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					        Restaurant Efficiency Decision
            Artificial Intelligence
                    Prototype Demonstration
                          May 5, 2008




November 19, 2012                             1
                               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

November 19, 2012                        2
   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.


   INTRODUCTION


November 19, 2012                                                              3
       As a manager do you ever




November 19, 2012                 4
             Get Complaints About




November 19, 2012                   5
                    Or Hear About




November 19, 2012                   6
                    Then you




November 19, 2012              7
                    Industry Statistics




November 19, 2012       http://www.restaurant.org/research/ind_glance.cfm   8
                    Industry Growth




                         • 164 each day

                         • $400,000 Average Startup cost




                         Based on new requests for business
November 19, 2012                                             9
                                   licenses 2007
            But there is a Problem


                                      Staff
                          Menu




                                        Customer
                                          Flow
                          Inventory




November 19, 2012                                  10
   Historically Common Failure




November 19, 2012                11
         What causes this Failure




November 19, 2012   Business weekly (May 2007)   12
         Organization of the Data




November 19, 2012                   13
                    RED AI




November 19, 2012            14
   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


November 19, 2012   www.gecconsultants.com/restaurant_profit.htm   15
   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.


   RED AI PROTOTYPE
   DEMONSTRATION

November 19, 2012                                                         16
                    The Actors

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




November 19, 2012                                       17
        Come on in and sit down




November 19, 2012                 18
                    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.
November 19, 2012                                    19
                    Manager’s 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%


November 19, 2012                                    20
                    Matt’s 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….




November 19, 2012                                  21
                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.
November 19, 2012                                22
            Mike from the Freezer
• [dishes crashing!!!]
• [Mike comes in and rants at Pat]
• Mike – Oh my God, I’m 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 they’re only going to
  leave $10 in tips! For the love of Christ, I hired
  you to manage this restaurant! Now you’d . ..

November 19, 2012                                  23
              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?



November 19, 2012                               24
        Super Dave “Root” Harris
• [Dave appears] – I have a solution
• Mike and Pat together – Who are you?
• Dave – I’m 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]


November 19, 2012                                 25
           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.




November 19, 2012                             26
                    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.

November 19, 2012                               27
                RED AI is Self Aware
• Dave – Okay, let me setup RED AI for you. The
  first thing we’ll do is select a database that
  already contains a template of a sub shop, like
  you have here. Then we’ll setup your user
  accounts.
• [Dave switches to blank database and begins
  creating user accounts]


November 19, 2012                               28
    Keep It Simple Stupid (KISS)
• Dave – I’ll keep your usernames and
  passwords simple. Your username is “owner”
  and your password is “o”. Your manager’s
  username is “manager” and his password is
  “m”. Your back-end manager’s username
  “back” and his password is “b”. And your
  front-end manager’s username is “front” and
  his password is “f”.

November 19, 2012                               29
                    Get Pat Back Here
• Dave – Now run along and get your restaurant
  manager.
• Mike – What?
• Dave – You heard me just fine.
• Don’t talk to me like that. Haven’t you heard
  of customer service.
• Dave – We don’t believe in customer service
  at RED AI. We believe in our product.
November 19, 2012                             30
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 – What’s this?



November 19, 2012                               31
         Pat is Online with RED AI
• Dave – This is RED AI, the restaurant efficiency
  suite. I’m going to help you get acquainted
  with it. I’ll show you how to log in and enter
  your menu and schedule staff. First, you want
  to login as “manager”. You’re password is
  “m”.
• [Pat logs in]


November 19, 2012                                32
            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.

November 19, 2012                            33
                    Poll for New Subs
• Alex – We’re 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.

November 19, 2012                                      34
                    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]


November 19, 2012                                35
  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.

