Date post: | 17-Jul-2015 |
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A Restaurant’s Complete Delivery Solution
Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Key Numbers
Team
KOTG started with 20 restaurants and now has 50 restaurants under margin based online ordering contracts including the following major ones
KOTG also handles complete delivery system for 5 partner restaurants
Location
– Operates through its office in Gurgaon, India
Team
– Customer Care: 1
– Delivery Staff: 5
– Delivery Stations: 2
– IT: 1
– Marketing & Sales: 2 (managed by founders)
Online Presence
– Website: www.khaanaonthego.in & www.kotg.in
– Mobile App available
– Facebook Page: www.facebook.com/khaanaonthego
– Twitter, LinkedIn and Google+ pages also available
Khaana On The Go (KOTG) - An Introduction
Whereabouts & Basic Information Partner Restaurants
Founded in January 2014, started operations in April 2014 as an online food ordering and delivery company, KOTG now offerscomplete delivery support to restaurants in Gurgaon
A Successful Transition From A B2C To A B2B Company
KOTG Restaurants
April 2014
May 2014
October 2014
November2014
Sir Allow us to take care of your delivery system, there will be savings, ease, etc.
Sorry, we don’t know you, we liked the concept, but how can we trust you for the delivery, it’s the backbone of every restaurant
KOTG chose the model of an online ordering company• Created its own customers• Tied up with 50 restaurants on margin sharing basis• Delivered all the orders in a timely manner (97% timeliness)
• Created its own team of riders during the period• Identified and mitigated food delivery related issues• Proved its capability as a food delivery company
• Tied up with 5 restaurants for complete delivery system handling
• Got referred to various other interested restaurants• Stabilized operations and carved out a roadmap
KOTGRestaurants
Now restaurants themselves are interested in availing the services of KOTG and KOTG also looks to expand• # of partners• # of riders
Orders Per Day:50, INR 20,000Delivery Team:5 riders and 5 bikes (70% utilization)
Orders Per Day:8, INR 2,400Delivery Team:2 riders and 2 bikes (25% utilization)
Orders Per Day:2, INR 500Delivery Team:1 rider and 1 bike (12% utilization)
Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Key Numbers
Team
What’s the Need
SANDY decides to open a new restaurant• All the finance and sales related calculations and estimations have been made• A decent eating place, experienced chefs and a great menu• An established delivery infrastructure from day 1 expecting deliveries
(accounts for approximately 20% of total investment)SANDY
After a couple of months
Dine in Sales Going Upwards, but Sandy expected deliveries to go up as well at a rapid pace
Expenses have skyrocketed, let’s cut some
Delivery team still underutilized, delivery boys’ salaries, fuel, maintenance eating up close to 30-40% of the total monthly revenue
A Few of them are able to handle that pressure by additionally pumping the required money, doing huge cost cuttings
Others succumb to the pressure and eventually closes the restaurant
What’s In Store For The Restaurants
Delivery infrastructure just a call away, capability to handle simultaneous orders
Online ordering option available to customers, offers are also made
visible through KOTG’s website and social networking pages
KOTG takes away the pain of having a delivery system and lets the
restaurants focus on their core business, FOOD
Order related intimations to the customers give them a satisfaction that their orders are in safe hands
Offers a well structured customer database, to identify relevant target
localities, and corporates=
Exp
ense
s
Pro
fita
bili
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Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Key Numbers
Team
How Does It Work – Business Model
The Delivery Process
Restaurant receives order
1
Restaurant intimates KOTG Restaurant prepares FOOD
2
Delivery boy sent from nearest station within 15 minutes
SMS / Email with total amount and delivery time sent
3
Job Done – Food DeliveredCustomer also informed about online
ordering option
4
Costing For The Restaurant
Restaurants are charged on the basis of number of deliveries KOTG does for them
Slabs as per restaurant’s needs and delivery numbers are made
Two types of services depending upon delivery range are offered to the restaurants
Within 3 KMs
No Distance limit
A Sample Slab (Within 3 kms)
# of orders Monthly Charges (INR)
0-200 10,000
201-250 12,500
………….. ………….
The scalability and optimization of KOTG’s model can be further improved by incorporating various proposed automations and systems like GPS tracking, automated calls, delivery hot-spots, etc.
Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Key Numbers
Team
Pune3,7262,179
What’s The Market, The Opportunity
Gurgaon – The Market in which KOTG Currently Operates
Approximately 1,600
Restaurants
1,000 restaurants with delivery (60%)
KOTG’s initial partners target
= 200
Average Expected Monthly Net Profit per restaurant = INR 2,500
Monthly Profit = INR 5,00,000
After Gurgaon, Other Metros Which KOTG Plans To Enter
Total # of restaurants
Restaurants with delivery
Delhi NCR9,7906,006
Bengaluru5,4572,608
Mumbai9,9727,783
Kolkata2,7011,313
……… & many more
In addition to existing services KOTG is doing a planned exploration of other revenue generating streams in tandem with its delivery focused offerings
Additional Revenue Generating Streams
Customer Related Data Analytics
Online Payment
Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Key Numbers
Team
Key Statistics
Website & Facebook Statistics Operational Statistics
KOTG has grown from delivering 10 orders in August 2014 to processing an average of 50 orders per day with a total value of approximately INR 20,000 currently
KOTG is currently generating revenues from a couple of streams with a few additional streams being explored by the company
Revenues & Costing
84%
16%
Revenues*
Total Delivery Support
Margin Based Online Orders
KOTG has successfully transitioned from being an online order based margin generator to a total delivery support based revenue generator
KOTG also plans to enforce various other feasible revenue streams in the near future
As per company’s estimates the company expects to meet its expenses for the month by January 2015
KOTG is on the path of meeting all of its expenses with its revenues; Salaries account for 40% of the total expenses
40%
25%
15%
20%
Expenses*
Salaries Petrol
Rent & Maintenance Others
KOTG key profitability parameters hovers around the above expenses
With Increase in number of orders to an optimum level the expenses can be controlled
Creation of delivery stations and processing multiple deliveries simultaneously reduces the expenses pressure on the company by bringing down the distance covered and time required per delivery
* Absolute numbers available on request
Khaana On The Go (KOTG)
Need & The Offerings
Business Model
Market & Opportunity
Numbers & Evolution Of KOTG
Team
The Team
Vaibhava Guptaa – Co Founder
– An Engineer from one of the best engineering colleges in India, Netaji Subhas Institute of Technology
– Almost 3 years of experience in management consulting and business research
– Had worked with reputed companies like Evalueserve and Booz & Company
– Has a passion to make KOTG a company the way he sees it, a reality
Roles
– A to Z of overall company; business development, finance, operations, customer care, logistics managements and any other department that needs to be set up for a smooth functioning of KOTG
Sarthak Sargoch – Co Founder
– An Engineer from one of the best engineering colleges in India, Delhi College of Engineering
– Almost 4 years of experience in financial research
– Had worked with reputed companies like UBS, Evalueserve and Moody’s
– Has the required energy to make KOTG one of the best ideas ever
Roles
– A to Z of overall company; business development, finance, operations, customer care, logistics managements and any other department that needs to be set up for a smooth functioning of KOTG
Karunakar Gautam – Information Technology
– An Engineer from one of the best engineering colleges in India, Delhi College of Engineering
– M Tech. from IIT Kharagpur and Over 2 years of experience in Web Design & Development
Roles
– Takes care of website development, and design and other ERP tools
KOTG was founded by two engineers from Delhi University, with over 3 years in business and financial research with companies like UBS, Evalueserve, Moody’s
Thank You