The transformation of management system at Chopstix, with the help of
Associated with authentic Chinese food, the Chopstix restaurant chain feeds millions of customers every month. Since opening its first restaurant in 2008, Chopstix has grown steadily, now reaching 26 locations nationwide and over 300 employees. Additionally, Chopstix has expanded its online presence, reaching consumers through the most well-known delivery companies, such as Glovo, Tazz or Bolt.
To support its entire activity, the company operates a central warehouse in Bucharest, with an area of over 600 sqm. Chopstix restaurants place emphasis on the quality of ingredients and strict adherence to recipes, as well as on prompt, retail-style service. With such competitive advantages, Chopstix exceeded a turnover of €14.6 million and a profit of over €3 million in 2022.
Business challenges
The management of a single restaurant can be done with passion and time, but managing 26 brings entirely different operational challenges. The Chopstix team increasingly felt this reality as the network expanded and the activity became more complex. From ensuring the supply of raw materials in each location to closely monitoring economic indicators, the effort to correlate and obtain data had become increasingly demanding.
“Our challenge is to maintain the quality of products and sales services, but all of this is closely tied to a high-performing operational level. We need all locations to benefit from optimal stocks, waiting times to be minimal, and the cost structure to be transparent in order to have control over margins and their impact on profitability. Obviously, we need technology to properly and efficiently manage the Chopstix network.” – Nicoleta Ivan, Administrator Chopstix
In its early years of operation, Chopstix used a financial-accounting management system developed in Romania, but one that could not efficiently process the growing volume of transactions. After opening its 20th location, the management team realized that a change was needed in order to gain the desired level of visibility and control over the business. Following discussions with several providers and verification of local references, Chopstix chose to collaborate with ELIAN Solutions for the implementation of the Microsoft Dynamics ERP system. Later, the positive results of the project convinced Chopstix to continue working with ELIAN for the implementation of a restaurant-level sales system and a warehouse management solution.
”We were using a local management solution, which, however, after surpassing 20 locations, could no longer efficiently process the large number of transactions. We also felt the need for an integrated system that would give us an overview and better control over the business. Following recommendations received and direct interactions, we chose to collaborate with Elian Solutions for the implementation of the Microsoft Dynamics Business Central ERP system, which we later complemented with other solutions for managing the operational activities of the restaurants and the central warehouse.”
Nicoleta Ivan, Administrator Chopstix
The solution
In choosing the solution proposed by ELIAN, equal weight was given to the international footprint of Microsoft Dynamics Business Central, its alignment with the specifics of local tax legislation, and its validation through multiple implementations at top Romanian companies.
Chopstix has developed, with the help of ELIAN Solutions, a complete management system that covers both financial and operational processes at the store and warehouse level. The three components (ERP system, POS solution for restaurants, and WMS solution) were customized by ELIAN to meet Chopstix’s specific requirements and integrated across the entire company.
Components
Microsoft Dynamics Business Central ERP system for operational and financial management
The solution proposed by ELIAN involved advanced customization of the Microsoft ERP system to best cover the specifics of Chopstix’s operations. Within the system, supplier lists and product catalogs (finished products, goods, spare parts, raw materials, consumables) were defined with a high level of detail, allowing for more accurate management. For the production area, over 50 preparation recipes (bills of materials) were defined, with the automatic deduction from inventory of the required quantities for each ingredient used. In addition, a dedicated module was developed for managing sales prices and promotions, by product categories, time intervals, and locations.
The system was integrated with multiple online delivery platforms (Tazz, Glovo, Bolt). All operational data is processed within the Financial-Accounting module and allocated to accounts and cost/profit centers defined at the level of restaurants, online deliveries, headquarters, kitchen, call center, and warehouse. The granular level of accounting records allows for easy generation of a large number of reports required both for compliance with authorities (including the D407 SAF-T statement) and for internal use by management. In this category, predefined reports include sales analysis (by locations, time intervals, products, suppliers), expense allocation for vehicles, profit and loss centers, account balances, dividend allocation, etc.
