Complete Restaurant Life Cycle Management. SONIC Drive-In with TRIRIGA. InterConnect Presented by:

Transcription

1 Complete Restaurant Life Cycle Management InterConnect 2017 at SONIC Drive-In with TRIRIGA Presented by: Sonic Drive-In Barry Smith, Director, Fixed Assets Ronda Boles, Manager, Fixed Assets ecifm Solutions Inc. Sanjiv Paul Singh, AIA, LEED-AP

2 1. Introductions 2. Overview & Experience 3. Case Study: Sonic Drive-In A. Overview B. Goals C. Challenges 4. Restaurant Life Cycle Management Solution A. Project Overview B. Features & Functionality C. Why TRIRIGA D. Do s and Don ts E. Next Steps 5. Questions & Answers

3 Introductions Barry Smith Director, Fixed Assets o 14+ years of experience in accounting o 5+ years of experience in real estate accounting o 4 years of experience working with TRIRIGA Real Estate module o 2 years of experience during implementation of Capital Project module Ronda Boles Fixed Asset Manager o Implemented IBM TRIRIGA software platform for lease management o 10 + years experience in Sonic finance o 5 + years of real estate accounting o MBA from Oklahoma Christian University o Bachelors degree in accounting from Oklahoma State University

4 Introductions Sanjiv Paul Singh, AIA, LEED AP Executive Vice President o Licensed Architect o 30+ years of industry experience with a large portfolio of successful TRIRIGA implementations o Creator of ecifm s innovative Mobile solution On-The-Go o Former V.P. of Peregrine Systems o Prof Services Manager at ARCHIBUS

5 ecifm Solutions - Corporate Overview Premier IBM Business Partner Singular Systems focus on IBM s market-leading TRIRIGA IWMS solution TRIRIGA partner since 2002 ecifm has a Global Presence > 120 employees worldwide Winner: IBM Facilities & Asset Innovation Award Top TRIRIGA Partner, 2 nd year in a row NASA Office of Small Business Programs Customers in every major industry Core Services System Implementation Cloud & Hosting Solutions 24 x 7 Technical Support RE & FM Consulting CAD Support Mobile Solutions TRIRIGA Upgrades TRIRIGA Enhancements On or Off Site Training Learn more about TRIRIGA and ecifm

6 Case Study: Sonic Drive-In

7 Sonic Drive-In Who We Are: The nation's largest drive-in restaurant chain Company: o Headquarters: Oklahoma City, OK o Founded in 1953, Shawnee, OK o Over 3,500 Stores in 45 States Own or Lease Land for All Company Owned Stores Also lease land/buildings to Franchisees Adaptable Store Concepts

8 About Sonic Drive-In 3,557 Drive-Ins across 45 states Serving more than 3 million customers every day SALES $1,284,000 average unit sales (FY16) 350 corporate employees

9 Fun Facts In one year, SONIC: o sells enough tots that when placed end-to-end would circle the globe TWICE o sells enough Footlong Quarter Pound Coneys to border the 48 contiguous United States o sells enough Cherry Limeades to fill more than 15 Olympic sized swimming pools o gives away enough mints to reach the top of the Empire State Building and back to the ground 5,000 times.

10 Restaurant Life Cycle Management with TRIRIGA

11 Sonic Drive-In Challenges: o Disconnection of processes between departments o Complicated diverse lease portfolio o Cumbersome Reporting Abilities Prior System: o Lack of unified solution o Workgroups unaware of one another s activities o Utilized highly customized solution for Store Life Cycle Management Business Drivers: o Grow 30% over the next 10 years Add 1,000 new stores Increase presence to all 50 states o Ability to support the FASB ASC 842 Lease accounting update. o Single location for Store Site Selection Information o Enhanced reporting to improve analysis

12 Our Challenge: Visibility Across All Departments Real Estate Managers can identify optimal sites based on market planning objectives and sales forecasting tools Compliance/Risk /Governance can see instant and accurate insight into details to ensure regulatory compliance and mitigate risk Lease Accountants can track and manage large quantities of lease payments and ensure latest FASB 13 compliance for both capital and operating leases Executives have visibility and control across the organization through common systems to improve efficiency across departments to executive strategic objectives Project Managers can see increases project efficiency by automating and coordinating processes, purchase orders and invoices from a central location and schedule Lower overall cost of operations & systems Lease Administrators can track and manage real Desire for warrants, project estate and contract asset obligations tracking consistency Operations Managers can see restaurant conditions in sufficient detail to ensure each store is maintained in a manner that supports brand objectives and store all related lease information in one repository Increased analytical reporting Maintenance Managers can automate routing of work orders to the responsible party by referencing Service Level Agreements IT Managers can see how to streamline resources across the organization Purchasing Managers can see costs and orders enterprise-wide for price comparisons, discounting, standardization and order tracking

