Sponsored by Harri
The U.S. restaurant industry is on track for a record-breaking $1 trillion year in 2024, according to the latest State of the Restaurant Industry Report.
But hold the celebrations – because nearly 40 percent of restaurants reported financial deficits the previous year. Restaurant owners still need help navigating how to deliver value to create loyal customers amid inflation while improving profitability.
So how can you balance great service and rising costs while scaling during hard economic times? Look towards private equity firm Savory Fund.
Over the past six years, the strategic restaurateurs have cultivated a portfolio of 11 winning concepts that are undeniably leading the way in their concepts – from Swig to Raising Cane’s. Savory is known for getting into the details with each of their restaurant brands and putting a strong focus on transforming leadership, optimizing balance sheets, and building revenue. Josh Boshard, COO of Savory Fund, has been a key player in the firm’s expansion and focuses on building a strong corporate base that can be used to prove and test technology before passing it along to operators.
“As COO my role is an interesting one,” says Boshard. “I manage our IT team, our HR division, and our operations in our facility management. So I play a diverse role here in setting up the right types of systems to scale and grow our brands.” Typically, Savory Funds acquires brands for its portfolio once these brands have grown to three to five units. “We put in technology, systems, and infrastructure allowing them to scale sales and grow store count.”
In 2017, Boshard met Luke Fryer, CEO of Harri. Harri’s platform uses artificial intelligence to manage various aspects of human capital management, including attracting, managing, engaging, and retaining employees. Boshard describes Luke and the Harri team as “hands-on and engaging”. They listen to understand Harri’s current and potential customers’ wants and needs.
Boshard worked closely with the Harri team to tailor the software to meet Savory Fund’s specific needs. After implementing the platform Savory Fund achieved immediate cost savings of 1 and 2 percent across their restaurant investments.
Harri provides Savory Fund with a quick view of important metrics such as same-store sales growth, year-over-year results, sales activity, cost of goods, labor costs, and turnover rates. The visibility helped staff understand what was happening in stores and improved overall operational efficiency.
Hiring and training new staff is another financial burden, costing approximately $2,000 per new employee and up to $15,000 for a new manager, according to the National Restaurant Association. Harri alleviates this strain with its centralized platform. This efficiency reduces the associated costs and time investment.
“If your employees can onboard, access all of their documents, view and change their schedule, and receive communication from managers all in one place, you’ve won because no other restaurant group has one single system enabling employees to do what they need to do,” Boshard says.
Boshard chose to rely exclusively on Harri for all human capital management needs across Savory Fund’s restaurant portfolio. Today, every restaurant under Savory Fund’s umbrella utilizes Harri’s platform.
“Ultimately, the results from implementing Harri are lower labor costs, easier onboarding, and a better employee experience,” Boshard says, highlighting the significant benefits realized through this partnership.
While Savory Fund focuses on keeping customers coming back for more, Harri ensures happy employees deliver that winning experience. Together, it’s a recipe for success in a competitive and challenging time for the restaurant industry.
Visit Harri’s website to streamline your restaurant operations and reduce costs.
