Page 10 – DTiQ

A complete guide to specialty retail stores for owners and operators

DTIQ on October 27, 2023

Executives of department stores are scratching their heads about how to compete with the rise of specialty retail stores. Focusing on personalized shopping experiences and specific product categories, these retailers are giving shoppers a reason to choose them over big-box alternatives.

In this guide, DTiQ discusses the specialty retail market and what business owners need to know about today’s industry.

Understanding the Specialty Retail Market

First, what is specialty retail, and does your business fall under this umbrella? These stores and e-commerce brands have a very specific focus, catering to niche markets. They typically carry a limited inventory featuring carefully curated collections of high-quality items.

Sustainably sourced, handcrafted, and locally made products are often the stars of the show, but specialty retail, in general, is a consumer destination for unique, long-lasting, attractive items. Sporting goods stores, bookstores, florists, furniture stores, and office supply stores are all considered specialty retail stores. Examples include:

Home Depot
Best Buy
Barnes & Noble
Ulta Beauty, Inc.
At Home
Williams-Sonoma

The American specialty retail industry has sustained steady growth, projected to soar to USD 442725.74 billion by 2031. This is largely because of the way COVID-19 shifted consumer spending habits and preferences. However, the desire for individualized shopping experiences and a need for certain products and services has also contributed to the industry’s increasing value.

Some of the major trends and consumer preferences that specialty retailers can expect to implement into their planning include:

Increasing availability of credit options
The increasing rate of urbanization and its effects on the industry
Higher frequency of ecommerce purchases compared to brick-and-mortar
Heightened competition with international brands, especially China and India
Prioritizing investments in specialty retail technology, research, and development
Demand in certain sectors, such as home improvement, motorcycles, and bicycles

Sourcing Products and Inventory Management

No matter the retail specialty, businesses need reliable supply chain partners to keep their inventories stocked and profits growing. This is vital for keeping up with department retail stores, which have established relationships with suppliers and vendors. Plus, gaps in inventory availability can affect how the consumer perceives the specialty retailer, potentially influencing them to shop elsewhere.

Aside from ensuring dependability with suppliers and vendors, product quality and variety are just as important. Goods and services should always be consistent in appearance, packaging, quality, and other features. Inconsistent quality can position the specialty retailer in the wrong light, and consumers who assume cheap quality are likely to stop giving that store business.

Luckily, specialty retailers don’t have to fight this battle alone. By implementing efficient inventory management systems and other loss prevention solutions, businesses can put safeguards in place to protect their bottom lines.

Inventory Challenges

The COVID-19 pandemic sent shockwaves through the specialty retail sector, exacerbating inventory challenges. Supply chain disruptions became more frequent and severe, with global lockdowns and restrictions disrupting production and transportation.

Sourcing products effectively to maintain product inventory and quality is more important than ever.

Staffing and Training

Just as inventory must always be reliable, the same can be said for specialty retail staff. During the hiring process, stores need to define staffing requirements based on their niche market and offerings. Recruiting and hiring knowledgeable, passionate employees is the gateway to offering the personalized shopping experience consumers desire.

Even if they hire an expert, specialty retailers should provide thorough training for each employee to ensure exceptional, seamless customer service. These training sessions should cover areas such as:

Product and Service Knowledge

High-quality specialty goods and services must be matched with extremely knowledgeable staff members, who know offerings inside and out. Training should cover every detail and selling point for each product in stock or service offered. Companies can always offer in-depth training, but it also helps to hire individuals with prior retail experience, strong attention to detail, and excellent communication skills.

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Generating a Pleasant Atmosphere

From welcoming and greeting customers to keeping the space clean, providing a pleasant atmosphere in a specialty retail space is one of the best ways to encourage repeat business. From an interior design perspective, the physical storefront should feel more intimate and cozy than a big-box store with aisles of items and with a select few employees. When it comes to interacting with customers, product expertise, friendliness, respect, and honesty should always be top of mind.

How to Personalize Customer Service

It can be as simple as remembering a repeat customer’s name, products they like, and what they’ve purchased in the past. Specialty retailers can also utilize marketing technology to create memberships, and reward programs, to encourage repeat customers. This data can also be used to analyze consumer behavior to find strengths and weaknesses in customer service. Whatever the approach, personalizing the customer experience begins with each employee and the interactions they have with every consumer.

Pricing Strategies and Profitability

In specialty retail, the market will always be unpredictable, even if trends look promising for the near future. The COVID-19 pandemic is a great example –– when in-person shopping was discouraged, ecommerce statistics skyrocketed in the United States and around the world. However, the pandemic recovery period is indicating an uptick in brick-and-mortar shopping, so the COVID-19 boom could prove to be a once-in-a-lifetime opportunity.

Of course, a global pandemic doesn’t happen every day, so businesses must also consider factors like the state of the economy, seasonal slow periods, and wholesale cost increases. The key to weathering any market trend is setting competitive pricing while maintaining profitability. By understanding pricing models and strategies, specialty retail stores can manage discounts, promotions, and sales effectively.

Customer Experience and Relationship Management

Personalizing the customer experience is a process that never truly ends. Specialty retailers must always be enhancing the in-store experience for customers. If online purchases can also be made, businesses need to ensure a coordinated front across all customer touchpoints.

By continuing to improve the way consumers interact with the brand, specialty retailers can make headway in developing meaningful relationships with every customer. Some common best practices for customer relationship management and experience enhancement include:

Implementing a loyalty program
Making interior design and display upgrades
Offering workshops, lessons, showcases, and special events
Collecting customer feedback and leveraging it to improve operations
Providing ongoing training for employees, as customers depend on them for their product and service knowledge
Implementing beacon technology such as interactive displays, personalized offers, self-checkout systems, mobile payment options, and augmented reality experiences

Optimizing Your Systems and Operations

First and foremost, ensure your business protects the precious data of your operation and customers. Implement secure, effective point-of-sale (POS) systems, which automate many tasks and free up staff to dedicate time elsewhere. Other ways to optimize your business could include:

Update your cameras and surveillance systems
Use smarter software to schedule efficiently
Regularly review operational processes to see what works and what doesn’t

Handling Change and Future Planning

Specialty retail is always subject to impacts from changing market conditions, varying consumer needs, and other trends. By staying up to date with evolving consumer preferences, businesses can incorporate new products and adjust their niche (if necessary). Furthermore, specialty stores should also embrace technology and innovation to stay competitive, now and in the future.

When focusing on long-term growth and expansion opportunities, such as multiple store locations, develop a growth strategy and a timeline. The goal is to scale your operations to the desired size while maintaining consistent quality and customer experience.

How to Stay Ahead of Industry Trends

In the fast-paced world of specialty retail, staying ahead of industry trends and technology is paramount for sustainable success. With changing consumer preferences, emerging technologies, and evolving market dynamics, specialty retailers must be proactive and agile in their strategies.

Stay updated on emerging trends by conducting ongoing market research.
Monitor competitor strategies and customer preferences to identify shifts in the market.

Data Analytics

Utilize data analytics to gain insights into customer behavior, preferences, and purchasing patterns.
Leverage data-driven decision-making for inventory management and marketing strategies.

Training and Development

Invest in ongoing training for your staff to keep them updated on industry trends and technology.
Encourage a culture of innovation and adaptability within your organization.

Learn More About DTiQ’s Solutions

All in all, a sound specialty retail strategy focuses on loss prevention. Marketing plans should also consider the perceived disadvantages of specialty stores, from a smaller product variety to less convenience for consumers used to department stores. Specialty retail stores, whether brick-and-mortar or online, can gain trusted assistance when opting for custom solutions from DTiQ.

With experience implementing over 45,000 retail business intelligence platforms, DTiQ’s main goal is to help retailers transition to a smarter, more efficient operation. These solutions give specialty retail operators the ability to monitor their business from anywhere, thanks to an integrated mobile app. All clients are backed up by 24/7 customer support from DTiQ.

Capabilities of a customized DTiQ solution include features such as:

Easy access to data analytics with:
~Conversion rates
~Customer demographics and data
~Detailed transaction information
~Dwell times
~Employee engagement statistics
~Guest experience and satisfaction feedback
~Location performance data and areas for improvement
~Loss prevention
~Pathing
Intelligent video systems that:
~Detect suspicious activity
~Prevent theft
Ability to identify staff training needs

Specialty Retail Guide Conclusion

Throughout this comprehensive guide, we’ve delved into the intricacies of specialty retail, from understanding your niche market to optimizing operations and leveraging technology. As owners and operators, you now possess a holistic understanding of what it takes to thrive in this industry.

