Koufu's Industry Transformation Map Review - Singapore Foodservice

This report provides a comprehensive review of Koufu's strategic response to Singapore's Industry Transformation Map (ITM) for the foodservice industry. It examines Koufu's business strategy, which centers on leveraging technology such as self-ordering systems and tray-return robots to enhance efficiency and reduce labor costs. The report analyzes Koufu's targeted customer base and its product offerings, primarily focusing on freshly brewed coffee and efficient customer service. It explores the impact of the ITM on Koufu's workforce planning, emphasizing the need for innovation, technology adoption, and employee value addition. The report also discusses the implications of changing labor demographics in Singapore on Koufu's operations, including the need to adapt to an aging workforce and incorporate youth into its workforce. Finally, the report proposes a workforce framework for Koufu, considering both internal and external factors to create an efficient workforce system. The analysis highlights Koufu's efforts to align its strategies with the government's initiatives to boost the foodservice industry's productivity and competitiveness.

Running head: KOUFU’S INDUSTRY TRANSFORMATION MAP REVIEW 1
Koufu’s Industry Transformation Map Review
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Koufu’s Industry Transformation Map Review
Introduction
Aiming to optimize and exploit the growing food service industry in Singapore,
Koufu is determined to increase its investment in assets and resources that may expand its
local and regional shops. Koufu operates as a Singaporean coffee shop that has embraced the
growing technology translates reduced operational and labour costs to increased revenues and
efficiencies. The coffee service provider is poised to benefit from the Industry
Transformation Map (ITM) proposed by the Singaporean Ministry of Trade and Industry.
The Ministry of Trade recognizes that the foodservice industry contributes a significant 0.8%
of the country's growth domestic product and employs an estimate of 160,000 citizens. The
Ministry aims at providing an outline of effective strategies that may function by boosting
companies and firms in the foodservice sector to increase productivity, add value to their
employees, innovate and transform their business formats and expand their ventures
internationally. This paper investigates how Koufu is poised and determined to optimize the
government's initiative to help companies in the foodservice industry sector. As a potential
beneficiary of the government's initiative to boost and improve the food industry sector,
Koufu is poised to align its employees’ activities, practices, and demographics as well as its
management's business initiatives, strategies, and frameworks to suit the anticipated growth
in the foodservice industry. The paper examines, investigates and discusses existing practices
and strategies to adapt to the anticipated inevitable future. The paper also proposes
frameworks and actions that could help the ambitious coffee provider plan and adapt to future
challenges. The paper's concise conclusion will serve to summarize the key points discussed
throughout the research review paper.
Koufu’s Business Strategy, Targeted Customers, and Products and Services
Koufu’s business strategy centres on tapping the new technological developments to
improve its efficiency in the production of services and also to reduce its labour costs. In its
activities, Koufu employs self-ordering systems and tray-return robots to increase its service
efficiency. In the Koufu coffee shop, customers engage with digital self-order systems where
they are needed to make orders and pay through digital equipment. Koufu’s employment of
digital self-service mechanism facilitates quick services and increased efficiency (Liu &
Price, 2011). In their study, Liu and Price revealed that the use of self-service systems in
coffee shops can be attributed to the growth of revenues due to increased efficiency.

