Module 1 – Intro

Gross Margin (GM) is fundamental for every company within the Food & Beverage industry. GM is the actual profit for each sold item (Sandwich / Juice / Coffee). In JOE & THE JUICE, no matter which country we operate in, GM has the same effect. One of the biggest differences between JOE & THE JUICE and a lot of other Food & Beverage companies is that we don’t have pre-made products that can be thrown out at the end of the day. This plays a huge part in our ability to maintain a high Gross Margin compared to many others in the Food & Beverage industry. Although, because of the fact we are dealing with fresh products, made quickly on demand, our concept depends on a strong waste control in every store to perform as a company.

1.2 Joe & The Juice Waste & GM Philosophy

Back in 2002 when our first store opened, we didn’t have the same focus on our GM. Product manuals weren’t upheld the way they are today and we didn’t have the same consistency in our products. We created a culture where Juicers visited their own or other stores daily and had free products while hanging out with their fellow Juicers. The culture back then created a strong community which ended up being one of our strengths as a company, the special JOE Culture. In 2012, we began to put great emphasis on our expansion. As part of our expansion, we had to focus more on our GM & Waste. With having more stores, the significance of high waste and uneven product quality had a bigger impact so we needed to improve drastically to prevent it from ruining our brand! Due to our continued expansion, the significance of Gross Margin and Waste is now a major part of our operation.

The product manual became a crucial tool to follow for maintaining the correct product quality and at the same time ensuring an optimal GM. The WasteApp was created to keep an overview of missing and wasted products. Now the Waste feature is a part of the list. Waste on the List helps us monitor every individual stores’ waste and this feedback is used to train and improve waste in our bars We strive for a minimum target GM of 80% and a waste of 3%. We’ve determined that these numbers can secure our general stock control so we can expand in a healthy way while keeping a high product quality for our guests. It’s important to recognize that waste has a huge influence on our GM, as everything missing or wasted is a loss of money. Therefore, we strive for consistency on both parameters as further explained in Module 2.

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1.3 The GM Ladder

The GM Ladder illustrates the 4 key aspects we need to understand to create a healthy GM & Waste in JOE & THE JUICE.

• First you need a GM & Waste understanding to know why these numbers are so important and how to influence them.

• You then need to understand how to analyze your store’s numbers & create a constructive report for your team.

• Next, you need an understanding of all GM & Waste ‘Back End’ processes to establish a healthy stock, keep control of your counting, and communicate with your Purchasing Manager to create consistency.

• Finally, you need to be able to execute in the bar, training your Juicers, and implement your knowledge practically.

Module 2 – The definitions: GM & Waste Explained

It is important to understand that GM is not necessarily the same for every market. For example, in Denmark, it is required to have a minimum GM of 80%. This number is determined by the product manual for the market, the local cost of goods, and the price we sell our products for. In Australia, the GM can be lower due to a higher price of goods and lower selling price. An acceptable GM can therefore be higher or lower than 80% depending on the market.

The acceptable waste % levels however are the same for all markets. The waste % identifies how the bar manages its goods regardless of the cost of goods or selling price. So, a GM in DK can be 82%, but the waste can still be above 4% which is not ideal. This will be further explained in Module 3: Reporting.

2.1 Examples of How To Define GM

To illustrate how we calculate the GM we use the following simplified example.

We sell 1 PMU for 10 USD. The total cost for making this product is 2 USD, therefore, our profit is 8 USD for one PMU. This gives us a GM of 80%. (Total profit)

CALCULATION IN NUMBERS:

Apples: 1 USD
Bananas: 0,25 USD
Strawberries: 0,25 USD
Cup: 0,25 USD
Straws: 0,25 Cost=2USD

Sell Price: 10 USD
Profit: 8 USD
Total GM = 80%

2.2 Concrete GM Examples related to Joe & The Juice

As a food and beverage company, turnover and GM are always the key factors to drive for how we can improve. Our product manual is what we use to ensure all products taste the same no matter where you visit a JOE & THE JUICE store worldwide. At the same time, following the product manual is essential for our GM because it instructs exactly what we need to add in the juice or sandwich to achieve the correct GM on each product.

As much as we want to improve our GM, it’s crucial that we NEVER compromise by making a poor product! Instead, we follow the IMS on both prep and while making products so we are able to achieve both the right GM and product quality. If we compromise on the product we will end up losing business. Any guest visiting our stores expects a high product quality and if we compromise on this, then we are providing a poor guest experience which will result in them not returning to our stores again. Therefore, we do not in any way compromise on the quality to get a higher GM as it will decrease our turnover due to lack of quality. If we have a high GM but no turnover, then it is completely irrelevant!

2.3 The Tomato Dilemma

In JOE & THE JUICE, we aim to hit the best possible GM, but we NEVER compromise on the quality!

What difference does it make if you put 3 tomatoes in a sandwich instead of 4? 1 whole tomato costs us 0,10 USD, if we follow the ideal prep we need 12 pieces from one tomato setting the price for 1 slice of tomato at 0,07 USD. – simply not worth compromising the quality to gain 0,07 USD. Guest experience is key!

We believe in making quality products EVERY TIME and doing so in an honest way, will create more loyal guests which results in more turnover.

2.4 Waste Management

To improve your GM, you need to manage your waste. Waste is defined as the total food costs we throw out every week. This is not to be compared with turnover but only goods which have been wasted. An example could be having a ‘waste total’ of 100 USD. If one box of avocados cost 20 USD, you would have thrown out 5 boxes in a week. The focus is to minimize the number of products being thrown out every week. There are many areas that influence your waste and will help you improve your ‘waste total’.

