Client Overview:
Our client, a prominent player in the Quick Service Restaurant (QSR) industry in the United Kingdom, operates as the master franchisor for a popular food brand known for its high demand during peak hours. Despite the brand's popularity, the client faced significant supply and demand issues, with insufficient staff to handle busy periods. Franchisees were reluctant to increase staffing levels due to budget constraints, resulting in lost revenue opportunities as potential customers walked away during peak times.
The Problem:
The client was struggling to balance demand without overburdening franchisees with additional staffing costs. As a result, they were losing a significant number of potential sales during their busiest periods. To address this, they sought a cost-effective solution that could help them capitalize on peak demand without increasing employee payroll.
The Solution:
The client engaged ConsultMates to develop a strategy that would address their supply and demand challenges. To accurately measure the impact of customer loss during busy periods, we proposed conducting primary research across all stores, as no existing data on customer walkaways was available.
Implementation:
We implemented infrared sensors across the stores, which tracked customer traffic and correlated the data with peak sales times to minimize errors. This research was conducted over a three-month period, followed by a month of data extraction, cleaning, and exploration. The findings were eye-opening: on average, 35% of customers were leaving during busy periods because demand outpaced the available labor, with many opting for other dining options rather than waiting in long lines.
With this data in hand, ConsultMates explored various cost-effective solutions and identified self-serving kiosk terminals as the optimal choice. These kiosks required a one-time capital investment with minimal ongoing maintenance costs, offering a scalable solution to the client's problem.
Results:
The implementation timeline included:
Data Collection: 3 months
Data Analysis: 1 month
Researching Solutions: 2 months
Kiosk Implementation Across All UK Stores: 8 months
The kiosks significantly enhanced operational efficiency, reducing order and wait times from 7 minutes using traditional methods to just 3 minutes with the kiosks. This allowed the QSR brand to serve twice as many customers in the same timeframe, effectively stopping the loss of walkaway customers and boosting revenue for franchisees. Before the kiosk implementation, the average annual sales per site were £1.2 million. After implementation, the average annual sales increased to £2 million per site, with continued year-on-year growth.
Client Feedback and Takeaways:
The client was extremely pleased with the results, as the kiosks not only solved their immediate supply and demand issues but also provided a sustainable and scalable solution that enhanced franchisee profitability without increasing payroll costs. By investing in innovative technology, the client demonstrated their commitment to delivering evolving strategies for their franchisees, ensuring the brand remains competitive in the fast-paced QSR market.
Conclusion:
This case study highlights how ConsultMates' data-driven approach and innovative problem-solving skills helped our client turn a significant operational challenge into a success story. If your business is facing similar challenges or you’re seeking creative ways to enhance performance, contact us at ConsultMates. We're here to help you find the right solutions for your unique needs.
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