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Study of an Entrepreneur

N.R. NARAYANA MURTHY

Entrepreneur story
Nagavara Ramarao Narayana Murthy, more popularly known as Narayana Murthy, is the co-
founder of Infosys, a multinational corporation that provides services pertaining to technology,
engineering, consulting and outsourcing. Narayana Murthy was not born with a silver spoon in his mouth;
in fact, he had to work extremely hard to reach the top. He was born on August 20, 1946, in Mysore,
Karnataka. He came from a poor but an educated family. From his childhood days, Narayana Murthy was
academically brilliant. He was passionate about Mathematics and Physics and always had the thirst and
the desire to gain more knowledge in these fields. Hence, he pursued a Bachelor’s degree in Electrical
Engineering from the University of Mysore and later, received his Master’s degree from the Indian
Institute of Technology, Kanpur. Although Narayana Murthy was born into a poor family, his dreams
were huge. From a young age, he dreamt of starting his own business venture.
Narayana Murthy began his career as a chief systems programmer at IIM Ahmedabad. He then started a
company called Subtonics, which failed after 1.5 years of its inception.
Despite the failures he encountered at an early age, he did not give up his dream of being an entrepreneur.
He learnt from his previous mistakes and decided to start afresh in 1981. That year, he, together with six
software professionals, put together Rs 10,000 to create a company called Infosys. From the beginning,
the team kept the interests of the company ahead of their own interest. And each of the team members
brought complementary strengths to the company.
Today, Narayana Murthy is listed as one of the greatest entrepreneurs of all time, alongside Steve Jobs
and Bill Gates. In 2000, he was awarded Padma Shri by the Government of India for his significant
contribution to the country’s IT sector and economy. In 2008, he was awarded Padma Vibhushan, India’s
second highest civilian award. In 2011, when Narayana Murthy took retirement, the company went
through tumultuous times. Cost-cutting was evident and the performance of the company deteriorated.
On June 1, 2013, Narayana Murthy was called out of retirement to lead the company once again.
Narayana Murthy, who will turn 67 this year, has taken up the challenge to bring the company back on
its feet. He has taken up the positions of an Additional Director and the Executive Chairman of the
Board with the company. And he is working closely with the top management to come up with
incentives such as giving higher salaries to top performers to improve the performance of the company.
This is a true example of commitment and dedication. Even after his retirement, Narayana Murthy is
willing to sacrifice his luxuries to revive the company.

VENTURE DETAILS
Infosys is the IT services providing company, which is working in India and it has developed its nine
development centers in India and it has more than 30 offices across the world. This company has over $4
billion annual sales and it is growing its business in various other countries of the world. It is empowered
with enterprises with the business vision and strategy, which is included with customer analysis, channel
plans, business case, product strategy and return on investment analysis.
This is the first Indian company, which started working with western business practices and it emphasizes
different aspects of IT. It also provides the software development with the provision of complete network
of development centers, which are located in Europe, Asia and North America. This company has
provided the data management, project management, system integration, maintenance services and
support. The company is working in the Indian economy to show low labor cost despite of the weak
economy indicating weak high inflation rates. The company has huge work force, which is trained in their
skills and they are professional to carry out different professional activities in different departments of the
company.

CHALLENGES FACED

“We have achieved much in the past year…reaching where we want to be won’t be easy,” Murthy said
in the email, urging all employees to “think big and act boldly”. The message was similar in tone to the
one addressed to shareholders earlier in May in the company’s annual report.

In the email, Murthy also conveyed a sense of the challenges ahead for India’s second largest software
services company and the urgency in chasing more orders, especially large deals that would sustain the
company’s core outsourcing business.
As the 67-year-old Murthy completes one year of his second innings at Infosys this week, the magnitude
of the challenges facing the former information technology (IT) industry bellwether at a time when it is
hunting for its first non-founder chief executive officer (CEO) appear daunting, a fact underscored in
Sunday’s mail.

His biggest challenges include putting in place a succession plan, addressing the exodus of middle
managers in the past 12 months and retaining the company’s biggest clients as a result of these exits.

