Throughout business history, companies have introduced grand strategies designed to raise their levels of customer service. They soon discovered, however, that the strategies were the easy part. Getting employees to buy into the strategy and make it work proved more difficult. Not surprisingly, results were usually doomed to failure from the start.
This inability to "close the deal" has been a perennial cause of puzzlement and frustration to company executives. They assumes that once strategies are unveiled, employees will implement the program in such a way that customers notice an increased level of customer service.
Wrong. Not only do sales and service not rise; morale goes down with them! The reason? The assumption that customer service can improve without employee commitment. All too often, management forgets that strategies and programs start and end with their people.
This assumption is a throwback to the thinking of the American Industrial Age when employees were reduced to a component of production, not unlike a piece of equipment.
Industrial age thinking was based on the concept that employees did not want to work and were definitely not concerned enough to do quality work. Employees were given orders, and except for breakdowns (injury or illness), tasks were grudgingly completed. Of course time has proven again and again that employees DO want to work, they DO enjoy their work, and they want to care about the quality of their work. Research has shown that work plays a huge part in a person's self esteem, self worth and personal happiness.
To turn your strategy into reality, you must create an environment that builds employee pride and quality. It is absolutely vital that customer service be a long-term, everyday commitment that employees believe in. Otherwise, employees will think it just another passing management fad that will fade away after a brief flurry of activity like so many other programs. They've seen it all before and if they don't believe it, it won't succeed.
To illustrate the difference in employee attitudes consider this parable. An observer passed by two job sites and asked one employee from each what they were doing.
Employee one: I'm working like hell for too little money.
Employee two: I'm building a cathedral.
Notice any difference in attitude? One was sold on the project and therefore became part of it, while the other was merely a part of the machine. Which employee would you want representing your establishment?
Customer Service Principles:
•Commit to excellent customer service. Live it, breathe it, believe it, and reward it.
•Sell the employees on the whole, not just their part.
•Ensure that any Marketing initiatives emphasize your employees, not just your products. When morale and pride go up, you can bet services and sales will go up. Make your employees feel they are part of an elite group.
•Ensure all customer contact employees have autonomy to accommodate their customers, even if it means bending company rules. Then take a hard look at those bent rules, and see if they need to be discarded entirely.
•Be better than your competitor by knowing your competitor. Take your key people out to a competitor's operation, and talk about what works there and what doesn't (after you've left, of course.)
•Finally, keep the focus on your people: They ARE your business!
Tuesday, September 11, 2012
Thursday, September 6, 2012
Quality Restaurant Service
Randall Turner, a dear friend of mine, dines out at least twice a week and knows good service; he also knows when the wait staff is indifferent. A recent experience at a restaurant in the area made the evening memorable for all the wrong reasons.
"I was there with business associates and wanted to try a new restaurant that had been touted", he recalls. "The place was cavernous and the eight servers outnumbered the customers."
It was a warm night and the small group decided to sit outside. After a long wait the server appeared. Filled their water glasses and disappeared. "We had to hunt for more water, bread and for the waiter so we could order," Randall complains. "There were only two other customers in the restaurant that probably sat 150 people. We knew the servers were out there but we could not see them. It was almost funny."
The service did not improve as the evening wore on.
"After the meal we ordered coffee and when it arrived sometimes later I tasted something strange and sweet in the brew," he relates. "When I asked the server what it was she replied, "I don't know what it is. It's something."
Having to chase down the waiter for the bill was the icing on the cake.
Although the food was good, the quality of service soured the entire dining experience. It was a new restaurant and perhaps the staff was working out a few kinks. But Randall says he likes to patronize a restaurant that will appreciate his business. "It is disappointing when the meal is superior but the service is not up to the same standards," he concludes. "That is what stands out in my memory."
Quality service is vital to the reputation of any eating establishment. It will make or break a business, and customers will not return if they don't get good service.
Not that providing quality service is easy. Customers can be demanding and the menu can be complex and ever changing.
