Exploring “The On-Line Kitchen”

1. Exploring“The On-Line Kitchen” COEX 2000 Sponsored by NAFEM February 28 • Las Vegas

2. Today’s Agenda Dave Brewer Introductions Fernando Esparza POS Integration Steven Jones Back-of-House Interface (for John Reckert) Labor Reduction Roy Hook Asset Management Mike Harlamert Food Safety Dave Brewer Q&A Mike Harlamert Data Protocol Update

3. POS Integration Fernando Esparza Staff Director, Equipment Systems McDonald’s Corporation

4. BACKROOM COMPUTER KITCHEN EQUIPMENT DRIVE-THRU POS FRONT COUNTER POS TYPICAL CHAIN RESTAURANT -- TODAY

5. TYPICAL CHAIN RESTAURANT -- TODAY BACKROOM COMPUTER KITCHEN EQUIPMENT DRIVE-THRU POS CENTRAL OFFICE FRONT COUNTER POS

6. RESTAURANT COMMUNICATIONS TODAY • Proprietary communications protocols • “Near Real Time” communications within POS components • Complex & flexible configurations, i.e. registers, printers, video monitors, drive-thru systems • Ability to communicate with back room computers

7. RESTAURANT COMMUNICATIONS TODAY • Optional time clock systems integrated with POS and back room labor scheduling and payroll programs • Available POS reports can be configured to the business needs of a restaurant • Limited Projections of Product Needs

8. RESTAURANT COMMUNICATIONS WHAT’S MISSING • Ability to easily upgrade the software and add components (Customer order displays, coin dispensers, etc.) • Standard protocol to communicate with off-site computers • Communication with kitchen equipment (fryers, grills, ovens and heated holding cabinets) • Real time communication protocol to communicate with future automated cooking systems • POS will be the gateway to the kitchen network in most restaurants

9. RESTAURANT COMMUNICATIONS -- FUTURE Automated Drink System Front Counter POS Automated Fryer System Drive-Thru POS Central Office Node Heated Holding Cabinet Backroom Computer Menu Board Systems HVAC Controls

10. RESTAURANT COMMUNICATIONS -- FUTURE Communication Loop for Product Projections POS Backroom Computer Production Equipment Holding Equipment

11. RESTAURANT COMMUNICATIONS Challenges to Creating the Networked Kitchen • How do we implement a kitchen network that will minimize installation costs • How do we develop a self configuring network that can be embraced by the POS vendors • How will the network deliver the bandwidth required to support the cooking, holding and all the POS components communicating in real- time • Affordable --only dollars per node

12. Back-of-House Interface Steven Jones Director, Operations Support Triarc Restaurant Group

13. The On-Line KitchenBack of the House Management System • The On-line Kitchen should be an open, networked environment that allows information to be shared between different types of systems operating with various operating platforms and protocols • The On-line Kitchen concept offers the capacity to link several systems together so that data is shared and analyzed • P.O.S. • Process Controllers on cooking and preparation equipment • Production/Projection Monitors/printers • Energy management • Secondary peripherals-Order Confirmation, etc. • Back of the House System

14. The On-Line KitchenBack of the House Management System • The back of the House system is the “Brains” for & the “Conduit” of a linked kitchen system • It is where information is sent to, analyzed, updated and then sent back to the other elements in the linked system • This linkage allows several functions to be connected so that each system in the link is getting pertinent data that affects its operation and or processes

15. The On-Line KitchenBack of the House Management System • This linkage allows an operator or chain to give and get information on a variety of operational and equipment functions • Operators have the flexibility within the BOH system to extract and generate information and reports on a variety of areas based on the software employed • Based on the parameters and functionality of the software used in the BOH system it potentially allows multi-tasking processes to operate

16. The On-Line KitchenBack of the House Management System • These sub-systems can include • Cash Management • Product Projection-To Prepare & To Cook • Menu & Inventory Management • Sales/Menu Mix • Inventory tracking & monitoring • HACCP Tracking & Monitoring • Labor Management -Tracking, Forecasting & Scheduling • Asset Management-Tracking & Diagnostics • Energy Management-Control & Diagnostics

17. The On-Line KitchenBack of the House Management System • The utilization of an On-line Kitchen system reduces restaurant management's manual tasking to get useable information on • Product preparation amounts • Product holding & on hand amounts • Product to be cooked amounts • Labor required for food sales and preparation • Labor scheduling • Inventory administration • This in turn offers management the freedom to focus on Customer Service & Operational execution

18. The On-Line KitchenBack of the House Management System • It also offers the potential for increased efficiency at the work station level by allowing an hourly employee to function at a higher level of productivity by supplying product ordered info directly to the station • It can also reduce the level of verbal communication & direction needed between management and hourly employees by supplying product production data directly to the employee via monitors or printers • It can facilitate improvement in work/product process flow by orienting data to the proper end user (work station, product assembly, expediter, etc.)

