Feb 2005

Menu management

Eatec software-based management systems cuts the chore of managing multiple casino foodservice operations down to size

By James J. Hodl

Food and beverage, long an integral part of the gaming industry, is becoming even more important as casinos compete for every customer dollar they can by providing myriad and varied dining experiences to keep patrons from straying off premises. But more in-house dining choices also can multiply managerial headaches due to the wide variety of venues-from upscale steakhouses to buffet lines.

To cut this chore down to a manageable size, casinos need the proper tools, such as those offered by Eatec Corp., an Emeryville, Calif.-based developer and marketer of software-based management systems for the foodservice industry.

"For nearly 20 years, Eatec has been devising computerized solutions to help foodservice businesses reduce costs, improve operational efficiencies, and thus foster a quick return on investment," said Karyl Toms, director of sales at Eatec.

"The latest and most sophisticated management system we market is EatecNetX, a true enterprise solution with which casinos can keep track of all foodservice and hospitality venues from a single database," Toms explained. "This Web-enabled system instantly captures inventory, costing, sales and other critical information for record keeping and analysis reports, and has completely integrated accounts receivable and accounts payable modules. It interfaces with point-of-sale and third-party accounting packages, and can be expanded to include catering, concessions and retail operations."

Growing with technology
Eatec sprang from a chance meeting at a party in 1985 between software engineer Jalal Saad and catering chef Michael Selleck. During their conversation, the two recognized a need for a new type of management technology that would provide managers of catering businesses with real time information on their operations, to better maintain their firm's competitiveness and profitability. And they thus formed a new business to accomplish that goal.

The first product Saad and Selleck collaborated on was CaterTec, a DOS-based system for valuing and controlling inventory, the development and costing of recipes, and menu mix analysis. At first, each system function required a separate program. But by 1990, all functions were included in the same software package for convenience, and the ability to transfer data from one program to another in less time.

After that, product improvements came rapidly, almost always to take advantage of improvements in hardware, computer operating systems, and the Internet. Eatec management systems have all been fully Web-enabled since 2000, allowing for the transfer of data through an Internet or intranet infrastructure to a central database; even ones in other states, as the Applebee's restaurant chain does.

Features of Eatec software packages have always been dictated by the needs of the foodservice industry and parallel food and hospitality operations, such as those found within hotel-casinos, explained Shannon Kelley, marketing manager at Eatec.

"As a result, we listen very carefully when people involved in foodservice offer suggestions for improvements," she said.

The goal of Eatec systems is to collect any data that can be useful to a food or beverage outlet in reducing costs, increasing revenue or improving productivity. This is especially necessary in casino-centered hotels and resorts where the hospitality mix can include several bars areas, a coffee shop, two or three upscale restaurants with widely varying menus, a deli, a coffee bar, assorted buffet areas, and catering operation, and a banquet room, Kelley said.

Keeping track
One of the big problems facing casinos with multiple dining outlets is keeping track of which foods and supplies are used by which outlets, Toms noted.

"Most management systems will note what went into the storeroom. But EatecNetX also tracks these items from the storeroom to the individual serving outlet, and even who ultimately sells the item," she said.

"For instance, a keg of beer might go to a bar or pump room. But in addition to those outlets' customers, beer might also be drawn from that keg by up to four restaurants on premises. Using the EatecNetX Pump Room Module, a percentage of the cost of the keg is assigned to the individual restaurants based on the serving size. By allocating costs in this manner, a casino gets a better idea of the profitability of each outlet."

"Such thorough tracking of food and supplies through a casino's foodservice operation also pinpoints drains on profits," Toms added. "This can be a bartender who gives away too many free drinks, or it can pinpoint exactly where thefts are occurring within the operation. By eliminating these shortages, costs can be reduced for the casino."

By better maintaining food acquisition and inventory records, EatecNetX also can trim overall food costs by up to 6 percent. Tight inventory control can reduce food loss due to spoilage by scheduling food purchases on a just-in-time basis. Maintaining records of supply pricing can assure best prices when bulk purchasing for a catered event. And recipes can be programmed into the system to assure standardization (and less waste) as foods required for these menu items can be purchasing in quantities based by anticipated demand.

