Delicious and Hudsons Cafs - Operational Management - Assignment Example

Name Tutor Course Date Operational Plan Letter of Transmittal Date: 30/10/2016 To: National Franchising Headquarters From: Re: Report on complaints from the customers Enclosed is the report requested by the national franchising headquarters for Hudson’s Coffee for records relating to complaints received about the service, quality, and cleanliness of the café was received on 29th October 2016. The main findings of the report are: Customers complained of overpriced products Due to overcrowding during early mornings, the café runs out of stock Meeting clients requirements within time limit was a challenge especially during rush hours The restrooms were in good condition and fully stocked for customers use I would like to acknowledge the assistance of the Hudson’s Café management team, and particularly the head manager who was very helpful in providing the list of figures required, and was friendly. Finally, I take the opportunity to thank you for the chance this report provided me to familiarize myself with the Hudson’s’ café great environment, and in addition I developed my research skills, which will be important for future projects. Regards, Executive summary The report is covering important issues such as recommendation and solutions on how to solve the complaints brought by the customers to the headquarters of the restaurant. Good work environment entails friendly and efficient staffs that attract consistent customers. Poor or low quality of services and poor hygiene will lead to low productivity levels, unsatisfied customers who might go to the competent organization. Managing a restaurant can be challenging, this report offers various opinions on how to attract and retain customers increasing sales of the company. Not all times, the staff members will be on the same page and during such times the manager may find it difficult running the store. This report recommends ways to run the business. A restaurant requires a good presentation; trained staff, clean uniform and variety of products of good quality. Introduction It is the expectation of all restaurant managers to provide their customers with courteous and prompt services, and in the case of complaints, they are keen and fast to rectify. Hudson’s café is receiving a decline in its sales and customers which lead the organization to conduct an investigation to solve the issue. The Headquarters of Hudson's café received complaints from some of the customers concerning products quality, services, and cleanliness through company’s email, suggestion box, and through phone calls. The customers complained that they had to wait for over 30 minutes to be served and thus wasting a lot of time. The complaints regarding slow services were common in rush hours especially in the morning and the evenings. Customers who prefer their coffee with additives like caramel or cocoa complained they did not receive that. These problems lead to the conducting of the report as requested by the headquarters. A good relationship between customers and the employees increases sales of products and the restaurant gains popularity in the area. The data collection for this report was through direct observation, interaction with employees and supervisors, and reading comments from the suggestion box. In any organization, consumer feedback is crucial for sale increment and improvement of their services. The following were the findings of the investigations: Long customer waiting hours during rush hours that is, morning hours and evening hours The restaurant has modern style architecture, elegant yet simple and it attracts many customers from all places. Moreover, Hudson’s café products such as cappuccino are affordable. The cappuccino was of high quality and not overpriced at all. Insufficient staff. There were few workers compared to the number of customers served. On average, one employee would serve two to three tables where each table had five to six customers. Inadequate stock. Caramel and cocoa flavors were only available in the morning hours but the restaurant run out of stock in the midmorning. Personal hygiene among workers, espresso machine, towels, coffee cups, plates, and restrooms cleanliness was excellent. Although busy and inadequate, the staffs were super friendly and accommodating. Conclusion and recommendations The main cause of slow services was due to insufficient staff in the restaurant. An organization with insufficient workers may suffer low productivity levels, low sales figures, and loss of patience among the customers making them shift to competing restaurants. It is, therefore, recommendable Hudson café recruit more skilled staff that can perform different roles, for example, one staff can serve as a cashier and prepare coffee for the customers. The performance of multi-skilled staff will reduce long customer waiting hours as well as improve services during rush hours. Customers are encouraged to revisit a restaurant if the employees are friendly and accommodating. For the organization to improve the staff-customer relationship, there is a need for the management to motivate employees through pay increase and bonuses, off-days, short working hours, regular training. Employee motivation encourages them to perform exemplary in their roles. Hygiene and sanitation is a key factor in maintaining current customers and attracting potential customers in beverage enterprise. Poor hygiene will lead to low productivity levels and unsatisfied customers who might shift to competing restaurants. Therefore, the level of cleanliness that is personal hygiene, espresso machine, towels, coffee cups, plates, and restrooms should be improved and maintained. It is important for the management to keep track of the inventory to ensure demand satisfaction and the restaurant does not run out of stock. Furthermore, the restaurant should be prepared for the unexpected demand. The management should track the exact number of needed items on the menu every day. Accident happens for example an employee may ruin sachets of coffee and therefore without investigating daily expected usage the restaurant may run out of stock. It is recommended that the organization establish policies for managing the inventory. Such policies should include keeping of an accurate record of day to day usage of stock and the number of customers served. The organization will be in a position to predict future demand and expected customer turn up in a day, week or month. This will improve customer demand satisfaction and in case of perishable goods, it will reduce their spoilage and loss. Part 2 The operational plan