13 Goals for a New System at Sonic Drive-In Complete single portfolio view Ease of use & accessibility over the web Lower overall cost of operations & systems Desire for a solution that is ASC 842 Lease Accounting Compliant Increased analytical reporting Accountability across all departments

14 Restaurant Life Cycle Management Solution Overview RESTAURANT FACILITY MANAGEMENT Contact Center Maintenance Equipment Repair MARKET PLANNING & SITE SELECTION Portfolio Manager Transaction Manager PROJECT MANAGEMENT Budgeting Procurement Project Planning Construction Manager Architect/Design LEASE ACCOUNTING Real Estate Finance FASB Reports LEASE ADMINISTRATION Real Estate Manager Lease Administration

15 Restaurant Life Cycle Management Solution Overview Market Planning & Site Selection o Integrates market and financial management data o Tracks site selection activity and communication between teams o Automates Site proposal creation and approval process

16 Restaurant Life Cycle Management Solution Overview Budgeting o Integrated with financial system for billing and invoicing (future state) o Financial modeling tools evaluate impact of proposed locations o Scenario analysis to compare & contrast proposed locations to determine best overall site o Construction Management team is able to view real-time costs (future state)

17 Restaurant Life Cycle Management Solution Overview Construction Management o Standardized project templates & workflows automate streamline key construction tasks o Automates Site proposal creation and approval process o Tracks all pertinent store attributes o Manages both Renovations and New Store Openings

18 Restaurant Life Cycle Management Solution Overview Restaurant Facility Management o Allow stores to report work through self-service and Contact Center capabilities o Support maintenance work tasks o Automate routing to service providers through service agreements, leases and warranty terms

19 Restaurant Life Cycle Management Solution Overview Lease Administration Track and manage real estate contract obligations Receive notifications and alerts about upcoming critical dates, expirations, required actions, and contract options Store all documentation and financial transactions in one repository

20 Restaurant Life Cycle Management Solution Overview Lease Accounting o Manage rent calculations, payment processing/adjustments, and payment allocations o Provide standard FASB reporting for both capital and operating leases o Replaced spreadsheets in accounting plus 20 spreadsheets in other departments

21 Why TRIRIGA for Lease Accounting? Lease Accounting Challenges: Need for strategies to best manage Balance Sheet impact of leases Variation in adoptions of new standards Need for a solution to provide the analytics required in order to conduct validations and financial reviews FASB/IASB lease classification diverged from initial exposure draft

22 Why TRIRIGA for Lease Accounting? TRIRIGA Solutions: Calculates the Net Equity on the balance sheet within both Finance and Operating schedules Offers flexible, global settings that capture the adoption period, two-year look-back period, accounting standard, and many other key attributes Supports Straight-Line Rent, Amortization Schedule or the ASC 842 and IFRS 16 Finance and Operating Schedules Differentiates Gross Leases from Triple Net and other lease types by capturing the portion of the rent attributable to nonrent components on gross leases

23 Next Steps for Lease Accounting Implementation System Upgrade ASC 842 Implementation Currently in nonreal estate contract review Our Goal: Start the dual reporting period next fiscal year

24 Bringing in a New System - The Do s & Don ts DO o Be prepared know your portfolio o Hire a 3 rd party abstracting company it s well worth the cost o Know what fields trigger calculations or other actions within the system o Include as much information as possible in the templates when initially loading data into TRIRIGA o Be open to process changes and how to run the business o ASK QUESTIONS DON T o Customize (try to stay out of the box as much as possible) o WAIT UNTIL THE LAST MINUTE!

25 Next Steps - Mobile Services On-The-Go Requests On-The-Go Inspections On-The-Go Projects On-The-Go Work Orders & PMs Time Entry Asset Management Facility Requests Incident Reporting Reservations Condition Assessment Space Audits Asset Inspections Project Schedules Project Budgets Project Documents

26 Questions?

27 THANK YOU! Contact Us for more information InterConnect 2017 Sanjiv Paul Singh, AIA, LEED-AP ecifm Solutions Inc. Barry Smith Sonic Drive-In Ronda Boles Sonic Drive-In