OPERATIONS
How restaurants are embracing a new approach to efficiency
Alicia Kelso Executive Editor
The idea of efficiency has changed as operators continue to manage unprecedented challenges — shifting from a balance sheet-driven focus to a holistic look at every part of the business
Last year, Starbucks introduced new brewing equipment backed by a $450 million investment, trimming the time it takes to make a drink.
It seems all anyone wants to talk about in the restaurant industry in 2023 is efficiency.
efficiencies through new equipment and kitchen display systems. It’s front-of-house efficiencies through pickup cubbies, organizational efficiencies through restructuring efforts, and it’s a totally new way of thinking about the brick-and-mortar format, from square footage to kitchen flow.
Indeed, based on an unofficial survey from Nation’s Restaurant News, “efficiency” was referenced about 25% more during the last round of earnings calls versus the same period in 2019 by restaurant companies that were public within that timeframe. Of course, efficiency has always been a top priority for any business with an objective of making money. But the definition and approach have evolved in the past several years as the industry has faced unprecedented challenges and as technology has become more accessible. Essentially, efficiency is no longer just about cutting costs from the balance sheet. It now requires a multifaceted, deep dive look at every part of the business to ensure both time and money are optimized. That means operational efficiencies through simplified and streamlined menus, labor efficiencies through scheduling technology, back-of-house
When Kevin Hochman was named CEO of Chili’s Grill & Bar parent company last year, one of his first lines of business was to reduce complexity to grow the core business.
Brinker International has become a case study in this holistic approach toward efficiency. When Kevin Hochman was named CEO of Chili’s Grill & Bar parent company last year, one of his first lines of Continue Reading
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