At DTiQ, we specialize in empowering specialty retail operations with cutting-edge performance solutions. To see how we can help your business thrive, book a demo with us today and explore the possibilities of taking your specialty retail venture to new heights.

Time theft: seven tips to manage this key area of loss

DTIQ on October 27, 2023

There’s a lot of theft going on right now — in fact, theft numbers are 104.3% higher in 2023 than they were in 2019. So, trying to keep an eye on the areas of theft you can control, like time theft, is more important than ever.

However, time theft can be a complicated metric to track, let alone manage. Traditional theft, like stealing products, is black and white. Either an item was stolen, or it wasn’t. But how do you track time theft, something that’s much less obvious?

This article will equip you to handle time theft with ease. We’ll review what it is, what it looks like, and solutions to implement at your business that help you manage time theft.

What is Time Theft?

Time theft can sound confusing, but it’s literally the theft of paid time. This means that your staff, while being paid to do certain tasks, are either not doing the tasks they’re paid to do or doing tasks completely outside of their role.

If you want to think about the definition super simply, it’s your staff taking money from you for work they aren’t actually doing.

We’ll go over examples of this type of time theft in detail in a little bit.

Time theft can also include the literal theft of paid time. That means clocking staff members in before they arrive or clocking out later than they actually leave to earn from free paid time.

You also must consider instances where staff help each other get that bump to their paycheck for hours they never worked. Called “buddy punching”, this is when somebody gets their “buddy” to punch them in for a shift they aren’t working. It means they get free hours added to their check by stealing from your labor hours.

How Expensive is Time Theft?

An important thing to remember with time theft is that sometimes “time theft” happens without malicious intent. Sometimes things happen — there’s a car accident on the highway and one of your staff members is a few minutes late for a shift. Or there’s a sick child at home that has your manager check their phone a few extra times throughout their shift. A team member happens to end up serving an old friend and results in a longer-than-normal customer conversation.

The examples are endless, but the message is the same. Life happens, and you can’t expect your team to be working optimally at every second of every shift.

Time theft is expensive when it becomes the norm, not the exception, to a staff member’s behavior.

But how expensive?

The Cost of Time Theft

Let’s look at the average hourly wage in the United States. It currently sits at around $33.82/hour, or $1,163.41/week.

Now imagine you have a staff member named Marge. Marge has been on your team for the last three years, and does a good job when she’s focused.

But she’s almost five minutes late every single day.

Now five minutes may not seem like a huge deal, but let’s break down the math.

Say Marge works five shifts a week. If you use the $33.82/hour to do some math, that five minutes comes out to roughly $2.80. Seems like nothing, right?

But look at that throughout the five shifts a week. You’re suddenly up to $14.00 a week, which adds up to $56.00 a month, which adds up to over $670 a year.

And then consider time spent on your phone during shifts, smoke breaks, and chatting with staff. Even if that’s just 15 minutes of Marge’s day, there’s another $8.40 a day. And with some quick math, we’re looking at $2,016 a year.

Add tjhat to the late minutes, and that’s $2,686 a year spend on labor where nothing gets done.

And that’s just one employee and a relatively small instance that adds up day by day. Imagine 20 employees a year taking those “five minutes here and there”. You’re looking at $57,360 for 20 staff to be on the clock and getting nothing done.

Now add in different types of time theft or more intentional time theft and you’re going to be sinking a lot of money into labor costs that aren’t getting you anywhere.

What Does Time Theft Look Like?

Time theft can look different at every organization, but the general themes are the same. Your staff are on the clock, getting paid, but they aren’t doing the job you need them for.

Time theft can look like:

Taking extended lunch breaks, beyond the paid allotment, and not properly clocking out
Working on projects slower to earn overpay time that wasn’t necessary
Taking naps at work
Spending extended periods of time on your phone or device
Socializing excessively with guests or friends to the point that it impacts your ability to get work done
Buddy punching
Opening and closing early or late, but still getting the paid labor hours

How Do You Minimize Time Theft? Seven Tips to Help

Since time theft can look so different, it can be hard to know exactly how to completely get rid of it. But at a minimum, there are some surefire techniques that help to minimize time theft.

Here are seven tips to minimize time theft at your businesses.

1. Set Clear Expectations

Your staff need to know what is expected of them at work — it’s not fair to assume they know.

Take the time to clearly define roles and responsibilities for each of your staff. This ranges from what they are expected to do while on the clock, to rules around breaks and clock outs. When your team understands what is expected of them, it’s easier for them to achieve it.

2. Establish Repercussions

Time theft can seem harmless to staff, so make sure that your team fully understands the repercussions for the business and for them individually.

For example, your team should know from the jump that participating in buddy punching results in being immediately let go. Losing your job can be a huge deterrent from bad behavior, like time theft.

3. Leverage Video Surveillance

Your video surveillance system can be a great way to keep an eye on time theft, even if you aren’t physically in store with eyes on the place.

Video surveillance allows you to keep an eye on how operations are going, and if your staff are working efficiently. You can see this through:

Opening and closing alerts
Labor reports via your video surveillance
Review speed of service to ensure that your team is working efficiently, and therefore moving customers through the line efficiently as well

Having video surveillance in place also unlocks a new world of training opportunities! If you see that your team is struggling with closing, and it’s resulting in a ton of paid out overtime, you may want to revisit how you’re training your team for those responsibilities. Another example is if your team commits small offences, like extended breaks, and you can review the footage with them and chat about where to do better.

Pro tip: Leverage your video surveillance to keep an eye on phone usage. DTiQ’s SmartAudit™ gives you customized insights into phone use. Get stats on phone use within your staff emailed right to your inbox on a weekly or monthly basis, and use those findings to customize your goals.

4. Reward Productivity

It becomes easier to reward productivity once you have your video surveillance in place because you’re able to spot more moments of your staff getting it right.

As you review video footage, chances are there will be a lot of moments you catch your team doing well. This can be putting a phone in their locker, being diligent on their clock in/clock out time for breaks, or even reminding another teammate to come back from break so they aren’t late.

Take those opportunities to reward their productivity! It shows your team you appreciate what they’re doing, encouraging them to continue it, and can serve as an easy way to inspire the rest of your team to aim for the same thing.

Little rewards, like a small gift card, can go a long way in boosting morale.

5. Lead by Example

Trusting your management and higher leaders to lead by example is key when it comes to managing and minimizing time theft. After all, why should your team be off their phones and working if the management they look up to is on their devices constantly?

Leading by example also bleeds into areas like punctuality. Late managers inspire a late team!

6. Limit Device Use

The reality is people are glued to their devices (guilty!). Getting staff to completely give up their devices for eight hours can be near impossible, so set a realistic goal. This can look like deciding on certain areas in the business that phones can be used (out of customer eyesight!), and time limits. You can also encourage your staff to save phones for breaks.

7. Clear Breaks

Make sure breaks are communicated clearly and consistently on each day. Time theft can often be a result of poor communication, especially around breaks. If your team comes in and isn’t sure when they are meant to take a break, it can result in taking them on their own time and not for the proper amount of time.

Encourage your team to take breaks as scheduled and minimize the chance of them going rogue and planning their own break times.

Manage Time Theft with Ease

Time theft sounds daunting, but it doesn’t have to be. Armed with these techniques, you can minimize the cost while keeping your team happy and working hard.

Want to level up efforts when it comes to minimizing time theft? DTiQ can help. You can book a demo or get in touch today to see how we can measure and improve this key business metric — and ensure you’re only paying for hours worked.

A complete guide to exception-based reporting

DTIQ on October 19, 2023

Exception-based reporting (EBR) is useful for retail and quick service restaurant (QSR) businesses. Effective EBR tools can support loss prevention teams and improve profit margins.

In an industry where loss prevention can significantly affect your bottom line and reduce losses, EBR is critical. A study from the National Retail Federation found that inventory shrinkage alone cost the retail industry over $61 billion annually. Learn about the value of exception-based reporting below.

What is Exception-Based Reporting?

