5in. Top. Database. Challenges Restaurant Industry. the ABSTRACT: By John Kaufling

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1 Top 5in the Database Challenges Restaurant Industry ABSTRACT: By John Kaufling The restaurant industry is experiencing a data surge. New technologies are surfacing, business is moving quicker, and data collection resources are abundant. As a result, detailed information that identifies everything from a customer s favorite menu selection to the exact time of day they buy lunch is flowing into most restaurant businesses like a raging river. Food service industry veterans may find this influx of information daunting, but it is a potential marketing gold mine if it can be efficiently and effectively organized, managed, and analyzed. This white paper will explore the top five database challenges restaurant chains will face in 2016 and how managed services and remote database management can enable these businesses to harness and make the most of the modern data revolution.

2 content Challenge #1: Round-the-Clock High Data Velocity and Volume... Challenge #2: Keeping Up With the Integration of Emerging Technologies... Challenge #3: Accurately Correlating and Analyzing Data for Performance Improvement... Challenge #4: Managing This Complex Framework of Information Cost-Effectively... Challenge #5: Retaining Top IT Talent to Perform These Tasks... Conclusion About Datavail... 5

3 Rapid and unpredictable change is abundant in the food industry. Restaurants have been expanding over the past few years at unprecedented rates with the Beverage- Snack category adding 1,042 new restaurant locations in 2015 alone. New segments are gaining traction while others falter: the larger more established chains are experiencing slowed sales growth and even loss despite the thriving economy, the Fast Casual segment is experiencing dog-eat-dog expansion rates while the Fast Food segment stagnates, and the Hamburger segment, while still the largest, is experiencing the slowest sales growth rate of 1.4% while Chicken and Mexican plow forward at light speed with growth rates of 9.5% and 11.4% respectively. 1 harness the modern data revolution will continue to move to the front of the pack in business growth and customer satisfaction. It s time to take advantage of the resources at your disposal and consider the benefits of using database managed services companies to stay on top of the surge. Challenge #1: Round-the-Clock High Data Velocity and Volume To take advantage of leased real estate investments, restaurants often must stay open long hours in some cases, 24x7. With data from POS, accounting, inventory, RFID tags, and in-store apps flowing in during open hours, and digital marketing and website data coming in at all hours, there is a constant influx of information that is becoming increasingly difficult to process. SAS, the business analytics software company, notes, Reacting quickly enough to deal with data velocity is a challenge for most organizations. 2 Apps and processes are available now which can respond to the data you re collecting in real time. Coupons can be sent to customers who are near your store or patronizing a competitor. Text messages can invite your customers to buy more. Because this data is flowing 24x7 now, roundthe-clock database management is naturally also needed. How do you keep up with these incredible demands? With the rules of the restaurateur game changing, data and analytics are becoming more important than ever. Author H. James Harrington hit the nail on the head when he stated that Measurement is the first step that leads to control and eventually to improvement. If you can t measure something, you can t understand it. If you can t understand it, you can t control it. If you can t control it, you can t improve it. Restaurants are rapidly moving from a Hindsight is 20/20 data analytics model to a paradigm that allows them to see exactly what s happening in their restaurants in real time. This means that at any given moment, your chain s executive team can see who is in your restaurant, what they are purchasing, how much they are spending, and even their demographic data. The implications of these capabilities are endlessly positive, but will require additional resources and an upgrade in database management sophistication to maintain. The chains that step up to the plate and Datavail offers several solutions that can easily neutralize this issue including After Hours Support, Team Augmentation, Fractional DBA coverage, or provision of a full database management team. You can use us to supplement your team, replace your team, or simply support your team during off-hours the choice is yours. We can manage the monotonous day-to-day tasks so your team can focus on new technologies, the integration of technologies, and emergency issues, we can expand your team s capabilities by adding unique talent from Datavail, or we can take on the project-based demands while your team keeps the well-oiled machine running. Case Study A large restaurant chain using Oracle and MongoDB was overwhelmed with managing the mountains of data piling up on a daily basis from their ecommerce, mobile, retail, catering, and internal apps. Since the chain allows shoppers to complete a multitude of tasks online 1. Liddle, Alan J. (2015, June). Top 100: The Annual Report on U.S. Sales and Growth Trends. Nation s Restaurant News, Vol. 49 (No. 9), pp Restaurant.org Big Data and Restaurants: Something to Chew On, pp.4 Page 1 Top Five Database Challenges in the Restaurant Industry 2016 Datavail, Inc. All rights reserved.

