Thursday, 24 September 2015

Operations plan #1 - Terminologies, Business Model, Restaurant types

Operational plan #1

1) Cluster: A cluster is a group of restaurants within a distance of 1 kilometer, carefully chosen by the expansion team. A user will be able to order from more than one restaurants in one order, but the restaurants will have to lie in the same cluster. This will enable Foodos to serve the users faster while retaining the capability of multiple retaurant delivery.

2) Picking Executive (PE): A PE is an executive who will pick the items from the restaurants involved in an order. His sole purpose is going to pick the items, cross-check the items, put the branding materials and dispatch it to the Delivery Executive (DE) standing at the cluster point. He will have the ability to pick and constitute 2-3 orders at one time, thereby reducing the workforce needed at the peak time. All his activities will be tracked through the PE app and the status will reflect in the "activity dashboard".

3) Delivery Executive (DE): A DE is an executive who will do the last mile delivery. His sole purpose is to receive the order from PE, collect the change if required in the case of a COD order, go deliver it to the customer, come back to the cluster point and submit the cash to the PE. A DE will be able to deliver 2-3 orders in the same round, if there be a need. All his activities will be tracked through the DE app and the status will reflect in the "activity dashboard".

4) Cluster Point (CP): A cluster point is a geographic location conveniently decided to be near the middle of all the restaurants in that specific cluster. The DEs are going to wait around this point when they are not fulfilling any order. The PE will come to this point and assign the the order(s) that he has picked up.

Revenue/Business Model:

FOODOS1: This is the primary revenue model of Foodos. This is a B2C model. In this model, we have a specific kind of tie-ups with the restaurants where we bring them the customers through our mobile and web platforms and provide them with the logistic solution to deliver the following orders. This helps them in two ways:
          1) In this competitive landscape where restaurants come and go really fast, we are providing them a solution to reach more customers and get known. This also helps them retain the existing customers.
          2) The last mile delivery has been a hassle for a majority of restaurants. Except Dominoes, Faasos and a couple of other players, restaurants do not have the capital or resources to infuse in technology to maintain logistics. Hence, their delivery team do not work efficiently and this adds to their cost. Foodos intends to convert their fixed cost into variable cost.

         We charge the restaurants a commission of 15-22% of the bill amount of every order that we relay and deliver. We do not charge customers anything.

FOODOS2: This is the secondary model of Foodos. This is a B2B model where we deliver any order that restaurants get through other relaying channels like FoodPanda, TinyOwl or on call. For a majority of QSRs and fine-dine restaurants, delivering to the customers is more challenging than finding the customers. Hence with this model, they can outsource their deliveries to us.
 
         We charge the restaurants a commission about 1 0-12% of the bill amount of every order that we deliver. We do not charge customers anything.


Restaurant Types:

1) Postpaid:
     these are the restaurants where the PE does not pay for the order while collecting the order. The payment for the week is done at the end of the week, after deducting our commission. In reference to the PE app, these values should be visible to him:
                         Bill Amount : Rs. 100
                         To pay "the restaurant" : 0

2) Prepaid:
     These are the restaurants where the PE pays for the order, whatever is left after deducting our commission. Say, if the commission is 20%, this is what PE sees in the app:
                        Bill Amount: Rs. 100
                       To pay "the restaurant": 80

3) Advance:
      These are the restaurants where the PE pays for the order, the whole bill amount. Then, at the end of the week, we would go to the restaurant and collect our  commission of the week. Say if the commission is 20%, this is what PE sees in the app:
                     Bill Amount: Rs. 100
                     To pay "the restaurant": Rs. 100

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