Nearly every restaurant and retail store have a digital (POS) point-of-sale system for accepting customer payments. POS software is a rich source of business data that can identify when a POS transaction took place, which employee helped complete a transaction, and the type of payment method used.

Exception-based reporting is a process of data analysis that reviews a set of data, including a series of transactions, and identifies outliers. These outliers can be positive – perhaps one sales associate is outperforming their peers, or they can be negative, indicating that a staff member is using a POS system incorrectly or even stealing from the company.

Exception-Base Reporting Case Study

One case study of a QSR restaurant that wanted to improve its security and reduce its sales costs. By adapting DTiQs software and real-time exception-based reporting, they improve their shrinkage, improve security systems, and reduce sales costs.

The use of remote surveillance cameras to monitor the store and exception-based reporting allowed the QSR Restaurant to identify employee productivity. To the point that after DTiQ’s system was installed, this particular they were able to improve its shrinkage by fifty percent.

Benefits of EBR Systems

Even the most careful businesses can experience some level of shrinkage and internal theft. Exception-based reporting is a critical component of asset protection and a good loss prevention strategy. Businesses can use EBR for a variety of purposes:

Identify training gaps: After reviewing transaction data, retailers may find a discrepancy is simply the result of staff error. For example, an employee might be categorizing an item incorrectly or applying a discount to an item that doesn’t qualify. With good reporting, managers can find where staff are making mistakes and re-train them to prevent future errors.
Catch internal theft: Employee theft can be a major issue at both restaurants and shops. Staff members may abuse loyalty programs, steal from shared tips, or void transactions and pocket the difference. POS exception reporting can catch unusual activity – such as a high number of voided transactions during a specific employee’s shift.
Improve your bottom line: Without an exception-based reporting tool, you would need to review transaction data by hand to identify mistakes and fraud. This would be a significant labor cost – and you might still miss the warning signs of internal theft. With EBR, you have access to data analytics that helps improve your profit margins.
Enhance customer experience: Exception-based reporting loss prevention software is even more powerful when combined with intelligent video surveillance. You can monitor how employees are interacting with customers, measure engagement, track customer paths, and find areas for improvement

Take Advantage of DTiQ’s Powerful Analytics

Of course, exception-based reporting isn’t without its challenges. With so much data to sift through, many managers don’t have time to review daily reports from POS systems. This is where advanced analytics and reporting for POS data come into play.

By integrating an intelligence platform with your POS system, like DTiQ’s SmartAudit you can corroborate POS line items with employee behavior to reduce shrinkage and identify training needs. DTiQ’s exception reporting software will alert you to suspicious transactions and allows you to verify transactions through high-quality audio and video surveillance.

Learn More about DTiQ’s Solutions

DTiQ has helped plenty of other national and international establishments with our integrated video, auditing, and analytics tools. Our case studies show us how our solutions have helped establishments like Domino’s Pizza, Subway, 7-Eleven, and more.

For pricing information and more details on our customized solutions, book a demo with DTiQ today.

A complete guide on fuel station security for owners and operators

DTIQ on October 10, 2023

In the fast-paced world of convenience, gas stations have become essential waypoints in our daily routines. Whether it’s refueling our vehicles, grabbing a quick snack, or simply taking a short break, gas stations serve as more than just pit stops. They are hubs of convenience, catering to the ever-moving modern lifestyle.

However, amid the hustle and bustle, gas stations also face unique challenges, particularly in the realm of security. Owners and operators know all too well the importance of safeguarding their premises, customers, and assets.

Navigating Gas Station Security Challenges

Optimizing gas station security can be challenging due to your extended operating hours and the fact that you often have a lot of cash on site. Both of these factors make gas stations appealing targets to criminals. The biggest threats you’ll encounter include theft, vandalism, and customer safety.

Whether criminals target your business or your customers, it can greatly impact your bottom line and reputation.

Even a single violent incident can ruin the reputation you’ve worked so hard to build. If customers begin viewing your C-store as unsafe, they may decide to take their business elsewhere, meaning you’ll suffer from long-term profit decreases.

Unfortunately, violent crimes occur at gas stations far more frequently than you might expect, especially in large cities where gas stations are open 24/7.

Violent crimes aren’t the only thing you must be concerned about. Retail theft can also hurt your margins and make it tough to scale your business. Investing in gas station security technologies is a necessity if you want to protect your customers, your reputation, and your bottom line.

Essential Gas Station Security Components

Gas station security systems can help deter theft and violent crimes. In the event of an incident, gas station security camera footage can provide law enforcement with the evidence they need to put the criminals behind bars.

That said, it’s important that you choose the right security measures for your business. While it’s not practical to hire private security, you can implement gas station security systems that make your business much safer. When it comes to security, there are plenty of different solutions at your disposal.

1. Surveillance Systems

Gas station surveillance systems keep you in the loop about what’s happening in your business. Some common gas station surveillance equipment includes:

Motion sensors
Door and window sensors
Cameras
Alarm systems
A video recording system

While all aspects of surveillance systems are important, cameras are perhaps the most valuable component. That said, you must choose the ideal location for your cameras to maximize visibility. Ideally, you need cameras throughout the inside of your store, at the gas pumps, and around the parking lot.

2. Access Control Protocols

Access control measures prevent unauthorized persons from entering your restricted areas, such as behind the counter or in your stockroom. There are many different access control solutions, including electronic locks and keycard systems.

In addition to investing in access control, teach your team good safety habits. For instance, your staff should ensure that any critical access points are secure every time they enter or exit an area.

3. Alarm Systems and Monitoring

Gas station security systems are great tools for monitoring your business, both during and after operating hours. There are two main types of alarms that you should consider:

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Intrusion Alarms

Intrusion alarms feature a series of sensors, such as door and window sensors and motion detectors. When your alarm is active, these sensors will alert you of a possible intrusion. While it’s important to monitor your alarm yourself, you should also consider mobile security monitoring software.

Fire and Gas Leak Alarms

Fire and gas leak detection systems can provide an early warning if something goes wrong with your gas pumps, cooking equipment, or electrical systems. Many intrusion alarm providers also offer fire and gas leak detection services. Partnering with an all-in-one provider is more cost-effective than using separate vendors.

An early warning system can significantly reduce the risk of a catastrophic accident and protect your business from damage. In the event of a leak or fire, your monitoring services provider will alert the authorities so they can address the issue.

4. Lighting and Visibility

Darkness is a criminal’s best friend. When your convenience store, parking lot, and forecourt are poorly lit, it is more likely to mark your establishment as a target.

Upgrading the lighting in, around, and outside your gas station can deter criminal activity. Additionally, if police officers or security guards have to respond to your business, they’ll be able to see what’s going on easily.

Lastly, from a customer experience perspective, good lighting makes your store seem more inviting and secure.

5. Security Cameras and Surveillance Systems

Gas station security cameras are by far the best deterrent at your disposal. That said, not all gas station security cameras are created equal.

Generic, off-the-shelf cameras require self-monitoring and offer minimal features. By contrast, DTiQ’s smart surveillance systems are equipped with dynamic features like facial and license plate recognition, AI, and more.

As a DTiQ client, you’ll also enjoy access to our user-friendly mobile app, which provides remote viewing capabilities, sends push notifications, and keeps you in the loop about what’s happening at your business.

DTiQ client Mickey Mart has used our camera systems for over two years. Since partnering with us, Mickey Mart has enjoyed decreased theft and increased customer satisfaction.

The company also uses DTiQ to ensure that its employees comply with company policy, demonstrating the versatility and value of an advanced camera solution like DTiQ.

Gas Station Employee Training and Safety

Investing in the right systems will go a long way toward improving gas station security. If you want to make your store as safe as possible, however, you need your team to be on board too.

Staff Training

The best way to get your staff up to speed on safety and crime prevention is through structured training. Make it a point to educate your employees on suspicious behavior, ensure that they know how to use your security systems, and have a plan in place for when crimes do occur.

Turning your staff into a security-conscious workforce will drastically reduce the chances that your business will be the site of a violent crime. Attentive, well-trained staff will also help you reduce instances of theft and protect your bottom line.

Emergency Response and Communication

Every gas station needs an emergency response plan and communication strategy. Without them, you are putting your customers and employees at risk.

Emergency Response Plans

Create an emergency response plan for each type of significant criminal event. Your plan should lay out a broad strategy described by an “if, then” series of conditions. For instance, it should outline the steps your team should follow if a robbery takes place.