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According to Canora & Rench (2015) assert that self-service coffee and snack vending
machines and systems are characterized by higher efficiencies attained by allowing customers
to serve themselves. In Koufu, the automated self-service system enables the customers to
make orders and make service for themselves. Moreover, Koufu also employs tray-return
robots to help its employees to collect trays from the coffee shop’s tables and benches. Koufu
follows the steps of various health centres, train stations, supermarkets, and renowned coffee
shops that have embraced the use of robots in their service provision operations. In their
research paper, Karar, et al., (2019) reveals that the retail sector, healthcare, transport, and
food and beverage sectors had already purchased 10,000 of the Pepper Humanoid robot
model. The customers of the robot model aimed at improving efficiency and easing its
operating activities. Koufu employs the use of robots as its business strategy to increase its
efficiency and reduce operating costs.
Moreover, the company also attempts to reduce operational costs by merging stalls
and using shared kitchens. These strategies enable the company to save labour costs because
available employees can efficiently multitask. For firms, sharing kitchen space facilitates the
saving of operational costs such as rent (Mody, et al., 2019). Moreover, fewer employees
work in merged kitchens and stalls. By sharing its capital assets, the company can save its
resources by significantly reducing its costs.
Although Koufu does not discriminate its customer base, the coffee shop mainly
targets adults and the elderly. The coffee beverage provider recognizes that the main
customers for coffee beverages in Singapore are mainly the elderly. Qian and Xing (2016)
assert that coffee and tea beverages are mainly favored by elderly people. In its attempt to
attract and retain its customer base, Koufu has tried to reduce the technology phobia
experienced by its elderly individuals. Primarily, Koufu strategically employs young talented
individuals to provide efficient products and services to its elderly customers.
Koufu’s primary product is freshly-brewed coffee. The company employs efficient
technology and management practices to provide an enviable customer experience to its
customers. Customers enjoy quality coffee that is served by automated self-service kiosks.
Koufu’s kiosks serve the customers by processing their orders and returning their change.
Therefore, self-service vendors provide ideal service to customers that have never been
served by automated machines. Moreover, the self-service system allows customers to pay
using cashless means, thus reducing inefficiencies faced by customers when they are forced

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to pay using cash transactions. On the other hand, the presence of tray-return robots in Koufu
presents unforgettable experiences to its customers. The idea that a robot can operate to serve
a customer is still exciting to many customers.
Impact of the ITM on the Workforce Planning of Koufu
The strategies and initiatives mapped in the food services ITM aim at improving the
efficiency and productivity of the food services industry. Endorsed by Singapore’s Ministry
of Trade and Industry, ITM aims at mapping out strategies in four key areas namely: the
innovations with new business formats and the transformation of existing business models,
the adaptation of technology that helps in driving productivity for food service production,
value addition and re-skilling employees in the food services sector and internationalizing
Singapore's food service companies. Koufu aims at benefiting from the ITM strategies to
benefit from the positive outcomes anticipated in the foodservice industry.
The first ITM to the foodservice industry focuses on helping hotels, restaurants and
catering shops to design innovative business formats and models. Although Koufu is in the
process of transforming its traditional business model, the coffee service provider is likely to
completely change its business model, especially on the hiring of a new workforce.
Considering that innovation and invention are mainly attributed and associated with young
and talented youths. Innovation in the foodservice industry is a cornerstone of the overall
improvement and growth of the industry in general (Bayadilova, et al., 2020). Courtesy of
their talents, skills, and creativity, the participation of the youth in research and formulation
of new and effective business formats and models (Akom, et al., 2016). To benefit from the
ITM strategy, Koufu must ensure that it employs skilful, creative and innovative youths to
help the company survive in the future. The youthful workforce may help elderly clients to
operate digital machines in Koufu’s numerous coffee shops.
The adaptation of appropriate technology in the foodservice sector as suggested by the
ITM will also have a significant impact on the workforce planning of Koufu. Koufu needs to
increase its human resources in the field of research and technology. The increasing number
of customers in the foodservice industry necessitates individual companies in the sector to
invest in technology research (Kaur, 2017). According to Kanyana et al., (2016), fast-food
restaurants need to prepare for the forthcoming growth in the industry by embracing
appropriate technology and research. Koufu, therefore, is obligated to plan to employ more
staff to deal with technology advancement. For instance, the company is likely to look