Is quality service learned or is it fundamental to a person's nature? I think is a little of both. I think anyone can learn the basics of how to wait a table. but some people are naturally in tune with customers and how to go beyond just filling their needs, Those are the employees making the big tips.
Typically, servers earn minimum wages plus tips. Particularly hectic days can be costly, since a server is often too busy to provide the personalized attention to each customer that generates larger tips.
Experience providing good service anywhere can be transitioned into the restaurant industry. If someone worked as a telemarketer or a clerk, the same principles can relate to those in a wait staff or in other position in a restaurant.
"I was there with business associates and wanted to try a new restaurant that had been touted", he recalls. "The place was cavernous and the eight servers outnumbered the customers."
It was a warm night and the small group decided to sit outside. After a long wait the server appeared. Filled their water glasses and disappeared. "We had to hunt for more water, bread and for the waiter so we could order," Randall complains. "There were only two other customers in the restaurant that probably sat 150 people. We knew the servers were out there but we could not see them. It was almost funny."
The service did not improve as the evening wore on.
"After the meal we ordered coffee and when it arrived sometimes later I tasted something strange and sweet in the brew," he relates. "When I asked the server what it was she replied, "I don't know what it is. It's something."
Having to chase down the waiter for the bill was the icing on the cake.
Although the food was good, the quality of service soured the entire dining experience. It was a new restaurant and perhaps the staff was working out a few kinks. But Randall says he likes to patronize a restaurant that will appreciate his business. "It is disappointing when the meal is superior but the service is not up to the same standards," he concludes. "That is what stands out in my memory."
Quality service is vital to the reputation of any eating establishment. It will make or break a business, and customers will not return if they don't get good service.
Not that providing quality service is easy. Customers can be demanding and the menu can be complex and ever changing.
Is quality service learned or is it fundamental to a person's nature? I think is a little of both. I think anyone can learn the basics of how to wait a table. but some people are naturally in tune with customers and how to go beyond just filling their needs, Those are the employees making the big tips.
Typically, servers earn minimum wages plus tips. Particularly hectic days can be costly, since a server is often too busy to provide the personalized attention to each customer that generates larger tips.
Experience providing good service anywhere can be transitioned into the restaurant industry. If someone worked as a telemarketer or a clerk, the same principles can relate to those in a wait staff or in other position in a restaurant.
Wednesday, July 25, 2012
Customer Service Radar
On multiple occasions I've heard colleagues and restaurant operators praise service personnel who have "it". "it" is difficult to define, but "it" makes customers happy. One facet of "it" is what they refer to as "table radar". M*A*S*H viewers know that "Radar" O'Really received his nickname because his "radar" enabled him to know what was going to happen before anyone else did. With "table radar" a server knows what the guest needs before the guest actually asks for it.
Since this talent for assisting customers before they ask for assistance can lead to extremely satisfied customers it is appropriate to ask if this is a talent one must be born with or if it is a skill that can be learned. I believe that this is a skill that can be learned and developed. Servers with "table radar" have the ability to "read" the customer's face and postures and to detect subtle cues that lets them know the customer needs something. They act upon these cues and past experience to provide information, assistance, and sometimes products before they are requested.
To develop this type of "radar" the server needs to recognize that the customer is not as familiar with the menu as he or she is. The server must understand that even before many customers have the opportunity to express their need for assistance verbally they will show signs of bewilderment, confusion, or dissatisfaction on their face or in their posture. The customer may even show these outward signs before they are personally aware of their own feelings and confusion.
Once the server recognizes the customer's signs that assistance is needed, the server must overcome his/her own hesitancy to intrude and must be willing to approach the customer to offer assistance. Often the fact that someone offers assistance will trigger the customer's recognition and naming of their own needs, which they will express to the server.
Where the customer is either unfamiliar with the restaurant's offerings or undecided about what to order, it will be necessary for the server to describe what options are available, i.e. specials of the day, house specialty, etc. The information to be communicated may relate to menu items available, drink specials, special of the day, house specialties and/or specific products that the server feel will suit the customer's needs and wants at the moment.
