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e*Restaurant® from Altametrics® Return on Investment How e*Restaurant from Altametrics Enterprise Food Service Solutions Add to the Bottom Line and Increase Profit Margin
Introduction
Over the past decade, improvements in computer hardware, software, and technical infrastructure have improved drastically. From the availability of the internet to the abundance of powerful, yet economical, personal computers, more companies are adopting technology to improve business efficiencies. Many companies today have a fully implemented solution and are seeing significant improvements in productivity, operational efficiency, and strategic planning capabilities.
e*Restaurant from Altametrics recognizes this rapid growth and what it means to its customers. The company is committed to delivering the very latest and most flexible software available to its customers that gives them a great return on investment. e*Restaurant from Altametrics Suites are scalable and highly flexible web-based solutions that are delivering millions of dollars in ROI to thousands of restaurants around the world. e*Restaurant from Altametrics clients have reported ROIs between 900 – 1,300% in the first year.
What is e*Restaurant from Altametrics?
e*Restaurant from Altametrics offers several business management solutions (Back Office Suite, Supply Chain Suite, Workforce Management Suite, and Business Intelligence Suite) that are affordable, easy to use, and designed specifically to help restaurant chains of all sizes work more productively. As a result of the business solutions, many of e*Restaurant from Altametrics’ customers have stated that they have been able to operate more profitably, improve guest service and value, effectively integrate with other business applications, and easily access information to make informed decisions.
e*Restaurant from Altametrics is ideal for midsize companies ready to move beyond basic food cost solutions and spreadsheets to large international organizations that need real time access to enterprise data and want to consolidate outdated mainframe systems. e*Restaurant from Altametrics helps you get up and running quickly, scales as your business grows, and offers reliable web based access and industry leading training and support. Trusted by major players throughout the industry, such as Wendy's International, California Pizza Kitchen, Chipotle (a unit of McDonald’s), JD Wetherspoon, Baja Fresh, Max and Erma’s, and Creative Host Services, e*Restaurant from Altametrics has been designing and deploying foodservice infrastructure solutions renowned as best-in-class in performance, since 1997. e*Restaurant from Altametrics combines software design with comprehensive consultancy and support services for business critical applications.
Achieving ROI
All corporate executives make capital investments based on the anticipated return on investment. Technology investments are no different in that companies must understand the areas within the organization in which it can generate value. This requires a clear outline and execution of the implementation and integration plan. In the case of e*Restaurant from Altametrics enterprise solutions, many customers have seen significant returns on their investment through reduction in food costs, reduction of labor costs, and increased revenue.
When fully implemented, many customers realize savings between 3% and 6% of revenue. The net impact to a restaurant’s bottom line can be quite significant, where net margins typically run between 2% to 5%. The chart below outlines the impact to a restaurant based on 5% net margins.
Annual Sales Projected Savings Profit Margin Impact
($ millions) (as a percentage of revenue)
3% savings 6% saving 3% savings 6% saving 10 $300k $600k + 60% + 120%
50 $1.5 mil $3.0 mil + 60% + 120%
100 $3.0 mil $6.0 mil + 60% + 120%
1,000 $30.0 mil $60.0 mil + 60% + 120%
Reduction in Food Costs
Controlling food costs expenses can have a major effect on your bottom line. e*Restaurant from Altametrics solutions offer unique features and functionality, all in one user interface, that can dramatically reduce food cost. The typical client experiences a 2 - 5% food cost savings. What are some of your challenges and how can you benefit from e*Restaurant from Altametrics?