of Delicious Café An operation plan is necessary to implement the restaurants strategic actions (Lussier 123). Delicious Café will provide unique, excellent beverages at value pricing that is within the customers' affordability in the area. Delicious will achieve this by using high-quality coffee beans and following preparation guidelines. The café will provide espresso drinks, brewed tea and coffee, and other refreshment beverages. Besides, the beverages Delicious will offer its customers pastries, sandwiches, and salads. Product Description The espresso-based coffee drinks will include mochas, lattes, cappuccinos, among others which will be provided with soy, whole, or skimmed milk and other additives such as caramel, or cocoa. Resource requirements Delicious Café start-up expenses will include: Three months pre-paid rent expenses Operating capital which includes employees salaries and cash reserves for the first two months of operation( $20,000 and $14,000 per month respectively) Equipment: coffee maker ($800) coffee grinder ($200) espresso machine($5000) equipment for food service provision such as microwave, blender, and others ($20,000) office equipment such as file cabinets, printer ($3,500) equipment used in serving the customers such as plates, flatware, glasses ($3,000) Counter area equipment such as ice machine ($9,000) storage equipment such as utensil rack, food case, bins ($3, 600) store equipment which includes security, cash register, ventilation ($10,000) Delicious café location will be on the ground floor of a commercial building in the city having secured a lease contract of one year which is renewable for five years at a fixed rate. The floor plan will be as follows: back office-200 square feet and coffee bar-2,300 square feet. The coffee bar will have a kitchen, seating area with 13 tables (1,260 square feet), storage area, production area, and two restrooms. The coffee bar will have an open and clean interior design made from modern wooden décor. Delicious will have clear window displays to attract customers. Key performance indicators for the business, including staff members Monitoring the key performance indicators provide the manager with a better understanding of his/her success and helps the owner improve the management of the restaurant. Using KPI the owner can easily identify the problems of the restaurant and take a quick action to improve on the area. On the other hand, he/she can spend extra time nurturing the areas that are performing well. Staff and employment key performance indicators Wage Cost Percentage including wage costs calculated as a percentage of sales Total labor cost percentage including insurance covers, taxes, wages, retirement charges The total number of labor hours in each section Average hourly pay Sick days used Labor turnover: calculating the number of position in Delicious café divide by number of people employed in a certain period Employment average length period Front of house and restaurant management One should look at what each waiter is selling to determine what menu appeals to the clients thus find the right choices for business starters. It will also provide the best and worst selling products. That is Staff productivity. Use the customer’s feedback to find ways to improve on the questioned areas. Calculate the costs of uniforms, tea-towels, aprons and all other linen costs. The total number of customers and total of sales per head. Kitchen management Kitchen labor hours that is the number of hours spent in the kitchen while working Kitchen productivity The stock value is that determines the amount of food stock one is holding are there perishable items? Best-selling or worst selling products Food costs per head. Calculate weekly how much is needed to feed an average client Food cost percentage that compares food purchases weekly against food sales Function management that is sales and marketing Number of customers to measure popularity of the café Costs incurred in marketing and advertising Press mentions Sales inquiry that turn into actual sales Monitoring and controlling processes Café inventory: Calculate the cost of your products and distribute automatic invoice amounts to the ledger account numbers. Make sure you keep the transaction and purchase reports. Ensure product and service targets documentation is maintained as well as timelines. The quality standards for products should be high to avoid complaints from customers. Specify training requirements of the staff as well as list the required input services and what time needed. Staff roaster: The manager should create and ensure the maintenance of work schedule to keep track of day to day café operation. The work schedule should specify working times and employee’s responsibilities for a specified time period, for example, weekly or monthly. Estimate the number of staff required and the time they are needed. This will help in planning and calculating staff salaries, rosters, entitlements, and records. Set a production schedule. List the physical resources required and the time of their requirement. Therefore, one needs stock records, stock storages, and stock levels details. Moreover, keep a record of suppliers' capabilities and records, and include delivery lead times Contingency plans Contingency plans and risk management should be implemented into all relevant plans of any organization as they act as a backup plan for any shortfall. They also act as plans which reduce the likelihood of a negative occurrence or reduce the impact of that negative occurrence. Some of the contingency plans identified are: In case of any shortcomings, obtain additional funding by seeking potential partners or investors. One can also obtain loans and credit, refinance or extend time on payments. To reduce labor costs, the management should restructure the operation of the restaurant. Workers should take training classes where they learn all the different skills that they can multi-skill thus undertaking more than one role. This option will reduce the number of staff and labor costs. Set up systems to accrue greater benefits from equipment and products by re-using various assets for different purposes. Opt to hire purchase or rent materials, stock and equipment as it will reduce large capital usage in the restaurant. Hire purchase of products spreads out the payments over time. To improve the performance of the employees, the management should establish shift schedules and roasters. The management should optimize shift design which includes activity switching; different start and end shift times, split shift and break assignment. For a successful operational plan, one has to