2. Market: Singapore at a Glance
Naturally
Healthy
Food Choices
Focus on
Sustainability
Heightened
Regulatory
Compliance
Rising Costs,
Shortage of
Manpower
9.9% CAGR
Nutritional
Information
19.6% willing
to switch
VALUE VOLUME FUTURE
17.62% CAGR,
Food Service
Market
Market Size (2023)
USD 21.13 B
Market Size (2029)
USD 55.93 B
Market Concentration:
Low
Major Players: DFI, Subway,
McDonald’s, Starbucks
Source: Mordor Intelligence
3. GYG CHIPOTLE MCDONALD’S
MARKET CAP / VALUATION $1.4B VALUATION $60.92B $204.94B
OPERATIONS EXCELLENCE
Double linear kitchen
Sticker digital ticketing system
Inventory mgt software
POS - Kitchen Display system
Digital Kitchen Display
Mobile order-ahead
Self-order kiosks
Automated processes
Inventory management system
3 Ds
CUSTOMER EXPERIENCE
Mobile app ordering
Digital loyalty programs and feedback
system
WhatsApp QR codes feedback
Mobile app
Digital menu boards
“Experience the Future” stores
Mobile app
Order ahead
Loyalty programs
Personalized promotions
Metaverse
SERVICE INNOVATION
Self-order kiosks
Online delivery
AI-driven menu
Virtual drive thru
Foodary with Caltex stations
Chipotlanes - Drive thru digital
order and pick up
McDelivery
Dynamic pricing (AI-driven)
EMPLOYEE EXPERIENCE
Digital contracts
Digital training modules
Digital learning platform
Scheduling apps
Digital training
Scheduling
Mobile comms tools
Author summarized from brand websites and articles
Digital Health Check: GYG leverages on tech to get ahead
4. Best Performance
Best practice: New entrant Guzman y Gomez collaborates
with Google to establish an virtual drive-through experience
Highest Food Quality & Safety
Best Guest Experience
Best Workplace
Source: https://qsrmedia.com.au/technology/news/guzman-y-gomez-partners-google-create-hi-tech-drive-through
https://www.news.com.au/finance/business/retail/guzman-y-gomez-plots-hitech-drivethrough-mexican-wave/news-
story/19f753475f98448fd6501aff2e7bf74b
“Eventually we will have
counterless stores.”
Goal: GYG as an Apple Store
Combine “location awareness,
sensor beacons, artificial
intelligence and voice ordering”
“We figured out the speed game,
these [other] guys don’t have
the tech capability.”
Takeaway: Digital transformation is
strategically leveraged as a
competitive advantage by new
entrants, enabling organizations to
scale and accelerate their
operations with greater efficiency
and agility!
5. “The future is digital and self-serve.”
(Markman in Forbes, 2023)
Source:
https://www.forbes.com/sites/jonmark
man/2023/05/08/digital-
transformation-is-on-the-menu-as-
mcdonalds-innovates-to-lead-the-
market/?sh=567b44ea6d49
https://beloved-
brands.com/mcdonalds-case-study/
corporate.mcdonalds.com
https://itenterprise.co.uk/mcdonalds-
infographic/
Best practice: McDonald’s focuses on 3Ds - Digital, Delivery and Drive Thru
EASY EXPERIENCE, FAST ORDERING OF CUSTOMERS
Acquisition of Dynamic Yield in
2019
Tailored offers
New loyalty program
Easy way to order
Omnichannel
MyMcDonald's
Expanding the capability to
order delivery through the
McDonald's app across
additional markets and
enhancing the speed and
accuracy of the ordering
process.
