://nrn.com/2020-vision-future-foodservice

3. http://www.triplepundit.com/2014/10/interview-todd-taylor-dardens-restaurants-future/

4. http://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/how-indian-qsr-brands-can-
adopt-best-practises-to-expand-globallycountry-head-subway-india/36439667

5. http://www.businessinsider.in/Global-Local-Fast-Food-Chains-Are-Feeding-On-Indias-Insatiable-
Appetite/articleshow/28733220.cms

6. http://www.pinterest.com/diliopoulos/applebees-consumer-journey-map-assignment/

7. http://www.momentology.com/2565-6-marketing-lessons-from-taco-bell-on-maintaining-perpetual-cool/

8. http://www.mobilepaymentstoday.com/articles/taco-bells-new-mobile-app-includes-ordering-payment-gifting/

11/19/2018 13
 In the heart of it lies…

Improving Retail Performance with Customer Experience Management

11/19/2018 14
Successful customer experience can increase revenue, reduce costs, and
improve overall shareholder value
Impact of customer experience on shareholder value

Positive brand image increases visit

frequency of existing customers and attracts
Revenue growth
new customers which increases revenues
and share of market

Consistent brand image builds brand,

Shareholder reducing advertising expenses, positive
Cost reduction
value experiences reduce customer servicing and
re-acquisition costs

Knowing what the customer is going to like

enables faster movement of inventory,
Asset productivity
therefore increasing productivity and
lowering inventory carrying costs
 Today most firms focus on collecting data and building relationships as they
believe that forging relationships will make them more profitable
But people recognize a company’s true goal: to take their money. To
succeed with Customer Experience efforts, firms must make each
interaction a satisfying experience in its own right.
Focus: What information
should we collect from What information should
customers? we provide to customers?
 Demographics and purchase  Targeted promotions
patterns  Dynamic promotions – in-
store, mobile
 Preferences  Highlight cross-sell, up-sell
 Avenue for customer feedback and complementary products
 Sales/customer support  Content
 New product development  Advice – the Trusted Advisor
 Community
 Purchase intent and unmet needs 16
via customers: Closed Loop Info
 Accessing product information
 Checking inventory Management
 Ordering items not in stock  New product development
11/19/2018  Customized products
 Yet the reality is that customers don’t want relationships!

In theory, CRM tactics mimic the way that interpersonal relationships evolve –
spending more time together, learning about each other, and exchanging something
of value. But similarities are misleading. Unlike person-to-person interactions,
person-to-company interactions will never grow into relationships because
consumers:
Like anonymity and privacy:
People don’t like to tracked on their activities

Pursue their own agenda

People don’t step in for a friendly visit or impromptu chat. Consumers
interact to accomplish specific goals which can vary by time and channel

Remain suspicious 17

Companies’ desire to build long-term relationships with customers falls prey to

other objectives, such as meeting quarterly numbers.
11/19/2018
 Customers emotional perceptions are primary drivers in customer
satisfaction, yet difficult to grasp
In a leading fast food chain, customer’s emotional perceptions were primary drivers in 5
out of 11 of satisfaction measure. The 11 highlighted drivers were found to be the key
predictors of customer visit satisfaction
Friendly Service Easy to Use Food Involvement
1. Employees making you feel 4. The experience being easy and hassle free 7. Receiving food that looked
like a valued customer appetizing
5. Fast, efficient service at the drive-thru
2. Employees being friendly and 8. Receiving food that tasted good
6. Fast, efficient service at the front counter
courteous
 Receiving food that was fresh
 Conveniently located
 Employees making eye contact
 Receiving food that was hot
with you  Employees speaking in a manner that was easy
 Teamwork of store employees
to understand Value Pricing
 The cleanliness of the restaurant/drive-thru area 9. The value you received
 Looks like a good place to work
 Enough drive-thru windows and registers open to for the money you spent
 Employees being clean and
serve you quickly  Low prices
well-groomed
 The ease of placing your order Enjoyment/
 Having your food presented by
the employee with a smile  The ease of paying for your order Entertainment
18
10. Being an enjoyable
Order Accuracy  Receiving your food promptly after ordering
place for adults
3. Getting your order right  The length of time you waited to place your order
was reasonable 11. Being an enjoyable
place for kids
Legend

