Business Capability Mapping for Food Services a

1. Creating Business Capability Maps for Food Services and Restaurants' Success www.capstera.com 1

2. Transform your food service operations from fragmented to focused with strategic capability mapping. In today's competitive food service landscape, restaurants ▪ face unprecedented challenges—from digital disruption and changing consumer behaviors to supply chain volatility and workforce shortages. Success depends on serving great food and understanding and optimizing the complex web of capabilities that drive the entire enterprise. A well-structured Business Capability Map provides restaurant ▪ leaders with the essential blueprint for strategic decision- making, technology investments, and organizational transformation. By clearly identifying and categorizing what your business does—independent of how you do it—capability mapping illuminates the path to operational excellence and competitive differentiation in the dynamic food service marketplace. www.capstera.com 2 2

3. The Foundation of Restaurant Excellence 1 Business Capability Maps provide a comprehensive view of what your organization does, creating a stable foundation for strategic decisions even as processes, technologies, and structures evolve. • Strategic Clarity: A capability map cuts through operational complexity to provide a clear picture of your restaurant's essential functions, enabling more focused strategic planning and resource allocation. • Common Language: Capability mapping establishes a shared vocabulary that bridges the communication gap between business leaders, technology teams, and operational staff. • Transformation Framework: The capability map becomes the cornerstone for change initiatives, ensuring that improvements target capabilities with the highest strategic impact. • Performance Visibility: Mapping capabilities creates the foundation for measuring performance across the enterprise, highlighting areas of excellence and opportunities for improvement. www.capstera.com 3

4. Components of an Effective Capability Map 2 A comprehensive restaurant capability map includes several key structural elements that bring clarity to organizational complexity. • Capability Hierarchy: Organizing capabilities into primary, supporting, and enabling categories creates a logical structure that shows how discrete functions combine to deliver customer value. • Capability Definitions: Clear, concise definitions for each capability ensure consistent understanding across the organization and prevent overlaps or gaps. • Current State Assessment: Evaluating the performance and maturity of each capability provides critical insight into strengths, weaknesses, and improvement priorities. • Strategic Importance: Identifying which capabilities are strategically differentiating versus those that are necessary but non-differentiating guides investment prioritization. www.capstera.com 4

5. Core Customer-Facing Capabilities 3 These capabilities directly shape the guest experience and represent the primary value proposition of food service businesses. • Menu Management: This capability encompasses the design, pricing, and continuous evolution of food and beverage offerings to meet customer preferences while maintaining profitability. • Order Fulfillment: The end-to-end capability to receive, process, prepare, and deliver orders accurately and efficiently across all service channels is fundamental to customer satisfaction. • Dining Experience Management: This capability covers the orchestration of ambiance, service timing, staff interactions, and overall atmosphere that defines the restaurant's brand promise. • Customer Relationship Management: Building meaningful connections with guests through loyalty programs, personalization, feedback collection, and responsive service recovery drives repeat business and brand advocacy. www.capstera.com 5

6. Operational Capabilities 4 Behind-the-scenes capabilities that ensure consistent quality, efficiency, and compliance are critical to sustainable restaurant performance. • Kitchen Operations: This capability includes food preparation, quality control, recipe standardization, and production timing that delivers consistent quality at the required volume and pace. • Inventory Management: The capability to forecast demand, order accurately, receive efficiently, store properly, and minimize waste directly impacts both food quality and financial performance. • Facilities Management: Maintaining cleanliness, equipment functionality, safety standards, and overall ambiance ensures operational continuity and customer satisfaction. • Regulatory Compliance: The capability to monitor, implement, and document adherence to health codes, liquor laws, labor regulations, and food safety standards protects both customers and the business. www.capstera.com 6

7. Did You Know Strategic Alignment: Organizations with well-defined ▪ capability maps are 2.7 times more likely to successfully implement their strategic plans compared to those without structured capability frameworks. (Harvard Business Review, 2023) www.capstera.com 7

8. Digital and Technology Capabilities 5 Modern restaurants require robust digital capabilities to meet customer expectations and operate efficiently in an increasingly connected world. • Digital Ordering: The capability to provide seamless, accurate, and personalized ordering experiences across web, mobile, kiosk, and third-party platforms has become essential in the modern restaurant environment. • Payments Processing: Securely accepting and reconciling diverse payment methods—from traditional credit cards to digital wallets and cryptocurrencies—ensures frictionless customer experiences. • Kitchen Display Systems: The capability to route orders, manage preparation timing, and coordinate production across stations directly impacts food quality and service speed. • Analytics and Business Intelligence: Transforming operational data into actionable insights for menu optimization, labor scheduling, marketing effectiveness, and overall performance is increasingly critical for competitive advantage. www.capstera.com 8

