Copenhagen's popular restaurant group harnesses their data with BI in the cloud
Madklubben is one of Copenhagen’s fastest growing restaurant chains. The company’s rapid expansion to 10 locations throughout Greater Copenhagen in recent years quickly outdated the leadership team’s old system of examining data within Excel spreadsheets to track key indicators and maintain an overview of the organization.
With a continuously expanding number of variables at play, Madklubben needed a strategic system to harness the data related to their business such as raw material costs, building rents, and employee salaries in order to make better, more informed decisions. So they turned to TARGIT Decision Suite implemented on top of Microsoft Azure.
During a period when many of Copenhagen’s restaurants are showing red, Madklubben founder Anders Aagaard believes his restaurants have hit a sweet spot in Copenhagen’s dining scene with their unpretentious atmosphere and high-quality food at reasonable prices. Today, Madklubben caters up to 750,000 diners each year, with reservations booking up far in advance.
But as every good restarauntuer knows, business can turn on dime. A change in the economy, for example, or a shift in the cost of raw goods or fuel could mean a big dip or swell for Madklubben. With mounting pressure to stay on top of the game, Madklubben CFO, Steffen Tang Lystbæk, knew TARGIT Decision Suite was the tool they needed to measure and monitor both internal and external metrics.
Why TARGIT on Azure?
Traditional BI projects require tremendous system and financial investments from the get go. But Madklubben needed to get up and running quickly with a business intelligence solution that didn’t break the bank. According to Lystbæk, TARGIT Decision Suite on Microsoft Azure was the perfect match.
With TARGIT on Azure, Madklubben takes advantage of all of TARGIT’s robust data discovery tools, simple self-service business analytics, comprehensive reporting, secure data governance, and stunning dashboards in a single, integrated solution all in the cloud.
With their BI running in the cloud, Madklubben didn’t need any hardware or locally installed software. All data was transferred from the company’s legacy system and placed into Microsoft Azure’s secure cloud solution. From there, employees were working in TARGIT Decision Suite within a month of the first day of implementation.
The low initial investment paired with rapid implementation meant Madklubben was seeing ROI almost instantly. Plus, TARGIT on Azure’s flexible setup matches the restaurant’s unique needs today and in the future, no matter what's in store.
Cooking with gas
Before TARGIT Decision Suite, Lystbæk had to travel to each Madklubben restaurant to collect cash register receipts. Those days seem like the Stone Age compared to the efficient system now in place that gives every company decision maker a complete overview of the restaurants’ financial health.
“TARGIT and Azure run directly up against our cash register solution, and that means that we always have a snapshot of how much money the restaurants spend and make,” explains Lystbæk. “That way we can benchmark [locations] against each other, and we can quickly react if one of the restaurants has suddenly too many raw material purchases, increasing labor costs, or high waste percentages. That means that we always know how we're doing. It’s essential in this business.”
In addition to finance, the company also uses TARGIT Decision Suite on Azure to adjust wine and food selections on the seasonally rotating menu.
“We could see that the visitors' buying patterns required a small adjustment of the products we have on the shelf,” says Lystbæk. “We have both meatballs and lasagna on the menu again quite simply because we could see in TARGIT that there were more visits on days those items were offered in some of the restaurants. This is intelligent use of IT.”
If you’re a regular in the Copenhagen restaurant scene, it’s likely you’ve visited Madklubben, Tony's, Gran Torino, Hanzo, or one of the six other successful restaurants in the Madklubben empire. The magic of a good restaurant is what happens behind the scenes. And Madklubben hopes that TARGIT Decision Suite plays an increasing role in the decisions made in the kitchen and beyond.
“If for example, we bought a large amount of salmon, lobster, or champagne, it must of course be sold as soon as possible,” says Lystbæk. “Our plan is to start using TARGIT Storyboards so our waiters and kitchen staff will be notified in real-time about the seasonal products we are focusing on right on screens inside the kitchen. We would also like to communicate directly to the restaurants when we can see that a certain day is historically busy, or if we know that a large cruise ship is visiting Copenhagen. In this way, we expect to be using TARGIT very actively in our internal communication going forward.”