To: Patricia Lodge
Having reviewed the case study of Lodge Bistro Chain I have put together this informal report outlining problem areas within the business.
A lack of consistency and structure across the chain, this can become extremely problematic, employees need rules and procedures to ensure everyone knows what they are doing and what’s expected of them by the company.
A clear lack of continuity with the interior design of bistros - store managers whitewashing the wallpapered walls.
An aging image and concept, based on competition setting up a much more up to date look on a French bistro.
Lack of Regular communication, head office relaxed the frequency of audits from 8 page spot check reports being done at least once a month to infrequent scheduled manager meetings. If the manager knows you’re coming you will never see a true representation of the bistro.
High Staff Turnover in the East Cheam Bistro added with poor financial performance means bad management
I have decided to use the SWOT Analysis which is based on Capons work (Preston et al 2006) SWOT stands for strengths, weaknesses, opportunities and threats. Now when thinking about threats we need to consider the potential damage these could cause to your organization’s performance within the marketplace or the external environment.
The threat might come from an external factor like a competitor or an internal source such as bad management. We will go on to outline some opportunities I see moving forward to see if we can appeal to a wider market and of course your strengths, we need to touch on these so you know what you’re doing well so we can develop and grow them. Threats.
Growing competition in the sector in the form of restaurants, cafes, multiple fast-food chains, coffee bars, independent and chain restaurants, cafes in supermarkets and book shops. Even the French bistro concept had been copied and the chain Cafe Rouge had opened over 100 outlets across the country, all new and catering much more to the ever evolving needs of the consumer.
The Recession has caused your core demographic (older adult) who already spend less comparative to their younger counterparts to now spend even less.
Bad management, because you lost structure and allowed managers to make up their own rules standards slipped, experienced staff left and new staff jumped ship as soon as they became productive.
Established chain of 25 branches, the experience of your long term staff employed for a number of years, as well as the enthusiasm of younger and new employees.
I want to offer some ideas and opportunities I feel will help your business moving forward.
Take on board the opinions of both the new and existing staff, perhaps not fully bringing back the old strict approach, while retaining some of the modern relaxed approach will maintain high standards and keep staff happy.
Offer staff a set training