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NEW MATURITY MODEL
CAN FIRE UP
RESTAURANT OPERATIONS
www.wiproecoenergy.com
ANALYZE. ACHIEVE. ACCELERATE
2
Table of Contents
03 .................................................................................... Abstract
04 .................................................................................... What is in, what is not
04 .................................................................................... Introducing CIIA โ€“ for More efficient operations
07 .................................................................................... How the CIIA Model Makes You Future-ready
07 .................................................................................... About the Author
With rapid decline in cost of sensors and meters,
restaurant automation business cases have
become attractive. However, restaurant
operators find it difficult to decide how they can
adopt technology balancing quick wins while
retaining modularity so that their systems can be
expanded in future.
Further with increased automation, there is also more data to deal with.
For example, with 200 restaurants, the number of data points that build
up is close to 10 million per day. This requires capabilities such as
software platforms, rules engines and analytics models to handle such a
large quantum of data and continuously generate value out of it.
3
Abstract
ANALYZE. ACHIEVE. ACCELERATE
The Controlled-Intelligent-Integrated-Agile (CIIA) framework makes it
easy for a restaurant operator to understand his current maturity level
and build a path of technology adoption. The framework helps an
operator reach the agile state where convergence of data helps drive
cross-functional efficiencies, improving guest experience while
expanding bottom line. This paper explains the added value that the
CIIA model can create for restaurants.
Restaurant operators worldwide are investing in customer facing and
Front of House (FOH) technologies including wireless payments, iPad
menus as well as social media marketing.
There are equally big opportunities in Back of House (BOH) that can
lead to higher profitability and guest satisfaction. BOH, which is typically
the passive infrastructure of restaurants including HVAC units, lighting,
ovens, fryers, refrigeration units, that traditionally have been managed
and operated like distinct and disjointed pieces of hardware. This
transformation can help reduce energy costs and improve equipment
reliability, aiding restaurants to better plan for both CAPEX and OPEX.
4
What is in, what is not
Introducing CIIA โ€“ for More efficient operations
The CIIA Model envisages 4 stages of a restaurantโ€™s maturity to manage its BOH assets and leverages the resultant data to drive efficiencies. The
model provides a step-by-step method for a multi-year transformation journey and a mechanism to deal with the electrical, temperature,
mechanical and operational data. The key characteristics of the four-step model are:
However, the question remains where to begin. Our experience of
pilots & projects across restaurant chains shows that the typical cost
of connecting BOH equipment ranges from $4000 to $15000 per
restaurant. For an operator with 200 restaurants, this translates to an
investment of $800,000 to $3.0 million. This is not a small amount
considering the competitive investment needs for remodels, menu
enhancements and marketing.
The industry needs a framework or a roadmap to help better
understand how they can plan the investments that enable quick wins
while enabling a multi-year transformation journey.
