Flynn Restaurant Group
Tidel Smart Safes help FRG in the restaurant industry
Tidel smart safes optimize cash management throughout the organization, delivering critical benefits to both the franchises and FRG.
Business Objectives
Enhance cash management efficiency and security across Flynn Restaurant Group's (FRG) operations.
Challenges
- Manual cash management was cumbersome, time-consuming, and labor-intensive.
- Managers had to make night drops and fill change orders, detracting from their primary duties.
- Smart safes from different providers caused reliability issues and downtime.
Solutions
- FRG implemented Tidel Smart Safes across its franchises, replacing less reliable systems and standardizing cash management practices to ensure consistency, reliability, and security.
Results
Enhanced Cash Management
Tidel’s smart safes are revolutionizing cash management at FRG by simplifying and streamlining processes, ensuring optimal cash flow across the organization.
Operational Efficiency
These smart safes save time, reduce employee risk, and minimize shrinkage, all while enhancing accuracy, efficiency, customer service, and security.
Competitive Edge
By boosting competitiveness and supporting FRG's double-digit growth rate, Tidel’s smart safes are integral to the franchisee’s plans for future growth, aiding its goal to become the premier restaurant franchise in the U.S.
Background
Flynn Restaurant Group (FRG) is among the country’s top restaurant franchisees. Founded in 1999 by chairman and CEO Greg Flynn, FRG has a business portfolio of $2.5 billion and employs 48,000 workers in 38 states. Known for setting very high standards for its restaurants, FRG’s portfolio features some of the country’s top restaurant brands—Applebee’s, Arby’s, Taco Bell, and Panera Bread.
Flynn's latest acquisition—368 units from Arby’s largest franchisee, U.S. Beef Corp. is helping FRG redefine scale in the industry. With this acquisition, FRG established itself as the first privately held franchise operator to top $2 billion in annual sales—an impressive follow-up from 2012 when FRG became the first U.S. franchisee to reach the $1 billion mark.
Altogether, Flynn operates 1,249 restaurants in the U.S., placing it among the top 20 largest foodservice companies of any kind.
The Challenge
Flynn managed cash manually at its restaurant locations. While this approach worked, it was cumbersome, time-consuming, and labor-intensive. The approach also forced FRG’s managers to make night drops and fill change orders at local banks. That took time away from managers overseeing franchise operations and helping customers enjoy their dining experiences.
A few years ago, Flynn went on an acquisition spree and started buying Taco Bell franchises through its Bell American division. In 2013, the company purchased 76 Taco Bells from Southern Bells, Inc., and then purchased 62 Taco Bells from Gateway Bell LLC. FRG continued acquiring Taco Bells as time passed. Today, FRG has 282 Taco Bell franchises across nine states, making it the second largest Taco Bell franchisee in the country.
Some Taco Bells FRG acquired had smart safes installed from another provider. A few others had Tidel smart safes. The other provider’s safes experienced reliability issues, breaking down frequently and costing FRG time and money.
"Managers at many of the franchises were especially delighted with the Tidel safes, and not just because they eliminated night drops. The safes are easy to learn to use, seldom break down, and simplify operations. So, we’ve had little if any resistance from employees."
Deena Libertosky
Director of Treasury, Flynn Restaurant Group
The Solution
The Tidel safes installed base, on the other hand, proved extremely reliable. The smart safes proved so reliable that FRG renewed their leases when they expired without hesitation.
"We knew the Tidel’s safes were the industry’s Cadillacs. we have been continually impressed with their quality and reliability. The safes have had very few problems since they’ve been installed."
Deena Libertosky
Director of Treasury, Flynn Restaurant Group
The Tidel smart safes optimize cash management throughout the organization, delivering critical benefits to both the franchises and FRG.
Customer Benefits
Lower bank fees
For restaurants that have yet to adopt smart safes, their managers make night drops at the bank branch closest to the restaurant location. This forces Flynn to maintain relationships with 70 different banks, and the fees that go along with that. Having smart safes in their restaurants allows Flynn to consolidate their bank relationships to just one – which drastically reduces their monthly bank fees.
Faster access to cash
Tidel smart safes enable Flynn to receive provisional credit for the money deposited into the safes. This accelerates FRG’s access to its cash, helping it earn more interest on their money, and providing more funds for capital investments. With FRG’s walk-to-bank restaurants, it may take up to 4 days for Flynn to get credit for their cash.
Lower labor costs
Walk-to-bank restaurants require two full-time employees to oversee cash operations. For their restaurants with smart safes, only one full-time employee is required, dramatically reducing labor costs.
Conclusion
Tidel’s smart safes are taking cash management at FRG to the next level. They simplify and streamline cash management and ensure optimal cash flow throughout the organization. They also save franchises time, lessen employee risk, and reduce shrinkage—all while increasing accuracy and efficiency, enhancing customer service, and improving security. The smart safes also boost FRG's competitiveness, helping it maintain its doubledigit growth rate. For a company looking to dominate the hotly contested restaurant industry, the Tidel smart safes are the right recipe for success. They fit in well with the franchisee’s plans for future growth as it strives to become the premier restaurant franchise in the U.S.
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