Without any doubt, Andy’s Italian restaurant is a huge success. His restaurant records a net profit of 30 percent yearly which is more than 20 percent average profit made yearly by most restaurants. Considering that in the last 25 years Andy’s restaurant has been operating several restaurants have folded, this is a great achievement. It therefore raises the question on what the restaurant is doing right in the business that makes it possible for it to survive for such a long duration. One of the reason for Andy’s success is the ability of retaining workers for a long duration. Danielle, one of his managers has worked for him for more than 6 years. In the hospitality industry, this is remarkable since it is characterized by a high employee turnover. Loss of staff leads to loss of skills and knowledge (Your Workforce nd p. 89). Retention of employees ensure productivity is not lost and that resources and time are not wasted in the recruitment of new employees.
Another factor that has led to his success is his services which are customer oriented. Not many restaurateurs permit customers to bring their own food items. Andy takes that risk however and is rewarded by customers who spend large sums of money in his restaurant. His willingness at accommodating the requests of the customers helps him attract and retain new customers. On top of this, he has also established his brand as a brand. His menu is relatively fixed and customers always know what they are able to get by visiting him. Goodson (2012) states that brands “are psychology and science brought together as a promise… convey a uniform quality, credibility and experience”. Andy’s restaurant has established itself as an Italian restaurant of great repute and it has loyal customers who value the brand thus ensuring it enjoys long term profitability.
Andy employs 3 managers with diverse skill sets. It is this diversity dovetails that makes operations efficient. The managers have also helped in effectively running the restaurant. Andy is good at delegating and allows his managers to carry out their work without micromanaging them. This is what has led to the success of the restaurant. Kelly has great technical skills. She is proficient in the ordering process and food preparation. However, her conceptual and human skills are poor. She needs to work on her people skills through attending classes on personality-coaching. This will boost her skills of relating with people well.
Danielle has good conceptual and human skills. Not only does she relate superbly to customers, she also grasps the notion of what Andy’s restaurant is about. Danielle understands the vision of Andy and implements it in her work. However, she has poor technical skills. She does not grasp the financial aspect of the business. She can improve on her technical skills by enrolling in financial classes. This will improve her technical skills. On the other hand, Patrick has great technical skills and the ability to work in different areas of the restaurant. His human skills and poor and he is unable to relate to customers well. He has to improve his human skills through enrolling in personality training classes. His conceptual skills are poor as well as approaches issues in terms of black and white thus alienating people. He needs to be mentored in order to grasp the bigger picture.
Through the leadership of Andy, the Italian restaurant has proven to be quite a success. Northouse (2006) states a good leader is supposed to have 3 basic skills-technical, conceptual and human. Andy has good human and conceptual skills. He mentors his managers well and also relates with customers by fulfilling their needs. However, he has poor technical skills. He never monitors the financials of the restaurant closely enough. Despite this, Andy’s restaurant is a success that nets a high profit and has been operating for several years. This is an indication that a manager does not need to be competent with all skills in order to succeed. Human and conceptual skills are of great importance to all top-level managers.
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Goodson, S. (27 May 2012). Why brand building is important. Forbes. Retrieved from www.forbes.com/sites/marketshare/2012/05/27/why-brand-building-is-important/
Northouse, P. (2006). Leadership: theory and practice (4th ed.). California: Sage Publications.
Your workforce – a gearing up guide for employers. (nd) Northern Territory Government.Retrieved from http://www.google.com/url?sa=t&rct=j&q=does%20retaining%20employees%20help%2 0businesses%20to%20succeed&source=web&cd=23&ved=0CC8QFjACOBQ&url=http %3A%2F%2Fwww.dob.nt.gov.au%2FEmployment%2Fworkforce- development%2FDocuments%2Fyour-workforce%2Fch5-retain-and- support.docx&ei=gbwAU76qGYKs7QbB04CICQ&usg=AFQjCNEy_0zr1A2sDeL- qHrbTqcFl3dr4A&bvm=bv.61535280,d.ZGU