Hot Palette (Asia Pacific) Pte. Ltd .
"Standardization" needed for Overseas Expansion
Teaching Brand Value with ABILI
In Singapore, a major issue was that store management had become dependent on store managers. With the introduction of ABILI, we are gradually shifting to a system that is less dependent on store managers, and we feel we are making progress in standardizing and improving the quality of store management."
"We hope to use ABILI to provide hospitality that goes beyond our standardized model and takes advantage of individual knowledge as well."
"We hope to use ABILI to provide hospitality that goes beyond our standardized model and takes advantage of individual knowledge as well."
Effects of introducing ABILI during overseas expansion
We interviewed Mr. Yuto Tago, CEO of Hot Palette (Asia Pacific) Pte. Ltd, which supports the overseas expansion of Hot Palette, Inc.. They operate restaurant brands such as "Pepper Lunch". We asked him about the current utilization of ABILI and future prospects, from redesigning business processes to consulting, standardization, and hospitality.
◆Interview◆
Mr. Yuto Tago,
CEO, Hot Palette (Asia Pacific) Pte. Ltd.
Service used:
ABILI Clip
◆Interview◆
Mr. Yuto Tago,
CEO, Hot Palette (Asia Pacific) Pte. Ltd.
Service used:
ABILI Clip
Challenges before and effects of introducing ABILI
- Business process design for IT to address operation issues faced by store managers.
- Through ClipLine's consulting support, we visualized the IT utilization status of stores and headquarters, and designed business processes that would serve as the basis for our digital transformation.
- ABILI Clip's video-based management and interactive communication functions connect stores and headquarters. This is helping us move away from store management relying solely on store managers. In addition, the multilingual translation function improves the efficiency of work instructions.
Maximizing the potential of IT tools and store management
that relies on store managers were urgent issues hindering establishing their position as a fast casual restaurant
Q. Tell us about Pepper Lunch and your current overseas expansion.
Pepper Lunch was established in 1994. At that time, beef was an expensive food, and the brand Pepper Lunch was created with the desire to offer beef at affordable lunch prices. We always strive to create dining spaces that our customers can be comfortable and enjoy.
Overseas, we are currently operating in 15 countries, with three directly managed hubs in Singapore, Hong Kong, and Shanghai, and franchise partners in other countries.
We already use ABILI in Japan, and based on that experience, we decided to start using it overseas.
Overseas, we are currently operating in 15 countries, with three directly managed hubs in Singapore, Hong Kong, and Shanghai, and franchise partners in other countries.
We already use ABILI in Japan, and based on that experience, we decided to start using it overseas.
Q. Please tell us about the important aspects of your overseas store operations.
In our overseas expansion, we are positioning ourselves as "fast casual" in the market. "Fast casual" is defined as a type of business that offers value in terms of price, product/service quality, etc., somewhere between casual and fast food.
We do not take tips, even in countries with a tipping culture, but we place emphasis not only on standardizing our customer service, but also on providing hospitality to customers who visit our restaurants.
We do not take tips, even in countries with a tipping culture, but we place emphasis not only on standardizing our customer service, but also on providing hospitality to customers who visit our restaurants.
Q. Currently you are using the system at your directly managed stores in Singapore. Why did you consider using ABILI and what issues were you facing?
I felt our challenges were largely from IT and the shortage of manpower.
The first is from the perspective of IT. When I was assigned to Singapore in 2023, I sensed that IT was lagging behind. We are now reforming our overall IT system in response to this.
We have a corporation in Los Angeles, U.S.A., where advanced IT is being used, and we are preparing a system that will enable us to use the technology adopted in the U.S. in Asia too.
The second is from the perspective of labor shortages. Looking at Asia as a whole, the degree to which labor shortages are a problem varies. In regions with relatively high income levels in Asia, such as Singapore and Hong Kong, the labor shortage is a serious problem, just as it is in Japan. In Singapore in particular, employee training has been a challenge. Until now, the system has been such that all employee training and communication had to depend on the store manager, resulting in a blurring of quality in store management between the best store managers and the worst store managers.
The first is from the perspective of IT. When I was assigned to Singapore in 2023, I sensed that IT was lagging behind. We are now reforming our overall IT system in response to this.
We have a corporation in Los Angeles, U.S.A., where advanced IT is being used, and we are preparing a system that will enable us to use the technology adopted in the U.S. in Asia too.