Good servers make the customer believe that they have made a wise choice by affirming the decision and they act to see that the service and the quality of the product are of high standards. These actions are applicable to any staff-customer interaction. So the server must learn to let the customer know that they have made a wise decision ( even if the server would have made a different choice) and they must follow through to see that the customer receives excellent service.
Finally, like any other skill, the development of customer "radar" is not a one-time event. This skill must be practiced over and over again until the server becomes proficient at it. As the server repeats this proves the server will become more skilled at recognizing those customers who have unexpressed needs. The server will be more comfortable approaching the customer, will be better able to describe the available options, and will be able to confidently affirm the customer's choice and provide a satisfying customer experience.
To make this process more memorable, I have described the process using the first letter of each of the five steps listed to create the acronym "radar".
Recognize the customer and the possibility that they may be confused, seeking
additional assistance or service.
Approach the customer and make it known that you are available to assist them by providing information, services and products.
Discuss the customer's need and the options available to satisfy them.
Affirm the customer's choice and Act to deliver the product or service selected.
Repeat repeat, repeat until the process becomes automatic and you can use your "radar" to provide exceptional service to customers.
Since this talent for assisting customers before they ask for assistance can lead to extremely satisfied customers it is appropriate to ask if this is a talent one must be born with or if it is a skill that can be learned. I believe that this is a skill that can be learned and developed. Servers with "table radar" have the ability to "read" the customer's face and postures and to detect subtle cues that lets them know the customer needs something. They act upon these cues and past experience to provide information, assistance, and sometimes products before they are requested.
To develop this type of "radar" the server needs to recognize that the customer is not as familiar with the menu as he or she is. The server must understand that even before many customers have the opportunity to express their need for assistance verbally they will show signs of bewilderment, confusion, or dissatisfaction on their face or in their posture. The customer may even show these outward signs before they are personally aware of their own feelings and confusion.
Once the server recognizes the customer's signs that assistance is needed, the server must overcome his/her own hesitancy to intrude and must be willing to approach the customer to offer assistance. Often the fact that someone offers assistance will trigger the customer's recognition and naming of their own needs, which they will express to the server.
Where the customer is either unfamiliar with the restaurant's offerings or undecided about what to order, it will be necessary for the server to describe what options are available, i.e. specials of the day, house specialty, etc. The information to be communicated may relate to menu items available, drink specials, special of the day, house specialties and/or specific products that the server feel will suit the customer's needs and wants at the moment.
Good servers make the customer believe that they have made a wise choice by affirming the decision and they act to see that the service and the quality of the product are of high standards. These actions are applicable to any staff-customer interaction. So the server must learn to let the customer know that they have made a wise decision ( even if the server would have made a different choice) and they must follow through to see that the customer receives excellent service.
Finally, like any other skill, the development of customer "radar" is not a one-time event. This skill must be practiced over and over again until the server becomes proficient at it. As the server repeats this proves the server will become more skilled at recognizing those customers who have unexpressed needs. The server will be more comfortable approaching the customer, will be better able to describe the available options, and will be able to confidently affirm the customer's choice and provide a satisfying customer experience.
To make this process more memorable, I have described the process using the first letter of each of the five steps listed to create the acronym "radar".
Recognize the customer and the possibility that they may be confused, seeking
additional assistance or service.
Approach the customer and make it known that you are available to assist them by providing information, services and products.
Discuss the customer's need and the options available to satisfy them.
Affirm the customer's choice and Act to deliver the product or service selected.
Repeat repeat, repeat until the process becomes automatic and you can use your "radar" to provide exceptional service to customers.
Saturday, June 30, 2012
Defining Customer Service: The Customer Perception is Our Reality
You might not be able to define service, but you know it when you find it, and so do our customers. Countless seminars, books, articles have been written on the subject of service. Every company touts service as its goal, but service is an elusive concept which is extremely difficult to measure and evaluate.
Service is elusive and intangible, but it is the life's blood of the hospitality industry so we must ask ourselves, "What is customer service?" In today's competitive marketplace service is the most important thing a company has to sell. It truly makes the difference when two businesses have the same product. If service was just smiling or getting food onto the table on time it would be difficult enough, but we know it is much more complex than that.