Generally speaking, an emergency response plan should cover the following:

What your team members should and shouldn’t do
In what order they should complete various tasks
How to handle any customers that are in the store
Who they should contact, and when

If your plan accounts for all of these points, it should help your staff safely navigate any threatening incidents that occur.

Communication Systems

Your team also needs access to reliable communication tools in the event of an emergency. A few options worth considering include two-way radios, alarms with panic buttons, and backup power solutions. If your phone lines go down and your staff can’t get to their phones, they should have at least two alternative ways to get help.

When installing panic systems, place buttons at a few strategic locations throughout your store, such as in the freezer, in the stock room, and next to each cash register.

Future Trends in Gas Station Security and Operations

The world of gas station security is evolving. This evolution has led to the development of several exciting trends, including the following:

AI-Driven Surveillance: AI surveillance tools use artificial intelligence to automatically identify suspicious behavior, track license plates, and gather data
Autonomous Security Systems: These systems do everything from monitoring human behavior to contacting law enforcement with little to no manual intervention

As a gas station owner, it’s critical that you stay apprised of the latest developments in business security. Maintaining a modern system will make your business and its customers less susceptible to criminal activity.

Gas Station Security With DTiQ

Gas station security is one consideration you can’t afford to ignore. The good news is you don’t have to face this daunting prospect alone. Partner with DTiQ, a leading gas station security solutions provider, and let us help you protect your business.

Book a demo today to learn more about our cameras, monitoring technologies, and general expertise.

A complete guide on gas station security for owners and operators

DTIQ on October 10, 2023

Navigating Gas Station Security Challenges

Whether criminals target your business or your customers, it can greatly impact your bottom line and reputation.

Unfortunately, violent crimes occur at gas stations far more frequently than you might expect, especially in large cities where gas stations are open 24/7.

Essential Gas Station Security Components

1. Surveillance Systems

Gas station surveillance systems keep you in the loop about what’s happening in your business. Some common gas station surveillance equipment includes:

Motion sensors
Door and window sensors
Cameras
Alarm systems
A video recording system

2. Access Control Protocols

3. Alarm Systems and Monitoring

Gas station security systems are great tools for monitoring your business, both during and after operating hours. There are two main types of alarms that you should consider:

Intrusion Alarms

Fire and Gas Leak Alarms

4. Lightning and Visibility

Darkness is a criminal’s best friend. When your convenience store, parking lot, and forecourt are poorly lit, it is more likely to mark your establishment as a target.

Lastly, from a customer experience perspective, good lighting makes your store seem more inviting and secure.

5. Security Cameras and Surveillance Systems

Gas station security cameras are by far the best deterrent at your disposal. That said, not all gas station security cameras are created equal.

DTiQ client Mickey Mart has used our camera systems for over two years. Since partnering with us, Mickey Mart has enjoyed decreased theft and increased customer satisfaction.

The company also uses DTiQ to ensure that its employees comply with company policy, demonstrating the versatility and value of an advanced camera solution like DTiQ.

Gas Station Employee Training and Safety

Investing in the right systems will go a long way toward improving gas station security. If you want to make your store as safe as possible, however, you need your team to be on board too.

Staff Training

Emergency Response and Communication

Every gas station needs an emergency response plan and communication strategy. Without them, you are putting your customers and employees at risk.

Emergency Response Plans

Generally speaking, an emergency response plan should cover the following:

What your team members should and shouldn’t do
In what order they should complete various tasks
How to handle any customers that are in the store
Who they should contact, and when

If your plan accounts for all of these points, it should help your staff safely navigate any threatening incidents that occur.

Communication Systems

When installing panic systems, place buttons at a few strategic locations throughout your store, such as in the freezer, in the stock room, and next to each cash register.

Future Trends in Gas Station Security and Operations

The world of gas station security is evolving. This evolution has led to the development of several exciting trends, including the following:

AI-Driven Surveillance: AI surveillance tools use artificial intelligence to automatically identify suspicious behavior, track license plates, and gather data

Autonomous Security Systems: These systems do everything from monitoring human behavior to contacting law enforcement with little to no manual intervention

Gas Station Security With DTiQ

Book a demo today to learn more about our cameras, monitoring technologies, and general expertise.

Food delivery fraud: delivery apps vs. restaurants

DTIQ on September 14, 2023

Food delivery businesses like Uber Eats, DoorDash, and GrubHub experienced a major boom throughout the last few years. DoorDash had one of the largest stock market IPOs of 2020, and global installs of third-party food delivery apps grew by 25 percent that same year — but this boom means that food delivery fraud has also boomed.

With over 60 percent of young adults eating takeout and using food delivery apps regularly, delivery is not only a lucrative stream for businesses but also a necessity for restaurants to stay competitive.

Restaurant owners must remain aware of the potential impact of rising food delivery fraud. Here’s everything you need to know to stay on top of this at your business.

What Is Food Delivery Fraud?

Food delivery fraud occurs when a scammer targets a restaurant to engage them in a delivery or takeout sale with the intention of avoiding payment. While their behavior may save them a few bucks in the short term, many are simply seeking free food.

Why Is Food Delivery Fraud on the Rise?

Fraud with food delivery is rising because of the popularity of food delivery applications. Whenever one type of business experiences exponential increases, scammers will try to find a way to exploit it.

Yep, even if it’s just for a free meal.

Additionally, some restaurants aim to make their checkout processes speedier. To accomplish this, they drop security and fraud prevention features like two-factor authentication that would quickly detect and shut down fraudulent activity.

Less friction during checkout might mean more paying customers, but it increases opportunities for bad actors, especially those engaging in card testing fraud.

There are also other external factors that can impact this. Inflation has led to a higher cost of living and increased prices on necessities such as groceries, fuel, and utilities. These tough economic times can lead to people looking for other ways to offset costs, which is a big threat to the food delivery industry.

What Are the Types of Food Delivery Fraud?

Not all food delivery fraud is the same. Sometimes the behavior is malicious. Other times, it may be “friendly fraud” or the result of an honest mistake. Either way, restaurant owners must understand all the types of fraud they may encounter and the many ways they can lose money when customers use delivery apps or online ordering.

Credit Card Fraud

Restaurants have seen incidents of credit card fraud grow significantly in the last few years. In some cases, scammers outright steal someone else’s credit card information and use it to place a food order on a delivery app. A successful transaction could lead to a second type of fraud — card testing.

The food delivery industry can be an easy target for card testing. That’s because scammers are looking for a small price tag to test a customer’s card to see if money is available. Fraudsters take an authorized transaction as an indication that the credit card number is valid and the card can be used elsewhere.

In instances of credit card fraud, restaurants often lose money when the cardholder disputes the charges with their card issuer or bank. The financial institution may issue a refund because it was a card-not-present (CNP) transaction, and as such, the cardholder isn’t responsible for paying the cost.

Account Takeover Fraud

Account takeover fraud happens when a scammer gains access to a customer’s login credentials. That scammer then perpetrates fraud with food delivery by using that account to make unauthorized food orders. This is typically done in one of two ways.

First, bad actors might send a phishing email or contact someone via social media, impersonating a third-party delivery app. They often make the customer believe that their account has been compromised and that they need to verify their login details for recovery purposes.

The communication looks real and therefore doesn’t raise many red flags, so customers voluntarily share their account information.

In other instances, the scammer hacks into an account and uses the customer’s debit or credit card to order food. The customer may receive notifications about an order they never placed. Unfortunately, the fraudster often also gains access to other sensitive information, such as the person’s address and phone number.

Friendly Fraud

Not all fraud is carried out by bad actors. While some might take issue with identifying fraud as a positive thing, “friendly fraud” (also referred to as chargeback fraud) is also common. It happens when someone places an order for food delivery with their account and then initiates a chargeback (fraud claim) with their credit card company or bank.

In some cases, the claim is legitimate for a few reasons. This includes poor service, getting the wrong order, or receiving a subpar meal. Other times, they simply don’t want to pay for their food. Either way, friendly fraud hurts your bottom line and jeopardizes your ability to use third-party apps.

Third-Party Chargebacks

Restaurant owners who engage in third-party delivery need to know the difference between a customer initiating a chargeback with their credit card company and asking for a refund from their third-party delivery app. The latter can result in you paying out more than just the cost of the meal.