November 19, 2012                                   36
                    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 doesn’t work man.
November 19, 2012                            37
           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]



November 19, 2012                                 38
                    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 shouldn’t be hard to do.
• Now go get Brian. I need him to come here to
  update the sales information.
November 19, 2012                               39
         Frontend Does His Thing
• [Matt leaves and Brian enters]
• [Brian logs in as “front” with password “f” and
  enters sales with Pat’s 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]

November 19, 2012                                   40
                    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.
November 19, 2012                             41
            Unusual Input Noticed
• [Pat runs service efficiency and sees unusual
  input]
• Pat – Huh. What’s 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?

November 19, 2012                                 42
 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.
November 19, 2012                                    43
               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 DON’T     EDIT JUST YET]

November 19, 2012                                  44
               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. I’ll talk to the
  owner tomorrow about the rest of this stuff, I'm
  tired.
November 19, 2012                                       45
            Stating the Obvious
          mod(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]



November 19, 2012                                 46
  Sleeping In His Clothes Agian
• [Mike enters]
• Pat – Good morning, boss. Did you sleep in
  your clothes again last night?
• Mike – What’s that?
• Pat – It’s when people lose consciousness at
  night and dream. But that’s not important
  right now. I was looking at this program last
  night and it has some suggestions for . . .

November 19, 2012                                 47
                    More Random Talk
• Pat – for improving the efficiency of our
  restaurant.
• Mike – Does this mean I won’t 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]



November 19, 2012                              48
                    Inventory Efficency
• Pat: According to this we have one item that’s
  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 . . .

November 19, 2012                                 49
           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.


November 19, 2012                                       50
                    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 don’t 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.


November 19, 2012                                51
         No…So lets Edit the Rule
• Mike – No, we don’t need it. But what can we
  do?
• Pat – Well, I was taking a look at the manual
  last night and it’s possible to edit the rules
  that are responsible for these suggestions.
• Mike – How?
• Pat – I have to logout and you login as
  administrator.

November 19, 2012                              52
                    Edit the Rule
• Mike – Okay, let’s see. . . Settings, manage rule
  sets. That came up under inventory efficiency,
  didn’t it?
• Pat – Yep
• Mike. Okay. Well, this isn’t exactly intuitive,
  but if I change this to a 2.5, this to a 3.5, and
  this to 250, I think we’re good to go.


November 19, 2012                                 53
       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, we’ll change that later. What
  other suggestions did the program make?
November 19, 2012                              54
                    Bad Girl
• Pat – Close that and click on service efficiency.
• Mike – Looks like our wait staff is inadequate.
  Let’s see what that means. They were only
  pulling in 8% in tips. Let’s fire them.
• Pat – One of the waiters has a pregnant
  fiancée.
• Mike – Well, that’s exactly his problem then,
  isn’t it?

November 19, 2012                                 55
                    USPS
• Pat - It could be our problem. He’s a former
  postal worker. Besides, yesterday was sort of
  a bad day because of the roofers.
• Mike - Okay, you’re right. Still, we ought to
  train them. What do the other messages say?
• [clicks on add waiter then the date]



November 19, 2012                             56
           Owner’s last Statement
• Mike: According to this, we should add a
  waiter because of the low tip percentage.
  Let’s 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]


November 19, 2012                               57
                    Closing
• Alex – Now that RED AI is in place Sub Haus
  has gone from a failing…low
  margin…inefficient mess to a well managed
  and profitable restaurant.

• All for the low price of 100/month.



November 19, 2012                               58
   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


   QUESTIONS – PROTOTYPE


November 19, 2012                                                          59
   In this section the organization, budget, and work to be done for phase
   two will be discussed




   SMALL BUSINESS INNOVATIVE
   RESEARCH (SBIR) PHASE II

November 19, 2012                                                            60
Very High Level Work Breakdown




November 19, 2012                61
                    Organization




November 19, 2012                  62
                    Budget Line Items




November 19, 2012                       63
                    Final Request




November 19, 2012                   64
                    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

November 19, 2012                                                                         65
                    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/




November 19, 2012                                       66
    Please ask us questions related to the following topics:
    •The budget
    •Work break down
    •Organization

   QUESTIONS – SBIR


November 19, 2012                                              67

				
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