Number of equipment that are
monitored and controlled
Quantum of
data logged
Analytics capability
required to mine data
for intelligence that
drives efficiencies
Energy savings potential
and overall operational
savings potential
Typical investments
required and the
respective ROI
5
ANALYZE. ACHIEVE. ACCELERATE
Restaurant Energy & Operational Capability Model
Site Fire-up/Fire-down Automation
โ€ข Basic automation
โ€ข Lighting and Fans
โ€ข Advanced automation
โ€ข Lighting, Fans & Key
Kitchen Equipments
โ€ข Advanced automation
โ€ข Lighting, Fans and Key
Kitchen Equipments
โ€ข Detection of override
patterns and awareness &
training plans to prevent it
โ€ข Advanced automation
โ€ข Lighting, Fans and Key
Kitchen Equipments
โ€ข Detection of override
patterns and awareness and
training plans to prevent it
โ€ข HVAC remote
management
โ€ข HVAC remote
management
โ€ข HVAC remote management
โ€ข Planning of setbacks
โ€ข Mode mismatch and override
pattern detection
โ€ข Alignment of crew behaviour
- Change management
โ€ข HVAC remote management
โ€ข Planning of setbacks
โ€ข Mode mismatch and override
pattern detection
โ€ข Crew behaviour Change
management
โ€ข Equipment issue detection
and rectification
Refrigeration Management
โ€ข ------------------ โ€ข Walk-ins Temperature
Monitoring
โ€ข Walk-ins Temperature
Monitoring
โ€ข Compliance Tracking &
network wide improvements
โ€ข Walk-ins Temperature
Monitoring
โ€ข Centralized compliance
tracking
โ€ข Equipment issue detection
and rectification
Energy Management
โ€ข ------------------ โ€ข Energy Monitoring โ€“
Mains, HVAC & Lighting
โ€ข Energy Monitoring โ€“ Mains,
HVAC & Lighting
โ€ข Energy savings measurement
and verification
โ€ข Continous operational
energy savings opportunity
identification
โ€ข Energy Monitoring โ€“ Mains,
HVAC & Lighting
โ€ข Energy strategy planning
โ€ข Intelligent equipment
maintenance, repair,
overhaul, replacement
decisions
Leveraging Centralized Web-based Platform
โ€ข Exception & Deviation
reporting
โ€ข Actionable intelligence to
crew and technicians
โ€ข Energy consumption tracking
โ€ข Temperature compliance
โ€ข Actionable intelligence to
crew & technicians
โ€ข Energy consumption tracking
โ€ข Temperature compliance
โ€ข Enterprise wide visibility,
Restaurant Benchmarking
โ€ข MIS โ€“ Energy, Temperature,
Billing, etc
โ€ข Actionable intelligence to
crew and technicians
โ€ข Energy consumption tracking
โ€ข Temperature compliance
โ€ข Enterprise-wide visibility,
Restaurant Benchmarking
โ€ข MIS โ€“ Energy, Temperature,
Billing, etc
Centralization of Energy Analytics & Operations Support Teams
โ€ข ------------------ โ€ข ------------------ โ€ข Setting up of a Level 1
helpdesk for deviations
detection across network,
Change Management,
Trainings, Communication
โ€ข Central Analytics Energy
Services for ongoing Energy
Saving Strategies (ESS)
identification & Energy
Savings Strategy
Effectiveness Analysis
โ€ข L1 helpdesk
โ€ข Central Analytics Services
โ€ข Setting up of a centralized
Level 2/Level 3 SME support
for remote resolution for
reduced dispatches and
truck rolls
โ€ข Dispatch management and
Performance tracking of the
issue resolution
Level 2 Maturity
INTELLIGENT
Level 3 Maturity
INTEGRATED
Level 4 Maturity
AGILE
Level 1 Maturity
CONTROLLED
6
The four maturity levels are:
Level 1 Maturity โ€“ CONTROLLED
The entry point for the CIIA maturity path is a stage where localized
HVAC and lighting schedule are automated, and are not manual. Our
experience with restaurants across the US, Europe and India shows
that this can save 5% to 6% in terms of energy spend.
The limitation of this level is that automation of fire up/fire down
schedule of kitchen equipment, which constitutes 35-40% of energy
consumption, is missing. There is also no refrigeration monitoring
where deviations can have both energy impact and food safety impact.
Level 2 Maturity โ€“ INTELLIGENT
The next level of maturity involves automation of fire up and fire down
of key kitchen equipment, based on the predefined schedule and
sequence of operations. This is in addition to the HVAC and lighting
which was done in Level 1.
Other elements of this level are energy monitoring at mains (and
sub-meters where justified) and refrigeration monitoring through
automated temperature logging. The data from the sites is logged
centrally and some basic trends and reports are available in a
Web-hosted application. The operator is also able to remotely update
HVAC and lighting policies remotely through the Web interface
available to him.
At this level, a restaurant will be able to understand the impact of
energy and correlate it with the business volume. Automated
refrigeration data also reduces the workload on the crew to
manually log it, improving staff productivity.
Level 3 Maturity โ€“ INTEGRATED
This level in the CIIA framework makes sense for operators who
have a chain of restaurants and have to manage energy, assets
performance, and compliance and drive profiles across the network.