4 24x7 such as placing and customizing orders, claiming gift cards, and booking special deals, the daily data and web traffic was significant. In addition, the existing staff was missing some skill sets necessary for database management. The DBA team was burning out from working extended hours to execute vital routine tasks to keep up with the demand. With only two employees supporting daytime - and often evening - routine tasks in addition to strategic and ad-hoc projects, Datavail was brought in to immediately take over their 24x7 need for code deployments. The supplemental team also handled problem diagnosis and rectification, management of databases in which the on-staff team did not have expertise, standardization, and implementation of health check dashboards. The additional support allowed the full-time staff to stay on top of the data filtering in from marketing and sales promotions, achieve a higher quality of life, and focus on other strategic projects that could help move the business forward. Challenge #2: Keeping Up With the Integration of Emerging Technologies Much of this challenge lies in implementing and managing new technological data sources: mobile phone apps, geoconquesting, POS systems, RFID tags, websites, online reservation systems, tabletop units, etc. Each of these resources creates a flow of data to your team and each one must be integrated to work consistently with your hardware and software systems. There s no doubt that it is a challenge to link, match, cleanse and transform all of this information effectively. However, according to SAS, it s essential: It is necessary to connect and correlate relationships, hierarchies and multiple data linkages, or your data can quickly spiral out of control. 2 The remainder of the challenge is keeping up with all of your software programs for managing the data. It s not unusual for restaurant chains to have several different databases to administer, and often employees will only have expertise in one or two of them. When these programs need to talk to each other to maintain the integrity of all the information coming from your complex ecosystem of software and networks, the problem multiplies. Datavail has experienced DBAs from all backgrounds who have worked with a number of different platforms such as Microsoft SQL Server, Oracle, Oracle EBS, MySQL, DB2, MongoDB, and SharePoint. Our teams can manage the routine tasks so your staff is free to focus on the everchanging technology landscape for collecting, storing, reporting, and analyzing your data. Or, if you find yourself overwhelmed with the complexity of integration tasks, allow us to bring your system together, migrate it to the cloud, or complete that project that s been sitting on the backburner, enabling your staff to focus on keeping the ship afloat. Case Study A medium-sized casual dining company using Oracle EBS suffered performance gaps after losing several employees and attempting to mitigate under-performing developers. Several essential technical skill sets were absent from the team and bringing on new well-trained staff was proving to be a challenge. Datavail was brought in to provide affordable high performing talent to fill technical and operational gaps. Datavail contributed vital skill sets to the Oracle EBS team such as load scheduling, report validation, automated deployment, and database life cycle management, as well as basic functional support. The additions to the existing team allowed the company to move on from underperforming employees, keep high performers happy, and obtain updates to existing and new databases that had previously been under-managed. Challenge #3: Accurately Correlating and Analyzing Data for Performance Improvement According to a quote from article Big Data and Restaurants: Something to Chew On by restaurant.org, Matthew Joseph, director of technology and information systems at Fig & Olive, says, What good is all that data if you can t make sense of it? We couldn t agree more. Between your POS system, mobile apps, online ordering portal, inventory tracking, and marketing data, you ve got a very expensive gift just waiting to be opened; don t leave it under the Christmas tree. This information can be used to cut costs, create more targeted advertising and promotions, create new menu items, and build customer loyalty; all of which can contribute to higher profits and business growth. Make sure, though, that you are, in fact, analyzing your data and not just reporting it. So often, businesses expend energy providing daily reporting, but never delve into the analytics that can take your valuable data and turn it into insightful business intelligence. Queries, Top Five Database Challenges in the Restaurant Industry Page 2

