CC BY
62ISSN 2223-4047
Вестник магистратуры. 2016. № 2 (53). Т. II.
UDC 338.12.017
E.A. Povod, A.E. Roldugina, N.A.Dmitrienko
ANALYSIS AND OPPORTUNITIES OF INNOVATIONS IN RESTAURANT BUSINESS "MCDONALD'S" (AS AN EXAMPLE)
In this paper, an analysis of the structure of the restaurant business innovation Russian Federation, on measurements of market leader, 1st class restaurant McDonald's. This company is the main innovator of the structure of the restaurant business and is able to prodemanstrirovat as the impact of innovations on dostyazhenie maximum pribyli. Rassmotreny major innovations McDonald's, identified the main problems of the enterprise and the ways of solving the basic problems of the enterprise. The calculation of costs McDonald's training personnel and describes the main features of the personnel policy of the enterprise.
Keywords: innovation, the restaurant business, personnel policy, fast food, McDonald's.
The aim is to state the structure of Russian restaurant business that it is not only the quality of food but a quality of service as well. It is supposed to be a key indicator of a successful business. The basis for the developing any enterprise is not only technological or technical innovation, but there are a lot of new ways of activities, a range of new products and services, and new forms of marketing management as well.
So innovative measures have become an integral part of a business service sector as the main tool of a restaurant business, and they can be divided into:
- Innovations are introducing different revolutionary changes in a production technology;
- Innovation influences the perception quality of the product;
The specification of the restaurant business is not just the consumers' satisfaction, but it is rather a competent marketing policy of the company to obtain the maximum benefits.
Analysis of the restaurant business innovation can be a good example of the industry marketing. Identification of innovative tools is a contribution means to raising the level of income and growth of the enterprise. As the restaurants of the "First" class is supposed to be a fast food restaurant network. This type of restaurants appeared in the 40s of the 20th century in the United States. The founder of the fast food restaurants network was McDonald, as it was the first self-service network restaurant to cut time of food preparing. Innovative solution is to reduce the price and cost of the main product, "Hamburger" has 3 times low price 30 to 15%. Fast food restaurants are relevant today, as it is pointed out in Figure 1.
Subway {Сзбвэй}< McDonald's 617
44«
33 пингвина" BasWn-Robbihs* KFC Теремок 419
325
2&5 133
Burger King 171
Крошка Картошка Tea funny 155
7,
Ташир-лицца Чайная ложка Золотой КОЛОС Papa John's Juice Майе* 72
«
S3
52 .........................................®ren.(eseai(h .
Fig. 1. The largest chain of restaurants in Russia,. [1]
© Povod E.A., Roldugina A.E., Dmitrienko N.A., 2016.
Вестник магистратуры. 2016. № 2 (53). Т. II.
ISSN 2223-4047
You can identify a leader among the number of restaurants in Russia, one of the most successful are "McDonalds" and "Subway". The review analyses of the restaurant activity for a period of 2015 let us stress that a lot of restaurants have appeared in Russia. Even the rapid growth of «Subway» does not help them to become a leader among other restaurants. So in accordance to the statistic data made by «FORBS» journal, the restaurants of "First" class in Moscow the attendance it is only 6.5 while the "McDonald's" has 33.7. It can be expressed in the table 2.
1 полугодке i полугодие 1 полугодие i полугодие i полугодке Рисг/падение ясли
2010 2011 2012 201Î 2014 1 гал-е 2013 -1 псл-е 201
McDonald's 34,0 32,1 32,8 33,4 33,7 0,3
KFC 12,4 10,9 13,5 13,2 12,3 ■0,9
Крошка-Картошка 14,6 13,6 12,3 10,7 11,5 0,8
Burger King и/д 1,7 4,9 8,2 11,5 3,3
Subway 2,4 3,6 5,0 7,3 6,5 ■0,8
Теремок 4,2 ЗД 4,S 4,0 6,0 2,0
trap дог !s 3,3 2,S 3,4 3,1 3,0 ■0.1
' жители ст ID лет
Fig. 2. Number of visitors of the "First" class restaurants in Moscow (once every 3 months), in%. [2]
Visitors appreciate "McDonald's" network. It can be explained by the popularity of the brand. So according to RBC "McDonald's" brand is the most cited in the Internet, in spite restaurants of the "First" class. Today, the «Forbes» stresses that «McDonald's» has about 39.5 billion. ($) Table 1 shows the 6 most expensive brands in the world.
Table 1
Six the most expensive brands in the world. [3]
Brand Стоимость бренда, в млрд. $ Brand value, in billions. $ A Short description
1 2 3 4
Apple 145,3 +17 In the 4th quarter of 2014, Apple sold 74E, 8 million. Smartphone sales grew 49% compared to 2011.
