Many operators now use video surveillance systems for purposes other than security, with those purposes ranging from fending off false worker's compensation claims to monitoring the back room to ensuring that customer service occurs in a timely manner. But it is not only the application of such technology that has changed in recent years; the technology itself has evolved, with some variations now marketed as "intelligent" systems that do more than record incidents and send exception reports.
Some companies, among them 371-unit regional chicken chain El Pollo Loco of Irvine, Calif., and a number of McDonald's franchisees, are deploying interactive systems that enable voice communication between employees and remote monitoring centers as well as feature remote, third-party equipment auditing capabilities.
For other firms, the technology of choice comprises systems that in addition to being integrated with a variety of applications, in some cases are centrally managed through a Web interface and offered through hosted subscription services. Chipotle Mexican Grill Inc. of Denver, which operates about 600 fast-casual Mexican eateries, ranks among operators that fall into this category, as do certain Subway and IHOP franchisees.
"Remote, third-party monitoring, with and without the interactive component, gives us an unprecedented level of security and overall control," asserted Michael Simmons, El Pollo Loco's director of risk management. Two different iterations of that system — iVR from Westec InterActive of West Des Moines, Iowa — are being installed in 105 of the chain's 155 company-owned stores.
Simmons said a desire to gain enhanced all-around control of EPL's units was the impetus for replacing what he deemed "obsolete perimeter systems and outdated VCR and multiplexer technology" with more sophisticated equipment. To justify the upgrade, the operator assigned each unit a threat-level score reflective of national crime statistics. Thirty stores were designated as high-threat, or "A," locations; 75 as medium-threat, or "B," locations and the remainder as low-threat, or "C," locations. Each tier was assigned a specific security package to address its level. Along with perimeter alarms and motion sensors, iVR systems comprising digital video recorders, or DVRs, surveillance cameras and two-way microphones were installed in "A" stores, while DVRs and cameras only were deployed in "B" stores.
Both "A" and "B" stores are equipped with iVR cameras inside and outside, with the former having as many as 12 to 14 per unit. Images captured by the cameras are recorded by the DVR. A broadband Internet connection links both the video surveillance equipment and alarms to an automatic monitoring system at Westec headquarters that tracks their status and displays images captured by the cameras. Westec personnel also utilize the connection to conduct two monthly remote "walk-throughs" of each store to check for potential problems and hazards, such as doors left unlocked or ajar when they should be secured.
In addition, the system includes silent "panic buttons" employees can push to inform Westec should an incident occur or if they suspect one is in the works and they prefer not to use the microphones. "A" stores have voicedown capabilities, so that Westec personnel can, when signaled by the panic buttons, communicate via microphone with suspects or perpetrators in the event of a robbery or similar situation. DVRs in individual units are also pre-set for digital recording modes, which vary from store to store and include 24-hour recording; recording of specific events, such as camera motion detection; HVAC abnormalities; and alarm-triggering.
Simmons was unable to quantify the direct savings gleaned from the intelligent system, whose cost Jon Bolen, Westec's chief operating officer, pegged at about $10,000 per store for a setup with five to nine cameras and the DVR; the exact price varies depending on the client chain's size. Apart from the hardware costs, the Westec service includes a monitoring fee that averages $250 to $270 per store per month, Bolen added.
EPL's Simmons noted that the Westec deployment yields benefits El Pollo Loco was unable to reap from its old technology and would not be experiencing had it instead hired armed guards as it had once considered doing.
"Burglary-related losses are on the decline due to the obvious security system changes in the stores; in several cases, voicedown communications triggered by alarms and panic buttons have averted incidents because [perpetrators] were scared away after being addressed by someone at the monitoring station," Simmons said. "Because of incident-triggered recording, we have seen a positive downward trend in robbery-related employee claims for benefits. And we now know when [alarms in] every store are set as required and whether units' [surveillance and alarm] equipment is functioning as it should. This was not the case before, and we did have some losses because of it."
Simmons anticipates that the chain will experience even fewer losses down the road, as Westec integrates new mapping capabilities into the system. The vendor is currently adding a Google Maps interface to afford personnel at its central location aerial views of both sites being monitored as well as surrounding areas. The security services provider believes this should enable its personnel to be more proactive in gaining control over potentially dangerous situations.
Meanwhile, John Snowberger, owner of eight McDonald's franchises in and around Roswell, N.M., said iVR's voicedown feature not only led him to acquire the system for one of his units but also has proven to be the greatest advantage of deploying the technology. The restaurant's spaceship-style design and location on Roswell's main drag attract young "cruisers" who drive their cars up and down the street and use its parking lot as a "turnaround" point and gathering spot. Snowberger viewed this as a safety challenge but was reluctant to ask employees to risk trying to disperse the crowds when necessary. "The voicedown capabilities of the system are a good alternative," he observed.
Not long ago, Snowberger recalled, employees became concerned about an unusually large gathering outside the Roswell restaurant and alerted Westec's monitoring center via one of the in-store panic buttons. A Westec intervention specialist let the loiterers know the premises were being monitored and asked them to leave. "The intervention specialist noted individuals by their clothing, which surprised them, but they didn't leave, even after a second warning," Snowberger stated. "The specialist then called the police, who wrote complaints for the individuals involved. The crowd dispersed, and most importantly, employees did not have to confront those individuals gathered outside the restaurant."
Not unlike executives of El Pollo Loco, officials at Chipotle Mexican Grill were attracted to sophisticated video surveillance based on its potential to yield enhanced overall control of all stores, according to Monty Moran, the latter company's president and chief operating officer. The firm this past month commenced a rollout of the Envysion Video system by Denver-based Envysion Inc. Surveillance cameras and DVRs are being installed in Chipotle stores at a rate of several dozen per week; most units will have the equipment up and running by the fourth quarter of this year, according to parties involved in the deployment.
Moran and his colleagues wanted to allow loss prevention and other supervisory personnel to monitor stores remotely but preferred not to compel them to "sit in front of DVRs or load software onto remote computers" in order to do so. Envysion Video differs from most other systems in that images captured by surveillance cameras are uploaded to the vendor's server and made accessible on a password-protected website with a centralized interface for log-in IDs and passwords; thus, it was deemed the best fit. Chipotle has begun to utilize the application to view both live and recorded video of its operations.
"The Envysion system will help us create a better environment" in stores, Moran said, explaining that such improvements initially will be tied to security because all activities are recorded. Later on, he added, operations and customer service practices are expected to benefit from observations made using the system, with improvements possibly touching on such things as best practices at the point of sale.
In the future, Chipotle's Envysion configuration may be modified to include interfaces with the POS system to permit remote monitoring of transaction processing, sources at the chain said.
According to Envysion, the subscription rate for its video service ranges from $50 to $75 per month for chains with a relatively small number of sites and can reach $150 per month for larger chains. Hardware costs and installation fees are not included in the monthly service fees, the vendor indicated.
