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Six Sigma and Resturants

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  • #51039

    k2009
    Participant

    I am a  Six Sigma Black Belt and wondering what methodologies should I use to turn a resturnat around, for the last three months the store has declined 20%-30% monthly before I was asked to assist. The biggest issue is cost. management has been replaced. I thought deploying Kazien in addition to TQM. In The Six Sigma atmosphere. Please Help. pleaes email @me.com">k2009@me.com with suggestions.
     
    Thanks Much!

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    #176361

    Rajeev Chadha
    Participant

    Apply simple 5S (Or 6S, 6th S is Safety) for work place organization  & start pricking the low hanging fruits first.
    Be precise while setting your -Sort-Shine-Set in Order-Standardize-Sustain-Safety Targets/goals.Train employees as much as you can. Soft Skills (Interpersonnel, communication, Smily face..etc.) are far more important than Hard skills(Statistical surveys, TQM, DOEs, Forecasting etc..). Start Auditing your system on a regular basis after first week.
    You will see Amazing Results.
    Wish you all the best.
    Rajeev

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    #176364

    Clive
    Participant

    VOC – what do your customers want? why are they going away? Make sure what your producing is what they want and if it is then fix the process if it isn’t get them to change.

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    #176366

    Fontanilla
    Participant

    Hi – This is not a Six Sigma project, this is a consulting project. I would start by benchmarking against other restaurants. Is everyone having the same problem?I would look at my cost structure, can some fixed costs be converted to variable costs?I would look at which menu items are more profitable. Can less profitable items and services be eliminated?Finally, look at your customers. Are they the “right” customers? Are they profitable? Make sure you get good customers, and discourage customers that cost a lot to serve (they only eat cheap items, no drinks or desserts, etc)Good luck

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    #176369

    annon
    Participant

    How about first defining what it is you are trying to accomplish?  How is the restaurant going to combine its own unique combination of assets to create a competitive edge in the local market place?  Now develop a relevent system of performance measures that allow you to deploy said strategy…..now you are in a position to start assessing and selecting project ideas….this is a strategy deployment issue on a small scale…look into hoshin planning and balance scorecarding….LSS comes after that….my two cents.

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    #176379

    Perryman
    Participant

    you wrote : “for the last three months the store has declined 20%-30% monthly before I was asked to assist. The biggest issue is cost. management has been replaced.”
    What has declined? Sales? Profit?
    You’ve had some suggestions, but maybe to the wrong problem..
     

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    #176380

    Robert S
    Member

    k2009, I agree with Patch. If your business has experienced a 60 to 90% decrease in revenue over the last 90 days you’ve got some serious stuff going on. SS isn’t about to fix this kind of problem. Nor, is this a cost problem.
    Either a new freeway now takes people around your outlet or you’ve been written up for serious Health Dept violations or someone died from food they ingwested in your restaurant or employees are stealing from you or some other major event has occurred.
    Just open your eyes…a problem of this scope should be immediately visible.

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    #176385

    k2009
    Participant

    THANKS

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    #176386

    k2009
    Participant

    I have began to implement those tools and they are working great, It has only been three days and sales have  increased by 15%. In some stores the process is working and effective. Thanks for the advice to all who have helped. I will contunie to keep you all updated, unitl I receive the final results. Thanks a Million!!

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    #176415

    Vilas Chirmade
    Member

    Dear Sir
    Exactly what are you looking for restarunt around? You have written that it has 20 to 30 % declined. what is this 20 to 30%. are they customers? or you are talking about the profit of the restarunt. If is is profit of interms of finance then you have to look in to finantial data and find out where you are spending more and the ways to bring down these expenses which finally will increase the profitability.
    Or if it is interms of customers, then you have to look why your customers are unhappy and make the customer survey. where you can find out your lacunas/ shortcomings in services. You can ask for suggestions or you can lookback to your frequent complaints done by the customers.or you can have spetial offers to attract the customers.
    Regards

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    #176416

    Craig
    Participant

    Location Location Location
    Good food at reasonable costs
    Good service
    Good atmosphere
    You can’t fix the top one on the list very easily, but the others are what you should look at.
    What changed over the last 3 months? Fewer customers, same customers but everyone is ordering from the kids menu?
     

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    #176419

    Tim Gaburungyi
    Member

    How long has this restaurant been open and what changed 3 months ago before the 20% to 30% monthly decline in sales or revenue started? Restaurants by nature get the bulk of their business from Brand name recognition e.g Morton’s Steakhouse or as a result of referrals from neighboring hotels and institutions or past customers and most importantly repeat business. Has anything changed to affect the production from these channels? Is there a new competitor in town? VOC? You said a big issue is cost, Restaurants have a metric known and food cost and Beverage cost, that would recommend pricing for menu items. How healthy is that? Why was management changed anyway? Did they take the business with them? This need not be a deep six sigma project.

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