 Key Predictor
11/19/2018
 Emotional Driver
A total customer experience involves measuring both the rational and
emotional customer needs relevant to the person, time, event and location
“Left Brain” “Right Brain Key challenges
Rational Measures Emotional Measures
What traditional and next
• Quality generation metrics should be
• Service • Trust captured and utilized?
• Cleanliness • Personalization
• Value • Perception Which “rational” and
“emotional” factors are the most
predictive drivers for customer
Characteristics Characteristics loyalty?
• Fact-based • Based on feelings
• Quantitative • Qualitative
• Metric-oriented • Index-oriented How should these findings and
• Primary measurements • Derived measurements insights be integrated into the
• Uses cortex part of the • Uses limbic part of the
brain to make decisions
future restaurant experience
brain to make decisions
design
Customer experience maps customers’ profitability and revenue determines
the appropriate high-level strategy for each customer

High

Increase customer share, Retain, increase loyalty,

Cross-sell grow selectively
Profitability

Reduce cost-to-serve, Reduce cost-to-serve,

modify product mix, modify product mix
selectively exit

Low
Low High
Revenue
To maximize customer experience and profitability, strategies need to be
tailored to each segment within their respective quadrants

High
Cross-sell Retain
Typical solutions can include Typical solutions can include
• Extranets • Private exchange networks
• Collaborative R&D • Extranets
• Product mix shift • Personalization
• Collaborative R&D
Profitability

• Other retention programs

Selectively exit Reduce cost-to-serve

Typical solutions can include Typical solutions can include
• Self-service portals • Self-service portals
• Product mix shift • Product mix shift
• Lower service & delivery • Lower service & delivery
levels levels
• Redesign and automate
Low customer facing processes
Low High
Revenue
Three key elements are important for bringing a customer-centric, consistent
POV to all aspects of the restaurant experience
What do the customers What services do How do customers
order? customers expect? order?
Based on differing needs Services must facilitate Based on a mixture of
throughout the day and dining and make customers ordering habits and external
occasion of visit feel special stimulation
• Customers can order at
• Morning breakfast • Personal advice from the kiosk, counter, mobile
• Afternoon meal educated staff or even smartglass
• Evening snacks / dinners • Customized offerings • In store simulation can
• Parties such as extra crispy, extra modify these habits and
cheese encourage customers to
“Origins divides its ranges “Taste bud of every try new menu items
by need-based themes that customer differs, so keeping “Modify customer touch
a wide range of audience the menu framework points and couple them
segments can identify constant, food can be with virtual cooking
with” offered to suit the palate” experience with the chef”
Customer segments can be used for optimizing cost to serve, customer satisfaction,
and profitability, using different set of strategies: location based assortments,
messaging and events

Customer Store concept 1

segmentation Store location
Store concept 2
• Demographic
• Small urban
• Psychographic Store concept 3
• Large flagship
• Behavioral (right
• Large highway etc.
v/s left brain) Store concept 4
• Other
Store concept 5
Only when a restaurant’s back-of-the-house operations are positively engaged via the
customer’s experience does a restaurateur realize brand and customer loyalty benefits
Impact of a positive multi-channel customer experience…
Positive brand image
Channel attracts new diners
through all channels
experience
Back-of-the Brand image
house operations
+ +
Customer Customer loyalty
experience

It is critical to understand Positive channel

how your target experience results in
customer base tends to repeat visits to boost
form an impression sales and market share
‘If you can't measure it, you can't manage it!' Real, responsive management
needs reliable and truthful figures on which decisions can be based
The 5 sections on which the performance needs to be monitored are…

Management & financial

dashboards
Kitchen management

Sales and marketing

Front of house and

plus functions
management

management
employment

restaurant
Staff and

IT infrastructure and support

 KFC
Restaurant of the future
Benjamin Thomas
Overview
 Current Scenario
 KFC plans to expand to 1000 stores in 2015. Currently seeing a dip in sales owing to heavy
competition and insufficient customer engagement. KFC’s target segment is young, urban, tech
savvy, brand conscious individuals who will need to be wowed in order to capture mindshare. Hence
KFC is planning “future stores” that can attract the youth.
 Stakeholders
 The customer, the kitchen, the order taker, the serving staff, KFC marketing team
 Unmet needs
 Customer’s need to have a seamless, quick, fun and satisfying dining experience
 Customer’s need to receive personalized service
 Customer’s need to associate with the KFC brand
 KFC’s need to become a relevant and preferred brand for target customers
 KFC’s need to increase LTV of the customer by increasing engagement
 Solution
 Flagship KFC “future stores” which will adopt technology that can help achieve the above unmet
needs.
Who is the target customer?
 KFC feels that in order grow, it needs to become relevant to the Millenials or Gen Y cohort
 Demographic
 Age: 16 to 25 (M and F)
 Occupation: Students/Newly employed
 Above average income levels

