Now, the phones can take care of the problem by calling all stores, the area director’s, the manager’s, and all free employees’ cell phones in an effort to locate a replacement. “That in itself is incredible,” White says. “That is revolutionary to me.”

In the past, employees who were late could call the manager to let them know, and then lie on their timesheet about when they arrived. They cannot fool the IP phones, which page managers when employees do not show or forget to clock in. They also text message the manager if the employee forgets to clock out or is approaching overtime. Before IP phones employees could stay on the clock past their regular hours.

The potential savings for White is enormous. “I looked at how much I’ve spent on extra labor, and it is close to $500,000 a year,” he says. The system also keeps track of daily deposits for the chain of stores in real time.

The development of this custom phone system took the work of three separate companies. The Cisco Unified IP Phone 7970G was combined with custom software designed by IPcelerate, while Cisco partner Calence, LLC helped develop the secure private network for the phones, according to a press release.

Cisco’s Ed Jimenez says IP telephony is a hot topic right now. “Customers have implemented VoIP (voice over IP) to save costs mainly,” he says. “IP-based systems avoid phone company lines and save money.” With the addition of custom-made applications tailored to the customer, there are a variety of possibilities for business owners within the VoIP realm.

White is a pioneer of sorts in implementing this technology into his quick-service business model. “Les decided he wanted to improve productivity,” Jimenez says. “This is really the first time we’ve had quick-service customers look at his business processes and transform them. We believe it’s going to be a big trend.”

The Cisco Intelligent Retail Network makes White’s new tools, and those that have yet to be developed, possible. The network infrastructure White has installed is capable of transmitting digital video surveillance footage, which can be accessed on a variety of devices, or displaying digital signage on large TV screens that function as menus.

White can also implement touch-screen kiosks in his stores that are connected to his network. Customers can order at the kiosk (even in Spanish), as opposed to the deli counter, and then pick up their sandwich at the register without interacting with an employee. He says he has plans to implement the kiosk and video surveillance features in the future.

In terms of cost, White says with research and development included he spent $13,000 for the IP phone system per store. For each additional store he equips with an IP phone, it will be another $3,000. In the future, White envisions network kiosks in a variety of locations so customers can order Subway sandwiches at their convenience.

An IP phone equipped with a custom software package can really change how a company does business, IPcelerate President and CEO Kevin Brown says. “We are already doing this in schools, courtrooms, energy companies around the country,” he says. “People are starting to recognize that if I take my phone and put it on the network, it becomes more powerful. So, often people ask me ‘I can do this on my PC, why should I do it on a phone?’ I ask, ‘Why aren’t you?’ Getting people to look at a business phone differently is having major ramifications,” he says.