Emerging innovation in hospitality industry

1. ROBO-MOBO: SPED-SER-TAINMENT
1.Executive summary
Robots within the hospitality industry ranging from artificially intelligent chatbots, designed
to assist with the customer service process, through to robot assistants, deployed to improve
guests' experience.
Design and development of a waiter robot which is considered as a possible solution to
restaurant automation. Food, drinks can be ordered using a touch-screen device on each table.
Food arrives via the network of rollercoaster tracks or some items (such as hot drinks) are
served by a robots
The desired order is transmitted on wireless network to the kitchen. The customer places the
order using electronic menu bar. This order is sent to the kitchen and reception using
communication network. The waiter robot or roller coaster loops then transfers food from the
kitchen to the customer.
2.RESTAURANT DESCRIPTION (VISION)
Vast rollercoaster track that carries meals to the table via gravity-defying loop-the-loops and
spiral drops. We vision a Restaurant where diners watch their food doloop-the-loops onway totable “the
intricate network of loops and spiralling tracks will be an incredible spectacle and we feel this
is an attraction in itself. This will provides unique dining experience. The restaurant will be
equipped with state-of-the-art technology including an exceptional illuminated loop.
Four robots act as waiters, one is part of the welcome staff, and the other ten reserves for
entertainment.
The technology in rollercoaster is geared towards two things – speed of service and
entertainment. Entering the venue abundance of metal rods forming a track around the room is
noticed that’s unusual and a delight . The restaurant promises that the loops, steep turns and
corkscrews, driven by gravity, will deliver dishes smoothly to the table.
Refer to Appendix1(1)
3.GOALS
Every successful restaurant provides a dining experience that gives customers a reason to return
and earns its owners a living in the process. Strategic goals provide benchmarks for filling seats
and selling meals, while also mapping plans for introducing new foods or creating new food
production processes.
3.1 Service Goals
1.Excellent service paired with quality food is a base plan to keep diners returning.
2.Provide the best front-of-house service
3.Diners would be greeted within two minutes of entry and seated within 10 minutes.
3.2 Revenue Goals

2. ROBO-MOBO: SPED-SER-TAINMENT
Revenue goals are important since money is the driving force of the business. We believe to
cover our cost in best possible time to achieve break-even point discussed in details in pt 7 ie
financial analysis
3.3 Expense goals
Goal to keep food costs at less than 40 percent of all revenue. Objectives then focus on low
food waste, finding affordable food vendors and maximizing resources.
3.4 Strategic Focus
Increase Traffic
In order to succeed, an eating establishment must get customers in the door and give them a
reason to stay. Marketing plans provide roadmaps for increasing traffic through strategies such
as signage, social media and targeted print and radio advertisements.
A successful marketing plan includes systems for tracking the results of these efforts and
expenditures, and it specifies strategic goals in terms of desired outcomes such as a targeted
number of new customers. Through adoption of newer technologies and innovation trying to
keep a step ahead of the competitors.
Refer to appendix 1(2)
Increase Average Ticket
Once customers arrive, restaurant earnings increase as patrons order more items. Suggestive
selling techniques such as table tents, samples and upselling can yield real results with minimal
investment. Menu expansions also can add to ticket totals by increasing the number of
appealing options.
Improve Profit Margin
Food price inflation is a key factor affecting the food services market in India, Across all food
services formats, food costs (raw materials) account for ~30-35%of the revenue. The perpetual
rise in food costs narrows the margins, compelling to increase menu prices and at times altering
the food menu all together. This in turn accentuates the challenge of retaining customers who
are already value-conscious and tend to evaluate all available eating out options carefully.
Strategic goals for profitability, specifying a targeted profit margin are set. Achieving this
profit margin usually will involve growing more efficient and less wasteful about food and
labour costs, the two largest spending categories for most restaurants. But when we bring
technology (robots)it may be a one time big investment but will lead to competitive
advantage and cutting down cost in future. In long run it would act as a cost cut as well
as it proves to be source of attraction for customers.
Refer to point 7 financial analysis
Infrastructure Goals
Infrastructure requires investment, so these expenditures should be carefully planned and
financed. As well as it acts a big role in hospitality industry. Today’s world is highly influenced

