Chapter 22: Computers and Food Service Operations
Computers are here and integrated into every facet of the food-service industry: tracking sales and purchases, tracking inventory, comparing prices, maintaining ledgers and payrolls, developing menus, and minimizing food waste. According to a study commissioned by 13 U.S. and Canadian food-related associations, implementation of an efficient computer-based food-service response program could trim an estimated $14.3 billion in costs annually from the food-service industry in the two countries alone.
The resulting program, Efficient Foodservice Response, creates a paperless kitchen, linking buyers to distributors via the Internet. Food and supplies are ordered online and paid for by electronic transfer. Participating vendors tag goods with bar codes that are read by laser scanner. At the food-service operation, information is immediately stored in an in-house computer and the computer’s inventory database is instantly updated. Benefits are across the board: precise inventory management, timely deliveries, reduced warehouse levels, and increased kitchen work space.
Let us take a closer look at how computer hardware and software will serve and benefit the food-service industry and glance at what options and features you might have.
The official definition of “PC” from www.pcwebopedia.com:
Short for personal computer or IBM PC. The first personal computer produced by IBM was called the PC and increasingly the term PC came to mean IBM or IBM-compatible personal computers, to the exclusion of other types of personal computers, such as Macintoshes.
In recent years, the term PC has become more and more difficult to pin down. In general it applies to any personal computer based on an Intel microprocessor or on an Intel compatible microprocessor. For nearly every other component, including the operating system, there are several options, all of which fall under the rubric “PC.”
Common questions are: What kind of computer should I get? How much RAM? How fast should the CPU be? Should I get Pentium or Athlon? What brand and what size monitor? What type of video card? Should I get a dial-up connection, DSL, or cable modem? What are the best accounting packages for the computer?
These are difficult questions and today’s answer will be out of date in six months. The best advice on what type of computer system to purchase for your restaurant is, simply, to get the most powerful computer system that is within your budget. Here are some considerations:
• CPU speed. The CPU is the engine of your computer; the faster the engine, the greater its performance. I recommend a processor built for future growth capacity. The fastest your budget will allow is recommended.
• RAM. RAM is the temporary storage place for all information on your computer. The fastest RAM is the best to get and I recommend nothing less than 256 Megabytes (MB) on each computer; at least 512 MB RAM per workstation is preferable.
• Operating system. I recommend Microsoft Windows XP Professional Edition. This system provides stable operating platforms and superior networking capabilities.
• Monitor. I recommend 17” or bigger. (19” is my preferred standard.) You have a lot of choices in brands, as well as flat screen and LCD-screen varieties. I prefer 19” flat screen or 17” or larger LCD monitors.
• Graphics card. For business applications I recommend a graphics accelerator card with a minimum of 40 MB of RAM. There are dozens to choose from depending on the application, with chipsets from various manufacturers. My favorite for its great business and gaming performance is any card based on the Geforce Chipset.
• Athlon vs. Pentium. Both are world-class processors. There are die-hard fans of each.
• Dial-up, DSL, or cable. If you need high-speed connections, you want DSL or cable (if they are available in your area). Dial-up is the least costly but slowest type of connection. For the average Web browser, dial-up is usually sufficient. For power users, I recommend DSL or cable. Note: If you use a broadband connection, invest in a DSL/cable router or a good firewall software application.
• Networking. If you have more than one computer you will want to network your computers, allowing you to share programs, files, printers, Internet connections, and more. There are dozens of networking systems available, including standard wired networking, phone-line networks, and wireless networks. There are advantages to each. Standard wired networking is the fastest, but requires extensive cable installation in your building. Phone-line networks offer good performance, low cost, and use the existing phone lines in your restaurant to make network connections. Note: You can still talk on your phone while your network is being used. Wireless networking is the most costly, but highly versatile. It requires no cable installation and is very effective. The major advantage of wireless is you are not limited by phone lines or network cable. You can take your wireless laptop anywhere in your restaurant and maintain your network connection.
• Platform. Essentially Windows vs. Macintosh. A few years ago DOS-based systems would have been in the mix, but those software applications are antiquated by current industry standards. The choice is yours to make. Obviously, your hardware preference will select your software platform. In my opinion, the Windows-based operating systems and Windows’ overall available software packages and long-term industry support make it the best choice.
