What we talked above is not “Castle in the air”, we have more than 30 successful practices in China, “Shaanxi Normal University” (SNNU) is our first practice and has been running for almost 4 year, serving over 3000 students within 40 minutes. Each smart scale can serve up to 10 people in one minute at peak time! We take “Xi’an Jiaotong University (XJTU) prototype restaurant” as an example here, and it has been put into practice from September 2017.
We increased the average number of the customer from 150 to 600, and the number is keeping increasing. The average customer spending increased more than 50%, while the gross margin maintains a high level, some assortment can even reach 44% of gross margin. As we can see from the graph, the average spending of the customer is much higher than before, which increased from ¥10 to ¥17 at beginning and then maintain stable to ¥15. The logic behind the variation of customer spending is pretty simple. Before implementing our system, the food provided can’t attract the interests of customers, people were willing to spend more money to exchange a better choice. After applying our system, people are attracted by the new method, At their first visit, they don’t know how to pick the best combination for themselves, which lead to the extra cost and waste. As customers keep visiting our restaurant, they started to have a better understanding of their personal need and the value of the restaurant, they become rational. They may not know the Theory of Consumer Choice, but their behavior reflects that theory. After knowing the best combination, which brings them the highest utility, they will pick the dishes that bring them most marginal value, and get rid of those non-value added dishes. This is the logic behind the magic.
These graphs above tell us the differences between high-frequency customer and low-frequency customer. We can clearly see the rationality in the graph. As customer will get a report of their nutrition ingestion, they can modify the amount of food they eat. By doing that, people can change nutrition ingestion, if they want to get more protein, they can increase the portion of soybean, chicken, and beef. They can organize the portion according to their budget. Beef is more expensive than chicken and chicken is more expensive than soybean, there is always a way that customer can satisfy their nutrition target, with a proper budget. Our statistical data clearly reflected the trend that people are moving towards a more healthy combination. From October 2017 to August 2018, in the daily lunch of customer, the portion of fat decreased from 44% to 38%, the portion of protein increased from 15% to 18% and the portion of carbohydrate increased from 41% to 45%.