5 spreadsheets, and charts are fantastic implements, but they won t do you much good if you don t glean some new ideas from the information they provide. Use the resources at your disposal to the best of your ability. Datavail can help you maximize the brains in your organization by taking on the routine tasks of maintaining your data and its integrity up to 24 hours a day, 7 days a week, or we can assist you in industry best practices for interpreting your valuable data through the use of analytics. Either way, our services put you in the best position to brainstorm business strategies for success. Challenge #4: Managing This Complex Framework of Information Cost- Effectively According to Nation s Restaurant News Top 100 annual sales report, restaurant financial investments are increasing in expensive areas such as location expansion, facility upgrades, and new technologies. And as all business-savvy restaurateurs know, increasing expenses in one area means decreasing them in another. This is particularly important for restaurant segments with slow growth due to maturing markets or slowed expansion. So where can you cut costs? When it comes to database management, you have two activities that are very expensive: hiring fulltime DBAs and dealing with high turnover from overstretched employees. Skilled DBAs are in high demand right now and they know it. Which means providing back-up and support for your IT team is not only an assurance of their own quality of life and protection from burnout, it s a vital insurance policy for your company s human capital investments. Luckily, Datavail can maintain your current and growing database management volumes with experienced DBAs who know the ins and outs of your software while saving the costs of full-time employees. You can contract us as a simple DBA augmentation solution for existing employees, an after- hours support team, or a full-time team at very reasonable rates. Case Study A global 500 restaurant and hospitality company using Oracle and Oracle EBS was in need of both a more cost sensitive solution to database management and an improvement to database administration quality and support. Datavail was originally brought in to offer basic functional support and 24x7 coverage. However, it was quickly discovered that the company s staff and contractors were not adequately managing onsite support, UC4 support, and several other technical applications. Datavail implemented a number of tactics to improve these issues including absorbing the above-mentioned database tasks, removing onsite support and replacing it with an effective offshore model, and performing a series of upgrades, migrations, and integrations all while saving 25-50% for the global restaurant company. They had this to say about Datavail s contribution to their complex round-the-clock needs: Datavail solved our 24x7 DBA support needs by providing an experienced, offshore team. Datavail helped us to solve issues with Oracle technologies. They have a strictly focused commitment to providing excellent DBA services. Challenge #5: Retaining Top IT Talent to Perform These Tasks As previously mentioned, there are myriad data sources dispensing large volumes of information, all of which is in need of intelligent interpretation and analysis. For you, this means you need the best, most experienced IT staff you can find to make the most of your database investment. Unfortunately, good technical people are notoriously difficult to retain. Talented DBAs with the latest skills in emerging technologies are in high demand. So when the hours get stretched and the stress becomes too much, other companies with larger pockets or greater perks are poised to poach your well-developed team. High turnover can leave you with last-minute hires that are underqualified at best, and production gaps that leave you further and further behind at worst. Datavail offers managed services that can fill these gaps whether your needs are last-minute or scheduled in advance. Our high-quality DBAs are prepared to jump right in to contribute their expertise whether your project is short-term or long-term. Since our teams are consistently on-the-job, they are up-to-date with all the upgrades, add-ons, and database challenges you may find yourself facing. Page 3 Top Five Database Challenges in the Restaurant Industry 2016 Datavail, Inc. All rights reserved.

