Restaurant Efficiency Decision Artificial Intelligence

1
Restaurant Efficiency Decision Artificial
Intelligence

• Prototype Demonstration
• May 5, 2008

2
Outline

• Introduction
• The Problem
• The Solution
• Prototype Demonstration
• The Actors
• Setup
• Taking the Data
• Massaging the Data
• Questions On the Demonstration
• Phase II Grant Proposal
• Work Breakdown
• Organization
• Line Item Budget
• Final Request
• Closing and Final Questions

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Introduction

• This section will describe the basic problem that
  RED AI was developed to solve. Also the basic
  process that RED AI uses to solve the problem
  will be discussed.

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As a manager do you ever
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Get Complaints About
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Or Hear About
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Then you
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Industry Statistics
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Industry Growth

• 164 each day
• 400,000 Average Startup cost

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But there is a Problem
Staff
Menu
Customer Flow
Inventory
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Historically Common Failure
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What causes this Failure
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Organization of the Data
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RED AI
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Current Consultant Statistics

• 63 of restaurants hire at least one efficiency
  expert over their life time
• Average cost for this service is 80,000
• Average Return on Investment is nearly 120,000

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RED AI Prototype Demonstration

• In this section the RED AI Team will demonstrate
  the problem and the solution of an inefficient
  restaurant solved by RED AI with audience
  participation.

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The Actors

• Narrator Alexander
• Owner Michael
• RED AI Admin David
• Manager Patrick
• Backend Mathew
• Frontend Brian

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Come on in and sit down
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Welcome

• Alex Let me set the scene for you... We are
  in Sub Haus a local sandwich shop
• Brian gives out menus
• Alex Sub Haus is the type of restaurant that
  RED AI is targeting non-franchised, and
  struggling
• We start in the managers office with him busily
  working at his desk.

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Managers desk

• Pat begins shuffling paperwork
• Alex It is the middle of the day and the
  manager, Bill L, is still working on last weeks
  closing paper work.
• Brian brings out more paperwork
• And the data just keeps piling up.
• Brian - Our sales are down by 20

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Matts first line ?

• Matt comes in with more paperwork
• And higher
• Matt - I need your signature for this order.
• Matt takes it away as soon as pat signs
• Pat Wait what was.

22
Explain the problem

• Alex So, high he has no time to even read what
  he is deciding about. Again this is the classic
  problem that leads to 60 of all restaurants to
  fail.
• The manager is too busy managing the data, to
  manage the restaurant.

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Mike from the Freezer

• dishes crashing!!!
• Mike comes in and rants at Pat
• Mike Oh my God, Im back in the freezer with
  the hostess and I come out and the cooks are
  having a food-fight! 200 people are going to
  come here today and theyre only going to leave
  10 in tips! For the love of Christ, I hired you
  to manage this restaurant! Now youd . ..

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Who can Save this?

• Mike and Pat freeze
• Alex The owner is unhappy with the performance
  of the restaurant. So, is the manager, but he is
  too busy to manager the restaurant efficiently.
  Where can they turn to? Who can save them?

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Super Dave Root Harris

• Dave appears I have a solution
• Mike and Pat together Who are you?
• Dave Im a traveling RED AI salesman with a
  software product that can turn your business
  around. Do you have a computer handy?
• Mike Right here
• Dave starts to install RED AI

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Expert System RED AI

• Alex RED AI is an expert system artificial
  intelligence designed to model an operational
  restaurant, analyze key profit factors, and
  provide managers and owners with suggestions to
  increase profit.

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Parse the Rules

• Alex As we stated in the introduction, RED AI
  does this by recording historical data and
  combining that with expertly prescribed rules to
  create suggestions. These suggestions come from
  one of the four key profit factors. These
  suggestions will take the piles of data and
  produce easy to understand and implement
  suggestions.

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RED AI is Self Aware

• Dave Okay, let me setup RED AI for you. The
  first thing well do is select a database that
  already contains a template of a sub shop, like
  you have here. Then well setup your user
  accounts.
• Dave switches to blank database and begins
  creating user accounts

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Keep It Simple Stupid (KISS)

• Dave Ill keep your usernames and passwords
  simple. Your username is owner and your
  password is o. Your managers username is
  manager and his password is m. Your back-end
  managers username back and his password is
  b. And your front-end managers username is
  front and his password is f.

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Get Pat Back Here

• Dave Now run along and get your restaurant
  manager.
• Mike What?
• Dave You heard me just fine.
• Dont talk to me like that. Havent you heard of
  customer service.
• Dave We dont believe in customer service at
  RED AI. We believe in our product.

