In response to a recent study findings on the key success factors for smaller F&B businesses, SPC has rolled out three packaged solutions in menu engineering, process redesign and financial management, to support companies in strengthening these three core operational areas.

Companies taking up these packaged solutions may also tap on SPRING Singapore’s Capability Development Grant (CDG) for funding assistance of up to 70% of project costs.

The CDG aims to help Small and Medium Enterprises (SMEs) defray qualifying costs of their capability upgrading projects to improve productivity and develop business capabilities for process improvement and financial management. For small-scale projects, the application process for CDG support of S$30,000 or less has been simplified.

Smaller F&B businesses can now look forward to simpler application forms and reduced documentation requirements for such projects.

Menu Engineering

The menu is a key marketing tool for Food Services businesses. A well-constructed menu maximises profits by influencing customers’ decisions to order menu items that contribute most to your profit margins.

Evaluate and re-engineer your existing menu by considering the following factors:

  • Popularity and profitability of menu items
  • Design of menu to influence customers’ behaviour
  • Skills and knowledge of employees in using the menu to upsell

About the Solution

The solution aims to assist companies in the Food Services sector to increase their productivity and profitability through menu engineering. It involves selecting, costing, pricing and assessing menu items, taking into account the concept, value proposition and target market of the company.

Expected Outcomes

  • Increase in sales and profit margins by eliminating poor-performing menu items, and highlighting profitable items to customers, hence creating top-of-mind recall of signature menu items
  • Reduction of costs caused by menu items with poor margins

What it involves

SPC Food consultants will provide consultancy assistance to the company, covering the following steps:

  • Determine value proposition and positioning of the company
  • Assess profitability of current menu
  • Develop recommendations and re-design menu
  • Pilot test and refine
  • Training of employees to ensure knowledge transfer
  • Implementation
  • Conclusion

Process Redesign

Many processes in smaller F&B businesses are laborious. For example, doing food preparation from scratch, dishwashing, ordering and serving of food. Such processes can be redesigned and supported through automation to reduce businesses’ reliance on manpower.

Smaller F&B businesses that take steps to simplify labour-intensive or inefficient processes are able to make more efficient use of their manpower resources, thereby increasing productivity. This can be done by redesigning the kitchen and shop-front workflow, or by leveraging on some form of automation and technology.

About the Solution

The solution aims to assist companies in the Food Services sector to increase their productivity by redesigning their workflow. It focuses on the following key processes that are typically labour-intensive or inefficient:

  • Queue management and reservation
  • Ordering, billing and payment; food serving and clearing
  • Food preparation and dishwashing
  • Inventory management (receiving, storage, drawing of stocks)

Expected Outcomes

  • Increase in process efficiency by eliminating waste or non-value added steps
  • Reduction of costs caused by inefficient processes

What it involves

SPC Food consultants will provide consultancy assistance to the company, covering the following steps:

  • Identify the key processes to address to raise productivity
  • Map existing processes, measure and identify waste / non value-added steps
  • Develop recommendations and a detailed action plan
  • Pilot and refine
  • Develop SOPs on revised processes
  • Training for employees
  • Implementation
  • Conclusion

Financial Management

Successful smaller F&B businesses are able to manage their working capital and cash flow efficiently, accurately and sustainably. Strong financial management processes could include proper bookkeeping, regularly assessing vendors and suppliers’ cost-effectiveness, tracking of inventory turnover, etc.

Even F&B businesses with strong sales can eventually fail, if they do not manage their finances well.

While it may seem daunting and challenging for some business owners and proprietorship to put proper financial procedures in place for budgeting and cash flow management, it is imperative to do so to sustain daily operational expenses and requirements.

About the Solution

Efficient working capital management allows a company to sustain its operations with sufficient ability to meet short-term debt obligations and daily operational expenses. This solution helps companies to improve their working capital management so as to be more effective in their operations.

Expected Outcomes

  • Improve cash flows by managing payables, and improving receivables and inventory turnover
  • Prepare working capital projections
  • Identify other financing options to meet working capital requirements

What it involves

SPC Financial Management consultants will provide consultancy assistance to the company, covering the following steps:

  • Assess current working capital performance and processes
  • Identify areas for improvement
  • Propose improvement to existing processes and internal controls
  • Develop recommendations and a detailed action plan
  • Pilot and refine
  • Training for employees
  • Implementation
  • Conclusion
  • Post-implementation review