Showing posts with label food cost. Show all posts
Showing posts with label food cost. Show all posts

Tuesday, September 11, 2012

Customer Service Principle

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!

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.

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)