Retail, Hotels, Pubs and Catering

Put your “Best Manager” in EVERY store or restaurant. This methodology rolls out “best practice” to all outlets in the group. We offer a FREE TRIA Analysis to test the outcome.

SYSTEM 21  has developed a centralised labour model that delivers significant savings at group and single outlet level.  The model uses a statistical base to forecast workload for all activities, per hour of the day, per seasonally adjusted day and turns it into a schedule for “whole shifts” for all staff and managers. Each outlet is thus optimised individually.

To determine the potential savings possible to each new client in this sector we will undertake a FREE TRIAL Analysis to assess the viability for your business and to make some physical observations of the time it takes for sample activities at outlet level.  Even if you have “no data”, we can work out the savings from the typical “pattern only” shape of footfall in each type of outlet.  To generate and maintain the savings, your Senior Managers then populate the model with actual data limited to footfall and the recording of staff as full time, part time, leavers or starters. The whole data set integrates completely with the payroll system.

The typical savings are HUGE !  This also provides complete confidentiality of key indicators.  There is no input of sales, turnover, margin, product cost or even labour cost.  Once the model is developed, we need only schedule one or two stores from each pattern type to “set the levels” and then link it to the labour roster.

Let us have a look at the business and we will tell you what we can do and how long it will take. 

FREE TRIAL ANALYSIS  - NO OBLIGATION

The Free Trial Analysis is quick, confidential and unobtrusive and could identify savings for groups of stores, restaurants and any other multi-location company, in the region of 10% of current cost per annum, which over a three year forward period, would deliver savings up to 50% of current costs, or more.   

We will only make a Project Proposal to a client if the projected benefit has a viability value of more the 3 times our fee.  In many cases the actual return in as high as FIFTEEN times our fee, in year one !  

CASE STUDIES : RETAIL and MULTI OUTLET

A major international PLC gave us one of their smaller businesses as a “trial”.  In 5 months it was turned into one of their best performing businesses and has even featured on TV.  It is still delivering substantially more profit than other similar companies despite the recent / current recession.  We have since done 4 more similarly successful projects for the same PLC.

As a planned disposal of non core, break-even businesses, another well known PLC used SYSTEM 21 to “revitalise” savings from a group of pubs and restaurants prior to three separate management buyouts and another trade sale. The projects resulted in significantly higher than expected completion values as a direct result of the savings delivered from the projects.

An example of the ANALYSIS stage presentation is shown below and takes account of performance variance within the group, minimum size of outlets, base roster and other constraints.

During the Free Trial Analysis of a major European Retailer it was identified that the store and restaurant managers spent a large amount of their time managing the start and finish times of full and part time staff, new starters and leavers.  This was causing less attention to other operational issues and a frustration that they were “overworked”.   To eliminate this problem, the model produced the staffing plan as shifts, A, B and C whereby shift A and B were auto scheduled by the SYSTEM 21 model.  Only shift C staff had to be “managed” during the day to fine tune the schedule which meant the managers had far more time to run the business.  In addition, the model generated over 8% (£4.2m) annualised savings.

Similar solutions were implemented in other client companies to assist even less experienced managers, or where there was a high turnover of staff.  For example, showing only the correct number of staff to be allocated on the schedule, with start and finish times.

 

 

The chart below shows some of the “variables” that are often held separately within a company in Finance, Operations, IT and HR.   The SYSTEM 21 model draws ALL the data into a single central location and then optimises it to produce the “advised” labour cost into any group payroll system. The local staff roster is then produced by the unit manager from the allocation of hours which ALREADY include the savings. The methodology vastly improves customer service levels, reduces wasted cost relative to past performance and integrates all the trend analyses into a sophisticated planning tool that is simple to use, both centrally for global planning, and at each outlet level.

It really is "PUTTING THE BEST MANAGER IN EVERY OUTLET."

 

 

CASE STUDY SUMMARIES

In retail group of leisure clubs and restaurants the labour cost was slashed by 18% relative to turnover, in addition to improved customer service and less customer waiting time at peak periods due to the optimisation model. The return on project fee was 13:1 in Year One

Another major investment bank engaged SYSTEM 21 to increase the market capital value of a well known Retail group prior to a trade sale. The value was increased by £ 300m in 10 months following a programme of cost reduction and profit restructure.

The SYSTEM 21 Retail Outlet methodology produces the most cost efficicient optimisation for all outlets whilst maximising customer service specific to customer footfall in each location. We also manage the roll out across the whole group and deliver detailed sales motivational training programmes and "one to one" coaching sessions for managers and senior staff. The savings and profit potential is significant.

CONTACT US for more information or email us at info@system21.co.uk

SYSTEM 21

SYSTEM 21 is a registered Trade Mark

SYSTEM 21 is ISO 9001 Accredited (British Standards Institute)

All text and examples are copyright SYSTEM 21 and may not be copied or reproduced without prior written permission .

Services Overview

Professional change management and transformation services, including full implementation of all recommendations. SYSTEM 21 has an enviable track record of 100% successsful projects.

  • - Profit improvement with full implementation
  • - Busioness diagnostics and transformation
  • - Change Project Management

Contact Us

To contact us please fill out a general enquiry on the Contact page, phone or email or text as below.

Address: 270 Castle Street, Dudley DY1 1LQ, UK
Telephone: +44 (0) 1384 456 760
FAX: +44 (0) 1384 456 348
text: +44 (0) 7767 297 661
E-mail:info@system21.co.uk