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System helps deli boost orders and ticket
size
by offering customization
From July 2009
By Karen M. Kroll
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Thirty years ago, Nino Salvaggio took a supplier
up on his offer to buy 500 cases of
exceptionally appealing strawberries. While this
was several times the normal order size for his
2,000-sq.-ft. fruit market in St. Clair Shores,
Mich., the strawberries looked so delectable,
Salvaggio was confident he could entice
customers to buy them. By arranging them into
row after row of bright red treats, he did.
That was the start of what has grown into Nino
Salvaggio International Marketplace, now in
three locations in the Detroit area. The stores
sell gourmet meats, fruit, wine, baked goods and
other specialty products. Salvaggio's focus on
quality food has endeared him to thousands of
local customers.
In fact, the stores had grown so successful that
they were actually losing sales. Shoppers would
line the deli area six deep on weekends, says
director of operations Fred Rayle, who worried
that his team was losing the ability to provide
the customer service Nino's was known for.
Rayle and his team researched various devices
that promised to help speed up deli operations.
They considered equipping customers with pagers
that would let them know when their orders were
ready. They looked at different kiosk systems
that would allow customers to place their orders
themselves. Each of these potential solutions
came up short, however. Some required an
extensive amount of maintenance on the part of
Nino's staff; the user interface on others was
perceived as being clunky.
Like Nino Salvaggio's deli customers, Tommy
Woycik found himself getting antsy whenever he
had to wait in line. "I would scratch my head
and ask myself if there wasn't a better way,"
says the president and co-founder of Troy,
Mich.-based NEXTEP SYSTEMS.
At the time, Woycik's work involved designing
public safety and emergency system software. He
partnered with Chuck Wheeler, who had been
designing self-service applications for
quick-serve restaurants. "These were
high-reliability, enterprise applications,"
Woycik recalls. "I thought, ‘If we can make that
work, we can get hamburgers made correctly.'"
Wheeler is now creative director of NEXTEP, in
charge of designing food and beverage self-order
applications for use in delis, quick-serve
restaurants, baseball stadiums and airports.
Several companies had already introduced various
levels of automation to the food service sector
before NEXTEP arrived on the scene. Some early
kiosks would print receipts that the deli
operator could work from. These were fairly
limited, however; for example, they lacked any
way for customers to tell the operator at what
time they wanted to pick up the orders.
In their efforts to leapfrog the systems already
on the market, Woycik and Wheeler focused on
several features. One was an intuitive
interface. "Users have to have a positive
experience the first time," Woycik says. "If
they struggle and the customer feels dumb,
they'll never use it again." To that end, all
buttons on the NEXTEP system have pictures, and
surveys of Nino Salvaggio customers show that
more than 90 percent of first-time users rated
its ease of use excellent or very good.
Moreover, the system lets customers tailor their
orders. For example, they can indicate how
thinly they want their deli meat cut or select
the brand of cheese they want.
Another key point was the order management
system. In a busy deli, it's not unusual to have
five to 10 orders open at once. With NEXTEP's
touch-screen system, deli operators can view
several orders at a time and prepare them in the
way that's most efficient. (For example, if four
roast beef sandwiches are on the docket, the
operator can slice enough beef for all four at
once.)
A bell alerts the deli workers when an order
comes in. An employee fills and packages the
order, attaches the order ticket and places it
in the pick-up location. Learning to work with
the system took employees almost no time, Rayle
says. Instead of focusing on the number that's
next in line, as they would have done
previously, they just look at incoming orders on
the screen.
Online ordering
The NEXTEP application also lets customers place
an order online before heading to the store. The
online user interface is the same as the one in
the store, so customers don't have to learn two
systems. And both the online and kiosk systems
can store orders. Customers who order on a
regular basis can simply enter their phone
numbers into the system, and it will call up
their previous orders. They can re-submit an
order as-is, or change the order and then send
it in.
Order-status monitors can be located around the
store to let customers know the approximate time
that their orders will be done. Customers also
can request to receive a text message when their
orders are done or if the deli has a question on
their order. These features combine to create "a
very liberating experience" for customers,
Woycik says.
Most implementations take just a few hours. The
systems are networked, often linked to the
retailer's POS or scale system. When the
retailer changes the price of an item in the POS
system, the NEXTEP system automatically picks up
the change. The NEXTEP application also includes
a web-based reporting and control module. With
an Internet connection, retailers can log on to
see which products are selling at which
locations and the results of promotions.
Per-store investment
The cost generally ranges from $10,000 to
$20,000 per store, Woycik says. At the low end,
the system would consist of a single kiosk,
order display and order monitor systems.
Higher-end installations would include multiple
kiosks and order display systems.
According to Woycik, most retailers recoup their
investment by increasing the number and size of
orders. "Studies show that 10 to 20 percent of
customers won't wait in line one minute to get
fresh stuff," he says. The NEXTEP system
"eliminates the ‘deli blow-by.'"
Nino Salvaggio's experience appears to bear this
out. "It was staggering to see how many people
use the system on Saturdays and Sundays," Rayle
says. Sales immediately and significantly
increased when the system was launched, he says,
and "when we looked at this, we came to terms
with the fact that these were people we weren't
getting before."
The size of orders tends to grow "because
customers don't feel pressured, as they usually
do when standing in line, to quickly place their
order and move to the side." Woycik says. And,
the system can be programmed to suggest items
that complement the customer's order, such as
Havarti cheese to go with their deli turkey.
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