final report digital transformation in phở gà lâm

Cash flowwill now gradually shift from spending on direct service staff, offline advertising programs...to expanding the frequency of appearing on online platforms, running online advert

HA NOI NATIONAL UNIVERSITY

FACULTY OF BUSINESS AND MANAGEMENT

FINAL REPORT

DIGITAL TRANSFORMATION

IN PHỞ GÀ LÂM

CLASS : MAS 1

MEMBER: NGUYEN HUY CUONG

DAO DUC MANHNGUYEN DUC PHUONGDINH HOANG DUONGNGUYEN TRONG VINH

I OVERVIEW AND REASONING

1 PRODUCTS AND SERVICES

Phở Gà Lâm is a special and popular chicken noodle soup restaurant in Hanoi It is located

at 16 Nguyễn Quý Đức, Trung Văn, Thanh Xuân, Hanoi With prices ranging from 20,000VND to 160,000 VND, the restaurant offers a variety of delicious chicken noodle soupoptions to cater to customers' preferences.Working in 5.30 am to 22.30 pm

Phở Gà Lâm is well-known for its excellent chicken noodle soup The dish is prepared usingfresh and high-quality ingredients, ensuring both flavor and hygiene The chicken meat istender and flavorful, and the broth is rich and aromatic Customers can choose from varioustypes of chicken noodle soup, such as traditional chicken noodle soup, chopped chickennoodle soup, or mixed chicken noodle soup Additionally, the restaurant provides uniqueblends of fish sauce to complement the flavors of the dish

Phở Gà Lâm offers both dine-in services at its physical location and online ordering throughvarious online platforms This allows customers to easily order and enjoy delicious chickennoodle soup at home or their office

The restaurant provides a spacious and comfortable environment for customers to savor theirmeals The staff is dedicated, friendly, and attentive, ensuring excellent service

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2 CURRENT STATUS OF DIGITAL TRANSFORMATION

According to the "Market Survey on Consumer Demand in the Vietnamese Food andBeverage Industry" conducted by Kantar in 2020, up to 43% of Ho Chi Minh City residents

and 34% of Hanoi residents order food delivery at least once a week Particularly, due toconcerns about the pandemic, people have two options for buying food: take-away and homedelivery However, the proportion of people choosing home delivery is twice as high as thoseopting for take-away.

In 2019, GrabFood, Airpay, and Now made significant investments in the online fooddelivery market through promotional campaigns to change user behavior The frequency ofonline food ordering gradually increased, with users going from ordering once or twice amonth to once or twice a week, and this trend is expected to continue

Although the food delivery market currently accounts for only about 30% of the total F&Bmarket share in Vietnam, its growth rate is remarkably high and shows no signs of slowingdown

2.1 REASONS WHY FOOD DELIVERY SERVICES ARE DEVELOPING STRONGLY

 PANDEMIC OUTBREAK AND GOVERNMENT PREVENTION POLICY:

In 2020, when the pandemic surged, the government called on the population to remainvigilant As a result, people have prioritized limiting visits to crowded places The preferredalternative for dining has been ordering food for delivery, which helps minimize unnecessaryoutings and reduces the risk of spreading the virus

While the pandemic is not the sole reason for the emergence of this new consumer behavior,

it has accelerated the growth of the online food delivery industry by 3 to 5 years ahead ofprojections

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 MODERN LIFESTYLE OF YOUTH:

The modern lifestyle of young people is characterized by busyness and a greater reliance onsocial media, leading them to seek convenience and be willing to pay extra for ordering foodonline Busy office workers are also willing to pay for food delivery instead of carrying meals

or dining out This trend is most apparent in large and modern cities such as Hanoi, Ho ChiMinh City, and Da Nang, where there is a concentration of online service and high-techcompanies

Furthermore, there is an increasing demand for a diverse range of dining options According

to statistics, GrabFood alone had over 100,000 restaurant partners offering more than 800,000food choices as of mid-2020 With just one order, customers can access a wide variety offood options This is a significant advantage that traditional restaurants cannot provide

 CONVENIENT PAYMENT METHODS:

Smartphones are becoming increasingly popular, and online payment methods have alsobecome more convenient Both young people and office workers tend to prefer using e-wallets for payment, as this method offers greater convenience for both the buyer and theseller Currently, the Vietnamese market offers a variety of e-wallet platforms such asViettelpay, Momo, Zalopay, Airpay, Moca, and VNpay These payment gateways areapplying numerous promotional programs to attract customers, directly influencing consumerbehavior