 Psychographic
 Highly active on social media – Instagram, SnapChat, Twitter
 Heavy users of smartphones and smartphone photography
 Care about social image and brand associations
 Tech savvy and impressed by technology
 Spoilt for choice when it comes to QSR/Eating out options
 Dining out is a social activity
What can KFC do to attract this
customer?
 There are at least 4 areas where KFC can use cutting edge technology to
achieve its goals
 Customer Engagement
 Customer Experience
 Operational/Transactional efficiency
 Brand building
Customer Engagement
 Currently KFC tracks only home delivery customers. Dine-out customers are anonymous since the 1.5 minute
QSR benchmark service time doesn’t allow for collection of information. In order to increase the life-time-value
(LTV) of customers, KFC will have to engage interactively with dine-out customers as well. Technology can play
a big role here. Some ideas to drive engagement:
 Smartphone App
 Location aware - Allows in-app ordering (works only in store vicinity) and payment (also include payment wallet)
 Allows pushing personalized offers and marketing messages
 Integrated with loyalty program (in-app ordering will generate redeemable loyalty points)
 Should be able to store and redeem e-coupons – earned over social media/whatsapp/website etc.
 Store locator function – Real-time information on nearby stores, offers, current wait-time for service at store
 Social media integration – Share offers, product info to social media. Receive social media updates on app.
 App install should be incentivized through discounts/offers and enabled at the restaurant through QR code etc.
 Social Media engagement
 KFC should be able to have 2 way communication with customers through facebook, Instagram, Twitter – This will
help in brand recall and gain valuable customer feedback.
 Set up WhatsApp, Viber hotlines and allow for ordering/marketing messaging/customer feedback/conversations
 Plan a group meal with friends by simply creating a whatsapp group and booking a table/ordering
Customer engagement contd…
 Customer identification
 Once KFC can personally identify a customer, the system can learn food preferences,
frequency and timing of visits, average spend per visit, personal info such as birthday,
change in trend of visits etc. and tailor specific real-time marketing tactics targeted towards
individual customers. Some options to quickly enroll customers to the system:
 Voice recognition based identification – Customer speaks her firstname into the kiosk to sign up and
sign-in on subsequent visits. (Other biometrics like fingerprinting might be considered too intrusive)
 NFC based identification – Customer signs up by tapping NFC smartphone to kiosk and typing in first-
name and number (required to push content). Simply tap once to sign in on subsequent visits.
 KFC Smart Card – Customer is given a credit card sized KFC card which is NFC enabled. As she awaits
her order, she taps her phone on the card which opens up a web form for name and number. On
completion, she is registered on the system and can sign in on future visits by tapping her NFC phone
on the ordering kiosk. The card also has a QR code which can enable KFC app download.
 Old school phone keypad – There is a keypad facing the customer, where she enters her name &
number to enroll. On future visits she punches in her number to sign in.
 Face recognition – The camera at the ordering kiosk is able to identify a new customer.
 Customers can be incentivized to sign-in on each visit by offering loyalty points/offers
 Customer Experience
 This refers to the in-store dining experience. Right from deciding to eat at KFC, to finishing
and leaving the restaurant needs to be made unique, novel, fun, convenient, seamless and
quick. This can be visualized as a customer’s journey map and at each stage we can have
multiple ways to enhance the experience.
1. Choosing KFC to eat –
 Real-time Marketing messages can be pushed to customer’s KFC app/WhatsApp based on prior knowledge of
their behavior. Ex. “Order fiery grilled chicken to get a 15% discount before 3 pm today” for a customer who
has never tried the Fiery grilled chicken but visits the store around 3 pm mostly.
 The store will have a Beacon (click here) and will detect customers passing by the store and push notifications
to the customer’s KFC smartphone app. This will be limited to peak meal times to control intrusiveness.