For now, Murthy’s attention is focused on finding a successor who will take over as CEO after co-
founder S.D. Shibulal retires and also take charge of Infosys after Murthy’s term as chairman comes to
an end in a few years, according to two people familiar with Murthy’s thinking and the company’s
plans. They spoke on condition of anonymity.

“Right now, everything else has taken a back seat,” said one of the people. “The near-term strategy and
way forward will be defined only after the new CEO is in place.”

Murthy declined to be interviewed. “Since my work is still in progress, there is not much I can talk
about,” he said in an email last week. “Whatever I want to say to outsiders has already been said by me.
There is nothing more to add.”

Since Murthy returned, he has aggressively cut costs, especially those linked to doing business at client
locations outside India, regularly met the company’s top 50 customers to protect contracts and get more
business, and focused on increasing sales and efficient delivery.

To be sure, customers and experts are asking for a clearer indication of future plans and strategy, saying
that the search for a new leader has distracted Infosys to a certain extent.

Infosys under Murthy is devoting all its attention on fixing its core outsourcing business, an area where
it had lost focus as it pursued its controversial 3.0 strategy under Shibulal, and is ignoring the
importance of increasing its share of revenues from newer areas of technology such as Big Data
analytics and cloud computing, experts warned.

It stands the risk of losing crucial ground to the likes of US-based rivals Cognizant Technology
Solutions Corp. in the area of newer technologies, a fact that is not lost on some of its top customers.
“Some of the newer innovations that we are looking for are not really coming from the likes of Infosys,
and that is disappointing,” said the chief information officer of a large US-based consumer goods firm,
which has outsourcing contracts with Infosys and other Indian software exporters. He requested
anonymity.

Under Murthy, another major area of concern is the high attrition rates the company is facing, especially
of middle-level managers.

Such exits have the potential to hurt as these managers are responsible for maintaining client
relationships and getting more business from big-ticket accounts.

“Middle-management employees are most in demand and Infosys’s ability to hold on to them could
weaken further if it does not close the growth gap to peers,” Viju George and Amit Sharma of JP
Morgan India Pvt. Ltd said in a recent research note. “It’s a bit of a circular loop—you lose critical
middle-management talent and due to this, delivery and client satisfaction suffer, impacting growth.”
The euphoria of Murthy’s return last year has largely been replaced by concern over the company’s
progress. Infosys does not enjoy its pole position of being a first-choice employer among managers and
engineering graduates any more, Infosys executives, headhunters and recruiting firms interviewed for
the story said. All of them declined to be named.

In Sunday’s letter, Murthy said Infosys had seen a 140% increase in job applications, as he sought to
reassure employees that the company maintained its position of being an employer of choice despite
high attrition.

At least 500 mid-level managers have left Infosys in the past 12 months, according to people familiar
with the development, who too wanted to remain unnamed. Infosys has conceded that attrition, which
stood at 18.7% in the March quarter, is an area of concern and the company was working hard to
address the impact.

“While the demand for talented people has always been high, we are aggressively working towards
addressing our attrition,” an Infosys spokeswoman said in an emailed response. “We have heard the
concerns of our employees and have brought in the most important changes they have asked for. These
include improving our compensation model, expanding career opportunities for our people and
strengthening our talent base globally.”

Infosys has not conceded any large customer accounts or substantial business since Murthy returned.
But 9+some exits are starting to reflect in some accounts, where clients have shifted business from
Infosys to rivals and experts warn this does not bode well.

For example, oil firm BP Plc shifted some business from Infosys to Bangalore-based rival Wipro Ltd
when it was renewing its multi-million dollar outsourcing contract, after Wipro poached a mid-level
executive from Infosys who was overseeing the client account for them, according to two other people
familiar with the development, who also requested anonymity.

The board of Infosys needs to take bold steps and not be averse to hiring a candidate from outside the
company, unlike its practice over the last three decades of giving each of its founders a turn in running
the company, according to the chief executive of a rival firm.

“Infosys has no option but to go for an outsider who can come in and shake things up,” said the CEO of
one of India’s top-five software services exporters. He requested anonymity. “They’re facing a huge
crisis in leadership internally and the board needs to recognize that and act accordingly.”