Express Drive Thru
Express Pick Up
On-the-Go
DIGITAL EXPERIENCE DELIVERY DRIVE THRU
9% increase in
revenue and
13% increase in
net icome (2018)
6. Best practice: Luckin Coffee's Strategy for Challenging Starbucks
with a Digital-First Approach
Source: Han, Yuanfang & Liao, Jingyuan & Song, Wuman. (2023). Luckin Coffees Digital Transformation: Case Study on the Impact
of Digitization in the Coffee Industry. Advances in Economics, Management and Political Sciences. 33. 146-152. 10.54254/2754-
1169/33/20231650.
https://www.jessiebi.com/project/04ade395/Luckin-Coffee-Case-Study---Mobile-Redesign
Though Luckin Coffee is not a direct competitor, we can learn alot on its digital-
first strategy. In fact , I have seen this first-hand as a Luckin Coffee outlet
without menus and without cash payments opened in Waterway Point last
month and the Starbucks outlet nearby closed to renovate its space (incumbent
response). I tried ordering via app when they first opened and they delivered
earlier than the expected time.
New retail model driven by new technology
Paperless menus
End-to-end customer service via app
No cash
Digitalized operations platform
Lucky University Software - for training
7. Supply Chain
Customer Discovery
Customer Ordering
and Payments
Kitchen Operations
Delivery and Logistics
Customer Engagement
and Loyalty
External: Digital Trends Transforming Food Service Industry
Platforms
Blockchain
Advanced
Analytics AI AR/VR
Robotics
IoT
Author used BCG framework, summarized trends based on experience
Source: https://www.sedapta.com/articles/the-digital-transformation-in-the-food-beverage-
industry/ Significant Impact Disruptive Impact
8. Digital Business Strategy
Author used BCG framework and Digital Transformation Framework from class
WHY
WHAT
HOW
REPOSITION THE CORE NEW DIGITAL GROWTH
DIGITAL CAPABILITIES
DIGITAL LEADERSHIP
DIGITAL BUSINESS STRATEGY
PEOPLE / ORG ECOSYSTEM
TECH & DATA
Smart Operations: Kitchen automation, smart
inventory and supply management, smart central
kitchen
Digital-first Customer Experience: Self-ordering
kiosks, mobile order ahead, AI-generated customer
responses
Workforce 4.0: Digital training platforms, scheduling
apps, communication in one app
Optimal Assets: Predictive maintenance and energy
management system
INTERNAL DRIVERS
EXTERNAL DRIVERS
AI-driven Hub and Spoke Ghost Kitchens
Virtual Nutritionist as Service
Co-created Menu with Customers
Zero-Contact Dining Experience
Centralized marketing with digital twins and
generative AI (zero local marketers)
Agritech Company?
High Manpower
Costs
Limited Manpower
No Focused Shared
Service Partner
High Rent
Non Established
Brand
Digitally-savvy on-
the-go consumers
New entrants
successfully
leveraging tech vs
incumbents
Consumers vs waste
Fusing Business & IT
Upskilling blueprint
Digital learning program and incentives
Digital talent recruiment in Shared
Services and Operations
Synergized OKRs between teams:
CorOps and ManOps
Fusing Business & IT structure
Partnership with technology companies
like Google and third-party providers before
transition in building core in-house technology
competencies (modular, cloud-based)
Kitchen automatic system integrated with IoT
and sensors
Data Governance
Farm to Table (Supplier to Customers) data
integration
Interoperable system from different
manufacturers of kitchen equipment for data
sharing
Co-creation with customers
Software development kits (inventory
management connecting to kitchen
automation)
We will leverage on technological capabilities towards digital-first operations and
customer experience as an emerging brand competing with big, traditional, asset-heavy
incumbents in the food service industry.