9. Supply Chain Capabilities 6 The complex network of capabilities required to source ingredients and supplies reliably, sustainably, and cost- effectively is fundamental to restaurant success. • Supplier Relationship Management: The capability to identify, evaluate, onboard, and continuously develop supplier partnerships ensures ingredient quality, cost control, and supply continuity. • Procurement Optimization: Strategically sourcing ingredients and supplies with consideration for quality, cost, sustainability, and reliability creates both operational and competitive advantages. • Distribution Management: Coordinating the efficient movement of products from suppliers to restaurant locations with appropriate timing, handling, and documentation prevents stockouts while minimizing waste. • Quality Assurance: Establishing and enforcing standards for ingredient quality, safety, and consistency from farm to kitchen directly impacts the dining experience and brand reputation. www.capstera.com 9

10. Human Capital Capabilities 7 People-focused capabilities are particularly critical in the labor- intensive restaurant industry, where service quality directly correlates with staff engagement. • Workforce Planning: The capability to forecast staffing needs, create optimal schedules, and maintain appropriate coverage during peak and slow periods directly impacts both service quality and labor costs. • Talent Acquisition: Finding, attracting, and hiring team members with the right skills, attitude, and cultural fit is increasingly challenging and strategically important in today's competitive labor market. • Training and Development: Building comprehensive systems for onboarding, skill development, cross-training, and career advancement drives consistency, quality, and retention. • Performance Management: Creating frameworks for setting expectations, providing feedback, recognizing excellence, and addressing performance gaps ensures consistent execution of the brand promise. www.capstera.com 10

11. Financial Management Capabilities 8 Sound financial capabilities ensure that culinary creativity and operational excellence translate into sustainable business performance. • Revenue Management: Optimizing pricing, promotions, table utilization, and channel mix to maximize revenue while maintaining value perception is increasingly sophisticated in multi-channel restaurant operations. • Cost Control: Systematically monitoring and managing food, beverage, labor, and overhead costs while maintaining quality standards protects margins in a low-margin industry. • Capital Planning: Strategically evaluating and prioritizing investments in facilities, equipment, technology, and market expansion ensures optimal allocation of limited capital resources. • Financial Analysis: Developing robust capabilities for budgeting, forecasting, variance analysis, and performance measurement enables data-driven decision-making across the enterprise. www.capstera.com 11

12. Did You Know Investment Impact: Restaurants that prioritize technology ▪ investments based on capability maps achieve 34% higher ROI on their digital transformation initiatives compared to those making technology decisions without this strategic framework. (Deloitte Restaurant Digital Transformation Study, 2024) www.capstera.com 12

13. Marketing and Brand Capabilities 9 These capabilities connect your culinary vision with your target customers and differentiate your concept in a crowded marketplace. • Brand Management: Defining, communicating, and consistently delivering on your restaurant's unique identity and promise creates meaningful differentiation in a competitive market. • Content Creation: Developing compelling visual and narrative content that showcases your food, atmosphere, and values drives engagement across digital and traditional channels. • Campaign Management: Designing, executing, and measuring promotional initiatives that drive awareness, trial, and loyalty requires increasingly sophisticated capabilities. • Community Engagement: Building meaningful connections with local communities through events, partnerships, and social responsibility initiatives creates authentic relationships beyond transactional dining. 13 www.capstera.com 13

14. Innovation Capabilities 10 Systematic innovation capabilities ensure restaurants remain relevant and competitive in a rapidly evolving industry. • Concept Development: The capability to research, design, test, and refine new restaurant concepts or sub-brands enables strategic growth and market adaptation. • Menu Innovation: Establishing structured processes for culinary creativity, testing, costing, and launching new menu items balances innovation with operational feasibility. • Service Model Evolution: Developing and implementing new service approaches—from counter service to full-service to ghost kitchens—allows adaptation to changing market conditions. • Technology Adoption: Building the capability to evaluate, integrate, and optimize emerging technologies ensures you capture competitive advantages while avoiding costly missteps. www.capstera.com 14

