Sales per square metre is a production measurement method applicable in certain settings, such as a restaurant, where sales are monitored at the customer area. It enables identification of areas that generate more profit than others, such as the possibility of the back of a restaurant being less profitable than the front. However, location or table size could also affect sales per square metre, posing a possible disadvantage.
Comparing sales per square meter is not always fair as some tables may be closer together than others, resulting in empty spaces generating no sales. An effective way of measuring productivity is by analyzing the duration of stock availability. If stock finishes quickly, it could indicate good productivity, but it could also suggest insufficient stock ordering. This approach to measuring productivity is best suited for a broad view of all businesses. For instance, assessi
...ng how quickly stock runs out in a shop or raw materials in a factory.
Measuring stock intake helps a company determine the most effective techniques, leading to increased productivity. Table turnover, measuring how many people can sit at a table in a set period, has two significant benefits: assessing the overall performance of the business and identifying which specific days are more productive based on turnover rates. Comparing these rates helps a company determine which methods are efficient and which ones need improving.
One advantage is the ability to observe workers and their productivity in seating and serving customers. When workers are assigned specific tables, tracking turnover rates can identify high-performing tables. Improvements can be made by adding more of similar popular tables. However, this method is limited to businesses like restaurants.
Using table turnove
as a measure has some drawbacks. Firstly, it can be influenced by variations in table sizes which may lead to unfair measurements for different sized tables. Secondly, workers managing more tables may appear to have worse performance due to lower table turnover. Thirdly, the size of the group being served can affect table turnover because one group may order a two-course meal while another orders a three-course meal. Instead, businesses can effectively track customer numbers using an alternative measure known as average spend per customer.
Although productivity can be measured in various ways, such as by tallying customers or studying the average expenditure per meal, it's essential to acknowledge that these techniques may not be effective or relevant across all sectors. For instance, Nando's restaurant might view counting patrons as a pertinent and efficient gauge of productivity because they prioritize getting as many diners into their establishment as feasible. Nevertheless, external factors beyond the eatery's influence could affect productivity measures and need to be considered.
Implementing customer counting at Nando's can provide insights on the need to devise new strategies to attract more patrons. Such a technique can also aid Nando's in determining when staffing levels require adjustment to maximize productivity and enhance table turnover during peak periods. Moreover, modifying operational hours based on customer patterns, such as extending store closing times if most customers flock nearer closing, can be beneficial. Return on Capital Employed (ROCE) can serve as another viable approach for Nando's to gauge productivity. This method would generate official data that could help determine whether their investments align with profits obtained.
Nando's can improve their profit by restructuring their spending if their ROCE is low.
Although they do not offer special offers currently, adding them to their menu could change productivity and become a new way to measure it. For example, they could offer a 'buy one meal and get the next one half price if you arrive before a certain time' special deal during less busy hours, such as in the morning. This would increase productivity by attracting customers during typically slow periods.
Despite the need for special offers to entice customers, Nando's must remain profitable. However, measuring worker productivity based on output is not the best approach for restaurants like Nando's. This is because producing more than what is demanded would result in waste and lower profits. Instead, productivity is measured in mass production lines and Nando's produces food based on daily demand.
Nando's workers, including those at the Bluewater branch we visited, offer a service to customers rather than a physical product. The layout of this particular location features a walkway in the middle, making it difficult to calculate sales per square meter. However, other branches may not have this complication. Measuring sales per square meter would be useful for Nando's to determine which areas of the restaurant are most popular and profitable. This is particularly important as table sizes can vary and impact how many tables can fit within a single square meter. By identifying the highest-selling tables, Nando's could gain an advantage.
For Nando's, a useful method of gauging productivity is to track the duration for which their stock lasts. This enables them to determine whether they are purchasing excessive amounts resulting in waste, or too little causing rapid depletion. By doing so, they can monitor the turnaround
time for dishes to be prepared and delivered to customers, ensuring that productivity remains at an optimal level. Implementing this approach would enhance productivity in the long run, as Nando's can identify the most efficient stock intake and reduce waste while ensuring optimal usage of food. Additionally, Table Turnover is also considered a viable measure of productivity, although it may not be the most fitting for Nando's.
As previously stated, table turnover offers two main benefits. Firstly, it allows you to determine the number of individuals that occupy a table daily. Secondly, it helps to assess how efficiently workers move customers on and off tables. In the case of Nando's, measuring the frequency of groups occupying tables during a day would enable the restaurant to determine if enough people are circulating the tables. However, a disadvantage is that Nando's does not assign workers to specific tables; they check all tables. Therefore, while table turnover is useful for assessing Nando's productivity, it does not measure worker productivity. Alternative methods for measuring productivity at Nando's could include monitoring task completion speed.
Measuring productivity among Nando's kitchen and till workers could involve tracking the duration it takes to cook or process a certain amount of dishes or orders. Additionally, monitoring customer complaints over a week can provide insight into service quality and potential costs for addressing them. To enhance productivity, Nando's may concentrate on improving food quality and worker performance.
Restaurants must deliver both a product and service at the same time. To improve productivity, it is important for restaurants to provide sufficient training to their staff. Nando's adopts on-the-job training for new employees, suggesting that this method is effective. By
receiving training, workers can gain the essential skills needed to perform their job more effectively and efficiently, resulting in an increase in productivity.
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