Restaurant Guard Case Study

How Surveillance Changes Behavior:

A Restaurant Workers Case Study

Steve Lohr of the New York Times wrote an article on the

research, and commented:

The impact, the researchers say, came not from firing

workers engaged in theft, but mostly from their changed

behavior. Knowing they were being monitored, the servers

not only pulled back on any unethical practices, but also

channeled their efforts into, say, prompting customers to

have that dessert or a second beer, raising revenue for the

restaurant and tips for themselves.

In human resources, much emphasis is placed on employee

selection: if you pick the right people, they will do the right

thing. Instead, this research suggests that the surveillance

effect on employee behavior is striking.

Not surprisingly, NCR is delighted by the results. “It validates

the customer data we’ve seen,” said Jeff Hindman, a vice

president at NCR. “But this is done by outside experts with

the academic standards and statistical rigor they bring to

the analysis.”

To view the entire New York Times article by Steve Lohr

regarding the report, visit bits.blogs.nytimes.com.

Summar y – The modern world is full of surveillance. Speed

cameras, street cameras and Internet monitoring systems

are only some of the ways our behavior is monitored — but

can such techniques reduce the rate of theft in the service

industry?

According to a new report, “Cleaning House: The Impact of

Information Technology Monitoring on Employee Theft and

Productivity” (.pdf), the work of Lamar Pierce, Daniel Snow,

and Andrew McAfee, details how significant an impact

surveillance can have on our daily lives.

The research team measured how rates of theft altered at

392 restaurants in U.S. 39 states after the installation of NCR

Restaurant Guard was followed by:

• Increased total sales of more than $2,900 per location,

per week on average – which represents a 7% increase

• Increased average weekly drink revenue (which has

particularly high profit margins) of more than $900 per

location, representing an increase of more than 10%

• An estimated 35% average increase in operating margin

Results suggested that these gains did not fade over time;

instead they remained steady for at least several months

after NCR Restaurant Guard was adopted. The research

also suggested that these gains were usually achieved

without much staff turnover, and that managers used

NCR Restaurant Guard information to reward trustworthy

employees with more hours.

August 26, 2013 NCR Hospitality News

By Steve Lohr

The New York Times

© The New York TImes

NCR is a registered trademark of NCR Corporation in the United States and/or other countries. All brand and product names

appearing in this document are trademarks, registered trademarks or service marks of their respective holders.

© 2013 NCR Corporation Patents Pending www.ncr.com

For more information, visit www.ncr.com or email hospitality.information@ncr.com

Dunkin’ Donuts Food

Dunkin’ Donuts Food and Beverages Makes Everyday
Easier with NCR Vitalcast™ Digital Signage

Duluth, Ga., June 18, 2013 – NCR Corporation (NYSE: NCR), the global leader in

consumer transaction technologies, announced today that Dunkin’ Donuts has deployed a

high-definition NCR Vitalcast™ digital signage solution at locations across the United

States. Dunkin’ Donuts will leverage the state-of-the-art digital signage solution to bring

its popular food and beverages to life with visually compelling animations and messaging

similar to the brand’s iconic advertising. The NCR Vitalcast digital signage has been

installed in approximately 400 Dunkin’ Donuts restaurants with more than 2,000

restaurants anticipated to transition from static menu boards to digital signage by yearend.

The easy-to-use digital signage solution will provide Dunkin Donuts restaurants the

opportunity to showcase a wider variety of food and beverages with high resolution

product shots and video to enhance the overall guest experience. The digital signage

solution will also make it easier and cost effective to update information in real-time,

feature new and limited time products, and display nutritional information.

“We are delighted to partner with NCR to provide a superior digital signage solution,” said

Scott Hudler, vice president of consumer engagement for Dunkin’ Donuts. “With the

ability to cost effectively update information in real-time, our new NCR Vitalcast digital

signage solution will provide Dunkin’ Donuts franchise owners with a number of valuable

tools to enhance the guest experience.”

Vitalcast features provide greater flexibility to promote specific menu items during

different day parts, localize content and add regional menu item variances that are

integrated with the point-of-sale (POS). In addition to providing the Vitalcast software,

NCR is supporting the installation with content management services.

“Dunkin’ Donuts operates one of the most respected and recognized brands in the world

and they are taking an innovative approach to enhance the in-store customer

experience,” said Kim Eaton, senior vice president and general manager, NCR Hospitality.

“We are excited to continue supporting the vision of Dunkin’ Donuts and its growth plans

with our innovative software and hardware solutions.”

About Dunkin' Donuts

Founded in 1950, Dunkin' Donuts is America's favorite all-day, everyday stop for coffee

and baked goods. Dunkin' Donuts is a market leader in the hot regular/decaf/flavored

coffee, iced coffee, donut, bagel and muffin categories. Dunkin' Donuts has earned the

No. 1 ranking for customer loyalty in the coffee category by Brand Keys for seven years

running. The company has more than 10,500 restaurants in 31 countries worldwide. For

the full-year 2012, Dunkin' Donuts' restaurants had global franchisee-reported sales of

approximately $6.9 billion. Based in Canton, Mass., Dunkin' Donuts is part of the Dunkin'

Brands Group, Inc. (Nasdaq: DNKN) family of companies. For more information, visit

www.DunkinDonuts.com.