Operations Management : Pret A Manger

 

Title: Assessing the operation management of Pret A Manger

Can focus on 3 factor such as location, stock control, layout etc. use concept like PDCA cycle, keizen and lean production, six stigma, 5 performance objective, 4vs. provide organisational analysis and improvement suggestion.

Introduction

Pret A Manger is a retail outlet based in United Kingdom which has been founded in 1984. The company was founded by Julian Metcalfe and Sinclair Beecham. The current owner of the company is Bridgepoint Capital. Till April 2015, the company had more than 370 locations. The company generated almost GBP510 million revenues in the year 2013. The company initiated its operation from Hampstead in 1984. The company outlet operations imitate that of the restaurants. Each of the outlets has its own kitchen that is used to cook fast foods on daily basis. The company rarely relies on the left over foods from the previous day. The left over foods of each day is distributed to the local community or the needy people. Each day of the company begins with fresh produces. The company relies on the organic foods and procures organic milk and coffee from the established producers. The mission of the company is to allow the customers have foods those are handmade and completely natural. The company has always tried to avoid the chemicals components while cooking or procuring the raw produces from the suppliers. As the company’s operation focuses on single day venture therefore it rarely requires any kind of preservatives or additives for its products. The growth of the company in the past thirty years has been exponential which is evident from the number of stores it has opened around the world. This paper is focused on understanding and analyzing the operational management of the company from various perspectives. The paper will try to assess the environment of the store, delivery system of its services in relation to the kitchen and store front, the menu development of the store and the recruitment process of the company, and the outlet operation company that goes through every day. Moreover, the paper has employed various concepts in relation to the operation of the company and tried to understand its significance and application. 

Organizational Analyses

Pret A Manger has been successful in its operational management since its inception and there are various things those need to be understood and learned from it. The focus of the company on the quality of its products and services made it a known success in the field of fast food business. The company has always relied on owning their own stores and managing the same by all itself. In this manner, it provides complete control over all the processes within the store which allows the company to ensure that the products and services are of high standards throughout all the stores around the world. Even the processes concerned with the recruitment of the employees for the company ensures that right talent being brought on board who has the orientation towards the customer service and quality delivery. The subsections ahead analyze the various operation functions of the Pret A Manger and then suggest some suitable improvements based on the same. The major operational areas those have been substantially taken into the discussion in the upcoming subsections are store environment and the service delivery system. Further the service delivery system has been broken down into kitchen, the store front, menu, and the recruitment of the company. 

Store Environment of Pret A Manger

The environments of all the stores of the company are neat and clean with a sense of crispiness. The cleanliness of the stores matches the industry standard and in most cases move beyond the defined level. The cleanliness of the stores keeps it ahead of the competitors and helps it in keeping itself stand out in the crowd. The walls of stores are covered with reflective aluminum sheets and the floors have been designed in the diamond shaped tiles. The whole store has shiny feeling that comes from the utilization of shiny stainless steel equipment and even the refrigerator case and the cash counters. The coffee brewing machine also has shiny stainless look with limited color combination. The logo of the company can be seen at the entrance of the store, its packages, and the menu boards. 

Service Delivery System of Pret A Manger

All the stores of the company have its own personal kitchens. The company utilizes the fresh organic produces those are the first thing getting unloaded at the store. The employees working in the kitchen keep working whole day long and the kitchen never closes till the store is running. As the company has the policy of not keeping any leftover products for the next day therefore it produces all the products each day ranging from sandwiches to the soup. The employees in the kitchen utilizes pre-defined estimate for the production and cook each item one by one. The products prepared are then stacked at the store floor where the customers select what they want and then pay for the same. The stores always keep an eye on the expected demand for the day and thus the employees keep replenishing the stock whole day long. The purpose of such operational strategy is to provide high quality and fresh products to the consumers which reflect their passion and dedication. The company has also mentioned the facts about the quality in their “Passion Facts” that can be seen on the store walls hanging at designated places. Mentioned below are some of the clippings from that “Passion Facts” of the company:
-    The pigs used for the product development are reared on veg produces. Moreover, the glazing of the hams is done by hands. After that they are sent for baking in the oven. The final part that is concerned with the removal of fatty part is also done using hands.
-    The company procures Basils on the daily basis and that too handpicked only. The reason is that the Basils are too delicate and cannot be handled with rough machines.
-    The ripening process of the avocados is done on the room temperature without any artificial pressure. The employees then pick them using their hands after ensuring that all of them are ripe from all angles. 
Based on the above few steps and cleanliness, it can be stated that the freshness of the foods from the company is difficult to beaten up by any other competitors. Moreover, in the end of the day, if the stores have any food those are left and not consumed, then the company distributes those foods to the local charities and communities. These are not stored for the next day consumption.
Mentioned below is the detailed analysis of the operations of the service delivery system of the store concerning kitchen, storefront, menu, and recruitment:
Kitchen
The stores always receive fresh produces from the designated suppliers. The major amount of the produces those need cooling facilities are stored in bulk in the back of the stores and the little of those are placed near to the kitchen for the utilization in the regular basis. The procured amounts are in such condition that can be utilized whole day in an ample manner thus rarely impacting the delivery of the products to fulfill the daily demand. The assembly process of the food at the store begins at 7 am sharp that continues whole day long till the store closes or customers stop coming. For the stores those are larger in size, the store has ten stainless-steel tables used to prepare the products. Moreover, the refrigerators are placed in such a manner that all the employees can reach those produces quickly without wasting enough time and replenish whatever is required within shortest time lapse. It is the responsibility of the store manager that all the demands are fulfilled on time and all the necessary elements such as the level of the stock, and the presence of the employees are up to the mark.
 
