Many foodservice operators outsource services to cut down operational costs. Outsourcing expert Alan Ridgell addresses the benefits
Outsourcing is the practice of utilizing other firms to handle certain duties in your organization. This strategy has been operational since the 1990s. It was initiated to bring relief during the flat economy period that caused a lot of companies to lay off workers to stay in business.
This approach is common for different businesses, including the foodservice industry, when they are expanding their operations internationally. Some of the most common services that are outsourced include employee recruitment, accounting, and payroll management. If you are interested in expanding your business you can find a company like Global PEO, or other providers, who will offer these services for your company.
Reducing operational costs
In recent years, foodservice companies operating locally and internationally have been outsourcing services to cut down their operational costs.
Some of the commonly outsourced services include:
- Supply chain management
- Human resource management
- Customer support
- Marketing services
- Menu planning
- Purchasing of food and recipes used
- Personnel hiring
- Kitchen management
While outsourcing renders a lot of benefits to companies, not many entrepreneurs know this. When well-executed, this strategy could render the foodservice business owner long-term benefits. Here are ways in which this approach could help your business:
- Possibility of enhanced effectiveness: Outsourcing services often give you a competitive edge over and enhance the effectiveness of your restaurant. External services have the potential to ramp up your productivity immensely.
- Reduction in labor expenses: The process involved in the recruitment, hiring, and training of employees can be expensive. In certain instances, it may be difficult for foodservice operators to find the right talent to fill the position you want resulting in overconsumption of scarce resources in an attempt to repeat this process. When you outsource services, you can avert this mishap because the human resource services that you get are affordable and will give exactly what you are looking for.
- You can put the focus where it required the most: When you have people managing other activities in your organization, you put more focus on the core functions of your business. For instance, you have a lot of time to design a better business strategy, improve product development, and enhance customer relations among other things. This way you have the sufficient time to come up with a special recipe that you did not try before. It also takes away the huge load off thereby enhancing your productivity.
- It gives small companies a competitive edge: A majority of start-ups and small businesses are sometimes unable to progress because they lack in-house support services big corporations have. Outsourcing services can have your organization have the essential services that larger companies have at an affordable rate thereby leveling the playing field. For example, it could help your small restaurant become the most famous one in the area.
- Potential to start on new projects: At times you may have the funding ready but lack the manpower to begin work immediately. Given that it takes a lot of time to hire the right talent, you may have to get help from outsourcing firms so that the project kicks off as you search for the right muscle to work in your company. Additionally, outsourcing companies will present you with potential solutions that will help you navigate challenges that may come up in the implementation of the project’s goals.
However, there are things that you need to look at to ensure you are outsourcing from the correct service providers. For instance, the company you outsource from should be able to manage your company’s projects and perform other duties regardless of the cultural and time difference that may exist. A firm that has some kind of reservation will have your businesses failing at its mandate.
Also, the firm that you select should have an elaborate quality control plan that outlines the processes and guidelines that will be used to handle services and products.
In addition, it is important that professionals from the foodservice industry make sure that they will adjust their partnership with their type of restaurants, in order to get the best benefits possible.Outsourcing from various organizations can impact your taxes, therefore, you should also take into consideration taxation issues.
Additionally, you need to have a clear liability agreement. When you are working with multiple parties, it is difficult to hold one group accountable should something bad happen. Thus, a contract outlining these responsibilities should be drafted earlier on to avert conflicts.
There is no doubt that outsourcing services can help your foodservice business immensely. You just need to identify the services that you need assistance with and choose a firm that is willing to help you perform those functions.
Currently, people work with various outsourced companies. However, if you are skeptical about bringing other stakeholders on board, you should start small and see how it works out for your business.
If interested in learning more, you can contact the author (pictured) via email at firstname.lastname@example.org.