15. Strategic Management Capabilities 11 Executive-level capabilities provide direction, alignment, and adaptation for the entire restaurant enterprise. • Strategic Planning: Developing clear, compelling visions of future success and the roadmaps to achieve them ensures that daily decisions align with long-term objectives. • Performance Measurement: Establishing key performance indicators and reporting frameworks that track progress against strategic goals enables course correction and accountability. • Portfolio Management: Managing multiple concepts, locations, or franchise relationships as a coherent portfolio optimizes resource allocation and drives enterprise-wide performance. • Risk Management: Identifying, assessing, and mitigating potential threats—from food safety to cybersecurity to reputation management—protects the business and enables confident decision-making. www.capstera.com 15

16. Benefits of Pre-Built Capability Maps 12 Starting with a pre-built, industry-specific capability map significantly accelerates the mapping process while ensuring comprehensiveness and best practices. • Accelerated Development: Beginning with a pre-built map reduces the timeline from months to weeks, allowing your team to focus on assessment and improvement rather than basic map creation. • Industry Best Practices: Pre-built maps incorporate capabilities that leading food service operations have identified as critical, ensuring you don't miss important functional areas. • Common Taxonomy: Adopting industry-standard capability naming and categorization facilitates benchmarking, vendor communication, and sharing insights across the organization. • Customization Efficiency: Starting with a comprehensive template and then customizing for your specific business model is far more efficient than building from scratch while still ensuring relevance. www.capstera.com 16

17. Did You Know Time Efficiency: Using a pre-built, industry-specific ▪ capability map reduces the development time by 76% on average, allowing organizations to advance to assessment and improvement planning much faster. (Business Architecture Guild Survey, 2023) www.capstera.com 17

18. Implementing Your Capability Map 13 Transforming your map from a static document to a dynamic strategic tool requires thoughtful implementation and ongoing governance. • Stakeholder Engagement: Involving leaders from across the organization in capability definition and assessment creates shared ownership and ensures operational relevance. • Maturity Assessment: Evaluating the current performance and maturity of each capability provides the baseline for improvement planning and investment prioritization. • Technology Alignment: Mapping existing systems and planned investments to specific capabilities reveals gaps, redundancies, and optimization opportunities. • Governance Structure: Establishing clear ownership, review processes, and update protocols for the capability map ensures it remains accurate and valuable as the organization evolves. www.capstera.com 18

19. From Mapping to Transformation 14 The true value of capability mapping emerges when it drives strategic decision-making and organizational transformation. • Investment Prioritization: Using capability performance and strategic importance assessments to guide technology and process improvement investments ensures resources flow to areas with the greatest impact. • Organizational Design: Aligning team structures with key capabilities rather than traditional functional silos improves accountability and reduces hand-off complexity. • Vendor Selection: Evaluating technology solutions based on how they support critical capabilities rather than feature lists leads to more strategic and successful implementations. • Merger Integration: Using capability maps to compare and align organizations during acquisitions or partnerships creates a clear roadmap for successful integration. www.capstera.com 19

20. Takeaway A comprehensive Business Capability Map provides restaurant and food service organizations with the essential foundation for strategic decision-making, technology investments, and organizational transformation. By clearly defining and categorizing what your business does—independent of how you do it—capability mapping creates a stable reference architecture that can guide your enterprise through continuous industry disruption. Whether developed from scratch or customized from industry templates, a well-structured capability map illuminates the path to operational excellence and competitive differentiation in the dynamic food service marketplace. 20 www.capstera.com 20

21. Next Steps 1. Assemble Your Mapping Team: Identify key stakeholders from across your organization who understand different aspects of the business to participate in the capability mapping process. 2. Evaluate Build vs. Buy Options: Consider whether starting with a pre-built industry capability map would accelerate your efforts while ensuring comprehensiveness. 3. Conduct a Capability Workshop: Bring stakeholders together to define, refine, and organize your capabilities into a structured hierarchy that reflects your specific business model. 4. Assess Current State: Evaluate the performance and strategic importance of each capability to identify priorities for improvement. 5. Connect to Strategic Initiatives: Link your capability assessment directly to strategic planning and investment prioritization to drive measurable business outcomes. 21 www.capstera.com 21

22. Capstera is a treasure trove for Business and Enterprise Architects. ▪ Capability Maps for Various Functions and Sectors. ▪ Value Streams ▪ Business Data Models ▪ Insights ▪ Tools, Templates, and Tutorials Stay in touch with Capstera. www.Capstera.com https://www.linkedin.com/company/capstera https://www.X.com/Capstera https://www.facebook.com/capstera Note: Capstera’s products and their contents may differ from the general information offered in these guides.) 22 www.capstera.com 22

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