3. ROBO-MOBO: SPED-SER-TAINMENT
by social media let’s take an ex if one of our friend visit a Restaurant if we like the ambience
and get good word of mouth it will attract us that’s the reason in hospitality industry you need
to be creative and innovative time to time. If I take an example dal makhni is dal makhni when
u have developed optimization in that product in terms of taste, quality, quantity, presentation
now what else is left. But if you are In hospitality industry you really need to be competitive
,then comes last option service now here we can think of some innovation that can also act as
a marketing strategy, humanoid robot market has gained an exceptional prominence owing to
the extensive demand for automation across the globe.
Refer to appendix 1(1,2,3)
FUTURE PLAN
1.Branch Expansion
2.Technology upgradation on regular basis (Robots)
so that they can greet and receive guests, guide them to the table and also recognise them if
they come visiting again.
3.Option to use robots in the kitchen.
4.As well as discussing with the Chinese factory officials about authorised sole distributorship
to sell their robots across India. It could be for a pub, a coffee shop or any hospitality industry.
In that case, we can just assemble the robots for people.
Refer to appendix 1(4)
4.SITUATION ANALYSIS (ON SWOT BASIS)
A – Competition analysis
Acc to us many theme restaurant can act as our competition as they will attract our customer
base like in japan there is an aeroplane theme restaurant , toilet theme restaurant, Ithaa,
Maldives, El Diablo “The Devil” Spain, Norma’s, New York, The Black Pearl, Bangalore,
that attract youth who covers an imp percentage part of our customer base ,but constant
innovations will help us stand competition.
Fragmented Market
The Indian food services market has many small and mid-size unorganized players competing
with large chain players. This fragmented market reflects a number of challenges, including
the unclear format segmentation, varied consumer options for eating out, and the lack of best
practices for food services outlets.
There are a number of players who offer products that are more or less similar, at competitive
prices. No single player leads the market; and also low consumer loyalty exists.
This makes it challenging for players to engage and retain consumers, and heightens their
performance-related uncertainty. It is imperative that food services players tailor their offerings
from time to time be it the menu, the format, or the concept, in order to establish a unique
business proposition and attract diverse consumer segments

4. ROBO-MOBO: SPED-SER-TAINMENT
Refer to appendix 1(4), appendix 2
B - Company Analysis
Hiring and Training Staff
It is important to hire and train the right employees. Yet, a common problem exists when we
hire the wrong person and have a high turnover rate. An incompetent staff can also irreparably
damage current and future customer base. This would become our advantage as we would be
more dependent on technology, thereby manpower issues would not be of much concern
Manpower Issues: Shortage of Quality Staff and High Attrition
According to a study by the Ministry of Tourism, the current supply of skilled/ professionally
trained manpower is estimated to be ~9% of the total manpower requirement. Given this
shortfall of quality manpower and the industry’s high attrition rate of 20-25%, the cost of labour
is high. To bridge the demand and supply gap we need innovation
Risk Management and Safety
Restaurants need to always be prepared for a wide variety of safety issues that could adversely
affect staff and customers, including kitchen injuries, food-borne illnesses due to mishandling,
slips and falls, and sanitation issues. Risk management and workplace safety programs takes
out a huge amount from revenues.
Refer to appendix 1(4), appendix 2
C- Customer analysis
Customer size
The robots are a hit with kids, and also a top selfie attraction
There are certain benefits to having a robot waiter too — there are no misheard orders, and
thanks to the technology, no wrong dishes are likely end up at wrong table. But the concept,
while undoubtedly cool, raises an ethical, moral and possibly existential question — does a
robot waiter expect tips?
Refer to appendix 1(2)
A Unique Selling Point
A unique selling point offers your customers a feeling that enables them to remember you long
after they are gone. Let your food, your service, and your unique selling point and identity
make an emotional connection with your customer
5.PRODUCT MARKET FOCUS
Our target market would be metro cities or cities which are early adopter of technology like
Pune, Bengaluru, Hyderabad as the major population is of young professionals with higher
disposable incomes.

