The more competitive the market becomes, the greater the need for companies to adopt automation that helps reduce costs and drive business growth. In the Russian restaurant sector, experts have observed a 13–15% revenue increase for the second consecutive year, with the number of establishments now reaching into the hundreds of thousands.

Vladimir Snegirev, Chief Operating Officer of the TIMELESS franchise lounge bar chain, shares how his background in client service at BigTech and IT companies enabled him to transform and automate operations over four years, making the business scalable.

BigTech Experience and Global Business Challenges

In large corporations, every task — no matter how small — has a designated owner, whether an individual or a functional team. In contrast, small businesses often demand flexibility and agility from their teams, with responsibilities divided so that everyone does whatever they can. This is a typical situation across the market and especially in hospitality. However, such an approach can strain processes as the business grows, leading to operational breakdowns.

When I joined TIMELESS, I brought with me solid experience in client service from major IT corporations and fintech startups. With this background, I stepped into the role of Chief Operating Officer. But the challenge was not just to improve operational metrics — it was to prepare the business for growth. This required building robust office processes, establishing missing departments, and developing a clear product strategy and plan that took into account the needs of all stakeholders: guests, employees, management, and franchisees.

As a guest, I was already familiar with TIMELESS lounge bars and understood that they stood apart from the rest. My personal mission was to communicate this unique value to others and fundamentally change perceptions of lounges — from stuffy basements with poor ventilation and cheap furniture — into sophisticated, welcoming spaces.

Without automation, achieving these goals would have posed a significant challenge, as the opening of each new venue with a new franchisee increases the workload on the corporate office, necessitating team expansion and process optimization.

Over the course of several years, we have established efficient processes—where my IT experience played a key role. However, we exercise caution when naming specific techniques and methodologies, so as not to discredit tools that genuinely deliver results. Broadly speaking, we have successfully adapted approaches from other industries in several areas: marketing, guest feedback management, team operations, and product development. I will elaborate on each of these in greater detail.

Anticipating Expectations as a Competitive Advantage

A product-driven approach in hospitality is always a balance between data-driven decisions and elements that cannot be quantified. Unlike IT, where nearly every metric is transparent and measurable, hospitality relies heavily on emotions, ambiance, and subjective perception. This underscores the understanding that not everything should—or can—be reduced to numbers. For example, one can measure service speed or a dish’s popularity, but it is impossible to precisely predict which hand cream guests will prefer or quantify how features like power banks, branded slippers, and custom joystick stands with mouthpiece holders influence guest loyalty.

In the premium segment, the challenge is even greater: a premium product not only satisfies existing desires but also sets trends and creates new needs. Our product strategy is guided by three key principles. On one hand, we aim to please as many guests as possible, without trying to fulfill every whim and while carefully considering feedback. Simultaneously, we strive to anticipate what will resonate with people before they even ask for it.

The product approach can be illustrated by our wine list. Simply offering a thousand varieties of wine would undermine the concept and render the business unmanageable. Instead, we analyze guest preferences, review supplier statistics, and select options that meet core demands while preserving the establishment’s unique identity. For instance, Riesling and Sauvignon Blanc remain consistently popular in Moscow and must be included on the menu. However, rather than offering standard varieties, we feature unique wines that distinguish us. We also accommodate guest requests by including rare selections, sometimes even beyond what’s available in quality wine shops, going as far as developing our own Prosecco. This approach balances market demand with the ability to surprise and delight.

Every element of the product offering must be perfected—from tactile details to flavor. It is not merely a product for sale, but a means of setting trends and shaping new taste preferences among guests. Its success can partly be measured through sales, repeat orders, and reviews. Yet, in the premium segment, there is always an element of risk — it’s impossible to predict in advance whether a product will become iconic or go unnoticed. This is natural, as creating new experiences inherently requires experimentation.

Avoiding the Pitfalls of ABC/XYZ Analysis

ABC/XYZ analysis is widely used in the market to identify the most profitable and frequently ordered items. Traditionally, it assumes that only those menu items generating the highest turnover should remain. However, if applied literally, this logic eventually reduces the menu to a handful of bestsellers, completely eliminating opportunities to offer something new.

We took a different approach. Instead of limiting ourselves to ABC and XYZ metrics, we analyze repeat orders. If a guest returns to a particular item time and again, it signifies that the item holds a meaningful place in their consumer experience—even if initial sales were modest. This approach, for example, led us to introduce hot appetizers to the menu. At launch, we were uncertain about the category’s success—our venues are not kitchen-focused, and there are excellent partner restaurants nearby. Nonetheless, order analysis showed that guests not only tried these appetizers but consistently reordered them, indicating they became an integral part of the guest experience.

The same principle applies to signature cocktails. Just because a drink has been on the menu for a long time and is consistently ordered does not mean it should remain unchanged. Even the most popular items can be subtly modified to preserve their familiar taste while offering new sensations. For instance, adding a rare ingredient, altering the presentation, or rebalancing flavors can breathe new life into a drink while keeping it recognizable. This approach allows us to comprehensively update the menu once a year (excluding seasonal offerings) while still meeting the core needs of our guests.

Automation, Digitization, and Metrics

One of the key challenges in HoReCa is managing guest feedback and effectively applying it. While client data in IT and fintech is analyzed automatically, feedback in hospitality is far more dynamic, emotional, and often scattered across multiple channels. Although some product parameters are difficult to quantify, we have made significant progress in guest service management. Over the past four years at TIMELESS, we have built a system that ensures negative reviews simply cannot “disappear into thin air.”