Requesting fraudulent refunds from a third-party delivery app is one of the biggest type of fraud. All the user has to do is complain about their order, say an item is missing, or even lie and say they never got the order. The delivery app will often just issue a refund without a detailed investigation. This often leaves the restaurant helpless and results in losing revenue.

Cash-on-Delivery Fraud

Typically, third-party food delivery services require delivery payment as soon as the customer places the order.

However, in an effort to limit fraud and chargebacks, popular food delivery apps have begun experimenting with cash-on-delivery orders that require delivery drivers to collect payment in cash at the customer’s door. Unfortunately, this model isn’t without issues.

Cash-on-delivery fraud can also occur in two ways.

First, fraudulent drivers looking for a free meal and a little cash may eat the customer’s meal or swap it with something else and still take the customer’s money. This typically only works the first time it’s attempted. The fraudulent driver will likely be booted from the delivery app after a customer reports them.

The other type of cash-on-delivery scam involves customers who take the food but don’t give the delivery driver the correct amount of cash in exchange or hand off counterfeit money. Unfortunately, the driver may not realize what has happened until it’s too late. This results in the customer getting away with the scam.

How Can Restaurants Prevent Food Delivery Fraud?

Preventing restaurant fraud is no easy task. Scammers are both intelligent and highly adaptable. It begs the question: what must delivery companies do to stop them?

The answer can be tricky. On the one hand, you know that even friendly fraud can negatively impact your business. At the same time, you don’t want to implement too many security measures and frustrate your loyal customers.

Read on to find out what measures you can take to ensure that your restaurant doesn’t fall prey to common scams while maintaining a good relationship with your customer base.

Partner with Reputable Delivery Platforms

Work with well-established and reputable third-party food delivery apps that have robust security measures in place. Research and choose platforms that prioritize security and have a track record of actively combating fraud.

Implement Order Verification Processes

Establish internal procedures to verify the authenticity of orders received through the third-party app. This can include cross-referencing the order details with the information provided by the app and contacting customers directly to confirm their orders.

Monitor Transaction Activity

Regularly review and monitor transaction activity on the third-party delivery platform. Look for any irregularities. This includes sudden increase in orders from a specific customer or a high number of chargebacks associated with orders through the app.

Implement Fraud Detection Tools

Utilize fraud detection tools and services that can analyze transaction data and identify potential fraud. These tools can help detect patterns, anomalies, and other indicators of fraudulent activity. Use video to pair the transaction with the order and show the third-party delivery service that they have proof they provided the meal that was requested.

Strengthen customer authentication

Encourage the use of secure authentication methods on the delivery app. This can include two-factor authentication. This is where customers need to provide a verification code or use two-factor authentication before placing an order. This should especially be done with orders that have a high value.

How Is Delivery Fraud Reported?

Third-party app drivers must report fraudsters who don’t pay for their cash on delivery orders directly to the company that owns the app. If you’re a business owner who hires delivery drivers directly, you’ll have them report it straight to you. You may consider blocking the scamming customer.

Affected customers have a few ways to report a food delivery scam.

Typically, a customer trying to commit delivery fraud will report an issue with the food directly through the third-party app.

Customers who are a victim of a food delivery fraud scam where their credit card is stolen can report it directly to the third-party app. They should also reach out to their financial institution for a chargeback and a new credit card. They may be able to file a police report if a scammer hacks their account and uses their card, but this may not be an effective means of immediate recovery.

What Are the Consequences of Food Fraud?

Scammers often can’t be traced to dole out any real punishment,. However, restaurant owners face very serious consequences for food fraud. These include:

Risk of merchant account fines, fees, limits, and even termination for too many chargebacks

A damaged reputation among the local community, along with the potential loss of customers

Having to implement stringent security measures, which may cause friction with honest customers

It’s vital to understand that restaurant fraud isn’t harmless. It’s worth doing whatever you can to combat it. This is especially true when it’s easy for you to face consequences.

Who Pays? Delivery Service or Restaurant?

Believe it or not, chargebacks and refunds cost you considerably as a business owner. As the merchant, you’ll incur all expenses to rectify a fraudulent incident, including additional processing fees.

When a customer initiates a chargeback, the transaction fees and operational costs of delivering the meal are essentially wasted. If the customer asks for a refund in the third-party app and “wins” their case, the app may charge you a fee to cover the reimbursement. Not only are you losing out on the money for the meal, but you’re now in the negative since you must pay the third-party app.

Restaurant Solutions with DTiQ

As a restaurant owner, you should be spending your resources on acquiring new customers and providing a stellar experience for them. Fraud robs you of that opportunity, negatively impacting your bottom line and jeopardizing your restaurant. To prevent it, restaurants must take action.

By offering advanced analytics, video solutions, and robust business intelligence, DTiQ can help you. Create a loss prevention strategy to catch suspicious activity and fight back against even the friendliest fraud as a team.

Book a demo today and let us help you build a custom solution to protect your business and keep you moving forward.

Scaling your franchise operation: what you need to know

DTIQ on September 8, 2023

Starting your first business is a huge undertaking, even when it’s part of an established franchise (this may actually up the pressure). But once you do, you’re likely itching to start scaling your franchise operations.

After all, you figured out the recipe to success for one location! It’s tempting to copy and paste that to another location. And another. And another…

However, your perfect recipe is harder to replicate at seven, eight, or more locations. The time to travel between locations is getting longer now that there are more of them. When one store needs focus, the others may fall to the side. Upfront capital is always tough to secure.

So how do you scale responsibly?

Here’s what you need to know.

Six Steps to Scaling Your Franchise Operation Responsibly

Let’s dive into each step required to scale your franchise operation.

Step One: Evaluate Your Current Business

The first step to scaling your franchise is evaluating your current restaurants — reviewing how they are performing, where you need to improve, and (most importantly) if you have the funds from your current businesses to keep a new location afloat as you ramp up.

Here’s how to evaluate your current franchise performance:

1. Review Historical Performance: Start by looking at financial statements to get a historical idea of how your stores have performed over the last month or years. This can include your profit and loss statement, balance sheets, and cash flow statements. This will give you a clearer idea of performance (and potentially reveal any glaring areas of concern you may want to address before expanding)

2. Assess Weaknesses: It’s never fun to look at what’s going wrong, but you know that putting your head in the sand doesn’t fix a business problem (how easy would things be if that did work!). Look at what isn’t going right for your business before expanding. This will help you minimize the chance of bringing these weaknesses to a new location.

3. Evaluate Competition: No doubt that competition is something you review regularly, but you want to do it again as you look at business performance. Have competitor franchise locations been popping up? Did you notice a certain chain closing more often? Note all of this.

4. Analyze Customer Feedback: Regularly review customer feedback, including online reviews and comment cards, to get a sense of how your customers perceive your restaurant. This will give you insight into your current performance. Is there a lot going on at your current restaurants that need improvement? If that’s the case, you may want to consider focusing your efforts to improve what you already have.

Step Two: Research Potential Expansion Markets

Now that you’ve evaluated how things are going at your franchise business and everything appears to be going well, it’s time to plan the best market for scaling your franchise.

You know your current market and neighborhood well. However, a few blocks over from one of your locations everything can be different. Take the time to evaluate different neighborhoods in your area and understand their demographic. This can include (but is not limited to):

Average age of the areas
Average income of the area
Marital status

You want to ensure that the demographic of the area where you’re opening your next franchise location aligns with your target market. This information can also inform certain decisions you make about a new location. If you move to an area that has very little car traffic, for example, you may not want to spring for a state-of-the-art four-lane drive-thru because you won’t hit that automobile traffic.

Step Three: Develop a Marketing Strategy

A marketing plan is a document that outlines a company’s overall marketing strategy, goals, and tactics for achieving those goals. It typically includes an analysis of the company’s target market, competitive landscape, and strengths and weaknesses. The plan should also identify specific marketing objectives and the tactics that will be used to achieve those objectives.

Throughout the marketing plan, you want to break down tactics you’ll use to make people aware and excited about coming to your new location. This could include giving away a free meal to the first 50 guests on opening day or mailing out coupons they can use within the first three months of opening. The goal is always to get people through your doors one way or another.

