What business format works best?

 

Stuck deciding what sort of F&B business format works for you? With the huge labour crunch, why not check out the staffing requirements and see which suit you the best?

 

High level of manpower required

Fine dining

Food preparation: High
On-site cooking: High
Plating or packing: High
Processing orders & payments: High
Seating & table service: High
Cleaning: High
Delivery: NIL

Image source: www.rasmentorshipforum.com/fb-startup-kit/

 

Advantages:

The advantages of fine dining establishments is the experience that you create for your customers. Also, partly because of this ambience, you’re able to price your food items slightly higher, and perhaps also sell more exotic, interesting dishes.

 

Disadvantages:

However, there will be the pressure to hire the best chefs and create a menu that adequately fits the fine-dining experience. It is manpower heavy and the staff are expected to be able to deliver an excellent level of service as well. All of this will take effort to curate and maintain.

 

Moderate level of manpower required

Casual-dining cafes or fast-food restaurants

Food preparation: High
On-site cooking: High
Plating or packing: High
Processing orders & payments: Medium/low and can be automated
Seating & table service: Medium/low and can be automated
Cleaning: High
Delivery: NIL

 

Advantages:

The concept is casual, which means you can begin to tap on alternative sources of labour like students or even those who have retired and want something to do to pass time. Expectations about their knowledge and level of service, although not non-existent, will be lower than that of a fine-dining outlet, so there could be less training involved. You can also find ways to automate processes, like with iPad ordering technology to reduce dependence on labour even more.

 

Disadvantages:

The higher number of part-timers means there could be less consistency in service, and you’ll be extremely vulnerable to schedule fluctuations and a high turnover.

 

Low level of manpower required

Food delivery

Food preparation: High
On-site cooking: High
Plating or packing: High
Processing orders & payments: Low and can be automated
Seating & table service: NIL
Cleaning: NIL
Delivery: High

 

Grab-and-go kiosks
Food preparation: High
On-site cooking: Low
Plating or packing: Low
Processing orders & payments: Medium
Seating & table service: NIL
Cleaning: NIL
Delivery: NIL

Food truck
Food preparation: High
On-site cooking: Low
Plating or packing: Low
Processing orders & payments: Low
Seating & table service: NIL
Cleaning: NIL
Delivery: NIL

 

Advantages:

Naturally, using the least manpower means you might be able to avoid some major issues with hiring and scheduling. Overall, the sunk costs for these type of models may also be lower – a food truck, for instance, will help you avoid high rental costs – and in a sense, also have less of a financial risk.

 

Disadvantages:

These models may make it more difficult for you to build a good rapport with customers – the speed of the service can make things seem a lot less “personalised”.