Technology: Chain Links
Chain restaurant operators lead the way in adopting technologies to help minimize human error and increase efficiency.
By Kate Leahy, Senior Associate Editor -- Restaurants & Institutions, December 1, 2008
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| Culver’s used geographic-information software to help select the location for this new unit in Milwaukee. |
It sounds like the stuff of James Bond: geographic-information systems, biometric fingerprinting and infinitely customizable software applications. However, these technologies are at work every day in the foodservice industry, helping operations run more smoothly and efficiently.
The information-technology (I.T.) revolution has been slow to catch on in restaurants. Although gravitating toward newer—and better—software solutions might seem like an inevitable part of a company’s development, restaurateurs, who typically focus on menus and guest experiences, haven’t always been responsive to new technology. However, as the world goes wireless and technology becomes less expensive, however, this is changing. Chain operators in particular are embracing new software and Web-based tools, especially those that serve to minimize human error. “We need to be implementing technology that enhances our business,” says Brian Pearson, director of information services for Huntington Beach, Calif.-based BJ’s Restaurants.
This article examines three tech solutions that do just that: One aids with franchise site selection; another enforces employee accountability; and a third enables an I.T. department to quickly adjust to the needs of a growing company.
Plugging In to New Units
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| Screen captures show Culver’s software in action. |
For Prairie du Sac, Wis.-based Culver’s Frozen Custard and ButterBurgers, determining the location of a new store is a weighty decision. “Every time we’re looking at a unit that costs almost a million [dollars] to build, we need to make the right decision with our franchise partners,” explains Dave O’Brien, Culver’s real-estate manager.
To ensure that he has the best data available, O’Brien relies on a geographic-information system that operates with a combination of desktop and online software. The program accesses key data, such as regional demographic information to help determine optimal positioning for new units.
Using the software “exposes red flags or great opportunities that we might be overlooking,” O’Brien says. One thing it won’t be doing, however, is replacing staff. Indeed, O’Brien plans to hire a full-time employee who will focus on extracting data from the program.
Stepped-Up Security
To guard against employee theft and truancy, Valenti Management, a Tampa, Fla.-based franchisee that operates several Chili’s and Wendy’s locations, sought a new employee verification program that would do away with swipe cards and personal identification numbers. Cards and PINs, while providing some employee accountability, still allow staff to sign in for absent co-workers or let managers take costly shortcuts, such as letting other employees void transactions.
Enter biometric fingerprinting. After testing different programs, Valenti I.T. director Pachy Torresola chose a fingerprinting system that guaranteed accuracy and had an easy-to-replace fingerprint scanner (essential for a busy operation). In all Valenti-run Chili’s units—and soon in Wendy’s stores—managers register new hires’ fingerprints. Then, any time an employee signs on to the point-of-sale system, he or she must scan a fingerprint to be able to continue.
Although it is difficult to determine how much money the system has saved Valenti, it is clear that it has improved accountability. Torresola notes that during a test at one Valenti-run Wendy’s location, average daily register voids dropped to $20 from $300.
“It’s not foolproof,” Torresola admits. “But there hasn’t been one occasion where we have had someone say, 'It wasn’t me.’”
Wired for Growth
Five years ago, BJ’s Restaurants had 28 restaurants and two people in its I.T. department. Even then, though, information-services director Pearson sought to develop a network that would eventually be able to support 300 restaurants. He purchased a software application that let I.T. staff create code that fit the company’s existing needs and that was flexible enough to be tailored easily as the business grew.
Today, the company operates 82 restaurants, and the I.T. department is 12 employees strong. With each additional piece of code, its operating system grows more sophisticated. Previously, BJ’s manually transferred labor data files from each restaurant to the corporate office once every day; now, labor, sales and product-mix data are updated constantly and automatically. The network also allows the centralized I.T. department to provide remote support to all units. In addition to the software’s purchase cost, Pearson pays an annual fee to the software company for service and program updates.
By using the application, “what we realized is that we could deploy a solution company-wide,” Pearson says. “And we can add functions indefinitely.”
Contact writer at kate.leahy@reedbusiness.com
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