As labor and cost challenges continue, operators are developing new ways to fill more orders with fewer crew members. Franchise brands are discovering that a low-cost business model that needs fewer hands, a smaller footprint, and updated equipment can be the key to growth.
Franchisors have long embraced the benefits of smaller stores, streamlined kitchen processes, and operational efficiencies, and now they are taking these practices further. Time and motion studies and condensed spaces have taken on more significance than ever. Brands are finding new ways to streamline operations, and making these processes available for franchisees to help them succeed. That can take the form of edited menus, using value-added prepared ingredients, and moving into conversion sites that offer lower occupancy costs.
“In today’s world labor is so expensive, you have to continually find ways to offset that,” said Gregg Majewski, CEO of Craveworthy, the umbrella brand of Genghis Grill, BD’s Mongolian Grill, Flat Top Grill, and several emerging concepts. “You don’t want to cut it on the hospitality side, so you look at other avenues to do so.”
The bowl concept Genghis Grill recently opened a new prototype in Columbus, Ohio. The restaurant measures 2,200 to 2,800 square feet, compared to the 3,800 to 5,500 typical of previous iterations. The new store layout features a flattop grill, which replaces the more expensive round grill. The new grill streamlines the cooking, plating, and serving process, which is all on display in front of customers. “We didn’t take away the show,” Majewski said.
The Dallas-based brand also has in-store ordering kiosks, but Majewski said most of the ordering happens online. Fiber bowls, instead of bowls that must be run through the dishwasher, are now used for all onsite and to-go orders. The new prototype saves the equivalent of 50% labor hours, and overall, reduces the investment the franchisee would have to make to open a Genghis Grill location.
The savings can help long term growth of the brand. “You have to design stores so franchisees can recoup their money,” Majewski said. “They are putting their investment and their livelihood into something that will stand the test of time.” He added that the stores should last 20 years with just cosmetic changes such as new paint, or occasional new equipment such as cold prep tables.
Streamlined equipment
Updated equipment is a crucial element in improving efficiency. The fast casual seafood concept Captain D’s switched from gas fryers to electric fryers, which offer several advantages. With electric fryers, there is room for under counter refrigeration, which was not possible with gas fryers. That saves the crew member several steps in getting ingredients. “The individual just reaches down,” said Brad Reed, chief development officer of the Nashville, Tenn.-based brand. “From an efficiency standpoint that really worked out well.”
The electric fryer is more efficient than gas, Reed said, so it eliminates about 30 seconds to one minute from the cook time. Electric fryers generate less heat than gas fryers, so the hood is different and doesn’t need large, high speed fans. The kitchen uses less air conditioning and doesn’t need to be as large as before. The brand tightened the layout and found that they could do well in smaller buildings. “On top of that we were able to eliminate one person in the kitchen compared to other restaurants doing like sales,” Reed said. “Then we started thinking, let’s take a look at other things.”
Captain D’s also launched an Express model, which features a double drive-thru and carryout service only. The Express, which has a reduced menu for faster throughput, has a workforce of 20 to 25 crew members instead of the typical 40 to 45 in larger locations. Dine-in restaurants are still vital, and Captain D’s also offers 22-seat and 44-seat models.
Now Captain D’s offers franchisees flexible prototypes, which provide opportunities for owners to open in a variety of sites. Many are conversion sites, where other brands moved out. In fact, Reed said, Captain D’s is the second generation in former locations of 18 different brands. “There are more challenges such as plumbing and electrical if it was an older restaurant,” Reed said. “The newer restaurants are in better shape and more current. That makes it a little easier.”
Ingredients change
Another way to streamline kitchen operations is to use value-added products. At Main Squeeze Juice Company, frozen bananas are a key ingredient in smoothies and other items on the plant-powered menu. “We don’t have ice in smoothies,” said Julie Canseco, chief operating officer of the New Orleans, La.-based brand. “You are paying for whole frozen fruit.”
It’s a challenge to source frozen bananas that meet Main Squeeze brand standards, so crew members spent entire days peeling, slicing, and freezing bananas in stage 5 of ripening, which means yellow with green tips. As the brand grew, it was able to partner with a vendor that sources bananas from Guatemala, and sells them sliced and frozen. “We couldn’t get that for one store,” Canseco said. “Once we hit 20 stores, we had the volume we need.”
The pre-frozen bananas save labor, and also save kitchen space. Before, workers froze the bananas in sheet pans in two-door freezers. Now the sliced bananas come in small packages that can fit in one-door freezers. The kitchens now need fewer prep tables and can also use smaller sinks instead of the previous three-bowl sinks. The store footprint has been reduced from about 1,700 square feet to 1,000 square feet.
Main Squeeze also began using super-speed benders that reduce blend time from one to two minutes to about 20 seconds. “We are competing with fast food,” said Canseco, who is also a Registered Dietitian Nutritionist. “Our goal is to make healthy convenient.”
Streamlining menus and ingredients is a long-term strategy. Michael Haith, CEO of Teriyaki Madness, made several menu changes when he bought the company in 2016. “I took away some things that were overly complex and didn’t serve the owners or the customers,” he said. “The customers weren’t asking for these items like they should.”
The Denver-based brand also reduced the number of items that go into recipes. That helps make prep easier, and streamlines the supply chain. “The more complex the business, the harder it is to execute,” Haith said. “We strive for simplicity and elegance every day of our work lives.”