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No More lip Just Get Him Back

• Dave Now run along and get your manager before
  I leave you here floundering in a sea of
  inefficiency and looming bankruptcy.
• Mike calls to pat
• Pat enters
• Pat Whats this?

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Pat is Online with RED AI

• Dave This is RED AI, the restaurant efficiency
  suite. Im going to help you get acquainted with
  it. Ill show you how to log in and enter your
  menu and schedule staff. First, you want to
  login as manager. Youre password is m.
• Pat logs in

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Access Control is Good

• Alex - Notice how the settings tab is now gone.
  As this is only available to administrative
  users, like the owner and salesman. Also as we
  go along here in this demonstration notice how
  each different type of use has different access
  levels.
• We already have the club sandwich and the items
  for it already in the inventory.

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Poll for New Subs

• Alex Were going to put two more menu items in
  right now. One will be from the menu in front of
  you. And one of your choice that will include
  inventory items not listed on the provided menu.
• Alex polls and Pat and Dave input the data
• Remaining 3 which one?
• Custom Name and price. Then inventory items.

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Schedule Staff

• Alex Now the manager has to schedule staff. He
  enters the date and time periods.
• Pat starts to schedule staff do the TID
• Alex - After clicking the next button, he enters
  the number of people scheduled for each position.
• Pat Finishes scheduling staff

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Sub Haus is Ready to Rumble

• Pat Alright, this seems fairly intuitive. I
  think I can take it from here.
• Dave leaves
• Pat leaves
• Alex - Let us pretend, for this demonstration, a
  whole day has now passed. At the end of the
  shift, the back end manager has come in to update
  the inventory.

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Bad Password

• Pat and Matt enter
• Pat Matt, get in here. Are you done cooking?
• Matt Yes
• Pat Come here. I want to show you this new
  program. Login as backend with password b.
• Matt Um that doesnt work man.

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Backend does his thing

• Pat Oh, sorry my bad try logging in as back
  with password b
• Matt Ok, that works
• Pat - Now update the inventory by clicking on the
  Update Inventory button
• Matt updates inventory while Alex talks

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Talk About Stuff

• Alex - All the current items in the inventory
  are listed here. All our back-end personnel has
  to do is click on each blank and enter the amount
  in the stock for that item.
• Pat Okay good. You will have to do this at
  close from now on.
• Matt - It shouldnt be hard to do.
• Now go get Brian. I need him to come here to
  update the sales information.

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Frontend Does His Thing

• Matt leaves and Brian enters
• Brian logs in as front with password f and
  enters sales with Pats help
• Brian and Pat enter sales and talk about it
• Brian leaves
• Alex The manager has finished closing for the
  day. All data has been inputted to RED AI for
  daily processing.
• Reference MFCD on side TV

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Menu Efficency

• Alex Now with our product, instead of going
  through those enormous piles of data, he can
  review it from RED AI with the click of a button.
• Pat runs menu efficiency and sees suggestion for
  popular data
• Alex In the description we see a suggestion
  that the manager can clearly see and understand.

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Unusual Input Noticed

• Pat runs service efficiency and sees unusual
  input
• Pat Huh. Whats this.
• clicks on unusual input and calls Brian
• Pat - Brian, come back here and bring your record
  sheet. This program says we entered something
  wrong.
• Brian Hello, oh hi boss.
• Pat Did we really have a wait time of 103
  minutes today?

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Call for Brian to Find Out Why

• Brian - No, today was actually a slow day. Why
  what time said that?
• Pat say time period
• Brian oh no it let me check my sheet here. On
  it was only 13 minutes sorry.
• Pat Okay I will fix it now and we will have to
  have a talk in the morning about this.
• Brian okay, bye.

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Going to the Edit Tab

• Pat Okay, lets see what we can do with this
  edit tab.
• Pat go to edit tab
• Alex It is possible to edit any of the data in
  the RED AI database with the screens displayed by
  the edit tab.
• Pat go to edit tab DONT EDIT JUST YET

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Fixing the Data (edit)

• Alex - In this instance, our restaurant manager
  will click the Edit Customers button and fix
  the erroneous data.
• Pat correct error and close RED AI
• Wait let me just check that that did something
• Restart RED AI and do Service Efficiency again
• Okay, that seems to have fixed it. Ill talk to
  the owner tomorrow about the rest of this stuff,
  I'm tired.

