CC BY
40ECONOMIC SCIENCES
Ravshanov Z.I.
Independent researcher at Samarkand Institute of economics and services DOI: 10.24411/2520-6990-2020-12177 THE ANALYSIS OF PRODUCTIVITY OF CATERING SERVICES IN SAMARKAND REGION
Abstract.
The article highlights the issues and challenges in catering services in Samarkand region. The detailed productivity analysis of catering companies is carried out, and measures to further develop the catering industry is proposed by author.
Keywords: catering, productivity, services, company, Strategy of Actions, costs.
I. Introduction.
Today, the Strategy of Actions for the five priority areas of development of the Republic of Uzbekistan for 2017-2021 sets the task of continuous economic growth, and ensuring macroeconomic stability. This, in turn, is evidenced by structural changes in the economy, an increase in the share of the service sector in GDP. The turnover of the catering sector amounted to 170.5 billion soums in 2018.
The country is achieving positive results in the development of the service sector, including the catering industry. The legal and economic basis for the activities of the subjects of this sphere has been created. As a result of the ongoing economic reforms in the country and the focus on the service sector, the range of services provided to the population and their volume per capita has increased significantly.
However, insufficient attention is paid to the catering sector, which is one of the largest sectors of the service sector, including 17.6% of trade and catering enterprises registered in the country as of January 1, 2017. Now, the economic relations of food service enterprises with economic entities and public authorities
have not been sufficiently developed, and no serious research has been conducted on improving the organizational and economic mechanisms. Also, the activities of catering companies have not been studied in depth, and, accordingly, no economic literature has been published in this regard. Therefore, research on improving the productivity of catering services remains one of the most pressing issues today.
II. Literature review
The economic nature of the activities of service providers and the problems of improving their productivity, including the productivity of catering entities are studied by foreign economists such as A.M. Friedman1, O.P. Yefimova2, K.A. Raitsky3, K.V. Pivavarov4, G. Bychkov5, T.V. Emelyanova6 and others. During the years of independence, scientists of our country have also conducted a number of scientific studies to increase the productivity of food services and domestic trade. In particular, G.H. Qudratov7, M. Pardaev8, I. Ivatov9, M.M. Muhammedov10, B. Safarov11, I.S. Tux-liev12, D.H. Aslanova13, Y.A. Abdullaev14, N. Yuldashev15 and others. Especially, A. Abdukarimov16
1 Fridman A.M. The economy of trade and catering enterprises of the consumer society. - M .: "Dashkov and Co" 2008. pp 625.
2 Efimova O.P. Catering economics. Minsk. New knowledge, 2008, p. 348.
3 Raitskiy K.A. Enterprise economy. Textbook. - M .: ITC "Marketing". 2003. p.683.
4 K.V. Pivavarov Planning at the enterprise.-M .: "Dashkov and Co" 2006. p.245.
5 Bychkov V.G., Khodarova Z.S. Public catering: results and perspective. - M .: "Economics". 1984 .-- p. 239.
6 Emelyanova T.V. Public catering economy - Minsk. High school. 2003.
7 Qudratov G'.H., Pardaev M.Q., Abdukarimov B.A. Service development is a factor in ensuring employment and improving the welfare of the population. Risola. T .: «Science and technology», 2007. - 28 p., Qudratov G.H., Mirzaev H.J., Pardaev M.Q. The main directions of agroservice development. Risola. T .: «Science and technology», 2007. - 16 p.
8 Pardaev M.Q., Isroilov J.I., G'apparov A.Q. Problems of improving economic analysis in the service sector. Monogra-phy. Samarkand. "Zarafshon", 2009. - 66 p.
9 Ivatov I. Restaurant economy in the tourism sector. Study
guide - T .: TSUE, 1998. - p. 131., Savdoda marketing faoli-
yati. Monograph. T .: TDIU, 2004.
