You have just been selected as the new manager of a fast food restaurant. The re

Question

You have just been selected as the new manager of a fast food restaurant. The restaurant offers heart-healthy food. The customers have stated they like the heart healthy food and the surveys indicated the food is tasting and appealing. However, business has been falling off in recent weeks. At this point, the restaurant is not making a profit. Customers have complained about the slow service and employee turnover is high. As the new manager, you are to address and solve.

What would be your strategy for identifying the real issues that have created this operational situation?

How would you propose to implement a strategy and related operational practices to turn the business situation around to be making a profit?

Explanation / Answer

It is evident that the quality of food is not the reason for the decline of the restaurant. There may be different reasons behind slow service and employee turnover. Some of the potential reasons might be hostile nature of operations manager of the kitchen, who might be unpopular because of his /her autocratic style of managing the people. Other cause may be the difficult work conditions in the kitchen that are harmful or hazardeous for the employees, who find it difficult to work. Another cause may be the faulty operational processes and equipments which may cause hiderance and bottlenecks in the work, causing friction between different categories of workers, creating a viscious work environment, where no one wants to stay. Some other causes may be related to very high workload that cuases stressed out employees who can't stand the volume of orders, poor pay, benefits and motivation that prompts the workers to look for better options.

The strategy for correction will include the following.

(a) Analysis of work assignment, operational processes, their effectiveness, bottlenecks, capacity utilisation and efficiency of resources.

(b) Assessment of motivation level and work satisfaction of the employees. Analysis of interpersonal relationships and communication at the workplace. Hierarchy at the work and the managing skills of the supervisors.

(c) Analysis of the equipments and process efficiency, workplace safety and hazardeous environment if any.

(d) Competitive position of the company at the marketplace.Demand and supply of manpower in the market. Pay standards of the market and company's standing among others.

After careful analysis of above factors, the manager will be able to find the root cause of the issue and devise and implement the right strategy.

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