“Infosys definitely needs a leader who is a visionary,” said Kavil Ramachandran, a professor at the
Indian School of Business who specializes in the area of family businesses and succession planning.
“They probably need someone who is doing well in some other rival company, but who has worked at
Infosys in the past, so has a fairly good idea about how the organization works.”
MARKETING STRATEGIES

From the beginning, Narayana Murthy focused on the world's most challenging market - the US. He had
two reasons for this. First, there was no market for software in India at the time. He believed that Indian
software companies should export products in which they had a competitive advantage.
In 1987, Infosys entered into a joint venture with Kurt Salmon Associates (KSA), a leading global
management consultancy firm. KSA-Infosys was the first Indo-American joint venture in the US. They
are giving attention on increasing their sale of the products and provide the services to its clients. The
company is providing the financial assistance to its clients and extends its services in other parts of the
world. The company is focusing on the latest and unique services with the solutions of the technical
issues of the clients. The company is working hard to improve its productivity, cycle time and its
quality.
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DESCRIPTION OF THE FIELD

It is a restaurant searching platform providing in-depth details with autonomous reviews and ratings. the
initial name was changed to FoodZone to increase their reach among people. To differentiate themselves
from their competitors, FoodZone concentrated on adding approx. 18,000 new places to eat from. Along
with they also decorated many special features, such as pointed to particular dishes or opening times”.

To be the largest resource in food supply market, FoodZone bought urban spoon, a leading restaurant
service providing portal for $52 million to enter US, Canada and Australia to leverage local insights and
experience and to expand their business in overseas seeing the future goal and objective

Vision:-To expand to more 50 countries

Milestones:

 Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013 and
currently 384,100 in Q1 of 2015.
 Monthly visitors of FoodZone increases to 35 million in 2014 which was 11 million in 2013 and 0.015
million in 2008.
 Yearly revenue of FoodZone in 2008 was 0.06 crores which increased to 11.3 crores in 2013.
 Spread in 21 countries worldwide.
Success Factor:
 First mover advantage
 Strong content platform
 Efficient employees
 Good rating mechanism and social platform
 Funding from experienced source
Strategy:- FoodZone works with keen interest on various strategies to achieve their goal. It includes
 Financial strategy: To increase their fund and revenue
 Marketing strategy: To tap their customers from across the globe
 Growth strategy: To grow continuously and increase their customers and page traffic
 Globalization strategy: To expand themselves across the whole globe as a leading service provider

Marketing Strategy
 Featured and user friendly website
 Global mobile app
 Focusing on digital marketing channels for potential customers
 Simpler review and rating system
Integrating other tools in their marketing strategy has given them wonderful hike in their business.

 Sales promotion: Coupons and price-offs


 Direct Marketing: Phone call and direct mail
Relevance

1. More customers choose to order from restaurant websites and apps VS food portals
The following infographic below brings proofs showing that most often, customers choose to order
straight from a restaurant's website and mobile app rather than using a third-party app.

2. It’s just one click away


Today, more than ever, people can easily order online thanks to the smartphones and tablets. Studies
conducted by the Interactive Advertising Bureau and Viggle show that about 69% of customers order
food online using a mobile device.

Whether on a break, stuck in traffic, or riding the bus, virtually anyone will place an order quickly and
painlessly.

In fact, this is a better, and highly desirable alternative to waiting until getting home and placing the
order over the phone.

3. It’s fast, easy and comfortable


In a nutshell, your customers choose to order food online because it’s literally at their fingertips.

Virtually anyone with a smartphone can order food online from your restaurant. And according to a
Harris poll, in this day and age, millennials (people under 30) are your most important target audience.

In fact, the report clearly states that restaurant dining accounts for 43% of the average family’s annual
food budget — and millennials are the driving force behind it.

Over 97% of Millennials actually use their phones for just about anything. And ordering food online
falls right into the same broad category.

So using an online ordering system is the easiest way way to allure millennials - probably your most
important, sale-generating target audience.

But there’s more. You’ve just found a way to persuade virtually ANYONE from ordering food from
your restaurant.

4. Because it’s visually appealing and stimulating to ALL of the hungry customers
New research from the University of Minnesota’s Carlson School of Management showed that an empty
stomach leads to a an empty pocket. Or wallet, as the case may be.

