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Q: Fast Food Restaurants ( Answered,   1 Comment )
Question  
Subject: Fast Food Restaurants
Category: Business and Money > Consulting
Asked by: timmmysg123-ga
List Price: $10.00
Posted: 03 Oct 2002 13:34 PDT
Expires: 02 Nov 2002 12:34 PST
Question ID: 72159
do fast food restaurants need internet access (for its customers and managers)?

Request for Question Clarification by easterangel-ga on 03 Oct 2002 14:19 PDT
Hi thanks for the visit. Are you looking for articles about examples
of use of internet access by fast food restaurants? Just let me know?

Request for Question Clarification by mvguy-ga on 03 Oct 2002 14:57 PDT
What do you mean by "need"?  Thanks!
Answer  
Subject: Re: Fast Food Restaurants
Answered By: bookface-ga on 03 Oct 2002 18:40 PDT
 
I'll bite the bullet and answer this one.

No, fast food restaurants do not need internet access; the McDonald's
line, for example, existed before the internet even had been created,
hence they do not need the internet.

Please post a clarification request if necessary.

Request for Answer Clarification by timmmysg123-ga on 03 Oct 2002 19:40 PDT
what I mean is could McDonald's use the Internet to connect their
franchisees and thereby allow franchisees to manage their inventory -
Just In Time (among other things). Is there any evidence that any of
the major retail chains are trying to establish such a thing? How do
they manage inventory today? Supplies come from corporate, right? Do
they fax orders in? Phone them in? If the retail stores were linked up
to corporate real-time over the Internet is it feasible to think they
would be able to manage their inventories? Are any retail chains doing
this (or planning to)? If so, who? If not, why? What would it take to
make that happen and how?

Clarification of Answer by bookface-ga on 03 Oct 2002 20:32 PDT
Oops, pressed the wrong button. Rather than repeat a long entry,
please see comment for information.
Comments  
Subject: Re: Fast Food Restaurants
From: bookface-ga on 03 Oct 2002 20:32 PDT
 
It is possible to have real-time internet linkups for management
purposes.
As you can see from the following search:
://www.google.com/search?q=inventory+internet+management
there are a variety of companies that provide software for this
purpose, for a variety of industries.
http://directory.google.com/Top/Business/Hospitality/Software/Catering_and_Food_Inventory_Software/
als provides many links to products that provide this service,
including Ontarget/Maxtel ( http://www.maxtel.co.nz/ ), which provides
management tools for some "450 Quick Service restaurants and
hospitality facilities", some of which are McDonald's franchises. One
feature of their software is a plugin module which links to a
centralized stock database.

But since rates of consumption at fast-food restaurants are relatively
quite static, and virtually all products are consumed or are thrown
out, it is sufficient to have a delivery schedule for the regularly
shipped items and a no-frills standard phone or fax order system for
those more irregularly stocked items (i.e. napkins, kid's meal toys).

Some retail chains are doing this already, but many have yet to adopt
it; it depends heavily on the decision-makers behind the companies,
whether they are trying to stick it out with the traditional methods
which are tried-and-true, or whether they want to stay cutting-edge
and bottom-line priced, and try automate as much as possible to reduce
effort or costs.

Generally the biggest chains are more traditional in their enforced
methods (there was a lot of attention when McDonald's put up just
their training facilities partially online last year, implying that
was a major step at the time). The smaller ones profit less from
greater automation in inventory, though they may try pre-existing
software-based methods (as opposed to custom inventory tools that more
technology-related companies such as Best Buy tend to have developed
under contract) in order to undercut the competition.

However, while the reduction in cost may seem large, it is really not
as great as it may appear; only one person is required as a go-between
for many, many franchised locations and one general distributer for
the area, but if the complication of technology is introduced that
technology must be made available at every site and backup links must
generally be maintained in any case unless the technology is tested
and found to be more or equally reliable to standard transactions.

So I would say that, no, it is not highly feasible, but it is doable.
Some fast-food retail chains, indeed, do use the internet to process
their inventory, but the general trend is still with the
tried-and-true methods fax/telephone inventory requests, and that's
probably the way it will stay for a long time.

In late 2000, though, Priceline.com founder Jay Walker proposed
database tracking systems for interstore development, with notices
about when food is prepared and when it will go bad; thus customers
can get reduced rates on food that will shortly be thrown away. (I
myself often experience this phenomenon with donut chains, late at
night, around 3 to 4:30, when new stock is about to appear and the
kind clerks often offer several dozen for the price of half a dozen or
other generous offers.)
http://www.businessweek.com/smallbiz/content/sep2000/sb20000920_006.htm

Thank you for your interesting question, though I suggest you post
more clearly next time what it is you want to know. Giving as much
detail as you can helps researchers to answer the question you want
and cuts down on the delay towards your being helped, though as in
this case clarification can be provided if necessary.

. bookface-ga

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