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jCarbonara
Joe Carbonara

Double Dose of Disruption

Business leaders often look over their shoulders trying to find the next disruptive player or event that will shake up their organizations. Well, in a matter of weeks spanning August to the beginning of September, the foodservice industry got a double dose of disruption.

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jMartinez
Juan Martinez

Electronic Ordering Insights

Kiosk ordering seems all the rage in today’s foodservice industry. While the process seems simple and intuitive for many consumers, implementation is another story. 

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jStiegler
Jerry Stiegler

Retail Sales Up, Panda Restaurant Group Invests in Urbane Cafe, Pizza Hut Develops New Oven-Hot Delivery System, and More

Total retail sales rose in September, as did restaurant sales, per the U.S. Census Bureau. Pizza Hut has developed an improved pouch for delivery orders. Urbane Cafe has received a strategic investment from the founders of the Panda Restaurant Group. These stories and a whole lot more This Week in Foodservice.

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Highlights

Investment Optimization and The Operating Parameters

FIt is not enough to understand the six operating parameters that exist within any foodservice operations. Rather, it’s equally important to know how they relate to one another.

Juan Martinez, Principal, Profitability, Miami
Juan Martinez, Principal,
Profitality, Miami

Processes and procedures are very much intertwined with the people that actually execute them. At first glance, this may seem rather fundamental but there's more to it than meets the eye. That's because, while easier said than done, it's very important to balance the employees' capabilities – both mentally and physically – with the actual work they have to perform to deliver the brand promise. Any good foodservice design includes processes and procedures that are easy-to–follow and optimize the physical and cognitive aspects of the job.

Failure to balance employee capabilities with what the foodservice concept aims to deliver will result in an internal conflict that can compromise the customer experience and impede an operation's ability to generate that much-sought- after repeat business. The conflict can manifest itself in several ways, including lower food quality, service level or other areas of the experience.

Another important operating parameter is the place, or the facility layout, along with the work stations. One goal of any foodservice design is to create an environment that makes it easier for the employee to perform the duties that comprise their work content. This includes the way they use the foodservice equipment and related technology – also known as the platforms, another one of the operating parameters – to deliver the customer experience.

Equipment platforms can be great enablers of simplification and efficiency, as well as the quality of the experience and hospitality delivered to the customers. The key is to apply these platforms in an optimum arrangement and synergy with the other previously mentioned parameters; processes & procedures, people and place.

And as more concepts look to differentiate themselves from the competition, products and promotions represent a very critical factor in an operation's success. I would submit to you that during recent years, a significant number of foodservice operators have added menu items without deleting any of their older, slower movers.

Although it is very important to add menu items so the concept remains relevant and fresh in the eyes of the customer, it is equally as important to delete some to rebalance and simplify the operations. Doing so allows the crew to continue to deliver an optimum experience. Of course, not many foodservice operators seem willing to delete some out-dated or poor selling menu items.

Just like products, any planned promotion requires careful evaluation to make sure it fits well within the existing operating set up and with the mainstream of existing products and align with the flow of the existing production. In other words, a promotion that's too successful can fall out of synch with the remaining operating parameters and create a poor customer experience.

In my next post I will add a few more thoughts on the topic of products and promotions and discuss some of the considerations to optimally evaluate new products, in order to ensure that these efforts drive both sides of the investment optimization equation; profits and hospitality.

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