Here’s what Alison Jing Xu, Assistant Professor of Marketing at the Carlson School, discovered at the
end of the study:
The take? Hungry customers order much more food online. That can be translated into bigger and
higher orders and a significantly larger stream of revenue fueling your accounts.

As the saying goes, the first bite is with the eye. So enabling your customers to go online and see the
entire menu when they’re hungry pushes them towards ordering more food that they wouldn’t
normally order over the phone.

Without actually realizing, you are doing the exact same thing everytime you go shopping and you’re at
your hungriest.

So take it from your own shopping experience: when you’re hungry, you tend to buy just about anything
that appeals to you, so at the end, you leave with a cart full of food.

5. No misunderstandings and no frustrations


One of the biggest issues with phone conversations is that misunderstandings can happen quite easily.

Usually due to the noise, either in the restaurant or on the other end of the line, all it takes is one simple
mistake to compromise an order and frustrate a customer.

With online ordering, all preferences are specified directly by the customer, so there is no room for
confusions or misunderstandings.

6. Online food ordering is opened 24/7


Your restaurant might not be opened 24/7, but your online ordering system surely is. And it can help
you make money even while you sleep.

By using an online food ordering system, you give your clients the flexibility to place the orders
whenever it’s most convenient for them. Even if that happens outside your business hours.

And this can help scale your order size considerably. Because they can easily choose to schedule a
preferred pickup or delivery time within your working time.

And so, when you open, you already have a to-do list to review and to start acting on.

7. An online menu is simpler to manage


It is much easier and considerably cheaper (or even free) to create and maintain a great looking menu
that will impel your customers to order from you everytime they see it.

Not only do you get rid of the burden of printing and relieve yourself of the printing fees, but you also
gain a great deal of flexibility in changing the menu whenever you want.

Plus, you can easily...


 Test different placements of your dishes in the menu to see which ones entice diners the most,
 Set up daily promotions,
 Or advertize in-stock food items with limited shelf availability.

Moreover, with a great online menu and a customer configuring the order online himself/herself, up-
selling just happens :)

That means that if they see the dessert page, they’ll also add that to their order, alongside their favorite
main course.

According to NPR, online clients tend to spend, on average, 4% more money.

8. Less hassle for you


Customers can order very quickly or can take a very long time to decide. No longer an issue for you.
Switching the focus from offline ordering to online ordering means less hassle on handling undecided
calling clients and the staff time lost in the process.

And that means significant money savings for YOU.


And if you do it like a pro, you can eliminate even the follow up calls. With an ordering system like
ours, the order confirmation is received by the client in real time.

So there is no reason for you to waste your time calling them back to confirm their order.

As for the costs of online ordering itself, good news: this comes for free for both the client and the
restaurant.

For example, our food ordering system is completely free. There are no commission or setup fees. It’s
just as breezy as a tropical dream. If you’re thinking that a food portal would be more appropriate to
start with, well… it depends. There are advantages and disadvantages you should consider.

In a nutshell, don’t let your business slip-away from you, hoping that “others” will take care of it better
than you can.

Oh, one last idea: don’t put the wagon before the horse. Think first of what and how you want to sell,
then take the time to choose the right marketing for it. Not the other way around.
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KNOWLEDGE ABOUT THE FIELD

It is difficult for the canteen staff to know the amount of food to prepare for a retain day or meal leading
to a shortage or wastage of the food prepared. With the new system, the customers would be able to
order their food from the comfort of their offices, classrooms, hostels and anywhere outside the school
campus without queuing. The system will cater for the disadvantages of the traditional method which is
currently in place.

Statement of the Problem “The Inability to order food on time In the canteen Is leading to the shortage
and excess of food and queuing leading to wastage or unhappy customers.