We aggregate guest feedback from all available sources at every stage of their interaction with the brand. Whether it’s SMS surveys, comments on review platforms, negative evaluations directed at managers, messages sent through private channels, or emails — every piece of feedback is immediately recorded, analyzed, and acted upon. We don’t just collect data; we link it to the guest’s profile, allowing us to understand whether negative feedback is systemic and which service features matter most to each individual guest.

Over the past year, we have been developing an important addition to our ecosystem that not only helps address negative feedback but also anticipate it — speech analytics through our telephony system for our franchisees. This tool enables venues to analyze calls, which is especially critical for a network operating under a unified brand. Additionally, speech analytics will be integrated into the contact center. Preliminary tests indicate that the system accurately recognizes stop-words, unclear speech, filler words, and deviations from scripts. This capability allows teams to identify areas for improvement.

For example, this was the case with our reservation process. We noticed that during evening hours, the volume of calls to the venues increased, and hosts were physically unable to handle them while simultaneously greeting guests. As a result, the Service Level dropped, and some guests simply could not get through. To address this, we added information about the option to book a table via Telegram, which enabled faster handling of requests and reduced the reception desk’s workload. This change made the process more convenient both for guests and for the team.

Working with the Team: HR Processes and Agile Methodologies

A defining feature of TIMELESS is the coexistence of two distinct types of teams: the standalone venues that interact daily with guests, and the corporate office. Their workflows differ fundamentally. In the venues—typical for hospitality—every process must be strictly regulated to ensure a consistent guest experience. Conversely, the office environment requires flexibility, rapid hypothesis testing, and scaling of successful solutions. Implementing Agile in its classic form is impossible in the venues—sprints or Scrum-style shift management cannot be applied.

However, agile practices are successfully adapted in team meetings and feedback sessions. For example, leveraging a shared knowledge base from the office, TIMELESS managers conduct regular one-on-one meetings with employees, discussing not only current tasks but also professional development. This practice, inherited from IT, helps employees grow within the company through personalized development plans. This format proves beneficial in HoReCa as well: if a bartender or manager aspires to become a venue manager, they clearly understand the steps required and receive concrete guidance.

In the office, agile methodologies are applied comprehensively. In product development, processes, and marketing, we follow an Agile-like approach: tasks are broken into short cycles, quickly tested, and then decisions are made whether to scale or refine them. This approach enables faster adaptation to change, especially regarding digital tools for venues. Importantly, office teams operate without rigid hierarchies—small autonomous groups of five to six people share responsibilities depending on tasks. Instead of relying on grades and complex ranking systems, employees focus on tangible results and business impact.

Implementing agile methods and automation should never be an end in itself. If a methodology fails to solve real problems and only complicates workflows, it will not add value—no matter how trendy the terminology. Calling meetings daily stand-ups or department tribes is meaningless without genuine benefits behind them. If a company is not ready for flexibility, rapid adaptation, and change in established work patterns, even a perfectly implemented Scrum will remain a formality, and processes will become self-serving, ultimately stifling business growth.

CRM Marketing: Systematic Approach Over Random Mailings

In HoReCa, CRM operates differently than in other industries. While in e-commerce a user can enter the database even before their first purchase by subscribing to a newsletter, in hospitality communication begins only after the guest’s initial visit. This fundamentally changes the approach: rather than focusing on acquiring new guests, the primary objective is to retain and bring back those already familiar with the product. Given that repeat visits cost the business less than attracting new guests, CRM marketing becomes not just an auxiliary tool but a key growth driver.

Until 2023, CRM marketing at TIMELESS was in its infancy. SMS and push notifications were sent to the entire database every few months without segmentation, simply because “we felt like it.” This is a common practice among many chain venues, where CRM is perceived primarily as a tool for mass mailings rather than a comprehensive channel for guest engagement.

Of course, we regularly monitor the number of loyal guests and newcomers. This highlights those who have registered a club card but never used it. We can then create personalized promotions to encourage their return.

Last year, however, we set a goal to systematize and conduct a deeper analysis of the database accumulated over six years. We engaged external specialists, audited the data, and segmented the audience into several dozen groups based on interrelated parameters. Beyond classic RFM analysis, we identified key factors statistically influencing the likelihood of repeat visits — such as the day of the week, month, and location of the first visit.

Once the database was cleaned and segmented, we were able to shift from mass mailings to flexible communication scenarios. CRM marketing now goes beyond one-off promotions, focusing on long-term guest retention. For example, the analysis helped identify the optimal moments to engage with specific guests to prevent churn. This allows us to schedule campaigns precisely around these critical touchpoints. Despite widespread skepticism, SMS remains an effective tool in hospitality, delivering higher engagement rates than email or push notifications.

Never Stop Evolving

Over the past four years, we have focused on digitizing and measuring everything that lends itself to analytics, while taking into account the unique nature of the hospitality industry and its fast-paced environment. We have moved from chaotic processes to a system where the majority of operational tasks are governed by clear metrics and transparent management mechanisms.

Almost all key objectives identified at the outset have been achieved, enabling our franchisees to open new venues with minimal disruption to the corporate office. The system is now finely tuned, processes are transparent, and past mistakes have been accounted for — turning every new opening from a challenge into a manageable, scalable operation.

The next step is to leverage the accumulated data for predictive analytics and forecasting models. Our goal is not just to analyze past performance, but to anticipate future trends, demand, and the effectiveness of new initiatives. This represents a more advanced level of data utilization, yet it naturally follows from everything we have accomplished so far.

The takeaway is simple: data collection is essential. Even if, at first, the data remains unused, when the company gains sufficient human and financial resources, these assets can be transformed into a powerful analytical tool that fundamentally changes the approach to business management.