CASE STUDY: Z’TEJAS SOUTHWESTERN GRILL Automated Processes for Maximum F&B Profitability Background In 1989, the first Z’Tejas Southwestern Grill was born in an old Victorian house on Austin’s historic 6th Street. The menu, largely influenced by the South, signifies the bold and robust flavors of Arizona, California, Louisiana, New Mexico and Texas. Today, Z’Tejas has 10 restaurants in the Western United States. The restaurant group prides itself on fresh, flavorful and innovative dishes. Z’Tejas takes traditional ingredients, spices and cooking techniques from around the south to create a taste without borders. The Z’Tejas team as a whole depends on the critical role of their company’s technology systems and they constantly pursue new and innovative ways to improve operational procedures through automation. The Catalyst: The Need for an Accurate Reporting Method Prior to the implementation of the FOOD-TRAK System, restaurant managers would consolidate their invoices and conduct a manual entry for their Profit and Loss (P&L) statements after collating the information. This bookkeeping method was incredibly time consuming and lacked the ability to analyze usage based on items, categories and product mix. Z’Tejas managers were constantly reviewing P&L’s consisting of cost categories that were not as definitive as they should have been, chasing down floating invoices and comparing themselves to benchmarks based on average versus ideal numbers. This caused the inability to validate and audit inventories quickly and effectively. In 2002, while Z’Tejas was still in an early growth period, the Executive Team made the decision to look for a better system to control their food and beverage inventory. They knew that implementing systems at the early stage of growth ensures the checks and balances necessary to incrementally increase profitability are in place and working efficiently over time. “Restaurant managers should be interacting with our guests and team members. The less time spent in the office without reducing profitability the better. It’s all about indulging the guest,” remarks Jack Gilmore, Founding Chef for Z’Tejas. “The system needed to be user-friendly, have growth potential and be managed effectively without a lot of day-to-day maintenance.” The Goal: Determine Ideal Food and Beverage Costs to Increase Profitability Z’Tejas was looking for an inventory management system that required minimal third party intervention and was not exorbitantly expensive. They needed a system to fit within the scope of their operating abilities with room to grow - plus have a reliable backbone behind it to support growth and their future IT needs. This would add value to the product. They hoped to quickly obtain reports in order to evaluate their ideal food and beverage costs, as well as track invoices and export data into their accounts payable software. The ability to analyze food costs and waste, identify item profitability and menu enhancements and integrate into their P&L; proved advantageous for Z’Tejas on a weekly basis. The Plan: Increasing Employee Support and Success through Training As with any new change, the Z’Tejas management team faced hurdles to overcome in introducing the FOOD-TRAK System to their field. While the managers and chefs appreciated the efforts in giving them a tool to manage their food and beverage costs, the complications involved in learning a new system caused “The system needed to be user-friendly, have growth potential and be managed effectively without a lot of day-to-day maintenance.” Jack Gilmore Founding Chef
Transcript
CASE STUDY: Z’TEJAS SOUTHWESTERN GRILL Automated Processes for Maximum F&B Profitability
BackgroundIn 1989, the first Z’Tejas Southwestern Grill was born in an old Victorian house on Austin’s historic 6th Street. The menu, largely influenced by the South, signifies the bold and robust flavors of Arizona, California, Louisiana, New Mexico and Texas. Today, Z’Tejas has 10 restaurants in the Western United States. The restaurant group prides itself on fresh, flavorful and innovative dishes. Z’Tejas takes traditional ingredients, spices and cooking techniques from around the south to create a taste without borders.
The Z’Tejas team as a whole depends on the critical role of their company’s technology systems and they constantly pursue new and innovative ways to improve operational procedures through automation.
The Catalyst: The Need for an Accurate Reporting MethodPrior to the implementation of the FOOD-TRAK System, restaurant managers would consolidate their invoices and conduct a manual entry for their Profit and Loss (P&L) statements after collating the information. This bookkeeping method was incredibly time consuming and lacked the ability to analyze usage based on items, categories and product mix.
Z’Tejas managers were constantly reviewing P&L’s consisting of cost categories that were not as definitive as they should have been, chasing down floating invoices and comparing themselves to benchmarks based on average versus ideal numbers. This caused the inability to validate
and audit inventories quickly and effectively.
In 2002, while Z’Tejas was still in an early growth period, the Executive Team made the decision to look for a better system to control their food and beverage inventory. They knew that implementing systems at the early stage of growth ensures the checks and balances necessary to incrementally increase profitability are in place and working efficiently over time. “Restaurant managers should be interacting with our guests and team members. The less time spent in the office without reducing profitability the better. It’s all about indulging the guest,” remarks Jack Gilmore, Founding Chef for Z’Tejas. “The system needed to be user-friendly, have growth potential and be managed effectively without a lot of day-to-day maintenance.”
