Driving Operational Excellence

Sponsored by Kronos Incorporated
Tags: Back Office, Operations Management, Software - Labor Management, Staffing & Training
Type: Guide
Overview|Table of Contents|Intro|Download

In the worst of times — and in the best of times — increasing in-store efficiencies within the always-tight restaurant operating margins is vital to remaining competitive in the ferocious feed-or-be-eaten quick-service industry. Such concerns are even more important given the economic uncertainty of the past few years.

And often, the public face of a QSR operation belongs not to the owner or unit manager, but to the hourly employee working behind the counter.

Quick-service restaurant operators are increasingly turning to innovative solutions to hire the best people, tighten operational efficiency and save money in areas where the traditional standing dictum of "business as usual" just isn't good enough anymore.

So they’re looking in previously overlooked or simply underexamined areas to squeeze the most out of every penny and drive increased productivity — areas like workforce management.

Workforce management issues, such as the QSR industry's prodigious turnover rates, are moving closer to the forefront as companies scour their spreadsheets looking for opportunities for improved efficiencies and cost savings, and workforce management companies are finding innovative ways to help operators leverage technology into more streamlined — and efficient — labor practices.

QSR operators are also planning for an eventual economic rebound from the turmoil of the past few years. Jeff Maier, industry principal of retail hospitality industry marketing for workforce management solutions provider Kronos Inc., based in Chelmsford, Mass., says the company's QSR clients are preparing now to return to hiring mode.

"Organizations today recognize that as we are on the cusp of a recovery from a devastating recession, they need to prepare their organizations for the increase in demand that will follow when consumer spending returns," he said.

QSRs must find avenues for managing rising labor costs — for instance, by automating and streamlining heretofore time-inefficient processes and making smarter hires, maximizing the productivity of the workers they do hire; by scheduling more intelligently and keeping workers' job satisfaction and performance high; and continuing to control the once sky-high turnover rates and retain their best employees by finding ways to keep workers happier while also serving the needs of the business itself.

It's also becoming ever more important to find simpler ways to keep track of the sometimes-byzantine labor laws and regulations that govern scheduling overtime pay, leave and other factors to keep from paying out potentially tens of millions of dollars in fines and settlements.

And companies like Kronos, which provides software solutions to streamline everything from the employee application process to scheduling procedures to payment processes, are vigorously looking to fill these niches in the industry and save QSR operators money.

Labor costs are going up, and they're likely to keep going up. Wages aren't likely to go down, so operators have to find other ways to find savings in this area without passing the costs onto their customers. Streamlining the application and hiring process can help, as can hiring smarter, or doing a better job of hiring the right person for the right position.

Labor laws are getting more complex, and they're not likely to get any simpler any time soon. Scheduling software solutions from workforce management companies can help operators stay within the law when scheduling and paying for overtime — and avoid costly penalties — while also saving managers time, allowing them to be on the floor instead of in the office, and thus making them more productive.

Workforce productivity has always been a key point of importance for operators, and that's no likely to ever change. But automating and streamlining employee management processes and using technology to find better ways to make sure the right person is doing the right job, for them and the company, at the right time are simple and obvious ways to squeeze even greater efficiency out of this critical issue.

Keeping customers happy and coming back continues to be vital for success in the QSR industry. Labor solutions can even help with this, by leveraging technology into better customer service from happier and more productive workers and into reduced turnover and increased employee retention rates, which equal more experienced, savvy workers.

What follows is a closer look at each of these critical business issues.