June, 2006
By Michael J. Rasmussen
Being in two places at the same time physically is not possible.
How do you manage more than one restaurant effectively? Your
dream is to duplicate your independent restaurant or open
an additional franchise location to reap the benefits of multiple
store ownership. Technology can create a system that will
allow you to gather information from each store location and
manage the numbers each day in your pajamas.
The future is here today. You have the ability to monitor
your store operations on the road, on vacation, or across
town. For example, with 700 customers in five cities, TowerStream
is the most active player in an emerging industry that sells
a technology known as WiMax, or worldwide interoperability
for microwave access. Unlike WiFi, the radio wave technology
in airports and cafes that allows users to log on to the Internet
from their laptop computers within 150 feet of an antenna,
WiMax delivers broadband Internet connections through fixed
antennas that send and receive signals across entire cities.
Using the most powerful equipment, a single antenna atop
a tall building can provide high-speed data transmission to
users as far as 30 miles away, although the optimal range
is less than half of that. The radio signals and antennas
are unaffected by bad weather and provide an alternative to
data cables that are sunk below sidewalks and can accidentally
be cut by construction crews.
For multi-store operators this means real-time information
access to store operations if you have designed your reporting
information systems to provide such data to you. Here is how
you get started to jump into the future.
Step One:
Flowchart your current system of how you as the operator receive
information of your store results daily, monthly and annually.
Take the time to write down who performs which task first
and then the second and so on. Be as detailed as possible
including all tasks you perform as the operator. Each manual
process that takes time involving the processing of data should
be included.
Make a sample copy of invoices, menus, order pads, lists,
cheat sheets or any piece of paper that helps you track store
results. This would include all paperwork provided to your
accountant at month-end such as your check register, Z tapes,
bank statements, credit card statements, payroll journals,
fixed asset purchases, sales tax reports, plus any other paper
that supports the store operations.
Step Two:
Remove yourself, the owner, from the paperwork process. Make
a list of the tasks you perform in the flowchart. Of those
tasks, pick the most important ones that will impact your
restaurant in the next 30 days. Of those, pick three items
and delegate the rest to your employees.
The basis of all success is sales. As a restaurateur or any
other entrepreneur, you eat what you kill. You get paid for
results, not just for showing up. Analyze the dollar per hour
return on investment of spending your time cooking in the
kitchen versus negotiating a lunchtime program with the local
elementary school for 500 kids once a week. Do the same with
monitoring the product delivery process versus meeting a local
distribution center two miles from your restaurant desiring
pizzas for the afternoon break once a week. See what scheduling
employees versus establishing a business luncheon program
to utilize your private dining area during non-peak time does
to your ROI.
During this step, you should identify areas that employee
theft can occur. For example, portion controls, employee breaks,
supplies, ability to void tickets or any other ways that employees
could be monitored while you are away from the restaurant
generating new customers. Only you know your system, and you
need to out-think your employees in this area. A local district
attorney recently provided me the stat that, "One-third
of employees steal from their employers, and that amount is
usually under $100,000 and, therefore, never prosecuted."
Theft appears in many forms but primarily when employees turn
business into personal time on the clock.
Step Three:
Replace manual processes with technology. For example, do
you hesitate to change the price of a menu item just because
it means re-programming the cash register? Do you hate that
little worn out, paper "thingy" on top of your cash
register keyboard because it's covered with messy whiteout
or has little squares of paper pasted all over it everywhere
new menu items have been added? Are you frustrated with getting
all your reports on two-inch wide paper with only one date
range to choose from? Do you dread searching through dusty
old boxes full of journal tape rolls to find an old report?
Sure, we know how complex a POS program can look with all
the diverse files and tables that have to be linked together
in the very precise manner described in the little blue operator's
manual. And, we know that the little blue book makes it even
more difficult by using terminology like PLU, Job Codes, and
Key Positioning to describe those precise methods. One customer
said it best when he described the process of trying to update
his POS program at the cash register by saying, "Right
now, it's like trying to put together a thousand piece puzzles
without even knowing what the whole picture is supposed to
look like!"
So, just imagine if you could find a software program that
could let your PC talk to your cash register so that it could
magically assemble all of those very complex "puzzle
pieces" together into one simple picture so that it all
made sense?
How about going paperless? Paperless solutions provide a
more efficient and professional way to run your restaurant.
Whether you have to provide sales data to your franchisor
or accounting information to your investors the ability to
have all of your restaurant data at your fingertips, in one
location, and the ability to retrieve that data and send it
timely will save you time and money in the process.
Upgrade your access to the Internet. Many accounting systems
now will allow your banking transactions, credit card transactions,
and payroll transactions to be downloaded over a secure website
connection in a real-time manner. Jump back to running your
business in your pajamas through technology for this step.
Imagine waking up in the morning and: You turn on your computer,
enter the prior day's vendor checks, download your daily sales
from the night before, verify the deposit to the banks made
by your manager the day prior, access your banking and credit
card balances, download and approve your employee time cards
for processing later in the day, and make a phone call to
your opening store manager all before your morning coffee
is made at home.
Your flowchart is your road map to identifying what technology
and services you could use to simplify any manual or repetitive
processes you are using as well as reduce your time spent
on processing store operational data.
Step Four:
Implement your technology. Once you have flowcharted your
systems, identified who does what and when, and have selected
possible technology solutions to replace your manual processes
then you need to set up a budget for the technology costs
and timeline to implement the technology.
Culture buy-in is vital. Employees need to be informed of
your proposed process restaurant-wide. Identify benefits to
them as much as to yourself, the owner. Assign responsibility
to one employee to remain accountable for the implementation
process. Provide an incentive to this employee to provide
valuable feedback for the proposed systems changes.
Identify who will be responsible for replacing current services
such as your banking or credit card providers if they do not
have the technology available to support your mission. This
may include replacing your accountant or bookkeeper if they
have not kept up with the times and are not supporting your
technology program. Remember, outside providers are to serve,
not be served. Your train is moving, and it is up to you to
communicate your vision and watch who jumps on board. To ensure
you get in your pajamas in your time schedule, a sense of
urgency needs to be created to all who support your restaurant.
Step Five:
Reporting. A clear road map always has a finish line. Yours
should be the reports you receive on a daily, monthly and
annual basis as a result of implementing technology and removing
yourself from the paperwork process. Take the time to clearly
identify what you need to know about your store operations
daily. When do you want to receive that information, and who
will communicate that to you?
In summary, humans don't learn unless it hurts. Now that
you know it is possible to run the financial side of your
business in your pajamas what are you waiting for? Doing the
same thing over and over getting the same results is insanity.
Take a leap. How important is your time? Analyze how you can
utilize technology in your store operations to simplify your
life. Take charge and spend your time doing what matters...marketing
your business!
Back to Articles
|