David Ian:" At the moment crisis benefit those companies that are able to more effectively manage their business. "
Interview with cofounder of iiko (read "Aiko"), developer of the eponymous restaurant business management system.
- Today, amid the global economic crisis, many companies are experiencing financial difficulties. How will this affect restaurant business?
- In the restaurant business is a bidirectional process. Eating premium actually experience some decline in sales worldwide. In particular in France as early as October decline was 20%, 25% in November. And democratic vice versa restaurants are lifting. History has proven that people used to eat out at home, even the crisis has not forced cook. They just have to go to a more democratic place. For example, McDonald's in November recorded a historical high sales for the company's history.
As scope IT , in Russia the more expensive restaurants began asking for fewer services, have delayed the modernization and took the expectant position. Institution with a more democratic level of prices today, we can say, rush into battle. We know no one project that is currently under expansion - Discover new places, implemented network projects. In particular "constellation of entertainment" - a brand that includes playgrounds, quick-service restaurants and cafes - within 3 months of opening retail outlets in several cities simultaneously. There are projects that continue develop dynamically, such as network QSR « PraymStar » . actively open corporate dining - Again, because people have less to go to more expensive establishments - and to eat. So that the process of bi-directional.
Nevertheless, the fact There is some tension among the companies involved in automation equipment and restaurants. There is information that the projects that were deep in the implementation stage, some companies put on « hold » - have been frozen. Our company has no such projects. Projects that were in deep stage of implementation continue to be implemented - including projects Sbarro "and" Coffee House "- which continue to actively move forward. In fact, there is the circle of our customers with the institutions of the middle class, which was an early stage of negotiations, and in October scheduled opening points, and that really now decided to wait and see what happens. This is what we know about the market today.
As general philosophical context, it is obvious that in a moment of crisis benefit those companies that are able to more effectively manage their business. Those companies who are able to qualitatively control their costs, they know how to motivate their personnel effectively to attract customers, without spending extra money. System Automation plays a very key role. When it comes to saving at% or fraction of a percent - it is impossible to do manually on paper. Here everything is done by data consolidation at the expense of cost analysis, analysis of merchantability, analysis, opinions guests. So that companies that managed to introduce a modern management system in restaurant business, were in a very advantageous situation in comparison with those who believed all on knee and were satisfied with the high level of profits. In the early 2000's net profit margin in the distribution may reach 30-35% and the company could afford to act not very effective. Things began to change for a long time already in 2004 there was no such easy money in the restaurant business. Net profit margin in the distribution of after paying salaries, rent, cost of products, etc. already accounted for about 18-22%, which allows restaurants to pay back about 2-3 years. That was so arranged Catering in 2004-2006.
Before the crisis, experienced strong growth in the number of restaurants. The growth in property values and increase rent led to the fact that no super-profits of any new restaurants could not even think in the first years after opening. Great importance was given to capitalization brand: in particular, some network cafe opened just at a loss. That is, it was important not the size of net profit and turnover. Each new coffee shop gave, conditionally, 1 million dollars of revenue a year, even with a loss, but it increased the company's turnover. In general, the entire network remained in positive territory through a series of profitable points, while the company increased its turnover. Major network projects relied on the capitalization of its business. They sought, reaching Traffic Network 80-100 million dollars, to sell the business to investors at a maximum price. The main thing - plenty of restaurants. It was such a model of aggressive expansion, the characteristic End of 2006-2007. Now everything has changed dramatically. As soon as the ongoing crisis months, turnover decreased markedly, and the number of loss-making points suddenly noticeably increased - the entire network was on the verge of profitability. On the other hand - the money for expansion have been borrowed, ie, credit, and is usually given bail company's shares. Banks have demanded the money back, if not money - lend the shares, ie situation in a number of chain restaurants projects was not very profitable. Inability to repay the loan or refinancing resulted in the fact that we had to stop the already half-running projects, and this is just lost money.