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forward to employing computer scientists and information technology (IT) professionals and
experts.
ITM also proposes that companies in the foodservice industry launch value addition
programs to their workers and employees. Considering that the future of the foodservice
industry in Singapore is projected to significantly grow, companies in the industries are
expected to engage in value addition programs. In their study Mahy, et al., (2015) assert that
value-addition to employees usually function by increasing the productivity of employees.
Employees that are involved in training and other value-addition programs are likely to be
more productive in their daily endeavors (Konings & Vanormelingen, 2015). Koufu should
plan on how it will train and add value to its future workforce members. This will facilitate
the firm's growth and sustainability in the foodservice industry. Moreover, training of
employees and workers that are induced in training and value addition programs develop
attachment, trust, and loyalty to their companies. According to Kang, et al., (2017) training
employees can be associated with employees' bonds to their employers' brands. Employee
training and value addition, moreover, can be attributed to increasing levels and abilities of
foodservice companies to satisfy and retain their employees (Mandhanya, 2015). Therefore,
Koufu must train its employees so that to eliminate the risk of losing its talented and skilled
workers to the company's competitors.
Impacts of the Changing Labour Demographics in Singapore to Koufu
In 2019, Singapore’s general workforce increased from 3,716,000 to 3,778,000
(“Singapore Employed Persons | 1994-2019 Data | 2020-2022 Forecast | Historical | Chart”,
2020). In the charts, Singapore's labour demographics seem to be increasing throughout the
years. Singapore's foodservice industry consists of 160,000 employees, which amounts to
more than 4.2% of the total workforce in the country. Considering that the foodservice
industry plays a major role in the country's economy and employment, the changing labour
demographics and dynamics in the country are likely to have an impact on the operations,
activities, and planning of the Koufu coffee shop. Koufu will have to adjust and comply with
the changing labour demographics in Singapore. Failure to comply with the impending
changes in characteristics and demands may threaten the sustainability of the company in the
future.
The growth and evolution of the foodservice industry necessitate increased reliance
on manpower. As the industry continues to grow, it is expected that the aging population will

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face difficulties throughout the process. According to Lassus, et al., (2015), experienced but
old workers usually lose their jobs during industrial expansions. Like firms in other
industries, companies in the foodservice industry measure the performance by their output
per worker rates (Simon, 2019). Olson & Tag (2017) also assert that many people are laid off
during structural industrial expansions. Due to their increasing age, old workers tend to offer
less output and are usually laid off. The general lay-off of workers due to the industrial
expansion will certainly have an impact on the individual firms and companies in the
respective industries. Koufu will not be exempted to experience the implications led by the
general restructuring and industrial expansion in Singapore. Koufu will be forced to sack
most of its elderly staff during the industrial expansion era.
Contrary, the process of industrial expansion demands considerable employment of
skilful, talented, innovative and ambitious youth. The growth of the foodservice industry will
demand raw energy from the unexploited energy sources of the youth. Gough, et al., (2016)
affirm that it is very appropriate for industries to incorporate the youth when they need to
expand their scopes and domains. Developing companies, industries, organizations,
provinces, and states can attribute their success story to the incorporation of the youth in their
workforce (Lehmann, et al., 2015). In the forthcoming industrial expansion, Koufu must
ensure that it hires more youths to bring talent and innovation to the company.
Although the coffee shop is already enjoying some kind of innovation, the
management still believes that their premise is still traditional and needs to attract the youths
in the production and service activities of the coffee shop. The coffee shop is looking forward
to changing the attitudes and aspirations of potential youths that can work in the coffee shop.
Proposed Workforce Framework of Koufu
Koufu is tasked to consider both the impacts of the strategies and initiatives mapped
in the ITM and the impacts of the changing labour demographics in Singapore. Whereas the
ITM functions to help companies in the foodservice industry to consider internal factors of
labour, the labour demographics in Singapore forces companies to consider the external
determinants of an efficient workforce system. Some of the strategies and frameworks are
shared in both the IMT strategies and the changing demographics in population and labour in
Singapore. Koufu should draft its workforce framework based on the ideas supported by the
IMT and the labour demographic changes within the country. This will enable the company

