How can Nandos increase its Productivity Essay Example

How can Nandos increase its Productivity? Essay Nandos is a restaurant chain which is all over the world. Nandos first began in 1987 as a small restaurant near Johannesburg in South Africa, although it has a Portuguese theme. The Founders of this restaurant were Fernando Duarte and Robert Brozin. Nandos is worldwide with restaurants in over 400 different locations. Although the Nandos in the UK was set up by Robbie Enthoven and Capricorn Ventures in 1992.These Nandos were set up as a stand-alone company and is set apart from its original restaurant in South Africa. In the UK alone Nandos has over 100 branches. Nandos is a quick serving restaurant which specializes in chicken dishes and other Portuguese foods. Each branch has a basic design which is then adapted and changed according to that branch and its location. The branch I have chosen to look at specifically is Nandos at Bluewater Water Circus. This restaurant is near the Showcase cinema in Bluewater Shopping centre. (Full address can be found in Appendix). There are two Nandos restaurants in Bluewater Shopping centre, the one I will be looking at is the first one that was built there. This restaurant is in an area where there are other restaurants of all sorts; fast food, Spanish restaurant, Chinese restaurant and many more. This shows that Nandos is located in a popular place, but also has to compete with many restaurants to get customers in. We will write a custom essay sample on How can Nandos increase its Productivity? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on How can Nandos increase its Productivity? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on How can Nandos increase its Productivity? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Main Investigation Every business no matter what they do have an aim which is to stay competitive in the market and be aware of their competition. Productivity is output per worker or output per machine to see how efficiently your employees are working and how well your business. Productivity can be calculated by looking and measuring a various number of things. The main point when looking at productivity in a business is looking at how effectively and efficiently the input (resource) turns into an output (good or service). Even when productivity increases the implications it has on different parts of the business are different. The main reason for measuring productivity is to find out or to realise the main areas that need improvement, those areas which have strengths and those which have weaknesses. One way of measuring productivity is by counting the amount of customers. This is a simple but yet effective of measuring productivity as it can be done without doing any calculations. This allows you get a basic idea of the amount of customers that are coming in. By using this as a way of measuring productivity you must do this during regular intervals so that you have something to compare your data to. With this data you can then further investigate why there are more customers at that certain time of the day. There are a few disadvantages to this, one of which is that mistakes can easily be made. Some businesses have overcome this problem for example in some shops there are automatic customer counters which count the amount of customers which have come into the shop. If customer counting is done manually it can become time consuming, so it is not a quick and efficient way of measuring of productivity. Also this way of measuring productivity cannot be used in all businesses, for example this would be pointless in a factory as you dont get customers walk in and out of a factory. This would be good for a shop or a restaurant as you get people come in and out all the time. Return in Capital Employed (ROCE) shows how much profit the business is making in comparison to the amount of capital that is put in the business. The higher the ROCE the better the business is doing as this shows that more profit is being made in contrast to the amount that is being invested into the business. The main advantage of measuring ROCE to check productivity is that it is a way of telling how well the company are spending their money in comparison to the profit they are making. Another advantage is that the figures are easier to compare as they are in percentages. A main problem with ROCE is that you cannot see how productive an individual worker or individual machine is, it shows sales compared to money being spent. It does not show sales compared to individual worker input. Special offers are a controversial way of measuring productivity as some people may say it is not efficient and others may say it shows them what they want to see. This can be advantage as it allows you to see if the offers actually have an effect on the productivity, if the sales are increasing with the offers then this shows that productivity is increasing. To further this if the special offers have an effect and are bringing in more customers you can then see if the workers are able to cope with the rush hour. This can allow you to observe every worker individually on the job. Although, when using special offers as a way of measuring productivity you have to ensure that you are still making profit. Also different offers may focus on different areas of the business and cannot be applied to everything. The productivity of the business will only change during the time that the special offer is on, so productivity may stay the same during the time that the special offers are not on. Again special offers can vary in every business so they may be used for different things. Another way of checking productivity is by checking how much a machine or worker produces under a certain time limit. This allows you to see and observe every individual; the main problem is that it is time consuming. This helps you to see whether that specific machine needs repairing, replacing or updating. When observing a worker and measuring how much they can produce under a certain time limit you can get an understanding of how much each worker is producing in comparison to each other. However, this does not help to show how much of the input there is of an individual worker compared to the sales of the company. Another disadvantage of this is that this way of measuring productivity can only be used when looking at productivity in a work environment such as a factory, when marketing it is not always ready for the consumer to purchase it immediately this is where restaurants are at an advantage where they can market and produce the food.