Improving the bottom line
Use of EatecNetX also can increase revenues, Toms said. Menus can be engineered to assure high profits by targeting foods with the best seasonal prices. Based on records of past demand, adequate foods can be acquired to assure no loss of sales due to underproduction of certain menu items. The system performs time-of-day sales analysis that can be used to have menu items cooked for high demand periods without overproduction that can lead to losses through waste. And menu item prices can be adjusted to account for changes in food prices while still maintaining the target profit margins.

Because EatecNetX automates so many tasks from the general ledger to producing employee productivity reports, the demand for labor is reduced. And foodservice employee work schedules can be shifted to assure having ample employees on duty when most needed, such as for banquets, Toms noted.

"At the request of the Native American casino market, a retail module is now offered with EatecNetX that also enables the management of sales in gift shops on the same data base as foodservice and hospitality," Toms said.

On average, return on investment in the EatecNetX system is less than a year, Toms said. Eatec's experienced staff of computer professionals are also available to help new customers speed implementation of the new technology.

Because Eatec serves so many foodservice markets (including restaurant chains, sports stadiums, convention centers, universities, theme parks, airline catering firms and supermarket foodservice operations), it is constantly developing new features for its system that could be employed elsewhere.

Toms is especially proud of the foodservice management system Eatec installed in the United Center in Chicago, the home of the Chicago Bulls and Chicago Black Hawks. The system manages not only the stadium kitchen and concession stands, but also the luxury boxes.

Paying occupants of the luxury boxes can go online to the Eatec system ahead of time to place food and beverage orders for game day. These "owners" can select from a list the content of their sandwich tray, snacks, and types of liquid refreshment. This feature could have applications in casinos to enable players to get drinks, snacks and sandwiches delivered without leaving the tables or favorite slots.

SIDEBAR:

Eatec Corp. at a glance

Name: Eatec Corp.
1350 Ocean Ave.
Emeryville, Calif. 94608
(510) 594-9011
Fax: (510) 594-9091
www.eatec.com

Contact: Karyl Toms, director of sales
Shannon Kelley, marketing manager

Founded: 1985

Products:
EatecNetX software-based management system for foodservice and retail operations.

Major markets and applications:
Restaurant chains, hotels, resorts, casinos, sports stadiums, convention centers, universities, theme parks, zoos, airline catering firms, supermarket foodservice kiosks.

Major customers:
Cache Creek Casino Resort
Foxwoods Resort & Casino
Inn of the Mountain Gods Resort & Casino
Kewadin Casinos
The Lucayan Resort, Grand Bahama Island
New York New York Hotel & Casino
Orange Lake Resort
Pinnacle Entertainment
Rampart Casino
The San Diego Zoo
San Manuel Indian Bingo & Casino
The Venetian Las Vegas
Waldorf-Astoria Hotel

SIDEBAR:

Eatec milestones

Through the years, Eatec Corp. has steadily upgraded the abilities of its restaurant/food-and-beverage industry management software packages. Among its many milestones are:

• 1985 - CaterTec, a software package for the management of inventory, costs and menus of catering businesses.
• 1990 - Offers its first food and beverage management software package that puts all programs on a single product.
• 1995 - Introduces the first Windows-based back-office management system for the entire food and beverage industry.
• 1997 - The Enterprise version of EatecNet debuts, enabling the management of multiple outlets from a single centralized computer.
• 2000 - EatecNetX incorporates browser technology that enables users to access the management system anywhere.
• 2001 - The abilities of EatecNet and EatecNetX are expanded to allow any distributor system to communicate directly over the Internet to systems managed by these software programs for the exchange of purchase orders and pricing information.
• 2002 - Two add-ons to EatecNetX are introduced. The EatecTouch accessory is a touch screen inventory reporting device. EatecPocket is a mobile accessory that enables users to perform inventory transaction from any location.

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