be in access with the appropriate documentation so as to obtain relevant information required in developing the necessary processes. The manager has to consult with relevant personnel, colleagues and resource managers. As a manager explaining your operational plans to the key stakeholders is important. For example: provide the missions and objectives of your restaurant to the stakeholders. They advise on the strategies and activities required to achieve the set mission. In addition, stakeholders provide the best timelines and schedules of the organization. Memo to Employees Date: 29/10/2016 To: All Employees From: The Management Re: weekly operation, roaster, purchasing and maintenance of the cafe The purpose of this memorandum is to explain to all employees their weekly operation, roaster, purchasing and maintenance of the café. The restaurant manager arrival time at the office is 30 minutes before the general operating hours to ensure the restaurant is clean for business and everything is working in order. During this time, the manager should hold a brief staff meeting to assign each employee to their place of work. He/she should then cover any issues that may be needing attention. The baristas will handle the transactions on sales, at least three employees should be on the serving counter to speed up the customer service, and one should prepare the orders. A weekly cleaning schedule involving vacuuming, window cleaning, restroom cleanup etc should be developed and followed. The restrooms should remain clean and well stocked since many customers will use them. Besides, the weekly cleaning schedule, the management should develop and follow a daily cleaning schedule. In the case of any spillage, one should clean immediately to avoid accidents and untidiness. The first shift is from 8:00 am to 2:00 pm The second shift operates from 2:00 pm to 8:00 pm The third shifts runs from 8:00 pm to 2:00 am The fourth shift runs from 2:00 am to 8:00 am If you have any comments, questions, any feedback or suggestions, please drop your note in the suggestion box. Thanks in advance for your cooperation. Yours sincerely, The management team Gantt/flow chart explaining the weekly operation Figure 1 Daly Flow of activities Figure 2 Weekly flow of activities Strategies to achieve the operational plan An organization should implement operational plan strategies for protecting intellectual property, recruiting, inducting and developing personnel, making variations to the plan among others. Intellectual property defines an organization from its reputation, processes of making decisions, and the employees' welfare. An organization reputation is the most vulnerable asset of its intellectual property. Customers will determine the true value of the organization's intellectual property through the quality of services they receive, standards of the products offered and quality of the staff serving. It is therefore, recommended that the organization obtain a management for its intellectual property. The management should also monitor the employees to ensure the services delivered are of high quality and they portray a good friendly environment to the customers. In the case of abuse of intellectual property, the organization should develop a quick response procedure to solve the risk. For example, if the restaurant receives complaints from customers about a waiter providing poor services, he/she may be shifted to the kitchen area or to other places where they do not serve the customers. It is, therefore, important to have multi-skilled staff in case of such a case happens. Workers come into organizations with different expectations, and thus their motives are different. They have diverse backgrounds, skills, experiences, and interests. Having a clear outline of how you recruit, induct, and appoint your staff will assist in recruiting the best team for the organization. Specify on the kind of roles that you need the staff to fill in, and fill them with the best candidates applying for the posts. Choose the candidate who best meets the specification of the vacant position. While recruiting managers ensure that a fair and transparent process is followed. Induction is the final process of the recruitment. Make the new employees feel valued and welcomed to the organization. This is achieved by introducing them to the daily operations in their roles and the major people in the organization. Offer them a copy of their job description entailing responsibilities, expectations, and work hours. By welcoming the new employees, they will feel motivated and will perform their best with less stress as they start their role. The organization should develop and implement strategies ensuring that the recruitment of employees and induction is within the management policies of the organization' human resources. As the manager of the restaurant, one ought to know how to acquire physical resources and services. It is important that the organization follows the procedures and systems of acquiring resources and services to ensure they are monitored, used and controlled accurately. Organizations should have preferred and trustworthy suppliers of physical resources to ensure they receive the best qualities of the products. It is the organization’s responsibility to develop and implement the best strategies to ensure its physical resources and services are obtained following the policies, procedures, and practices of the organization. To monitor and document the performance of the organization, the management team should develop, observe and review processes involved to evaluate progress in obtaining profits, productivity plans, and targets. It is important that the organization assess the progress of achieving the plans set to achieve productivity of the organization. Take quick responses to rectify areas experiencing under-performance and offer solutions to increase that areas performance level. The management should make plans and implement processes to ensure all the workers receive training and mentoring to deliver good services effectively. Before making any variations to the operational plan, it is important to negotiate recommendations and gain approval from selected groups of the organization. Developing an operational plan having consulted with the relevant personnel, specialist resource managers, and colleagues ensures a productive outcome of the organization. Consultation process before making variation is an essential part of the process of the operational plan. Work Cited Lussier, Robert N. Management Fundamentals: Concepts, Applications, Skill Development. Mason, OH: South-Western/Cengage Learning, 2008. Print. Read More