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  Boost Profits with a POS

     By Fred Minnick, Editor of Fast Casual magazine


A BAD POS MANUFACTURER CAN BURN A HOLE IN YOUR PROFITS ...
BUT A GOOD PROVIDER WILL HELP GROW YOUR BUSINESS.

 

     Revention’s platform has been invaluable for Brooklyn’s fast-casual Italian restaurant, but it’s been the service that the  
    restaurant truly appreciates.


It took Brooklyn’s Old Neighborhood Style Pizzeria a few go-rounds before it picked a long-term POS provider.

The Dallas-based company’s original POS system could not keep up with orders and was constantly crashing. Then Brooklyn’s upgraded to another system from a different manufacturer, which produced sufficient hardware and software to handle the delivery, carryout and dine-in transactions. The problem was the POS provider’s service.

“This newer POS manufacturer had a nice solution, but they had horrible service,” said Rick Morris, Brooklyn’s operations manager. “They never fixed any of our prob­lems, and we were losing a lot of time getting support questions answered.”

The fast-casual pizza chain went through several POS systems before settling on its current system from Revention POS.
 

“When we went to four stores, Revention was very attractive to us because they have a good platform.”
Rick Morris, Operating Manager, Brooklyn’s
 

THE SOLUTION
When Brooklyn’s was looking to expand in 2005, company officials considered their two previous POS systems and knew they couldn’t build additional units using them. With each store averaging $1 million in total sales and plans to eventually franchise, Brooklyn’s needed a POS system it could install in store two or 200.
 
“When we went to four stores, Revention was very attractive to us because they have a good platform,” Morris said. “Revention gave us the ability to network our systems and operate centrally … this is important as we expand.”
 
For the first time in the company’s history, Morris has the ability to compare real-time store data, analyze menu trends and review reports from his home computer. “I can look at our McKinney store and see why it has a higher ticket average than our Frisco store,” Morris said. He also can analyze what menu items are selling well and strategically develop marketing materials to improve sales. “The system just gives us a better view of our operations.”
 
Chris Nonnemaker, a franchise operator for Papa’s Pizza to Go, had a problem similar to Brooklyn’s. He also had POS manufacturer issues before signing on with Revention. Essentially, Nonnemaker’s old POS system constantly crashed because it lacked sufficient memory. The older version also had few features that could manage time and money. Revention installed Microsoft SQL Server — a product Forrester Research in 2005 called the top software for production reporting and analysis services — and a Dell Optiplex GX520, giving Nonnemaker immediate access to critical information.
 
“With our newer POS set-up, we saved a lot of money associated with labor,” Nonnemaker said. “I can schedule long term and see if I’m running too high of a payroll. That saves me precious money as the cost of labor continues to escalate. Nonnemaker’s system pulls up a customer’s buying history when ordering, “and we can upsell whatever they bought last time,” Nonnemaker said. “Prior to getting the upgrade, I didn’t even know my average ticket. Now, I know its $17 to $18.” Revention officials said 40 percent of their business is replacing competitor’s products. Laura Gaudin, director of sales for Revention, said customer service is why they pull so many restaurateurs in from other manufacturers.
 
Since every operation’s processes are unique, she said custom-crafted interfaces are essential. “It’s especially important that we work with them during the menu development because you cannot anticipate all the scenarios,” Gaudin said.
For example, Gaudin said sandwich operators typically won’t expect pickles added to a tuna sandwich. “This is where a lot of manufacturers get in trouble. They set up the system and leave. They don’t stick around and work out all the kinks.”
 
Before installation, Gaudin said Revention spends an average 23 hours with the operator developing a quality solution and hammering out the details. Once a contract — which typically runs around $11,500 for a two-terminal set up — has been signed, Revention will configure the servers, install menus and train the restaurant staff.
 
“It’s not uncommon that we will spend three straight weeks with a customer,” Gaudin said. “When the system goes live, we are in the restaurant making sure it works. We want to be there when business happens because you can do all the role play in the world and still not account for a real-world situation.”
 
After testing the waters with other POS providers, both Nonnemaker and Morris agree that their return on investment and customer service with their Revention solution has been invaluable. “The return is we are spending a lot more time improving the business than trying to run the business,” Morris said. 
 
REVENTION POS ROI SUMMARY
 
Weekly Sales $7,500.00
Monthly Sales $30,000.00
Labor Mgmt. Control $ 360.00
Faster Order Taking $ 900.00
Miscalculations $ 300.00
Freebies $ 90.00
Theft/Fraud (Industry 4%) $ 450.00
Monthly Savings $ 2,100.00
Revention Investment
(4 Workstation System) $ 475.00
Increased Profits $ 1,625.00 

Copyright 2006 NetWorld Alliance
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