Business of the Week: DUMAC Business Systems, Inc. Celebrates Seventh Year on 'Syracuse 100' List

CNY Business Journal (1996+), Nov 26, 1999 by Dickinson, Casey J

SYRACUSE-The cash registers no longer make the "ka-ching!" sound they did in the past, but DUMAC Business Systems, Inc., finds the pointof-sale systems market better than ever. The company recently celebrated its seventh appearance on the Greater Syracuse Chamber of Commerce's "Syracuse 100" list. DUMAC made this year's list in both the revenue and the productivity categories.

"The bulk of our growth has taken place in the past five years," says David McCarthy, chairman and chief executive officer of DUMAC.

David McCarthy's father Bill left National Cash Register Corp. (NCR) in 1952 to start his own cash-register service business. The company name comes from a combination of the two original partners' names. Two year after leaving NCR, Bill McCarthy expanded his business, selling competing lines of cash registers, as well as providing repair service.

Today, Bill McCarthy's sons David and Howard run the business. The company now also sells NCR's products, rather than compete with the cash-register company.

David McCarthy credits DUMAC's growth to a business decision the company made in the early 1990s to concentrate on serving three primary markets: supermarkets, quick-serve restaurants, and table-service restaurants. DUMAC markets a different brand line to each market segment consistent with the industry's needs. Supermarkets use NCR models; quick-serve restaurants, Panasonic, and table-service restaurants use a computer program called Digital Dining. The Digital Dining program operates on a computer installed in the restaurant.

Cash registers have changed quite a bit since the early days of the company.

Today's units appear more closely related to computers than manual models of the past. Point-of-sale terminals are now interlinked with store computer systems for more efficient operation.

DUMAC sells more than checkout equipment. The company provides what President and Chief Operating Officer Howard McCarthy calls a "turnkey system" for its customers. Each installation, he adds, is customized for the individual customer. DUMAC sells radio headsets, menu boards, and other

sales-related items, as well as linked

credit-card terminals.

Some newer products coming on the market include a self-service supermarket checkout from NCR and the ULTRAK CCTV system. The ULTRAK allows business owners to monitor their establishments

via remote video link that can be viewed using a modem-equipped computer. The surveillance system displays a readout of cash-register functions over the video image as well. ULTRAK also records transactions on VHS videotape.

The company employs three computer

programmers who customize point-of-sale software for DUMAC customers. The programmers have tackled projects such as working with Latin American restaurant owners to modify DUMAC's software products for

Spanish-speaking workers. DUMAC sells its product lines in 32 states and Puerto Rico.

DUMAC sales personnel are specialists, often coming from the industry they now service. Howard McCarthy believes hiring from the

fast-food and retail businesses gives DUMAC an edge over the competition by bringing "native speakers" to the company. Former industry workers can more easily relate to their customers' needs, he says. DUMAC plans

to add more workers soon and the

McCarthy brothers say they will most

likely be former workers in one of the

company's three markets.

The company recently opened an office in Atlanta, Ga. David McCarthy estimates DUMAC's Atlanta location will employ eight to 10 workers by late next year.

Howard McCarthy credits his employees' strong work ethic with keeping the company growing.

"Our people," he says, "are the

biggest reason we are where we are

today."

DUMAC Business Systems, Inc.

19 Corporate Circle

East Syracuse, N.Y. 13057

Phone: (315)463-1010

Fax: (315)463-1980

Web Address: www.dumac.com

Type of Business: Distributes and services computers, software, and related products used in point-of-sale systems

Founded: 1952

Additional Offices: Rochester, N.Y., and Atlanta, Ga. Employees. 56 full time

Key Officers: David McCarthy, chairman and CEO; Howard McCarthy, president and chief operating officer; Shaun O'Brien, executive vice

president

1998 Annual Revenue: $8.3 million