2.2 WHAT SHOULD RESTAURANTS DO TO ADAPT AND DEVELOP?

 FOR NEW INVESTORS PARTICIPATING IN THE F&B SECTOR

Looking at the positive side, this time is an opportunity for restaurant owners to invest inbusiness Many large and small restaurants and restaurant chains that have not been able toadapt have had to downsize or stop doing business The market share of the pie thereforeleaves a lot of empty space for new investors to jump in Even housewives and individualswho are passionate about the food business in the past could not realize their dreams because

the investment in premises, equipment, and marketing was too large, but now they just need

to create their own With an online store, you can sit at home and cook and serve

 FOR LARGE RESTAURANT AND RESTAURANT CHAIN OWNERS:

The first thing to do with big brands is restructuring During this difficult period, scatteredinvestments and cumbersome and slow business models will be difficult to survive In fact,many restaurant chains are willing to close ineffective branches to save money to invest inbranches with good sales

Changing investment items is also a way to help restaurants maintain operations Cash flowwill now gradually shift from spending on direct service staff, offline advertising programs

to expanding the frequency of appearing on online platforms, running online advertising andpromotion programs

Investing more in the food menu and industrial kitchen is a way to create sustainable revenuefor the restaurant This is required when customer behavior has changed

 FOR SMALL AND MEDIUM RESTAURANTS:

Small and medium-sized restaurants will be more mobile, easier to change and adapt.Sometimes there are really bold changes like completely converting the restaurant into aCloud Kitchen The restaurant will no longer sell directly but will move the kitchen to acentralized location, only accepting online orders

If the restaurant still wants to keep the traditional way of serving, it can increase sales byadding take away services for diners or combining with an ordering application to deliverfood to the door when customers request To perform this service well, the chef will also

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perform pre-processing and pre-cooking at several stages, so that when customers order, theyonly need to reheat it for quick delivery.

Combined with flexible online marketing campaigns, catching trends quickly, and relying ontrends to create interesting programs or dishes will help small restaurants smoothly navigatethe difficult period of the pandemic

II TECHNOLOGY AND BUSINESS REVIEW

1 SWOT MODEL

Strengths:

 Affordable pricing: Offering a range of prices from 20,000 VND to 160,000 VND

makes the phở gà restaurant accessible to a wide range of customers, includingstudents and budget-conscious individuals

 Clean and spacious environment: Having a clean and spacious restaurant creates a

welcoming and comfortable atmosphere for customers to enjoy their meals

 Diverse menu options: The restaurant's extensive menu with a variety of dishes

provides customers with numerous choices and the opportunity to explore differentflavors and options

 Stable and clean food quality: Consistently delivering high-quality and hygienic

food products can help establish a positive reputation and build customer trust

Weaknesses:

 Limited accessibility: The restaurant's location on a small road may pose challenges

for customers who prefer convenient access or those who rely on transportation

 Traditional management approach: Not utilizing a modern point-of-sale (POS)

system and relying on traditional management methods can result in inefficienciesand difficulties in accurately tracking sales and inventory

 Limited advertising: The lack of advertising on social networking platforms such as

Facebook, Instagram, or Zalo can reduce the restaurant's accessibility and awareness

to potential customers

Opportunities:

 Online food delivery platforms: Collaborating with popular online delivery

platforms like ShopeeFood, GrabFood, or FoodPanda can expand the restaurant'scustomer reach beyond its physical location and cater to the growing demand for fooddelivery services

 Digital transformation: Adopting a modern POS system can streamline operations,

improve order accuracy, and enhance customer service by facilitating efficient orderprocessing and payment methods

 Local customer base: Being located in a densely populated area with a busy market

can provide a steady flow of potential customers, particularly during peak hours ormarket days

 Menu expansion and reservation model: Expanding the menu with additional

dishes and adopting a reservation model can attract new customers and improve theexperience of existing customers

Threats:

 Intense competition: The presence of other phở gà restaurants in the vicinity may

create price competition and result in a smaller customer base for each establishment

 Changing customer preferences: Evolving food trends and preferences may lead

customers to explore different cuisines or healthier alternatives, potentially reducingthe demand for traditional phở gà

 Reliance on offline channels: The lack of active engagement on social media and

online advertising platforms may limit the restaurant's ability to attract new customersand compete effectively in the digital landscape

2 FOH AND BOH PROCESS

Back of House (BOH) Process:

1 Food supply management:

 Identify the list of ingredients and chicken pho dishes to be prepared

 Contact food suppliers, mainly from the nearby wholesale market, to place orders

 Check the quality and quantity of goods upon receipt

 Store and preserve food to ensure hygiene and food safety

2 Preparation and cooking:

 Receive and prepare ingredients for cooking chicken pho dishes

 Perform cooking steps such as making broth, cooking chicken, cutting vegetables andspices

 Ensure the quality and taste of the food

 Ensure timely and accurate food preparation and serving

3 Inventory management:

 Monitor the quantity and inventory of prepared ingredients and dishes

 Adjust ordering and supply of ingredients based on demand and consumption trends

 Regularly check inventory to prevent waste and minimize shortages

4 Staff training:

 Provide thorough training to new staff members from the beginning of theiremployment

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 Ensure that staff members understand and adhere to the restaurant's standards.

Front of House (FOH) Process:

1 Welcoming and taking orders:

 Greet customers and guide them to their tables or the ordering counter

 Record orders from customers, ensuring accurate notation of food items and specialrequests

2 Customer service:

 Prepare and serve drinks and food according to customer requests

 Ensure quality and speed of service

 Double-check with customers for any additional requirements and ensure customersatisfaction

 Wifi available

3 Payment:

 Calculate and provide bills to customers

 Collect payment directly, use QR codes for payment and record-keeping

 Ensure accuracy and transparency in the payment process

4 Cleanliness and maintenance:

 Perform daily cleaning and ensure the restaurant's cleanliness

 Inspect and maintain equipment and work areas to ensure smooth operations

5 Delivery and online services:

 Engage with online food delivery platforms such as ShopeeFood to meet customerdemands

 Ensure safe and punctual packaging and transportation of food

The BOH and FOH processes at this casual chicken pho restaurant prioritize hygiene andproduct quality The restaurant does not advertise on social media platforms and mainlyattracts customers through the nearby densely populated market Although they have notimplemented a reservation system, customers can still order directly at the counter and makepayments using QR codes New staff members receive thorough guidance from the owner.Both the staff and owner are friendly and enthusiastic in serving customers

Overall, this casual chicken pho restaurant follows a traditional management model and hasnot implemented a digital point-of-sale (POS) system However, the establishment ensuresproduct quality and cleanliness The menu offers a variety of options for customers

3 CUSTOMER EXPERIENCE AND OWNER'S DESIRE FOR DIGITAL TRANSFORMATION

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In the provided customer feedback survey, customers rated various aspects of the quality of achicken pho restaurant Let's analyze the quality of the restaurant based on this survey data.According to the survey, the majority of customers rated the quality of the food as average tosatisfactory This suggests that the chicken pho restaurant is able to deliver food that meetsnotable quality standards and meets the expectations of customers

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In terms of service speed, customers gave ratings ranging from average to good Thisindicates that the restaurant could make some improvements in terms of service speed tobetter meet the customers' needs.

Concerning the space and environment, customers rated it as average This implies that thechicken pho restaurant could create a more comfortable and cozy atmosphere to enhance theoverall satisfaction of customers

Regarding the attitude of the staff, customers gave an average rating This suggests that therestaurant needs to ensure that the staff members consistently display a friendly andenthusiastic attitude to meet the expectations of customers

In terms of promotions and marketing, customers rated it as average The chicken phorestaurant could consider implementing more attractive promotional offers to attract andretain customers

When it comes to the value for money, customers rated it as average to good This indicatesthat the restaurant is providing food at reasonable prices that align with the quality customersreceive

In terms of convenience in payment, customers rated it as average The restaurant couldconsider offering more convenient payment options such as contactless card payments or e-wallets to provide a more seamless experience for customers

Finally, customers rated the hygiene standards as average This highlights the importance forthe chicken pho restaurant to prioritize and maintain cleanliness and hygiene to ensurecustomer satisfaction and safety

In conclusion, based on the survey data, the chicken pho restaurant demonstrates certainpositive aspects such as food quality, reasonable pricing, and staff attitude However, there isroom for improvement in areas such as service speed, space and environment, promotions,convenient payment options, and hygiene standards to enhance the overall customerexperience

OWNER'S DESIRE FOR DIGITAL TRANSFORMATION

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 Improve customer experience: One of the most important desires of restaurant

owners is to improve the customer experience This can be done through a variety ofdigital initiatives, such as:

o Using technology to improve the ordering and payment process: This can

make it easier and faster for customers to order their food and pay their bill

o Providing digital menus and information: This can help customers learn

about the menu and make informed decisions about what to order

o Creating a more personalized experience: This can be done through

targeted marketing and loyalty programs

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