Research Objectives This study aims to design and construct an “Online Ordering System”, to provide an
say access in getting their orders and paying their bills. To develop the system using PH that will be used
for the transaction. To create a more convenient form of ordering and verification system in the HIT
canteen To lessen the work of the finance lady in collecting food funds before and during lunch. To
develop a system with a user-friendly interface. To develop a system that takes orders from the customer
as per his/her choice.
SWOT ANALYSIS

Strengths

 Excellent Platform – FoodZone process various orders for the customers and sends them directly to
partner restaurants. Once the order is processed, it delivers it to its customers. The service is
available to the customers through mobile applications and websites, where the customers can order
food by entering their postcodes on the website. The customers can browse for food from the
restaurant list shown on the website. After the selection, the customers need to enter their address
and proceed for checkout. The respective restaurants receive the orders and the food will be
delivered to the customers. It will also send an SMS for order confirmation and the estimated
delivery time.
 Online Ordering – FoodZone accepts orders through its websites and mobile applications. It
connects customers and restaurants.
 Investments – FoodZone has raised a venture capital of $318 million. It had raised about $20 million
in the initial funding from Rocket Internet and Investment AB Kinnevik during the year 2013.
During the same year, iMENA Holdings had invested about $8 Million. It had also received another
funding of about $20 Million during the year 2014. Goldman Sachs had also invested about $100
Million in FoodZone. All these findings are, in fact, a huge strength to the company.
 Various International brands – FoodZone has been taken over by the firm Delivery Hero during the
year 2016. The Delivery Hero brand contains multiple international brands. In Asia and Eastern
Europe, it is FoodZone, in Europe, Canada, and Australia it is Foodora, in Middle East it is
hellofood, and in Russia it is a Delivery Club, etc.
 Global Operations – FoodZone has its business operations in various countries in Eastern Europe,
Middle East, and Asia.
 Global Rebranding – During the year 2017, FoodZone has re-branded from Orange to Pink by
having updated logs across all countries. The iconic panda remains at the forefront of its logo.
 Quick Delivery – FoodZone process the food delivery with less time as it tries to sync its customers
to the nearby restaurants.
 Trained Employees – FoodZone has trained people for making their delivery faster.
 Wide Coverage – FoodZone has a wide coverage of restaurants and it fits the vast customer
requirements and food preferences.
 Good Customer Support – FoodZone has excellent customer support and works for their
requirement and food preferences. It keeps changing the food menus and tries to expand it connect
with restaurants.

Weaknesses

 Orders from nearby restaurants – Orders are only available from restaurants that are in the zone of
the order placed. This is a weak point as all the restaurants will not be available at all places.
 Tap on the Free Delivery – Quantity required for free delivery is sometimes a bit more for one
person.
 Yet to cover more – FoodZone has not yet covered in all areas in a city.

Opportunities
 Growing Market – There seems to be in the right fit as in the growing market there is the possibility
of potential customers.
 Customer Expansion – FoodZone must expand its horizon to meet more customers requirements. It
will have to tie with many restaurants and bring more customers to the website. This will provide
more opportunity for the business.
 Increase in Customer Loyalty Programs – FoodZone can set up may customer loyalty programs to
make the customer stay with them. They could initiate some offers, some reward programs, to make
them sustain with them. This would provide a huge opportunity for them.

Threats

 Increased Potential Competitors – There seems to be an increased competitor in this market. This
is a major threat to the FoodZone business.
 Low Customer – Over the years of its initiation, there seems to be a low customer in the business.
The business should bring out ways to increase their customers as it could be a serious threat to the
business.
 Change in economic condition – Economic changes in the world will affect the business. This is
also a huge threat to the company.
 Ease of going to the nearby restaurant – People might tend to go to the nearby restaurant instead of
getting it ordered through the website. This is also a threat to the business.
SUMMARY

FoodZone is a food and restaurant search engine which caters to the daily demands of people who
are in search of good eating places. With the largest catalogue of restaurants around the globe,
FoodZone is used on a daily basis to locate nearby restaurants. Moreover, it can also be used to
book a table in a few selected restaurants at a certain time. It also has a consumer suggestion list
which specifies the availability of a certain dish or cuisine at a certain time.

FoodZone is the best online food ordering site in India. It connects people and the best restaurants
together. It delivers in Delhi, Bangalore, Mumbai, Hyderabad and many other cities, FoodZone has the
highest reach in India. You have to enter your post code and can search for cuisine type, restaurants or
even price. The restaurant index also includes address and delivery hours. No online food delivery is too
difficult for FoodZone .The use of Digital Marketing Strategies has played a huge role in the making of
it as a brand.

