Sodexho coupons business model

The moment that happens, it becomes a safety net for us. If we have a proprietary network, you know the terminal will be placed only in food outlets or non-alcoholic beverage outlets. Now we are in the process of expanding to tier 3 and tier 4 towns and cities. So they had never accepted a credit card or debit card. So we had to train and them and show that this is how the machine looks like, this is how you swipe, enter a PIN, print out a charge slip and so on. Every month, we used to produce millions of coupon booklets.

Then they would be distributed to the users. And the users would take the booklet. We are present in across cities. They would take the vouchers to the outlet. We have a reverse logistics system. We operate with some of the biggest courier companies in the country. So the courier company would go there and pick up the secure envelope get it to our back-end processing centre in Malad. Then there would be someone who would put it through the counting machine. So now the process is the company would issue a card which will be sent to the office.

Where the HR would distribute it. The card would be personalized. When you get the card, you get an activation code. You have to go to the portal and enter the card number and activation code. You also get a separate PIN. And month after month, the HR needs to go to an online portal and enter the number of employees and add around say, Rs 2, per month. And the total number of outlets is 15, which includes shops. And we are growing and we are adding more every month. And now the second wave of clients adopting the solutions will start.

So we are on track to migrate as many clients as required to the digital solution the next couple of months. And it is the most important part of any acceptance infrastructure, which we have painstakingly built, for so many years.

The secrets of talent development

So the issue of giving cards is far easier than setting up the acceptance infrastructure across so many cities. It depends of per transaction. But we work with multiple acquirers and there are different rental models. So you pay a fixed rental and a variable per transaction cost. We have full control over the network. We would look at where it would be located. We also do physical checks of the restaurant. If it is clean and hygienic and has a certain amount of reputation among people in that area.

We look for the proof of address and proof of identity of the owner and last we take their bank account details to remit to their bank accounts. In Navi Mumbai, we got some request from their employees saying that they frequent a couple of outlets which were not on our network. So it took us about two weeks to do the paperwork and install the machine etc. We charge a very small marketing fee to the merchant. Non-Sodexo part of the transaction, they anyway make the entire amount of money.

The fee for the merchant varies from different categories. The volume of transactions from the merchant determines the fee we charge. The three most important features are, firstly, a mobile payment option where you can link a meal card to the app and you can scan a QR code and make a payment. Secondly, there is a global outlet locator. Wherever you are, you press the button, it will tell you how far it is and gives you directions to go there. Thirdly, because we are such a large company, we get a lot of deals and discounts from merchants.

We have around 2. The app was launched in June And the mobile payment solution was launched in January this year.

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These Indian Companies Want to Be Sodexo Coupons for the Smartphone Generation

For mobile payments, we have made it simple for any user. In any transaction, you need to know who you are paying so the QR code, it is a merchant identifier. Banking on the Tax Advantage Gurgaon-based marketing executive, Arjun Basu, is usually excited at the prospect of a tax-free perk being part of his salary structure. According to tax policies, an employer cannot spend more than Rs 50 on an employee meal during working hours.

Working by averages, an employee can receive a maximum of Rs 3, per month through vouchers or as food allowance.

For Basu, the tax saving would be in the range of Rs 1, a year. Consumers will spend this amount even without the coupons.

With minor changes in operational processes

Also these coupons help the top guys. This undermines the claim that these vouchers bring in more sales and footfalls to retailers. But for a large class of people, the tax-free perk and the ease of shopping is still worth the vouchers. Shifting Focus It may not have been so in the past, but the meal voucher business has now become a game of scale. To stay afloat, experts believe that coupon companies must first make logistics more efficient.

The aim must be to minimise formalities, lower costs of producing coupons and as a result, keep narrower margins agreeable to retailers without squeezing their own profits. Mukherjee of AT Kearney believes meal coupon companies must expand the bouquet of offerings to prove the effectiveness of their business model.

The spend value should also be large per customer to be material for retailers, currently meal vouchers are a small portion of a employees compensation.

How to transfer amount from Sodexo card to Paytm - activation process

Only then will it make sense to all stakeholders involved. Despite being on the backfoot, both Edenred and Sodexo are trying their best to woo back friend-turned-foes into their client lists. So they are avidly exploring new business opportunities. Vouchers in many countries support food programmes, child schooling, medical benefits etc.

Globally, Sodexo is also known as a facility management company providing onsite service solutions to companies, schools and universities, hospitals and correctional facilities and remote sites. Edenred is also currently in the process of rolling out a smart coupon-based programme in the state of Madhya Pradesh, revamping the delivery of food grains through their public distribution system, impacting close to 5 million below poverty line families. The French companies believe they have devised a versatile business model which can be leveraged for delivering a variety of services.

How Sodexo Is Moving From Coupon Booklets to Cards and Mobile Payments

And meal coupons may not be the chief subject. Are you a Business Owner? Connect with us. Read more on Sodexo. Edenred India. Sodexo India. Food Bazaar. Sunday ET. Future group. Apna Bazaar. Follow us on.

How Sodexo is going digital in India

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