Teppei Syokudo Improving Store Performance through Staff KPIs and Product Portfolio Mix
Current Progress
Data Exploration
Sponsor Background
Teppei Syokudo is a Japanese Food and Beverage chain, under the umbrella of the famous Teppei Japanese Restaurant. Teppei Syokudo operates as a takeaway kiosk concept, and specializes in Kaisendon, a bowl of barachirashidon (rice with raw fish), that retails for SG$16. It offers other dons (rice bowls), tonkatsu cutlets (fried pork), tempura (fried dishes) and sashimi salads.
The takeaway kiosk mainly targets lunchtime crowds, especially upmarket businessmen and women who are looking to grab a quick, healthy, and quality lunch.
Teppei Syokudo currently has outlets in 3 locations - Millenia Walk, Takashimaya, and Republic Plaza. The chain is planning to open another outlet in Ion Orchard soon.
Each outlet has its own shop manager, one full-time staff, some part-time staff, and chef. The staff include cashiering and assistant roles. During peak hours, the outlets may have up to 5 staff to manage demand.
Project Motivation
Most F&B businesses measure their overall performance through number of customers, sales and profits. Since opening almost a year ago, Teppei Syokudo has accumulated sales data and is looking at Key Performance Indicators (KPIs) such as
- number of customers
- average customer spend
However, these may be easily affected by external factors such as time period, location, and weather.
In order to drive store performance through controllable factors, Teppei Syokudo is looking at focusing on staff performance. Most F&B businesses, including Teppei Syokudo, do not set detailed KPIs to evaluate how their staff are performing. If Teppei Syokudo is able to track the performance of their staff through relevant KPIs, they will be able to motivate staff to meet these KPIs, which will in turn boost the business’ bottom line. Teppei Syokudo has identified the following KPIs to assess their staff:
- Percentage of drinks sales (number of drinks sold / number of meals sold)
- a measurement of how hard the staff are up-selling
- Labour Productivity (sales $ / working hours)
- a measurement of how effective the shop manager is in staffing the shop
However, the business is uncertain if these are the right KPIs to set. Also, if they are the right ones, they are unsure as to what would be a good target to meet.
Another factor for driving store performance is through product portfolio mix. Even though the staff may be up-selling and cross-selling, they may not know the right products to cross-sell to increase the probability of the customer making additional purchases. For example, most customers may tend to purchase Drink X together with Don X. In this case, if a customer orders Don X and is about to make payment, the staff can suggest Drink X to the customer, hence prompting a higher probability for the customer to purchase Drink X.
To top it off, with changes to staff, menu and seasons, Teppei Syokudo would like to know that this is not a one-off analysis and that this project can be sustainable with the input of new data.
Project Objectives
The aim of our project is to help Teppei Syokudo improve store performance through controllable factors such as staff performance and product portfolio mix.
Our project objectives are hence:
- To evaluate the effectiveness of existing staff KPIs, so as to ensure that they are the right KPIs
- To develop new staff KPIs, so as to have the right set of KPIs that would be relevant for evaluating both shop and staff performance (ideally separately between shop manager and staff)
- To come up with the numerical targets that would motivate staff performance
- To identify customer purchase trends so as to come up with a recommendation system that staff can use to cross-sell
- To come up with a workable spreadsheet, where analyses can be drawn from the input of new data - a sustainable system to ensure continuity in the project’s usefulness in the long run.
