3. Tyler has heard a great deal about the differences between Windows and Mac-based software for graphics and artistic work. Now that you have two new Windows-based personal computers for the restaurant, should you consider additional hardware components or software to work on their graphs needs?

KIMBALLS RESTAURANT: Software Added to the Bill

Michael knew that the front house operations were important for customer service and efficient functioning of the restaurant. However, he knew that the restaurant could not survive on the efficiency of its front-house operations alone. He remembered their accountants emphasis on the need to pay more attention to the purchase of food. The profits of a restaurant depend significantly on ordering and forecasting, reducing spoilage by not ordering more product than they need. Michael has learned that there is a careful balance between ordering too much and running out of food. He wondered also if he could manage his suppliers better with more accurate data on the restaurants needs. Could he reduce his deliveries from a supplier to ask for a larger discount? Negotiate better prices by consolidating orders to specific suppliers?

Accounting for Success

As he thought about these questions, he wondered how he could collect and access better data. The new point-of-sale system recorded the sales of each menu selection and type, from appetizers, entrees, and desserts to side orders. The management information from the new system surely could help him to project the number of patrons on any given night and the sales of individual menu items. How could he use that information? Would he need input from Liz and the kitchen operations?

He decided to discuss it with both Tyler and his wife. Michael asked Liz to provide some details on her ordering process. She said that she gives a standard order to the suppliers for the main components of the menu items. She then used those order quantities as a basis for her next order. Sometimes I may order more or less based on what I see in the food storage areas, freezers, and refrigerators, she said. Its just a guess, but I think it is working pretty well. She also said that she is meticulous about marking the delivery dates of perishable items so that she does not use spoiled materials.

Tyler then asked, How do we know what is thrown out because of spoilage? Or when we run out of a product? Michael also explained that he wants to make sure they are ordering efficiently based on accurate forecasts rather than just by guess. Food costs are a significant

percentage of their total operating costs. He did not want to ask, but he believed that Liz did not ask or negotiate prices with the suppliers. He asked Tyler to complete an inventory of the food for a week to gain more understanding of the situation. Tyler wondered if he could design a simple spreadsheet to develop an order list for the various suppliers in order to simplify the process.

As Michael considered basing their food purchases on a forecast, he also wondered if scheduling their serving, kitchen, and busing personnel could be done in a similar manner. Also, they are currently using a payroll service to pay employees and generate all the necessary regulatory reporting; maybe there is a better way to manage the labor costs to gain efficiency and reduce costs.

Putting Software to Work

Most of the menu and promotional materials for the restaurant have been created using a local graphic artist and print shop. This service added costs to their operation as well as increased turnaround time to complete the materials. Tyler wondered if they might be able to purchase some software for their new computer system that would allow them to create and print some of the promotional, marketing, and menu materials on their own color laser printer. For the grand opening, they will need additional materials for the marketing, promotion, menus and other administrative functions.

As another important part of the promotional process, moving to the new location could be a perfect opportunity to upgrade their website. Currently, the website consists of a few simple pages containing a few pictures of the restaurant, their location and directions, and a sample menu; the website had not been changed in the last two years. They want to give it a new look and presentation to match the new location and add some dynamic content for specials and updates to create more interaction with customers. Tyler knows a little about building a website from his college courses, but he has no graphical or web design skills. He wonders if there are any software tools out there that could help him kick up their website in order to prepare for the new location and draw new customers.