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50914470
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1993-07-30
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HP's consulting solutions for Taco Bell
HP's consulting solutions for Taco Bell
[Figures (if any) appear in document image only]
Meeting business needs with support services
Taco Bell Corp., the PepsiCo, Inc. subsidiary generating $3 billion in
annual sales, is the largest and fastest growing quick service Mexican
food chain in the world. With 3,700 company and franchised restaurants
operating worldwide, Taco Bell uses technological innovation and savvy
marketing to outperform its competitors. To maintain its position as
the low price value leader as it aggressively expands operations, Taco
Bell implemented a companywide information system using Hewlett-Packard
products and services.
Working with HP, Taco Bell delivered the TACO (Total Automation of
Company Operations) system to its company-owned restaurants. TACO
drastically reduces the company's operating costs, increases
productivity, and solidifies its competitive position. Relying on HP's
skillful engineers to stage and distribute this system has enabled Taco
Bell to focus its limited resources on expanding business. In 1991,
business grew by 17 percent, twice the industry average.
TACO has helped Taco Bell reduce menu prices while improving margins
for the third consecutive year, despite a contracting economy and
reduced consumer spending. Since TACO's installation last year, company
savings amount to the equivalent of 1.4 percent of annual sales,
through better management of food and labor costs and reduced
administrative overhead. Says Jay Johnson, manager of restaurant
systems, "To roll out this strategic system, we needed a single,
reliable vendor who could manage the integration, testing, and
nationwide installation of this multivendor system. Our vendor needed
to be able to deliver a significant volume of systems, on time."
Leveraging resources
TACO, developed over 3 years by Taco Bell's Restaurant Systems group,
automates much of the restaurant's administration and data collection.
The system runs on the HP Vectra PC, chosen for its reliability and low
maintenance requirements. With neither the staff nor the experience to
roll out the system to its company-owned restaurants, Taco Bell looked
to outside help.
Says Johnson, "Using internal resources to stage and distribute TACO
would have cost the company tremendous amounts of time and money. We
would have had to hire and train engineers for what would be a
temporary function. It was an ideal case where outsourcing made a lot
more sense."
HP's added value
The HP Customer Service Center in Corvallis, Oregon was contracted to
do integration and testing for HP and non-HP hardware. HP engineers
loaded the appropriate system software and application modules. Then
they tested the complete system to ensure fault-free operation at the
restaurant site. Systems passing all tests were shipped to HP's field
offices across the U.S. and stored as the restaurants were readied for
installation. At the appropriate time, local HP engineers installed the
systems. Within 18 months, 2,100 systems were successfully installed
from New York to San Diego, with minimal disruption of operations.
Continues Johnson, "We place a tremendous amount of value on
performing staging up front. Our restaurants are very, very busy. With
a relatively low average check of $3.40 and a high volume of business,
we can't afford disruptions. Our goal was to spend as little time in
the restaurant installing the system as possible, which we
accomplished."
"HP has a great focus on customer service. HP consultants are
knowledgeable and deliver what they say they will."
Jay Johnson
Manager of Restaurant Systems Taco Bell
Enhancing return on investment
Since its installation, TACO has become a critical part of operations.
Indispensable in daily operations, it also helps Taco Bell overcome
inherent limitations in the point-of-sale system in use today. TACO
extends the point-of-sale system's life by enabling Taco Bell to
integrate new technologies such as hand-held radios for customer
ordertaking. With TACO's flexible architecture and the hardware's ease
of integration, Taco Bell is able to implement productivity-boosting
technologies today instead of years from now. TACO also has become the
central controller for robotic devices being introduced within
restaurants. Says Johnson, "The TACO system has become our platform for
future growth and expansion."
Increasing efficiency
With increasing reliance on TACO, the company also emphasizes
maintenance. HP's maintenance program is tightly integrated with Taco
Bell's help desk, simplifying interactions for restaurant managers. As
any problem arises, users simply call the help desk, which dispatches
HP when hardware issues arise. HP provides hardware service within 4
hours of receiving the dispatch. Continues Johnson, "We've had great
service and great reliability from HP. The engineers we've worked with
are of very high quality. Whenever a maintenance call is placed, the
engineers get out to the site within the contracted time, day or night.
I can't think of an instance when an HP engineer went out and couldn't
bring a system back up on site by departure time."
Adding HP's diverse experience to Taco Bell's help desk means added
depth and breadth on the front line. Taco Bell's business, like that of
many billion-dollar companies, is rapidly changing. As operations
become more technologically complex, Taco Bell's relationship with HP
is likely to expand. Says Johnson, "Although we do manufacture food,
it's not where we want to focus our efforts. Our strengths are on the
marketing side, working with retail customers. Anything we can do to
free our people from the back of the restaurant and put them in front,
interacting with customers, is in our best interest." As
back-of-the-house process control automation expands, Johnson can tap
additional manufacturing expertise through HP's experienced
manufacturing professionals. Together, they can explore the complex
issues of integrating Taco Bell's process control systems.
Over the next decade, Taco Bell's shift in focus from quick service
restaurants to quick service food distribution will add thousands of
new points of distribution to its expanding network. Planned growth
includes international expansion as well as entirely new distribution
channels, such as kiosks, schools, airports, shopping malls, and retail
stores. For Taco Bell, working with HP means working with reliable,
well-engineered, flexible hardware and a team of highly skilled
professionals who can meet Taco Bell's changing needs. Says Johnson,
"HP has a great focus on customer service. HP consultants are
knowledgeable and deliver what they say they will, which given the
complex coordination of such a large project, has helped make this
system a success."
Contact HP today
HP's staging, distribution, and support programs enabled Taco Bell to
realize tremendous return on its software investment by efficiently
delivering reliable systems to its restaurants nationwide. To find out
how HP services can help you meet your business needs with
cost-effective solutions, contact your nearest HP representative today.
TACO BELL
Technical information in this document is subject to change without
notice.
(c) Hewlett-Packard Company 1992.
All Rights Reserved. Reproduction, adaptation, or translation without
prior written permission is prohibited, except as allowed under the
copyright laws.
Printed in USA 06/92
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