Are You Sitting Down?

Unfortunately, the slowing economy is the topic of discussion. We are clearly seeing the trend toward remodel and retrofit vs. new build, and a heightened focus on tightening up unit-level economics by re-engineering work processes and better labor deployment.

Maybe brands can’t expand right now, but they can still innovate! Operators are busy developing new ways to "change the game" and differentiate themselves from competitors. A round of applause for the Burger King Whopper Bar — one of the most interesting "big ideas" I’ve seen. It’s a highly simplified operation with a much smaller footprint that will put BK into new places. In addition, there’s a lot of international growth going on in China and Eastern Europe. (See my post from Moscow)

So, what can we do to develop solutions that help our clients? What innovations will take our clients to the next level? How can we increase product quality, consistency and speed of service? How can we help them reduce their labor costs, and increase their productivity?

For a client introducing new menu items, it’s the perfect time to rethink the existing cooking platform. It’s really not necessary to spend a ton of money to adopt some new technology or cooking equipment and it likely could reduce the time or effort required to produce menu items. Another great approach would be to look for ways to improve the kitchen facility or processes and increase the capacity of the unit.

As always, the first step is to evaluate the current situation. Although analytical and quantitative assessment is ideal, industry best practices also can be applied. Are crew members crossing back and forth to assemble items? Can the flow of the food be reworked to reduce the wasted walking time? Based on the number of times each day an item is prepared, would it make financial sense to add a more efficient piece of equipment that would allow you to use less labor and increase speed?

People and equipment are inextricably linked. Don’t forget that the right equipment can reduce the amount of labor that is needed, and labor is 65% of an operator’s fixed costs, which is the highest controllable operating cost as a percent of sales. Next time, I’ll talk about how changing the cooking platform can also improve labor allocation.