Expanding to multiple locations is exciting for every enterprise. But while there are many benefits to expansion, it can also bring on new operational challenges, as well.  Before expanding, it is important to assess your operations.  Whether you are a fast-casual restaurant, bakery, coffee bar, prepared foods enterprise, or any other type of food business, owning a multi-unit enterprise requires efficient, standardized operations that are clearly expressed and can be implemented in all locations.  As you expand, you as an owner cannot be everywhere, so staff will need to rely on protocols and you will need to rely on your staff.  In this month’s Enterprise Insight, we discuss key operational considerations that all expanding food enterprises should address.

The Big Picture

1)      Production

If you produce items in-house, such as pastries, sandwiches, or other foods, determine how your production will work with multiple locations.  Will each location set its own production schedule and order and produce for itself?  Will the original location produce for all stores? Or, alternately, consider a commissary kitchen if you plan to expand to many locations.

2)      Management Structure

Set up a clear structure for corporate management as well as for each retail outpost.  With multiple locations, you as an owner will likely go from managing your retail location on a day-to-day basis to overseeing the broader business strategy of your growing enterprise.  You may need to hire managers for each location.  Write out job descriptions and responsibilities, and specify decision-making powers, for each position in your enterprise.  This will keep the chain of command and responsibility clear for everyone, from your counter staff to your CEO.

3)      Reporting and Sales Analysis

Consider how your POS system will function with multiple locations.  You will want to be able to see the sales analysis for each location individually in order to optimize your product mix, production, and staff, for the target market in each location, as well as track revenue for each, so be sure to speak with your POS system representative to ensure you have the proper service and equipment and can retrieve and analyze the data.

The Day-to-Day

1)      Steps of Service

Steps of service guide your employees through the day, from opening to closing. Steps of service should also address guest service, including in-store guests, phone inquiries, and email inquiries.  They should detail how to greet a guest, take an order, ring up a guest, package products, and answer questions.  Detailed steps of service will ensure your guest experience is the same across locations and that your employees know and adhere to company standards.

2)      Catering and Wholesale Orders

Consider what system you will use to take and fulfill catering and wholesale orders.  Will each store fulfill its own orders, or will a central location fulfill them?  If the latter, consider how orders will be communicated to the producing location and delivered to the guest.  Regardless of which system you choose, be sure to write a clear order form and include the procedures in the steps of service.

By addressing these key points, you will be able to expand confidently and efficiently to your second location and beyond.  At the same time, you can be sure that your management and staff know what to do in all situations, so that you as an owner can focus on growing your enterprise.

Happy expanding…TaraPaige Group.