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This Indonesian Start-up is Helping Restaurants Manage Their Business

NADIPOS is guiding F&B establishments into the digital era

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BY Ezra Ferraz - 06 Jun 2017

PHOTO CREDIT: Getty Images

While mainstays like Go-Jek may grab the tech headlines out of Indonesia, there are swaths of local small and medium businesses that need assistance in transitioning to digital. NADIPOS, which was recently accepted into Google Launchpad Accelerator, aims to help them.

NADIPOS founder and CEO Tarun Agarwal originally set out to create his own food and beverage (F&B) company when he realized he could make a greater impact by creating a platform that served all his peers.

“Difficulties in managing staff and running operations hinder owners to compete against the growing competition,” he says of the challenges that inspired him to create point-of-sale (POS) system NADIPOS.

Though there are many point-of-sale systems available in Indonesia, Agarwal was quick to differentiate their platform from competitors.

“NADIPOS is the only POS in the market that has wireless connectivity between all its devices and is designed specifically for the F&B industry. It is a tablet-based solution, making it easier to use and upgrade,” he says, adding that the platform also enables owners to manage inventory, customers, staff, and finances.

NADIPOS targets any business within the F&B category, be it a restaurant, bar or lounge, cafe or bakery, kiosk, or even food truck. With this general category, they target establishments that are struggling to manage their restaurants, but still want to expand further.

Agarwal says that the biggest hindrance to NADIPOS scaling is that the sales process requires one-on-one interaction with each client. “We overcome that by providing trail access to our solution to potential clients and videos of how the system works and can be helpful to their business,” he says.

During the sales process, the most common question from larger corporations is whether NADIPOS can meet a need for a feature specific to their business. Agarwal adopts a utilitarian rule-of-thumb to addressing this request.

“We respond to them by analyzing the features requested by the client - if it is something that will benefit all our customers, we build it free of charge; if is very specific to their business only, we provide them with an additional cost and timeline for the feature,” he says.

Simplicity and stability are key

Companies who are bold enough to switch onto NADIPOS typically benefit. Agarwal gave the example of a NADIPOS client who had 15 ice cream establishments all over Indonesia. They had already gone through several POS systems and even with the latest, they were still experiencing trouble managing staff and inventory.

“They could only compile all their data after two to three months and whenever they did their stock checks and usage analysis, they realized that it was incorrect by 40 to 50% on average. Secondly, pilfering and staff absence was a major issue. Lastly, managing multiple stores and franchises was a challenge due to the number of reporting they had to compile,” Agarwal explains.

NADIPOS was invited to deploy at two of their prime locations. The platform tracked staff attendance through a photo at check-in and check-out, inventory was automatically calculated based on recipes, and even franchise commission was managed through a cloud-based back office. The client’s satisfaction is evident in the larger roll-out of NADIPOS.

“Currently, we have replaced most of their POS systems to NADIPOS and have improved attendance by 30%, reduced stock pilfering by 25%, and resulted in improved sales of more than 20%,” he says.

Over the next 18 months, NADIPOS is planning to grow their client base in Indonesia by setting up additional offices in major cities, along with adding more features to the platform that will help F&B establishments manage their finances, staff, customers, operations, and stock.

Agarwal believes there are a lot of opportunities for entrepreneurs to enter the F&B space, given how fragmented the industry is. “Look for problems the industry faces and build products that are useful to the business as well as to the customers they serve,” he advises.

As a note of caution, he emphasizes that entrepreneurs must build a simple and stable product. “Your users can be anybody; from all types of backgrounds and education levels. Unstable and difficult to use systems will often result in users reverting back to manual processes,” he says.