Food and Inventory Management Opportunities
Excessive Time
• Manually calculating order amounts
• Placing orders on web site/called in to distributor
• Taking physical inventory counts
• Inconvenience caused by call-in schedule
• Identifying major problems
• Using resources more effectively
• Training inconsistent
• Recording and reconciliation of transfers Inaccuracies
• Order amounts
• Incorrect Physical inventory counts
• Lack of standard ordering methodology
• Non-integrated systems
• Non existent waste tracking
• Poor communication with Distributor
• Lack of forecasting tool
• Poor or inaccurate accounting of transfers Other benefits include:
• Reduction of inventory levels by about 30% (achieved through more accurate ordering)
• More accurate prep and production requirements Reduction of Labor Cost
The reduction of labor cost is very important to large and small businesses. Labor is typically one of a restaurant’s largest expenses, along with food and facilities. e*Restaurant from Altametrics typically reduces labor dollars spent by 1.0 - 1.5% of gross sales through several automated features and management tools. Based on industry averages, a 1.5% reduction in labor costs results in a 30% improvement in profits. Average Weekly Restaurant Labor Reductions:
Laborhours Annual per Store ROI Description
Prep 3.5 hours $26/wk $1352 .5 hr/day in open due to reduced over prep
Labor 2 hours $15/wk $780 Reduced admin time from 4 to 2 hours to write schedule
Redbook 2 hours $15/wk $780 20 min (Cash Envelope/P&L/Nightly reporting) x 7 Days
Food Mgmt. 2 hours $15/wk $780 Reduced time creating, submitting, and receiving food orders.
Total 9.5 hours $71.25/wk $3692 Administrative Time Savings
e*Restaurant from Altametrics improves administrative staff efficiency as labor and accuracy improvements are translated to the corporate office. Less time is spent solving problems with payroll, following up on reporting of sales, and correcting math errors. Time savings are also realized as a result of e*Restaurant from Altametrics’ extensive integrations to other business critical systems. Accounting Benefits
• Payroll and HR automation
• Accounts Payable automation
• Cash and Sales integration
• Inventory posted to GL accurately and timely
• Transfers reconciled automatically
• Near real-time single source P&L
• Eliminates duplicate data entry and auditing Business Intelligence Benefits
• Single unified information repository for data mining and business intelligence
• Facilitates business planning and forecasting Supply Chain and Procurement Benefits
• Automated auditing of price and contract compliance
• More accurate demand planning Multi-Unit Supervisor Benefits
Multi-unit supervisors have immediate and up to date access to all business critical information. e*Restaurant from Altametrics eliminates the need to manually report key stats via fax, or voice mail. The information your supervisors need to drive performance is at their fingertips without the need of an assistant or accountant to compile it for them. Clerical Time Savings
Freeing your staff from repetitive data entry and transforming them into knowledge workers adds value to your business. Instead of processing information corporate staffs are now able to focus on key business drivers and alert you to the information most important to you. Clerical time savings range from 25 – 50%. Reduced Communications Cost
Telecommunications:
Every time one of your managers sends a fax, voice mail, or calls someone for information it costs money. Costs include labor costs as well as telecommunications costs. Using e*Restaurant from Altametrics customers have been able to reduce telecommunications costs by $50 - $200 per month per location. Printing, Handling, Mailing:
When a document, procedures manual, job aid, marketing material, or other printed item is sent to a location the costs may be higher than you think. Costs eliminated by e*Restaurant from Altametrics include: • Printing
• Storage
• Order Processing
• Handling / Packing
• Mailing These savings can add up to hundreds of dollars per location per year depending on your printing and mailing volume.
Increased Revenues
Revenue increases are typically achieved due to a number of factors including: improved customer service, reduced employee theft, and better internal service (thus improving the service profit chain). Revenue can increase from 1 - 3%. What does this mean to you? Use the table below to estimate your annual revenue increase.
Annual Sales Increased Revenues (3% Sales Increase)
1 M $30,000
5 M $150,000
10 M $300,000
100 M $3,000,000
Revenue Increase Sources • Price optimization
• Improved menu mix using PMIX menu analysis
• Improvements in customer service
• Redirection of labor used for back office tasks and paperwork to front of the house tasks improving customer service (i.e. improving speed of service, employee training, meeting QSCF standards).
Conclusion
The architectural benefits of mapping business processes make e*Restaurant from Altametrics the most state-of-the-art enterprise foodservice software solution. With innovative flexibility and scalability, e*Restaurant from Altametrics can save an organization millions of dollars in leveraged investments, saved training expenses, eliminated downtime, and more.
The e*Restaurant from Altametrics’ software suites are an excellent fit for any organization. Whether you're large or just starting out, e*Restaurant from Altametrics leverages existing architectures and databases, is flexible and completely scalable to grow as you grow. e*Restaurant from Altametrics is also standards based, making it among the most robust and secure systems on the market. More information on e*Restaurant from Altametrics
For additional information on e*Restaurant from Altametrics, please call 1-800-676-1281, or visit us on the World Wide Web at http://www.Altametrics.com
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