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Customer Snapshot

Supplying Restaurants with Everything BUT
the Food

100,000+

restaurants served over the last 50 years

 

 

The largest menu-cover supplier in the US, KNG proudly serves restaurants their vital essentials like menu-covers, customized aprons, uniforms, and guest checks. Partnering with SAP and Gravity Pro Consulting, KNG guarantees customers same day shipping of orders placed up to 3 p.m. by phone or online.

 

Company

KNG, Inc.

Headquarters

Nampa, Idaho, USA

Customer Website

www.kng.com

Revenue

US$50 million

Number of Employees

<100

Implementation Partners

Gravity Pro Consulting LLC

Line of Business

Service, Sales, Sustainability, Finance, Information Technology

Industry

Consumer Products

Featured Products

SAP Apparel and Footwear, SAP Business All-in-One

History

Diversifying their menu

      

  • 1965King Menus was founded in the San Francisco Bay area.
  • 1992Management purchased the company.
  • 1996King Menus began manufacturing custom menu covers in-house, at a new facility in Meridian, Idaho.
  • 1998King Menus expanded its offerings to include restaurant apparel.
  • 1999Company began apparel manufacturing and offering restaurant supplies.
  • 2004King Menus moved headquarters and manufacturing to a new, 27-acre campus in Nampa, Idaho.
  • 2006Company changed name to KNG, Inc. to reflect its growing product offerings.
  • 2008KNG began an employee stock ownership program.
  • 2012Company shipped its 10 millionth menu cover.

Business Model

The restaurant business: It’s more than just food

The first concern for restaurant owners is for the quality of their food and service. However, it takes a lot more than food to run a restaurant. As one of the largest manufacturers and suppliers of restaurant goods in the world, KNG’s business has been driven by a single core philosophy: providing customers with the highest quality supplies at the industry’s most competitive prices, backed by a commitment to reliability and a thorough understanding of the business.

 

KNG provides a complete line of restaurant supplies to food service organizations of all types and sizes around the globe with durable, industry-leading products such as menus, aprons, employee uniforms, flatware, linens, trays, and guest checks. With a customer base of 100,000+ hospitality clients, KNG products can be found in some of the industry's largest chains, including Pizza Hut, T.G.I. Friday's, Perkins, McCormick & Schmick's, Red Robin, and Chili's.


Success Strategy

Putting customers first

KNG knows that nonfood items are always second priority for restaurants, until suddenly there’s an emergency. As such, KNG is always receiving rush orders, so they guarantee same-day shipment to their customers when an order is placed by 3:00 p.m. via phone or online.

 

Customer satisfaction is key to KNG’s profitable growth with same-day shipments and guaranteed delivery dates for bulk or custom orders. KNG’s biggest goal is to maintain and enhance their reputation for top-notch customer service.

The Challenge

Legacy applications: Like a kitchen nightmare!

Offering just-in-time deliveries and customized apparel was not possible with the disparate legacy applications and spreadsheets that KNG used to employ. At one point, KNG’s revenues grew by 40%+ annually for eight straight years. While this growth was certainly welcome, it severely strained KNG’s software infrastructure. Application and interface maintenance was inordinately expensive and data migration was time-consuming and manual.

 

“We got to the point where we simply had to have a single solution that automated all aspects of our business. We had ambitions to grow the business
a lot farther, but our software situation was standing in the way.”

 

Enter SAP

Appetite for automation, customization, and flexibility

KNG has always been a pioneer in adopting cutting-edge technology, including e-commerce, which now accounts for 50% of orders. Even though KNG considered themselves a small company, they thought big when searching for the right enterprise-wide software.

 

Needing a solution that would automate every step from order entry through fulfillment, they wanted to partner with a vendor who would be there for the long haul, and a solution that would keep delivering no matter how much they grew.


Product customization is extremely important to KNG’s customers, so they needed a solution that would support all their embroidery options, and the range of colors and sizes they provide.

We learned about SAP Business All-in-One solutions and how they can be implemented quickly at minimal expense. In addition, the SAP Apparel and Footwear application is designed specifically for companies like ours, and we found that it covered our needs thoroughly.

The SAP Experience

Synergies with Gravity Pro Consulting

KNG selected Gravity Pro Consulting LLC to help with the SAP software implementation, who provided SAP software experts to team up, one-on-one, with each member of the KNG team. Gravity Pro Consulting developed a deep understanding of KNG’s business, and then helped KNG modify its business processes to match up optimally with the applications’ functionality.

 

The project wrapped up on schedule and within budget in less than five months. During that time, the team managed to convert data from all the legacy applications and upload 170,000 customer records plus financial data.

Running Better

New technology cuts the fat off

With SAP software supporting KNG’s operations, efficiency abounds enterprise-wide. KNG is far more adept at aligning custom manufacturing with customer demand, executives have real-time data to help with key decisions, and drop shipping is more expeditious.

Benefits

Lean and efficient

Month-end closings, which used to take a full week, are now accomplished in hours. KNG knows exactly how it is doing financially at all times instead of always having to wait until the end of the month.

 

“Without SAP software, we’d have had to add one person in accounting, another in purchasing, another in shipping, and two more to manage data and interfaces. That’s a lot considering we have fewer than 100 on the payroll.”

Lesson Learned

Using intelligence as a recession shield

“Fluctuating economic situations require us to be nimble in our go-to-market strategies. We think of our business as consisting of ‘bricks and clicks,’ and when the recession hit, we had to make adjustments in the mix that paid off for us. Those adjustments wouldn’t have been feasible without the flexibility of SAP software.”

 

Even though sales dropped 20% during the
economic recession, total profits actually increased
by 20% to 30%, thanks to operational efficiencies with SAP software.

Today

Pick, pack, and ship within 30 minutes

Whether customers place their orders with telephone reps, or order from KNG’s website, the SAP integration allows KNG to guarantee, but not overcommit, delivery dates—and to maintain their signature same-day deliveries on orders received by 3:00 p.m.

 

“Customers are happy because they can place their orders so effortlessly, and we’re happy because we’re easily 20% more productive with SAP software.”

Journey Ahead

Next course: Satiated customers - globally

KNG recently expanded into Canada and is planning further international expansion, as well as more distribution centers in the USA.


“We have customers that would like to use electronic data interchange for orders and payments. All the necessary support is already there in our SAP software. SAP solutions can help us achieve what we most want to do – satisfy our customers.”

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