5. ROBO-MOBO: SPED-SER-TAINMENT
A.Segmentation Analysis
This would be majorly based on veg and non-veg, Alcoholic or non-alcoholic or family
restaurants.
B. Target Market
This would be majorly focussed on youth in the range of 24 to 38 yrs. of age. As this would
include singles or family of two or family with small kids who love new technology and major
source of selfie attraction.
C. Positioning
Family restaurant safe secure technology dependent with concern about quality, ambience and
ease/quick service while being innovative as well as interesting.
Refer to appendix 1(4), appendix 2
6.MARKETING PROGRAM
As being technology dependent, the marketing program would be majorly based on digital and
social media marketing as our target customers are young tech savy people.
A. Product Strategy – Speed of service with entertainment
B. Price Strategy – Trying to be in the upper middle and elite class of customers with high
disposable incomes
C. Promotion Strategy – Being technology base thus the focus would be through adopting
and exploring different internet and social media means of marketing such as food blogs, rating
companies, Discount coupons, Referral groups through Facebook/insta/twitter etc., online food
rating companies, offering food challenges.
7. FINANCIAL ANALYSIS
The robots cost around Rs 7 to 8 lakh each.
If we bring technology (robots)it may be a one time big investment but will lead to
competitive advantage and cutting down cost in future. In long run it would act as a cost
cut as well as it proves to be source of attraction for customers.
Breakeven point attainment will depend on labour cost/wage rate
FOR EX in USA where the labour cost is quite high there we can attain break even point early
as compared to CHINA or INDIA where labour force is available at low wages due to high
population, breakeven point will be achieved in long run.

6. ROBO-MOBO: SPED-SER-TAINMENT
MANUALLABOUR COST
TEAM MEMBERS DAILY WAGE RATE TOTAL DAYS TOTAL COST
RAJU 500 360 1,80,000
SHYAM 500 360 1,80,000
RAJESH 500 360 1,80,000
RAHUL 500 360 1,80,000
SHRIVASTAV 500 360 1,80,000
SAMYAK 500 360 1,80,000
AVANT 500 360 1,80,000
MEHUL 500 360 1,80,000
TOTAL MANUAL LABOUR COST 14,40,000
Lets say Robot life is5 years
To remove 8 labours/waiters, we have to buy 4 robots only
Machine / Robot cost-
For 5 years
4 robots*8,00,000(approx)= Rs 32,00,000
For 1 year
Machine cost will be Rs 32,00,000/5=6,40,000
Total Machine cost
6,40,000+Maintance charge (1,60,000 per year)= Rs 8,00,000(with improvedefficiency)
FINANCIAL STATEMENT
OLD STATEMENT NEW STATEMENT
Sales 1cr Sales 1cr
Cost of meal 40 lakhs
Food and waiter cost
Cost of meal 40 lakhs-
14,40,000
=25,60,00
Gross profit 60 lakhs Gross profit 74,40,000
Overheads 15 lakhs Overheads 23,00,000
15 lakhs +8 lakhs
Capital cost 5 lakhs Less:capital cost 51,40,000-5,00,000
Net profit 40 lakhs Net profit 46,40,000
40% of sales 46.4% of sales
Appendix 1
1. Design and Requirements
 Design Block Diagram
The ecosystem for the robotic waiter requires 4 modules as shown in Figure 1. The robot itself
will have a navigation module that will control the motors and calculate the path for the robot
to take. It will be powered by its own power distribution unit which will power it with the
proper 27V. And the current of motor has to be critically 1.6-1.8 A. The kitchen will also have
its own central control unit; MCU 1. All requests from patrons would be received this command

7. ROBO-MOBO: SPED-SER-TAINMENT
module and it will relay information to the robot. It is also powered by its own power
distribution unit which will power it with 3V.
Figure 1: Block Diagram
 Physical Design
The side view of our robot will be supported by 2 main driver wheels that are connected to
stepper motors. There are six caster wheels. Those will help support the robot’s weight and
stabilize the robot. By using stepper motors, we are able to precisely determine the distance the
robot will travel.
The base will be used to house our electronics like the MCU and the bluetooth
receiver/transmitter. The load tray will be used to carry food to the patrons in the restaurant.
 Power Distribution Unit

