4 Warning Signs That Your Operational Procedures are
Impacting Your Bottom Line –
Impacting Your Bottom Line –
As we enter the second half of 2013, now is the time to take stock of your business’ operational inefficiencies. Whether you are restauranteur, caterer or food service provider, examine which procedures are currently working and get rid of those that are not.
Here are 4 warning signs that indicate that you have a problem with some of your operating procedures that may impact your bottom line:
High Employee Turnover - This is an indication of a larger human resource issue. Exit interviews can uncover a pattern of something amiss in your organization. For example, are your managers adhering to the guidelines of your employee handbook? Our Blog, 4 Reasons Why Your Restaurant Needs an Employee Handbook, takes a look at this. High employee turnover becomes expensive due to the cost of recruiting, hiring and training new staff. High turnover can also make it hard to maintain your desired level of product and service quality, as it pulls management away from running the business to train new staff and by always having novice front-line staff.
Theft - If you think you don’t have any, you are wrong; and if you are aware of some theft, the problem is larger than you think it is. Re-examine the obvious places where theft occurs to ensure your controls are in place and being used. But also look at the less obvious places. In our previous blog we discussed, how theft is a major drain on your bottom line. Our Blog entitled: How Much of your Profits are Being Eaten by Employee Theft? Four Basic Ways to Prevent Employee Theft in your Establishment, examines this more in depth. Holding your staff accountable with strict controls, checks and guidelines can help you to maintain your bottom line profits.
Safety and Sanitation – Poor safety and sanitation can lead to waste, unnecessary health department fines, and a PR nightmare. Now is the time to review your food safety and sanitation training program. As discussed in our blog entitled 4 Reasons why it is Vital that All Employees are Trained in Food Safety, having dirty bathrooms, employee accidents, fruit flies at the bar, or violations from the health department can hurt your quality, effect employee morale and lead to a loss of business.
Quality –There are many components to quality. They all lead back to proper training and execution of operating procedures by your staff. Seeing an increase in improper order taking, plates being returned to the kitchen and general complaints about service and cleanliness are often red flags, as are negative on-line reviews. A positive customer experience is the ultimate goal. Turning poor customer experiences into positive ones can be a valuable training tool and learning experience, and can lead to customer loyalty. Our blog Bad Experiences Can Make Loyal Customers explores this.
The issues above can erode your profit margin quickly and lead to your business’ demise. If procedures are not working now, they won’t work in the future and need to be changed. Improving upon your guidelines and procedures can ensure that 2013 is your most profitable year yet.
Don’t know where to begin? Ask yourself, do you have the proper written procedures and operational guidelines in place so you can be as profitable as possible? 4Q Consulting can develop customized operational guidelines and training programs to meet your needs. Call or email us today for a free business consultation!
All original content copyright Noelle E. Ifshin, 2012-2013.