IHOP 2011 Annual Report Download - page 10
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What brings
us together is
exactly what
sets us apart.
In the past twelve months, we’ve made great strides
with our Shared Services model, and today it is more
integrated than ever before. With more than 50% of
our DineEquity workforce now employed in Shared
Services, we’ve implemented a number of strategies
to help team members across our organization work
together more efficiently and effectively. We’ve
introduced common budgeting and planning systems,
and are setting up universal internal and external
protocols. These measures now enable people to
engage collaboratively on cross-functional teams,
share common goals, processes and data, and enjoy
greater role clarity and efficiency, leading to greater
impact in supporting the brands, and ultimately, our
franchisees and guests.
The synergies we’ve achieved within Shared Services
extend beyond our restaurant support centers, to
translate into benefits for franchisees. Shared Services
is now a major source of competitive differentiation for
our Company. This infrastructure enables us to achieve
efficiencies that allow us to be more responsive, and
ensure that our franchisees have the very best support.
As we strive to evolve into a franchisor of choice, it is
our responsibility to make sure that we have best-in-
class resources in place to support our franchisees
and brands.
We’re offering more through our purchasing
cooperative.
Since its inception in 2009, Centralized Supply Chain
Services, LLC (CSCS) has made tremendous progress
in its ability to add value for our organization, brands,
guests and franchise community. In 2011, DineEquity
realized increased efficiency by consolidating our
network of distribution centers from 56 at the time
of the cooperative’s inception to 37 by year-end 2011.
CSCS facilitates the purchasing and distribution of
key commodities, beverages, produce and equipment
used in IHOP and Applebee’s restaurants in the
United States. Each year, it enables procurement of
approximately 100 million pounds of poultry, 70 million
pounds of beef, 55 million pounds of pork, 30 million
pounds of cheese, 6 million gallons of soft drinks, and
more. Our ability to purchase these quality items in
mass quantities translates into greater stability and
savings, since it enables us to partially mitigate the
effects of inflation on food and beverage items. This,
in turn, allows us to provide enhanced value to our
guests. For the Company, its franchise community,
and our guests, that’s a double win.
OUR SHARED SERVICES INFRASTRUCTURE
This year, we streamlined and strengthened our Shared Services
platform to provide greater support and economies of scale for
our franchisees and brands.
08 DineEquity 2011 Annual Report