8. ROBO-MOBO: SPED-SER-TAINMENT
The power distribution unit will be responsible to power up the devices for any time it is
needed.
 Alkaline Battery
3 9V 560 mah batteries will be used as the main power source for the robot. Alkaline batteries
are used because they do not require any special disposal method and they are among the
cheapest option. However, the downside of alkaline batteries are that they have very high
internal resistance and thus, reduces their runtime duration. Therefore, we might have to use
multiple batteries. Besides that, misuse of power from the battery may cause damage or failure
to our components and thus, protective circuits are required to reduce the probability of such
events.
For the kitchen’s power system, two 1.5V AA batteries will be used. This is because 3V is
sufficient to power up the MCU, bluetooth transmitter and bluetooth receiver. A voltage
regulator would not be required.
2. Communication Unit
The communication unit will be responsible for the conveying of information from the control
unit to the respective components.
Requirement Verification
The bluetooth transmitter and receiver
should be able to transmit data for a
distance of 6-8m without the presence
of physical barriers between them.
-Place the bluetooth transmitter 6m away from receiver.
Send a signal from the MCU connected to the
transmitter. Make sure the receiver can receive the data
correctly and stably. Repeat this several times in the
circumference of a 6m radius circle.
 Bluetooth Transmitter in kitchen (central unit)
This transmitter can send the signals from kitchen’s MCU to the robot’s MCU. It will only
send the next destination to the robot’s MCU, then it goes to idle mode. Only when kitchen’s
MCU receives a ‘task completed’ message from robot, it sends any other orders back to the
robot.
 Bluetooth Receiver in kitchen (central unit)
This receiver receive the signals from Robot’s MCU. It can receive multiple signals from the
robot such as its locations, ‘task completed’ etc.
 Bluetooth Transmitter in Robot (navigation unit)
This Transmitter can send the signals from robot to the kitchen.
 Bluetooth Transmitter in Robot(navigation unit)
This receiver can receive signals from kitchen’s MCU.

9. ROBO-MOBO: SPED-SER-TAINMENT
3. Mechanical Unit
The mechanical unit is responsible for the movement of the robot according to the instruction
from the control unit.
4. Risk Analysis
There are a couple major risk factors in our project. The first one is the effectiveness of the
bluetooth transmission and receiver system. This transmission system will allow signals to be
sent from tables to the main MCU in the kitchen and send instructions from the MCU in the
kitchen to the robot. Thus if there is a breakdown in this communication, it will majorly derail
our project. So we intend to prototype a simpler version of this and confirm that we are able to
send messages across correctly.
The other risk factor is in the navigation of our robot. If the robot successfully gets an
instruction from the main MCU in the kitchen, it has to be able to identify its location, calculate
the root to its next destination, move towards it and stop correctly. The risk factor here is
regarding the precise movement of our robot. If our robot does not stop correctly, that could
build up and result in a bigger error if the robot has multiple turns to its destination. This could
even result in, the robot not reaching its destination and maybe even colliding with another
table. To avoid this, we plan on calibrating the robot such that its calculations are precise and
it stops at the correct place.
APPENDIX 2
High Turnover
High turnover is a concern for most restaurants based on industry data the turnover rate is
around 70% whereas staff is an integral part of the restaurant experience.
Training
Proper training and refinement of the robots is a must which would leads to cost addition.

10. ROBO-MOBO: SPED-SER-TAINMENT
Poor Performance
Performance management would be an ongoing process, requiring regular discussion about an
employee’s performance and a formal review at certain times throughout the year.its time
consuming.
Benefits Offerings
Benefits such as healthcare and retirement plans require an upfront cost, this type of investment
have a very strong impact on employee loyalty and there performance. This would generate
cost savings as well as help is in recovering the overall cost expenditure for adpotion of the
technology.
Workplace Harassment
Providing a safe working environment to employees.addressing harassment complaints.
Workplace harassment, particularly sexual harassment, is a major issue for the restaurant
industry.
Risk Management and Safety
Restaurants need to always be prepared for a wide variety of safety issues that could adversely
affect staff and customers, including kitchen injuries, food-borne illnesses due to mishandling,
slips and falls, and sanitation issues. Risk management and workplace safety programs takes
out a huge amount from revenues.
Complex Payroll and Reporting
Restaurant payroll is very time-consuming due to the payment of several forms of wages with
varying tax requirements, making legal compliance a big challenge. Missing a quarterly tax
form submission or any other required reporting can be extremely costly.
Fair Labour Standards Act Compliance
The Fair Labour Standards Act (FLSA) is a complicated law that sets the terms for wages and
hours worked . Keeping track of compliance and are especially prone to FLSA violations
because of the long hours and low wages for restaurant workers is a struggle.