Franchise Management Inc.
FMI saves $1 million in labor & service by using Tidel Smart Safes
FMI's CFO emphasized the need for a cash management solution to simplify processes and minimize risks.
Business Objectives
FMI aimed to streamline cash management across its 340 locations, enhancing safety, efficiency, and allowing staff to focus on customer service rather than administrative tasks.
Challenges
- Time-consuming manual processes.
- Error-prone and posed security risks.
- Needed a more efficient and secure solution.
Solutions
- FMI implemented Tidel Smart Safes to automate cash management, improving security, efficiency, and reliability of their cash handling processes.
Results
Significant Savings
FMI saved over $1 million annually in labor costs by streamlining operations, significantly improving ROI.
Fewer Bank Relationships
By closing accounts at several banks, FMI reduced the complexity of account management and associated fees, further enhancing their ROI.
More Time for Guests
Freed from manual cash handling and bank runs, employees and managers can focus more on guest service and team coaching, adding greater value to FMI’s operations.
Background
As one of the largest Pizza Hut, KFC, and Taco Bell franchise operators in North America, Franchise Management Inc. (FMI) strives to offer an exceptional guest experience at its 340 locations, through a team of 6,500 employees. This growing enterprise serves more than 1 million customers annually across Canada and the US—generating a lot of cash that was causing major pain points for employees at the stores and support center.
The Challenge
Manual Cash Handling Inefficiencies.
FMI's manual process for cash handling, despite being designed for security, introduced significant inefficiencies and risks. Employees had to count cash multiple times per shift, prepare bank deposits, and make daily bank runs, often requiring cumbersome coordination and extra security measures.
Challenges in Cash Control and Banking Logistics
The manual system led to issues with cash discrepancies and the logistical burden of managing multiple banking relationships across various locations. This not only strained the support center with reconciliation tasks but also impacted cash flow due to delayed deposits.
The Need for a Streamlined Solution
Arlene Dore, FMI’s CFO, emphasized the need for a cash management solution that reduces administrative burdens on staff, allowing them to focus on customer service, while also mitigating the risks associated with cash handling and theft.
"We manage our labor costs tightly and were confident this solution would make a big impact. It was clear from the beginning we would realize a substantial ROI."
Arlene Dore
Chief Financial Officer, FMI
The Solution
Choosing Tidel Smart Safes
FMI recognized Tidel smart safes as an ideal solution for their cash management issues, valuing the detailed explanation and responsive support from the Tidel team.
Strategic Partnerships
The collaboration extended to partners like Deposita for analytics and provisional bank credit, and Garda for secure cash pickups, enhancing the solution's effectiveness.
Phased Rollout
Implementation began in the U.S. in 2021 and expanded to Canada, with plans for more installations in 2023, aligning with store renovations.
Technology Adoption
FMI chose Series 3 and Series 4 smart safes for different volume needs, appreciating the live transaction reporting for enhanced visibility and control.
Employee Engagement
FMI ensured successful adoption by generating excitement about the change, providing comprehensive training, and facilitating peer-to-peer communication about the benefits.
Customer Benefits
Labor Savings
FMI saved over $1 million annually in labor, streamlining operations and improving ROI.
Improved Cash Flow
Provisional credit enhanced cash flow predictability, eliminating the need for daily bank runs.
Efficiency Gains
Automated deposits reduced discrepancies, freeing support staff from reconciliation tasks.
Simplified Banking
Fewer bank relationships reduced fees and simplified account management.
Enhanced Security
Smart safes provided a safer environment for employees, with transparent cash handling procedures.
Focus on Service
Employees redirected time towards guest service and team coaching, enhancing the overall guest experience.
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