6 Case Study A large restaurant chain approached Datavail needing help managing their Microsoft SQL data so they could redirect focus to their business. Their IT team had recently expanded resources from four servers to six, and the existing personnel was experiencing burnout from the need for 24x7 monitoring and execution of routine and emergency tasks. As a result, database administration quality was suffering. Datavail stepped in with a number of solutions, beginning with 24x7 remote offshore monitoring to take the pressure off the company s existing IT team. Other core services rendered included preventative maintenance, health checks, patch implementation, complex troubleshooting, and automating weekly maintenance jobs. By offering technical expertise along with round-the-clock coverage and support to existing staff, Datavail enabled the restaurant chain to re-focus staff resources on business concerns. As a result, they saw improvements in staff retention and increases in database administration quality. These changes include a more healthful menu, custommade specialty coffee, mobile payments and mobile orderahead options, and adding grilled chicken to the menu. In this day and age, the rapidly changing restaurant industry requires you to have all hands on deck when it comes to data collection and management. Technological innovation isn t slowing down; in fact, it is doing quite the opposite. Howard Schultz of Starbucks recognized this when he said, Innovation is a force that will continue to drive our business and enable us to expand and increase revenues and profits always through the lens of humanity long into the future. According to a recent Gartner report on geoconquesting, by 2018, organizations that have invested the time and funds into personalized marketing and mobile offers will outsell companies that have not by 20%. 3 And where does that personalized marketing start? It starts with data. Addressing the challenges we ve detailed above can result in a wealth of insight and growth, launching you and your company into that top 20%. Employing services from Datavail has allowed our team to focus on more pressing business matters, and deliver better results to our customers. Conclusion The effective and efficient use of data can make or break your restaurant business. At least this is what Chief Innovation Officer at Fishbowl, Scott Shaw believes. As stated in the article Big Data and Restaurants: Something to Chew On by restaurant.org, Fishbowl, an marketing company for restaurants, proved this principle after running a guest-level redemption data and real-promotion tracking program that optimized an automated birthday offer for a 200-unit casual chain. The result was $5 million in incremental sales from that promotion alone. Industry experts also credit much of Chick-fil-A s 14.5% sales growth to its ability to analyze and respond to consumers changing needs. According to Nation s Restaurant News Top 100 report, Chick-Fil-A has made a number of changes in recent years based on their understanding of their customer preferences. 3. Hare, Jim. (2015, July 7). Using Mobile Geoconquesting to Steal Customers From Competitors. Top Five Database Challenges in the Restaurant Industry Page 4

7 Biography John Kaufling Vice President and Practice Leader of Application Services for Datavail John Kaufling has more than 20 years of experience in the IT industry, including more than 12 years as an Oracle EBS database administrator at Level 3 Communications and at Oracle Corporation. His specialties include implementations, upgrades, performance tuning and extensive capability to support the product. John s work with Oracle apps database administration has included experience with SOA suite, Veritas Cluster, Oracle DataGuard, Load Balancing from Resonate, Cisco and BigIP and extensive experience with Oracle self-service applications and selfservice framework technology. About Datavail Datavail Corporation is the largest provider of remote database administration (DBA) services in North America, offering database design and architecture, administration and 24x7 support. The company specializes in Oracle, Oracle E-Business Suite, Microsoft SQL Server, MySQL, MongoDB, DB2 and SharePoint, and provides flexible on-site/off-site, onshore/offshore service delivery options to meet each customer s unique business needs. Contact Us General Inquiries: Fax Number: info@datavail.com Corporate Headquarters: Datavail Corporation Ridge Parkway Suite 125 Broomfield, CO Database Operations Control Center: Datavail Infotech Pvt. Ltd 3rd Floor, Unit No. B-3 Ashar IT Park, Road No. 16Z Wagale Estate Thane (West), Thane Direct Telephone Number: Bangalore Office Datavail Infotech Pvt. Ltd Concept Business Park #319/9, 1st floor, Block A Hosur Main Road Bommanahalli, Bangalore Page 5 Top Five Database Challenges in the Restaurant Industry 2016 Datavail, Inc. All rights reserved.

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