- How profitable today Automator chain restaurants projects?
- Without a doubt, profitable. In a normal situation Automator gets its money by selling software, hardware and services, and they come in any a sense of independence from what is profitable whether a given point or not. In the long run much deeper than all tied to performance. If the Automator, through its software and consulting, ensure steady growth of network project, and he bought more improvements to the program, taking into account rising requests of the company.
When the owner of a restaurant or restaurant chain starts to count money and systemic way to look at your business, and when his Automator with him on the same wavelength, ie foreshadows his desire for a functional program, while a long-term and mutually beneficial partnership between restaurateur and Automator. And further work "word of mouth." Restaurateurs are beginning to recommend to successfully proved themselves Automator others.
- on the market today there are many companies that are engaged in automation of restaurants, why you have decided to do this? When you open their establishments you could choose any automation system - do not find a solution that would suit you in full?
- Yes, we looked at the program that existed at the time, and a year honestly tried to use them. Moreover, we tried to modify something for yourself. We, together with the software vendor sat and wrote down our requirements, and even some of their embodied. But at some point it became clear that this is impossible. It still turns scrappy automation. We dreamed of a system that would automate all business processes of a restaurant in a single information space. To this was not just cash, sales management and warehouse management, but also:
- accounting finance;
- work with the guests;
- record, motivation personnel and control over his work;
- surveillance associated with events in the system;
- control kitchen
- control your music in a restaurant etc.
We dreamed and thought - whether it is now a program that would be fair for an adult would in a unified way to automate the evening for activities - That we would be happy.
- But you did not find such a system?
- And it now no. Not finding a suitable solution, we have analyze the best programs in Russia. Many say, that they have all the necessary functions restaurateur, but it is not. In practice, a piecewise systems from multiple vendors, and software related to one another: for example, the accounting system from one developer and video from another. It turns out that different companies of different features that are often trying to combine with each other, but the result is very cumbersome, very limited and still does not cover all business processes.
Such a system does not have, not only in Russia - such a system in fully functional form and not in the world. We have studied and the best examples of Western systems. Of course the reason why such a system does not objectively exist. Developing such a system is very expensive occupation. That's a lot of tens and even hundreds of person-years of development. But it's not just the cost of developing such systems. The issue is that the existing system have a great backstory. They were developed in the early 90's based on the technology of that time and have thousands of customers. While today it is necessary to ensure compatibility of data and a certain continuity of these systems with modern technology that may be even more difficult than starting from scratch. People are hostage to certain architectural decisions that were made with the help of computer technology of the old generation.
There is a certain historical reality, and we sought for the system among the proposals from well-known players in the market and talking to professional restaurateurs have realized that the appropriate solutions no. . At issue - whether restaurateurs do not have full integration and modern opportunities for automating business processes - has been received a positive response. It became clear that everyone is waiting for when the market will be the company that will say that now it is - it can be done. Therefore, it was decided to invest money to create a company and put in front of her goal to create the world's best system of management in restaurant business. The purpose of an ambitious, Turns all, but I think we can handle. Rather, I see no reason why we can not achieve this goal.
- How do you know about the needs restaurateurs?
- Our own institution, of course, are the providers of certain ideas and suggestions to the system, but they are considered along with the wishes of customers, and sometimes, unfortunately, and as a last resort. Because we first try to satisfy our external customers, and just when there is time, do something for themselves. We have a large number of customers who have partners who send us your feedback. With these wishes work project- managers - people who are engaged in major projects where a lot of complex integration. This is a painful process - because the number of requests greatly exceeds the capabilities of the company, despite the fact that we have enough staff. Problem addressed by the production committee where all wishes are fulfilled and selected features that will be incorporated into the next version of the program. The result is a single solution that all the time.
- What do you see prospects for the use of modern technologies in the restaurant business?