FRONT-OF-THE-HOUSE COMPUTER SYSTEMS
POINT-OF-SALE SYSTEMS
The most widely used technology in the food-service industry is the touch screen, or POS (point-of-sale), system. The POS system is an offshoot of the electronic cash register. Touch screen POS systems were introduced to the food-service industry in the mid-1980s and have penetrated 90 percent of restaurants nationwide. From fine-dining establishments to fast-food, the touch screen is effortless. Understanding the numbers collected by a POS system will give the operator more control over inventory, bar revenues, labor scheduling, overtime, customer traffic, and service. Understanding POS ultimately clarifies the bottom line, knocking guesswork out of the equation.
A POS system is comprised of two parts: the hardware, or equipment, and the software — the computer program that runs the system. This system allows wait staff to key in their orders as soon as the customers give them. Additional keys are available for particular options and specifications — “rare,” “medium-rare,” and “well-done.” Some systems prompt the wait staff to ask additional questions when the item is ordered, such as, “Would you like butter, sour cream, or chives with the baked potato?” Some will suggest a side dish or a compatible wine.
The order is sent through a cable to printers located throughout the restaurant: at the bar and in the kitchen and office. All orders must be printed before they are prepared, ensuring good control. When a server has completed the ordering, a guest check can be printed and later presented. Most POS systems allow certain discounts and require manager control over others. Charge cards, cash, and checks can be processed separately and then reports can be generated by payment type.
Some benefits of using a POS system:
• Increases sales and accounting information.
• Custom tracking.
• Reports wait staff’s sales and performance.
• Reports menu-item performance.
• Reports inventory usage.
• Credit card purchases.
• Accurate addition on guest checks.
• Prevents incorrect items from being ordered.
• Prevents confusion in the kitchen.
• Reports possible theft of money and inventory.
• Records employee timekeeping.
• Reports menu-sales breakdown for preparation and menu forecasting.
• Reduces time spent walking to kitchen and bar.
As the labor market continues to diminish, touch screen POS systems will become necessary. It has been predicted that in the next few years customers may even place their own orders. Terminals will be simply turned around. During peak seasonal periods, ordering food may be like pumping your own gas; customers will key in their own selections and then slide their credit cards through to pay.
Many POS systems have been enhanced to include comprehensive home delivery, guest books, online reservations, frequent-diner modules, and fully integrated systems with real-time inventory, integrated caller ID, accounting, labor scheduling, payroll, menu analysis, purchasing and receiving, cash management, and reports. Up-and-coming enhancements and add-ons include improved functionality across the Internet, centralized functionality enabling “alerts” to be issued to managers, and voice-recognition POS technology.
STAND-ALONE SOFTWARE APPLICATIONS
Although there are literally dozens of software packages available to assist the restaurant manager, this discussion will concentrate on what I consider to be the current market leaders. It will provide some insight as to how they work, what they can do for your restaurant, and what benefits you will realize if you include them in your restaurant-management practices. These systems are what I refer to as “stand alone,” as they are not part of a POS system:
CHEFTEC
ChefTec is an integrated software program with recipe and menu costing, inventory control, and nutritional analysis.
• Recipe and menu costing. Store, scale, and size an unlimited number of recipes. Write recipe procedures with culinary spell-checker. Instantly analyze recipe and menu costs by portion or yield. Update prices and change ingredients in every recipe with the touch of a button. Cost out bids for catering functions. Attach photos, diagrams, and videos to bids or add pictures of plate lay-out to recipes for consistency.
• Nutritional analysis. Preloaded with USDA information. Add your own items. Calculate nutritional value for recipes and menus. Provide accurate, legal information on “low-fat,” “low-salt,” etc. Print out “Nutrition Facts” labels. The nutritional-analysis module will get a quick and accurate analysis of nutritional values for up to 5,000 most-commonly-used ingredients. Allows you to add your own specialty items. Calculate nutritional values for your recipes and menu items. See at a glance which menu items are low-fat, low-calorie, etc.
• Inventory control. Preloaded inventory list of 1,900 commonly used ingredients with unlimited capacity for adding additional ingredients. Import purchases from online vendors’ ordering systems. Track fluctuating food costs. Compare vendor pricing. See impact of price increases on recipes. Automate ordering with par values. Use handheld devices for inventory. Generate custom reports. The inventory control module allows you to track rising food costs automatically. Compare vendor pricing at the touch of a button, from purchases or bids. Enter invoices quickly using the “Auto-Populate” feature. Generate customized reports on purchases, price variances, bids and credits, physical inventory, and ordering and maintenance of par levels. Lists ingredients in different languages (Spanish, French, German and others).
