LP Magazine

JUL-AUG 2018

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

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from audit scores to past cases to food loss to voids to chargebacks to turnover rates and building risk models with that. In the past, CKE looked at those things separately, but as we know as practitioners, we gain a lot more insights putting them together and looking at that total picture. We found it necessary to break out Carl's Jr. as a separate entity from Hardee's when doing that type of data analysis because the shrink problems, food loss problems, safety problems are different in both locations. There are drivers, for instance, on food loss in a Hardee's environment that's being driven by certain products, mainly biscuits and the way we do buns. In the Carl's Jr. environment, it's not as centric for breakfast, so there's less food loss as it relates to those items. EDITOR: Risk management is not always an area most LP executives manage directly. How have you handled that responsibility? JONES: One of the reasons this job was very appealing to me is I've never managed the risk management function. I've managed safety but not risk. So I was excited to be able to learn a new discipline. I had several industry friends help me prepare for that. Leo Anguiano spent several days with me talking about how to think about risk. Maurice Edwards spent time with me discussing risk and total cost of risk. I appreciate that people were very generous with their time. Also, internally we recruited a solid risk management professional, and over the last four months I've spent a lot of time digging into understanding risk, the cost of risk, how to manage risk, how to do things maybe differently. We've found that we can use some technology solves into our risk pipeline to reduce costs. For one, we're implementing a traveler care nurse line with Travelers Insurance. So instead of filling out forms and having an adjustor call our injured employees, crew members will be able to get on the phone with a nurse the minute an accident happens. Companies that use this approach find a reduction of 20 to 30 percent in their cost. Calling other people in the QSR space, asking what they're doing, and then looking at our approach and adjusting it, I've found to be pretty exciting because there's some simple fixes that we're doing that should save us hundreds of thousands of dollars. EDITOR: Over the next twelve to eighteen months, how will you measure your success? JONES: I think from the asset protection side, it will be, has this smaller team performed at the level of the past team or above? Have we reduced losses to the company? Have we been true business partners, and have we helped the field organization make their restaurants more profitable? On the risk management side, it will be, what is the cost of risk and have we reduced it? A lot of that will be helped by our broker, Marsh, who has several QSR restaurants in their portfolio, who can help us answer, what is the total cost of an accident for worker's comp and slips, trips, and falls? And are we at or above that? We're starting to put quarterly measurements into place now to try to find that out because we haven't done that historically here. Our quarterly metrics Safety in the QSR world is not only reviewing accidents to get to the root cause and figuring out solutions but also actually getting into the pipeline of how we build our restaurants, the type of equipment we use, developing new equipment when what's out there isn't working, and creating processes that will further enhance our safety culture. 30 JULY‚ÄďAUGUST 2018 | LOSSPREVENTIONMEDIA.COM INTERVIEW

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