2. Ordering and seating –

 The customer is able to order food through the app. The app will allow ordering only if the customer’s location
is in close proximity to the store. But for take-away or scheduled order, the app will allow. Ex. In case of the
previous example, the customer sees the offer and has an option to place the order through the app scheduled
at 3pm.
 All tables in the restaurant have a tablet/device for ordering. Customers can directly take a vacant table, sign-
in on the tablet, place the order and pay for it (Ezetap, payment gateway). Food is delivered to the table within
the speculated waiting time shown on the device. Customer’s can also select a cash option wherein a staff
member would come to the table to collect cash and authorize the order on the tablet using a security card
swipe.
Customer Experience contd…
3. Waiting time and food delivery
 Food preparation can be tracked on the tablet on the table (think Domino’s online order tracking)
 While waiting customers can be engaged by providing on-demand content on the tablet such as videos
(KFC history, YouTube videos), live video stream from inside the kitchen, games, social media access etc.
This content will be available for only a limited period of time after placing order (to avoid camping).
Content will resume on next customer visit.
 Food is delivered to the table by a staff member who greets and addresses the customer by name and
makes a comment based on customer knowledge. Ex. Hi Mr. Vineet. Looks like you’re trying something
new today? Enjoy!”

4. Exit
 After a few minutes, the tablet opens up a short click based feedback form on the meal.
 It will also provide a report on loyalty points collected so far and how they can be redeemed.
Operational/Transactional efficiency
 Typically store operations involves the kitchen receiving a stream of orders from the cashier or home
delivery customers. Food is prepared in batches and some items assembled on order. Sometimes due to
lack of predictability, food is prepared too much in advance leading to diminished quality or in a
laggard manner leading to increased wait time. Food wastage at the end of the day is also not
improbable. To improve predictability and hence quality and efficiency, a few things:
 Demand forecasting – Real-time orders as well as historical order data needs to be analyzed in order
to come up with a more predictable food production motion. This data is available to the chefs in
the kitchen on screens. Ex: At 2 pm, the screen says – ‘prepare 40 extra pieces of chicken wings’
after predicting a surge in demand.
 Cash transactions: are time consuming. Prepaid KFC VISA gift cards can be sold which enables
quicker transactions.
 Payment systems - Integrate with mobile payment systems and wallets such as airtel money, PayTm,
PayU etc.
 Tech integration: Kitchen backend system needs to be ready to accept orders from multiple sources
such as smartphone app, in-store tablet, ordering kiosk etc.
The Future Store
 The store-front of the future store needs to be aesthetically designed, maintaining the
color themes of the brand while completely changing the store layout. Here’s the store
in my imagination:
 Outside –
 Dynamic display panels which can display custom messages to a customer by detecting
proximity (using beacons) – Ex. “Hey Tom, come on in”
 Digital representation of the restaurant layout with information on vacant tables and their
location. Facility to book a table from outside
 Live menu feed and enticing food videos
 3D holographic KFC logo (think NaMo’s campaign speeches)
 Inside –
 There will be an Colonel Sanders zone which would house an interactive kiosk for signing up as
a new customer, watch KFC history, Xbox Zone etc.
 There will be no ordering counter, but every table will have an ordering device and large
display.
 There will be a selfie booth with KFC branding
Making the Future Store more valuable
 To create value using digital artifacts in the Future Store, the customer experience needs to be:
 Socialized –
 Make eating at KFC a social activity – Enable creating plans with friends on the KFC app.
 Customers can see who among their friends are near the store and invite them over for a meal
 Gamified
 Games and contests – Whoever can eat 12 pieces of Hot Wings in under 4 minutes gets his/her meal for
free.
 Have a KFC king/queen contest run on social media
 Exact a desired behavior by gamification – Order 15 burgers this month to get a 6 piece bucket e-coupon.
 Temporalized
 Tracking and reporting customer activity – Customer can view consumption patterns
 Spatialized
 Add the dimension of location to the eating experience – Customer can check-in on social media while at
the store via the KFC app.
The Microsoft touch and added excitement
 Some ways to make the Future Store more exciting:
 Kinect based menu browsing and ordering
 User can navigate the menu and drag and drop (via gesture) items to his “tray” to create
the order.
 Cortana
 Cortana based digital assistant who can take voice orders
 Recommendation engine
 Based on customer’s eating patterns and budgetary preferences, the engine can
recommend new dishes or combinations
 Augmented reality
 Weird example: A colonel sanders 3D hologram inside the store can identify and detect a
customer’s close proximity and say “Hello Ben! Hope you’re loving your meal.”
 Many other clever applications can be conceived.
Thank You