Pestro's Restaurant: Business Development and Improvement Report

This report provides a comprehensive analysis of Pestro's restaurant, identifying key areas for improvement. It examines various aspects, including recruitment, floor space, and e-commerce operations, recommending the SERVQUAL framework and Kaizen model for continuous improvement. The report highlights the implementation of the HosPOS Tableside system, a new integrated ordering and POS system, to streamline operations and enhance customer experience. It includes a cost-benefit analysis, risk assessment, and a business innovation proposal for the system's implementation. The report also outlines key result areas (KRAs) and KPIs for performance evaluation, along with a transition action plan for successful implementation. The analysis suggests that the project implementation aligned with the overall plan, resulting in enhanced customer service, increased staff retention, and improved business operations.

REPORT

Table of Contents
PART 1............................................................................................................................................1
PART 2............................................................................................................................................1
PART 3............................................................................................................................................2
PART 4............................................................................................................................................4
PART 5............................................................................................................................................5
PART 6............................................................................................................................................6
PART 8............................................................................................................................................7
REFERENCES................................................................................................................................9

PART 1
a. Recruitment, the floor space of the restaurant and e-commerce operations.
b. SERVQUAL framework of service quality is recommended.
c. Kaizen model of continuous improvement can be applied and implemented for improvement
of the restaurant's performance
d. i. Checking if guest has a reservation and tear off all pages related to order number and
provide to kitchen.
d. ii. Purchasing in bulk at one time
d. iii. Reduce sales, decrease loyal customer base, decline in profit margins, and decrement in
goodwill
e. i. Employee retention – KPI for customer service
Alternative KPI – Number of orders in a day
e. ii. Customer satisfaction, staff retention, profit and sustainability are the Key Result Areas. In
this relation, it has been analysed that these are varying from the targets in business plan by a
significant margin. This signifies the scope for incorporation of improvement.
f. i. STRENGTHS – Unique menu, increased capacity for seating
WEAKNESSES – High food costs, high rental costs
OPPORTUNITIES – More plant based products, reduction of ingredient cost by reducing
reliance on imported ingredients
f. ii. Just in Time approach, refrigeration and e-commerce opportunity
PART 2
HosPOS has developed an integrated ordering and POS system, called HosPOS Tableside
whose features are discussed as follows:-
Restaurant
Table
Management
 The built-in restaurant table management software within the proposed
system of HosPOS allows the restaurant's organization of its floor plan
as well as tracking the orders of customers via table
 This allows the management of multiple areas of the eatery.
 Thus enables the servers to make savings of their time by expending
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lesser amount of time at POS.
Integrated
Payments
 Elimination of the dual entry as well as reduction of error via POS
integrated solution, thus making it easy to run the business operations
 Provision of excessive choices to the customers, providing assistance to
them and securely making the payments with the usage of card, Google
Pay, Samsung Pay, Apple Pay, and so on.
Restaurant
Inventory
Management
 The system eases the process of inventory management by virtue of the
characteristics as well as features like sales trend tracks, food cost
tracks, menu engineering, stock level tracks, and so forth.
Tableside
Ordering
 The ordering process of the proposed system allows the customer base
to browse the restaurant menu and place orders in a direct manner to
kitchen by making use of tablets as well as computers. The menu will
be full of price, nutritional data, images of the food and beverage items
to make the choice easy for the customers. The system is user friendly
so as to ensure that the non-tech savvy individuals as well as the first
timers do not place any kind of issue while placing the orders for food.
 The order is directly communicated onto the kitchen as well as the main
terminal for ensuring the easy checkouts and processing.
 The customers will have the option of contacting to the wait staff via
the usage of Tableside tablet, and consequently decreasing the wait time
for gaining the attention of the server.
PART 3
a. i. Employee surveys will be conducted to obtain feedback
a. ii. Survey will be conducted once in every 3 months
b. i. Market size, ability to generate cash flow, feasibility
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b. ii. Certification
c.
CEO and
Head Chef
Taking important business decisions and implementing the same
Director-
Operations
&
Finance
Taking decisions related to concerned specialist areas of business
Chef Guiding the cooks and ensuring timely delivery of orders
Restaurant
Manager
Managing the overall operations of the restaurant
Marketing
Manager
Carrying out promotional, advertising and marketing activities of the business to
create awareness of the brand and its offerings among the people
Cooks Preparation of food
Kitchen
hands
Responsible for providing all kinds of assistance to the people engaged in
working within the premises of kitchen
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Wait staff Responsible for having conversation with the customers who are waiting for their
number to come in terms of getting the meals
Bar staff Responsible handling of food as well as alcoholic content
PART 4
Every organisation operating within the commercial world in the present time desires to