The ERP system also includes features for managing restaurant lease contracts and the vehicle fleet, with detailed records of all data (technical sheets, insurance, periodic technical inspection documents, sanitary approvals, fuel cards, etc.).
Logistics Module – Warehouse for processing goods receipt notes, deliveries, and stock inventory
The warehouse management solution developed by ELIAN Solutions for Chopstix provides the following functionalities:
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Management of merchandise purchase orders, with safety stock levels at the product level
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Physical receipt based on barcodes, both in the central warehouse and at the restaurant level, with validation and approval features by responsible staff
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Sending supporting documents (invoice, goods receipt note, receipt slips) to the financial-accounting department
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Stock inventory through scanning, with categorization by product types, batches, locations, and expiration dates
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Stock transfer orders from the central warehouse to the central kitchen or restaurants
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Delivery planning to stores based on the load capacity of the vehicle fleet
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Management of merchandise returns, including for expired or non-compliant products
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Features for managing expired products, with options for separate labeling and isolation, and a dedicated picking list
Retail POS solution for effectively managing sales at the restaurant level
For the effective management of sales and cashier operations at the restaurant level, Chopstix implemented a POS solution developed by Elian Solutions. The solution enables the recording of payments and receipts both for individually defined products (portions) and for packages. The POS solution was integrated with the ERP system, allowing sales by location, merchandise purchases, and consumption slips to be automatically imported for seamless inventory deduction.
”We have developed a strong relationship with the Elian Solutions team and benefit from prompt services regardless of the request, from opening a new restaurant to implementing SAF-T. They are a partner you can rely on to find a solution to any problem.”
Nicoleta Ivan, Administrator Chopstix
Reported benefits
Chopstix has taken a big step towards digitalization through the implementation of the integrated management system proposed by ELIAN Solutions. The solution ensures increased visibility over operations and full operational control. Chopstix manages each restaurant or online sales channel separately for more granular control, while at the same time consolidating all data at the headquarters to gain an overall view of the business. This way, decisions can be made to improve the activity of a specific location, as well as decisions that target the entire company.
”An important advantage of the Microsoft ERP system is the high level of granularity of the records. This allowed us to develop a very detailed management system which, through the recorded data, provides the desired transparency and traceability over operations. In practice, we can support any business decision with real, not assumed, data.” – Nicoleta Ivan
Other benefits
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Transition to individual management for each restaurant and delivery channel, along with easy consolidation of all data at the headquarters.
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Optimization and personalization of promotional campaigns based on real data obtained at the store level.
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Better control over pricing policy, through improved evaluation of production costs and corresponding profit margins.
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Access to extensive managerial reports for activities based on the most diverse criteria, from sales by area (restaurants in the city versus restaurants in office buildings) to best-selling products.
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Ensuring continuity in the supply of raw materials by activating alerts based on stock levels, supplier price trends, availability, and delivery.
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Reduced waiting times in restaurants by simplifying the sales process.
- Strengthening the procurement policy by identifying and correlating consumption across multiple locations, which enabled the negotiation of quantities and prices.
- Close monitoring of the volume of packaging and used oil generated in Chopstix restaurants for easier reporting to environmental authorities.
- Complete visibility and unified management of stocks, with the Chopstix team having the ability to easily move inventory between various locations as needed.
- Prompt support for overcoming any updates to tax legislation and for adopting new reporting systems in relation to ANAF, such as SAF-T and RO e-Invoice.
- Optimization of fleet management and increased vehicle availability.
”The system provides real-time access to complex reports on operations. With Microsoft Dynamics, a Profit and Loss (P&L) financial report for a specific location can be obtained with a single click, whereas with the previous system it took at least a full day to compile all the necessary data.”
”The Microsoft ERP system helps us on all levels, from planning and budgeting to consolidating purchase orders. Our activity has improved significantly after implementing the Microsoft solution, and I don’t think we could work without the help of technology anymore.”
”The use of the Microsoft ERP system and the collaboration with Elian Solutions help us grow and become a leader in the food market in Romania.”
Nicoleta Ivan, Administrator