The second is from the perspective of labor shortages. Looking at Asia as a whole, the degree to which labor shortages are a problem varies. In regions with relatively high income levels in Asia, such as Singapore and Hong Kong, the labor shortage is a serious problem, just as it is in Japan. In Singapore in particular, employee training has been a challenge. Until now, the system has been such that all employee training and communication had to depend on the store manager, resulting in a blurring of quality in store management between the best store managers and the worst store managers.
Consultants to review business processes at HQ and our stores.
Improved efficiency of business instructions/manager-dependent store operations by utilizing ABILI.
Q. Before introducing ABILI at your stores, we provided consulting services at first. Please tell us about that project.
As I mentioned earlier, our initial task was to promote IT. However, in order to do this, we thought it was important to accurately understand our current business processes and issues. We decided to first ask ClipLine to define the ideal form of our business operations we should be aiming for.
We also asked ClipLine to actually visit our stores in Singapore to conduct a comprehensive review of how the system and forms are being used in the stores and by HQ, so that we could review not only the IT but also the entire business process. Through this project, we created the foundation of our company's current digital transformation plan.
We also asked ClipLine to actually visit our stores in Singapore to conduct a comprehensive review of how the system and forms are being used in the stores and by HQ, so that we could review not only the IT but also the entire business process. Through this project, we created the foundation of our company's current digital transformation plan.
Q. What was the deciding factor for you to introduce ABILI as part of your IT transformation?
There were three major deciding factors.
The first is the ability to check the degree of execution onsite. Until now, we were unable to track who actually did what onsite, and following up was left to the field. However, by using ABILI's dashboard, we are able to visualize how far each staff member understands and is actually getting done. This is one of the major benefits.
The second is the direct connection between HQ and stores. Previously, trainers had to go to the stores to provide onsite training to store managers and employees, but with ABILI, we are now able to communicate directly with them without having to go to the stores thanks to the videos and interactive communication functions. By collecting videos from each staff member, the convenience of being able to check the contents at HQ without having to visit the store is significant.
Third is the ability to digitize paper manuals. In Singapore alone, there are people of various ethnic groups living in the country. The official language is English, but in fact there are many employees who mainly speak Chinese, so the use of paper manuals required frequent language translations, which placed a heavy burden on us.
By using ABILI, not only can non-verbal actions and operations be translated into manuals without omission, and employees can be properly trained, but it is also possible to efficiently create manuals that can be used by various employees through the multilingual translation function. In the future, when we open stores in regions such as Indonesia and Vietnam, we can immediately convert content to other languages. This will help us as we expand overseas and open new stores.
The first is the ability to check the degree of execution onsite. Until now, we were unable to track who actually did what onsite, and following up was left to the field. However, by using ABILI's dashboard, we are able to visualize how far each staff member understands and is actually getting done. This is one of the major benefits.
The second is the direct connection between HQ and stores. Previously, trainers had to go to the stores to provide onsite training to store managers and employees, but with ABILI, we are now able to communicate directly with them without having to go to the stores thanks to the videos and interactive communication functions. By collecting videos from each staff member, the convenience of being able to check the contents at HQ without having to visit the store is significant.
Third is the ability to digitize paper manuals. In Singapore alone, there are people of various ethnic groups living in the country. The official language is English, but in fact there are many employees who mainly speak Chinese, so the use of paper manuals required frequent language translations, which placed a heavy burden on us.
By using ABILI, not only can non-verbal actions and operations be translated into manuals without omission, and employees can be properly trained, but it is also possible to efficiently create manuals that can be used by various employees through the multilingual translation function. In the future, when we open stores in regions such as Indonesia and Vietnam, we can immediately convert content to other languages. This will help us as we expand overseas and open new stores.
Q. How is the process of introducing ABILI at your stores in Singapore?
As I mentioned earlier, a major issue in Singapore was that store management had become dependent on store managers. With the introduction of ABILI, we are gradually shifting away from this, and I feel that we are making progress in standardizing and improving the quality of store management.
In addition, as we proceed with the implementation, we are naturally faced with situations that we did not initially anticipate, but ClipLine has responded flexibly and sincerely to these situations.
In addition, as we proceed with the implementation, we are naturally faced with situations that we did not initially anticipate, but ClipLine has responded flexibly and sincerely to these situations.
We will continue to utilize ABILI, and provide hospitality
where individuality comes to life while achieving standardization.