We've been told over and over, every time we come in contact with a customer, that we make a good impression or a bad one for the organization we represent. The gurus have taught us that these are called the "moment of truth". That being the case, the first moment of truth takes place with a genuine and personal touch as soon as the guest walks in the front door. This sets the tone for the rest of the experience, and it gets even better, the dining experience will be unforgettable.
If you consider the effect that one person can have on the entire experience, and multiply that by a dozen or more employees, the moment of truth have increased exponentially. The first rule of service is simply to find the right people with the right attitude, and then teach them the rest. Let's face it, serving techniques can be taught; sophistication has to be acquired. It baffles me that during the interview process more employers don't ask prospective employees what they think customer service means.
Customer service is difficult to explain, and difficult to understand. The people who know best what customer service is, are customers, because they are the ones who know what they want. And because they are the ones who know what they want, it is the customers we should be listening to. Simply by accommodating the requests of your customers you create a demanding customer. And a demanding customer is not a bad customer. When you accommodate requests and your demanding customers go to another restaurant, they'll be disappointed if they don't get the service equal to what you have created. Hence, demanding customers equal profits.
As we continue to try to define customer service we find that there are some basic truths. To understand those truth you have to realize that customer service has to always be define from the customer's perspective, not the operator's. In fact, we need to remember, the customer's perception is our reality.
We all know that successful service is not a one-time event; you have to work hard at it.It is only as good as your last encounter. It is a production and it goes on stage every day at the same time, and it's live. There's not practicing; there's no rehearsing.
Ambiance at your restaurant can be overwhelmingly beautiful and your food delicious, but when service suffers the dining experience will be mediocre at best. The importance of customer service is forever clear: even the most delicious lobster isn't good when service is poor, because poor service leaves a bad taste in your mouth.
I know not all chef owners will agree with this statement, but I'm a firm believer that a good server can save a bad meal, but a great entree can't bail out a bad server. In my many years in the industry I've found that when I took care of customers extremely well and made them a focal point, profits in evidently flowed.
Executives around the world recognize service as the most important tool a compant use to differentiate itself from the competition. Therefore, they also realize that the most important people in any company are those who provide service. J.W. Marriott Jr. said "Service people are the most important ones in the organization. Without them there is no product, no sale, and no profit. Indeed they are the product. Service is and should be a high calling."
It is important for us to remember that guests are at our restaurant to spend money, and we should not deprive them of that opportunity. This is an industry where we have to constantly train, and when we are done training, train again, and then train again. It is human nature to under-learn and over-forget. Hospitality employees will tell you, "I already know that one." That's great, but it doesn't matter if they know what to do, it matters if they do what they know.
We've all heard the phrase, "You never get a second chance to make a first impression." The first thirty seconds sets the tone for the entire experience. The most important first step for anyone in our industry is creating a bond of trust and credibility with our guests. This is what we call rapport. The essence of rapport is commonality. People like people who are like themselves. If it's true that almost everything you become and accomplish in your life is with and through other people, then the ability to create rapport with other people is the most important skill you can learn. That being said, it is easy to understand why the main challenge in our business is to manage these millions of moments of truth every day. That means managing hundreds of encounters with customers each and every shift, because it is in fact service that determines how much money they are going to spend and how much you're going to make.
You can't sell something you don't know anything about, and you won't suggest something if you don't know anything about it. Closing a sale is actually a transfer of enthusiasm. It is hard to be enthusiastic about something you don't know anything about and you can only sell something to the degree that you believe in it. You impress your guests when you are able to answer all their questions with authority.
It is important to remember that in every service opportunity there is sales opportunity, and in every sales opportunity there is service opportunity. You can have the best product in the world, but if you don't sell it, you still have it.
In this industry, we throw word "service" around like it's a basketball. In the writing of this article, I feel like I'm preaching to the choir, but it comes back to that basic premise that it is not what you know that matters, but doing what you know that matters.
