Operations and Material Management in Food Service

Introduction to Operations and Material Management

Operations and material management is essential for all businesses. This paper provides information on how operating systems produce the goods and services that customers acquire when they patronize businesses. Three companies have been selected as case studies to examine their operational approaches: Chipotle, Roundtable Pizza, and AM/PM Convenience Store. By analyzing the staffing, training, and operational procedures of these businesses, we can understand how different industries design systems to meet both company and customer needs.

Chipotle Operations and Structure

Chipotle maintains a casual work environment while delivering consistent speed and quality typical of fast-food restaurants. Although the better food costs more money, consumers are willing to pay a premium price for a superior product. Chipotle has developed procedures and training plans that managers are required to teach for every position they hire. Each worker is responsible for one or two steps in the assembly process and then hands the product off to the next team member.

The production inputs—rice, beans, meat, and salsas—are prepared in the kitchen area and delivered at the command of the line workers. While this is not glamorous or well-paid work, there are clear opportunities for advancement. A majority of salaried managers are promoted from hourly wage positions, and the best managers advance to become restaurateurs—supermanagers who oversee multiple stores.

Management responsibilities at Chipotle are extensive and multifaceted. Managers create schedules for all staff and cover shifts when employees are absent. They ensure that employees are working well together and completing their assigned duties in a timely manner. The drive-through operation is particularly important for ensuring food reaches customers quickly and accurately. At the end of each shift, management ensures the kitchen is cleaned and organized for the next day. Additional duties include ordering low-stock food items and counting the register at shift end, along with making daily deposits for the business.

Roundtable is a pizza restaurant known for gourmet quality and fresh innovation. Upon hire, employees receive an employee handbook. The restaurant maintains an onsite prep book to ensure certain foods are cut, stored, and handled properly. Employee training is conducted within the first two weeks of employment and covers all aspects of making pizzas, providing excellent customer service, and opening and closing procedures.

Roundtable Pizza Operations and Structure

Employees at Roundtable are also required to obtain a food handler's card to work at the restaurant. During the two-week training period, employees learn how to work the pizza line—placing and weighing toppings, cooking pizzas, preparing the salad bar, making appetizers, and taking phone and online orders. Staff also receive training on cleaning, sanitization, and other operational tasks.

Roundtable's organizational structure includes a Store Manager, an Assistant Manager, four Supervisors, two Crew Leaders, and twenty Crew Members. Crew members are responsible for taking orders, making pizzas, cleaning, and performing other assigned tasks. The Store Manager handles scheduling, hiring, performance and discipline issues, payroll, and ordering. The other managers manage inventory, ensure crew members perform their tasks, take orders, handle delivery and complaints, and arrange catering or special events.

AM/PM is a retail convenience store that sells gas and snacks and operates 24 hours a day, seven days a week. The staffing consists of one store manager, two assistant managers, and six sales associates. Scheduling divides staff among three shifts: the first shift runs from 6 AM to 2 PM, the second shift from 2 PM to 10 PM, and the third shift from 10 PM to 6 AM. Two staff members work during each of these shifts. The store manager works Monday through Friday from 6 AM to at least 2 PM.

AM/PM Convenience Store Operations

Employee tasks at AM/PM include cleaning, stocking shelves, tracking inventory, and providing excellent customer service at the cash register and throughout the store. Management operations consist of scheduling staff, conducting discipline and performance evaluations, ordering supplies, training, inventory control, and banking procedures.

The main categories of operations and material management costs for companies include hiring quality people to manage, deliver, and inventory products; initial training; and ongoing annual training. Companies design their own operating systems to fit both the company's needs and customers' needs. They conduct several tests initially to determine which operational procedures work best for employees. Over time, companies work with these systems, master them, and continually fine-tune and improve them.

OMM Costs and System Design

When products are unavailable, defective, or improperly made, it significantly affects OMM operations. Products that cannot be sold or utilized result in lost revenue and profit. Companies design their operating systems to gain competitive advantage and to ensure that employees are trained to produce work at their highest potential. Inventory management and end-of-month sales are crucial when monthly reports are compiled.

Employees who interact with customers play a crucial role in determining how many customers the business attracts. Do they offer excellent customer service, or are they rude and inattentive to customer needs? The quality of service provided by staff and their training directly influence customer loyalty and retention. Better training and service quality keep customers coming back and build business reputation.

Most of the OMM costs that companies incur are significant. Training materials and operations manuals are expensive investments. The products the company must purchase are also costly. If companies hire external trainers to conduct employee training, costs increase further. In certain industries, additional requirements must be met, including food handler's cards, specific uniforms, and specialized training programs.

Conclusion

The five main sources of operating costs are costs of raw materials and components, plant, labor, inventory, and distribution. Understanding and managing these costs effectively is essential for business success and sustainability.