• ChefTec PDA is also available. ChefTec is available from Atlantic Publishing Company (www.atlantic-pub.com or 800-814-1132, Item CTC-CS).
IPro
IPro is a comprehensive restaurant inventory, recipe costing and food cost control software. Studies have shown that food service establishments using IPro reduce food cost by 5% to 10% of sales (i.e. from 35% to 30%). IPro has reduced food and liquor costs as much as 25%, doubled profits and saved businesses from going broke. This program was written by food service professionals for food service professionals, it features:
• Food and beverage cost control to help monitor and reduce food and beverage costs.
• Inventory tracking and reporting which can assist in detecting theft, overportioning and creeping vendor prices.
• Ordering and purchase history so help you reduce stock levels and order more accurately.
• Recipe costing, resizing and write-up which will assist in costing and re-costing recipes as ingredient costs change.
• Menu sales and profit analysis to determine menu item profit contribution and other sales analyses.
Here are some additional benefits of IPro:
• Total Recall. IPro stores all original details so you can report, compare, reconstruct and re-analyze any prior time period with total accuracy. See an entire year’s figures or compare this New Year’s to the last. Other software limits you to the current and prior period.
• List Processing. This is important because inventory control is almost nothing but working with lists for gathering data. IPro gives you complete control over worklists: their contents (which items), use (counting stock, sales, etc.) and order (alphabetical, numerical, etc.). You can copy, add and merge lists. You can fill them automatically with build-to-par quantities, on-hand counts from bar code readers and sales from cash registers. You can work on lists, put them away, get them out again, correct errors, update costs, post and unpost them.
• Custom Reports. IPro lets you customize and keep the settings for any number of new reports on file. You can retrieve reports by name.
• Choice of Cost Systems. Use either “Last Cost” for simplicity or “True Weighted Average Costs” for accuracy. IPro always uses correct values that reflect the mix of stock purchased at different costs. If your stock is from three shipments of different costs and quantities, that’s fine. Other software can’t do it right because they only use the last cost paid and can’t be as accurate.
• Custom measures. IPro lets you define any and every measure: how you buy, count, use, make and sell items. Use pinches, slices, teaspoons, cups, globs and wedges. Give them weight, volume or unit values.
• Inventory and recipes in one file. IPro combines inventory and recipes into one file to effectively handle “batch recipes” such as sauces, dressings and soups. Batch recipes need to be recipe files and inventory files at the same time because making batches makes shelf stock that should be tracked.
IPro is available from Atlantic Publishing Company (www.atlantic-pub.com or 800-814-1132, Item IPR-02 ).
QUICKBOOKS
My favorite accounting package is QuickBooks by Intuit. QuickBooks is rich in features, including built-in remote-access capabilities and Web interfaces. QuickBooks is available at www.quickbooks.com. Another popular account package is Peachtree, available at www.peachtree.com.
DESKTOP PUBLISHING APPLICATIONS AND IDEAS
Desktop publishing applications allow you to print your own customer and/or employee newsletters, table tents, menus, business cards, employee-of-the-month certificates, customer gift certificates, advertising posters, employee manuals, wine lists, catering and banquet menus, office stationery, and newsletters. Some popular desktop publishing applications include: Adobe InDesign, Adobe Illustrator, QuarkXpress, and Microsoft Publisher 2007.
ONLINE RESERVATION SYSTEMS
An online reservation system can be simple or advanced. A fully functional online reservation system can be free. All you need is an active website and a reservation form. Your site visitor fills out the form requesting a reservation. You set up an auto-responder to respond to the site visitor stating that she will be confirmed within a reasonable amount of time, say two hours. You receive the reservation request by e-mail, confirm that you can accommodate the request, and then reply back to the person by e-mail or phone. Total cost: zero. Customer satisfaction: superior. That is the basic, no cost approach. There are dozens of reputable software packages and companies that can provide your on-line reservation system. These FRS (Foodline Reservations Systems) enable you to do the following:
• Accept reservations anytime — day or night.
