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كواليس نجاح هاف مليون | بودكاست سوالف بزنس

إذاعة ثمانية・70 minutes read

The Half Million cafe chain, led by CEO Sohyb Alblushi, focuses on quality control, customer satisfaction, and steady expansion, all while maintaining affordable prices and unique customer experiences. The company plans an ambitious expansion to 100 branches in Saudi Arabia by 2025, with a strong emphasis on internal quality standards, operational efficiency, and employee development to drive growth and success.

Insights

  • Half Million maintains its Latte price at 10 SAR despite VAT changes, showcasing a commitment to consistency and customer satisfaction.
  • Sohyb Alblushi's strategic leadership led Half Million to rapid expansion, emphasizing the importance of effective leadership in organizational growth.
  • Quality control, operational excellence, and customer feedback are foundational to Half Million's success, highlighting the significance of these factors in maintaining brand reputation and growth.

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Recent questions

  • How does Half Million ensure quality control?

    Through real-time monitoring, audits, and customer feedback.

  • What factors contribute to Half Million's success?

    Operational excellence, team effort, and strategic vision.

  • How does Half Million handle customer complaints?

    Through a dedicated customer service team and quality monitoring.

  • What expansion strategy does Half Million follow?

    Building a strong work team before increasing branches.

  • How does Half Million differentiate itself in the market?

    By offering product quality, affordable prices, and unique customer experience.

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Summary

00:00

"Half Million: Latte Price Stability and Growth"

  • The price of Latte in Half Million has remained at 10 SAR since its establishment, even after the VAT increased from 5% to 15%.
  • The company operates around 20 screens in a room resembling a 911 center, monitoring branches through CCTVs 24/7 to ensure compliance.
  • Branches of Half Million double annually, with 9 branches in 2020, 18 in 2021, and 34 in 2022, following a consistent growth pattern.
  • Sohyb Alblushi, CEO of Half Million, joined the company when it had 9 branches and played a pivotal role in its rapid expansion to 43 branches.
  • The decision to sponsor Al Shabab over Al Hilal was primarily a business move, prioritizing the company's interests over personal preferences.
  • The sponsorship of Al Shabab was for three seasons, with a strategic approach to marketing and brand development over the duration.
  • Sohyb's appointment as CEO was based on his operational expertise and strategic vision, aligning with the company's growth goals.
  • The success of Half Million is attributed to hard work and dedication, with a focus on operational excellence and team effort.
  • The company's association with Abdullah Alrajhi sometimes leads to suppliers inflating prices, causing challenges despite the perceived advantages.
  • Financial sustainability is maintained through internal cash flow and external funding sources, without significant injections of capital in recent years.

13:58

"Quality-driven company prioritizes team and consistency"

  • Company prioritizes self-sufficiency for success, aiming to avoid projects that drain resources without growth.
  • Expansion strategy focused on building a strong work team before increasing branches.
  • Emphasis on quality control as a key factor in the success of restaurants and cafes.
  • Quality assurance based on experiences in industrial engineering and previous work in quality control.
  • Maintaining consistent taste and quality across branches crucial to retain customers in a competitive market.
  • Example of a failed restaurant due to quality fluctuations and poor service despite initial popularity.
  • Implementation of a Contact Ratio KPI to monitor customer complaints relative to orders for quality control.
  • Customer complaints tracked through various platforms like social media and Half Million App.
  • Customer service team established to handle complaints and monitor branch performance through cameras.
  • Regular meetings held to address customer feedback and ensure quality standards are maintained across all branches.

27:25

Quality Control Measures in Branch Operations

  • Complaints are divided into 11 categories, including product quality, service, team treatment, app issues, and maintenance.
  • Details are categorized to avoid overwhelming recipients with lengthy information.
  • Weekly meetings are held to monitor quality, with key performance indicators (KPIs) set across three categories.
  • The quality team focuses on visits rather than reports to address issues promptly.
  • The team has the authority to halt production if quality concerns arise, emphasizing immediate action.
  • A "VAR" room with 20 screens monitors branches 24/7, allowing for real-time issue resolution.
  • Quality officers conduct audits at branches, categorizing issues as critical, major, medium, or minor.
  • Branch locations are chosen based on population, traffic, and neighboring brands, with drive-through branches proving successful.
  • Drive-through branches require approval from municipalities and are increasingly popular in the market.
  • Branch size is determined by a root cause analysis, with specific criteria for frontage and equipment placement to ensure operational efficiency.