Caring is the golden key. You have to care that your guests get the best service and the best value, and that they have the best time they could possibly have. When the guests know you care about them, that's when they are on your team. There's nothing better than having the guests be on your team; it is a win situation for everyone.
Service is an intangible product. It's a commodity that customers pay big money for these days and it's a word that's way overused. I recently read where it's the most overused word in the world.
"At one time in my life I thought I had a handle on the meaning of the word "service", the act of doing things for other people. Then I heard the terms "internal revenue service", "postal service", "civil service", "service stations," and I became confused about the word "service".
This is not what I thought "service" meant. Then one day I overheard two farmers talking, and one of them mentioned he was having a bull service a few of his cows. Voila! it all came into perspective, and I now understand what service is all about. Now I know what all those service agencies are doing to us"--Orionsky (pseudonym for on-line humorist and contributor to unsolvedmysteries.com).
Service, service, service. We spend a lot of time and money on training and retraining our employees about the importance of customer service, but we really never tell them how simple it can be. In fact, it is so simple it's mind-boggling. I have what I call the Simplicity Rule of Customer Service and it goes like this: "All you have to be is hospitable".
Being hospitable is the act or practice of receiving strangers or guest in a friendly and generous way. It's really that simple. All we have to do is hire people that are hospitable, and the rest comes easy. after all, we all know it's easier to train the technical side than it is to train the personal side.
In this industry, profits are not made by focusing on the larger details; profits results from focusing on the small details and caring about guests. You need to forget the macro, and focus on the micro. After all, when you really think about it, "It's the small things in life that are big".
Service is elusive and intangible, but it is the life's blood of the hospitality industry so we must ask ourselves, "What is customer service?" In today's competitive marketplace service is the most important thing a company has to sell. It truly makes the difference when two businesses have the same product. If service was just smiling or getting food onto the table on time it would be difficult enough, but we know it is much more complex than that.
We've been told over and over, every time we come in contact with a customer, that we make a good impression or a bad one for the organization we represent. The gurus have taught us that these are called the "moment of truth". That being the case, the first moment of truth takes place with a genuine and personal touch as soon as the guest walks in the front door. This sets the tone for the rest of the experience, and it gets even better, the dining experience will be unforgettable.
If you consider the effect that one person can have on the entire experience, and multiply that by a dozen or more employees, the moment of truth have increased exponentially. The first rule of service is simply to find the right people with the right attitude, and then teach them the rest. Let's face it, serving techniques can be taught; sophistication has to be acquired. It baffles me that during the interview process more employers don't ask prospective employees what they think customer service means.
Customer service is difficult to explain, and difficult to understand. The people who know best what customer service is, are customers, because they are the ones who know what they want. And because they are the ones who know what they want, it is the customers we should be listening to. Simply by accommodating the requests of your customers you create a demanding customer. And a demanding customer is not a bad customer. When you accommodate requests and your demanding customers go to another restaurant, they'll be disappointed if they don't get the service equal to what you have created. Hence, demanding customers equal profits.
As we continue to try to define customer service we find that there are some basic truths. To understand those truth you have to realize that customer service has to always be define from the customer's perspective, not the operator's. In fact, we need to remember, the customer's perception is our reality.
We all know that successful service is not a one-time event; you have to work hard at it.It is only as good as your last encounter. It is a production and it goes on stage every day at the same time, and it's live. There's not practicing; there's no rehearsing.
Ambiance at your restaurant can be overwhelmingly beautiful and your food delicious, but when service suffers the dining experience will be mediocre at best. The importance of customer service is forever clear: even the most delicious lobster isn't good when service is poor, because poor service leaves a bad taste in your mouth.
I know not all chef owners will agree with this statement, but I'm a firm believer that a good server can save a bad meal, but a great entree can't bail out a bad server. In my many years in the industry I've found that when I took care of customers extremely well and made them a focal point, profits in evidently flowed.
Executives around the world recognize service as the most important tool a compant use to differentiate itself from the competition. Therefore, they also realize that the most important people in any company are those who provide service. J.W. Marriott Jr. said "Service people are the most important ones in the organization. Without them there is no product, no sale, and no profit. Indeed they are the product. Service is and should be a high calling."
