Case Study Library

Intelligent labor usage helps T.G.I. Friday’s grow sales and increase customer satisfaction in the UK

TGIF Liverpool The director of operations for T.G.I. Friday’s says sales growth and increased customer satisfaction can be attributed to daily labor utilization information managers get from Deterministics’ Labor Intelligence System.

The Labor Intelligence System was implemented in the United Kingdom in 2007 after it had been successfully used extensively in the United States. The system determines the precise amount of labor required to staff each of the 64 Friday’s restaurants in the UK. It takes into account significant variability of labor required to staff each restaurant, across multiple regions, differing menu mixes and physical layouts.

Each Manager-On-Duty logs into the Labor Intelligence System in the morning to review the previous day’s labor usage in 15-minute increments, and then makes adjustments to future staffing schedules. The system has helped managers eliminate wasted labor hours during down times, and, most importantly, ensured adequate staffing to meet brand standards during peak times, said Jonny Hill, Director of operations for T.G.I. Friday’s UK.

“The results has been unrivalled sales growth,” Hill said, “increased guest measures and improved labor efficiencies.” In 2013, same store sales in the UK rose 3.6% and profits were up 18%, according to the Peach Report.

When the system was first implemented, weekly back of house (BOH) waste was reduced by 76% while improving the guest experience, said David Carroll, business development manager for Friday’s in the UK.

“We continue to ask ourselves questions of our BOH operation to reduce complexity, increase efficiency and ultimately eliminate waste while ensuring our operation standards are maintained,” Carroll said.

Labor Intelligence takes a scientific approach to scheduling, forecasting, budgeting and costing labor. It uses time studies of every task required to deliver on the brand promise, resulting in labor recipes that document the labor required for every step of preparing a menu item, providing guest service as well as all non-service activities such as cleaning. Deterministics’ Labor Intelligence System calculates all this data and projects the labor required for every 15 minute segment of the daily operation of a restaurant.

“By carrying out detailed timings of our teams’ activities, Deterministics has created accurate labor recipes for achieving our brand standards,” Hill said. “This accuracy has eliminated the need for management guesswork and has helped the managers ensure we have the right team, in the right place, doing the right things.”

More than 300 managers in the UK use Deterministics’ Labor Intelligence System, which is deliver as a service. They get simple, clear graphic illustrations of labor deployment against every 15 minutes of sales activity.

“The system is very easy for the management teams to understand and embrace,” Hill said. “The Deterministics system has become a part of our teams’ daily activity, delivering huge benefit with very little operational pressures.”

Most importantly, Hill says that Deterministics’ scientific approach to labor measurement and deployment has not just improved the bottom line but also the guest experience.

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