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A Guide to Investing in Startups
Investing in startups involves a certain element of risk. If
you've ever received an opportunity to invest in a startup
company, you might find yourself wondering whether or not it's
worth the risk to invest your money into a business that's...
Home business ideas for normal moms like you and me
I am a normal, work from home mom, who started my own home business working from home. This article will show you how you, too, can be a work from home mom.
After I gave birth to our first baby, Hana, I really couldn't see myself going back to...
Keeping Abreast Of Your Domain ...Updates and Keeping Up With It All
Another major complaint that most business owners have is all the reading they need to do to keep abreast of what is happening in their business area. Again time management and organization can be a tremendous help.
Be sure to put your...
Leadership Skills for Challenging Times
Leadership Skills for Challenging Times By Ed Sykes ©2003 We consistently face new and ever growing challenges in the workplace such as reorganizing, downsizing, and “left out sizing.” We are faced with the question, “How do we lead in this storm...
The Dismal Mind - Economics as a Pretension To Science
It is impossible to describe any human action if one does not refer to the meaning the actor sees in the stimulus as well as in the end his response is aiming at.
Ludwig von Mises
I. INTRODUCTION
Storytelling has been with us...
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Don't Eliminate the middle man add one
Don’t Eliminate the Middle Man-Add One!
Today, there are situations when we actually add a “middle person” instead of eliminating one for increased service efficiency. If it’s cost-effective and demand is high, then proper market positioning will make it a worthwhile endeavor. For example, my sister just informed me of a food delivery service in New Mexico that will let you choose one out of many different food outlets (all types of ethnic/fast food)- and then guarantees delivery within a specific time period. This not only gives the customer assurance of reliability, but more choices for dining take –out style.
In other areas of industry, the same idea holds true. There are electrical suppliers that no longer manufacture the product of electricity, but now are involved only in the delivery process of electricity to the customers. Because of market fluctuations, the new delivery supplier will utilize many other different energy suppliers to get the product of electricity to the customer efficiently and at the best market price. Again, adding the middle man seems to benefit all around.
In relating this theory to restaurants, it is the food runner that has become popular, especially in the larger dining establishments that rarely existed years ago. Food runners are employees who only work the rush hours of the dining room- only running food back and forth from the kitchen to the tables with light dining room table interaction (condiments, fresh pepper etc.). It is a 2-4 hr. shift, depending on how long the dining rush lasts.
Before large restaurants
existed, the waiter would complete the process of order taking and delivering of the food. Today, the food runner can be implemented (additional middle man) relieving the waiter of this time consuming and sometimes painstaking process. The waiter must share a percentage of his tip with the runner, but in return his job is eased because the food is delivered for him- allowing extra time to work more tables and up sell to customers thereby increasing sales. Though, it does remain the waiter’s responsibility to check the table for additional diner needs-- either while the food is being placed by the runner or shortly thereafter. The tip-out to the runner is usually 10-15% depending on the service system, but well worth it if waiter sales can increase by 20-30 %.
The main point is the food runner addition improves delivery service efficiency while being cost-effective (if the sales increase outweighs the payroll increase). Properly integrating employees into the dining room with exact middle man connections always makes for smooth service flow. It’s not a matter of just blindly throwing extra employees at a service problem, but organizing the best system possible with the minimal amount of labor.
Adding the middle man can sometimes streamline operations in such way that it becomes irresistible and impossible to ignore. Always, the demand arises when delivery routes of a service system become overloaded.
About the Author
>Richard Saporito, President, Topserve Inc.
www.topserveconsulting.com
info@topserveconsulting.com
888-276-4808
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