WATERLOO - Static-laced conversations with fast-food employees

Archaic analog drive-thru systems are being replaced with digital technology, similar to how CDs and mp3s have replaced cassette tapes and records. Digital drive-thru communication is clearer and more accurate than analog, and quick-service restaurants (QSR's), such as Wendy's and McDonald's, are reaping the benefits.

Digital systems cut the average service time at drive-thrus by approximately 22 seconds per customer, allowing QSR's to service more customers than with traditional analog systems. Considering 50 to 70 percent of QSR sales are drive-thru, according to Brian Davies of Border Foods, the 22 seconds per customer gained with digital systems equals big gains in sales.

The need to convert to digital systems also opened a niche for another company, CSI Group North. The Waterloo-based company specializes in the sale, installation and service of digital drive-thru systems. Even the company's owner did not predict how quickly QSR's would adopt the new systems.

CSI North founder Bob Gougler drew up a five-year business plan after he installed his first system in Moville in February 2003. His plan was to expand to four states by this year. Instead his company currently handles the needs of 6,500 restaurants in 28 states and is still growing. Sales through the first seven months of 2007 have already exceeded total sales in 2006, and CSI is installing systems for Starbucks at a rate of 12 or more per month.

The company's growth has been driven by word of mouth. "We don't put up billboards or advertise in magazines," said regional director Mike Kapler. "Customer were gained, and we earned their trust."

One reason for CSI's bite into the market share of the industry leader, Muzak, is CSI North's contract-free business practices. According to Kapler, Muzak requires companies to enter into service contracts, charging an up front fee for service over the length of the contract. CSI charges clients only when work is performed, allowing customers to switch service providers should they become dissatisfied.

Gougler claims most clients save 10 to 30 percent by going contract free. However, he concedes there are situations where service contracts make sense for certain companies, such as those that need frequent maintenance repairs.

Another reason for CSI's success is Gougler himself. The amiable Oklahoma native has won many clients with his attention to their needs.

"I know if I need something, I can get a hold of them," said Davies, whose Taco Bell franchises have been serviced by CSI for the last 1 1/2 years. "That wasn't the case with the company we were using before."

Border Foods operates out of Golden Valley, Minn., and is a good example of the diversity of CSI's customers' locales. CSI services a small percentage of drive-thrus in its home town, but Waterloo is a central location for CSI's major markets such as the Chicago, Omaha and Minneapolis areas. The company services approximately 90 percent of QSR's in Omaha and 30 percent in Chicago.

The Omaha market also brought CSI into the surveillance camera market, after a series of hold-ups at QSR's made the cameras a necessity. Surveillance is also used to monitor employees for portion control, workman's compensation claims and shrinkage.

A challenge CSI may face on the horizon is the advent of drive-thru call centers, a concept McDonald's has been experimenting with in some of its markets. Orders are handled off-site and delivered back to the restaurants, allowing employees to concentrate on filling orders rather than taking them. Gougler does not believe the concept will catch on industry wide, but says his company could potentially capitalize on the new systems even if it does.

Contact Drew Andersen at (319) 291-1418 or drew.andersen@wcfcourier.com.