The Background
Nestled in Long Beach, California, Hotcakes Inc., a family-run business, operates 29 IHOPs along the West Coast. IHOP, a beloved breakfast spot for many, has its roots in a humble start with an entrepreneurial spirit and a dedication to quality ingredients. It all began with an orchard and a passion for crafting preserves and syrups. The beginnings of what would eventually evolve into the very first IHOP can be traced back to Hotcakes Managing Partner Evan Rosenberg’s great uncle, Sherwood, who played a key role in founding the pancake restaurant. Sherwood’s knack for creating delicious syrups from his orchard fruits was crucial. That seed—friends coming together with pancakes and syrup under one roof—laid the groundwork for the iconic IHOP brand.
It wasn’t long until Rosenberg’s father found his place in the business, starting as a busboy and eventually becoming a partner. Today, IHOP and Hotcakes, Inc., open a new chapter with a new generation ready to lead. IHOP’s legacy goes beyond serving pancakes—it’s about honoring traditions, embracing change, and staying true to the values that have defined the brand from the beginning.
"I've told people the accounting side of Restaurant365 is a wow product for us. I've praised your product to a lot of different people, and people know that I shoot straight."
The Challenge
Before implementing Restaurant365’s Enterprise Management Software, Rosenberg faced significant challenges in creating and sharing actionable reporting across all of the company’s IHOP locations. The existing system, Quickbooks, was not suited for growing business and lacked synergy across locations, making it difficult to efficiently consolidate data.
One major pain point was generating P&L reports, which became a time-consuming nightmare.
“My controller used to spend seven or eight hours a week running consolidations in Quickbooks and would then have to dump all that data in Excel, and then truly massaging the data to get it right for us to review,” Rosenberg said. This laborious process was not only inefficient but wasted valuable time and resources.
Hotcakes also needed a platform that could offer precise forecasting, daily data tracking, and user-friendly functionality for all managers. The goal was to increase manager involvement and provide them with tools to make well-informed decisions. As a result, finding a solution that could simplify reporting, enhance accuracy, and improve operational efficiency became crucial for Rosenberg and his team.
The Solution
After moving the business to Restaurant365, Rosenberg estimates that total cost savings could be as much as $50,000 on accounting and reporting tasks thanks to Restaurant365 efficiencies. The platform not only streamlined the accounting reporting process but has also freed up valuable time for IHOP’s controllers. With the clerical burden lifted, they can now focus more on enhancing overall productivity and effectiveness.
One of the most significant improvements has been in transaction importing. What was once a cumbersome and time-consuming task has now become seamless, saving IHOP considerable time and effort.
However, it’s not just about saving time—it’s about empowering IHOP’s managers. With Restaurant365’s enhanced forecasting accuracy and daily data tracking capabilities, managers are more engaged and accountable. They are actively using the platform to improve scheduling and access critical financial insights, ultimately driving better decision-making and operational efficiency for IHOP.
The Results
With time-consuming, manual tasks simplified, the Hotcakes team gained time to redirect their focus toward other strategic initiatives . This includes efforts to improve profitability and engage managers more effectively in scheduling and reporting. Freed from the shackles of manual data entry and tedious reporting processes, IHOP’s controllers and managers can now channel their energies into driving business growth and improving operational excellence.
The transition to Restaurant365 has not only unlocked newfound efficiencies but also cultivated a sense of confidence and commitment amongst Hotcakes’ leaders, especially its store level managers who are at the forefront of the company success and growth.
In fact, he has even recommended Restaurant365 to some of his friends in the business who are still laboring through manual processes, emphasizing its potential to transform their operations and drive success. “I’ve told people the accounting side of Restaurant365 is a wow product for us,” says Rosenberg. “I’ve praised your product to a lot of different people, and people know that I shoot straight.”
Conclusion
As Rosenberg and Hotcakes look ahead, it’s with a sense of confidence and excitement. They’re empowered by Restaurant365’s efficiency and insights. They’re ready to seize opportunities and drive profits, knowing they have the tools and support needed to ensure the company thrives for another three generations.
