Mirus Reporter

Restaurant Theft

$60k of your hard-earned revenue may be going home in the pockets of thieves. The NRA estimates that, on average, Net Income (‘NI’) for most restaurant companies is around 5% to 6%. The NRA also states that loss due to fraud at the restaurant runs around 4% of sales CASH is KING. Assuming the NRA estimates for theft are accurate then it would be safe to further assume that a restaurant with $1,500,000 (‘$1.5M’) in sales could conservatively lose $45K or possibly even $60K in revenue due to theft.

Given the number of ways theft can occur, it’s no wonder the percentage (4%) remains as high as it does. It’s not my intent to attempt to try and cover each way a restaurant can be losing money, rather, I’ll focus on the most popular -cash theft.

2018 Mirus User Conference

We had a blast being able to meet with some of our clients this year at MCON! Big thank you to everyone who came down to our hometown in Houston, TX, especially the presenters and panelists. If you couldn't make it out this year, make sure to check out some photos on our Facebook page here.

I’m A Good Person. Most of the Time...

Have you ever stolen anything? Did you get caught? When you were caught, was it your first time stealing? Even the most ethical employees can make bad decisions when something is right there for the taking. There’s too much temptation, even for those who usually make the best decisions.

No matter how much you trust your employees (managers included), you MUST be able to check thoroughly on their daily activities to find potential irregularities. When your employees make poor choices why should YOUR restaurant business pay the price?

Whether you are a franchisor or franchisee you want each of your restaurant locations and its employees to make more money. Challenges being placed on already thin margins make it difficult to keep up with the increased demands from labor, food costs, rent etc. And in today’s competitive labor market the cost of locating and training new staff members just adds to the challenge.

If you’re a table service oriented restaurant and you’ve gone to tip pooling or even ventured into the no-tip territory you may have already seen a difference in employee motivation or lack thereof due to these policies where the excellent servers are now making less in tips while the mediocre server is pretty happy. So now you need to find other ways to put the spark back in your team.

This year we are pleased to be hosting the Mirus User Conference in our home town of Houston, and Everyone is invited! This conference is the best way to see how Mirus provides a powerful advantage to our clients for building customer satisfaction, increasing sales, and getting to the action plan quicker than is possible with spreadsheets or static reporting.

Is Food Delievery Right For Your Restaurant Business?

No topic is hotter in the restaurant space than delivery today. An amazing shift is taking place where customers want their favorite food, and not just pizza, delivered wherever and whenever. For me, delivery became a new reality and not just a fad when I saw McDonald's advertising during the recent World Cup matches that they would now be delivering food. This was no longer a test in a few US markets but now ready for prime time by a heavy hitter in the QSR realm.

There are people projecting that delivery will do to restaurants what Amazon did to retail. I think it is too early to tell for sure, and caution is wise. Nonetheless, I am seeing many restaurant companies testing delivery in select markets and many more are discussing it. However, before you make the decision to plunge into this new channel, there are a few questions you should ask yourself. 

Whose Customer Is It?

How are your customers going to request a delivery? Will you hire your own drivers and create your own e-commerce website, or will you use a third-party delivery service? The first option will take more time and money before you can start comparing to a 3rd party option. But, which alternative do your customers prefer?

Examples of restaurants who have built their own platforms include Panera and Domino's, and both efforts are considered successful, albeit expensive. It's simple, the customer goes to the brand website and orders. An upside to this approach is your customer sees only what you want them to see and their experience is directly connected to your brand. Another plus for this option is the ability to add other programs and services beyond ordering, such as loyalty and payment.

Mirus Restaurant Solutions is a leading provider of business intelligence and data warehouse services for the restaurant industry. The past 25 years have provided us with an enormous amount of educational experiences that have allowed us to fine tune and become the innovative company we are today. But just where did we come from and how has that shaped us? Let’s take a trip through time to see how Mirus began, what we’ve learned and how it’s made us who we are today.

Too Much Data

Restaurant companies collect a lot of data on a daily basis from all the systems they have in place. How they organize, combine, analyze and distribute that data can have a big impact on the overall success of their business. Certain restaurant companies seek help from outside sources. However, some business intelligence and performance management software can be complicated and difficult to use and understand, using jargon that’s meant for IT professionals. This isn’t very helpful for a financial analyst, for example, who needs specific information and has to report to executives waiting for answers to pertinent questions.

Furthermore, many of these BI alternatives aren’t capable of getting all the data from all the sources. Thereby only being partially helpful. So the Financial Analyst needs to fortify the missing information. He/she needs to piece the data together using the only other way they can think of: Excel.

Over time, especially as their business expands, they begin to realize this way of putting information together can not filter manual errors and is extremely time-consuming. Sometimes restaurant executives can spend all their time creating reports and be left with no time to review them. Additional challenges, as a result, can be:

Treating Customers Right

Restaurant operators are great customers; however, there are some Software-as-a-Service (SaaS) vendors that are notorious for not treating them well. Change is accelerating in the restaurant business, as well as in the software solutions used by restaurants. Over the past decade, the way operators buy and access their software has changed.

Previously, a perpetual license model was used where the operator paid upfront for the software and had to keep it up and running themselves. Today, a subscription model is used where the software is hosted in the cloud and the operator pays one monthly fee for both the access to the software and the costs for keeping it running.

We’ve talked a lot in these blogs about the importance of restaurant data and the fact that each system a restaurant uses houses a plethora of information. We’ve mentioned in the past that each solution can provide reports, but these systems do not communicate with each other effectively. Operators are forced to manually piece details together to get a more detailed and accurate glimpse into how their restaurant companies are performing. However, manually piecing bits of data together on a spreadsheet can be tedious and problematic. We often refer to this process as "Excel hell".

The goals for most restaurant businesses are the same, drive sales, improve and streamline operations, and keep customers satisfied and coming back. Let’s take a closer look, specifically into the importance of merging Inventory and Point of Sale (POS) data to achieve these objectives.