It is important for us to remember that guests are at our restaurant to spend money, and we should not deprive them of that opportunity. This is an industry where we have to constantly train, and when we are done training, train again, and then train again. It is human nature to under-learn and over-forget. Hospitality employees will tell you, "I already know that one." That's great, but it doesn't matter if they know what to do, it matters if they do what they know.
We've all heard the phrase, "You never get a second chance to make a first impression." The first thirty seconds sets the tone for the entire experience. The most important first step for anyone in our industry is creating a bond of trust and credibility with our guests. This is what we call rapport. The essence of rapport is commonality. People like people who are like themselves. If it's true that almost everything you become and accomplish in your life is with and through other people, then the ability to create rapport with other people is the most important skill you can learn. That being said, it is easy to understand why the main challenge in our business is to manage these millions of moments of truth every day. That means managing hundreds of encounters with customers each and every shift, because it is in fact service that determines how much money they are going to spend and how much you're going to make.
You can't sell something you don't know anything about, and you won't suggest something if you don't know anything about it. Closing a sale is actually a transfer of enthusiasm. It is hard to be enthusiastic about something you don't know anything about and you can only sell something to the degree that you believe in it. You impress your guests when you are able to answer all their questions with authority.
It is important to remember that in every service opportunity there is sales opportunity, and in every sales opportunity there is service opportunity. You can have the best product in the world, but if you don't sell it, you still have it.
In this industry, we throw word "service" around like it's a basketball. In the writing of this article, I feel like I'm preaching to the choir, but it comes back to that basic premise that it is not what you know that matters, but doing what you know that matters.
Caring is the golden key. You have to care that your guests get the best service and the best value, and that they have the best time they could possibly have. When the guests know you care about them, that's when they are on your team. There's nothing better than having the guests be on your team; it is a win situation for everyone.
Service is an intangible product. It's a commodity that customers pay big money for these days and it's a word that's way overused. I recently read where it's the most overused word in the world.
"At one time in my life I thought I had a handle on the meaning of the word "service", the act of doing things for other people. Then I heard the terms "internal revenue service", "postal service", "civil service", "service stations," and I became confused about the word "service".
This is not what I thought "service" meant. Then one day I overheard two farmers talking, and one of them mentioned he was having a bull service a few of his cows. Voila! it all came into perspective, and I now understand what service is all about. Now I know what all those service agencies are doing to us"--Orionsky (pseudonym for on-line humorist and contributor to unsolvedmysteries.com).
Service, service, service. We spend a lot of time and money on training and retraining our employees about the importance of customer service, but we really never tell them how simple it can be. In fact, it is so simple it's mind-boggling. I have what I call the Simplicity Rule of Customer Service and it goes like this: "All you have to be is hospitable".
Being hospitable is the act or practice of receiving strangers or guest in a friendly and generous way. It's really that simple. All we have to do is hire people that are hospitable, and the rest comes easy. after all, we all know it's easier to train the technical side than it is to train the personal side.
In this industry, profits are not made by focusing on the larger details; profits results from focusing on the small details and caring about guests. You need to forget the macro, and focus on the micro. After all, when you really think about it, "It's the small things in life that are big".
Saturday, June 16, 2012
Do Your Servers Understand the Magic Minute?
As a customer, we all know what tends to happen to our mood when after being seated we wait and wait to be recognized by someone.
A good rule of thumb, is for your guests to be greeted within 60 seconds after being seated. Any longer than a minute and the potential for irritation and frustration increases geometrically with each passing second.
During a service program I was conducting, a lady told me how a manager had impressed upon her the importance of recognizing the magic minute. One afternoon the manager got all the servers together for a minute and just before it started, dashed out to get something in his office. He returned and asked each person to write down how long they have been waiting for him to return. Most servers wrote down 4-5 minutes or more when in fact he had gone exactly "one minute".
A person's perception of time can be very different from reality. Especially when you're waiting, wondering if you've been forgotten, time can seem to creep by very, very slowly.