The stage requires the ability to manage raw data from a large
number of sites. An intelligent software platform is needed along
with deep statistical skills to mine raw data to identify patterns that
become efficiency opportunities.
Level 4 Maturity โ€“ AGILE
In this stage, the operator is effectively able to correlate the
information from multiple data sources โ€” business data, energy
data, operational data of assets, maintenance data, etc. to drive
agility and efficiency across multiple functions.
The data convergence enables decisions like: which make and model of
a fryer, as a lower cost of ownership based on field energy and repairs
data,is the HVAC design appropriate to meet the store needs?What is
the effectiveness of the preventive maintenance cycles?This stage aims
at aligning information flow and business processes to channelize
cross-functional intelligence within an organization.
Below is a snapshot of the commercial business case for the four levels for a typical restaurant:
These figures are based on Wiproโ€™s experience of running pilots & projects.
The journey across the levels doesnโ€™t need to be a step-by-step process. It is possible to jump-start from Level 3. However, going from Level 3 to
Level 4 requires time. An organization would need to understand data and then redefine internal process flows, which would enable the data to
be consumed across the organization in a timely manner so that business benefits are accrued.
INTELLIGENT INTEGRATED AGILECONTROLLED
Capex Investment
(per site)
Recurring Costs
(per year)
Savings
ROIs
$4000-$5500 $5500-$7000 $7000-$9000 $9000-$15000
$200 $300 $800 $1200
5-6% 6-7% 7-10% 10-15%
Less than 1.5 years 2-2.5 years 2-2.5 years 2-2.5 years
7
ANALYZE. ACHIEVE. ACCELERATE
Parminder Singh โ€“ Practice Manager, Hospitality, Wipro EcoEnergy
Parminder Singh heads Wipro EcoEnergy's practice that is focused on creating Energy Management and Sustainability
solutions for the foodservice sectors. As part of Wipro EcoEnergy Senior team, Parminder is responsible for global
P&L for this segment.
He holds an undergraduate degree in Mechanical Engineering and is a post-graduate in Business Administration.
HAPS Dhillon โ€“ Practice Head, HOTREC and Banks
HAPS Dhillon heads Wipro EcoEnergy's practice that is focused on creating Energy Management and Sustainability
solutions for the hospitality and banking sectors. As part of Wipro EcoEnergyโ€™s Senior Leadership Team, HAPS is
responsible for global P&L for these segments. He has extensive experience in operational cost reduction, Analytics,
Energy Efficiency, M2M, Managed Services, with deep skills in solution architecting, delivery and product development.
HAPS holds an undergraduate degree in Mechanical Engineering and is a post-graduate in Business Administration from
the Indian Institute of Management, Lucknow.
About the Author
The CIIA model helps restaurant operators self-assess where they are
in terms of their technology adoption and lays down a blueprint of a
multi-year journey for transformation. It can:
โ€ข Help you compare on a common industry framework for
technology adoption
โ€ข Help assess current maturity levels with respect to
technology adoption
โ€ข Offer the ability to validate whether or not you are getting the
desired ROI from the existing investment
โ€ข Enable a structured multi-year technology investment planning
โ€ข Offer a shared understanding of the roadmap across facility
management, finance and business functions
How the CIIA Model Makes You Future-ready
IND/BRD/MAY 2015โ€“JUL 2016
Wipro EcoEnergy is the energy services business division of Wipro Limited that provides intelligent, sustainable solutions for energy
consumption and management.Utilizing leading edge analytical tools we deliver energy efficient solutions to our clients that reduce their carbon
footprint, energy usage & recover avoidable energy losses.
Wipro EcoEnergyโ€™s Managed Energy Services offering, holistically addresses the entire spectrum of energy and sustainability services providing
sustained energy savings.Wipro EcoEnergy has created a strong local ecosystem of partners in NorthAmerica,Europe &APAC and has deployed
its Energy Management Services solution for a number of clients around the world.These clients have seen substantial energy savings and cost
reduction during the course of their engagement with Wipro EcoEnergy.
