Kuafu Zhachuan digitizes everything for business process reengineering
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The emergence of Kuafu Fried Skewers and Fried Chicken Legs is no accident. It is also the epitome of the achievements of Kuafu’s three-year digital transformation.
As early as 2021, Kuafu Fried Skewers started digital transformation, which is not a simple online business in the usual sense. From the perspective of the Internet background, “Tools and systems are just the results, and the core is business process reengineering.”
Catering and e-commerce are both combinations of people and goods stores. There is actually only one difference between the two. E-commerce has unlimited shelves, while catering has limited shelves. The common core is product operations, which is the matching of product pools and traffic pools.
It is reported that the product structure of Kuafu Fried Skewers can be divided into three categories: basic models, structural models and popular models. Among them, the new product principle of popular models is “high-speed innovation and rapid iteration”, such as the previous slap chicken steak and fried sweet potato. Skin and so on. In the past, the long-term new product pool reserve consisted of 30-50 models, and next, they hope to expand this number to 80 models.
Although the speed of new products has been greatly increased, the new product cycle still strictly follows store sales data feedback. At the beginning, they will use relatively small traffic to test new products, and only perform manual intervention when the performance is good, and match corresponding marketing resources. From the store side, new products are also introduced in a gradient manner.
In the catering industry where “site selection determines life and death”, site selection system development is also one of the key points of Kuafu Zhachuan’s digital investment.
It is still true that location determines life and death, but the order source structure of restaurant stores is changing. In the past, location only referred to physical LBS. Nowadays, it is also necessary to consider the popularity of takeaways and new channels such as Douyin. For Kuafu, the ratio of these three traffic sources is about 6:3:1. In the future, this ratio will reach 4:4:2 through the efforts of the marketing side, and the total traffic will be even greater.
In the past, most catering takeout heat assessments were completed manually, but Kuafu location selection can now be automated. Taking a shopping mall store as an example, based on big data analysis, Kuafu Location Selection divides the shopping mall into four levels: S, A, B, and C. Combined with tens of thousands of data tags, the location selection system can be refined into recommended floors and take-out order quantity predictions. Estimates, nearby competing products and complementary products, investment return cycle forecasts, and the operating results of surrounding old stores. It is reported that the current accuracy rate of the aforementioned prediction can reach more than 90%.
One thing that is often criticized about catering is that the industry is relatively backward. The original intention of Kuafu Fried Skewers to invest in digitalization was to use more advanced working methods to transform this relatively backward industry. All this work was completed by a small team of more than 20 people.
Within Kuafu Fried Strings, the R&D team has made it clear that they will “never hold back on big moves.” They will compress each iteration to less than two weeks, and if a feature has a long development cycle, it will be further split into multiple versions. Teams can get feedback at an early stage and adjust iterations quickly.
Digitalization does not necessarily correspond to a high-cost structure. In the past, many companies easily made the mistake of hiring a CTO and making digital planning extremely complicated. On the one hand, the cost was high. The biggest problem was that when the business went online, the business side Great changes have taken place, and many “unfinished projects” are prone to occur. As for Kuafu Fried Skewers, they do not use any system that takes several months to implement, whether it is self-developed or outsourced software.
Business process reengineering is a prerequisite for Kuafu’s digital transformation, that is, starting from first principles, why each process of the chain operation should be done as it is, and whether the efficiency is sufficient. After this, it is for more profound organizational changes.
In January 2023, the “Kuafu Merchant” APP launched a feedback channel for franchisees to directly reach the headquarters. The background for the development of this function at that time was that they found that in the past, many franchisee problems in the industry were passed up through supervision, but the problems might be ignored or even covered up.
After Kuafu’s feedback channel is opened, it will also have a new impact on the business side. For example, some old stores that have been in business for more than three years will have aging equipment. In addition, Kuafu Zhachuan has been iterating equipment over the years, and the after-sales maintenance workflow of the supplier corresponding to the original equipment is not perfect. Especially in cities with dense stores such as Beijing and Shanghai, the repair response time of the supplier’s service team alone is not enough. After realizing the problem, Kuafu Fried Skewers quickly made localized spare parts for its core products, doubling the response time. Similar business changes continue to occur at all levels.
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