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InterConnect2017
Complete Restaurant Life Cycle Management
at
SONIC Drive-In with TRIRIGA
Presented by:
Sonic Drive-In Barry Smith, Director, Fixed AssetsRonda Boles, Manager, Fixed Assets
eCIFM Solutions Inc.Sanjiv Paul Singh, AIA, LEED-AP
1. Introductions
2. Overview & Experience
3. Case Study: Sonic Drive-InA. OverviewB. Goals C. Challenges
4. Restaurant Life Cycle Management Solution A. Project Overview B. Features & FunctionalityC. Why TRIRIGA D. Do’s and Don’ts
E. Next Steps
5. Questions & Answers
Introductions
Barry SmithDirector, 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 BolesFixed Asset Manager
o Implemented IBM TRIRIGA software platform for lease management
o 10 + years experience in Sonic financeo 5 + years of real estate accounting o MBA from Oklahoma Christian Universityo Bachelors degree in accounting from Oklahoma
State University
Introductions
Sanjiv Paul Singh, AIA, LEED APExecutive Vice President
o Licensed Architecto 30+ years of industry experience with a large portfolio of
successful TRIRIGA implementationso Creator of eCIFM’s innovative Mobile solution On-The-Goo Former V.P. of Peregrine Systemso Prof Services Manager at ARCHIBUS
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, 2nd year in a row NASA Office of Small Business Programs Customers in every major industry
eCIFM Solutions - Corporate Overview
Core Services
Premier IBM Business Partner
System Implementation Cloud & Hosting Solutions 24 x 7 Technical SupportRE & FM Consulting CAD Support Mobile SolutionsTRIRIGA Upgrades TRIRIGA Enhancements On or Off Site Training
Learn more about TRIRIGA and eCIFM https://youtu.be/ShOMGT_3xL0
Case Study: Sonic Drive-In
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
About Sonic Drive-In
3,557 Drive-Ins across 45 states
350 corporate employees
Serving more than3 million customers
every day
SALES$1,284,000 average unit sales
(FY16)
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 poolso gives away enough mints to reach the top of the Empire State Building and back to the
ground…5,000 times.
Fun Facts
Restaurant Life Cycle Management with TRIRIGA
Sonic Drive-In
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
Challenges:
o Disconnection of processes between departments
o Complicated diverse lease portfolio
o Cumbersome Reporting Abilities
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
Our Challenge: Visibility Across All Departments
Lower overall cost of operations & systems
Desire for warrants, project and asset tracking consistency
Increased analytical reporting
Real Estate Managers can identify
optimal sites based on market planning objectives and sales
forecasting tools
Project Managers can see increases project efficiency by automating and
coordinating processes, purchase orders and invoices from a central location and schedule
Compliance/Risk /Governance can see
instant and accurate insight into details to ensure regulatory
compliance and mitigate risk
Executives have visibility and control across the organization
through common systems to improve efficiency across
departments to executive strategic objectives
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 Managerscan see costs and orders enterprise-wide for price
comparisons, discounting, standardization and order tracking
Lease Administrators
can track and manage real estate contract obligations and store all related lease
information in one repository
Operations Managerscan see restaurant conditions in sufficient detail to ensure each store is maintained in a manner that supports brand objectives
Lease Accountantscan track and manage large
quantities of lease payments and ensure latest FASB 13
compliance for both capital and operating leases
Desire for warrants, project and asset tracking consistency
Goals for a New System at Sonic Drive-In
Complete single portfolio view
Ease of use & accessibility over the web
Accountability across all departments
Lower overall cost of operations & systems
Desire for a solution that is ASC 842 Lease Accounting Compliant
Increased analytical reporting
Restaurant Life Cycle Management Solution Overview
MARKET PLANNING & SITE SELECTION
Portfolio ManagerTransaction Manager PROJECT
MANAGEMENTBudgeting
ProcurementProject Planning
Construction ManagerArchitect/Design
LEASE ADMINISTRATION
Real Estate ManagerLease Administration
LEASE ACCOUNTING
Real Estate Finance
FASB Reports
RESTAURANT FACILITY
MANAGEMENT Contact Center Maintenance
Equipment Repair
Market Planning &Site Selection
Restaurant Life Cycle Management Solution Overview
o Integrates market and financial management data
o Tracks site selection activity and communication between teams
o Automates Site proposal creation and approval process
Budgeting
Restaurant Life Cycle Management Solution Overview
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)
ConstructionConstructionManagement
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
Restaurant Life Cycle Management Solution Overview
Restaurant Restaurant FacilityRestaurant Restaurant FacilityFacilityManagement
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
Restaurant Life Cycle Management Solution Overview
LeaseLeaseAdministration
• 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
Restaurant Life Cycle Management Solution Overview
LeaseLeaseAccounting
o Manage rent calculations, payment processing/adjustments, and payment allocations
o Provide standard FASB reporting for both capital and operating leases
o Replaced 50 – 60 spreadsheets in accounting plus 20 spreadsheets in other departments
Restaurant Life Cycle Management Solution Overview
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
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 non-
rent components on gross leases
Next Steps for Lease Accounting Implementation
System Upgrade ASC 842 Implementation
Currently in non-real estate
contract review
Our Goal: Start the dual
reporting period next fiscal year
Bringing in a New System - The Do’s & Don’ts
DO
o Be prepared – know your portfolio
o Hire a 3rd 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!
Next Steps - Mobile
Services On-The-Go
Work Orders & PMsTime Entry
Asset Management
Requests On-The-Go
Facility RequestsIncident Reporting
Reservations
Inspections On-The-Go
Condition AssessmentSpace Audits
Asset Inspections
Projects On-The-Go
Project SchedulesProject Budgets
Project Documents
Questions?
InterConnect2017
THANK YOU!
Contact Us for more information
Sanjiv Paul Singh, AIA, LEED-APeCIFM Solutions [email protected]
Barry SmithSonic [email protected] BolesSonic [email protected]