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Werafoods

Creating digital ecosystem in hospitality segment

India, Maharashtra
Market: Internet and IT, Food industry
Stage of the project: Operating business

Date of last change: 22.09.2021
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Idea

1: Creating digital ecosystem for hospitality segment
2: We are 360° technology & marketing solutions for restaurants, Cafe, Bakery, QSR, lounges, pubs& bars, cake shop, cloud kitchen etc.

Current Status

1: Customers: 1600+ , 1200 retained & paying customers. 85% of customer retention. We have all known big brands with us.
2: Average 40 to 70 outlets add every month.
3: Average Sale per deal : Rs 6999 to Rs 9000/-

B : ORDERS : We get 10,000,00+ Orders every month on our software from third party aggregators & online ordering application.

Market

The Indian restaurant and food service industry comprises two distinct segments: organised and unorganised. The organised segment accounts for about 30-35% of the industry (Restaurants are listed on Swiggy & Zomato), while the unorganized segment accounts for the remaining 65-70%. The organised segment is characterised by an organised supply chain with quality control and sourcing norms with multiple outlets having standardised designs. The unorganised segment lacks technical standardisation and a structured supply system or business practices. Quick services restaurants (QSRs) and casual and fine dining restaurants account for about 75-80% of the organised segment, followed by cafes & bakery and pubs, clubs, bars, and lounge (PBCL) accounting for about 8-10% and institutional catering and kiosks with 13-15% share in the organised market. Going forward, CARE Ratings expects the restaurant and food service industry to register a growth of about 10.4% CAGR for the next 5 years between 2018 and 2022 to reach Rs 5.5 trillion by 2022 (source care ratings)
1: As per above research on the market and as per current trend (source Swiggy & Zomato ) there are 264000 restaurants in 590 cities in India using online ordering & internet ( 30-35% organised segment let us considered to be 100% ). this shows that restaurants have become little organized and ready to change.
Out of 275000 (Which is 100%)
1: 25% Restaurants, Café, Bakery, QSR, lounges, pubs& bars, cake shop, cloud kitchen are using cloud POS software and have this online ordering system in place with other companies or competitors.
2: 60% Restaurants, Café, Bakery, QSR, lounges, pubs& bars, cake shop, cloud kitchen are using offline POS software and dependent on third party food aggregator for their online ordering system costing them 25% commission on each order. There is a huge scope here.
3: 15% food outlets are still using manual bill machine and not really on any food aggregators platforms. There is a scope here.


Problem or Opportunity

1: High dependency and huge cost in terms of commission to 3rd Party Online Ordering food aggregators Platform
2: Unable to check sale and pilferages done by cashier or manager on POS, manual entries of online ordering of third-party food aggregators on POS, lots of human error while punching the orders during busy time. due to human error order entry get wrong, delay in acceptance of orders and loss in revenue. non matching of offline & online revenue.
offline inventory & reports , can not manage centralize for multiple outlets.
3: For Restaurants, high dependency on waiters and for

Solution (product or service)

1: Online Ordering application with Delivery & payment gateway.
2: Wera Cloud POS : Point-of-Sale Operations (moving beyond just billing), Inventory or stock management, Online Menu updates, Integrations with third party food aggregator ( swiggy, Zomato ), plan to provide one complete solutions with software + hardware with reasonable price.
3: Merge : Providing Third party food aggregator AP's to other POS companies to help manage orders. help & save small size POS companies business till the time they survive.
4: Online Table Reservation
5: Digital menu
6:Loyalty

Competitors

1: There are few alternative companies such as Urbar pipper, Pet Pooja, & Lime tray.

2: 25% of Restaurants, Café, Bakery, QSR, lounges, pubs& bars, cake shop, cloud kitchen are using cloud POS software and have online ordering system in place with these companies or competitors.