9. Planning
Sourcing
and Inventory
Management
Marketing
Kitchen
Operations
Asset
Optimization
1 2 3 4 5
Core Repositioning: Operational Excellence*
Data-driven
demand forecasting
AI-generated retail planning
and kitchen layout
Kitchen automation
Data-driven labor planning
and production
Digital training platforms
and scheduling
AI-optimized delivery routing
Predictive Maintenance
Energy Management
Systems
IoT inventory tracking
integrated with ERP
Smart Central Kitchen
Blockchain-enabled
supply chain management
Customer analytics
AI-generated marketing
materials and content
Optimized
Labor
28% Lower Rent
as we need less space,
more automation
Less localized functions,
as everything can be under Shared
Service via cloud
Speed
Scalability
Waste
*Significant value driver in F&B industry based on BCG, The $100 Billion Digital Lifeline for Restaurants (2020)
10. Core Repositioning: Digital-First Customer Experience*
MEAL TRACKING
NEXT PURCHASE
E-COUPONS
ONLINE REVIEWS
ONLINE KOLS
ENABLERS
DISCOVER ORDER WAIT CONSUME REWARDED LOYALTY
AI
DATA ANALYTICS
PLATFORMS
AR/VR
SOCIAL MEDIA &
ONLINE GROUPS
MOBILE APP
(PERSONALIZED
RECOMMENDATION)
SELF-ORDER
KIOSK / TABLE QR/
CHATBOT FOR BULK
CASHLESS
PAYMENTS
INTEGRATED POS
-KITHCEN SYSTEM
DIGITAL ORDER
TRACKING
BACK OF HOUSE
AUTOMATION
(PREDICTIVE TIME)
DIGITAL ORDER
TRACKING
DIGITAL CUSTOMER
SERVICE
AI CHAT BOTS
PLATFORMS
DATA ANALYTICS
DELIVERY SERVICE
AI CHAT BOTS
PERSONALIZED
REWARDS AND
TARGETING
ROBOTICS
AUTOMATION
SOFTWARES
AI CHAT BOTS
PLATFORMS Source
https://www.bcg.com/publications/2015/retail-
digital-disruption-consumer-products-dining-and-
dollars-directing-restaurants-digital-investments
30% of individuals who
download a brand's app
results in store visits growth
while 20% sees an increase in
their overall spending on the
brand.
PLATFORMS
*Significant value driver in F&B industry based on BCG, The $100 Billion Digital Lifeline for Restaurants (2020)
11. SCHEDULING
ATTENDANCE
HR ADMINISTRATIVE WORKS
PAYROLL
EMPLOYEE TRAINING
CORPORATE AND MARKETING
COMMUNCATION
in one application
Core Repositioning: Employee Experience
Administrative Hours
by Managers
Less HR costs
Transparency
Agility
Standardization
Scalability
KNOW app
4.0 WORKFORCE
12. New Digital Growth Opportunities
AI-driven Hub and Spoke
Ghost Kitchens
Virtual Nutritionist
as Service
Zero-Contact Dining Experience
Zero Local Marketers
with Digital Twins Capability
Additional revenue serving other
non-competing brands (B2B)
Additional revenue serving
nutritient consumption data
Nutrition Intelligence Co.?
Counterless, no servers, pick-up
only, no cash
Faster market expansion with removal
of local marketers through centralizing
function and scaling via Digital Twins
and AI; Case Study: Coca Cola
Co-created Menu
Democratize product development
through menu co-creation with
customers
In-store Smart Farming
Agritech company?
13. Digital Companies Towards Revenue Growth
Source: https://www.bcg.com/publications/2022/assessing-digital-value-gap
Companies that have successfully undergone digital
transformation consistently outperform their less digitally
advanced counterparts on crucial financial metrics, including
revenue growth and profitability,
and will triple the gap by 2025.
Source: The New Digital Reality of Restaurants, BCG, 2017
Small brands have taken 2 points
of share from large incumbents!
*EMERGING BRANDS CAN COMPETE
THROUGH LEVERAGING TECHNOLOGY!
14. Value Innovation
Ross (2019) MIT CiSR
DIGITAL + TRANSFORMATION = VALUE INNOVATION
Smart Operations
Digital-first Customer Experience
Workforce 4.0
Optimal Assets
AI-driven Ghost Kitchens
Agritech?
Strong foundation, great opportunity, driven by technology
Technology: AI, Chatbots, Robots
People & Org
Data
Ecosystem
Customer-Centricity
Digital Business Model:
New scalable and sustainable revenue
channels
