New Maturity Model Can Fire Up Restaurant Operations

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With rapid decline in cost of sensors and meters, restaurant automation business cases have become attractive. This document introduces the CIIA model for multi-year transformation journey and a mechanism to deal with the electrical, temperature, mechanical and operational data.

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NEW MATURITY MODEL CAN FIRE UP RESTAURANT OPERATIONS www.wiproecoenergy.com ANALYZE. ACHIEVE. ACCELERATE

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2 T able of Contents 03 .................................................................................... Abstract 04 .................................................................................... What is in what is not 04 .................................................................................... Introducing CIIA – for More effcient operations 07 .................................................................................... How the CIIA Model Makes You Future-ready 07 .................................................................................... About the Author

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With rapid decline in cost of sensors and meters restaurant automation business cases have become attractive. However restaurant operators fnd it diffcult 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 effciencies improving guest experience while expanding bottom line. This paper explains the added value that the CIIA model can create for restaurants.

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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 proftability 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 – for More effcient operations The CIIA Model envisages 4 stages of a restaurant’s maturity to manage its BOH assets and leverages the resultant data to drive effciencies. 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 800000 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 effciencies Energy savings potential and overall operational savings potential Typical investments required and the respective ROI

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5 ANALYZE. ACHIEVE. ACCELERATE Restaurant Energy Operational Capability Model Site Fire-up/Fire-down Automation • Basic automation • Lighting and Fans • Advanced automation • Lighting Fans Key Kitchen Equipments • Advanced automation • Lighting Fans and Key Kitchen Equipments • Detection of override patterns and awareness training plans to prevent it • Advanced automation • Lighting Fans and Key Kitchen Equipments • Detection of override patterns and awareness and training plans to prevent it • HVAC remote management • HVAC remote management • HVAC remote management • Planning of setbacks • Mode mismatch and override pattern detection • Alignment of crew behaviour - Change management • HVAC remote management • Planning of setbacks • Mode mismatch and override pattern detection • Crew behaviour Change management • Equipment issue detection and rectifcation Refrigeration Management • ------------------ • Walk-ins Temperature Monitoring • Walk-ins Temperature Monitoring • Compliance Tracking network wide improvements • Walk-ins Temperature Monitoring • Centralized compliance tracking • Equipment issue detection and rectifcation Energy Management • ------------------ • Energy Monitoring – Mains HVAC Lighting • Energy Monitoring – Mains HVAC Lighting • Energy savings measurement and verifcation • Continous operational energy savings opportunity identifcation • Energy Monitoring – Mains HVAC Lighting • Energy strategy planning • Intelligent equipment maintenance repair overhaul replacement decisions Leveraging Centralized Web-based Platform • Exception Deviation reporting • Actionable intelligence to crew and technicians • Energy consumption tracking • Temperature compliance • Actionable intelligence to crew technicians • Energy consumption tracking • Temperature compliance • Enterprise wide visibility Restaurant Benchmarking • MIS – Energy Temperature Billing etc • Actionable intelligence to crew and technicians • Energy consumption tracking • Temperature compliance • Enterprise-wide visibility Restaurant Benchmarking • MIS – Energy Temperature Billing etc Centralization of Energy Analytics Operations Support Teams • ------------------ • ------------------ • Setting up of a Level 1 helpdesk for deviations detection across network Change Management Trainings Communication • Central Analytics Energy Services for ongoing Energy Saving Strategies ESS identifcation Energy Savings Strategy Effectiveness Analysis • L1 helpdesk • Central Analytics Services • Setting up of a centralized Level 2/Level 3 SME support for remote resolution for reduced dispatches and truck rolls • 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

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6 The four maturity levels are: Level 1 Maturity – 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 fre up/fre 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 – INTELLIGENT The next level of maturity involves automation of fre up and fre down of key kitchen equipment based on the predefned 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 justifed 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 – 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 profles 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 effciency opportunities. Level 4 Maturity – AGILE In this stage the operator is effectively able to correlate the information from multiple data sources — business data energy data operational data of assets maintenance data etc. to drive agility and effciency across multiple functions. The data convergence enables decisions like: which make and model of a fryer as a lower cost of ownership based on feld 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 fow 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 fgures are based on Wipro’s experience of running pilots projects. The journey across the levels doesn’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 redefne internal process fows which would enable the data to be consumed across the organization in a timely manner so that business benefts are accrued. INTELLIGENT INTEGRATED AGILE CONTROLLED 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

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7 ANALYZE. ACHIEVE. ACCELERATE Parminder Singh – Practice Manager Hospitality Wipro EcoEnergy Parminder Singh heads Wipro EcoEnergys 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 PL for this segment. He holds an undergraduate degree in Mechanical Engineering and is a post-graduate in Business Administration. HAPS Dhillon – Practice Head HOTREC and Banks HAPS Dhillon heads Wipro EcoEnergys practice that is focused on creating Energy Management and Sustainability solutions for the hospitality and banking sectors. As part of Wipro EcoEnergy’s Senior Leadership Team HAPS is responsible for global PL for these segments. He has extensive experience in operational cost reduction Analytics Energy Effciency 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: • Help you compare on a common industry framework for technology adoption • Help assess current maturity levels with respect to technology adoption • Offer the ability to validate whether or not you are getting the desired ROI from the existing investment • Enable a structured multi-year technology investment planning • Offer a shared understanding of the roadmap across facility management fnance and business functions How the CIIA Model Makes You Future-ready

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IND/BRD/MAY 2015–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 effcient solutions to our clients that re duce their carbon footprint energy usage recover avoidable energy losses. Wipro EcoEnergy’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 North America 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.infowipro.com About Wipro EcoEnergy © WIPRO LTD 2015

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