ANLY482 AY2016-17 T2 Group21 : PROJECT OVERVIEW
Project Overview
4FINGERS is a Singapore-based and headquartered chain of fast casual restaurants that specializes in Korean-styled fried chicken. Since its inception in 2009, it has experienced rapid growth and has gained a cult following amongst Singaporeans. 4FINGERS pride themselves on serving non-processed food with no artificial flavourings, and MSG. Besides Korean-styled fried chicken, 4FINGERS also features many other asian-inspired menu items including burgers, Japanese rice boxes, fried seafood and salads. Influenced by New York City, the interior design of the restaurants feature heavily-graffitied and signs reminiscent of the New York City Subway
4FINGERS was founded after its creators discovered the best Korean-styled fried chicken in New York’s Koreatown - they knew they had to share it. The recipe has since been refined and perfected, and its fried chicken has been constantly raved about since its inception in ION Orchard mall in 2009. In just two years, 4FINGERS added six more stores scattered all over sunny Singapore. Since then, they have expanded regionally to our neighbours - Malaysia and Indonesia.
With its aggressive expansion locally and regionally, 4FINGERS top-level management realised the value which data analytics is able to bring to the company, in terms of optimising their merchandising, menu offerings, and improving their bottom-line. As such, they hope to continue to derive valuable insights from their data to help them propel their growth even further, locally and regionally.
Business Problems
For sustained growth over the years, 4FINGERS has to launch new menu items to further entice their customers, with limited software and human resources at hand, they are unequipped with resources to determine the performance of promotions and set menu items. Although they have a variety of products to offer their customers, such as asian style burgers, rice boxes and salads, sales for products other than their signature korean fried chicken, is generally low.
Since their initial set up in Singapore, they have been using traditional metrics (as follows) to measure success:
-Daily Sales per outlet
-Number of customers per outlet
-Average sales amount per outlet
-Sales per product
Based on the above mentioned traditional metrics, 4FINGERS’ marketing division has come up with various product mixes to upsell and cross-sell their products, without knowing which are the right products to upsell and cross-sell to increase the probability of customers making additional purchases. Hence, with the help of our team, 4FINGERS’ marketing division hopes to be able to market and offer a more targeted and hence appealing product mix to their specific customers segments depending on the location of the outlet, and ultimately generate high sales revenue at each outlet.
According to Statistics Singapore’s 2016 Business Expectations report, the turnover of restaurants decreased by 11.9% within the last year while fast food outlets increased from 5.0 -7.5%. With the help of our team, 4FINGERS can potentially re-position themselves in the F&B industry in order to capture the largest market segment.