Q. What do you want to achieve with ABILI in the future, and what is your vision?
We believe there are two major steps.
The first is to properly achieve the standardization required of a chain store. We operate in 16 countries around the world, including Japan, and we believe that our mission as a chain is to provide the same quality of service and products at all of our stores. For this reason, we would like to pursue standardization using ABILI to the fullest extent.
Additionally, in order to establish our position as a "fast casual" restaurant, we will enhance our hospitality and create an environment in which store employees can work efficiently through the use of ABILI.
Specifically, we would like to use ABILI to spread our management philosophy. Our philosophy is to "bring smiles to the world through food that can only be found here. We believe that it is most important to instill this management philosophy in our employees working overseas, so that they understand the importance of hospitality and the services we should provide.
Our company name comes from two words: "Hot," meaning we want to be a company of passionate and enthusiastic people, and "Palette," a tool to mix paints. The name "Hot Palette" was chosen because we want to be a company where various personalities can mingle to create new personalities and values.
Therefore, after achieving standardization, we believe that hospitality that takes advantage of individuality should be the next step. We believe that there should be a variety of personalities and forms of service, as long as we bring smiles to the customers' faces and properly communicate with them.
The first is to properly achieve the standardization required of a chain store. We operate in 16 countries around the world, including Japan, and we believe that our mission as a chain is to provide the same quality of service and products at all of our stores. For this reason, we would like to pursue standardization using ABILI to the fullest extent.
Additionally, in order to establish our position as a "fast casual" restaurant, we will enhance our hospitality and create an environment in which store employees can work efficiently through the use of ABILI.
Specifically, we would like to use ABILI to spread our management philosophy. Our philosophy is to "bring smiles to the world through food that can only be found here. We believe that it is most important to instill this management philosophy in our employees working overseas, so that they understand the importance of hospitality and the services we should provide.
Our company name comes from two words: "Hot," meaning we want to be a company of passionate and enthusiastic people, and "Palette," a tool to mix paints. The name "Hot Palette" was chosen because we want to be a company where various personalities can mingle to create new personalities and values.
Therefore, after achieving standardization, we believe that hospitality that takes advantage of individuality should be the next step. We believe that there should be a variety of personalities and forms of service, as long as we bring smiles to the customers' faces and properly communicate with them.
Q. Lastly, is there anyone you would recommend ABILI to like companies that are expanding overseas or considering doing so?
I would recommend ABILI to companies that want to utilize their know-how in opening stores in Japan to accelerate their overseas expansion.
ClipLine has a strong hands-on support system, so we are confident that by utilizing ABILI when moving forward with our overseas expansion, we will be able to successfully utilize its knowledge.
In addition, by creating video content on ABILI, we will be able to create business manuals and policy instructions that can be understood by those who see them, even if they do not fully understand the language. If English or Japanese narration are used, they can be translated using the multilingual function, so that operations manuals and instructions can be efficiently tailored to each country.
Because of these reasons, this service is ideal for companies that are considering opening overseas stores in the future, or want to rebuild/grow overseas stores that are currently open.
ClipLine has a strong hands-on support system, so we are confident that by utilizing ABILI when moving forward with our overseas expansion, we will be able to successfully utilize its knowledge.
In addition, by creating video content on ABILI, we will be able to create business manuals and policy instructions that can be understood by those who see them, even if they do not fully understand the language. If English or Japanese narration are used, they can be translated using the multilingual function, so that operations manuals and instructions can be efficiently tailored to each country.
Because of these reasons, this service is ideal for companies that are considering opening overseas stores in the future, or want to rebuild/grow overseas stores that are currently open.
Store Management for Overseas Expansion
ABILI Clip for business process improvement
ABILI enables two-way communication from HQ to the field and reduces the workload of middle-level management. Video is also used to digitally transform training for new employees and OJT curriculum.
While securing man-hours for store management, which is important for store quality and employee satisfaction, digital support for each and every frontline staff member, the point of contact that determines the value provided to customers, will improve sales and the customer experience.
Click here to download the overview document (Japanese only) that summarizes case studies and fee structure, etc. of Hot Palette (Asia Pacific).
While securing man-hours for store management, which is important for store quality and employee satisfaction, digital support for each and every frontline staff member, the point of contact that determines the value provided to customers, will improve sales and the customer experience.
Click here to download the overview document (Japanese only) that summarizes case studies and fee structure, etc. of Hot Palette (Asia Pacific).
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