CEOs, COOs share what the boss wants from technology at FS/TEC 2007

Catherine R. Cobb

ATLANTA -- Concerned that its lagging speed of service was putting it at a disadvantage compared with quick-service competitors, the 400-unit Zaxby's fast-casual chain turned to next-generation drive-thru timers that are integrated with its point-of-sale system.

Robert Baxley, chief operating officer of Athens, Ga.-based Zaxby's, said the timers helped his operation spot and correct drive-thru problems, which allowed the chicken specialty chain to reduce service times and broaden its customer base.

"We've lowered drive-thru times 33 percent in one calendar year," Baxley told attendees of the FS/TEC 2007 conference here this month during its "Feedback from the Top" CEO/COO panel.

"We always had the high-quality [food] expected by guests at a fast-casual chain, but our speed of service lagged behind traditional fast-food operators. Now we feel that we are competitive."

Daniel Pittard, chief executive of Rubio's Restaurants Inc., said the Carlsbad, Calif.-based parent of the 170-unit Rubio's Fresh Mexican Grill brand had also invested in higher-tech drive-thru timers. Additionally, Rubio's spent money on software and kitchen display screens to simplify the customization of orders, he said.

Joining Baxley and Pittard on the panel were James J. Greco, chief executive of Burlington, Vt.-based Bruegger's Enterprises Inc., and Robert Grimes, chairman and chief executive of Accuvia and co-chairman of FS/TEC. Grimes is also chief executive of Capitol Fresh LLC of Potomac, Md., a new multistate developer for the Fresh City buffet chain.

[ILLUSTRATION OMITTED]

Greco said his company's 269unit Bruegger's Bagel Bakery chain recently rolled out a new POS system, which took about a year and enabled Bruegger's to collect data more efficiently and in ways it couldn't before.

Bruegger's, Greco said, also had a computer-based site-selection model created to help it identify the best locations for new units.

"We would look at a return on investment for tech as similar to any other capital project," Greco said, adding that the usual target would be "15 [percent] to 20 percent [return on investment] with a three- to four-year payback."

Baxley said technology investment decisions at Zaxby's center around the answers to these three questions: "Does it add to the bottom line? Will it enhance the guest experience? Does it enhance the work environment ... and give the tools and skills employees need?"

Grimes of Capitol Fresh said his preinvestment questions include these: "What will it do for the business today? Is this a strategic move to impact the customer's experience?"

Desirable technology, Grimes said, is in keeping with trends, not fads, and, if aimed at guests, should "increase customer count and time spent in the restaurant."

Foodservice chief information officers, or CIOs, must "focus on the core technology [needed] to run the business," Grimes said. He said he outsources anything not core to his business, such as email and phones.

Pittard said a new CIO could expect to spend his first day at Rubio's reviewing the company's overall strategy and identifying key areas that may be enabled through the use of technology.

"I am fortunate because I have [an IT] person that comes to me with ideas, and he thinks outside the box," Zaxby's Baxley said.

Discussing where operators should or shouldn't employ technology, Grimes said: "Technology is the enabler, not the thing that runs our business. Yet it is going into every facet of the environment, including the restroom [where] sinks [can] let you know whether employees have washed their hands or not."

Greco said technology can benefit most areas, particularly backoffice operations like scheduling and purchasing.

"Technology is about providing information, so it can make you more efficient in terms of seeing where costs are higher than they should be," he said.

Still, Greco is not certain the "next generation" of technology always has a payoff.

"We are constantly focused on five- to seven-year life spans for software," he said, "but it is not always an improvement that justifies its expense."

Baxley said that when deploying technology, operators should first ask if employees are ready for it and if the hardware or software has the potential to adversely impact the guest experience.

"Sometimes it gets a little out of hand," he said.

[ILLUSTRATION OMITTED]

Pittard told attendees to "make sure [new technology] blends with what you want to project."

All the panelists said they were considering new ways to train.

Grimes said he is looking at online training to give employees flexibility related to when and where they train and to provide his company with a way to track individual training progress.

Bruegger's training is Web-based and developed in-house, Greco said, adding that the chain participates in Elliot Institute programs.

Baxley said his company's Internet-based training now is primarily used by store-level managers.

"It is lots of fun and games and focuses on how the adult mind learns and absorbs information," he said.

Pittard said: "The cost of technology has plummeted over the last few years, so we can have interactive training with live instruction. That is the way of training for the future."

ccobb@nrn.com

COPYRIGHT 2007 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning