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May 14, 2022

Road side Fast Food Joints - Management or Mis-Management


Just had some fast food at this fast food joint. The fried rice was quite nice but what struck me was the lopsided HR resource usage. 

The most important person at this fast food joint was the master (the chef, inevitably from Bengal nowadays). Bengali chefs dominate the fast food industry! 

The owner was an oldish man who did not do anything except sit at the Galla (cash counter). He would not even serve the customers. He had a helper to serve the dishes and take away the dirty plates. 

I did some out-of-hand calculations Rs 10,000/- rental for the shop, Rs 5,000/- electricity, Rs 5,000/- minimum for the helper, and at least Rs 30,000/- for the master (chef). So the fixed expenditure is at least Rs 50,000/- 

The owner is completely dependent on the whims and fancies of the master and the fast food joint has to make a sale of at least  Rs 3,000/- per day even to break even and earn himself a small salary. 

So what is the option? A small bandi, and owners who multi-tasks and does all the jobs including serving and taking care of the cleaning too. Gone are the days of owners sitting on the Galla and overseeing operations. 

A person on the cash counter makes sense when there are large number of transactions and the kitchen has to be free to concentrate on dish preparation. When the business is small, keep it as lean as possible.

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