• Track guests’ preferences to provide enhanced customer service.
• Use the power of direct marketing to build guest traffic and offer premium services to your most frequent customers.
• Check reservation status from any Internet-connected computer.
• Network all computers and reservation systems in a restaurant group.
• Choose to manage all of your reservations or to put just a few of your tables online.
An Internet search will yield dozens of software packages and consultants who can assist you in finding the right one for your on-line reservation system.
THE FUTURE OF COMPUTERS IN FOOD-SERVICE
The food-service operation of the future will most likely resemble what it does today — with integrated software and hardware solutions to increase productivity, eliminate waste, and increase profits.
The POS computer will allow operators to closely monitor inventory and costs. Web-site reservations, marketing, and e-commerce will increase the return on investment in a Web presence, bringing in more guests than ever imaginable. Diners may enter their own menu selections into laptop POS systems right from their tables. Patrons will be able to pull up a screen showing all menu items, then select dishes with a push of a button. Consumers will also be able to customize meals and beverages — single malt scotch or blended, margarine or butter, salted or unsalted, medium-rare or well-done, spicy or mild. Ultimately, the restaurant will be a paperless operation.
THE EFFECTIVE USE OF E-MAIL
E-mail is a system that enables a computer user to exchange messages with other computer users within a communications network (Internet). To use e-mail, your computer must be linked to the Internet via a modem and phone line, cable modem, DSL connection, or other network connection. E-mail services are provided at no cost from your Internet service provider and they come with any domain names you purchase for websites. Careful consideration should be given to your choice of domain names and/or e-mail addresses, as these represent your company. For example, The Silvermine Tavern, a New England country inn and restaurant in Norwalk, Connecticut, purchased the domain name www.silverminetavern.com. Purchasing a domain name that directly represents your restaurant is an outstanding opportunity to gain the use of the corresponding e-mail addresses. In the case of The Silvermine Tavern, innkeeper@silverminetavern.com is one of their primary e-mail addresses, clearly stating to the casual observer that any e-mail sent to this address will be directed to the innkeeper of The Silvermine Tavern. I will discuss websites and why they are critical to every restaurant later in this chapter.
WHY USE E-MAIL INSTEAD OF THE POST OFFICE OR THE TELEPHONE
There are two reasons:
• Convenience. You send your message when it is convenient for you, and your recipient responds at his convenience.
• Cost. No more toll telephone calls. No more “telephone tag.” You can send dozens of e-mails throughout the world, simultaneously; they will be delivered in mere seconds and they cost nothing. Communicate with all your purveyors or employees with one written message for free.
Sending e-mail is similar to sending mail through the U.S. Postal Service, but there are several important differences:
• E-mail is faster.
• E-mail is free.
• E-mail is simple to use.
• E-mail requires a password and is private. (Note: I highly recommend utilizing a virus-scanning program for all incoming and outgoing e-mails)
• E-mail is very fast, permanent, and unforgiving. Make sure you said what you wanted to say before you hit the send button. Once sent, it is too late to get it back.
• E-mail can be sent to many people at the same time.
To receive e-mail, as with postal letters, you must have an address (sales@atlantic-pub.com, for example). There are many websites that offer you free Web-based e-mail, such as www.excite.com or www.yahoo.com.
PROPER E-MAIL ETIQUETTE
• Avoid flaming. A flame is a nasty, personal attack on somebody for something he or she has written, said, or done.
• Be unambiguous. If you are responding to a message, include only the relevant part of the original message. Make sure you refer to the original message’s contents. Always include a descriptive subject line for your message. If responding, your subject line should be the same as the original’s, preceded by “RE:”.
• Write clearly and carefully. Your words may come back to haunt you. Read carefully what you receive to make sure that you are not misunderstanding the message. Read carefully what you send, to make sure that your message will not be misunderstood. Avoid cluttering your messages with excessive emphasis. DO NOT USE ALL CAPS.
COMMON E-MAIL MISTAKES
• Typing the message in the subject line instead of in the body of the message.
• Forgetting that what you write, thinking it is funny or harmless, can be misinterpreted at the other end.
• Not signing off before leaving the computer (allowing others to send e-mail from your e-mail address).
• Not checking e-mail often, thus missing something important.
• Forgetting your password.
• Sending a message to the wrong e-mail address.