For more information please visit: www.wiproecoenergy.com Or reach us at ecoenergy.info@wipro.com
About Wipro EcoEnergy
ยฉ WIPRO LTD 2015

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New Maturity Model Can Fire Up Restaurant Operations

  • 1. NEW MATURITY MODEL CAN FIRE UP RESTAURANT OPERATIONS www.wiproecoenergy.com ANALYZE. ACHIEVE. ACCELERATE
  • 2. 2 Table of Contents 03 .................................................................................... Abstract 04 .................................................................................... What is in, what is not 04 .................................................................................... Introducing CIIA โ€“ for More efficient operations 07 .................................................................................... How the CIIA Model Makes You Future-ready 07 .................................................................................... About the Author
  • 3. With rapid decline in cost of sensors and meters, restaurant automation business cases have become attractive. However, restaurant operators find it difficult to decide how they can adopt technology balancing quick wins while retaining modularity so that their systems can be expanded in future. Further with increased automation, there is also more data to deal with. For example, with 200 restaurants, the number of data points that build up is close to 10 million per day. This requires capabilities such as software platforms, rules engines and analytics models to handle such a large quantum of data and continuously generate value out of it. 3 Abstract ANALYZE. ACHIEVE. ACCELERATE The Controlled-Intelligent-Integrated-Agile (CIIA) framework makes it easy for a restaurant operator to understand his current maturity level and build a path of technology adoption. The framework helps an operator reach the agile state where convergence of data helps drive cross-functional efficiencies, improving guest experience while expanding bottom line. This paper explains the added value that the CIIA model can create for restaurants.
  • 4. Restaurant operators worldwide are investing in customer facing and Front of House (FOH) technologies including wireless payments, iPad menus as well as social media marketing. There are equally big opportunities in Back of House (BOH) that can lead to higher profitability and guest satisfaction. BOH, which is typically the passive infrastructure of restaurants including HVAC units, lighting, ovens, fryers, refrigeration units, that traditionally have been managed and operated like distinct and disjointed pieces of hardware. This transformation can help reduce energy costs and improve equipment reliability, aiding restaurants to better plan for both CAPEX and OPEX. 4 What is in, what is not Introducing CIIA โ€“ for More efficient operations The CIIA Model envisages 4 stages of a restaurantโ€™s maturity to manage its BOH assets and leverages the resultant data to drive efficiencies. The model provides a step-by-step method for a multi-year transformation journey and a mechanism to deal with the electrical, temperature, mechanical and operational data. The key characteristics of the four-step model are: However, the question remains where to begin. Our experience of pilots & projects across restaurant chains shows that the typical cost of connecting BOH equipment ranges from $4000 to $15000 per restaurant. For an operator with 200 restaurants, this translates to an investment of $800,000 to $3.0 million. This is not a small amount considering the competitive investment needs for remodels, menu enhancements and marketing. The industry needs a framework or a roadmap to help better understand how they can plan the investments that enable quick wins while enabling a multi-year transformation journey. Number of equipment that are monitored and controlled Quantum of data logged Analytics capability required to mine data for intelligence that drives efficiencies Energy savings potential and overall operational savings potential Typical investments required and the respective ROI