Pro tip: You likely already do some marketing for your current locations that are in operation. Use past marketing successes and failures to fuel the marketing plan and decisions you make for your new business. It’s a shortcut to marketing success!

Step Four: Put Everything Together into a Detailed Expansion Plan

It’s time to build your expansion plan to continue scaling your franchise! Once you’ve done everything outlined above, you’ll have all the information you need to do so.

Your business expansion plan is a document that outlines the strategy you have for profitably growing your franchise operations to include another location.

Beyond what you have worked on to this point, you’ll also want to include a few other items in your expansion plan, including:

Financial projections: This will include a detailed financial projection for your new location, including revenue forecasts, expensive budgets, and cash flow projections
Operational plan: Your operational plan will outline the strategies and tactics you are using to expand your franchise successfully. This can include hiring plans, training programs, and any technology investments. Your operational plan can be largely based off other locations you have that are seeing success — you want to replicate that success, after all!
Review of risks and a plan to manage them: There are always risks with any new business endeavor. You just need to show that you have a plan to tackle them. Review the potential risks associated with acquiring and running a new location as a part of your franchise group, and outline strategies to mitigate said risks.

Pro tip: As you expand, you want to find technology that expands with you. Look for companies that create products that cater to franchise businesses, like DTiQ. They all work with franchises regularly, so you know they can scale with you.

Step Five: Pitch to Investors

Step five may not be a necessity, depending on your financial situation, but it is an extremely important step for most — pitching to investors.

Opening a new franchise location includes a lot of upfront costs. You need to secure or build a brick-and-mortar store, renovate or decorate, hire and train a new team, and so much more before you even come close to making your first sale.

You can search for investors once you have a detailed plan for expansion, a marketing plan, and research to back up your expansion. These are all things that investors are going to ask about, so it’s better to approach them once you have a plan in place and you’re able to answer their questions. They’re more likely to invest in you if you appear prepared and confident.

Step Six: Legal Considerations

You already know that there are a good amount of legal considerations when it comes to opening a new location. You’ve done it a few times at this point, and it’s time to do it again. Some of the legal considerations you should keep in mind when expanding your franchise business include:

1. Franchise Agreements: When expanding your restaurant franchise, you will need to draft new franchise agreements with the franchisees. These agreements should include terms related to licensing, training, support, territory, royalties, fees, and termination.

2. Intellectual Property: Your restaurant franchise likely has valuable intellectual property, such as trademarks and copyrighted materials. You should ensure that your intellectual property is adequately protected and that your franchisees are using it properly.

3. Compliance with Laws and Regulations: You should ensure that your franchise business is complying with all applicable laws and regulations related to food safety, health, employment, taxes, and advertising.

4. Insurance: As you expand your restaurant franchise, you may need to review and update your insurance policies to ensure that you have adequate coverage for all aspects of your business.

Note this is not binding legal advice. There are lots of other legal considerations to consider. Speak with a lawyer who specializes on the legal considerations for scaling a franchise or opening new businesses in your state or province, as it can vary greatly between locations.

Final Thoughts on Scaling Your Franchise Operation

There’s a lot that goes into expanding your franchise business, especially as you move past seven or eight locations. You become a pro at some of these steps, but others can become trickier or larger as your business goes. The key is to ensure that your current locations are doing well, before diving into another endeavor.

If you’re looking for technology that can grow as your franchise group grows, look no further than DTiQ. DTiQ helps thousands of franchise businesses to thrive, giving owners high-level overviews of all their location performance. You can contact us or book a demo to see our technology in action — and how we can grow with you.

Different types of drive-thrus — and nine tips to optimize their performance

DTIQ on September 8, 2023

Drive-thrus have come a long way since the days of just being a single lane. And it’s no wonder there are so many new types of drive-thrus. With roughly 70% of business coming through the drive-thru, it’s arguably the most important feature of your QSR to ensure success.

To help you achieve drive-thru success, this article will go over:

The different types of drive-thrus
How to determine which drive-thru style is right for your QSR
Nine tips to supercharge your drive-thru performance, regardless of style

Let’s go (drive) thru these tips.

Single Lane Drive-Thru

The single-lane drive-thru is one of the most traditional types of drive-thrus that many older QSRs use currently. This model typically has one lineup for customers to drive-thru. They stop at a singular order point, place their order, and then proceed to a singular window (potentially two windows if your operation has a window for payment and another window for receiving the food). Everybody follows one path, meaning one car gets through at a time.

Y-Lane Drive-Thru

Y-Lane drive-thrus are another one of the types of drive-thrus that QSR owners can explore. This is where you have two lanes with two separate order points. Cars can enter at whichever lane they choose, and then the two lanes merge into one. Diners wait in a single line to receive their food and pay.

Pro tip: It can get confusing for your staff when the drive-thrus merge in a different order than the food orders are placed in. This can lead to quite easily mixing up orders and your guests receiving the wrong food. DTiQ’s Drive-Thru Order Accuracy Solution uses smart video to pair images of cars with an overlay of their order. The cars and their orders are displayed in tandem on a screen for your team, making it easy to ensure everybody gets what they ordered.

Dual Lane Drive–Thru

Take the single lane drive-thru and double it, and you have your dual lane drive-thru! This set up has two of everything. Two lanes for people to enter, two order points, two different paths to follow after ordering, and two pick up windows. This model works well for stores that have drive-thru windows on both sides of their building.an outline of a dual lane drive-thru, one of the types of drive-thrus

Tandem Drive–Thru

Your tandem drive-thru follows the flow set by a single lane drive-thru but allows double the cars to get through the same amount of space. A tandem drive-thru allows two drive-thrus to operate at once on the same path. There are two order points, two order takers, and two pickup windows.

How to Determine Which Drive-Thru Makes Sense for Your Business

Are you debating if it’s time to upgrade your single lane drive-thru? Trying to decide what style of drive-thru is right to install at a new location? Here are some factors to help you consider which type of drive-thru is right for your space.

Space

Typically, more lanes and windows = more space required to implement it. If you’re tight on space, creating a tandem drive-thru may be trickier compared to a y-lane drive-thru that merges together.

Staffing

You may have the space to create a fifteen-lane drive-thru with that many windows, but do you have the people to run it? Consider what you’ll realistically be able to scale your staff to. It’s a recipe for disaster if you have double the drive-thru windows but not double the staff to get orders out.

Cost

You will face a larger upfront cost with a larger or more intricate drive-thru set up. Your dual lane drive-thru will require essentially double all the assets — double ordering points, double drive-thru windows, and double the equipment at each drive-thru window. Setting a realistic budget for your drive-thru install will help in the decision of what type of drive-thru is right for your QSR.

It is important to note, however, that scaling your drive-thru is an investment — an investment that will very, very likely pay off. As more QSR business funnels to the drive thru (vs. Coming indoors), you want — no, need — to be able to meet the demand if you hope for your franchise to be successful.

How to Optimize Different Types of Drive-Thru Performance

You’re always going to want to improve your drive-thru performance.

So how do you optimize? Here are nine tips that will help, no matter the types of drive-thrus you’re working with.

1. Streamline your ordering process

The first step to optimizing your drive-thru performance is to streamline your ordering process. Train your team to use clear and concise language when taking orders and have a standard order taking script to ensure that nothing is missed. Implement an electronic ordering system to make order taking easier and faster.

2. Use the right technology

Naturally, you use some technology for your drive-thru. But is it the right technology?

Technology is evolving all around us, and drive-thru technology is no exception. There are timers that gamify performance, headsets that you can listen to interactions at the window, and smart video that matches the transaction to each car on a video, making it near impossible to get the order wrong. All this technology makes for a smoother experience at the drive-thru, both for customers and staff.

By working with outdated tech, you risk just clogging up your operations.

3. Plan for third-party delivery and pre-ordering as part of the drive-thru

They say that if you fail to plan, you plan to fail. And if you fail to plan for third party and pre-orders as part of your QSR drive-thru operation, you’re planning to fail.

The integration of your third-party delivery apps or pre-order apps is going to impact your drive-thru operation. The popularity of ordering ahead and driving through to pick up is growing.

4. Organize your menu boards

Organizing your menu boards can help customers make their orders quickly and efficiently. Place the most popular items at the top of the menu board and group similar items together. Use large, clear fonts that are easy to read, and avoid using too many colors or graphics that may distract customers.