Advantages or differentiators

Competitors such as Urban pipers, Lime tray, Pet pooja
Wera Advantages & Differentiations:
1: Product Differentiation: features, performance, efficacy, meeting specifications, durability, reliability & warranty.
2: Service Differentiation: Ordering ease, delivery, installation, customer training, customer consulting & other miscellaneous services.
3: Distribution Differentiation: Channels of distribution is an effective means of differentiation. immediate access to expertise, and greater ease of ordering, and higher levels of customer or technical service.
Products typically moves through two stages of distribution including master channel partner, local dealers, and retailers.
4: Relationship Differentiation: Differentiation such as high levels of service, superior product quality, or performance. We provide and demonstrate competence, courtesy, credibility, reliability, and responsiveness. ensuring that the product is delivered on time, technical service representative is a trusted member of the customer’s team while resolving any issues quickly and accurately.
5: Image/Reputation Differentiation: sales reps have a strong technical education or background, and our products are positioned as being leading edge. Due to less budget in advertising, we have a customer-driven strategy, we Pick a handful of customers that can drive the success of our business & then focus all of our budget on these companies. Give them exactly what they want, and do it better than anyone else can.
6: Price Differentiation: Successfully competing on price requires recognition that every customer has a different price they would be willing to pay for your product.

Finance

1: Average Sale per deal : Rs 9999/- to Rs 15000 per products / services
Option 1
Software & Hardware can be sold as package in subscription price for eg Hardware + Software = Rs 15k to 25k for the first year (Software cost 5000 per annum + 20000 per annum).
2: Targeting 1,00000 restaurants in 5 years @ Rs 10000 per product / services.
3: Estimating Revenue in 5th year is Rs 70cr / $9mn

Business model

1: SaaS model: Subscription fees is charged yearly for all the products.
2: Grow faster by third party online food aggregator API's Integration & Alignment/ Partnership with other POS Market Players and providing value added service to their clients.
3: Average Single Product Value – Rs 10000 to 15000/- per annum. Subscription fees is charged @ Discounted price to compete the market & sell the product faster.
4: As of now we have channel partners in other cities ( Pune, Bangalore, Goa, Andhra Pradesh etc. ) except Mumbai who are selling our products.

Money will be spent on

To achieve our goals, we need to work on following thigs:
1: Need to hire centralize Technology team to continue develop the product & support the current products.
2: Need to hire centralize technical Support team to give online customer support city wise & offline support team city wise if we are planning to sell hardware along with software.
3: Need to hire Operations team for onboarding, product training & delivery.
4: Need to hire sales & marking team in major cities, Each city will be divided by zone and each zone will have sales team to target market.
5: Marketing: focus on below marketing
A: Digital-print- social media (Instagram, Facebook, YouTube, linked- in) paid marketing, google advert marketing targeting city wise.
B: Products listing on all leading paid third-party websites to be more visible & to sell.
C; Product marketing via emailing, bulk WhatsApp, sms,
D: Offering products on discounted price or on free trials for them to use it and sell.
E: Take part in hospitality exhibitions, business events, seminars
F: Paid news articles on products & company progress & achievements
G: blogs
6: Need to hire channel head for Liaisoning & partnership with other POS & delivery partners.
8: Need to hire corporate HR , Admin & Training team

Offer for investor

We will say at the meeting or during negotiation.

Team or Management

Risks

1: A new competitor in our home market
2: Price war with competitors
3: A competitors has new, innovative products & services
4: Competitors had superior access to channel of distribution
5: Market for retail software is very competitive
6: Market demand :
New technologies, services, ideas, IT Developments, shift in consumer taste
Obstacles :
Sustainable financial backing, insurmountable weakness, competitors’ intensions, new regulations, increase trade barrier, Emergence of substitute products

Incubation/Acceleration programs accomplishment

no

Won the competition and other awards

Wera is one of few software companies in India is recognized as premium client by Swiggy & Zomato and having complete order & cloud menu access.

Invention/Patent

Trade Mark No. 3754620

Photos

Photo 1 - Creating digital ecosystem in hospitality segment
Photo 2 - Creating digital ecosystem in hospitality segment

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video