What a simple, yet brilliant way to demonstrate how important it is to greet and recognize every guest's presence as quickly as possible, within one minute after being seated. After a minute, the magic of the moment starts to wear off and the mood at the table starts to turn downward.
Monday, February 6, 2012
The Food Production Process - Part 2
Structure of the Food Market
The path of food products from the grower or producer to the end user is quite complex. The route begins with the producers or growers, who sell their products to processors. Often, an intermediary (a concentrator) is necessary to gather the output of numerous, widely dipersed producers into transportable quantities. Concentrators maybe grain elevators, receiving plants, or cooperative marketing organizations, such as sunkist growers in California. Processors may be divided into primary processors such as flour mills and secondary producers such as bakers. Producer may use a food broker to sell their processed product. A broker is an independent sales agant who works on commission and does not take tittle to the goods. From the processor, the goods are shipped to major distribution centers and wholesellers around the country or region. The processor himself may maintain regional warehouses and act as wholeseller. The wholesellers are ussually specialized according to the markets they serve - institutional or retail stores. Institutional distributors may be specialized even further, dealing only with top quality hotels and restaurants or specializing in a very few products or just one product.
Although the marketing channel may vary somewhat for different types of food products, generally follows the same pattern. The restaurant or institutional buyer may buy the product at various stages in the channel. If he/she buys from a local farmer, he/she is buying from the producer. He/she may buy from a local or district office of the processor, or from a variety of wholeseller distributorss. He/she may even enter the channel farther down and buy from a few items from a retail store, although this is ussually a poor practice.
Marketing food products through channels is an enormous and costly task. Approximately 60 % of the consumer food dollar goes to the cost of marketing, and about 40% goes to the farmer. Labor has always been the largest cost in marketing, with transportation second. Packaging is another cost that is increasing in importance.
Marketing cost have been viewd suspiciously by the consumer and food service operator alike as pure profit to many unnecessary middlemen; but this middlemen provide the following important services: storage, grading, and identification of products, transportation, transfer of ownership, (buying and selling), packaging, advertising and financing.
(Part 3- Receiving and Store Management)
The Food Production Process - Part 1
Purchasing:
The character of the product the resulting product cost begin with the purchasing of the raw materials. Although poor preparation practices may destroy the quality of a good product, good preparation practices cannot instill quality where it never existed. The best menu merchandising policies cannot compensate for purchasing that is not alert to new products, new markets, and new trends. And cost control cannot be wholly effective in production or service if buying is inefficient.
Buying must always be judged by its overall effectiveness and never by price comparison alone. An item’s purchase price is only as important as the item itself; it may be five cents less per pound or 15 percent cheaper by price but 30 percent more expensive in actual yield. The buyer should be interested in the lowest price only when the items are comparable in quality and yield. Good buying procedures provide a food operation with the products most suited to its merchandising policy at the most economical price.
“Buying” is not to be confused with “ordering”. Buying involves making decisions and setting policies about what products to buy and how to buy them, approving the vendors to be used and determining the frequency of the purchases and the quantities to be bought. Ordering is clerical activity which is done within the buying policy.
There are two approaches to commercial food buying: the needs of the operation and the availability of products in the market. When the food service operation is located at some distance from a food distribution point, the buyer may have to begin with what is available to him and make adjustments in the menu and preparation accordingly. When product availability is not a problem, the buyer first analyses the needs of the operation and searches out the products he needs. Most often, the products ultimately purchased are a compromise between need and availability. Whatever the approach, the food buyer should have some understanding of the market in which he/she is dealing.
(Next Part 2- Structure of the Food Market)
The character of the product the resulting product cost begin with the purchasing of the raw materials. Although poor preparation practices may destroy the quality of a good product, good preparation practices cannot instill quality where it never existed. The best menu merchandising policies cannot compensate for purchasing that is not alert to new products, new markets, and new trends. And cost control cannot be wholly effective in production or service if buying is inefficient.
