The role of chief financial officer has evolved beyond a sole focus on accounting and finance, as additional factors like technology have become crucial considerations.
As technology continues to drive innovation in the restaurant space, CFOs are finding ways for it to generate success for their brands.
“We are, in many ways, having played the role of technology companies and thinking that way,” Potbelly CFO Steve Cirulis said.
Cirulis spoke alongside Lazy Dog CFO Robert Linder and Habit Burger & Grill CFO Tiffany Furman during a panel at the Restaurant Finance & Development Conference in Las Vegas November 12. While all three have embraced technology within their work, it has not come without strategic decision making.
Sometimes that means choosing not to adopt certain technology. For Habit, Furman said it reprioritizes which technology the company works with.
This was illustrated, she said, when Habit tested artificial intelligence in its drive-thrus. While well-received by team members and Furman herself, this innovation wasn’t right for the brand at the time.
“We often looked at ourselves and said, ‘Only about a third of our portfolio—so over 100 restaurants—have drive-thrus,’” Furman said. “Is this really the biggest thing for us to be spending our resources on and energy into launching?”
Habit ultimately paused the project and its larger sister brands in the Yum Brands portfolio are leading the way in testing and implementing that technology. The brand might revisit using AI in drive-thrus once the kinks are worked out and there is less work behind jumping back in, Furman said.
Linder shared this sentiment, emphasizing the importance of being selective when deciding which technology is relevant to the brand and its needs.
“I’m always watching what the organization’s ready for at that moment,” he said. “Sometimes the tech may be great, but the organization’s not going to adopt that. They’re in a different place.”
Potbelly has taken advantage of technology in various mediums, as Cirulis reported about 40 percent of sales now come from digital channels. The restaurant updates its app every few weeks, plus it refreshed its tech stack and launched its digital kitchen.
Cirulis said from a customer-facing standpoint, launching the digital kitchen has led to increased order accuracy, more repeat visits and higher satisfaction scores. The innovation increased franchisee interest, resulting in reduced turnover as many look to install digital kitchens.
To evaluate technology, Cirulis revealed the three primary questions he asks: Will it make a difference? Will we use it? Is it safe?
“There’s a lot of things I think that I’ve seen where it’s too complicated or it’s too difficult to integrate or it just doesn’t get used throughout the organization,” he said. “You have to make sure it’s going to actually sit on someone’s desk, and they’re going to make it a part of their daily workflow.”
AI also continues to shape CFOs’ strategies regarding digital marketing and measuring customer engagement.
Exclusivity sells, and Potbelly recognizes that with its app and relaunched loyalty program, which Cirulis called the “centerpiece” of much of the company’s digital efforts.
Potbelly’s app includes access to an “underground menu” and puts offers directly into perks accounts, which allows Potbelly to measure success and engagement in an effective manner.
Habit leverages AI in its sales forecasts and hiring process, with the company now testing a chat bot that can text job applicants and ask interview and application questions.
“I think we’re interacting with our guests very differently today,” Furman said, “so you just have to think differently.”
This article was originally posted on Franchise Times, a sister publication to Food On Demand.