- Today in the restaurants using the full range of possible technologies, ranging from Wi - Fi , and ending with secure data transmission channels. We in work we use only the most advanced technology. By the way one of the most popular programs for automation of restaurants, which is now used in Russia, working under OS MS DOS . This operating system that are no longer available in the world.
to good, computer equipment should be changed every 4-5 years. Not least because it wears out physically, mechanically. Moving parts and especially the fans are covered with thick dust, especially if the computer used near the kitchen at the restaurant. In this computer, of course, does not work, and eventually breaks. Of course, when you change the computer has meaning to update and software on the new one that will use all possibilities of modern information systems and in terms of communication channels and in terms of data replication, as a result improve the transparency of the business. Using our business owner can from anywhere using a computer see what happens in its schools: one day late, who made some revenue, that is better to sell what tables are occupied, which has provisions for today. And so at any point in the network. For me, my business is open anywhere in the world where there is Wi - Fi is the Internet. In addition, we not only automate taken separately restaurants. We have developed a program iiko Chain , which is able to manage the network of restaurants. For example, a Coffee House 170 commercial enterprises in Sbarro - 200, and with the help of our system, these companies are now automated. Our program allows you to look at cost sales, key performance indicators at any time throughout the network, without waiting for the trading day. Figuratively speaking, at any time You can see how many carrots I had in all restaurants in grams. This kind of visibility and control is possible only if current channels of communication and modern technology. By the way it should be noted, not necessarily expensive equipment. Our software can run on terminals with 128 MB of memory, and it does not slow down her work.
- Will your company to move to the regional market?
- Yes, of course. Before the crisis, capital restaurant chain is actively working on regional development direction. This was natural given the shortage of restaurants in Russia as a whole. For comparison, in the press gives the following figures - in the United States operates 465 thousand restaurants - and in Russia, only 30 thousand And this despite the fact that the need for restaurants to eat. Even in Moscow 10 times smaller restaurants than New York (in per 1000 inhabitants), although the level of income comparable. Therefore, the potential growth of the restaurant business enormous. And once the crisis will pass - again begin to open restaurants, like snowdrops. In this region, undoubtedly, have a special potential.
By current trends, 50% of regional restaurants open with Moscow brands. But even if we do not take them into account, in regions normally open Restaurants are the people who've done this before. Successfully opening a restaurant, you always want to open the next. And here it becomes clear that no system Automation owner loses abuse staff 10-20% of revenue, and hundreds of thousands of dollars. Obviously, the cost of the automation system at 10-15 thousand dollars are not comparable to the losses that the owner of a result of its absence.
- Finally, please tell us about achievements of the outgoing year and plans for next year?
- This year, after a few years since its foundation iiko , we released version 1.0. We have long worked on the program and finally it came out. This is a major achievement in 2008. Despite this fact, Our system has already been used before, was released the 1.0 release. This IP has been so in demand that people were willing to use it before the official release. And there are still companies that are working on versions 0.4 and 0.7, although version 1.2 is already out, and do not want to be updated. The difference in the versions of the figures a little, but fundamentally each subsequent version is quite different from the previous in functionality.
Also this year we opened an office in Kazan, where he worked most development team. We brought our company to number 50, signed a number of partnership agreements, and we had partners not only in Russia, but also in neighboring countries. So we're aggressively moving forward .
Next year we plan to release a new version of the program and are currently working on functionality. We each month trying to expand our solutions and tools to implement new features.
Background:
David Yang - Founder ABBYY Software and Cybiko - one of the most famous entrepreneurs working in the IT-field in Russia. In addition, David still working on the restaurant business. Among his projects include FAQ-Cafe Creative Studio and Club ArteFAQ - Conceptual institutions to meet creative people and an enjoyable pastime. At the junction of these two interests in 2005 started a new project called iiko - a new company which aims to create an entirely new, satisfying all the needs of restaurateurs, restaurant management business.
Published в ж-ле «РЕСТОРАН TECHNOLOGIES»
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