Application of principles of Management
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Question One
In terms of managerial roles of the restaurant, a total of five partners would be assigned administrative tasks.
The first managerial role is in the kitchen department. The first partner would be responsible for overseeing the kitchen staff. Since this is the heart of the restaurant, the manager should make sure that everything is running smoothly, including the proper cooking of food, serving and sanitation.
The other managerial role is in the floor department. The second partner, at this point, would be responsible for the floor staff. These are the employees with direct contact to the restaurant’s customers. They include stewards’ guards and captains. The manager should ensure that they are well trained as they are considered the restaurant’s brand ambassadors.
The third managerial role is in the Bar department. The third partner is responsible for the bar staff mostly made up of bartenders. This department is responsible for handling the most exquisite and crucial part of the menu, which is the drinks. The manager, at this point, should ensure that the staff is thoroughly knowledgeable of the drink types served.
The fourth managerial role is in the delivery department. The fourth partner is responsible for managing the delivery staff. This department is considered as essential as the floor department as they also represent the brand of the restaurant and thus require adequate training and supervision by the manager. Background checks and driving license verification should be stressed on by the managers.
The fifth managerial role is in the restaurant managerial department. The fifth partner here who is considered as the restaurant manager would be responsible for the managerial staff who include cashiers and storekeepers. The manager, at this point, is also responsible for distributing the right resources at the right moments across the departments to ensure efficiency.
The managerial hierarchy would be in such a way that the managers of the various departments, i.e. the kitchen, floor, bar and delivery departments report to the restaurant’s general manager who in turn reports to the overall owners of the business.
Question two
The building blocks of competitive advantage needed to be established to ensure the restaurant succeeds includes:
Efficiency
Whereby, through efficiency, the restaurant would be able to lower its operating costs, thus increasing the competitive advantage.
Quality
Whereby the food and services offered by the restaurant are of top-notch quality, and as a result, the restaurant can charge higher prices while at the same time lowering costs, thus increasing the revenue flow.
Innovation
Whereby innovations in the restaurant, for instance, scheduling software and mobile payment leads to higher prices of services offered in the restaurant and lower unit costs.
Responsiveness to customers
Whereby the restaurant customer service responds quickly and efficiently to customers, the restaurant gains a competitive advantage since the customers feel appreciated and satisfied worth the services offered.
The criteria used to evaluate how successfully the restaurant is being managed includes the use of various key performance indicators (KPIs):
Social Media and marketing KPIs
What is especially considered here includes review site ratings and social media activity. This being the case, KPIs may consist of:
- Social media goals and objectives for instance engagement numbers within a single post
- Mean review scores on specific sites for instance TripAdvisor
- Performance indicators from websites for instance bounce rates
People and profitability KPIs
Any restaurant is only as good as it’s people, including both the Management and staff. Since labour costs tend to be among the highest costs in a restaurant, it’s essential to have an idea about how productive the staff are and how much sales they bring in. Additionally, it’s imperative to ensure that employees are engaged and happy at work, as high employee turnover impacts productivity and the bottom line. This being the case, some of the KPIs in this area:
- Sales Per Employee Per Hour looks at how much revenue each employee generates.
- Employee Turnover goes into how often staff leave within a set period of time.
Kitchen and management KPIs
The key to proper kitchen management is finding a balance between providing exceptional value to the customers while keeping the cost down. This includes reducing waste, optimizing the menu and reducing waste to keep down food costs. Some of the KPIs to consider include:
- Gross profit margin is a key profitability metric to know whether you’re staying profitable.
- Menu item profitability helps with setting a strong pricing strategy.
Customer service KPIs
Customer satisfaction should be at the top of any restaurant manager’s list.
Key metrics to consider in this case are:
- Average table occupancy tells you how many customers, on average, have visited your restaurant during a particular period of time.
- Spend-per head highlights the average spend per customer.
Question 3
There are certain important decisions to be made in regards to the Management of the restaurant to utilize organizational resources effectively and build a competitive advantage. This include:
Planning
In the planning stage, it is important to ensure that the eighth principle of Management (The degree of centralization) is enforced in the restaurant. This includes Management and authority for decision-making process being correctly balanced in the restaurant. The restaurant should thus strive for a good balance between centralization and decentralization to ensure effectiveness.
Organizing
In the organizing stage, it is essential that the restaurant management considered the first principle of Management, which is “division of work.” Since individuals are specialized in various areas and contain multiple skills, they should be placed in their work departments, according to specialization. This is because specialization promotes the efficiency of the workforce and increases productivity. Furthermore, the specialization of the workforce increases their accuracy and speed.
Leading
In the leading stage of the restaurant, two management principles should be considered. This include:
- Authority and Responsibility
In order to get things done in the restaurant, Management has the authority to give orders to the employees. An important fact to note is that with this authority comes responsibility. The accompanying power or authority provides the Management with the right to give orders to the subordinates
- Equity
The restaurant’s employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process, and they should treat employees fairly and impartially.
Controlling
In the controlling stage of the restaurant, the principle of unity of command should be in place whereby, an individual employee should receive orders from one manager and that the employee is answerable to that manager.