Leveraging Data-Driven Insights to Improve Restaurant

WHITE PAPER

Leveraging Data-driven Insights to Improve Restaurant Operations Video surveillance has long been a tool used to monitor restaurant operations, but new capabilities are increasing the value proposition.

By Richard Slawsky | Contributing writer

DEVELOPED AND PUBLISHED BY: SPONSORED BY: WHITE PAPER

By Richard Slawsky | Contributing writer

SPONSORED BY:

Profit margins in the restaurant industry have typically been thin, with financial services firm Sageworks estimating that net profit margins across the restaurant industry for 2017 averaged 6.5 percent. While that’s better than the 3.3 percent net profit margin restaurants averaged in previous years, there’s still not much room for error.

Because of those thin margins, it’s critical for operators to manage costs while at the same time delivering on the brand promise. It can be especially difficult for those with multiple units. Unfortunately, managers and multiunit supervisors can only be in one place at a time, prompting many to seek technological tools to assist them in improve operations.

One such tool gaining popularity is intelligent video-based monitoring systems, allowing owners and managers to extend their reach and monitor multiple locations. Many of those systems can match point-of-sale transactions to video records, allowing for the verification of specific transactions. Some include audio capabilities that help further pinpoint issues.

While there are obvious uses for video technology in a restaurant, if all they offer is the ability to look in on an operation remotely, the value they provide is relatively limited. But not all video applications are the same.

© 2019 Networld Media Group | Sponsored by DTiQ 2 Beyond passive observance When restaurant operators think of controlling costs and improving operations, one of the first things that comes to mind is managing theft. Most cost problems at a restaurant happen either at the register, with items not being rung up properly or cash disappearing, or at the back door via the theft of product.

Video surveillance systems can be a great tool for catching those issues. Cameras can be placed by the back door, in prep areas, over the checkout counter and elsewhere to monitor employees and ensure they are behaving appropriately.

But combine those systems with analytics, artificial intelligence and industry expertise and their capabilities can extend far beyond basic monitoring.

The solution offered by Framingham, Massachusetts-based DTiQ, for example, leverages those capabilities and more to help restaurant operators improve their businesses. DTiQ is a nationwide provider of video-based loss prevention solutions.

“Live and recorded video is great tool to have as a restaurant operator, especially if you have multiple units,” said Charles Gonzalez, director-business consultant group with DTiQ.

“Beyond that, though, the support that we offer at DTiQ though consultations with experienced restaurant professionals along with follow-up training and customization of the

© 2019 Networld Media Group | Sponsored by DTiQ 3 solution allows us to really focus on the client’s pain points,” Gonzalez said. “We like to think of ourselves not just as a loss prevention company, but as an advocate and a valued partner when it comes to overall operational success.”

With the DTiQ solution, operators can gather data about their restaurants from anywhere, verifying that staff are adhering to brand standards ranging from food safety and product quality to employee uniforms and restaurant cleanliness.

“Those features will definitely help any operator manage costs,” Gonzalez said. “They can see orders being delivered and make sure they are being checked in, survey the prep area to make sure portioning is being done properly and survey the production line to make sure there’s not an excessive amount of waste.”

In the front of the house, video recordings can be linked to specific point-of-sale transactions, allowing operators to verify the integrity of issues such as voids and discounts. In addition, they can measure factors such as speed of service and queue times that affect a customer’s view of the operation.

An accompanying audio component can help verify that employees are engaged in positive interactions with customers and are taking actions such as upselling or suggesting specials. In addition, built-in artificial intelligence capabilities can help flag activities that may require additional scrutiny, such as an excessive number of voids at the POS or unusual activity by the back door.

“All of this data is great, but if it’s not utilized and if it’s not understood then it’s not worth anything,” Gonzalez said. “That’s where the consultation piece comes in. We can work with an operator to help leverage this data into actionable insights.”

Turning information into results Speaking of those insights, there are a number of ways operators can use the information generated by the DTiQ solution to improve operations and ultimately, increase sales and profits.

At the store level, they can identify the employees who are performing the best, use them as examples and reward their behavior, while also identifying those who are not meeting expectations and set them up with additional training.

Operators can also take an enterprise-level view, comparing costs and performance across several locations and/or markets in real time via a Web or mobile browser, identifying both top-performing locations and those that may need additional support. Data can be aggregated for all locations, including multiple brands, on a single dashboard. That dashboard can be customized by the operator, with reports automatically delivered to the appropriate stakeholders.

The DTiQ solution can also incorporate professional auditing, giving operators a detailed snapshot of what’s happening in their restaurants, with photos and links to video for confirmation. Management can even use those audits as an incentive, tying awards, days off or bonuses to audit scores to create staff buy-in.

“Our customers are owners or operators that want to run a better store or restaurant,” said Mike Coffey, CEO of CTiQ.

“They’re being asked to do more with less, and they’re competing in a changing landscape,” Coffey said. “We help them measure the real customer experience. We identify which employees are engaged, deliver loss prevention services and can even interact in real-time remotely. We do this with the best technology, using a true ‘mobile first’ experience, with state-of- the-art surveillance equipment supported by cloud-based analytics and artificial intelligence.”

Today’s business owners are savvy professionals. They’re always looking for new and improved methods of driving revenue, and speed of service is a critical component of the process. SOS is based on time and how fast a particular action can be performed.

It’s important for operators to not only monitor these times but also to compare them. The DTiQ solution can help by providing statistics and trends for locations and enterprises, and assisting operators with turning that information into action. What to measure across restaurant types QSR • Length of time taken for customer to enter and exit the restaurant with a takeout order. • Length of time taken for customer to enter the restaurant and place their order. • Length of time taken for customer to receive their meal after placing the order. • Length of time customer waited to arrive at order confirmation unit in the drive-thru. • Length of time customer waited to arrive at the pay window after ordering in the drive-thru. Fast casual • Length of time taken for customer to enter and exit the restaurant with a takeout order. • Length of time taken for customer to enter the restaurant and place their order with a cashier. • Length of time taken for customer to receive their meal after placing the order with a cashier. • Length of time taken for employee to clean and clear a dirty table. Full service • Length of time taken for host/hostess to greet customer. • Length of time taken for waiter/waitress to take their order. • Length of time taken for customer to receive their drink order. • Length of time taken for customer to receive their meal. • Length of time taken for customer to receive their guest check. • Length of time taken for waiter/waitress to return with receipt. • Length of time taken for customer to receive drink order at bar.

Source: Ky Gray, sales engineer. DTiQ

About the sponsor: DTiQ improves how restaurants and retail locations are managed. It is the world’s leading provider of intelligent video-based surveillance and loss prevention services; combining state-of-the-art surveillance equipment with advanced, cloud-based analytics and managed services. DTiQ has been in business for more than 20 years, enhancing more than 8 million consumer experiences daily, while protecting trillions of dollars of assets. DTiQ has more than 45,000 customers including corporations and/or franchisees such as Adidas, Burger King, Charming Charlie, Dairy Queen, Golf Town, Hard Rock Café, KFC, McDonald’s, Pandora, Subway, Swarovski, Taco Bell, US Polo, Vineyard Vines and Yankee Candle. For more information, visit www.DTiQ.com