Ones to Watch | By Sabrina Davis
Pockets
Half of Pockets orders have been generated online
in recent months. “We started taking orders
three years ago through our Web site, and lo and
behold, I saw a gigantic efficiency gain on our
end. We were making fewer mistakes and people were
ordering in advance while we were closed.”
Pockets encourages Web-based ordering by offering
a 10-percent discount on the first online order
and aggressively advertising that deal on menus
and store signage and when customers phone in orders.
Litchman tries to exceed customer service expectations,
especially for electronic orders, to encourage
repeat business. “If they communicated a
problem online, we respond with an e-coupon.”
The effort has paid off, increasing the average
unit volume from 320 to 430 and growing the online
customer count to 30,000.
To further increase efficiency, Litchman converted
to an online point-of-sale system to manage every
order. Litchman communicates with his employees
through corporate e-mail, and employees use it
when they need to fill a shift.
“I have all 10 stores on Web cams. I can see
what’s happening in every store, route phone
calls from store to store during busy times, and
see each order as it’s placed and filled
in real time,” Litchman says. “It’s
a very different way to manage, but it allows me
to have a great quality of life. And I want to
create a similar experience for my franchisees.”
Pockets
CEO: David Litchman
HQ: Chicago
Year started: 1989
Annual sales: $4.2 million
Total units: 10
Franchise units: 0
Why
it bears watching: Pockets
is quickly becoming a dominant takeout
and delivery provider for Chicago’s
busy corporate environment. Only
about 30 percent of customers come
in and sit down in the warmly appointed
1,300-square-foot stores, but that
doesn’t bother Litchman. With
steady business between 11 a.m.
and 10 p.m. and an average bill
of $11, he’s happy to serve
his customers with little face time. “We
have so many repeat customers, we
still get to know them,” he
says. He’s inviting more corporate
business through online catering
orders, which can be recalled and
repeated with ease.
The use of technology to streamline orders
and store operations likely will continue
to improve efficiency and profits, while making
the concept attractive to operators who, like
Litchman, want a life outside of their restaurants.
Litchman is talking with potential franchisees
who will start with one store, but plan to
open more. He wants to grow the concept in
the Greater Chicago area first, then regionally
and beyond. He hopes to open between three
and 10 franchises in the next year and 50
to 100 locations in five to 10 years.
“I don’t hold myself to timetables.
I’m focused on quality not quantity.
I want to continue as an individual company
without investors so I don’t have pressure
to open more locations than I want to. My
only partners are my wife and family.”