5. Work with a drive-thru timer

Using a timer system can help you track how long it takes to serve each customer and can help you identify areas where you can improve your performance. You can set a goal for how long it should take to serve each customer and use the timer system to track your progress — think about rewarding your team for a time that goes down.

This technology has evolved to the point that timers do more than time. You can turn drive-thru timers into a game for your store or competition against other stores that are a part of your franchise group. A little friendly competition can go a long way.

6. Give each team member a specific job

Assigning specific roles to your team members can help you optimize your drive-thru performance. Have one team member take orders, another team member prepare the food, and another team member hand out the orders. This will help you ensure that each task is being done efficiently and quickly.

7. Provide adequate training

Giving people a role and moving on isn’t enough. Once you or your management team have assigned specific roles, it’s imperative that you train your team to thrive in these roles. Adequate training for your team members ensures that they are proficient in their assigned roles. This will help reduce errors and ensure that each task is being done correctly. Regularly evaluate your team’s performance and provide feedback to help them improve.

One thing you should do is rotate assigned roles between the staff so that your team gains experience across each of them. This allows them to level up their skills while ensuring that you have a capable team of individuals who can step in if somebody calls out sick, without compromising the experience for your customers.

8. Keep your equipment and supplies organized

Organization is a critical part of a smooth drive-thru operation. Make sure that everything is easily accessible, your team is trained on where to find everything, and ensure you have backup supplies easily available in case something runs out.

9. Keep a positive attitude

Positivity is key, especially when facing customers. Train your team to greet each customer with a smile and thank customers for their business. When your customers feel valued, even during a brief drive-thru experience, they will want to come back.

This is especially important when it comes to delivering bad news at the drive-thru. Chances are, you have been on the receiving end of bad news while in line at the drive-thru — the ice cream machine is broken, they are out of the nuggets, or something else. Training your team to deliver that news to customers politely is what will ensure that, despite a less than positive experience, they’ll still feel positive about coming back.

Final Thoughts on Types of Drive-Thurs and Drive-Thru Optimization

With so many different types of drive-thrus, it can feel daunting before you even install one. You must make a choice of which type of drive-thru is right for your business and then make sure it runs smoothly.

Optimizing your drive-thru performance at a quick service restaurant requires a combination of efficient processes, clear communication, and effective team management. By implementing these tips, you can help ensure that customers are served quickly and efficiently with any type of drive-thru, which can help improve customer satisfaction and drive sales.

If you want to elevate your drive-thru technology (for ANY type of drive-thru), see how DTiQ and Summit Innovations can help. You can contact us or book a demo to see our technology in action — and how we can work together to optimize your drive-thru performance.

5 major things tanking c-store profit for franchises — and tips to fix them

DTIQ on July 17, 2023

They say cash is king, but some would argue convenience is the true royal. People are willing to pay more for convenience — which is why convenience stores continue to thrive from coast to coast.

And as the convenience store market booms, you want to make the most of that demand. Which is why avoiding profit sinkholes is arguably one of the most important parts of managing your convenience store empire.

Let’s review some of the biggest convenience store profit sinkholes, according to the DTiQ team, and their advice for turning it around.

Is The C-Store Space Profitable?

Yes! Convenience stores continue to be profitable, and the market is only growing. As this space continues to grow, it becomes even more imperative to maximize profit, and minimize where you’re bleeding cash.

And the growth expected in the convenience store space is significant, according to the Convenience Stores Global Market Report 2023. The market sat at a whopping $928.87B in 2022 but is expected to grow past that to $1019.71B in 2023.

And if that isn’t impressive enough, the convenience store market Is going to reach an estimated $1434.72B by 2027. That’s a lot of growth that c-store owners want to be a part of.

But the short of this all? The market is growing — and with that, your profitability should be as well.

What Makes the Convenience Store Profitable?

When you factor in the growth of the industry with a well-managed location, a convenience store can thrive. This isn’t to say it’s easy by any means — but with the work, it’s possible.

Several factors contribute to the potential profitability of a convenience store.

Firstly, the convenience store industry benefits from its focus on providing quick and convenient access to a variety of products. This appeals to busy consumers seeking immediate purchases of essential items, snacks, beverages, and ready-to-eat meals. The convenience factor allows stores to attract a steady flow of customers throughout the day, generating consistent sales revenue.

Secondly, convenience stores often have higher profit margins on certain products compared to larger retailers. They can capitalize on impulse purchases, charging slightly higher prices for the convenience they offer. Additionally, their smaller size and streamlined operations can result in lower overhead costs compared to larger retail establishments.

Furthermore, convenience stores can diversify their revenue streams by offering additional services such as fuel stations, ATMs, lottery tickets, and in-store services like bill payment and money transfers. These ancillary services can contribute to overall profitability by increasing foot traffic and generating additional income.

However, it is important to note that profitability in the convenience store industry is not guaranteed and can vary depending on several factors. Location plays a critical role, as stores situated in high-traffic areas or areas with limited competition tend to have better revenue potential. Effective inventory management, cost control measures, and efficient operational practices are also essential for maximizing profitability.

Ultimately, while convenience stores have the potential to be profitable, success in this industry requires careful planning, effective management, and a keen understanding of customer preferences and market dynamics.

5 Things Tanking Profit for C-Stores — And How to Fix Them

With so much profit to be had in the convenience store space, you want to ensure that everything that can cause shrinking profits (within your control) has been dealt with. With that, you can focus on that profit.

In managing a convenience store, there are several areas that generally have a higher risk of impacting profitability. So, let’s review the biggest things tanking profits for convenience store owners— and advice from the team on how to fix it.

1. Inventory Management

Poor inventory management can prove to be a costly affair when operating a convenience store — especially when you consider how much inventory comes in and out of a convenience store.

Inadequate tracking and control over inventory can lead to a myriad of challenges and financial consequences. Firstly, excess inventory can tie up valuable capital that could be invested in other areas of the business. Overstocked shelves can result in additional potential losses due to expired or spoiled items. Of course, overstocking is a fate you desperately need to avoid.

On the other hand, insufficient inventory is also a problem (it’s never easy, is it!). When you lack product, it results in frequent stockouts. Imagine showing up and expecting a convenient experience and finding a shelf empty — your customers are not only going to leave upset, but they’re going to walk to your nearest competitor. A lost sale is a loss in sales revenue in that moment, but a bad experience can cause you to lose a customer, which is potential ongoing revenue.

You need to find the perfect balance! Avoid ordering too much or too little.

But how do you do that?

The key is to implement effective inventory management practices. You can leverage technology that can help with inventory, showing you historical trends or helping you measure levels. convenience store owners can mitigate these risks, optimize their stock levels, and ultimately enhance their financial performance.

2. Employee Staffing

Poor staff scheduling can be a sinkhole for money in a normal retail store, let alone a store that has locations open around the clock. Being efficient with scheduling is critical to maintaining profit levels.

However, finding the perfect number of staff per shift is a very similar science to your inventory management — you don’t want too many staff, but you also don’t want to be understaffed.

When you understaff, your team will face shifts with adequate coverage to get done what they need to get done. This, in turn, leads to decreased customer loyalty when they receive a less-than-ideal experience and potential loss of business.

On the other hand, overstaffing can result in unnecessary labor expenses, eating into your profitability. Additionally, ineffective scheduling may contribute to increased employee turnover as workers become frustrated with irregular hours, unpredictable schedules, or excessive workloads.

So how do you get to this happy medium? You can:

Communicate with your team! Ask managers or shift leads for the times things are busy and things are slow. You won’t get insights clearer than the people who are Use that to fuel the schedules you’re making.
Leverage staffing software and sales information. Certain video surveillance programs can pull your sales data for each hour you’re open. Compare that to your staff scheduled at any given time. If you have the same number of staff scheduled for an hour that you’re making $1,500 dollars and an hour you’re making $275, you might want to review
Publish your schedule well in advance. This gives your team plenty of time to review and plan their weeks accordingly— and hopefully minimize callouts you’re dealing with

“If you’re going to have to change the schedule and hours people are receiving, the key is to talk to your team and let them know what’s happening. There’s nothing more frustrating than getting hours cut and not understanding why. Keeping them in the loop will keep morale high — higher than it would be with no knowledge as to what’s going on!”

