Terry, Lisa, Breaking Down the Fudge Factor, Hospitality Technology Magazine, October 2007
Breaking Down the Fudge Factor
Summary
This article by Lisa Terry deals with restaurants applying analytics to take the guess work out of food preparation. Restaurateurs have found recently that in back end restaurant management systems that include forecast-driven production and menu analysis systems there is time, energy, and money that can be saved. These reduced labor and inventory costs allow for reduced waste, fresher food, tighter delivery cycles, menu changes, promotions, greater manager accountability to ultimately improve the guests experience and enhance the workers performance. Chris Rodrigue, CEO of Taste Buds uses software from Compeat. It works on a four to seven point reductions and restaurant operators are able to use solutions that allow them to see, control and scrutinize their costs. Taste Buds specifically uses time and motion studies to determine the processes involved in preparing dishes and is then able to forecast what's made and when. Another secret they feel is calculating a daily par level rather than averaging across days. These tools can also make ordering more accurate by recommending orders based on forecasts, not just previous orders. It works well when new items are added to the menu. Additionally, these tools provide real-time visibility. Which helps chains and franchise systems greatly! You must train managers and franchisees to use these systems properly though. And the secret of effectively employing back end solutions is to use them in an environment where they can do the most good, and then stay committed to doing the work. This tool is an integral part for the future of restaurants.
Reflection
I found that this article was very well written and informational. As a future restaurateur I will definitely look into top of the line back end solutions systems because of their effectiveness in the hospitality industry. I was surprised at the effectiveness of Taste Buds food costs decreasing from 31 to 27.5 and labor costs from 12.5 to 11 percent because of back end solution systems. These systems are not only increasing productivity but additionally creating more time and energy for management to focus on marketing concepts to increase future revenue for companies. Arby's uses Restaurant Technology inc. to help in the ordering and food preparation as the franchisee enters recipes into RTI's menu analysis tools to be able to see their impact on food costs, paper costs, and revenues and gross profit. These tools are essential for any franchise company and will help the company greatly in the future.
Saturday, October 27, 2007
Sunday, October 14, 2007
Blog Posting #3
Lorden, Abigail A, After hitting the $1Billion Mark, Church's Chicken aims to double in size by 2011, Hospitality Technology, September 2007
Cover Story: Millions of Chicken's Sold
Summary
Since George W. Church found the chain, Church's Chicken in 1952 it has expanded into a billion dollar business. Through a mix of innovation and simplicity Church's Chicken plans to double in size by the year 2011 from approx. 1600 locations now to 2500 locations across the globe. Harsha V. Agadi, the company's current president and CEO became a chief executive on December 26th, 2004 a date which is referred in the company as "Independence day" because of when Church's Chicken's official shifted from AFC Enterprises to Crescent Capital. In 2005, guest number's increased and Church's introduced two new product launches inclusive of a spicy bone-in chicken and the 99-cent Spicy Chicken Sandwich. The growth will occur though the expansion of units in both domestic and international markets and building out it's franchise base. Church's Chicken is located in 30 states and targets lower income neighborhoods where great food at lower prices are valued. Internationally there are over 400 stores in 18 International countries. 80% of new locations will be franchised and 20% will be company owned internationally. Agadi feels that the key to successful franchising is setting the standard at the corporate level. Innovation at Church's has meant outsourcing many of it's operation and technology systems through installation of Radiant point of sales systems and Texas digital drive thru timers, Mirus Restaurant Solutions, sandwich stations into kitchen operations, rebuilding and relocating numerous company stores, and new spicy chicken options. Outsourcing functions include accounting and employee expense reporting, bank reconciliation, and payroll. Agadi feels that outsourcing help the company grow without having to add resources. And the ultimate goal is to simplify operations, drive down operating costs, and free up capital to invest in the product as to grow more locations world-wide.
Reflection
I found that this article was very informative. Through outsourcing IT and setting proper goals, Church's Chicken will hopefully be able to double in size by 2011. Sonata Information Technology, out of Bangalore, India helps Church's Chicken in providing IT consulting, application development, and management services. It creates personalized reports for the executive and management teams and helps them make quick decisions for the companies worldwide. Sonata is able to focus on Church's immediate access to information so that executive offices can deal with the core business function of the company......to make chicken. The "independence day" of the company was a pivotal step in the expansion and future for Church's Chicken. A 390 Million transaction allowed Church's to revamp their menu strategy to target the product offerings. I found this change to be essentially and with the marketing of the new spicy bone-in chicken and the 99 cent spicy chicken sandwich the company was well on it's way down a path of success. This article proves how a good partnership with an IT company and a strong company like Cresent Capital can make a world of difference in the hospitality industry.
Cover Story: Millions of Chicken's Sold
Summary
Since George W. Church found the chain, Church's Chicken in 1952 it has expanded into a billion dollar business. Through a mix of innovation and simplicity Church's Chicken plans to double in size by the year 2011 from approx. 1600 locations now to 2500 locations across the globe. Harsha V. Agadi, the company's current president and CEO became a chief executive on December 26th, 2004 a date which is referred in the company as "Independence day" because of when Church's Chicken's official shifted from AFC Enterprises to Crescent Capital. In 2005, guest number's increased and Church's introduced two new product launches inclusive of a spicy bone-in chicken and the 99-cent Spicy Chicken Sandwich. The growth will occur though the expansion of units in both domestic and international markets and building out it's franchise base. Church's Chicken is located in 30 states and targets lower income neighborhoods where great food at lower prices are valued. Internationally there are over 400 stores in 18 International countries. 80% of new locations will be franchised and 20% will be company owned internationally. Agadi feels that the key to successful franchising is setting the standard at the corporate level. Innovation at Church's has meant outsourcing many of it's operation and technology systems through installation of Radiant point of sales systems and Texas digital drive thru timers, Mirus Restaurant Solutions, sandwich stations into kitchen operations, rebuilding and relocating numerous company stores, and new spicy chicken options. Outsourcing functions include accounting and employee expense reporting, bank reconciliation, and payroll. Agadi feels that outsourcing help the company grow without having to add resources. And the ultimate goal is to simplify operations, drive down operating costs, and free up capital to invest in the product as to grow more locations world-wide.
Reflection
I found that this article was very informative. Through outsourcing IT and setting proper goals, Church's Chicken will hopefully be able to double in size by 2011. Sonata Information Technology, out of Bangalore, India helps Church's Chicken in providing IT consulting, application development, and management services. It creates personalized reports for the executive and management teams and helps them make quick decisions for the companies worldwide. Sonata is able to focus on Church's immediate access to information so that executive offices can deal with the core business function of the company......to make chicken. The "independence day" of the company was a pivotal step in the expansion and future for Church's Chicken. A 390 Million transaction allowed Church's to revamp their menu strategy to target the product offerings. I found this change to be essentially and with the marketing of the new spicy bone-in chicken and the 99 cent spicy chicken sandwich the company was well on it's way down a path of success. This article proves how a good partnership with an IT company and a strong company like Cresent Capital can make a world of difference in the hospitality industry.
Subscribe to:
Posts (Atom)