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Below are Views On Geared for opportunities once COVID-19 ends By Mr. Pratik Pota, CEO, Jubilant FoodWorks - Motilal oswal Financial Services Ltd.

Strong focus on technology to continue

JUBI will focus on three technology areas: a) improved customer experience, b) improved employee experience, and c) the drive to improve efficiency. With technology touching all parts of the business, it will increasingly be a source of competitive advantage. The management aims to offer its app in other languages to reduce friction and improve the overall experience for customers from different regions as well as to acquire new clients. QSRs and the Food Service business will have to measure up to the best of tech and e-commerce players across categories and not just within the Food space.

Analytics division helps synthesize a large amount of available data to provide tangible business insights

The new analytics vertical has two key parts: a) the analytics team works closely with the business team to answer questions on what has already occurred. This is more retrospective in nature to allow teams to enhance their learning. b) The other scope of the vertical is to look at data points and predict customer behavior with the help of machine learning algorithms. This helps JUBI to manage inventory and availability. The AI looks at the available set of data for different customers and recommends the best user interface, promotions, and discounts for each individual customer.

Value proposition will be at the core of JUBI’s business strategy

Over the last few years, there has been a shift to organized from unorganized players because of health and safety concerns and as 30-35% of restaurants have closed down. The largest source of growth for QSRs is finding new customers. With this in mind, JUBI has taken limited price increases for a few years now, with cost savings being the first focus to combat higher RM and employee costs. The management has also focused on innovation to provide a strong value proposition in the last few years. ‘Everyday value’ has also been an important pillar of growth.

Takeaway channel to gain higher salience going forward

The use case for takeaway was small and non-existent up until recently as it proved to be an inconvenient proposition for a consumer who was used to getting free delivery. However, takeaways became relevant after the introduction of delivery charges. This trend was further accelerated by COVID-19 and the need for people to step out. Convenient services like drive-through and curb side delivery also helped the takeaway channel. There should be a sustained increase in the off-premise channels as brands provide a superior experience. As an added incentive, JUBI offers special coupons with takeaways to create a behavioral change in the consumer. In the case of dine-in, the current challenge is on the supply-side rather than the demand-side. As restrictions are eased, dining will come back strongly. While some restaurants will reopen, there will still be a shortage in the overall supply. In the last few years before the COVID-19 outbreak, consumers had started turning to bigger brands. As discounts begin to reduce, there will be a lesser quantity, but a better quality of supply.

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