10 Mukhammedov M.M. and other Economics of trade. Samarkand. 1998. p. 282
11 Safarov B.Zh. Formation and regulation of market systems in retail trade in Uzbekistan: dissertation abstract for the degree of Candidate of Economic Sciences. - T., TDIU, 1998. -21 p.
12 Tukhliev IS and others Tourism planning. Textbook. T .: "Economics and Finance", 2010.-264 p., Fundamentals of Tourism. Study guide. Samarkand. 2010.
13 Aslanova D.X,. Labor intensity of public catering products and reserves for its reduction: dissertation abstract for the degree of candidate of economic sciences. - Kiev. 1992.-p. 20.
14 Abdullaev Yo.A. General theory of statistics. Textbook. T .: «Teacher», 1993.- 240 p., Fundamentals of market economy: T .: - «Labor», 1997. - 432 p., Macroeconomic statistics. - T .: «Labor», 1998. - 382 p., Statistical theory. - T .: «Labor», 2000.- 448 p., Fundamentals of small business and en-trepreneurship. -T .: «Labor», 2002. - 215 p.
15 Yuldoshev N. Economics of trade enterprise.-T .: TSU. 2005. - 164 p.
16 Abdukarimov B.A. Domestic trade economy. - T .: «Science and technology», II volume 2008.- 224 p.
and MK Mirzaev conducted deep research in this sphere.
However, the analysis of theoretical studies and scientific literature shows that the issues of increasing productivity in the food service sector have not been fully explored in terms of national characteristics, as well as from the point of view of mentality.
III. Methodology
The method of economic analysis, logical induction and deduction as well as methods of synthesis are used in this article. Our research is based on findings of previous studies in the sphere of catering services.
IV. Analysis and results.
The overall productivity of catering companies is defined as the ratio of turnover to costs. That is:
T
C = X;
Here,
C- productivity,
T- turnover,
X -costs.
The productivity of catering enterprises is reflected in achieving the goal of the lowest possible cost. Namely, productivity is determined by the following systems of indicators:
- production - technological productivity represents the level of use of material and labor resources and is determined by such indicators as return on assets, capacity of funds, labor productivity;
- production - economic productivity is measured by the overall performance of production; gross product value, profit, profitability, cost recovery.
The productivity of catering establishments depends on a number of internal and external factors. The demand for products and services of public catering establishments is shaped in the process of delivery and production. In many ways, the productivity of an enterprise depends on the demand that is formed in the external environment.
The formation of demand depends on the policies (price, advertising, etc.) that are formed from within the enterprise. Properly organized brand policy increases the productivity of public catering establishments, and contributes to the formation of external demand.
Advertising is an important factor in the market of services, especially for catering establishments. In general, it is expedient to express the system of productivity of service enterprises in catering enterprises as follows. (Figure 1)
The system of productivity indicators in catering enterprises. Figure 1
These indicators represent the following groups:
1. General economic productivity indicators (cost productivity, cost profitability);
2. Resource productivity indicators;
A) indicators of the productivity of fixed assets (return on assets, capacity of funds, return on funds, turnover and profit per seat);
B) indicators of working capital productivity (working capital turnover rate: days, times; working capital return);
C) indicators of labor productivity (labor productivity, profit per employee, profit per soum of the salary fund);
Retail turnover is taken as an indicator of the effectiveness of catering services. It is therefore advisable to identify the elements that make up its composition.
The retail turnover of catering companies includes:
• Sale of home-made semi-finished and finished products, as well as imported and sold products for cash. Proceeds from the sale and delivery of goods through shops, culinary departments and other trade networks of the catering enterprise;
• sale of home-made semi-finished and finished products to legal entities for social purposes by money transfer;
• sale of self-made semi-finished and finished products, as well as imported products to workers, provided that they are deducted from wages in the future;
• sale of flowers, souvenirs and other non-food items;
The number of catering companies in Samarkand region in 2018 amounted to 1458. We analyzed the performance of service enterprises in 18 catering establishments located in different regions of the region in order to more accurately assess the productivity of service enterprises in catering establishments. However, due to
the limited scope of the article, we present catering establishments located in different regions and in different forms of ownership.