The Goal: Determine Ideal Food and Beverage Costs to Increase ProfitabilityZ’Tejas was looking for an inventory management system that required minimal third party intervention and was not exorbitantly expensive. They needed a system to fit within the scope of their operating abilities with room to grow - plus have a reliable backbone behind it to support growth and their future IT needs. This would add value to the product.
They hoped to quickly obtain reports in order to evaluate their ideal food and beverage costs, as well as track invoices and export data into their accounts payable software. The ability to analyze food costs and waste, identify item profitability and menu enhancements and integrate into their P&L; proved advantageous for Z’Tejas on a weekly basis.
The Plan: Increasing Employee Support and Success through TrainingAs with any new change, the Z’Tejas management team faced hurdles to overcome in introducing theFOOD-TRAK System to their field. While the managers and chefs appreciated the efforts in giving them a tool to manage their food and beverage costs, the complications involved in learning a new system caused
“The system needed to be user-friendly, have growth potential and be managed effectively without a lot of day-to-day maintenance.”
Jack GilmoreFounding Chef
a lot of discussion. However, with the help of SCI’s extensive on-site implementation and training programs, the entire Z’Tejas staff began to realize the importance of automation for controlling costs and improving profitability.
Over the last three years the Z’Tejas team has begun to see the finer points and the far-reaching benefits of the FOOD-TRAK system. They are aware the information they put into the system is just as important as the data they get back, and they take weekly measures to make sure all of the numbers they input are correct in order to obtain the most accurate reporting. The corporate chefs trust the system now and use it as a daily process for food and beverage inventory management, procurement and reporting purposes.
The Solution: Utilizing FOOD-TRAK for Increased EfficiencyZ’Tejas takes full advantage of the core features of FOOD-TRAK. The restaurant group relies on the system for their inventory management system. FOOD-TRAK gives them the ability to track key
item inventories and spot usage issues on a daily basis.
The restaurant managers love the FOOD-TRAK system’s ability to automate their large orders. The team interfaces with U.S. Foodservice via the FOOD-TRAK interface for purchase orders. After the chefs input their orders via www.usfood.com, their purchase orders show up the next day for entry by the administrative manager on duty. This interface saves a great deal of time for all concerned and is highly valued.
The Z’Tejas restaurant managers and support staff are the primary users of the FOOD-TRAK system for daily and weekly invoice entry, reporting of goods and inventory management. The Executive Team has found great success in the thorough reporting tools available in the system.
The Results: Educated Decision MakingPrior to implementing the FOOD-TRAK system, the Z’Tejas team found volatile food costs were an issue throughout their chain. Not only did implementing the system assist in inventory control and better managing of back-door procedures, it also enabled the team to evaluate menu changes and updates through the use of accurate recipe costing. Z’Tejas uses various features of FOOD-TRAK on a daily basis and has succeeded in making this system an integral part of their organization and a key component to managing their food and beverage costs.
The corporate chefs acknowledge that if the system is frequently updated and there is no “junk in - junk out” they quickly improve their operational cost management. The key to this efficiency with FOOD-TRAK is to make sure their recipes are updated appropriately and data is entered correctly.
About Z’Tejas Southwestern GrillCelebrating its 20th anniversary in 2009, the first Z’Tejas Southwestern Grill was introduced on 6th Street in historic Austin, Texas. Over the past 20 years, Z’Tejas has expanded into 10 locations throughout Texas, Arizona, California, Utah and Washington. Focused on original recipes, complex flavors and fresh ingredients, the successful restaurant chain has become a staple for unique fare in a festive atmosphere. For more information, please visit www.ztejas.com.
About System Concepts, Inc.System Concepts, Inc. (SCI) offers a wide range of services to assist clients control food and beverage costs. Developer of the FOOD-TRAK® System, SCI is one of the world’s leading specialists in the field of food and beverage cost control and management. Since its founding in 1980, more than 10,000 clients worldwide have turned to SCI for consulting services, software automation solutions, system implementation and support. SCI is headquartered in Scottsdale, Arizona. For more information, visit www.foodtrak.com.
“Restaurant managers should be interacting with our guests and team members. The less time spent in the office without reducing profitability the better.”
Jack GilmoreFounding Chef
FOOD-TRAK is a registered trademark and a registered service mark of System Concepts, Inc.
