University of Delaware



Hot drinks! Hot Technology! Hot Profits!In a recent article by David Schepp that appeared in the Daily Finance by AOL entitled, “ Coffee perks up July sales at McDonald's”, he credited the positive performance of McDonald’s to their increase in sales of brewed beverages, mainly premium coffees. McDonald’s and Dunkin Donuts can compete with Starbucks and other premium coffee houses because of the advancement of technology in the coffee/espresso markets. Coffee remains a religious war; in that, the making of espresso/coffee is art vs. science. Most coffee/espresso machine manufacturers have been in the business over a century. These manufacturers from Italy, Switzerland, and Germany (mainly) crafted machines that were meant to be manually operated by artisans with proper skills and training that could craft the perfect cup of coffee. Coffee requires that many variables be taken in to account and adjusted to produce that perfect cup. To the perfectionist, the coffee aficionado, technology can never replace the artisan but to a person like myself and 90% of the population a good barista can, in fact, tune a more automated coffee machine to produce a consistent almost perfect, but maybe not quite, cup of coffee all day long; even when the operator has a hang over or is fighting with their significant other. This process and control structure in an organization is similar to the head chef in a restaurant chain and how they establish the recipes for each menu item.Coffee drinks also have recipes and each drink menu item needs a recipe to be followed in order to consistently produce each coffee drink. Semi-Automatic or the newer Super Automatic espresso/coffee machines are coming into the modern age and taking advantage of science and computer controls. With the advantages provided by the newer technology Dunkin Donuts can produce and very solid, good tasting cup of coffee, espresso or cold coffee drink. Another advantage that is made available through technology is that a brand and head barista can produce a consistent tasting espresso across an entire region or chain independent of the employee’s skill set. Chain restaurants are successful because they can produce a consistent product, no matter where the location.? It may not be the perfect meal but it is consistent.I have interviewed Jerry Leeman formerly of IBM on this new innovative product that could have application to hotel F and B, resorts and cruise ships.Jerry has worked on a new project with Perk Dynamics, Inc., a software company in Oklahoma, is taking the technology to the next level. They have developed a software package, “AutoPerk?”, that connects the Point of Sale (POS) software directly to the newer Super Automatic coffee/espresso machines. LeCimbali, as an example, has a new machine called the S39 that can interface with this software and has embedded in the front of the S39 a 5 inch display to provide drink queue and customer information. Having all the information about the drink and customer visible on the front of the espresso machine allows the barista to focus on preparing the next cup of coffee or add syrup for the next queued drink that the machines are not capable of adding (as far as I have seen). The AutoPerk? software also provides load balancing across multiple coffee machines and time-release queue for orders placed in advance. The software also allows the transmission of customer information stored in a loyalty system to be provided to the person serving the brewed beverage. This connection of the POS to the coffee machine will increase efficiency, reduce errors in ordering, reduce labor costs, decrease shrinkage, and increase overall customer satisfaction.The addition of this technology will add new opportunities for premium coffee that have not been attractive in the past. Grocery stores can increase sales by taking your coffee order while checking out your purchases, pay with a single transaction and have the drink ready as you walk out the door. Table service restaurants can add a Super Automatic behind the bar and wait staff can enter the drinks while entering the rest of the customer order and have the coffee queue on the coffee machine. In an office complex, hotel /resort or hospital coffees can be ordered online and use employee payroll deduction or credit accounts to queue the order so a person can rush in and not have to stand in line to order and then wait for a coffee. Any method that can get an order to a Point of Sale system can now flow directly to the barista without any additional intervention by the cashier or a cup runner. I see in the near future an iPOD application talking to the POS in a university coffee shop for the student who scheduled a Grande Mocha Nut to grab between classes and the only person involved, besides the student, is the person handing Zachary his drink and telling him to have a good class.R. Gerald (Jerry) Leeman, CEO of POS Strategies, Inc.: Jerry is an independent consultant that provides expertise on technology in the retail and hospitality industries. Jerry has management experience in retail and hospitality and 27 years of IT experience. He is also on the Advisory Boards for the University of Delaware and Penn State University Hospitality programs. He is formerly of IBM Global retail store solutions as the Industry Segment Manager for Hospitality. ................
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