Microsoft 69,3 +10 Since 2014 the company is founded by Satya Nadella, a new beginning the company is set to release in 2015 a new version of Windows.
Google 65,6 +16 Google's share of search engines in the market is 64.4%.
Coca-Cola 56 0 The company specializes in the production of soft, highly carbonated beverages. In 2014, the net profit is -17%.
IBM 49,8 +4 IBM's response to falling sales is going to go from the original equipment manufacturer market leader in cloud computing.
McDonald's 39,5 -1 McDonald's daily serves about 69 million. People.
McDonald's is a leader in the business industry of Russia, at the moment there are over 40,000 employed in McDonald's, so it remains the largest taxpayer in the country.
As an example the analysis of enterprise innovation is done with the help McDonald's Ltd. "McDonald's" has occupied a business niche is as the innovator in the structure of restaurant business. This company uses a whole range of innovations aimed at maximizing profit enterprise, namely:
-innovations in "McDonald's" are equipped with the unique techniques designed for this restaurant chain. This equipment can help us to prepare any dish less than in 3 minutes;
- Innovations in design can be attributed as the color scheme of the restaurant design and image menus;
- Innovations in issuing orders, electronic menus, "McDonald's car", providing the opportunity to make order in the Internet;
- Innovation in marketing strategy, is one of the most successful marketing programs is the company "McDonalds". The game "Monopoly" is supposed to be the collection of segments while the customer is expected to get a prize. The segments are expressed as expensive and rare products allowing to increase sales and reduce costs, and receiving prizes in the form of products in the restaurants where the visitors usually play, make orders and come back for the prize to make additional orders;
- Information on innovation are included in stands and show cases with a menu outside, Wi-Fi and so on.
- Innovations in personnel management. "McDonalds' usually pays great attention to personnel management policy, as Ray Kroc believed that consumer assessment is the quality of services creating as a greater extent as it is the behavior of the staff.
Certifications in McDonald's is done by the director of the restaurant, and it includes a brief history of the company, safety, career opportunities, charity events made by McDonald's and a set of corporation rules. After two months of employees' work a worker should pass the certification.
Every month any McDonald's restaurant has a competition to choose the best "Employee of the Month." The competition "the best Employee of the Month" is an open competition for any employee of the restaurant. The winner will receive a unique watch with symbols of the restaurant, or a bonus of 2000 rubles. This award is added to the monthly wages. The Award depends on performance evaluation as estimations of each employee, every shift is taken into account and all positions are responsible for a unit quality of restaurant's work.
Any employee after receiving certification can get a yellow badge with name and symbols of the company. Such badge indicates that the employee is needed to pay attention. The next certification is a white badge indicating the symbols of the enterprise. The restaurant chain is often a short-term exchange of personnel staffs inside of the company. So, "McDonald's" in Shakhty has a number №260 and the employees are invited from Novocherkassk and Rostov-on-Don. This became possible because of the similar structure of the restaurants network and equipment.
To advertise its products the company uses almost all the means of advertising: as television and radio advertising, outdoor advertising, advertising on the Internet, advertising in newspapers and magazines, flyers, transport advertising, participation in various exhibitions and etc. Also, restaurants often draw visitors' attention by using so called open days when anyone can come to the restaurant and see the process of cooking, and the quality products used for preparation, and everyone can taste and appreciate the quality of dishes. Advertisement "McDonald's" is one of the most recognizable not only in Russia but in many other countries.
To select the most outstanding initiatives in each of these areas McDonald's has collaborated - WWF, BSR, Ceres, and Conservation International. The selected projects received the status of the experts "Planet Champions» (Planet Champions).
Some examples of projects received the status of "Planet of the Champions" in 2012.
Packaging. In Canada McDonald's restaurants use napkins as friendly signs, and special bags as advertising measures.
Introducing green technologies in construction. In the USA McDonald's is planning to build 25 additional restaurants with LEED certification in 2015 as a part of the LEED Volume Program.
Recycling and waste reduction. In Austria, the program is McRecycle, pointing out that 95% of wastes in McDonald's restaurants can be recycled.
Logistics. A lot of trucks are engaged in the supply of McDonald's products they, use 100% bio fuel made of vegetable oil used in the kitchens of the restaurants.
Communication. The Spanish McDonald's restaurant and environmental training of employees is one of the key elements of internal training program.
"Green Office" program is invented by Japanese McDonald's managers who helped about 5,500 employees to achieve a 15 percent reduction of their energy consumption from July to September 2011 [4].
But even in such a large and successful company there are some problems requiring the development and implementation of innovations. Perhaps the introduction of the program is to recruit workers.
Recruitment is a part affiliate program registered as the recommendation to other people, managers. This marketing scheme is widespread in Internet and it requires a registration form in the site, providing some services for a lot of people. In this case, the recommendation is accompanied by a "referral link" containing information about the account party, to be rewarded for bringing newcomers in to the network of the company.
BecmnuK Maeucmpamypu. 2016. № 2 (53). T. II.
ISSN 2223-4047
This program will allow the employee to receive monetary compensation, if a new employee works for more than 4 months in a chain of McDonald's." restaurants. This form of recruitment is based on the responsibility and improving overall level of team interaction and interest. It should reduce part time employees.
After analyzing the possible cases of "turnover" in the company "McDonald's", we can conclude that the main reason is the wrong choice of frames. The second influences can be identified as an insufficient adaptation of personnel to unusual devices of the labor process in Russia.
In order to eliminate the number of "staff turnover", we could organize training costs and insurance costs, the so-called preliminary stage should be introduced. It includes obtaining professional education for young workers under the age of 25 years, as the first position in the company and the process of adapting to it.
The average "turnover" in the chain of restaurants "McDonalds" is 300% a year and the average worker leaves the work place after 4 months, so it is possible to calculate the minimum cost of staff training/ The minimum wage of a worker is 95rub per hour, and duration of a training program is 4 full days of training [5].
95 X 8H = 3040
The restaurant chain has more than 25,000 people, it allows us to calculate the minimum cost of staff training per year (Rub.):
25000 X 3040 X 3 = 228000000
So normal level of "turnover," (according to an Internet resource) [6] is considered to be 80%.
As a benchmark the minimum wage has been selected in restaurant chain as a normal "turnover." According to the online resource 'orabote.net' [7] a chain of restaurants has an average annual "turnover rate" that is more than 80% and at minimum wage of 25,000 rubles. per month for a 10-hour day employment during 21 days a month. Let us consider the minimum hour rate (rub. Per hour):
25000
= 119
10 x 21
Innovation project aims to reduce the "turnover" of a restaurants network to normal levels due to this business segment. To increase employee motivation is to increase the minimum wage per hour to 119rub. As a result, of wage increasing the spending on education in the "turnover" is 80% (rub.):
25000 x 119 x 4 x 8h x 0,8 = 76160000
The average cost of the training course is 1300 rubles. [8]. In the future, it is possible to organize training and team management training. The cost of training in the network of "McDonald's" is:
1300 x 25000 x 1,8 = 58500000
Therefore, while reducing staff turnover from 300% to 80% per year, it is possible to increase the minimum wage to 119rub as trainings and team building profit opportunities (rub.):
228000000 - 7610000 - 58500000 = 93340000
As a result of the innovative project which includes age limit frames, the introduction of the training program and team building we may reduce the cost of training personnel to 93340000 rub. pur year. As a result, reducing the "turnover" will help us to increase the professionalism of the employees, and consequently fit the costs of insurance benefits to employees. In the end, this measure will increase the profit of "McDonald's".
References
1. Organization of activity of the restaurant; // URL: http: // lib.rosdiplom.ru/library/prosmotr.aspx?id=493766 (date of treatment: 06/08/2015)
2. Franchising in the hotel and restaurant business; // URL: http: // otherreferats.allbest.ru/marketing/00190501_0.html (date of treatment: 06/09/2015)
3. The requirement to restaurants "Luxe", "upper" and "first"; // URL: http: // www.xn6kccihhc7eigaqchgr1etf.xn--p 1 ai/0-statii-4.html (date of treatment: 06/09/2015)
4. Top 10 of the largest restaurant chains in the number of establishments on the territory of Russia; // URL: http: // rusfranch.ru/press_center/newsd.php?ID=3337 (date of treatment: 06/10/2015)
5. Top 100 most valuable brands in the world; // URL: http: // www.adme.ru/tvorchestvo-reklama/top-100-samyh-dorogih-brendov-mira-194355/ (date of treatment: 06/10/2015)
6. The Dark Side of America // URL: http: // www.usinfo.ru/macdonalds.htm (date of treatment: 06/10/2015)
7. Staff turnover, a blessing in disguise // URL: http: // www.kadrovik.ru/modules.php?op=modload&name=News&file=article&sid=8498 (date of treatment: 06/10/2015)
8. LLC "Laci groups» // URL: http: // orabote.net (date of treatment: 06/12/2015)
POVOD EVGENY ANDREEVICH - undergraduate Mechanics of Radio Engineering faculty don state technical university institute of service and business (branch) DSTU in Shakhty.
ROLDUGINA ALLA EVGENIEVNA - Associate Professor, the candidate of technical sciences, Institute of service and business (a branch) Don state technical University Town Shachty, Russia.
DMITRIENKO NADEZHDA ALEKSEEVNA - Associate Professor, Institute of service and business (a branch) Don state technical University Town Shachty, Russia.
