KFC franchise turns around poor employee performance and reduces food costs with Delaget Guard
The business challenge
Kelley Poindexter, President and CEO of KFC franchise Poindexter and Son, has always known a solid loss prevention system is important to his business. While employee theft is certainly something he keeps an eye on, the bigger issue for his business has been team members ringing in items incorrectly. This problem not only means customers weren’t being charged the right amount, it has also caused food waste and made reporting and forecasting inaccurate. But it was difficult for him to take action, because his previous loss prevention system made it hard to discern what was happening at the ticket level.
Adding to the challenge, Kelley didn’t have visibility into where these errors were occurring or who was making them. With record-low unemployment rates in his home state of Indiana, he not only needed to identify staff who were making these errors but also hang onto them and improve their performance.
“We don’t want to terminate employees,” Kelley says, “We’re deeply invested in our staff and the idea of letting them go made me cringe.”
Kelley first learned of Delaget when KFC Corporate announced that Delaget Guard had been selected as KFC’s preferred loss prevention solution. Delaget Guard is a Software-as-a-Service (SaaS) solution that dramatically reduces loss due to employee theft and error. The system uses proprietary algorithms to find suspicious situations and prescribes action to store managers to address those situations. With KFCC’s recommendation of Delaget Guard, Kelley jumped on board.
Using the tool’s drill-down capability, Kelley and his team were quickly able to see specific details on each employee, transaction, and individual item. He “racked and stacked” his employees on their performance, as well as estimated losses and shifts worked for the period.
“What I like best about Delaget Guard is the ability to drill down into each transaction. I can identify problems a lot quicker, see the receipt, print it, and send it to the store, in no time at all,” Kelley says. “We recently had a 50% discount on a catering order, and I was able to see the exact receipt and address it immediately with the employee.”
Kelley’s store managers are also connected to the data and understand how to use it. They run reports each week on open coupons, discounts, voids, and customer giveaways, which they post in the restaurants and review with employees. The staff knows they’re being monitored, which has positively impacted the team’s performance.
What Poindexter and Son has found from using Delaget Guard is not as much about theft as employee training opportunities.
“In the past, we’ve had to fire employees for poor performance, but now with Delaget Guard, I can identify employees who aren’t ringing in orders correctly or are having other issues and provide them the training they need,” says Kelley. “The software has saved us from having to terminate employees, which is huge.”
Using Delaget Guard’s average transaction data, Kelley watches for low outliers and works with the employees to make sure they are suggestive selling and coaches them on what the average ticket should be.
Kelley’s team uses Delaget Guard in management meetings to educate shift supervisors. “It helps us make business leaders. They understand the numbers and how those numbers affect the business,” he says. “I can also identify and celebrate our employees who are doing well. We couldn’t do that with the old program.”
Since starting with Delaget Guard, all of Kelley’s restaurants have improved their numbers, including reduced food and paper costs, boosting his bottom line. “I think we’ve just touched the tip of the iceberg with Delaget Guard,” says Kelley. “I would definitely recommend the solution. It’s been very beneficial to us.”