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First summer month is finished getting us to the half year line. First six months have been anything but boring – full of challenges, interesting numerous projects, exciting communication calendar



Dear team,

First summer month is finished getting us to the half year line. First six months have been anything but boring – full of challenges, interesting numerous projects, exciting communication calendar activities – real work hard play hard!

 

According to tradition, prior to half year JPA – these days we call it Career Discussion – as I have been analyzing our business in Russia, I was looking for one word that describes it best. Confidence – is the one! Why confidence?

Confidence comes from the Middle French, prior directly from Latin, consists from com – prefix used to intensify the following word and fidere – verb to trust, have faith. So the word means “have full trust and reliance, bold faith” – and this is exactly how I feel about the team in Russia, about what we have achieved so far and about to achieve!

Lets walk through main business pillars together so that we can share CONFIDENCE…

Our customers are demonstrating a lot of confidence in our brands by

Ø Choosing us over competition, by loving our products despite unstable economy - We are at 105 SST in KFC and 106 SST in PH!

Ø Willing to express their opinion to us – our GES response has come from over 43 000 customers so far with OSAT over 60 in each brand!

A lot of creativity and discipline is behind those numbers – Marketing, SCM, Operations. This time I would like to share two great stories coming from PH marketing team.

We have impressive results from our Pizza Hut Mobile application and a lot of satisfied guests. Activities in June as usual brought good results, about 9.5% of “lost guests” visited us thanks to CRM communication channel.

The number of downloads still grows, now we have about 60 000! And the penetration of Mobile app is stable between 20-30%.

This June we finally produced our annual lottery “Otkrytka-Kometa” based on CRM platform this time, so we can expect higher redemption rate due to personalized service and communication that CRM platform provides us.

Another big step in Pizza Hut brand is launch of revitalized menu. We changed attitude to menu structure, made it modern thru unique design and our own concept, added personalized approach to guest’s choice. We believe our loyal guests will be happy to visit us more often and new guests will consider Pizza Hut as a modern “advanced” brand.

Our NSO remedy is getting more and more pace with each week. Lenya recognizes Managers in restaurants are gaining confidence in their Action Plans, in improving Operational excellence, in closing the gap to Capex.

Within June NSO restaurant have grown by 4% in daily sales. After 26 weeks of 2015 our Index L4W (the average sales percent in last 4 weeks to Capex) for restaurants opened in 2014, has reached the level of 84%. Our movement upward continues J!

In June the restaurants in Kazan are the fastest in their growth: KFC Kazan Vishnevskovo, growth by 15%; KFC Kazan Zelenodolsk Lite - 14%, and also KFC Petrozavodsk PTK – 10%.

 

In order to gain the hearts and minds of even more guests the program we have been developing during last half year – Secret Service is finally ready for launch. We remember those who tested the program, those who developed it – now its time for EACH of YOU make it life. Galya and the team of SS have designed SS for success. There are for part of the program:

Ø New approach for running a shift

Ø New Suggestive selling approach

Ø Revitalized steps of service

Ø Top100 program

We will measure the new philosophy of serving customer in 2015 by

 

 

The launch will take place in the whole system – starting with CIS board, through RST to Operations. It will take us not only substantial time and effort – it implies a lot of CONFIDENCE from each of crew, each manager leading a shift, each leader.

Our operational excellence is pacing up with confidence.

All the above would be not possible without YOU! Our people results have been confident in the last 18 months – IMS, Staffing, engagement are stable in their high targets.

The AmRest Cultural Calendar has reached new heights as well this year, scaling up. For example, on 27th of June AmRest appears as the general partner of «The Day of Youth» in St Petersburg. Thanks to Ira Tankovich and Lena Gavrilina for organizing our participation in the event, accumulated 50 thousand people. As for today the winners of our traditional online competition BFTL have been chosen. But it’s just the beginning of BFTL! There’s a winners’ award ahead and a big surprise in July.



As we are progressing we will want to focus more on our T/O. HR with Illya and Zhargal are still confident we will nail the 2015 goal, now

Ø How many crew left your restaurants YTD?

Ø What was the feedback?

Ø Who is the best AsM in your region?

Ø What can you (GM) do to ensure your AsM is best?

Area Coaches have developed a lot of confidence in their roles and responsibility for the brand performance. They have been exposed to a lot of training, challenge, out of comfort zone leading and most of them made a great step forward. Margin committees have brought us over 85 MLN Rubl leverage in EBITDA (vs AOP) and Max with ACs claim they are still in process!

Im confident they look forward to their Career Discussion to set further developmental targets and review their competencies. For the later we have put together the 360s for each of them to get quality feedback from peers, bosses, RST team they have cooperated closely in the last half a year.

Are you looking forward to your CD?

 

Ø What is the status of your goal realization?

Ø What new skills have you learnt?

Ø What is your next challenge?

RST leaders show their confidence with taking more accountability for the results happening not only in their department, yet reaching out to operations! I am happy to see and hear how Yulia Koptyaeva works with landlords to get our rent levels in reasonable saving mode – she managed with her team to get over 40 MLN YTD saving (vs AOP) so far! How Irek Haibullin manages our break downs without waiting for guarantee companies that take ages. How you already got used to what Maciej Mausch has introduced with his team – early closing, so that we have DOS+ and P&L almost simultaneously.

This due to mutual efforts of SCM, Development and ACs, supervised by Andris that we have defended our position with RPN in Moscow. Andris likes to say it was the rehearsal – real challenge is to come in August. So Ira Noskova showed great sense of urgency and organized the thorough system of preparation in St Petes. I am confident with such a team – we will come out of it clean and strong and having amended all the little “sins“ we have acquired through years of operating business. As you are planning your July, please ask yourselves:

Ø Is your restaurant ready today for RPN?

Ø Where are you in AP RPN realization?

Ø What support do you still need from RST? AC?

Ø Do all of your managers know what to do when the audit comes?

Ø What gives you confidence?

July will open the second half of 2015. How would I like us stand in another six months?

Im confident you already knowJ

 

See you in the restaurants,

Oksana

P.S. as usual, please expect to receive the letters from your DCs with your district summary, next month district priorities and call to action – im sure you already made it part of your routine to print it out and set it as a guide for you to plan your restaurant priorities!

 


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