Article

Surveillance integration

New technologies are making it easier to mind your store and your revenue.

October 24, 2007 by Valerie Killifer — senior editor, NetWorld Alliance

When cash registers were king and in-store surveillance included a video camera that may or may not have been on, restaurant operators had little reinforcement when a questionable transaction took place.

 

But in the last 10 years, several technology breakthroughs have made it easy for operators to mind the store, and every transaction that takes place in it, from anywhere in the world.

 

Leading the technology revolution was the introduction of Microsoft Windows 98 and the transformation of recordings from VHS to DVR (digital video recorder), said Sam Naficy, cofounder of Los Angeles-based DTT Surveillance. DTT provides surveillance solutions to 5,000 McDonald's and 2,000 Subway locations, and recently sold its 20,000th solution.

 

Surveillance software has been updated to integrate into a restaurant operator's point-of sale system, providing real-time transaction monitoring capabilities.

 

"That really transformed the industry because now you can search for a void or you can search for a $100 bill, and not only find the data of that, you can also see the video," Naficy said.

 

Earlier this year, DTT launched SmartV.I.E.W., a convergence program designed to enable single or multiunit restaurant operators to view real-time video of operations, point-of-sale transaction detail, employee time and attendance data, and temperature, weather and traffic information for each location.

 

"So a guy who has 50 Panera Breads and sees transactional accounts plummet, we give him real-time traffic reports that show maybe congestion or accidents led to [the decline]," Naficy said. "It also provides weather reports and clients can add items to their menu because of weather changes. We really think this is where integration is going to be the focus."

 

Naficy isn't alone in his thinking. Louisville, Colo.-based Envysion Inc. spent the majority of 2006 developing its latest Web-based video-management system, said Matt Steinfort, company president and chief operating officer.

 

In May, Chipotle Mexican Grill partnered with Envysion to deploy the system in all Chipotle locations. At the time, Chipotle Chief Operating Officer Monty Moran said the system will help the more than 600-unit chain better serve its customers and employees.

 

The system is integrated into Chipotle's POS, giving executives and operators the ability to access live or recorded video from any remote-management location. Theprogram also provides reporting and alerting functionalities across all of the company's locations.

 

"It's much more of an enterprise-wide solution, Steinfort said. "It will return 20 individual voids and you can see the video associated with [each transaction] to get the most relevant information."

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Additionally, videos can be saved to a Web-based back-office network, giving operators the ability to save and share clips.

 

"If one store is performing better than others, you can share a video of their operation with the rest of the system," Steinfort said. "Training, marketing and human resourcesdepartments can also leverage the system to build best practices."

 

The day-to-day

 

While no restaurant operator wants to have a dishonest employee, theft does occur at the hands of hired help.

 

POS-integrated surveillance software can help operators track employee meals and any other transactions that takes place where the cash drawer is open but no money changeshands. The system also can help restaurant operators fight against dishonest customers or aid police if a theft occurs.

 

The company can establish a list of rules and regulations in regard to what an operator wants to track, such as employee meals.

 

"If I'm interested in how many 'no sales' occurred last night, every time a 'no sale' happens we attach it to an audit trail," said David Goffnet, chief operating officer ofFireKing Security Group."An operator can click on each entry and connect directly to the video, but you would have to have the camera looking directly at the cash register."

 

New Albany, Ind.-based FireKing Security Group manufactures digital video recorders such as the company's Image Vault, and has the ability to integrate with more than 130 POS systems. The company's target customers is quick-serve restaurant operators.

 

In addition to a sales increase, Goffnet said employees are put on notice as well when a remote-management system is installed, which makes employees more apt to be honest.

 

"Once an employee figures out a way to steal, it's sort of like virus protection with PC's — hackers are always looking for new twist," he said. "Obviously we can't anticipate new ways of stealing, but once we figure it out we can address it. When operators see that kind of money walking out the door, that gets their attention."

 

Naficy, Moran and Goffnet agree the industry will move toward more integrated-surveillance technology.

 

"All these tools help to manage restaurants quickly and allows operators to be in more places at once," Naficy said.