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The coffee’s a grind ... and how this hurt one business

You may be working hard at bringing in the income and keeping down expenses - but somehow things just aren't going the way they should. Sometimes it's not obvious what changes can be made, until you dig a little deeper.
Coffee
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Most businesses work hard at balancing their income versus expenditure, looking for ways to reduce their costs, often focusing on the more obvious areas like staffing and general overheads. However, there are details that can be overlooked or not easily seen or recognized in areas which would enable cost efficiencies, improve income or provide potential for resource reductions/savings.

A recent visit to a franchised food operation highlights an example of the impact on a business of an awkwardly positioned piece of equipment (coffee machine).

I was in the shop to have lunch, I pointed out my food selection at the counter to the shop assistant who then plated my food and moved to the till to charge me. I asked if they sold hot drinks as it was neither offered nor apparent. As they were available I ordered a coffee and paid for all my purchases. I had eaten all my food and the coffee still hadn’t arrived. I enquired with another shop assistant who apologised for the delay, gave me my coffee and a card for two free coffees on my next visit.

I was interested in identifying the reasons as to why this delay had occurred and by observing the people, processes, systems and some informal information gathering, it became evident.

The coffee machine was located immediately behind the counter, to the left of the walkway leading to the back kitchen area.  When the shop assistant served me he blocked my view of the machine. When a shop assistant was serving at the counter, the other assistant was unable to access the machine easily and safely. Written coffee orders were placed on the left side of the machine, out of view if you were walking through to the back. The coffee order was also verbally announced but as access to the machine was an issue when a customer was being served, the order was put aside while other duties were continued at the counter or out the back.

The location of the coffee machine and the processes involved in “selling” a hot drink were

  • creating significant productivity issues
  • affecting customer service
  • reducing sales
  • a potential safety risk
  • incurring additional expenses with free coffee giveaways
  • reducing profits

Staff members cited that continued difficulties with access to the machine and ongoing service delay complaints meant they were less inclined to prompt any hot beverage sales.

The shop was a reputable and recognized brand, a franchise business, in an accessible location, high pedestrian traffic and offered good quality food and value for money. Hot beverages are an integral part of a food business, providing additional income and profit to the core business. The staff members had ‘adapted’ to the difficulties by either not offering hot beverages or accepting the inevitable service complaints.

My informal review identified some immediate opportunities that could resolve and improve the situation

1 Comment

Comments

Phil Astley's picture

Coffee's a grind

What a simple example of an outside eye not being distracted by operations. Another example is an external eye saw that customers would pick up an item, and then a second. Having both hands full they'd then go to the counter. So they changed procedures. As soon as a customer picked up one ot two items, they'd then say "let me put that in a trolley". They had these trolleys before - but no-one used them. This simple change doubled their average sale value.

Phil Astley
www.businessacademy.co.nz

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About the author

Jackie Bourne's picture

Jackie Bourne is a partner in Outasite Consulting, a niche consultancy providing a range of business support and sports coaching services. Jackie specialises in business analysis and review – people, processes and systems. Her background is in operational leadership, process/system improvement & change management.