Source: Wagamama on Behance.net
Whether we are ready or not, digital transformation is reinventing business. Every enterprise, including Peng Chinese takeaway, now faces a choice between innovation or extinction; Digital transformation is not specifically about IT or technology.
Instead, it is about redefining the entire business strategy, perhaps even changing the Peng takeaways working culture. Peng restaurant should not consider technology as a support function but as the utility to step into the digital world. Digital transformation is not just about applying the latest technology to the business. It is about creating an entirely new business model on the backbone of technology.
With that in mind, let us assess the establishment using the SWOT analysis, which will give us an overview of the Strengths, Weaknesses, Opportunities, and Threats.
Peng’s takeaways have been in the market for a decade, translating into a good reputation and satisfactory customer experience.
With seven branches spread along England, Northumberland, Devon and Durham highlight a remarkable and noticeable brand footprint in the mentioned locations.
Flexible ordering modalities
Over the phone
To order in advance
To ask for it to be delivered
Using third-party platforms (Just-Eat, Deliveroo and UberEats).
Flexible order fulfilment
Over the counter
In-person order handover
Over the phone in advance orders, so to pick up therefore minimizing waiting time in the shop which results in not having shop crowded.
In-house conditional delivery
Order address to be within 2 miles
The order is more than £12.00.
They use third-party platforms (Just-Eat, Deliveroo and UberEats) to deliver orders beyond their delivery service area.
Acceptance and belief that digital transformation is the way forward.
Expanding the business is always a good thing, but business expansion without evolving management style and technics can lead to a negative impact. Therefore, the decision to grow and expand is excellent, but an ad-hoc decision was not. No assessment or gap analysis was done in preparation for the explanation.
Things to be considered in the house
Preventing a supply chain breakdown for items needed to be in the main branch, including the seven branches.
High supplier cost, he cannot ask for discounted prices as his purchases are not of high value to them.
Limited stocks in the local market lead to a longer waiting time
Storages space (can be multiple)
Things to be considered from a customer view
Poor online presence
No online marketing team or campaign
Limited menu items or focused on a specific cuisine
Existing competitors are offering promotions he is not giving
No brand awareness for new customers
Food delivery grew by £3.7bn in 2020 to reach £11.4bn - double its 2015 market value - as it benefited from being one of the few routes to market during the pandemic, Lumina Intelligence reports.
This number is expected to increase as per the below survey for the market to reach £14.6bn by 2025 as consumers find it convenient simply to order food online.
So how can Peng takeaways benefit from this opportunity
Creating or enhancing the online presence
Social media campaigns
Using their client base as a start to give the restaurant a review which will increase reviews
Reach a broader audience to explore more menu items of interest
Increase customer experience by paying attention to the small details
Introduce new menus to address different types of cuisine
Run special online offers
Post covid situation: Most of the people are either unemployed or still recovering from 2020
Competitors have already transformed their business into digital
Competitors offering better online deals and promotions
A bad review on the social media platforms
This analysis can help better understand where to excel and which areas need attention. In addition, it may lead to a previously untapped market or help identify roadblocks that could hinder productivity.
Current Business Process Model
www.bighospitality.co.uk. 2021. Food delivery market reaches £11.4bn as a result of the pandemic. [online] Available at: <https://www.bighospitality.co.uk/Article/2021/04/22/Food-delivery-market-reaches-11.4bn-as-a-result-of-the-pandemic?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright> [Accessed 3 August 2022].
www.statista.com. 2022. UK takeaway delivery market value 2025 | Statista. [online] Available at: <https://www.statista.com/statistics/1110682/uk-takeaway-delivery-market-value/> [Accessed 3 August 2022].