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Stating the Obviousmod(Data) mod(output)

• Pat Clearly editing the data effects the rules.
• Pat leaves
• The manager is now finished for the day and goes
  home. The night passes without incident. And
  RED AI is ready for the new day.
• Pat enters

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Sleeping In His Clothes Agian

• Mike enters
• Pat Good morning, boss. Did you sleep in your
  clothes again last night?
• Mike Whats that?
• Pat Its when people lose consciousness at
  night and dream. But thats not important right
  now. I was looking at this program last night
  and it has some suggestions for . . .

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More Random Talk

• Pat for improving the efficiency of our
  restaurant.
• Mike Does this mean I wont end up living in a
  van down by the river?
• Pat Maybe. Sit down and take a look at this.
• Pat pulls up menu efficiency

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Inventory Efficency

• Pat According to this we have one item thats
  significantly more popular than another. See, it
  lists the item off to the right when you click on
  popular item and then you click on ______ and,
  according to this, 78 were sold to 148 customers.
• Mike That sounds good to me. Hey, it says we
  should raise the price. How much does . . .

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How Much Does it Cost

• Mike a ____ cost?
• Pat - _____
• Mike We can probably go up to _____
• Pat opens inventory efficiency
• Pat It says that our profit margin is low for a
  club sandwich, that we should raise the price to
  7.80.

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Should We Raise it

• Mike Do you think people would pay 7.80 for a
  club sandwich?
• Pat - Maybe, but probably not.
• Mike Well, would you?
• I dont eat here. I go across the street to Chez
  Sub for lunch. It seems high to me though. And
  do we really need a 300 profit margin.

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NoSo lets Edit the Rule

• Mike No, we dont need it. But what can we do?
• Pat Well, I was taking a look at the manual
  last night and its possible to edit the rules
  that are responsible for these suggestions.
• Mike How?
• Pat I have to logout and you login as
  administrator.

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Edit the Rule

• Mike Okay, lets see. . . Settings, manage rule
  sets. That came up under inventory efficiency,
  didnt it?
• Pat Yep
• Mike. Okay. Well, this isnt exactly intuitive,
  but if I change this to a 2.5, this to a 3.5,
  and this to 250, I think were good to go.

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Mod(rule) mod(output)

• Mike Okay, now it says we can raise the price
  to 6.83 to realize a 250 profit margin. How
  much does a club sandwich cost now?
• Pat - 6.15
• Mike - Do you think people would pay 6.83?
• Pat Seems reasonable to me. So changing the
  Rule also effects the output.
• Mike Okay, well change that later. What other
  suggestions did the program make?

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Bad Girl

• Pat Close that and click on service efficiency.
• Mike Looks like our wait staff is inadequate.
  Lets see what that means. They were only
  pulling in 8 in tips. Lets fire them.
• Pat One of the waiters has a pregnant fiancée.
• Mike Well, thats exactly his problem then,
  isnt it?

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USPS

• Pat - It could be our problem. Hes a former
  postal worker. Besides, yesterday was sort of a
  bad day because of the roofers.
• Mike - Okay, youre right. Still, we ought to
  train them. What do the other messages say?
• clicks on add waiter then the date

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Owners last Statement

• Mike According to this, we should add a waiter
  because of the low tip percentage. Lets just do
  that instead of the training. The last thing I
  need is to pay them to watch videos on how to be
  a better server, especially with our low employee
  retention rate.
• Exit all that are left 

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Closing

• Alex Now that RED AI is in place Sub Haus has
  gone from a failinglow margininefficient mess
  to a well managed and profitable restaurant.
• All for the low price of 100/month.

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Questions Prototype

• Please ask us questions related to the following
  topics
• The demonstration today
• The development of RED AI and feasibility of RED
  AI
• Please hold and question about the SBIR till
  after the next section

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Small business innovative research (SBIR) phase ii

• In this section the organization, budget, and
  work to be done for phase two will be discussed

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Very High Level Work Breakdown
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Organization
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Budget Line Items
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Final Request
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Thank you from the RED AI TEAM

• Alexander Caulkins Project Manager
  Matthew Crainer - Researcher
• Brain T Documents Specialist Michel J
  Rule Coder
• David Harris Support and Marketing
  Patrick B Free Thinker

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RED AI Links

• Main website (CS 410)
• http//www.cs.odu.edu/cpi/cpi-f2007/redai/
• Prototype Website (CS 411)
• http//www.cs.odu.edu/cpi/cpi-2-s2008/redai/

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Questions SBIR

• Please ask us questions related to the following
  topics
• The budget
• Work break down
• Organization