  • 5. 5 ANALYZE. ACHIEVE. ACCELERATE Restaurant Energy & Operational Capability Model Site Fire-up/Fire-down Automation โ€ข Basic automation โ€ข Lighting and Fans โ€ข Advanced automation โ€ข Lighting, Fans & Key Kitchen Equipments โ€ข Advanced automation โ€ข Lighting, Fans and Key Kitchen Equipments โ€ข Detection of override patterns and awareness & training plans to prevent it โ€ข Advanced automation โ€ข Lighting, Fans and Key Kitchen Equipments โ€ข Detection of override patterns and awareness and training plans to prevent it โ€ข HVAC remote management โ€ข HVAC remote management โ€ข HVAC remote management โ€ข Planning of setbacks โ€ข Mode mismatch and override pattern detection โ€ข Alignment of crew behaviour - Change management โ€ข HVAC remote management โ€ข Planning of setbacks โ€ข Mode mismatch and override pattern detection โ€ข Crew behaviour Change management โ€ข Equipment issue detection and rectification Refrigeration Management โ€ข ------------------ โ€ข Walk-ins Temperature Monitoring โ€ข Walk-ins Temperature Monitoring โ€ข Compliance Tracking & network wide improvements โ€ข Walk-ins Temperature Monitoring โ€ข Centralized compliance tracking โ€ข Equipment issue detection and rectification Energy Management โ€ข ------------------ โ€ข Energy Monitoring โ€“ Mains, HVAC & Lighting โ€ข Energy Monitoring โ€“ Mains, HVAC & Lighting โ€ข Energy savings measurement and verification โ€ข Continous operational energy savings opportunity identification โ€ข Energy Monitoring โ€“ Mains, HVAC & Lighting โ€ข Energy strategy planning โ€ข Intelligent equipment maintenance, repair, overhaul, replacement decisions Leveraging Centralized Web-based Platform โ€ข Exception & Deviation reporting โ€ข Actionable intelligence to crew and technicians โ€ข Energy consumption tracking โ€ข Temperature compliance โ€ข Actionable intelligence to crew & technicians โ€ข Energy consumption tracking โ€ข Temperature compliance โ€ข Enterprise wide visibility, Restaurant Benchmarking โ€ข MIS โ€“ Energy, Temperature, Billing, etc โ€ข Actionable intelligence to crew and technicians โ€ข Energy consumption tracking โ€ข Temperature compliance โ€ข Enterprise-wide visibility, Restaurant Benchmarking โ€ข MIS โ€“ Energy, Temperature, Billing, etc Centralization of Energy Analytics & Operations Support Teams โ€ข ------------------ โ€ข ------------------ โ€ข Setting up of a Level 1 helpdesk for deviations detection across network, Change Management, Trainings, Communication โ€ข Central Analytics Energy Services for ongoing Energy Saving Strategies (ESS) identification & Energy Savings Strategy Effectiveness Analysis โ€ข L1 helpdesk โ€ข Central Analytics Services โ€ข Setting up of a centralized Level 2/Level 3 SME support for remote resolution for reduced dispatches and truck rolls โ€ข Dispatch management and Performance tracking of the issue resolution Level 2 Maturity INTELLIGENT Level 3 Maturity INTEGRATED Level 4 Maturity AGILE Level 1 Maturity CONTROLLED
  • 6. 6 The four maturity levels are: Level 1 Maturity โ€“ CONTROLLED The entry point for the CIIA maturity path is a stage where localized HVAC and lighting schedule are automated, and are not manual. Our experience with restaurants across the US, Europe and India shows that this can save 5% to 6% in terms of energy spend. The limitation of this level is that automation of fire up/fire down schedule of kitchen equipment, which constitutes 35-40% of energy consumption, is missing. There is also no refrigeration monitoring where deviations can have both energy impact and food safety impact. Level 2 Maturity โ€“ INTELLIGENT The next level of maturity involves automation of fire up and fire down of key kitchen equipment, based on the predefined schedule and sequence of operations. This is in addition to the HVAC and lighting which was done in Level 1. Other elements of this level are energy monitoring at mains (and sub-meters where justified) and refrigeration monitoring through automated temperature logging. The data from the sites is logged centrally and some basic trends and reports are available in a Web-hosted application. The operator is also able to remotely update HVAC and lighting policies remotely through the Web interface available to him. At this level, a restaurant will be able to understand the impact of energy and correlate it with the business volume. Automated refrigeration data also reduces the workload on the crew to manually log it, improving staff productivity. Level 3 Maturity โ€“ INTEGRATED This level in the CIIA framework makes sense for operators who have a chain of restaurants and have to manage energy, assets performance, and compliance and drive profiles across the network. The stage requires the ability to manage raw data from a large number of sites. An