 B2C service restaurant menus, customer reviews and 4000 restaurants spread over 40 cities.

 With just a few clicks one can order from a wide variety of delicious online cuisines.

 Target audience almost anyone with an android phone.

 Food & e-commerce Industry.


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Value Proposition of FoodZone

The business model of any organization looks to create value for the customer which they cannot get
anywhere else. FoodZone revenue model focus has been on creating something new and extra which
they cannot get elsewhere. FoodZone is a one-stop-shop for dinners and offers a way for restaurants to
differentiate themselves. Restaurants can create differentiation by Keeping the listing updated,
responding to criticism positively and being accountable to their action.

The organization must create value for its customer to sustain its business operations. FoodZone
business model has offered a variety of value to the customers. FoodZone bridges the gap between the
customers and restaurants through efficient technology application. The efficiency in technology has
helped FoodZone to reduce its delivery time. Customer can get their food delivered at their doorstep in
quick time
Customer Relationship Building

FoodZone thrives on the rating system by the customers who visit the restaurants listed on the site.
Service-based industries like FoodZone rely on the customer for referrals and repeat purchase.

FoodZone customer service is based on Online customer support with a mandatory rating mechanism.
Customer support chat is available 24/7. The customer can also call a customer service center to inquire
about the problems.

Customer Segments
Customers are the main source of revenue for service providers companies like FoodZone. FoodZone
also relies on its customers for revenue.

The customer segment for FoodZone includes people to find local restaurants of various cuisines.
People can search for restaurants in various area and the menu of the restaurants in FoodZone.

Not only the people but the restaurants are also the customers for FoodZone. Restaurants which look to
reach a large target audience partner with FoodZone to increase their visibility. In return of visibility, the
restaurants have to pay a certain amount to FoodZone.

Bigger the size of your customer segments, better the chances of earning high revenue. FoodZone
customer segments also include people who want the food to be delivered at their doorstep. People who
prefer to stay at home and order food from restaurants using apps are the potential customer of
FoodZone.

FoodZone works with a huge amount of customer data. The data is collected from the customers who
give a review of the restaurants and thus provide a rating system to restaurants. Database companies and
Market Research companies which are in need of the customer data are also the customers of FoodZone.
RESOURCES REQUIRED

An organization needs a sufficient amount of resources to run its business operation. The key resource
FoodZone need for business operation is a large database of restaurants across cities.

The rating system of restaurants is based on the large database collected from the restaurants. Other
resources of FoodZone are restaurants listed on the site and delivery personnel. These resources are key
to FoodZone success over the years.

FoodZone Marketing Strategy

FoodZone generated over 95% of revenues from ads in FY13. Looking towards their recipe why they
are making tons of money and able to stand out in a competitive market. Here is the summarized list:

 Technology: User-friendly Website, great UI design, cross-platform app. FoodZone has leveraged each
one effectively and everyone knows what power the internet has.
 Social networks: They are a means of communication and not an advertising platform. Communicating
with fans and followers makes a brand personal and human, and one can’t really put a price on that.
 Audience Segmentation: FoodZone knows its audience, and how! There are posts for everyone, or to
say it precisely, for every foodie.
 Compelling content: Each post of FoodZone marks excellence and a higher degree of creativity.
 Loyalty Program: They never fail to cash the latest happenings. FoodZone always creates something
for ongoing events such as Coupons and price-offs.
 Tracking: Monitoring user actions on the website helps in improving the product to better cater to the
audience.
Crucial Collaborator:
 Paytm
 Uber
 Food Bloggers
 Restaurants
MAKE MONEY CONCEPT

1. Advertising
2. Subscription
3. Even Organization
4. FoodZone White label
5. Online Food Delivery
6. FoodZone Consultancy
7. FoodZone Gold

Advertising
FoodZone started as a restaurant search and rating services. Customer can search for their favorite
restaurants and cuisines available in a certain location in FoodZone. They can also rate their service
experience of restaurants in FoodZone. A good rating on FoodZone has become synonym with
qualitative service and food in the restaurants.
Advertising is the major source of revenue for FoodZone. Restaurants can promote their banner on the
site. The restaurants get better visibility and appeal to a large section of the audience via FoodZone.
In return, FoodZone charges a certain fee for the banner promotion of restaurants. Almost 50-70 %
revenue of FoodZone comes from an advertisement of restaurants on the site.

