Flippin’ Burgers, Flippin’ Jobs: Two Outsourcing Models

• Author: Amitai Givertz
• Posted: April 4, 2007
• Category: Recruiting, Workforce Planning, Business Matters
• Tags: No Tags
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Last November it was widely reported that a number of fast food franchises – Burger King, Panda Express and Wendy’s among them — had outsourced their drive-thru operations to a MA-based outfit, Exit41, Inc. The company bills itself as the “next generation restaurant of ordering solutions.” I remember hearing about it on the radio.

In short, when you place your order at a growing number of fast food drive-thru locations around the U.S. your order is taken and keyed-in at a call center, conceivably thousands of miles away. The business case for this outsourcing model is compelling: increased drive-thru capability by as much as 25%; improved customer satisfaction and loyalty; decreased food costs, yada-yada. It makes sense to me.
 
On closer examination though, this innovative approach raises some interesting questions as it relates to one of the underlying factors for success: the “human element.”
 
Why no mention of the impact of this outsourcing solution on staffing costs either on Exit41’s site or the industry press? Perhaps the expense of implementing the solution and the potential savings in recruitment costs is a wash. But the increase in productivity to be expected by improving workplace conditions should be easy enough to measure. Fewer screaming and agitated customers might have an effect on retention rates too, no?

One would think that as Exit41’s business grows — and the need to staff grows with it – they should be giving some thought to how they are going to compete for associates in an already tight market for call center staffing — and this is a 24/7 operation, right? I wonder if the planners at Exit41 know that turnover rates in call centers are comparable to the quick service restaurant business, sometimes higher. I wonder if they know that it doesn’t have to be like that.
 
And, what about the workforce planning angle? If you consider the total number of drive-thru transactions in any one day, how many calls does that represent – how many candidates, agents and managers would be needed – if Exit41 had a 0.001% market penetration growing at a rate of 20% a year with a 25-40% turnover of staff?

That is not to suggest the company doesn’t have a workforce plan and smart recruitment strategy. I don’t know if they do or don’t. But looking at their site, it seems a shame to lose the opportunity to engage potential recruits in the same way they engaged me. Exit41 has a great story to tell and they should be telling it to all of their constituents — new hires and employees alike.

If Exit41 has not already started they should be developing an integrated approach to employment branding, tracking applicants, building private talent pools, selecting the best available hires, keeping and growing their top performers. Surely, increasing call-handling capability by as much as 25%; improved customer satisfaction and loyalty; decreased staffing costs — yada-yada — makes sense. What better time than now?

Exit41 is a unique business in many respects yet so typical in others. It seems that they are sinking the lion’s share of resources into developing, marketing and selling its products and virtually nothing on marketing and selling the company to the very people on which their value proposition ultimately rests. Like so many innovative businesses that are a disruptive force in their industry, how much of what is possible will be lost to poor execution?

There are two models for outsourcing here:

• The Exit41 model that takes the weakest link in their customers’ supply chain and makes it one of the strongest.
• RCI Recruitment Solutions’ model that can do the exact same thing for you.

Think about it: How different are Exit41 from you; in what ways are they the same?