Countering the Effects of Layoffs

Like many companies, a high-tech firm had to reduce staff. The food service contractor complained that the reduction made the operation unprofitable and requested financial relief.

What We Found: From the customer’s perspective, the service was okay, but hadn’t changed much in several years. The servery and a coffee kiosk in the dining area were neat and attractive, but “the same old thing.” The menu selection was unexciting.

Our Solutions:

• Refresh the menu and add features to match customers’ preferences.
• Introduce an all-debit card payment system. Debit card customers spend more. Thirty hours of cashier time can be eliminated.
• Introduce on-line ordering so a customer’s meal can be ready when he/she arrives.
• Revitalize the servery and coffee kiosk with fresh decor and merchandising.
• Implement a new, customer-involving promotional program. 

Outcome: We presented these recommendations to our client and the contractor’s regional vice president, and assisted in their implementation. Sales rose, not to where they were before the layoffs, but enough so that the food service continues to be self-sustaining and profitable to the contractor.