Skip to content
3 min read

From Alert to Action: Handling a Cost Spike Live

Three alerts a night is less useful than three a week, because the three a night get dismissed unread.

Matty HerreraBy Matty Herrera, Founder & CEO, Delta Kinetics

Published Updated

Delta Kinetics title card for the article From Alert to Action: Handling a Cost Spike Live
On this page
  1. Key takeaways
  2. The first question: is it real?
  3. The second question: where is it concentrated?
  4. The third question: what is the cheapest intervention?
  5. Then one instruction to one person
  6. Afterwards: record what it was
  7. The uncomfortable trade off
  8. Frequently asked questions
  9. Sources

Key takeaways

  • A cost spike noticed during service is a decision you can act on; the same spike explained next month is history.
  • First rule out the boring explanations, such as a large group, a pricing change or a till error.
  • A spike concentrated in one product, hour or section is an execution problem happening now; an even spread usually is not tonight's problem.
  • Try the cheapest intervention first, since many spikes have an equipment or setup cause that takes thirty seconds to fix, then give one specific instruction to one named role.
  • Record what the spike was and what was done, and set alert thresholds high enough that alerts are not ignored.

Frequently asked questions

What should I check first when costs spike during a shift?

Whether it is real. A large event or big group, a pricing change, a new product or a till operator error can all move the numbers without anything being wrong, so check those quickly before acting.

How do I know if a spike needs action tonight?

Look at where it is concentrated. A spike spread evenly across the night and across products is usually a pricing or recipe issue. One concentrated in a single product, hour or section is an execution problem happening now, and it has an intervention.

Should I gather the team and tell them about the problem?

Almost never mid service. It costs pace, alarms the team and can produce a defensive response to something that may turn out to be a delivery error. Check the physical setup first, then give one specific instruction to one named role if a person needs to act.

What should happen after service?

Write down what the spike turned out to be and what was done, in two lines. The value is that when it happens again you can see it is the same cause, which makes it a fixable process problem.

Are more alerts better?

No. False positives interrupt a busy service, and a system that cries wolf will be ignored within a fortnight. Fewer, more certain, more specific alerts are more useful than many that get dismissed unread.

Sources

  1. Agency for Healthcare Research and Quality, PSNet: Alert Fatigue
  2. Toast Support: Cash and Loss Management (Exceptions) reports, voids, discounts and refunds