Storefront
The setting of the store area where customers are catered is of self-help style where the customers themselves selects the products they want and then take those products to the counter to pay the bills. Except the hot drinks and soup the rest of the products are always kept on the shop floor and based on the customers’ demand the racks are continuously filled throughout the day. The hot drinks and the soup can be ordered only from the counter when the customers are finally paying the bills. Whenever the rush at the stores increases substantially during certain days or occasions, then there is the provision for opening more cash counters. Such provision allows the service to be fast and efficient with less waiting time at the counters. The employees in the store tries to follow the guidelines as it is such as getting customer served within the defined time limit of ninety seconds. The effort of keeping the service fast and efficient is the responsibility of the store manager and, therefore, the store manager ensures that he or she conducts at least two meetings throughout the day to make everyone in the know about what needs to be done on that particular day. Moreover, to keep the services efficient and effective, the store managers try to spend their eighty per cent of the time on the floor.
 
Menu
The menu of the company includes variety of products such as wraps, salads, cakes, and various drinking products and the teas and coffees. If the menus of the breakfast and the lunch are compared, then only slight differences can be found in those two menus. As per the current menu, around thirty products are on offer in almost all the stores around the world. The director of the company states that the company has always tried to keep the menu exciting and, therefore, it has always tried to introduce new flavors and products now and then. If the past track record is assessed, it will be found out that the company has launched one new item after the four day interval. The company has tried to keep the item orders flexible and innovation has been the key to all the improvements. Moreover, the company has ensured that the green foods such as salads are not indulged with contemporary additives those can be rampantly seen at other fast food stores. However, maintaining such standards are way more difficult, yet these are being maintained at the stores.
Recruitment
The recruitment process of the company ensures that they only bring those people on board who are oriented towards working hard for the company and ensure that each customer leave happily from the store. The company director asserts that the hardworking employees of the company are the sole of the company. Therefore, company has provisions for training and motivating the employees periodically. The company has mostly recruited its middle managers from the bottom. Such orientation ensures that the company is filled with Pret people only who have proper understanding about the work culture of the company and their orientation towards the consumers. It is being estimated that almost 75 per cent of the managers of the company initiated their careers from the level of Team members. The company has tried to invest more of their money into training and developing the employees considering them the main asset of the company. 
Problem Identification
The above discussed processes are appreciable however there are certain issues that can be stated as hampering the efficient functioning. Mentioned below are the two identified problems in the store operations of Pret A Manger:
Team Member Time Wastage
It has been identified that at various instances the team members deliver products to the customers. Such deliveries are mostly done by the team members who are already handling the day to day operational activities at storefront or the kitchens at the store. The delivery process includes packing the products at the store then commuting to the customers’ location to deliver the product. This activity consumes lot of time of any team members assigned on the job. Moreover, it hampers the progress of the tasks those were assigned to that individual who is indulging in product delivery for any customer.
Cost Associated with Operating Individual Kitchens
As stated earlier, each of the stores have its own dedicated kitchens that is used to produce everyday foods for the customers. It can be stated that each kitchens of all the stores combined require individual raw materials, individual relationship with the suppliers, and the prices are variable depending on the locations. Moreover, the combined wastage from the kitchens become substantial. Along with that, managing quality at each store individually becomes a tough job and requires assigning quality manager for each of the few stores. All these factors combined leads to substantial increase in the cost factor for the company. 

Discussion

From the above operational procedures followed the company that includes the storefront, kitchen, menu, the recruitment process, and the procurement of the raw materials, it can be stated that the company has invested appreciable amount in understanding each of the activities and has employed right procedures for each of the functions. These procedures have ensured that the company keeps the processes fast and efficient and cater to the customers fast without increasing the wait time of the consumers. Mostly it is evident that the company has used the process of planning, acting on that plan, checking what has been accomplished, and then acting again on those evaluations to improve the service. The daily processes of the company where it fulfills the everyday order amply uses this concept (PDCA cycle) to keep improving on the existing process and ensure that all the customers leave the store happily. The each day order fulfillment at the stores based on the fluctuating demand that utilizes 4Vs tool (four V stands for Volume, Variety, Variation in demand, and Visibility) to ensure that the demands are met with lesser wastage of food at the end of the day. The past record of the volume, demand variety, and the variation in the same helps the store manager decide what can be expected the next day. Moreover, the visibility plays crucial role in deciding the amount to be produced.
Improvement Implications
There are certain improvements the stores of Pret A Manger can employ to ensure that the operational procedures stay efficient and fast. They are:
-    It should be ensured that the team members going for the order fulfillment finishes the job at the stores well within the time and save some of the personal time for the external delivery.
-    The store managers can also ensure that other Team members are managing the tasks of the members who have went for the external order delivery. This will keep the task flowing without any hurdle.
-    Company can employ central kitchen system that can supply the sandwiches to all the stores in certain area. There are various benefits for such concept. Such as:
o    Overall productivity will ensure as more of the products can be processed at one time
o    There will be improved control on the quality of the products
o    The bulk utilization of the raw materials will help in cost cutting
o    The company can save kitchen space at all the stores to cater more consumers

Conclusions

In the end, it can be stated that the Pret A Manger is significantly relying on its operational procedures that ensures that raw materials are procured at right time, good workers are on the floor, and less wastage takes place. There are certain improvements that can be employed at the stores which can help it improve the overall quality and quantity of the products. Overall, it can be stated that the stores are doing well in terms of operational procedures and can be expected to be doing well in the future if it keeps its orientation towards improving the operational processes and hiring good employees on the floor. 
 

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