Case Study - KFC/ Pizza Hut
Making efficiency gains with Zap Business Intelligence
Businesses become more agile, responsive
and performance-focused
With over 120 outlets employing about 5,000 staff in Singapore, KFC and Pizza Hut found its business intelligence (BI) system wasn't coping with its rapid growth. It did not measure up to corporate reporting requirements, benchmarking store performance, and reducing the time and costs spent on day-to-day reporting across multiple business systems.
"We faced daily challenges in producing timely reports and complex analysis across our many restaurants and product lines to make informed decisions," said Mr Tan Teng Sern, System Analyst with KFC/ Pizza Hut in Singapore.
At the restaurants, day-to-day operational reporting is required to calculate the pay to daily-rated workers, like delivery staff. Using the old BI system, it could take restaurant managers hours each day to tally the number of deliveries that each rider had made, resulting in managers working overtime, and riders waiting for payment. The system was difficult to use and rigid in design. A few days each month could also be tied up generating reports to meet corporate requirements. The problem in producing timely reports also hindered KFC/ Pizza Hut's ability to respond quickly to changes in the business. What they needed was a solution that would allow different objectives for different departments, and monitor each department's performance.
Solution
KFC/Pizza Hut sought an affordable, high-performance and easy to maintain business intelligence and data warehousing solution.
These requirements led KFC/Pizza Hut to Zap and its solution, Zap Business Intelligence, a web-based BI solution for the Microsoft SQL Server platform.
"We chose Zap Business Intelligence because it offers powerful functionality and proven scalability, and yet is easy to install, maintain, and use," said Mr Tan.
The deployment aced its test with KFC/Pizza Hut when Zap was rolled out in the production environment. Here, users wanted to incorporate other data sources to complete the corporate data warehouse, including Pointof- Sale, Marketing, HR/Payroll, and Supply Chain Management.
The Zap solution supports close to 400 users, including restaurant managers, operations managers, and back office directors. It brings together key BI capabilities including dashboards, analysis, reporting, KPIs and scorecards, all in a user-friendly web portal.
Benefits
Zap's Business Intelligence has resulted in many significant benefits for KFC/Pizza Hut.
"Improving reporting and analysis across our restaurants and head offices offers considerable gains in efficiency and will enable our businesses to become more agile, responsive and performance-focused," said Mr Tan.
The BI system contributes to greater business agility in several ways:
- Optimizing marketing spend: The system allows KFC/Pizza Hut to immediately adjust marketing campaigns to target them more effectively.
- Enabling strategic restaurant planning: By analyzing sales and demand, KFC/Pizza Hut can conduct more effective strategic planning when opening restaurants.
- Enhancing customer service: The system analyzes delivery punctuality, and correlates it with parameters such as restaurant and rider, allowing management to make decisions to fine-tune operations, and improve customer service.
- Improving sales: The analysis of point-of-sale data enables KFC/Pizza Hut to measure the effectiveness of their package deals in order to improve sales.
Cost Savings
Mr Tan estimated that KFC/Pizza Hut will gain a return on investment from Zap Business Intelligence within 12 months, chiefly in reducing the amount of staff time spent on daily reporting. The Zap solution has resulted in cost savings in several areas, including improving labor efficiency. With Zap, the time taken for restaurant managers to check reports has been reduced from 30 minutes to about five minutes, and while operation managers and administrators used to spend about an hour a day retrieving reports, this can now be done almost instantly. Another cost saver has been reducing the reliance on IT.