Stop Using Performance To Evaluate Your Store Manager!

The store manager’s performance appraisal directly guides the store’s work, which in turn determines the overall business performance of the company. So what should be the core assessment indicators for store managers? Some people say it is sales, QSC, cooperation… Currently, most brands also focus on the actual performance of the store because it seems that this is the most intuitive indicator for checking and evaluating the store manager. However, is such an assessment indicator really reasonable for the store manager? 80% of chain catering brands have made mistakes in assessing store managers!
 

1. The store manager does not decide the first time a customer enters the store to spend

Let’s take a look at the revenue composition of the store first:
Revenue = customer order volume * customer unit price = (store customer order volume * customer unit price) + (home customer order volume * customer unit price)
It can be seen from this calculation formula that the customer order volume is the key factor.
So, where does our customer order volume come from? In the field of light chain meals, convenience is a key factor for consumers to choose store consumption.
Most of the customer orders come from the vicinity of the store: the store is located in an area with a large flow of people, and the number of customer orders will naturally be much higher; in an area with low traffic, the number of customer orders will be much lower.
So who decides the location of the store? Is it decided by the store manager? of course not. The location of any store has already established the base of the store’s flow of people, which any store manager cannot change.
The store location factor determines the size of the traffic, that is, the size of the customer order. The base number of customer orders has actually been determined when the address is confirmed, and it can be said that it has nothing to do with the ability of our store manager.
Because the customers who come to the store for the first time are all due to the combination of store location, brand potential, and category selection. Then let’s take a look at the unit price per customer. Product pricing is a marketing strategy of the brand. This is the work of the brand marketing, supply chain, and financial departments, and has nothing to do with the store manager;
The unit price of a customer also includes a purchase quantity, which depends on our face-to-face recommendations. This has something to do with the store manager, who needs to urge the store staff to implement oral broadcasts and recommendations in place.
Here, we can conclude that the sales of consumption at the store for the first time have little to do with the store manager. Because the key factors of customer order volume and customer unit price do not depend on our store manager.
 

2. The repurchase rate is the core indicator of chain store managers

The stable performance of a chain catering store after opening mainly comes from the repurchase of consumers within the service radius. It can be said that chain catering is a repurchase business. The repurchase rate of chain stores is the loyalty of customers to brand products, that is to say, they are satisfied and willing to choose you for a long time. If the products meet the taste, the dining experience is comfortable, and the store service is considerate, customers will naturally be willing to buy again, and at the same time, they are willing to recommend relatives and friends around them to shop at the store.

3. How should chain restaurant managers be assessed?

Three factors affect the repurchase rate: product quality, service quality, and experience satisfaction. Chain catering stores must do a good job of these three factors. Only by implementing them in place and continuously optimizing can they bring good repurchases.
QSC (Quality, Service, and Cleanliness) used by chain restaurants is one of the lifeblood of the restaurant industry. The customer’s dining experience, interaction with the restaurant, memory, and labeling of the restaurant are actually all done through QSC. Therefore, chain store managers do an excellent job in the primary work of store operation according to the requirements of the brand headquarters for stores, and implementing store standardization in place is the key to bringing about repurchases. Now the repurchase data of chain catering stores can collect offline data through the cash register and membership system, and the online data collected by the food delivery platform and the food delivery platform can see the specific data of consumer complaints and praise. But these are all result indicators. To get good results, we must first control the process indicators.
Behind the high repurchase rate of the store must be good customer satisfaction. Therefore, after 12 weeks of the store opening, it has entered a stable income period. Focusing on customer satisfaction, the chain restaurant headquarters can provide data on the following assessment indicators to franchisees through the smart operation system The merchant conducts an assessment on the store manager:
1). Training pass rate
The first step in the implementation of standards is for store employees to master the SOP, which is also the purpose of training or training. Therefore, it is necessary to set the passing rate of training examinations and check the learning results of store managers and store staff. The intelligent operation system helps brands to platform training content. With the help of various training forms, it manages the whole process of store managers and shop assistants belonging to the brand, from new training to practical operation, to continuous training and learning, and helps the brand headquarters to realize the right to join.
Direct training for merchants, store managers, and store staff to ensure quick mastery of operating standards, food safety standards, and brand activities. The training data is shared in real-time, the headquarters can easily track the training effect, and the monthly training completion rate and an examination pass rate of each store are automatically counted and quickly obtained.
2). Inspection pass rate
The inspection pass rate is an assessment of the standardization execution ability of the store, which can be directly used as one of the operational indicators for assessing the store manager. The headquarters can obtain statistics such as the inspection completion rate and an inspection pass rate of the supervisors in each store so as to comprehensively improve the efficiency of store inspections and complete the evaluation of the standardization level of the stores!
3). Correction completion rate
The completion rate of store rectification shows the store’s ability to continuously optimize and improve its operations, and it is also one of the operational indicators for the store manager’s assessment. It can evaluate whether the daily work of the store is continuously improved and optimized.
4). Number of store feedback
Assessing the number of consumer feedback collected by the store manager can better improve customer satisfaction. Brands need to collect suggestions on the needs of front-line consumers and the market to upgrade and improve their operation level continuously and give feedback directly to the headquarters after collection by store managers.
The headquarters can set labels for the types of opinions they want to collect. Store employees and franchisees can directly send operational feedback and opinions to the headquarters without having to go through supervision to convey and report, or go to the store to collect them one by one.
 
The automatic statistics of the store manager’s operation assessment indicators ultimately point to whether the store’s operation level can satisfy customers, and customer satisfaction determines the product repurchase rate of the store. With the advent of the digital age, perfect operational data can also help the headquarters to output the index assessment system for different positions, and focus on the repurchase rate to improve the sustainable profitability of catering chain brands.

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