42:16

Adapting Cafe Success Amid Market Changes

  • Opening a specialized cafe no longer guarantees success due to increased competition and changing market dynamics.
  • Success in the cafe industry now depends on adapting to client needs and market changes.
  • Failure to innovate and update products can lead to the decline of even well-established brands.
  • Rapid changes in regulations and procedures by various government entities pose challenges to cafe owners.
  • Non-compliance with regulations can result in hefty fines and impact profitability.
  • Quality control is crucial in maintaining customer loyalty and satisfaction.
  • Reliance on delivery apps can significantly impact a cafe's business model and profitability.
  • Increasing prices on delivery apps to compensate for their high margins is a common strategy among cafes.
  • Investing in physical branches and maintaining affordable prices are key values for cafe success.
  • Providing alternative ordering options like pick-up through a dedicated app can enhance customer experience and boost sales.

56:11

App boosts sales with convenience and quality.

  • The app allows clients to order even in the drive-through, emphasizing convenience.
  • Success of the app is attributed to branch availability and daily product consumption.
  • Frequency of client visits is crucial for business success.
  • Some clients use the app multiple times a day, enhancing sales.
  • Three core values offered to clients: product quality, affordable prices, and unique customer experience.
  • Yearly product plan includes seasonal releases like Mojito or Iced Tea for summer.
  • Market trends influence product selection, like the popular Matcha.
  • Products undergo rigorous testing and may be halted if quality or supplier reliability is compromised.
  • In-house roasting of coffee and baking of pastries ensures quality control and cost efficiency.
  • Marketing strategies include unique ideas like Half Million Boats and sponsorship of events like Riyadh Season.

01:10:11

Half Million Cafe: Quality Hiring and Promotion

  • The hiring process at Half Million involves selecting only two candidates from every ten for the branches team, focusing on quality and brand representation.
  • Employees are chosen based on criteria like speech, manners, and experience in the field, with a focus on maintaining high standards.
  • Training for Cashiers, Baristas, and Cleaning staff includes product knowledge, client handling, and marketing new products, with a test at the end of the program.
  • Cashiers undergo a five-day training program before moving to the branch, with the opportunity for promotion to Barista after six months.
  • Employees progress from Cashier to Barista to team leader and eventually branch manager, with training and evaluations at each stage.
  • The turnover rate at Half Million is lower due to clear career paths and efforts to create a comfortable working environment.
  • Branch managers are evaluated quarterly based on employee feedback, with bonuses tied to this feedback to ensure accountability.
  • Factors like good manners, flexible working hours, and proximity to employees' homes contribute to employee retention.
  • Half Million emphasizes promoting from within, with employees from branches moving into management roles after gaining experience.
  • In the competitive cafe market, Half Million views all coffee providers as competitors, with a focus on product quality and customer preferences influencing sales.

01:24:07

Saudi Cafe Chain Expands Globally with Quality

  • Saudi clients prefer cold drinks, particularly over coffee, with some cafes offering drinks with numerous ingredients that are more like desserts.
  • Every two months, a "Brand Health" study is conducted in Saudi Arabia, involving random samples from Saudis, Arabs, and Asians in different regions to measure brand awareness, which has increased from 40% to 60% since January 2022.
  • Customer satisfaction is measured through CSAT immediately after the experience, with a specialized team assessing aspects like branch design, staff attitude, products, parking, and response time, resulting in an average satisfaction rate of 94%.
  • The company plans to expand to 100 branches in Saudi Arabia by the end of 2025, currently operating in 9 cities with a goal of reaching 20 cities and entering the B2B sector by exporting high-quality coffee at reasonable prices.
  • A branch in London was opened in 2019 in Harborne but later relocated to Oxford Street at the end of 2022 for brand positioning, aiming to provide quality coffee comparable to Saudi cafes that outshine global brands in terms of service and products.
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