• Using “reply to all” which will send your message to everyone the sender sent the message to, rather than just the sender.
• Spam filters and quarantine features. While these features (typically a preference in your e-mail program) are very useful in blocking unwanted e-mail, they can also block important e-mail. Be sure to check your “junk-mail” folders periodically and use these features with care.
THE INTERNET AND THE WORLD WIDE WEB
The Internet is a global network of networks enabling computers of all kinds to directly and transparently communicate and share services throughout much of the world. Because the Internet is an enormously valuable, enabling capability for so many people and organizations, it also constitutes a shared global resource of information and knowledge and a means of collaboration and cooperation among countless diverse communities.
The Internet was originally conceived by the Advanced Research Projects Agency (ARPA) of the U.S. government in 1969 and was first known as the ARPANET. The original aim was to create a network that would allow users of a research computer at one university to “talk to” research computers at other universities. A side benefit of ARPANET’s design was that, because messages could be routed or rerouted in more than one direction, the network could continue to function even if parts of it were destroyed in the event of a military attack or other disaster.
Today, the Internet is a public, cooperative, and self-sustaining facility accessible to hundreds of millions of people worldwide. Physically, the Internet uses a portion of the total resources of the currently existing public telecommunication networks. Technically, what distinguishes the Internet is its use of a set of protocols for the transmission of data.
For even the most novice Web users, e-mail has practically replaced the Postal Service as the primary means of communication between coworkers, family, friends, and business acquaintances. E-mail is the most widely used application on the Net.
You can also “stream” live video feeds from any computer with a Web cam, as well as utilize “Instant Messenger” and “chat” services. E-mail use is critical in the restaurant and hospitality industry. It is second only to the telephone as a means of communication between you and your potential customers and clients. I will talk later in the chapter about naming conventions in e-mail and the benefits of maintaining an active website to promote your business.
The most widely used part of the Internet is the World Wide Web. The unique, underlying language of the World Wide Web is hypertext, which is the language a Web browser reads then interprets into what you see in your browser window when you view a Web page. On most websites, certain words or phrases appear in text of a different color than the rest; often this text is also underlined. These are known as hyperlinks, or links.
When you click on one of these words or phrases, you will be transferred to the site or page that is relevant to the word or phrase. Sometimes there are buttons, images, or portions of images that are “clickable.” If you move the pointer over a spot on a website and the pointer changes into a hand, it indicates that you can click and be transferred to another site, a “hot spot.” Using the Web, you have access to millions of pages of information. Website viewing is done with a Web browser, the most popular of which are Microsoft Internet Explorer and Netscape Navigator.
DO YOU NEED A WEBSITE?
In a word, YES.
If your restaurant already has a website, you are already reaping the benefits of being online. Each day, the Internet reaches millions of people who use it for work, play, and research. The Web is the best marketing tool in the world; it allows your restaurant to be visible anywhere in the world. New services, such as digital cities, online city restaurant guides, and other food-service sites, will increase your website and restaurant visibility to levels unheard of. This type of free marketing promotions is available to Web-savvy restaurateurs. The Internet is a powerful tool, one that can be put to work for your restaurant.
Use the following checklist of potential advantages to see for yourself whether a website is right for you. Place a check mark next to each ability that would serve your business:
__ Additional, global, sales, and marketing tool.
__ Gather marketing information.
__ Analyze and evaluate marketing information.
__ Lower your phone expenses.
__ Establish more frequent communications with customers.
__ Establish more meaningful communications with customers.
__ Reduce fax costs.
__ Reduce courier costs.
__ Deliver electronically encoded resources around the world.
__ Supplement employee training through electronic updates and bulletins.
__ Broadcast press releases.
__ Communicate to people who are presently not available.
__ Submit invoices and expenses more quickly.
__ Reduce international communications costs and improve response time.
__ Ease of collaboration with colleagues.
__ Establish contact with potential “strategic partners” worldwide.
__ Identify and solicit prospective employees.
__ Provide immediate access to your catalog.
__ Permit customers to place orders electronically.
__ Reduce costs of goods sold through reduced personnel.
The Web is everywhere. You see websites promoted in the mass media — on commercials, on billboards, and in magazines. You even hear them on the radio. Website addresses are the wave of the future — today. The Web is the most economical way to communicate with a worldwide audience. Can you think of any other tool that lets you advertise or sell products to a worldwide market, 24 hours a day, for a minimal monetary investment? The possibilities are endless — the return on investment, enormous.
