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jerryking : operations   10

Why McDonald’s All-Day Breakfast Was Years in the Making - Eater
by Tove Danovich Sep 25, 2015,

Most customers pay little attention to how the McGriddle is made, so to speak, but setting up a program like the all-day breakfast takes more than just marketing. In addition to years of talking about putting this plan into action, stores across the country spent months testing all-day breakfast and straightening out any flaws. Even once a plan was implemented, it was up to more than 3,000 owner-operators spread throughout the nation to upgrade and reorganize their kitchens for the menu change.
all-day  breakfasts  McDonald's  fast-food  QSR  operations  franchising 
january 2017 by jerryking
Why Starbucks Might Be Innovating Too Fast - Barron's
By Alex Eule Jan. 26, 2017

Big Picture: Starbucks is seeing rapid success with its mobile ordering system, but it might be coming at the expense of in-store service.......The company now has so many customers placing advance orders via smartphones that some of its stores are having trouble keeping up.... “mobile order and pay” made up 7% of U.S. transactions in the latest quarter, up from just 3% a year ago.

But, it turns out, the existing stores haven’t been set up to handle the changing consumer behavior.

(From personal experience, I’ve noticed that Manhattan Starbucks counters are often over-filled with advance orders and those customers walk in and out, while the wait for in-store service is now longer than before.)

Starbucks president and chief operating officer Kevin Johnson, who’s set to become CEO in April, told investors that smartphone order volume has “created a new operational challenge...significant congestion at the handoff point. This congestion resulted in some number of customers who either entered the store or considered visiting a Starbucks store, and then did not complete a transaction.”
innovation  Starbucks  congestion  handoffs  in-store  order_management_system  mobile_applications  smartphones  consumer_behavior  operations  wait_times  brands  large_companies  shortcomings  revenge_effects  the_big_picture 
january 2017 by jerryking
Why McDonald's Shouldn't Rush Its Digital Platform -- The Motley Fool
Asit Sharma (TMFfinosus) Mar 23, 2016

McDonald's has been late to join quick-service operators in offering a mobile app. Consumers in the U.S. are developing an expectation that they can order, receive affinity (loyalty) points, and interact socially with a brand simultaneously on a mobile device, and McDonald's risks losing millennial customers if it doesn't gradually build its own system.... some risk in relation to a mobile-based affinity program. McDonald's already uses extensive national and regional promotions, through its evolving value menu and limited-time offers. Affinity programs, if not properly implemented, can become simply another discounting mechanism, and McDonald's doesn't need yet another window for passing on discounts. The point of a well-run affinity program is to mine data collected on customers to improve sales or profits, or both. ...an interesting problem that's delaying the introduction of an "order ahead and pay" component to the McDonald's app. Roughly two-thirds of McDonald's U.S. business is transacted at the drive-through. Theoretically, if a customer orders ahead on McDonald's mobile app to pick up food at the drive-through, it's self-defeating for that customer to wait behind other cars in the line.

The company is experimenting with solutions such as designated parking for drive-through customers who order ahead. In this scenario, a customer would wait in his or her car while an employee hand-delivers the order. This is functional, but you can see the implications for McDonald's throughput at peak hours, as employees leave their posts to wade out and make parking-lot deliveries.

McDonald's executives would be loath to admit it, but I'll wager that quandaries like this make them wonder if they really need to inject a digital platform into an operation that's been optimally refined over the course of decades.
McDonald's  digital_strategies  platforms  fast-food  operations  mobile_applications  QSR  drive-throughs  restaurants  millennials  self-defeating 
january 2017 by jerryking
Four principles of operational excellence - The Globe and Mail
HARVEY SCHACHTER
Special to The Globe and Mail
Published Tuesday, Aug. 05 2014,
COO  Harvey_Schachter  operations 
august 2014 by jerryking
The COO—An Enigma to Many | Venture Philanthropy Partners
When contemplating the COO role, it’s important to focus on substance over form. Specifically, the title of COO (the form) is much less important than an organization coming to grips with its need for effective operational management—that is, the management capacity (people, systems, and know-how) that allows an organization to ensure that its “trains run on time” (the substance). And, the colloquialism of the “trains running on time” means that things run effectively and efficiently, within budget, and with the information to know in a timely manner when they are (or aren’t) doing so.

But, an important caveat for good operational management comes from a favorite Druckerism: “It is more important to do the right thing, than to do things right.” I’d prefer a nonprofit producing meaningful, lasting outcomes for children and families that is an operational disaster to one that is “well-managed”, but having only incremental benefit in helping those they serve.

Effective operations must yield improved results. In business, this is measured in profits, market share, low employee turnover, and satisfied clients.... operational effectiveness? Well-written job descriptions, elaborate policies and procedures, human resource management guidelines and handbooks, expensive software systems, and a score of other things, in all honesty, have little to do with it. These are merely symbols, not the essence of good operations. If you have a clear vision of your work that is commonly shared, if people know what to do, if they care deeply and are well-trained and equipped for their work, if they feel respected and heard, if there is good internal communication, if programs are of high quality, if leaders demonstrate a continual need for the organization and those in it to improve, and if you establish a rigor and integrity in how all of this is managed by using timely, factual information and managerial common sense—then you can have “good operations.”
COO  executive_management  operations  Peter_Drucker  on-time 
july 2014 by jerryking
Operational Expertise Makes the Difference
Fall 2004 | The Journal of Private Equity | Peter L. Tourtellot

In the last decade, companies in need of innovative change-agents learned to look outside their industries for new chief executives. These leaders were just what the companies needed: outsiders with a fresh perspective that
encourage strategic and organizational change. When a company is in distress. it needs to make drastic changes An industry outsider. with a wide range of operational experience is in the best position to get a handle on the root causes of trouble and identify applicable solutions from other industries that may never have occurred to the faltering company. Simply put. the need for industry experience in a turnaround situation is a myth. An industry outsider is the best source for the out-of-the-box thinking needed to reverse a company's decline.
turnarounds  execution  CEOs  private_equity  change_agents  industry_expertise  expertise  operations  outsiders  decline  out-of-the-box  fresh_eyes 
august 2012 by jerryking
Growing army of experts that can help a company rebound
Mar 19, 2007 | Financial Times.pg. 2 | ROSS TIEMAN. A new batch of firms looks beyond finances to operational issues.
turnarounds  AlixPartners  Kroll  FTI  Alvarez_&_Marsal  operations 
june 2009 by jerryking
Consumed - Work Study - How to Create a Million-Dollar Business Before Graduating From College - NYTimes.com
April 10, 2009 | New York Times | By ROB WALKER. Profiles, a
23-year-old Dominic Coryell, a senior at Northeastern University, who
runs Boston-based Garment Valet. in 2008, Garment Valet booked $950,000
in revenue with 14 full-time employees.
entrepreneur  logistics  operations  value_propositions  Colleges_&_Universities  college_moguls 
april 2009 by jerryking

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