Foodservice by Design

Team members from Profitality-Labor Guru discuss how industrial engineering can be applied to the foodservice industry.

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From Tech to Impact: Optimization Tactics for Real Results

Foodservice operators can choose from countless technologies that promise to drive performance improvements. But turning that technology’s potential into positive impact, like enhancing the speed of service, reducing labor costs and improving product consistency, is easier said than done.

Success doesn’t come from technology alone – it also depends on how well it is implemented and integrated into daily operations. Coming up short in either of these areas will limit the impact of any technological solution.

That’s one reason when discussing potential technology-based solutions, we often hear, “We tested it, but saw no impact.” More often than not, though, the issue isn’t with the technology itself but with the lack of clear labor guidelines and operational adjustments that support it.

Let’s look at a real-world example: the use of artificial intelligence at the drive-thru. This technology continues to gain momentum, and for good reason. It replaces employee time and effort with a highly accurate, labor-free solution for taking orders.

But simply retrofitting AI into a restaurant without redefining labor responsibilities or updating labor deployment guidelines is unlikely to result in meaningful improvements. The operator may not see any impact on labor costs or speed of service. While crew members may appreciate the reduced workload, especially during busy times, employee satisfaction alone isn’t enough to justify a system-wide rollout.

So, how do you ensure a technology-based initiative delivers measurable impact?

The best method is to build and use an activity-based labor model, allowing you to establish a clear baseline and measure the real effect of the innovation on labor efficiency and costs.

Here are some best practices:

  • Identify and establish time standards for every activity within the operation. Use time studies, professional time estimates, or other validated methods to create reliable expectations.
  • Develop labor guidelines customized to the concept’s unique characteristics, such as product mix and revenue center volume. In doing so, calculate variable labor in 15- or 30-minute increments for guest-service-driven tasks. Define both fixed and variable labor needs for tasks driven by daily or weekly volumes.
  • Incorporate new initiatives into labor models by updating parameters and activity times. This allows you to estimate the potential return on investment before entering a full testing phase.
  • Equip locations with updated labor deployment tables, broken down by day and in half-hour increments. This ensures they can realistically achieve the projected gains during the test phase.

All the above represent essential steps when setting up success, but the real test occurs when applying those guidelines in the field. As part of testing the solution, consider the different variables that may come up while applying the technology and its impact on the entire operation. Everything can work great on paper and in the corporate test kitchen, but if it doesn’t work at the store level, the test will fail.

Here are some variables to consider when rolling out an initiative:

  • Pilot locations: Identify the appropriate number of locations to test the technology and be sure to include a mix of high- and low-volume locations.
  • Peak vs. off-peak periods: Minimum deployment or the ability to have the same employee slide between the different workstations during low-volume periods plays a key role in the success of an initiative. While the goal is often focused on reaching higher throughput during peak periods, most concepts spend 70% to 80% of their operational hours in what they would consider off-peak periods.
  • Daypart and employee skill levels: As is often the case, afternoon and night dayparts are often staffed by inexperienced workers. This can have an impact on the success of the test if the instructions are not followed properly.

As the test runs continuously, track key performance indicators and make sure the project team has the full support from corporate leadership should any questions or needs arise. It is also extremely important to get feedback from the pilot locations, not only from the district managers, general managers, etc., but also from the crew working in the participating units. Crew members are the ones working day and night and, in many cases, they can provide the insight necessary to make that small tweak which often makes or breaks the test.

By embedding these practices into your operations, you can bridge the gap between innovation and measurable outcomes, ensuring that your investments in new technology truly move the needle.