Table 1
Average productivity of services in catering companies operating in Samarkand region.
№ Indicators Enterprises
Restaurants Cafe Canteen
1. Productivity:
Costs, soums 4,06 3,28 1,17
Return on fixed assets, soums 67,2 55,3 36,7
Capacity of fixed assets, soums 0,014 0,018 0,027
The speed of turnover, days 11,7 9,8 7,3
2. Profitability indicators:
costs, % 12,6 10,7 9,9
Fixed assets, % 26,9 21,7 16,8
turnover, % 43,5 27,8 21,6
3. Labor productivity, thousand soums 11978,7 9871,6 7852,0
4. Profit per employee, thousand soums 1234,3 785,4 497,9
The table 1 shows that the productivity in service enterprises varies in different organizational forms of catering. Among catering enterprises restaurants have the highest average level of productivity and profitability, where the cost-effectiveness is 4.06 soums and the profitability is 12.6%. This is 17.8% more than cafes and 27.3% more than canteens. Also, in cafes operating in the region, the productivity was 3.28 soums and the profitability was 10.7%. The lowest levels of productivity and profitability were observed in the surveyed canteens. Their average productivity was 1.17 soums
and profitability was 9.9%. This means that their productivity is 2.89 soums lower than in restaurants and 2.11 soums lower than in cafes. Profitability is also down 2.7 and 0.8 points, respectively. Therefore, it was necessary to focus our research mainly on service enterprises in the category of catering establishments with relatively low productivity in the industry.
We also conducted economic analyses in the example three catering enterprises: Bulungur NOC, "Yoshlar" LLC, and "Kamolot prestige" PC. The results are presented below(Table 2).
Table 2
The performance indicators in various forms of ownership of catering companies operating in Samarkand
№ Indicators KopxoH&rap
Bulungur NOC "Yoshlar" LLC "Kamolot prestige" PC
1. Retail turnover, thousand soums 245516,0 85101,0 36455,0
2. Total costs, thousand soums 234260 79934,0 30661,0
3. Fixed assets, thousand soums 9223,0 56747,0 1205,0
4. Turnover funds, thousand soums 13074,0 28398,0 5510,0
5. Number of employees 30 17 8
6. Profit, thousand soums 11256,0 5167,0 5794,0
7. Productivity:
costs, soum 1,05 1,06 1,19
Fixed assets, soum 26,62 1,5 30,25
Turnover, soum 18,78 3,0 6,62
8. Profitability, %
Costs, % 4,8 5,5 18,89
Fixed assets, % 122,1 9,1 480,8
Turnover, % 86,1 18,2 105,2
9. Labor productivity, thousand soums 8183,87 5005,94 4556,87
10. Profit per employee, thousand soums 375,2 303,9 724,3
In 2014, the turnover capital of Bulungur NOC accounted for 18.78, in "Kamolot-Prestige" constituted 6.62, and in "Yoshlar" LLC equaled to 3 .
Profitability ratios also varied from enterprise to enterprise. Bulungur NOC had the lowest level of profitability relative to costs (4.8%). The highest level of profitability in terms of costs accounted for the private
company "Kamolot-Prestige" (18.89%). At "Yoshlar" LLC, the figure formed only 5.5 percent.
The private company "Kamolot-Prestige" also ranks first in terms of high levels of return on fixed assets and working capital. The return on fixed assets was 480.8%, while the return on working capital was 105.2%. These figures were 122.1 and 86.1% for
Bulungur NOC, respectively, and 9.1 and 18.2% for "Yoshlar" LLC.
