“The Colombo Roti Cafe” was founded by Mr. Viraj Fernando & Mr. Chaminda Fonseka in 2015 focusing among the young community in the area. The Colombo Roti Café strives to bring the best possible food, service & ambience. They are very concerning about their food quality, customer attraction & customer satisfaction. Considering the growth of the Colombo Roti Café now the management has decided to expand its outlets.
Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. (BusinessDictionary.com, 2018)
Importance of Management for the Colombo Roti Cafe
The Colombo Roti café is managed by Mr.Viraj Fenando and Mr.Chaminda Fonseka who posses the required knowledge and skills relating to business which assisted to achieve considerable growth within past 3 years. Being they have the intention of expanding the business further, it is essential to have sound management in order to achieve the below objectives.
· To organize resources to achieve the objectives.
Organizing of foods and customer service. Thus better management is required to maintain the quality of its deliveries at an acceptable level. Resources is a very important for food and beverage industry as it totally depends on quality
· To manage the workers to get maximum productivity.
Identifying and selecting right people with right skills is essential to get the maximum contribution from the workforce. Accordingly managing workforce has become a critical aspect of entire management function.
· To coordinate and control different activities of the business.
Colombo roti cafe mainly focuses on eventful persons those who want to taste verity of foods. Hence, every activity including customer service, take away, dine in etc. should be coordinated and controlled well in order to maintain a smooth operation.
· To forecast and plan to determine where the business is going.
This is a very important aspect of the business to understand the changing demand in the market for different types of customer requirements with modern technology (Courses.lumenlearning.com, 2018)
Current Management Challenges / Problems in the Colombo Roti Cafe
Operating a restaurant is certainly a challenging task. Indeed, most restaurants collapse during the first year of operations due to the mismanagement of the business. Thus, a list of the major challenges have been compiled by referring to operations of Colombo Roti Café.
Staff Training, Recruitment and Retention
In order to run the restaurant, human resource plays a vital part. Accordingly expertized chefs, talented and friendly staff has become a critical success factor of the business. Yet, the café has found difficulties in recruiting right candidate for the positions being the deficiencies in human resource management processes. Furthermore it faced with difficulties in retaining the talented employees with them and thus the employee turnover has increased over the period.
· Lack of Capital
Lack of capital is another key issue that the management has faced in expanding the business. Though it intends to establish two new restaurants in Battaramulla and Diyatha Uyana, such effort has been delayed by the wretched cash flows and capital injection.
· Competition with Other Restaurants
Food and Beverage is an industry with severe competition and unless the business has better management system, it will lose its market share to other players. Thus, in order to maintain the market position, the café has to concern about following factors.
§ Maintain Quality of foods- The customer expects fresh, cleaned and delicious food.
§ Designing the right menu- Café should have a mechanism to determine the emerging trends in customer taste and design its menu accordingly. In that case it has to concern about the profitability of each item as well.
§ Pricing- The pricing needs to be done properly considering both cost and customer demand in order to ensure better margins.
· Parking Facility
Nugegoda and Diyatha Uyana are very populated areas. Therefore, the vehicle parking service is a gateway for the consumer to attract to the restaurant. Accordingly arranging adequate parking facilities has become a key challenge to the business.
· Online Delivery facility
Online food ordering has become an emerging trend in Sri Lanka. Nevertheless, ensuring on time delivery and deliver the right food to right customer has become a key challenge.
· Internal frauds
Ensure adequate control over the resources of the company has become critical in current business context. Further ensuring of the maintenance of proper financial records is also a challenge which is equally experienced by café as well.
· Consistency in performance
The maintenance of the compatibility of the service has become a key challenge to the restaurants. This mainly happens because of lack of standardization in the restaurant in terms of operations. Yet, the stability of the restaurants affects to the customer attraction, environment protection and social responsibility.
· Technological changes
To meet the challenge of growing customer expectations, the restaurant has linked to technology. Innovation will enable the café to stand out from the competition, fulfill every guest’s expectation and attract new custom .the Colombo roti café should be maintained following to face such changes successfully.
§ web site to handle online orders & to promote foods
§ Facebook Page to promote foods
§ Develop Mobile App to handle online orders
· Effective inventory management
Currently, the business is lacking an effective inventory management system. Yet, sound inventory management system provides real-time tracking of inventory levels and ingredients which lead to increased cost-effectiveness and reduced wastage. Thus, the café should come up with either ERP system or JIT system to manage its inventory levels.
(POSist | Restaurant POS Software & Management System,2018)