Buying must always be judged by its overall effectiveness and never by price comparison alone. An item’s purchase price is only as important as the item itself; it may be five cents less per pound or 15 percent cheaper by price but 30 percent more expensive in actual yield. The buyer should be interested in the lowest price only when the items are comparable in quality and yield. Good buying procedures provide a food operation with the products most suited to its merchandising policy at the most economical price.
“Buying” is not to be confused with “ordering”. Buying involves making decisions and setting policies about what products to buy and how to buy them, approving the vendors to be used and determining the frequency of the purchases and the quantities to be bought. Ordering is clerical activity which is done within the buying policy.
There are two approaches to commercial food buying: the needs of the operation and the availability of products in the market. When the food service operation is located at some distance from a food distribution point, the buyer may have to begin with what is available to him and make adjustments in the menu and preparation accordingly. When product availability is not a problem, the buyer first analyses the needs of the operation and searches out the products he needs. Most often, the products ultimately purchased are a compromise between need and availability. Whatever the approach, the food buyer should have some understanding of the market in which he/she is dealing.
(Next Part 2- Structure of the Food Market)
Thursday, February 2, 2012
The Food Production Process - Part 1
Purchasing:
The character of the product the resulting product cost begin with the purchasing of the raw materials. Although poor preparation practices may destroy the quality of a good product, good preparation practices cannot instill quality where it never existed. The best menu merchandising policies cannot compensate for purchasing that is not alert to new products, new markets, and new trends. And cost control cannot be wholly effective in production or service if buying is inefficient.
Buying must always be judged by its overall effectiveness and never by price comparison alone. An item’s purchase price is only as important as the item itself; it may be five cents less per pound or 15 percent cheaper by price but 30 percent more expensive in actual yield. The buyer should be interested in the lowest price only when the items are comparable in quality and yield. Good buying procedures provide a food operation with the products most suited to its merchandising policy at the most economical price.
“Buying” is not to be confused with “ordering”. Buying involves making decisions and setting policies about what products to buy and how to buy them, approving the vendors to be used and determining the frequency of the purchases and the quantities to be bought. Ordering is clerical activity which is done within the buying policy.
There are two approaches to commercial food buying: the needs of the operation and the availability of products in the market. When the food service operation is located at some distance from a food distribution point, the buyer may have to begin with what is available to him and make adjustments in the menu and preparation accordingly. When product availability is not a problem, the buyer first analyses the needs of the operation and searches out the products he needs. Most often, the products ultimately purchased are a compromise between need and availability. Whatever the approach, the food buyer should have some understanding of the market in which he/she is dealing.
(Next Part 2- Structure of the Food Market)
The character of the product the resulting product cost begin with the purchasing of the raw materials. Although poor preparation practices may destroy the quality of a good product, good preparation practices cannot instill quality where it never existed. The best menu merchandising policies cannot compensate for purchasing that is not alert to new products, new markets, and new trends. And cost control cannot be wholly effective in production or service if buying is inefficient.
Buying must always be judged by its overall effectiveness and never by price comparison alone. An item’s purchase price is only as important as the item itself; it may be five cents less per pound or 15 percent cheaper by price but 30 percent more expensive in actual yield. The buyer should be interested in the lowest price only when the items are comparable in quality and yield. Good buying procedures provide a food operation with the products most suited to its merchandising policy at the most economical price.
“Buying” is not to be confused with “ordering”. Buying involves making decisions and setting policies about what products to buy and how to buy them, approving the vendors to be used and determining the frequency of the purchases and the quantities to be bought. Ordering is clerical activity which is done within the buying policy.
There are two approaches to commercial food buying: the needs of the operation and the availability of products in the market. When the food service operation is located at some distance from a food distribution point, the buyer may have to begin with what is available to him and make adjustments in the menu and preparation accordingly. When product availability is not a problem, the buyer first analyses the needs of the operation and searches out the products he needs. Most often, the products ultimately purchased are a compromise between need and availability. Whatever the approach, the food buyer should have some understanding of the market in which he/she is dealing.
(Next Part 2- Structure of the Food Market)
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