intelligent software platform is needed along with deep statistical skills to mine raw data to identify patterns that become efficiency opportunities. Level 4 Maturity โ€“ AGILE In this stage, the operator is effectively able to correlate the information from multiple data sources โ€” business data, energy data, operational data of assets, maintenance data, etc. to drive agility and efficiency across multiple functions. The data convergence enables decisions like: which make and model of a fryer, as a lower cost of ownership based on field energy and repairs data,is the HVAC design appropriate to meet the store needs?What is the effectiveness of the preventive maintenance cycles?This stage aims at aligning information flow and business processes to channelize cross-functional intelligence within an organization. Below is a snapshot of the commercial business case for the four levels for a typical restaurant: These figures are based on Wiproโ€™s experience of running pilots & projects. The journey across the levels doesnโ€™t need to be a step-by-step process. It is possible to jump-start from Level 3. However, going from Level 3 to Level 4 requires time. An organization would need to understand data and then redefine internal process flows, which would enable the data to be consumed across the organization in a timely manner so that business benefits are accrued. INTELLIGENT INTEGRATED AGILECONTROLLED Capex Investment (per site) Recurring Costs (per year) Savings ROIs $4000-$5500 $5500-$7000 $7000-$9000 $9000-$15000 $200 $300 $800 $1200 5-6% 6-7% 7-10% 10-15% Less than 1.5 years 2-2.5 years 2-2.5 years 2-2.5 years
  • 7. 7 ANALYZE. ACHIEVE. ACCELERATE Parminder Singh โ€“ Practice Manager, Hospitality, Wipro EcoEnergy Parminder Singh heads Wipro EcoEnergy's practice that is focused on creating Energy Management and Sustainability solutions for the foodservice sectors. As part of Wipro EcoEnergy Senior team, Parminder is responsible for global P&L for this segment. He holds an undergraduate degree in Mechanical Engineering and is a post-graduate in Business Administration. HAPS Dhillon โ€“ Practice Head, HOTREC and Banks HAPS Dhillon heads Wipro EcoEnergy's practice that is focused on creating Energy Management and Sustainability solutions for the hospitality and banking sectors. As part of Wipro EcoEnergyโ€™s Senior Leadership Team, HAPS is responsible for global P&L for these segments. He has extensive experience in operational cost reduction, Analytics, Energy Efficiency, M2M, Managed Services, with deep skills in solution architecting, delivery and product development. HAPS holds an undergraduate degree in Mechanical Engineering and is a post-graduate in Business Administration from the Indian Institute of Management, Lucknow. About the Author The CIIA model helps restaurant operators self-assess where they are in terms of their technology adoption and lays down a blueprint of a multi-year journey for transformation. It can: โ€ข Help you compare on a common industry framework for technology adoption โ€ข Help assess current maturity levels with respect to technology adoption โ€ข Offer the ability to validate whether or not you are getting the desired ROI from the existing investment โ€ข Enable a structured multi-year technology investment planning โ€ข Offer a shared understanding of the roadmap across facility management, finance and business functions How the CIIA Model Makes You Future-ready
  • 8. IND/BRD/MAY 2015โ€“JUL 2016 Wipro EcoEnergy is the energy services business division of Wipro Limited that provides intelligent, sustainable solutions for energy consumption and management.Utilizing leading edge analytical tools we deliver energy efficient solutions to our clients that reduce their carbon footprint, energy usage & recover avoidable energy losses. Wipro EcoEnergyโ€™s Managed Energy Services offering, holistically addresses the entire spectrum of energy and sustainability services providing sustained energy savings.Wipro EcoEnergy has created a strong local ecosystem of partners in NorthAmerica,Europe &APAC and has deployed its Energy Management Services solution for a number of clients around the world.These clients have seen substantial energy savings and cost reduction during the course of their engagement with Wipro EcoEnergy. For more information please visit: www.wiproecoenergy.com Or reach us at ecoenergy.info@wipro.com About Wipro EcoEnergy ยฉ WIPRO LTD 2015