Article contributed by Mike Berman, COO, Day & Nite/All Service, with Eric Trude
On the rare occasions trusting your gut creates sustained business success, it’s always a function of exceptional expertise in a given discipline. Nathan Shedroff’s Data-Information-Knowledge-Wisdom (DIKM) Hierarchy coupled with clear-headed objectivity serves as the basis for more than surviving, in any field it is the recipe for thriving.
Data, the most granular of this managerial pyramid is as meaningful as its accuracy. Uncertain source material is certain to create miscalculations far worse than trusting one’s misguided gut, and the unfortunate reality is far too few businesses make necessary investments in this critical exercise while far too many of our previously unimpeachable sources are not as reliable as we need them to be. Everything in our lives is dominated by Covid-19, yet as Science Magazine recently reported there is good reason to question the accuracy of reported cases. However important data purity is to begin with, converting it to information, so that it can be shared with applied knowledge and manifested through operational and organizational wisdom requires diligent expertise.
Undoubtedly, these next few weeks will require greater discipline than any other time in our working lives as the reality of this truly awful year will hit the hospitality industry hardest when closing the books on 4th quarter and this regrettable year at month’s end. The more pragmatic DIKM approach, rather than giving in to the natural temptation of emotionalism, will in many instances determine any business’s fate. For this, meaningful data from highly credible industry sources will help set the stage for closing out the year in the best possible shape while setting up a much brighter 2021.
Pentallect, a leading food industry consultancy, recently released research showing, on average, a foodservice operator has to repair equipment 10.5 times per year, with over 80% of these repairs being paid out of pocket, not covered by a warranty. On average, each repair requires 1.7 parts with an average cost of nearly $45.00 per part. Commercial foodservice equipment was made to be used; given the high volume of dormant equipment over these past few months industry experts like Day & Nite’s NY-based General Manager Refrigeration and Cooking Cory Stuart warn the probability is these units will actually require more emergency repairs when put back into service.
Equally, as streamlined menus have put greater stress on a select group of higher use equipment, odds are greater these units will require more emergency repairs—almost certain to occur at the worst possible time. Quite likely, this presents somewhat conflicting data: economic realities from a dismal 2020 vs economic realities of repairing equipment almost every month, with experts projecting 2021 will see an increase in emergency repairs. Exactly why working DIKM is so vital.
Preventative maintenance has always been a best industry practice, but when Pentallect’s validated data is refined by information and knowledge supplied by experts like Cory Stuart comprehensive PM becomes the wisest business decision for the hospitality industry at this most critical juncture. There’s an undeniable direct correlation between superior PM and dramatic reductions in emergency repairs. Not only does the right preventative maintenance program reduce operating expenses, but there is an equally great relationship to revenue generation as equipment uptime = meals served and repeat customers.
Preventative maintenance is the very definition of proactive management, an essential fundamental this weekly column has stressed on several occasions. Among the many harsh 2020 lessons is when we are not prepared, when we fail to be proactive, we are more likely to be victimized by events we cannot fully control. Whether calculated by an establishment’s investment in foodservice equipment, replacement costs, or the rather obscene costs of recurring emergency repairs, preventative maintenance contracts are truly the best money spent, a belief further confirmed by the vast majority of leading businesses in PM relationships with the Day & Nite family of companies.
Throughout the 4th quarter, Day & Nite/All Service/Popular Plumbing customers have engaged in thorough, highly interactive client reviews. Each of these fine dining, chain restaurant, quick service, corporate dining, and hotel customers have suffered economic hardship this year. Wisely, recognizing the importance of preventative maintenance, many have actually increased commitment and coverage. From more regular ice machine sanitizations to installing UV lights in refrigeration units and grab-and-go’s, proactively maintaining expensive equipment reduces total cost of ownership. These wise executives recognize now is the time to get the highest return on all expenditures, and the preventative maintenance program, with the most qualified professional service organization, generates the highest rate of return. DIKM in practice.
To learn more about how you can apply DIKM principles to your business, proactively get back in control of your destiny through the most cost-effective Preventative maintenance program, email email@example.com And at this special time of year, don’t forget that 5% of all new Day & Nite Preventative maintenance proceeds will be donated to the James Beard Foundation Open For Good campaign.