Subscription
The next major source of revenue for FoodZone is a Subscription fee. Restaurants pay a certain amount
of fee monthly and in return, FoodZone offers them the analytical tools. FoodZone possesses a huge
amount of database and a great analytical tool. What a customer wants to eat, where he/she wants to eat,
what the consumer is searching for and what they are not searching, FoodZone knows all this
information of consumer through the cookies.
FoodZone possesses an analytical tool called FoodZone order and the tool is given to the restaurants.
Through this tool, restaurants can know about the consumer interest, what consumer want or what they
don’t want. Restaurants with the help of this tool can manage what they want to offer to consumer and
also, they can flash their discount offers on food.

Another tool the restaurants receives from FoodZone is FoodZone book. Many of the customers want to
reserve the table in a restaurant in advance. Through this tool, the restaurants can manage their staff and
know which table is vacant. For these analytical tools of FoodZone, the restaurants have to pay a certain
amount of subscription fee monthly.

Event Organization
When there are any festivals say for example EID, FoodZone partners with restaurants to organize food
events. People who come to these food events have to pay the price of tickets. FoodZone receives a
certain percentage of the ticket price from these events.
The food organizer also looks for opportunities to promote their product and food event of FoodZone is
the perfect platform for them. To advertise in events, they pay advertisement fee to FoodZone.
FoodZone receives income from the advertisement also.

FoodZone White label


The next source of revenue of FoodZone comes from app development. FoodZone launched the service
called FoodZone White label under which they give offers to the restaurants to develop customize the
app.

With this customize app restaurants can connect to its customer and they don’ even need FoodZone to
attract customers to them. Isn’t that great?

Online Food Delivery


When FoodZone started, it was basically a restaurants search service. The market for online food
delivery was on the rapid rise in India.

FoodZone other sources of revenue come from online delivery of food. It charges a commission to the
restaurants on the basis of food order. Although online food delivery contributes to a low percentage of
income compared to other revenue streams.
FoodZone Consultancy
As you already know that FoodZone has a great analytical tool and a huge amount of database.
FoodZone knows the preference of food in certain areas, what they are ordering through the database. If
you want to build a restaurant in that area, then you can go to FoodZone for help.

FoodZone helps the newcomer in the market with the data and charges a fixed amount for the
consultancy services. Restaurants can go to FoodZone to know the consumer’s preference, wants, desire
and FoodZone has the consumer data to help them. In return, FoodZone charges a fee for consulting the
restaurants.

FoodZone Gold
FoodZone gold is a premium subscription-based service offered by FoodZone.

One thing is that Gold service is limited to dine-in orders only and not available for deliveries. Make
sure you can use FoodZone Gold only once at each partner restaurant in a day. However, you can visit
each restaurant as many times as you like during your membership duration.

How does FoodZone Gold work?

FoodZone Gold offers either 1+1 on food or 2+2 on drinks when you visit their partner restaurants.

Food (1+1)
For instance, when you go to a restaurant which offers 1+1 of food i.e. when you order 1 item, you get
the second one at free of cost. So if you order dishes like a burger or something else from a gold partner
restaurant, you will get the second dish for free (of the same value of 1st dish or lesser). It means you
are able to save the cost of 1 dish.

Drinks (2+2)
In this scenario, when you dine at a partner restaurant of FoodZone and order 2 drinks (only alcoholic)
you get 2 drinks of the same cost or less value for free. For instance, if you buy 2 beers you get 2 beers
free. So for a total 4 beers, you pay only for 2. So, here again, you are able to save the cost of 2 drinks
Business Model :

Over 90 million users come to visit FoodZone every month to search the place for dining or home
delivery hence this makes a highly targeted place for advertising for restaurant owners. Advertising for
restaurants is the key revenue generator for FoodZone. The company also launched a new food ordering
app from which you can order food from near by restaurants.

FoodZone is currently operating in 24 countries across the world with more than 2000 employees from
32 different nationalities with a motive of building amazing dining experience.

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