Business Case Part 1

Our last article described in overview how Quiznos had revamped their cash register polling system. This article begins a look in more detail at the specific areas where Quiznos has experienced savings. Some of these savings are a function of the size of Quiznos's polling infrastructure, but many of these savings will apply to other deployments of LAVA HQ-ST Links, regardless of scale.

The primary areas of savings are:

  1. eliminating phone lines
  2. reducing head office servers
  3. cutting ECR reprogramming costs
  4. reducing support costs
  5. securing royalty payments
  6. no static IP address at stores
  7. no long distance telephone
  8. reduced installation costs

The first five of these areas of savings are discussed in this article; the sixth will be covered in the next, and the remaining two will be covered in the third.

Savings: eliminating phone lines

By using ST Plus devices in stores, and polling over IP, Quiznos has been able to eliminate one of the three phone lines running into each store (two still exist; one for voice and one for fax).

In addition, Quiznos has been able to cut down on phone lines not just at the store, but also at the corporate office. When polling by modem, they were polling 1500 stores out of their chain of 5000, using 15 corporate office modems and phone lines to poll 1500 stores, 100 stores per server. Now, they no longer need those lines.

Savings: reducing head office servers

Quiznos's corporate office modem polling configuration was polling 100 stores per server. With the LAVA HQ-ST Link they now poll 300 stores per server, reducing to one third their need for servers per store.

Savings: cutting ECR reprogramming costs

Quiznos is also experiencing great savings and increased flexibility when downloading menu information to store cash registers. With modem connections being as unreliable as they were, changing a cash register's information forced Quiznos at times to have the store send the unit to the corporate office, where it was reprogrammed and sent back to the store, at a cost of about $300 per change per store. In the meantime the store was doing its business on paper.

With the LAVA HQ ST Plus, Quiznos is able to redo menus centrally and quickly. They just completely redid the store menus in New York, entirely over their high speed HQ-ST Link connections.

Savings: reducing support costs

As Jane Govier, Quiznos's Manager of Store Operations and Technology points out, with HQ-ST Links every store setup is the same, and "troubleshooting is simpler." Things are much better now on the support side, and Quiznos is reworking their corporate office support desk, as they now require fewer people doing follow-up on missed polls. They no longer also depend on the store to answer the phone for a poll and Jane says, "reliability of info is huge."

Savings: securing royalty payments

Collecting franchise royalties requires timely and accurate data on store sales. Quiznos faced the difficulty of polling, using modems, 5000 locations nightly.

However, this polling was essential to Quiznos's business model: franchise royalties are calculated directly on sales figures, and Quiznos needed to know that it could depend on complete and reliable store data every day.

The HQ-ST Link answered two problems here: it was fast enough to make it possible for Quiznos to complete a full polling cycle every night, and it gave Quiznos the ability to see which stores were on-line and which were not at any given time.