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DELIVERY OVERVIEW
What You Will Need to operate Delivery
Required |
Highly recommend |
Optional: |
Phone system for access to ordering |
Online & Mobile Ordering |
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Call Centre (direct or online support) |
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Market Mapping |
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Delivery dispatch area in the restaurant |
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Company owned motorcycles |
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Dispatch order racking |
Website |
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LSM marketing plan |
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Delivery vehicles |
Specific packaging |
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Delivery Manager |
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DELIVERY OVERVIEW
Required |
Highly recommend |
Optional: |
Phone system for access to ordering |
Online & Mobile Ordering |
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Driver certification |
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Hot Hold equipment |
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Trade Zone Mapping |
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Linked POS to KDS |
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LSM leaflets and menus |
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Full operational training program |
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Off-premise delivery has the potential to deliver a billion transactions a year across KFC!
DELIVERY OVERVIEW
Introduction
Restaurant food delivery is a huge market and a growing one. Our sister company Pizza Hut has been using this channel for many years and has developed some great expertise. KFC has also offered delivery in many different markets, with some great know-how and expertise; however, this has usually grown in isolation and without a global standardized approach. Having said that, delivery is worth over $1billion per annum to Yum! today and is some countries, represents 50% of all business! It has huge growth potential and is becoming the expected norm for much of the territories we operate in.
This “executive summary” on delivery aims to help the understanding of the fundamentals of setting up and operating a channel that offers our customers the opportunity, via the phone or an on-line ordering platform, the chance to enjoy KFC in their home, place of work or any venue off the premises of our restaurants. After the customer places their order, the food is transported by KFC to their requested venue.. There are different types of “off-premise” channels, this introduction deals with probably the most familiar one. That of frequent, standard transaction orders delivered by bike or car to a customer from a “standard” KFC restaurant. Most of us will be familiar with this set up from our experiences of ordering Pizza Hut delivery. There is a separate supporting guide for off-premise catering.
For KFC, our mission is to develop a dominant brand that stands for one global identity. In other words, the winning formula is one global brand, competing locally. The know-how in this and the associated documents, aims to support that goal of codifying key elements around KFC delivery with the flexibility of local markets to determine the best strategic application of the channel.
All the detail regarding the implementation of this channel is contained with this website—www.KFCDAC.com
DELIVERY OVERVIEW
In this overview we will introduce some key areas and give an overview of the delivery channel:
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why delivery? |
How do I get profits? |
How do I get the store ready? |
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How will I take the order? |
Where will I deliver? |
What will I deliver? |
Who will deliver? |
How do I deliver? |
How do I drive performance? |
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How do I build delivery sales? |
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DELIVERY OVERVIEW
Why delivery? - The customer is always Why!
Understanding your markets needs and therefore your customers needs is where it all starts.
Developing a consumer proposition that works for your customers is key.
The tenets of ensuring competitive value, high quality, modernity and relevance will always be there.
DELIVERY OVERVIEW
The stronger the insights and locally relevant proposition, the higher the return.
- The global QSR delivery market is huge at well in excess of $10 billion.
- Where KFC offers a relevant consumer proposition to the consumer and delivers against its promise, it can be a significant sales and profit generator
- Delivery customers can be the most frequent and the most loyal of all our customers, giving us hug brand sponsorship when we get it right
- Delivery can ensure maximum return in underperforming assets.
And the customers loves KFC Delivery!
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Delivery customers tend to order more frequently than dine-in customers and spend more (MenaPak data 2013)
- Average delivery transaction = $12 vs Average dine in transaction at $5
- Delivery represents 50% of trade in some markets
- Frequency of delivery pushes up average frequency -4 of top 10 frequency countries are in Mena with market mix of 35% delivery and 3-4% catering mix
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Gobal spend on QSR delivery tops $10 billion
- At 3% of mix delivery and catering could equate to +$1000 wpsa or +$50k per annum X 2000 KFCs = $ 1 Billion
- Unlocking potential….delivery and catering go where restaurants can’t
- Catering customer is valuable customer (US data 2013)
DELIVERY OVERVIEW
| Current KFC Customer | KFC Catering customer |
| Orders 6 times per year, buys a 2 pc box meal | Orders 3 times per year buys a meal for 15 people |
| $6 per order X 6 orders per year | $80 per order X 3 orders per year |
| $36 annual spend | $240 annual spend |
Market Mapping
The ideal starting place for opening up a home delivery business is to understand the end goal of what will penetration look like and what is your plan to get there. Through various methods of market mapping including Yums! global relationship with GeoMap, markets are now able to fully understand the level of restaurants they can get to and through that what is the short, medium and long-term plan for delivery stores. Regardless of how sophisticated your market mapping is, the temptation to have huge delivery areas until you open more stores is always there. Regardless of the number of restaurants, you should stick to the guidelines of trade zoning and the delivery standards to ensure that its right for the customer and the brand. Within the detail of the know-how portal, you are able to see the ideal number of household, demo-graphic advice and so-on, but 1 restaurant should not try and deliver to a whole city!! This exercise should be led at a senior and central level as it will determine not only delivery expansion, but also all non-delivery opportunities
Mapping, zoning and podding
- Market Mapping should be centrally led
- Trade zones and podding should be led by operations
DELIVERY OVERVIEW