19. The On-Line KitchenBack of the House Management System • The BOH system can also offer external interaction via a modem allowing remote access to data and equipment performance • Linked to HQ or Regional HQ • Sales & Menu Mix polling • Automated Product Ordering • Equipment Diagnostics - Internal or External Service • Equipment calls for service based on diagnostic or PM schedule • Downloads to Equipment process controllers - Cook Time or Temperature Changes • Energy Management diagnostics

20. The On-Line KitchenBack of the House Management System • The BOH system is the core of the communication between different elements within the Kitchen and the front of the house • With the variety and different capabilities of P.O.S. systems and Process Controllers that are currently available the ideal BOH system must be designed with an open connectivity that accepts any protocol • Hardware and software must be able to communicate on a basic or higher level to facilitate the exchange of information needed

21. Labor Reduction Steven Jones for…John Reckert Burger King Corporation

22. The Industry’s Labor Problems... • Cost • Quality • Availability • In the market to work at any cost! • To work when we have the business

23. Labor Availability • We can’t always get labor when our business calls for it • For the Sales shown, this would be the ideal use of labor • This is how we staff in reality

24. Labor Availability Flattened Labor Line • Why? • More availability of Full Time employees

25. Labor Availability Understaffed • Why? • More availability of Full Time employees • Ideal staffing calls for many 2 - 3 hour shifts • As more full time employees are hired, off peak times are overstaffed and peak times are understaffed Overstaffed

26. Labor Availability Not providing service • The result: • Not delivering optimal service during our peak periods • Overspending on labor during our off peak periods • Sales and costs are not optimized Inefficient use of labor

27. Productivity / Labor Reductions • Productivity - Improving the capability of producing product with given labor • Decrease tasks • Decrease time to perform individual tasks • Combine tasks into the same time frame • Increase output of doing a task • Given enough productivity improvements, labor reductions should be a result

28. Productivity / Labor Reductions • Labor Reductions - The ability to reduce head count at given production levels • We have not experienced enough gains in productivity to substantially reduce our labor requirements during peak periods

29. The On-Line Kitchen Could... • Drive automation that eliminates appropriate tasks to reduce staff needs • Anticipate tasks at optimal times to make our current labor more efficient • How much to cook and when • How much to prep and when • Monitor work loads within the kitchen • Balancing the work loads of our staff

30. Indirect Labor • Additionally, the on-line kitchen could help to reduce indirect labor by… • Scheduling equipment maintenance & cleaning of equipment by monitoring use and performing these tasks more efficiently or less frequently • Give us exact usage per time periods of products that require pre preparation

31. In Summary... • The on-line kitchen presents many opportunities, some yet unidentified, to improve • Staffing Requirements, especially at peak • Productivity of existing labor • Utilization of labor required for equipment maintenance and cleaning

32. What is Asset Management? Roy Hook Manager, Equipment Development Wendy’s International

33. Asset Management • Service and Maintenance • Tracking of equipment assets • Energy use optimization

34. Service and Maintenance • Detecting Performance Degradation • Early Warning of Failures • Preliminary Diagnostics • Preventative Maintenance

35. Service and Maintenance • Detecting Performance Degradation • based on known performance standard • initial heat up times • compressor run times

36. Service and Maintenance • Early Warning of Failures • performance degradation a signal • non critical function failures

37. Service and Maintenance • Preliminary Diagnostics • correlate historic cause and effect • Reduce trips to location • take the right parts on the first trip

38. Service and Maintenance • Preventative Maintenance • tracking reduces missed scheduled PM • Management tool to optimize PM based on • current equipment performance • specific location history

39. Tracking Equipment Assets • Identify Specific Equipment by Location • Update Equipment Operating Parameters • Tabulate Abnormal Operating Events

40. Tracking Equipment Assets • Identify Specific Equipment by Location • for accounting purposes • warranty administration

41. Tracking Equipment Assets • Identify equipment for recalls • locate equipment for improvements • identify location of recalled equipment • know when recall service has been completed

42. Update Equipment Operating Parameters • Identify operating parameter issues • Directly make equipment changes to: • Accommodate new menu items • React to product improvements • Insure adherence to operational standards

43. Tabulate Abnormal Events • Use as an operational tool • determine the magnitude of operational issues • correlate issues with other events • aid in resolving causes of issues

44. Energy and Labor • Tracking use of energy • Optimizing energy use • Reducing labor dependency

45. Tracking Use of Energy • Know what items are contributing to • energy used • demand charges

46. Optimizing Energy Use • Adjust equipment operating times to maximize energy efficiency • Stager turn on to reduce demand

47. Reduce Labor Dependency • Automatic turn on and off of equipment • based on time of day • relationship to other equipment • relationship to business/operations activity • Reduces need for personal attention • Eliminate requirement to schedule labor in time to turn on equipment

48. Food Safety Mike Harlamert Manager, Equipment Control Systems KFC Corporation

49. The On-line KitchenFood Safety Implications • Food safety is one of the most important issues facing the industry today • Costs an estimated 5 billion dollars • Many cases can be related to improper cooking and/or holding conditions

50. The On-line KitchenFood Safety Implications • Food safety issue is compounded by: • Increased complexity in the back-of-the-house • Menu expansion • Increased equipment sophistication • Decreasing quality of available workforce