improve itself in accordance with the situations as well as circumstances prevailing within the
market place. Continuous improvement and innovative thinking is largely aimed at driving the
performance of the employees as well as the organisation in way such that positive results can be
obtained in the long term. In this relation, it has been analysed that continuous improvement and
innovative thinking allows an organisation to facilitate the improvement of the business by virtue
of streamlining the organisational operations in an effectual way. The direct impact of the same
over the company is a better reach to the people in market and improvement in the financial
performance of the firm.
Pestro's is encountering several problems at the current time. The biggest problem is
related to staffing which is inadequate to meet the demands of the customers in the premises of
the restaurant. In addition to this, it has been analysed that floor space is less to accommodate
more customers or more employees as per the WHS hazards. Another problem is lack of an e-
commerce platform for the firm to make the customer orders delivered via the usage of an online
channel. Yet another issue that is being faced by the restaurant is the food wastage because of
bulk ordering of raw materials and bulk preparation of food as the restaurant is incapable of
predicting the overall customer demands.
The solutions collected as a result of the brainstorming session are:-
 Adopting Just In Time approach
 Opting the e-commerce way of delivering the customer orders
 Recruiting fresh talent to collect innovative and unique ideas
 Better management of floor space area by changing the layout of the floor
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PART 5
(a) A Cost benefit analysis of installing new server as HosPOS Tableside system for determining
its feasibility.
Considering the set-up costs for purchasing, installation and staff training, including
ongoing costs, it has analysed that this would help in reducing waiting time faced by customers
currently in present Presto restaurant. Through offering online ordering without much waiting
time, will increase 11% to 20% on an average increase in sales. This will also in branding with
increasing quality of service delivery, that further aid to gain customer satisfaction, employee
engagement and company image as non-financial benefits.
b) Risk Analysis with contingency measure
Risk Likelihood Impact Contingency
measure
Cybersecurity or
privacy threats
4 The threat of
cybersecurity is high on
online ordering system,
where interaction
between customers and
Presto’s management
for reservation with
advanced mode of
online payment, time-
stamped tokens and
more, will impact
negatively on entire
business, with loss of
customer’s trust.
Install hardware,
software and
licenses for the
HosPos system
Talent risks 3 With deployment of
new technology,
neglecting to upskill the
Provide training to
upgrade skills of
staff
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workforce will lead to
decrease quality of
services, as well as it
may arise failure in
employee engagement
also.
c) Business Innovation Proposal the CEO’s approval
Project – Implementation of HosPos Tableside system
Goals –
 To overcome from issues related to waiting time of customers in restaurant
 To create innovation in online ordering system at financial, operational and
environmental base of sustainability.
Specification –
 Elimination of the dual entry as well as reduction of error via POS integrated solution,
thus making it easy to run the business operations
 The ordering process of the proposed system allows the customer base to browse the
restaurant menu and place orders accordingly
Milestone –
Threat of cybersecurity and talent risks
PART 6
a) Priority for upgrading skills by providing training to staff, for employee engagement
b)
(i) & (ii) Key Result Areas (KRA) and KPI –
Performance appraisal with more employee engagement
Management in multiple areas of eatery results in reducing workload
Customer satisfaction considering the increase in sales on an average with 11% to 12%.
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iii) For first KRA, one month will be taken, while for second and third targets, more than 6
months will be required.
c) A transition action plan
Transition Activity Action Person Responsible Due Date
Installation Replace existing ones IT Executive First week
Install with proper
change in
infrastructure
IT Manager Within First week
Training Basic skills will be
identified first
Leader Second week
Given on-going
training
Manager Within second week
Testing Observe the
performance
IT Department Third week
Feedback will be
taken
Marketing
Department
Within Third Week
Implementation Make changes in
system as per
feedback
IT Department Fourth Week
Organise and
implement entire
resources
Operational
Department
Within Fourth Week
PART 7
a. i. The analysis has led to the inference that the KPIs are being met in accordance with the
targets
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-1% customer complaints
15% annual staff retention rate
Exceed 10% profit margin by 2021
100% of all produce purchases to be made
locally by second quarter FY2019
Reduce landfill waste (currently averaging
two full 660 litre. general waste bins collected
twice a week) by half by using FIFO and
waste management principles
b.
PART 8
a. The comparison has yielded the inference that the project implementation took place in
accordance with the overall plan. The benefits accruing from the project are exceeding the cost
invested in the overall project.
b. The initiative undertaken by Pestro's has resulted into:-
 Enhancement of customer service
 Increment in staff retention
 Prioritisation and inclusion of sustainability in the business operations
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c. From the overall project, it can be assessed that the project has been effective in terms of
resolving the issues found to be prevailing in the bounds of Pestro's.
d. i. The two things that worked well were communication and time management owing to which
the project could be completed in a timely manner
d. ii. The allotment of duties in the project team could be improved to avoid discrepancies
d. iii. The suggestions for future projects are that better allotment of duties in the project team
and collaboration can be facilitated to achieve improved results
e. i. Streamlining of the business operations
e. ii. Management of overall cost with the implementation of system
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REFERENCES
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