Fukushin Implements HANZO Cost Analysis for Enhanced Efficiency

Fukushin, a popular restaurant chain based in Tokyo's Toshima district, has recently integrated HANZO Cost Analysis into its operations. Developed by Goals Inc., this technology aims to enhance the efficiency of food procurement and simplify the ordering process within the establishment's 30 locations. Since implementing HANZO Automatic Ordering in January 2022, which utilizes AI for inventory management, Fukushin has achieved appropriate ordering levels, reducing stockouts and minimizing waste.

The introduction of HANZO Cost Analysis comes as a strategic move to further optimize ingredient sourcing and improve cost transparency. Before this implementation, the company was already calculating theoretical and actual costs per store, based on standard costs set for each menu item. However, they faced several challenges that limited the scope of their cost analysis:

1. Frequent price fluctuations of ingredients due to market volatility.
2. Seasonal menu changes often requiring adjustments in ingredient sourcing.
3. Resource constraints made it difficult to analyze cost differences for more than five primary items.
4. Sharing data through spreadsheets was cumbersome, hindering the timely updating of information.

The HANZO Cost Analysis platform addresses these challenges by linking menu recipes and sales management data—including sales figures and POS data—along with purchasing and inventory information. This integration allows for the real-time visualization of theoretical versus actual costs, providing clarity on whether discrepancies arise from variances in ingredient usage at the store level or fluctuations in purchase prices.

As a result of this new system, Fukushin is now able to identify cost variances for a broader range of items, allowing for more comprehensive improvement initiatives. Moreover, the ongoing use of HANZO Automatic Ordering means that the restaurant can conduct daily variance analysis based on theoretical inventory data, which is akin to virtual stocktaking. This capability allows management to monitor the effectiveness of their improvement initiatives and gauge their implementation on the ground promptly.

Goals Inc. remains committed to expanding the HANZO suite of technologies, assisting Fukushin in achieving its goal of low-cost operations while enhancing customer satisfaction. This collaboration signifies an important step toward optimizing head office-driven store operations and ensuring robust cost management practices.

For those interested in learning more about this beneficial partnership, a dialogue between Fukushin's CEO Jun Takahashi and Goals' COO Masaaki Watanabe has been published. They discuss the realities of adapting to skyrocketing ingredient costs and emphasize the critical need for effective cost analysis endeavors. Read the full interview here: Fukushin and Goals Dialogue.

The HANZO Cost Analysis tool is designed to automate the collection and aggregation of data pertaining to ingredient costs, standard inventory, menu recipes, and sales management. By visualizing the differences in theoretical and actual costs, this program helps to clarify cost discrepancies and identify areas for improvement. The interface enables stores to view cost variances by rank according to predefined thresholds, facilitating more nuanced evaluations of operational efficiency based on these metrics.

Similarly, the HANZO Automatic Ordering service leverages AI to predict sales based on weather patterns and recent ordering trends, calculating precise order quantities accordingly. This automation not only shortens ordering time but also mitigates the risks of food shortages and overstock, reducing stress for staff and minimizing food waste. Learn more about the HANZO Automatic Ordering system here: HANZO Automatic Ordering.