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COVID-19 BUSINESS SURVIVAL STRATEGIES

Waste Not, Want Not

8 Ways to cut costs and improve your bottom line going forward By Ken Burgin

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ombine these eight types of waste and the cost reduction will be considerable. Some are more common that others and some have never been considered as a real problem. Many managers attempt to fix problems or reduce costs by watching everything when the problem lies with the lack of standards, systems and consultation. 1. Overproduction Creating more product than needed. The enthusiastic bar staff who over prepare fruit garnished for the evening; salad trays are filled beyond what’s needed and too much meat is carved. Forecasting accurate sales of different products reduces this – overproduction is usually the default. 2. Excessive Wait Time Staff shouldn’t have to wait to do their job because of bottlenecks, shortages of equipment or lack of support. Insufficient glassware means drinks can’t be served while glasses are being washed. A deep-fryer that’s underpowered takes too long to cook chips and slows up service. Insufficient mise-en-place means delays for chefs.

3. Transportation This relates to the unnecessary movement of products and equipment such as carrying one box at a time instead of using a trolley to transport them together. When the bar is not set up for efficient service, with highdemand bottles a long way from where they’re required. A barista who has everything at hand can push product through quickly and efficiently. 4. Processing Waste Intentional over processing might be a barman creating a complex cocktail with far more garnish than the customer wants. Non-intentional over- processing is when an apprentice finely chops vegetables that will only be used for stock – no-one told him it’s not necessary. Both are repeated actions that add no value to a product or service. 5. Inventory Waste Over-ordering that results in spoilage or theft. Just because the salesman offers you a bonus box of wine if you order 10, doesn’t mean that it’s a good deal. 6. Motion Waste Unnecessary movement that does not

add value such as when untrained staff take longer to complete a task. Are there too many steps required to the roster or payroll? Can essential forms be found quickly on the computer? Do you need unnecessary approvals for standard ordering procedures? 7. Defect Waste When a product or service must be redone to meet a standard. It could be a human or equipment error. Failing to follow a recipe means mousses don’t set and failing to keep the oven in good condition means baked goods burn easily. Job interviewers don’t ask the right questions so unqualified people are appointed and must be let go. 8. Unused Employee Talent and Creativity The waste that’s far too common, from a failure to listen. Some managers don’t want to listen or think they know everything. Just because you are busy doesn’t mean there’s no room for improvement. If an employee notices an inefficient or unnecessary process, will they be listened to when they mention it to the manager? n HOSPITALITY BUSINESS - APRIL 2020 11

Profile for The Intermedia Group

Hospitality Business April 2020  

Hospitality Business is New Zealand’s independent source of news, insight, business advice and opinion for the hospitality and liquor sector...

Hospitality Business April 2020  

Hospitality Business is New Zealand’s independent source of news, insight, business advice and opinion for the hospitality and liquor sector...

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