Bulungur NOC is in the first place in terms of high productivity of employees involved in economic activities. Each of its employees had a working capital of 8183.87 thousand soums. The second largest company, "Yoshlar" LLC, had a turnover of 5005.94 thousand soums per employee, while the private company "Ka-molot-Prestige" had a working capital of 4,556.87 thousand soums per employee.
V. Conclusion and discussion.
In general, on the basis of analysis we learned that restaurants do better than other catering establishments owing to the diversified services, and skilled employees. Café also outperformed canteens as expected. In addition, we learned that larger enterprise (Bulungur NOC) had lowest profitability rate, probably, because of high maintenance costs, however, regarding the productivity of employees it outperformed other companies. So, we can conclude that in Samarkand opening a restaurant can be a good idea, however, special attention should be paid to the quality of human resources, as this factor plays an important role in gaining competitive advantage.
We propose to take following measures to further develop the catering services in Samarkand region:
1) Subsidize catering companies, especially, small and medium sized ones;
2) Ease the tax burden, and bureaucratic hurdles for start-ups in catering services;
3) Encourage high quality catering services by arranging contests among catering companies;
4) Monitor and control the quality of catering services using digital technologies;
5) Apply feedback mechanism of self evaluation for every enterprise in the region.
References
1)Fridman A.M. The economy of trade and catering enterprises of the consumer society. - M .: "Dash-kov and Co" 2008. pp 625.
2)Efimova O.P. Catering economics. Minsk. New knowledge, 2008, p. 348.
3)Raitskiy K.A. Enterprise economy. Textbook. -M .: ITC "Marketing". 2003. p.683.
4)K.V. Pivavarov Planning at the enterprise.-M .: "Dashkov and Co" 2006. p.245.
5)Bychkov V.G., Khodarova Z.S. Public catering: results and perspective. - M .: "Economics". 1984 .-- p. 239.
6)Emelyanova T.V. Public catering economy -Minsk. High school. 2003.
7) Qudratov G'.H., Pardaev M.Q., Abdukarimov B.A. Service development is a factor in ensuring employment and improving the welfare of the population. Risola. T .: «Science and technology», 2007. - 28 p., Qudratov G.H., 8)Mirzaev H.J., Pardaev M.Q. The main directions of agroservice development. Risola. T .: «Science and technology», 2007. - 16 p.
9) Pardaev M.Q., Isroilov J.I., G'apparov A.Q. Problems of improving economic analysis in the service sector. Monography. Samarkand. "Zarafshon",
2009. - 66 p.
10) Ivatov I. Restaurant economy in the tourism sector. Study guide - T .: TSUE, 1998. - p. 131., Sav-doda marketing faoliyati. Monograph. T .: TDIU, 2004.
11) Mukhammedov M.M. and other Economics of trade. Samarkand. 1998. p. 282
12) Safarov B.Zh. Formation and regulation of market systems in retail trade in Uzbekistan: dissertation abstract for the degree of Candidate of Economic Sciences. - T., TDIU, 1998. - 21 p.
13) Tukhliev IS and others Tourism planning. Textbook. T .: "Economics and Finance", 2010.-264 p., Fundamentals of Tourism. Study guide. Samarkand.
2010.
14) Aslanova D.X. Labor intensity of public catering products and reserves for its reduction: dissertation abstract for the degree of candidate of economic sciences. - Kiev. 1992.-p. 20.
15) Abdullaev Yo.A. General theory of statistics. Textbook. T .: «Teacher», 1993.- 240 p., Fundamentals of market economy: T .: - «Labor», 1997. - 432 p., Macroeconomic statistics. - T .: «Labor», 1998. - 382 p., Statistical theory. - T .: «Labor», 2000.- 448 p., Fundamentals of small business and entrepreneurship. -T . : «Labor», 2002. - 215 p.
16) Yuldoshev N. Economics of trade enterprise.-T .: TSU. 2005. - 164 p.
17) Abdukarimov B.A. Domestic trade economy.
- T .: «Science and technology», II volume 2008.- 224 p.
