Inamo Vs Wagamama
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Transcript of Inamo Vs Wagamama
Tudor Team 6
Anurag JatiaBalbinder BhatiaDouman Namin
Matthew GinsbergNuria GarciaRumiko Oe
Agenda
• Inamo– Company overview– Use of IT – ROI– Pros and Cons
• Wagamama– Company overview– Use of IT – ROI– Pros and Cons
• Comparison• Learning and conclusion
Welcome to
http://crave.cnet.co.uk/gadgets/video-inamo-restaurant-is-the-future-of-eating-out-49301452/
Inamo: Company overview
Compurants Ltd.
Owners:Entrepreneurs Danny Porter and Noel Hunwick
Founded in UK in 2005
Compurants Ltd. Business (2005)
E-TableTM InamoTM
• Patent of E-Table: Interactive ordering system
• They continue doing R&D to improve the technology
• 4 Products: E-table Full; E-table portable; E-table mini projection; e-table touch-E
• Target clients: Restaurants and hotelsSo far only 1 client has already installed the E-table (Izkaya in the Netherlands) and their own restaurants
• Current restaurants (London):
• Soho: Sep 2008• St. James: Dec 2010
• Main characteristics:
• High-end (avg. £ 40)• Pan-Asian food• Well located• AWARDS: Design &
Technical Innovation' award at this year's Madrid Fusion.
• E-table :- Interactive ordering - Paying Bill, Asking for taxi, Choosing ambient, playing
games, checking kitchen camera
• Online booking
Software:- Orders directly send to kitchen screen - Bespoke Software- Content Management System (CMS): All E-Tables tools are connected to the central management system.- Special Apps- Point-of-Sale
IT at Inamo
1- Customer Interactive Screen
2- Order Processing Server
3- Content Management System
4- Point of Sale Integration
5- Projector
How system works?
Sales increase by 14% = £ 369 k - Cover per seat: increase by 10% - Avg. expending: increase by 5% - Other revenues (advert): increase by 1%
Staff costs: reduction by 30%= £ 230k
Total return in 1 year: £ 565 k
“A restaurant with a minimum of 70 seats or more and an average bill of $35 or more could achieve a return on investment within 12 months subject to their business model”Mark Boyle, sales director for E-Table
E-Table return on investment
PROS• WOW Factor• No more waiting to catch waiters
eye• Faster Service • Another order is just a click away
so costumers order more• You can see the food’s pictures• Faster turning table, more orders,
less generate more profit• Costumers order more from first 5-
10 items so they can put the items with higher margin and high value
CONS (Based on what the manager told us)
• It is not that much interesting since the touch screens became popular (i-pads, i-pods..)
• Kids => Education/ mistakes• Wrong orders => Time consumption
and customer dissatisfaction• Low coordination in the order and
delivery can negatively influence the experience
• Difficult to customize orders• Limitations to show all the menu• No Wi-Fi / Possible faulty and
interruptible connection
Welcome to
http://www.rsd.geac.com/object/microsoft_CASE.html
1992 First Wagamama in Bloomsbury (London). Founded by Alan Yau
1998 Sold to venture capital co. Graphite Capital Management (64%) & Virgin’s McCarthy Corporation (30%). Management holds 6%
2005 Private equity firm Lion Capital buys 88% stake (£ 102M). Management holds 12%
2010 Lion Capital appointed advisers to put the chain up for sale for £ 250M
Concept and strategy
Expansion strategy: Owned restaurants: 70 in UK and 3 in US Franchises 33 restaurants in 16 countries (outside UK or US) Total = 106 restaurants worldwide
Concept: Pan-Asian food Good service: helpful, friendly and fast Value for money (average spend per head £11.25) Space optimizations: “communal tables” Fast service
Wagamama: Company overview
Speeding up service with a sophisticated POS at Wagamama
"At Kingston we got a return on our investment in between three and six months. If we went back to pen and paper now, the business would run at 50% of its current efficiency.”
Jerry Marks Wagamama operations manager April 2005
Main benefits areas:- Wait staff productivity- Reduction of lost profit from errors- Reduction in maintenance for old devices- Improved customer experience
Compaq handhelds ROI
PROS• Operations efficiency• Easy to customize orders• Fast service => Quick
customer turnaround• Online ordering: pick-up in
15 min (online or phone app)
CONS• Manage/control demand• Obsolescence & upgrade• Huge dependency on the
system
Vs.
CorporateLevel:
Strategy
IT level
• Pan-Asian style UK based• Location: city center• Strong advertising • Brand equity• Differentiation• Innovative business
Similarities Differences
• Ownership: Private Equity vs. Entrepreneurs
• Volume (Wagamama) vs. margin• Core business: restaurants chain
vs. IT innovation • Cheap vs. high-end
• Booking online• Transfer or orders
directly to the kitchen from the table
• Role of IT: Operations (Wagamama) vs. Core Business (Inamo)
• Risk associated: High in Inamo; low in Wagamama
• IT in taking orders: e-table (Inamo) vs. i-pack (Wagamama)
• Customer interaction/education: high in Inamo, low Wagamama
Vs.
Take-aways
Learning 1IT Success:Aligned to company’s strategy Proper implementation = Good ROI
- IT as differentiating factor- Customer experience- Marketing focused on E-table- Target public: Adult public,
dinners, high-end - Size of the restaurant c.100
seats
- IT improving operations efficiency
- Value for money- Target public: Everyone at any
time (cheap; fast and relatively good quality)
- Size of the restaurant c. 160 seats
Learning 2There are also risks and challenges
- Obsolescence- Teaching to the user
(wrong orders)
- Wireless interferences in the late 90s => investment requirements
Learning 3IT as a source of opportunities
- E-Table as a new business itself (e.g. the smaller devices)
- Use of mobile phone apps to place take away orders
Take-aways
Thank you!
Question?