In this episode of The Tip Share, we wrap up the final segment of our 3-Part QSR miniseries on growth strategies. During Part One, we spoke about how leveraging technology can help operators actually reduce costs and improve efficiencies in today’s current industry climate, and covered the various types of tech that operators are utilizing to grow their businesses. Last week, in Part Two, we spoke about labor management and the impact that technology has on labor control at the store- level and also at the home office level. We also discussed how technology has been used to either supplement home office personnel or allow for scalability, and also the capabilities in the market that offer consolidation of technology systems, which have the opportunity to reduce IT costs/management time, decrease human error in data transmission, and streamline reporting. During today’s final miniseries episode, Brad Bertram, RASI Director of Partnerships, and Delaget’s Don Kreye, Director of Partnerships, and Don Bye, Client Success Manager, hone in on the 3 types of future growth within the QSR industry:
- Financial Growth
- Rooftop/Acquisition Growth
- Brand Diversification
HOW CAN OPERATORS UTILIZE TECHNOLOGY AND AUTOMATION FOR FINANCIAL GROWTH?
The largest financial impact that automation and technology can have comes first from an operator reviewing their current systems and dissecting out where they can consolidate some of those systems into one holistic view, versus taking on more systems and therefore trying to manage more. Having a holistic system will directly influence the financial health of a franchisee right now through 3 areas:
Automation speeds up the time it takes to create reports and also the financial statements, which provides clarity on where an operator’s opportunities may lie. It also provides faster insights into the business, providing management teams direction on where they need to spend their time and equally as important, enabling management teams the flexibility to act more quickly on profitable business decisions, whether that’s in regard to labor, COGS, or other major facets of the restaurant.
Focus on growth stems from three components: Consistency, Accuracy, and Timeliness in financial deliverables. Allowing owners and operators to correlate decisions with accountability in a weekly P&L. Let’s face it, if you’re waiting two weeks past-period end even worse, month-end to understand your cash position, you’re going to be stuck rearranging deck chairs while the Titanic is sinking.
Brad Bertram, RASI Director of Partnerships
HOW HAVE FRANCHISEES SCALED THEMSELVES THROUGH THE USE OF TECHNOLOGY INNOVATION?
Automation allows operators to focus on managing the parts of the business that can directly affect revenue and guest experience, instead of having to hire and train and recreate new systems related to growth; it’s allowing the operator more time to become extremely active within the actual operations, ensuring that each guest receives a great experience, and enables the operator the ability to effectively manage the metrics/KPI’s that they deem most important for their business.
As franchisees are looking to build more locations or make acquisitions, they’re evaluating all the different technologies that are currently in those locations already, and it’s crucial for them to understand, what technology they’re going to potentially need to add with those new locations and how they can consolidate what’s already there. Can they work with fewer vendors? Can they ensure multiple systems talk to each other across store-levels? When operators are finding bits and pieces about their business from fragmented systems, they never truly get the full picture, which ultimately prevents them from being as successful as they should be.
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HOW CAN PROVEN SYSTEMS ASSIST WITH EXISTING FRANCHISEES GROWING INTO NEW BRANDS?
Through 2020, there were major impacts on how restaurants operated, and a number of emerging brands actually established themselves quite well – from focusing on takeout/delivery to drive-thru comfort foods, and countless franchisees are stretching their legs in new restaurant concepts or service styles as the opportunities arise.
Choosing a third party that has experience in working with different POS systems, and knows how to translate the data for an operator, and is familiar with the brand’s KPIs is a major leg-up when an operator is working to expand into a new brand.
It’s important that there’s no downtime to get new systems up and running, that the team is going to have direct insights into the KPIs for the new brand immediately – this gives the operation a single source of truth for where the data stems from, and keep the team laser-focused on the task at hand.
Being able to do more with less as franchisees expand into new brands is critical to success. The consumption of data and being able to merge all the different points of information coming in from multiple concepts or multiple locations both on the input side, but also having that output from a financial reporting site.
The key is being able to manage multiple concepts, all while being able to drill into individual store performance so that the store-level management is held accountable for the decisions they make as they impact food, beverage, and labor costs.
Our unique service position of working with both franchised and independent operators allows us the flexibility to homogenize data across multiple concepts. Offering restaurant financial reporting from a holistic business perspective all the while being able to drill into individual store performance in order to keep every member of your team that impacts your COGs accountable.
Brad Bertram, RASI Director of Partnerships