CUSTOMER CASE STUDY
Debunking Myths with Data to Drive Franchise Growth
BI system enables Jersey Mike’s Franchise System to turn data into actionable strategies
As a franchisor, Jersey Mike’s (www.jerseymikes.com), is intent upon making sure that franchisees have the tools to ensure its 1,000+ restaurants nationwide remain profitable. For chief marketing officer, Rich Hope, one key to reaching those bottom line goals was to not only have access to as much data as possible, but being able to analyze information quickly and take appropriate actions.
The decision to look for a solution to facilitate the compiling and analysis of data was driven by Jersey Mike’s franchisees. While happy with Jersey Mike’s proprietary POS system, it was not designed to analyze data and it was hard to get any numbers from the system. “We knew the numbers were there, but the question was how we could access them better,” Hope recalls. After looking at numerous companies, CrunchTime emerged as the front-runner.
Utilizing CrunchTime’s BizIQ business intelligence and data warehouse platform, Jersey Mike’s is able to take a deep dive into tens of thousands of data points. Hope explains that because CrunchTime’s soft- ware compiles data from all the restaurants systems – POS, accounting, vendor ordering, labor, etc., it offers a clearer understanding of the business from the national level down to store-level. This holistic view of the business quickly gives a 360 degree answer to questions in a highly visual format that makes it easier to see where action needs to be taken. While the former method of trying to glean data from the POS could take hours, BizIQ delivers reports in seconds. “If something with BizIQ takes thirty seconds, you wonder why it’s taking so long,” Hope describes.
The search-by-date functionality proved valuable after Jersey Mike’s franchisees implemented a targeted price increase in the Los Angeles market. Wanting to understand the impact on transactions, Jersey Mike’s used BizIQ to analyze the six weeks prior and the six weeks after the price increase took place. “Transactions not only held, but increased and we were confident that price increases could be practical in select markets,” Hope explains.
Staying ahead of the curve
Because BizIQ analyzes back-office data in addition to POS data, Jersey Mike’s is able to compare company-wide data and figure out what’s most profitable and why. Hope admits that he likes debunking myths by using available data, a task which is now easier with BizIQ. “Before BizIQ we often operated on anecdotal data,” Hope states.
Trying to sift through circumstantial information was often time-consuming, but the BizIQ platform allows Jersey Mike’s to quickly ask questions and see the bigger picture. As an example, Hope notes that while anecdotal information was saying cheese steak sales were 40% of business, BizIQ revealed that overall cheese steak sales were only 18% of sales and even the markets that sold the most were only at about 25%. “Discoveries like that are interesting because you can analyze dinner incidence with the goal of developing methods to drive patrons to visit during the dinner hours. “We’re looking at the data and devising some special offers and promotions to drive the dinner daypart,” Hope explains. He is able to monitor promotions quickly to see the results compared to others.
Driving business with data
Because BizIQ also ties into the rewards program, not only can Jersey Mike’s access data such as what individual members like to eat, but the system looks at trends in the marketplace as well. “We are able to look at a group of people that never come to the store after 2 p.m. and see that they are a prime audience to introduce dinner,” Hope notes. “Let’s give them a special offer to get them in after 3 p.m. Now we have the ability to really quickly analyze that data through BizIQ and take action.”
Hope explains that franchisees aren’t opening new stores if they aren’t making money. “Having a tool in place to help stores succeed allows owners to make sound decisions about opening more locations,” he concludes.