Management Insights | A small cafeteria owner gives a professor an MBA lesson

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Running a canteen should be the simplest type of small business. Assuming you’re the owner of a canteen, how can you effectively prevent corruption in its procurement processes? This is a comprehensive question testing managers, as the standards for any commodity are not as complicated as those for grains, oils, vegetables, salt, soy sauce, vinegar, poultry, and fish ； The quality of any commodity is harder to gauge than that of meals whose flavors need to be changed daily ； The price of any product is less sensitive than what employees eat with each meal. If you don’t believe it, give it a try – can you manage a cafeteria? Challenges in cafeteria management
Some might say that if I were the owner of a cafeteria, procurement would be a key area I’d manage. If necessary, the following measures can be taken: “I, my wife, or my trusted person will go and buy it in person.” ”But in that case, wouldn’t you become a self-employed person? Can your canteen company grow any bigger? What will you do if there are a second or third cafeteria? Besides, don’t think that those you trust won’t deceive you; humans are the most advanced yet also the most changeable creatures in this world. In an environment lacking supervision and restraint, even your wife will hide money for herself. A boss of a garment factory in Shenzhen said to me with self-mockery, “Ever since my mother-in-law took charge of the cafeteria, my sister-in-law and brother-in-law’s families have never bought any vegetables again.” ”Relying solely on family ties to manage a business won’t work. 　　“Then I’ll send two people to buy it, one to make the purchase and one to supervise. ” But anyone who has managed a business knows that in a produce market where transactions are conducted in cash, there are no invoices, and both quality and prices change daily, buyers have very little resistance to temptation. Relying on human supervision is unreliable, as two people can quickly form a collusive alliance. I’ve seen some companies even use three people to buy groceries: two are responsible for purchasing, while one checks the weights. How did it turn out? Apart from arguing all day long, the problem still isn’t solved. What’s more crucial: never forget that you’re not running some highly profitable business. If three people do the work that one person could do, how can your food costs go down? 　　“Then I’ll use a shift system, with different two people going to buy each time. ”It’s obvious you know nothing about the cafeteria business. Never underestimate things that are well-known to everyone such as oil, salt, soy sauce, vinegar, vegetables, potatoes, chicken, duck, fish – purchasing them requires expertise; just ask your wife and mother if you don’t believe me. A person who is not familiar with the market conditions in the vegetable market is often deceived by vendors who cheat on the weights and overcharge. If you buy low-quality products at high prices to prevent corruption, can your canteen business remain competitive? 　　“Then the person in charge of procurement stays the same, while the supervisor rotates. ”But how can someone who isn’t an expert effectively supervise someone who handles purchases on a daily basis? He can very easily act out a perfect act with the suppliers, turning the supervisors into deaf ears. Moreover, criminal psychology has shown that the stricter the supervision, the stronger people’s criminal tendencies become; prisons are the best proof of this. Purchasers are watched by different people every day, which is actually a double insult to them, as it assumes that: first, you will not only commit corruption ； Second, you will also drag others down into corruption with you. If you’re assumed to be like that, it would be a waste of yourself not to commit corruption. What’s the point of showing initiative by outwitting street vendors to buy cheap vegetables, eggplants, pork, and vermicelli? 　　“Then I’ll conduct a public tender to select the main supplier. ”That’s jargon again. Indeed, some large restaurants or eateries employ an exclusive supplier system for purchasing goods such as beverages, tobacco, alcohol, grains, and oils. This is because these goods are standard products, whereas vegetables, potatoes, chicken, duck, and fish are non-standard products; their quality and price can change every day. How can you prepare a bid document in such a situation? Who could have predicted that pork prices would rise by 10% in August, and that cucumbers in Shandong would be in abundant supply and sell for just 10 cents per jin in September? Therefore, even if you have a main supplier, someone still needs to be aware of market conditions, as these vegetables and side dishes account for the largest portion of your cafeteria’s costs. 　　Seeing this, I guess many people start to wonder: How can managing such a simple canteen business be so complicated? That’s right, because you’re an outsider. For someone who has actually managed a cafeteria and done it successfully, this problem would be a piece of cake for her/him. This is why management must always be specific—amateurs cannot manage experts. Cut costs and increase revenue. By chance, I met a boss who had actually managed a cafeteria, and his words gave me an epiphany. 　　I asked him, “Who is in charge of purchasing food for the cafeteria?” ” 　　He said, “See what to buy.” The head chef is responsible for purchasing vegetables and side dishes that need to be bought daily. For items like grains, oils, sauces, and seasonings, as well as cleaning supplies and other miscellaneous goods that don’t need to be purchased daily, the cafeteria manager handles the procurement through bidding processes. As for fixed assets such as stoves, cooking utensils, pots, and pans (as he defines them), I personally take charge of them. ” 　　I asked again, “Is there anyone to supervise the master chef when he goes shopping for groceries?” ” 　　“No, we only check to make sure that the items purchased aren’t short in weight, as many items are ordered by our master craftsmen from the market and delivered by suppliers ； The items delivered are reweighed and recorded by the kitchen assistant. ”He said. 　　“Aren’t you afraid the master craftsman will take bribes? ”I asked. 　　He said, “I’m not afraid.” This canteen is run by the property management company; the daily food allowance per person is only 7 yuan. After deducting the cost of staple foods and other expenses, the amount available for non-staple foods per person per day is just 4 yuan. It’s already very difficult for a master chef to spend 4 yuan on ingredients enough to prepare four dishes and one soup; there’s no way he can afford to take any bribes Also, I occasionally go to the vegetable market myself, so I’m pretty familiar with the market prices. Besides, whether he can accept bribes is not at all my concern. ” 　　Hey. I was puzzled and asked, “Why?” ” 　　The small business owner said, “When running a business, I focus on increasing revenue first, and then on cutting costs.” Because a business must first have sales before it can have profits. My focus is on satisfying those who eat there; only if they are satisfied will their company decide to renew the contract with me. They were satisfied, which made it easier for me to negotiate with the company regarding the costs for food, utilities, and guest entertainment. ” 　　“How can we satisfy them? ”I kept asking. 　　“These security guards are young men from the countryside; they have great tolerances. To satisfy them, it is first necessary to ensure that they have enough to eat. But each person only has a limited amount of money for food per day. How can we ensure they get enough to eat? Therefore, it is necessary to be thrifty. For example, don’t buy freshly harvested vegetables, and don’t buy high-quality ones; try to buy off-season or discounted vegetables instead ； Don’t buy live fish; buy dead fish instead ； Don’t buy lean meat; instead, buy fatty meat... Only expert chefs can afford to buy such things; ordinary people simply can’t. When a master chef sees cheap vegetables and meat at the market, he can immediately imagine what dishes to make, which allows him to make a decision right away when bargaining. Otherwise, one person has to go shopping for groceries and another has to cook, leading to arguments every day. ” 　　“Anyone in the restaurant business knows that whenever there are complaints about the quality of the food, the head chef will first look for reasons related to the poor quality of the raw materials. Therefore, I must hand this responsibility over to the master chef, so that he can, just like people from my mother’s generation, endure a life of poverty and make the most of very little money to ensure that his family eats as well as possible. But the master chef isn’t my mom; I need to encourage him. How to encourage? Dining hall patrons rate the quality of the food on a monthly basis, and the higher the score, the greater the bonus for the head chefs. ” Goal management: Lead the general on his journey, don’t chase after little rabbits. My body, which was leaning against the sofa, automatically sat up straight; this unkempt small boss began to inspire my respect. I continued to ask: “But my experience has been this: everyone who eats the food turns out to be a ‘Chen Shimei’—someone untrustworthy. The dishes prepared by new chefs always taste great at first, but after eating them for a while, people get tired of them, and their ratings drop.” ” 　　“Then you need to analyze what diners care about the most The guys eating in this cafeteria weren’t satisfied with the food, mainly regarding the portion sizes. When I first took over this cafeteria, it was a semi-buffet setup. But you know, everyone who eats at a buffet has big eyes and a small stomach ； Get as much as you can; if you can’t eat it, either force yourself to eat it or secretly discard it. The cafeteria staff, worried that there wouldn’t be enough food for those behind them, served as little as possible, which led to constant arguments. Anyone who works in a cafeteria knows that serving meals together is definitely cheaper than serving them separately ； However, serving food separately is hygienic, convenient, and stylish; therefore, most company canteens use this method. ” 　　“But you have to consider who your customers are If they are all white-collar workers, of course they should eat separately; one must first be full before focusing on taste. Thus, I finally convinced the property management company to change from individual meal serving to communal dining. My conditions are non-negotiable for them: eight people per table, four dishes and one soup, separate serving utensils and communal chopsticks; we eat only when the group is complete. As a result, satisfaction levels rose by 10 percentage points immediately. ” 　　“Not only that, but if you want to eat your fill while spending less money, there’s only one trick: eat more rice and less side dishes. My master chef and I tried our best when creating the menu to ensure that there is always a dish with a strong flavor at each meal, during both lunch and dinner, one that goes well with rice. For example: pork with preserved vegetables, braised fish, stir-fried intestines with pickled vegetables, Mapo tofu, and so on. To prepare these dishes, a large amount of oil, salt, soy sauce, monosodium glutamate, and other seasonings are required; as a result, the raw materials don’t need to be very fresh. Keep in mind that dead fish cost half as much as live fish. ” 　　“You see, this is what I’m focusing on. This company has had 3 different vendors for its canteen services, and we are the most satisfied with ours. Now their general manager also often eats in the cafeteria. With prices rising in these past few months, he even offered to give me extra money if I needed it. ” 　　I stared at him intently, thinking: Managers all understand goal management, but when several goals conflict with each other, the overall goal is often forgotten – many companies, in an effort to prevent bribery, end up destroying their employees’ motivation as well. This little boss is clearly an expert who knows how to send generals on their way without chasing after minor issues. Managing customer expectations: Seeing that I was truly seeking advice, the small business owner felt quite proud and continued, “Those in the food service industry aren’t really afraid of complaints, because what customers complain about are usually visible issues that can be easily fixed. The real challenge lies in catering to customers’ taste preferences.” Teacher Huang, you’re right; everyone gets tired of eating these same dishes over and over again. This is why restaurants keep changing chefs and introducing new dishes. ” 　　“But things are tough for us in the cafeteria, because most employees don’t have a choice and have to eat here. So they often vent their dissatisfaction with the food by focusing on other things, such as the quality of the food and poor service. Actually, everyone has a home, and mom can only cook those few dishes – why aren’t you annoyed? Running around outside, but when I get home and eat, it’s still the food prepared by my mother that tastes the best. ” 　　“So my approach to running the cafeteria is different from others’; others want employees to come to the cafeteria to eat every day, because the more days they eat there, the more money the person in charge of the cafeteria earns. When I manage the canteen for any company, I require the company to agree to closing it for one day per week, as my employees also need time to rest. The real reason is that I want those employees who eat in the cafeteria all day to cook by themselves, or to go to restaurants outside to try something different and compare prices, so that they’ll realize that my meals are worth the price. I’m 100% sure that for 7 yuan, anywhere else—including if they prepare it themselves—they will never be able to serve food as good as what I serve. ” 　　I truly encountered a master; I don’t know which management expert said it: “The first principle of marketing is to manage customer expectations, rather than simply satisfying them.” ”It seems this small boss with only a middle school education is a self-taught master. In line with human nature and natural laws, I continued to ask, “Procurement in many canteens poses a challenge for owners, who often resort to various methods to bring it under control.” Their concerns are justified; no matter how low each person’s contribution is, when hundreds of people contribute together, over the course of a year it still adds up to a significant amount. Why do you trust your master so much? Is he your relative? ” 　　The small business owner laughed: “I run four canteens in Shenzhen – where would I find so many relatives who can cook?” Actually, the practice of accepting bribes for purchasing goods from the market is something done by those companies that run their own canteens. Why? The people in charge of the cafeteria don’t have the necessary expertise. Moreover, they are usually managers from the administrative department, who have many other responsibilities to attend to and therefore can’t devote that much time to the cafeteria. ” 　　“These big companies think that they can solve the problem of kickbacks through some complicated procedures, systems, and constant supervision – that’s nonsense. It’s still bok choy; some of it was just picked from the field today ； Some were picked the day before yesterday; they’re still fresh even after being rinsed with water. How can you supervise that? A set of pig offal costs 30 yuan in the morning, but drops to 10 yuan after 5 p.m. If the person making the purchase wants to save you money, he will tell the vendor to bring over any leftover scraps for you ； If he follows the rules or is in a bad mood, you’ll have to pay 30 yuan. Besides, during holidays suppliers give him a pack of cigarettes, and fresh fruits are delivered to him in a basket – can you really control such things? More importantly, do you need to take care of it? ” 　　“So, for things you can’t control, you shouldn’t try to force them ； It’s necessary to manage things in different ways. What I can control is the cost of 4 yuan per person for the dishes; please prepare four dishes and one soup that will satisfy those who are eating ； If, under these circumstances, you can still get kickbacks, then that’s your skill ； If you really had that skill, you wouldn’t need to be a master craftsman; you could become the owner of a cafeteria. Why? Because you can manage the master craftsmen well. ” 　　Most people only know the saying \"Governing a large country is like cooking a small dish,\" but they don’t realize that this is just half of the sentence. What Laozi actually meant was that if rulers can follow human nature and natural laws, governing a large country will be as easy as preparing a simple dish. This little boss obviously knows the whole sentence I said. Give everyone a little bit of power. I asked again, “Won’t the quality of food be affected by oils, grains, and sauces as well? Why not have the master chefs handle the purchasing of these items?” ” 　　The small boss gave me a sly look and said, “This is my special management method.” Other companies standardize their purchases, but I choose to diversify them. I believe the less money a person handles, the lower the likelihood of corruption; just look at those major corrupt officials – they are all people in positions of power. Why? The amount involved is so large that even a small amount of profit represents a great temptation for people. I don’t know why some companies insist on centralizing all purchases? Not only that, but in fact for many things, those who buy them are not as knowledgeable as those who use them. ” 　　“So I separated the procurement rights. First, classify the items that need to be purchased by their nature. It is a standard product; regardless of the amount, if it can be procured through bidding, then it is not purchased independently. For example, bids are issued for grains and oils, while items such as salt, monosodium glutamate, soy sauce, and vinegar, although worth less, are also subject to bidding processes. What is this called? Avoid being tempting to commit crimes as much as possible. Now, you can even negotiate the price when buying ten bottles of beer, so it’s necessary to seal any loopholes as much as possible. For items that cannot be procured through bidding, such as fresh vegetables, they must be handed over directly to the most experienced experts, regardless of the amount involved. ” 　　“Why? In addition to the reasons mentioned above, I currently run four canteens. The highest standard for meals is 20 yuan per person per day, while the lowest is 7 yuan. The raw materials used in each canteen are different, and attempting to purchase them all at once would result in neglecting some aspects. Brooms, rags, staff **These miscellaneous items are purchased by each canteen manager. In this way, with everyone being responsible for a portion of the cost, it’s possible to purchase the most suitable items. Since each person buys fewer items and in smaller quantities, any slight price difference becomes easily noticeable. For example, if mops cost 5 yuan in other canteens but 10 yuan where you buy them, how can you not feel guilty? ” 　　“As for humans, it’s better to control oneself than to let others do it. There’s another reason for me to do this: everyone knows that buying things is a good business – people offer you cigarettes and drinks, invite you for meals, and it’s even possible to get bribes. But good things should be shared among everyone as much as possible; I can’t keep myself in a smoky environment all the time while you enjoy a glamorous life outside – otherwise it will lead to jealousy and gossip. If power is distributed, everyone can benefit and also keep an eye on one another. Of course, I don’t do things just to spread things out; I still focus on what needs to be focused on. For example, I delegated the authority to handle procurement for grains, oils, sauces, etc. to one cafeteria manager, who is then responsible for making purchases on behalf of the other five cafeterias. Of course, the bidding process is rotational, with another cafeteria manager taking charge in the following year. ” 　　“Other bosses all say that employees want to do less work for more money. I don’t think so; I believe the employees just want to do fewer of the unpleasant tasks, like washing vegetables and cleaning the floor – those dirty and strenuous jobs. If the workers who wash the vegetables are allowed to supervise the weighing, they’ll be happy to do it even without being paid. Why? Not only can you go outside the kitchen to cool off and take a smoke break, but by knowing how to use the scale, you can also earn respect from others. He not only needs to reweigh, but also keep a record ； It’s underweight; it needs to be checked by a master craftsman. It’s human nature – who doesn’t want some power? So my principle is to give everyone a little bit of power. ” 　　“People who have rights but no responsibilities, or those who have rights but no means, are prone to acting recklessly. It’s a minor issue for a vegetable washer to steal a few cigarettes from someone, but purchasing tens of thousands of pounds of rice and flour can easily lead to serious problems. So although I delegate the authority to conduct tenders for rice and noodles to the cafeteria manager, the tenders must be carried out according to the methods I have established. No one, including the evaluators, can know the results of our bidding in advance. Since we are in the food business, the items that end up in people’s mouths cannot be judged solely on their low price; otherwise, as competition intensifies, toxic rice might end up mixed in. Therefore, my bidding method is always: first, at least four unrelated suppliers must submit bids ； Second, there must be a new supplier ； Third, the winner is the bidder whose bid is closest to the average price of the four bids. Anyone who violates this rule is committing a crime, and you must explain it clearly. ” 　　The boss became more and more excited as he talked, and I increasingly thought he was amazing. I asked him, “What did you do before?” Did you come up with all these tricks on your own? ” 　　He said, “I’m 45 years old this year. I was a soldier when I was young, and later I worked as a driver in an **office.” Later, I went to Shenzhen to work, but I couldn’t make any headway there, so I decided to start my own business. Without much capital, I opened a small restaurant in the industrial area, which eventually turned into a canteen. I figured it out through experience: controlling bribery doesn’t work when it comes to having people supervise other people ； Control it at the source ； Transform great power into controlled minor power ； It must be controlled by rules and laws ； One must let oneself control themselves. ” Source: Internet