In the fast-paced world of foodservice and delivery, where efficiency, sustainability, and customer experience converge, few individuals are as impactful as Karthik Hosavaranchi.
As a senior manager leading innovation projects and portfolios, Karthik has consistently demonstrated a knack for identifying gaps in existing systems and pioneering solutions that blend technology with strategic foresight.
He has managed a $40 million foodservice innovation portfolio, overseeing projects that have the potential to transform how food and beverages are delivered. Concurrently, he pursued an MBA at Georgia Tech, specializing in Strategy and Innovation, a combination that deepened his understanding of disruptive technologies and their role in challenging traditional business models. His work exemplifies how innovation can reshape industries when paired with a forward-looking approach.
His efforts have not only improved operational efficiency but also aligned with broader industry goals of reducing waste and enhancing sustainability.
“One of my most ambitious initiatives involved addressing inefficiencies in the QSR industry”, he comments. Through extensive experimentation and collaboration with start-ups and Georgia-Pacific, he identified a significant gap: the lack of a unified system to monitor and manage operational equipment.
In a typical QSR, devices such as tissue, napkin, and cutlery dispensers often operate independently, leading to inefficiencies. Mismanagement in refilling these devices not only wastes resources but also increases operational expenses. Recognizing this challenge, Karthik envisioned an interconnected ecosystem powered by IoT-enabled smart dispensers.
By integrating edge sensors into existing dispensers, his proposed solution offered a cost-effective alternative to replacing entire systems. The portable sensors, priced at $15 compared to traditional IoT devices costing $130, provided an affordable and sustainable solution. These sensors enabled dispensers to communicate operational data, allowing businesses to optimize refills, reduce waste, and improve overall efficiency.
The financial implications of this innovation are significant. With approximately 8 million dispensers in the U.S. QSR industry, capturing just 10% of the market could generate an estimated $26 million in net present value over five years. Moreover, the adoption of edge sensors could reduce e-waste, aligning with environmental goals.
While the technological solution is compelling, he acknowledges that the greater challenge lies in changing traditional business models. Historically, companies like Georgia-Pacific, Tork, and Kimberly-Clark have profited by selling dispensers and generating revenue from refills. Shifting to a subscription-based model, where customers pay for IoT services, requires a paradigm shift.
This process is all about continuous changes, primarily, technological changes in the sales management workflow with a focus on the strong cultural transformation within the selling teams, sales officers and executives. “My strategy emphasizes the long-term benefits of IoT integration, that is, improved customer interface, green supply chain management, and customer loyalty”, he remarks.
He has a talent for connecting technology with various needs of the industry. He has made some experiment runs to determine customer needs. This active approach helps to make sure that the ideas successfully implemented are effective in meeting the needs of the market.
Due to such non-conformism and acting as a change agent who promotes digitalization in the foodservice and IoT industry, Karthik has earned himself a seat as a strategic change maker.
Through the establishment of smart devices, he wants to achieve a centralized command and control system that will make QSRs more hygienic, efficient and profitable in the future. It is exemplified by his use of edge sensors, where small changes can make a big difference due to cost optimality. Changing executives’ minds, refocusing on new sources of value, and emphasizing customer-oriented strategies are the keys to changing the entire industry.
In conclusion, as the world is being driven by disruptive technologies, Karthik Hosavaranchi’s work serves as a reminder that innovation is not just about creating new products. His approach is about reimagining possibilities and inspiring change.