Here is a brief list of reasons you need to have a presence on the World Wide Web:
• It is the world’s largest communications medium. The World Wide Web provides maximum exposure and maximum potential to communicate with a worldwide audience, 24 hours a day. There are an estimated 285 million people online, from nearly every country. 48 percent of users use the Net one to four times a day; 39 percent use it more. One-in-five Web users use their browsers more than 35 hours a week.
• Instantaneous access to information. A website can be browsed at any time — day or night. Information can be downloaded, e-mails transmitted, supplies and services bought and sold.
• Virtually unlimited potential. There are no time, physical, or geographical limits in cyberspace and over 62 percent of Web users have bought something online.
• The user is in control. Web users may choose where they want to “go,” when they want to go there, and stay for as little or as long as they choose.
• Visual marketing. Technology provides incredible ways to convey information about your business, products, and services.
WHAT TO PUT ON YOUR WEBSITE
The Silvermine Tavern (www.silverminetavern.com) had a website developed by Gizmo Graphics Web Design (www.gizwebs.com). The Silvermine went from no Web presence to a lively, active Web presence. What kind of information can a restaurant put on the Web? Here is a brief list of what the Silvermine Tavern has used their website for:
• A picture is truly worth a thousand words. The Silvermine Tavern has carefully selected high-quality images and photos to truly “sell” the beauty of their inn and restaurant.
• News, events, and specials. The opportunities are endless. The Silvermine Tavern promotes weekly jazz events, monthly Wine Dinners, and holiday dining specials. They have even developed Web-based distribution lists from their long list of loyal customers and use e-mail to promote the monthly and weekly events.
• Menus. These are not just basic menus, but menus with full-color photographs of each entrée.
• Directions. They have a link to Mapquest.com right on their site. You enter your address and you get door-to-door directions from your home to The Silvermine Tavern.
• Products for sale. The Silvermine Tavern operates a unique country store. They sell products from that store over the Web for a minimal investment and open up their store to millions more potential customers who visit the store “virtually” through the World Wide Web.
• History. Every restaurant has a history. Sometimes a history is truly unique — a story worth telling. Your website can do this for you. The Silvermine Tavern has gone a step further by not only giving you a rich history, but also a virtual walking tour through historic Norwalk, Connecticut.
• Area attractions. Sell your restaurant and your local community to the website visitor. The opportunities are endless. Be imaginative.
HOW TO GET AN EFFECTIVE WEBSITE
The choice is entirely yours. There are thousands of Web development companies throughout the world. Consider companies specializing in the food-service and hospitality industries. I recommend Gizmo Graphics Web Design of Land O’ Lakes, Florida (www.gizwebs.com). They have put together a solid, high-quality, low-cost package exclusively for restaurants. It offers a comprehensive cradle-to-grave cost approach, which includes all annual hosting fees, domain registrations, and annual support.
Some words of caution:
• Do not overlook the little details.
• A website can be a significant investment. Hire a professional if you want professional results.
• Keep in mind the “hidden costs.” Most developers do not include website hosting, domain-name registration and renewal, support, and continued development services after site completion. (Note: The restaurant development package at Gizmo Graphics Web Design is all-inclusive.)
• Make sure you promote your site. A site is worthless if no one knows it exists. Search-engine registration is a critical part of a successful website. My favorite search engine is Google.com. If you navigate to Google.com and type in “Restaurants, Norwalk, CT” — guess what the first listing is — the Silvermine Tavern. While they are certainly not the only restaurant in Norwalk, Connecticut, they have used search-engine ranking and effective Web-development services to promote themselves.
A website is an investment, not an expense. In the current marketplace, every restaurant must have a Web presence or it is missing the boat.
For additional computer usage information, I recommend the following books from Atlantic Publishing (www.atlantic-pub.com/internet.htm):
• The Complete Guide to E-mail Marketing: How to Create Successful, Spam-Free Campaigns to Reach Your Target Audience and Increase Sales, Item #GEM-01, $24.95.
• How to Use the Internet to Advertise, Promote, and Market Your Business or Web Site — With Little or No Money, Item # HIA-01, $24.95.