Glenn Brown, CSM at DTiQ

3. Theft and Shrink

It’s safe to assume that theft, especially of food products, is only going to increase as the cost of living skyrockets. And this means that theft and shrink will become a bigger profit-sinker for convenience store owners.

This is why having a convenience store loss prevention strategy is key to tackling theft and shrink, a huge sinkhole of profit.

Theft by customers or employees, as well as operational errors or administrative mistakes, can contribute to shrinkage. Implementing strong security measures, conducting regular inventory audits, and ensuring proper cash handling procedures can help minimize losses.

Luckily, you don’t need to plan a stakeout outside of your convenience stores to catch theft happening and minimize your losses. You can leverage intelligent video surveillance systems to help mitigate the appeal of theft and provide evidence in the cases where theft unfortunately takes place.

SEE HOW DTiQ CAN HELP

4. Product Pricing

People will pay for convenience — but only to a certain extent.

While people expect a convenience store to have a certain markup on their products (the cost of convenience!), you have to be realistic. Incorrect pricing strategies, including pricing items too high or engaging in excessive discounting, can be detrimental to your profits.

However, just like everything in running a convenience store, there’s no one answer to product pricing. Incorrect pricing strategies, including pricing items too high or engaging in excessive discounting, can impact sales and profitability.

Get creative! Try different pricing strategies and see what works. When you try out different strategies, you can see what pieces well together to optimize those sales and see your profit soar. Some pricing models you can try:

Buy X, Get Y 50% Off Price a more expensive item at full price and pair it with an item that has a low net cost. That way, you’re moving stock of more expensive items and moving some of the less expensive stock without losing money on it. People love a deal
Buy X, Get Y Free: This typically works with items people can buy in bulk. Think of sales that read like buy two bags of chips and get one free, buy two bottles of water and get two free. The limits are endless.
Spend X Dollars, Get Y for Free: A minimum spend can be a great way to encourage people to up that average check, especially when they feel like they’re spending and getting a perk for it.

5. Product Placing

Believe it or not, just putting your products in the wrong place can ruin your profit margins.

Effective product placement and appealing visual merchandising can influence customer buying behavior. Poor placement or lack of attention to visual appeal may result in missed sales opportunities and reduced profitability.

Take an example where you have the hot summer cooler of the year at your store. It’s been flying off the shelves everywhere and has been dubbed the drink of the summer. You expect it to fly off your shelf as well, but instead, it stays untouched for days.

You know the issue isn’t the merchandise. The issue is likely that people can’t find it.

You switch up the location of the coolers, and within a day they’re all gone.

People need to know the product you have. Something has to be at the back, but be strategic where everything goes. Every sale counts towards your profits!

“It’s amazing how placement can make all the difference! I’ve worked in situations where we had product that wasn’t moving, which came as a shock. All it took was moving it into the right spot and we were sold out in just a few days.”

Katie, Manager of Content & Comms at DTiQ

It’s important to note that the impact of these areas can vary based on the specific circumstances of each convenience store. Understanding the unique challenges and continuously monitoring and adapting to market conditions are crucial for sustained profitability.

Remember, these are just some of the general areas that can potentially impact profit margins in a convenience store. The specific challenges faced by each store can vary, so it’s essential for owners to analyze their own operations and identify the areas where improvements can be made to optimize profitability.

DTiQ Helps You Avoid Profit Sinkholes

These risks are a part of the quick-service restaurant experience, but there are more ways now than ever to minimize — and almost entirely eliminate — them.

If you’re looking for another set of eyes to ensure that you aren’t tanking profit from areas of your convenience store, see how DTiQ can help. You can contact us or book a demo to see our technology in action — and learn more about the lost profit it can find for your convenience store.

Everything you need to know about DTiQ’s SmartAudit™

DTIQ on July 10, 2023

You’ve probably muttered these phrases to yourself countless times:

There are not enough hours in a day. If only you could clone yourself. There’s too much to do and not enough hands on deck. Has science made it possible to teleport yet?

Unfortunately, we haven’t found the technology to teleport just yet, but we may just have the next best thing.

Cue DTiQ SmartAudit™. These audits pull unparalleled insights into your business, delivered to QSR owners to give you a customized report of how your business is performing. Findings are discovered by the 360iQ platform and confirmed by our full team of auditors so that you get all the insights without any of the time digging for them.

What is SmartAudit™?

Think back to all of the times that you’ve shown up at your franchise locations unannounced and immediately see the things you know need to change. Behavior might improve when you’re there, but you can’t be there watching and monitoring all the changes you need to make.

Think of your SmartAudits™ as your 24/7365 unannounced visit. You work with your DTiQ team to determine what areas of your business you need to focus on at each location. From there, you receive the overviews right to your mobile application of each location’s performance without ever needing to leave your desk.

And each overview you receive is exactly what you want to know about your business and each specific location. It’s never going to be 100% the same, which lets you know that you’re getting the insights that you need. You’re not paying for anything that doesn’t add value to your business.

But it’s also so much more than that.

With DTiQ’s SmartAudit™ solutions, trained experts use advanced algorithms to look through the data and remote observation of more than 30,000 customer locations every month. Customized programs can measure and manage various areas of concern for clients, including enhanced loss prevention, customer interaction, employee effectiveness, operational compliance and more.

You don’t just have surveillance in place with DTiQ SmartAudit™ solutions. You have a dedicated partner ensuring maximum financial return and operational excellence on the ground, where it counts.

What are the Benefits of SmartAudit ™?

Bringing SmartAudit ™ into your business can have some major benefits. Let’s review some of them.

Customized Business Insights

What matters to you and your business won’t matter to a business that may be your next-door neighbor. That’s why SmartAudit ™ solutions pull business insights that matter to you and you alone. The report is fully customizable, so you see everything you want. You’ll work with your DTiQ rep to build the report together and get insight into everything you need.

Operational Excellence

Are people on their phones? Are customers getting greeted? Are your guests getting the best experience possible when they come to your business? Now you can find out. Audits can get as detailed as saying if employees are wearing gloves and saying hello to diners to larger operational issues like safe and secure cash handling practices — meaning your operation will get better every day.

Unbiased Reviews of Operations

It’s easy to miss things you see every day, especially when you’re that close to your own operation. SmartAudit ™ allows an unbiased set of eyes to review performance and see what’s really going on — and see how your customers are seeing things as well.

Time Savings

Simply put, there’s not enough time in the day to review performance at all of your locations to the level of detail you need. SmartAudit ™ means one of our 100+ auditors is taking the time to review your performance and pull out what actually needs your attention. You save hours sifting through footage and notes. Instead, you receive the moments that need your attention, catered directly to your needs.

What Do SmartAudits ™ Focus On?

Short answer? SmartAudits ™ can focus on anything you need them to, so there’s no one answer.

Longer answer? The program is fully customized to your business needs, and the customized audit questions you ask are tailored to you. SmartAudit ™ clients work with their account representatives to create a SmartAudit ™ that is exactly what you need — and nothing else.

But there are a few areas that people typically use their SmartAudit ™ reports to drill down on, including:

Cash handling: Is your team practicing safe cash handling procedures? Is cash not making it to the safe? Are two people in the cash room during counts at the end of the day? Review all of this through a SmartAudit™.
Employee safety: This includes reviewing that your store is safe for employees and they are behaving in a way that ensures safety. Keep an eye out for any roughhousing or improper cleaning that can result in injury.
Employee productivity: Less Candy Crush on shift! You can get a report at the end of each day that tells you how often phones were pulled out while on the floor, which directly takes away from productivity.
Hygiene: These reports can be as detailed as checking for employees wearing hairnets and gloves, washing their hands, and more. A clean workplace makes for happy customers!
Loss prevention: Nothing keeps businesses of all sizes up at night like loss prevention. Trying to manage loss plagues industry leaders across the world — whether it’s food waste, product theft, shrink, or cash theft.

And these are just some of the areas that SmartAudit ™ can focus on. You get to work with your DTiQ team to figure out what matters to you — and how to optimize it.

The Future is Smart(Audit)

The future of your franchise is getting smart — SmartAudit ™. With industry-defining technology that lets you see your store from even more lenses, keep your eyes in more places at once, and get customized programs can measure and manage your specific areas of concern, you’re getting a whole team in your corner.

See how DTiQ and SmartAudit™ can help. You can contact us or book a demo to see our technology in action.