Franchise Update Magazine Issue III, 2015 | Page 24

BY EDDY GOLDBERG TITA N S O F TE C H N O L O GY INTEGRATION AND COLLABORATION Jersey Mike’s departments come together to “own it” A t Jersey Mike’s Subs, technology, marketing, operations, and strategy are so intertwined, “We joke back and forth about who’s in charge of who, because there’s so much overlap,” says Rich Hope, the company’s CMO. “We have a super open-door policy with marketing and IT, and try to get operations involved as well.” “Each department has needs,” says CIO Scott Scherer. “In this day and age most of those needs involve technology.” The company’s POS system, developed by Scherer and his team, is at the core of the inter-departmental collaboration that is a big part of Jersey Mike’s culture—and its rapid growth, as the company approaches the 1,000-unit mark. Scherer describes the brand’s award-winning technology as an integrated software suite with the POS system as the hub (see graphic). “Our POS system provides a base technology package,” he explains. “Then, depending on which department has a technology need, we’ll build it into the program as part of the database.” For example, marketing uses POS data to prove the effectiveness of their efforts; the executive team to look at growth indicators and plan strategy; the customer service team to determine customer opinions and brand image; operations for food and labor efficiency; and development to show candidates how the brand’s technology will help them build their business. “We distribute a KPI report every Monday morning to area directors to compare with the previous week, previous year, the rest of country, and year-to-date numbers so they can see if they’re keeping up, fall- Scott Scherer ing behind, and make changes if necessary,” says Scherer. The executive-level reports are the same as the franchisees get, but consolidated at the group and national levels. In 2004, Scherer was an outside vendor working on the company’s accounting and mail systems. At the time, Jersey Note: Text messaging has been added to the above. 22 Mike’s had about 230 stores—all with standalone cash registers, the legacy of a brand that started in 1956. Sales reports still were being faxed to corporate, less than a dozen years ago. The next year, he was named CIO but still worked as a consultant, with the goal of developing a POS system to deploy in all the stores. The brand started with a system from a small company, but that eventually proved unworkable and they began developing their own code. At first, Scherer says, it was more of an electronic cash register, but working with operations, marketing, and other departments, he and his team continually added features until it became a total technology package that today provides everyone in the company a view of the business—whichever view they need for their department. Franchisees had been complaining about all the different systems used in the stores, but to further encourage them to adopt the new system, corporate provided an incentive: about $8,000 per store for JERSEY MIKE’S WINS CIO AWARD This past June, CIO magazine named Jersey Mike’s one of its 2015 CIO 100 companies. The award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology, said Maryfran Johnson, editor-in-chief. “Our 2015 winners are an outstanding example of the transformative power of IT to drive everything from revenue growth to competitive advantage.” Scherer said Jersey Mike’s won for the creation of a single proprietary, fully integrated technology platform for complex franchise operations. “Even though as a brand we’re nearly 60 years old, we pride ourselves on the advantages of cutting-edge technology to support our franchise owners.” Franchiseupdate I