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to thrive and ensure sustainability in the anticipated expansion in Singapore's improving
foodservice industry.
Pallegrino, et al., (2015) ascertain that companies in the food and beverage service
sector need to develop appropriate workforce planning frameworks that will ascertain
motivated and mobilized employees in their companies. For Koufu, changing its business
format would mean a change from its traditional workforce planning framework. The
increasing need to adapt to the impending technology, moreover, will mean that the new
workforce planning framework will have to consider the advancement of technology as
mapped out by the IMT. For instance, Koufu needs to ensure employ new employees and
researchers to conduct and handle security issues.
According to Momin & Mishra (2015), all organizations are faced with the challenge
of managing human resources. The primary goal of all Human Resource managers includes
effectively using latent skills as well as the competencies of employees. However, with
technological advancements, HR Analytics tools can be used to measure attributes and
performance, thus giving an organization an edge over its rivals since human resources are
considered vital aspects for companies. Increasing global competition demands the urgency
of firms and companies to establish effective workforce planning that handles the anticipated
rapid changes and advancement in technology. For example, Google has gained tremendous
success in the global market by strategically focusing on people management. Through
people analytics, the company’s reinvention on people management has enabled it to take the
first position on the top ten successful organizations globally. Besides, the company’s
productivity has been improved by aligning the organization’s HR strategy. Koufu can follow
Google’s example and this would make it more competitive. The new workforce planning
framework for Koufu should incorporate a plan that has the correct number of new
employees that need to be employed during the period of foodservice industrial expansion
projected by the IMT. Moreover, the new framework should also specify the new employees'
salaries and wages.
On the other hand, the formulation of a workforce planning framework depends on
the changing demographics of the foodservice industry in Singapore. Koufu, for instance,
needs to specify the number of aging staff that need to be laid-off during the anticipated
foodservice industry growth. Ellen, et al., (2017) assert that the circumstances of sacking the
aging staff members are greatly felt by companies. Among the reasons behind this is that the

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company loses some of its loyal and experienced employees that in the past have been at the
forefront in making sure that the company develops and gains a competitive advantage over
its competitors. Koufu needs to specify the number of old people that will be laid-off so that
they can compute retire benefits. On the other hand, the company's workforce framework
should also have the number, the operations and the starting wages of its prospective youthful
staff.
Actions that Koufu can take to Address Impending Workforce Challenges
Despite its likelihood to advantage from talented and innovative young employees,
the incoming workforce in Koufu is likely to suffer from a lack of experience. Apart from
training its staff, the company may consider employing its new workforce source before
sacking its aging and experienced employees. According to Stanimir (2015), generation Y
employees can gain from outgoing experienced workers. Stanimir (2015) acknowledges in
the current labour market, generation Y, - Gen Y, Yers, as well as Millennials- is the best-
educated group. This group is the youngest but they acknowledge their skills as well as
knowledge, ad they desire to be treated equally and respectfully. Generation Y individuals
developed in the age of modern technology, thus, their ICT skills are belter compared to other
generations. Mixing between older and younger cohorts will serve to increase the knowledge
between the employees. In some cases, the older generation can also learn from the younger
generations. This is because Generation Y has been brought up in the era of the globalized
economy that is characterized by mobile phones along with the internet, e-comities, and e-
mails. For this group of people, the internet is a platform where they can access everything.
According to Findsen (2015), the old aphorism that an old dog can learn new tricks can be
manifested with the ability of older workers to learn ICT skills from younger generations.
This necessitates Koufu to retain its elderly workforce and facilitate a learning environment
between employees from both the young and the older cohorts.
Due to the potential increase of employees operating in Koufu stores, the company
may be forced to expand its stalls and kitchens. The incoming IT experts will need to be
provided a space to conduct their operations. Considering that the company already employs
a multitasking employee policy, the new IT experts and computer scientists may be utilized
to serve as marketing agents for the coffee shop venture. This would serve to cut the costs
that may be incurred while hiring for local and marketing strategists and agents. Through
their knowledge and connectivity to the internet, IT experts employed by Koufu may design

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websites and social media accounts that would operate to market and advertise the coffee
shop’s products and services.
Conclusion
To conclude, the management of employees in Koufu demands the consideration of
IMT suggestions as well as adhering to the changing labour demographics of Singapore. Both
the IMT and the change of labour demographics in Singapore contribute to significant
implications on the workplace plan framework of Koufu. Although Koufu fundamentally
relies on the digital self-service system and a tray-return robot, the company should invest
even more in technological devices as suggested by the IMT. The company's shared kitchen
space and merged stalls should, however, be unmerged to allow for space for the incoming
employees. Mixing both old and young employees may serve the company to retain both
talent and experience. Moreover, multitasking IT experts may help the company to benefit
from local and international marketing.

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