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4 Classifications Of Public Retirement Systems
The Four Classifications of a Public Retirement System
It is that time in life that we all look forward to. It is time
to sit and relax and no longer have to worry about catching the
bus or missing lunch just to beat the deadline. It is that...
ENTREPRENEURS: Achieve more! 12 examples of Coaching and Consulting that lead to SUCCESS.
Consulting
Consulting taps into the expertise of the consultant's
experience. The client gains valuable insight that would
normally take years and thousands sometimes millions of dollars
if they were to go down the same path. Consultants...
How To Give Your Home A Face-Lift: The Sellers' Guide To A Quick Sell
One of the great challenges to selling a home can be showing all of its space, decor and natural light potential. For example, every home has crowded closets and dead space. Sellers should be aware that areas such as these are easy to...
Notes on the Economics of Game Theory
Wherever we have economic players bargaining for the allocation of scarce resources in order to attain their utility functions, to secure the outcomes and consequences (the value, the preference, that the player attaches to his outcomes) which are...
Small Business Valuation Primer
For simplicity's sake, this article will assume that the buyer will be acquiring a single business with possibly more than one location (for example a small Laundromat business with two locations). In addition, we will not be covering valuation...
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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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