• Product Manual / Prep Manual
• Ideal Prep / Ideal Stock
• Counting
• Delivery
• Stockroom & Bar Structures

2.5 GM Snake (Gross Margin Snake)

2.5.1 Count

The count is the most important assignment with GM & Waste because it determines the store’s overall usage for the entire week (count to count). Therefore, it is vital that you are extremely thorough with your count. All HQ reporting is taken from your count data. This means that any inaccuracy from your counts will cause misleading reports.

Ground Principles for Counting:

1) ALWAYS PERFORM YOUR COUNT IN ONE GO & TAKE YOUR TIME

• Don’t stress when you are counting as this causes you to be unstructured and unfocused.

2) COUNT CHRONOLOGICALLY FOLLOWING THE ACTUAL COUNT TEMPLATE ITSELF.

3) REMEMBER THE “3 LAYERS” – STOCKROOM, BAR & PREPPED PRODUCTS

4) KEEP YOUR STOCKROOM & BAR ORGANIZED AND CLEAN.

5) SET UP A STRUCTURE WHICH YOU ALWAYS FOLLOW BOTH IN THE STOCKROOM & BAR.

• This is to establish a stockroom and bar which is organized so you always know where everything is and prevents you from missing any items during a count.

6) COMMUNICATE STRUCTURE

• Make sure your Juicers are aware and uphold your structure to prevent items from being misplaced causing incorrect counts.

7) CHECK YOU ARE ACTUALLY COUNTING IN THE CORRECT QUANTITY BEFORE COUNTING ANY ITEM

• It can be a huge counting mistake to count grams instead of kilos or kilos instead of grams. Therefore, make sure you are aware of what quantity you need to count in.

8) COUNT KEY PRODUCTS AS PRECISE AS POSSIBLE

• Items that are expensive to buy in, such as avocados, are crucial to count correct, as a miscount of these can cause a huge difference to the GM.

9) ONCE YOUR COUNT IS COMPLETED LOOK IT THROUGH

• Check for any mistakes by looking through everything counted and make sure you didn’t miscount any items or mistyped the amount.

After each count, go through your stock to check if you are too high or low in stock on certain items, then inform your Purchasing Manager. You should also bear in mind that the Purchasing Manager is not in your bar on a daily basis. Therefore, you need to let him/her know if you are too high or low in stock to ensure you receive a delivery that suits your need.

2.5.2 Ideal Adjustment

Your Purchasing Manager is responsible for setting and updating your ideals. This means all food items and 2-Go materials you have on your count are set up with an ideal for how much you need until the next delivery. If you have an ideal on 25 whole milk and you count 10 whole milk you will automatically receive 15 whole milk for the next delivery.

All your ideals for every product are controlled by The Purchasing Manager, who oversees ordering goods for your next delivery. The Purchasing Manager changes these ideals regularly to order the most accurate amount of stock for you, week by week. Ideals are frequently raised or lowered during the different periods of the year. In winter, we are usually not as busy as in summertime. Therefore, summertime requires more goods and the Purchasing Manager will slowly increase to prepare for summertime.

To create the best ideals for your bar, the Purchasing Manager needs constant feedback from you. You work in the bar every day and can provide the Purchasing Manager with important information. Your bar might sell a lot of Signature Juices compared to the average and therefore, you need extra cucumber and kale. This information is crucial for your Purchasing Manager, as the Purchasing Manager won’t know unless you communicate it.

2.5.3 Deliverance

Two times a week you receive a delivery. When receiving a delivery, your most important tasks are to verify everything is there and control the temperature & quality of the received goods. There are 2 key checks to make when receiving a delivery:

1. Temperature
Check the temperature of the received goods to make sure the temperature is within the allowed temperature range.

2. Quality
Check the packaging is not damaged or broken and the goods are not in any way rotten or moldy.

2.5.4 FIFO

Is fundamental for healthy stock. FIFO means “First In, First Out”. FIFO is the goods ‘workflow’ from when we receive our goods, to which order we use them. To maintain a healthy stock, you need to establish a FIFO structure in your bar and uphold this with your team.

KEY POINTS ON FIFO

• If food items are placed on a shelf always keep the food items that expire first at the front or at the right side of the shelf.

• If you stack up food items make sure the oldest are stacked on top.

• Make sure each food item is only stored in one place to prevent Juicers taking goods “from the wrong stock”. This applies both in the stockroom and in the bar.

• Make sure the structure in the bar and stockroom makes it obvious for the Juicers to see where to take from.

• FIFO is often forgotten in displays. Always take from the display first and then re-fill.

• Follow up on FIFO daily to make sure it is always being followed.

• Make sure to always communicate FIFO structures with the team

• Even on food items that last for a long time (Vanilla Milk, Tuna, and Oil) FIFO structures need to be followed always.

• When prepping make sure to place the oldest food items prepped at the top of the canteen.

• If any circumstances require you to re-do the FIFO structure, either permanently or for a short time, it’s crucial that you communicate this to your team

2.5.5 Communicate Stock

Check the temperatures and quality then stack away the delivery following the FIFO structure. Once this has been completed you need to communicate the stock with your Purchasing Manager.

You need to inform your Purchasing Manager if:

• Items are missing

• Packaging is broken

• Quality is not satisfactory

It is crucial that you check the quantity of each bag or box (kg., pcs., etc.), you receive is correct.

We need to make sure what we order is exactly what we get. In this perspective, you are the most important person for this task, as you work in the bar and are responsible for the delivery. – Explained further in Module 3.

2.5.6 Verify Deliverance

To verify your delivery, you need to make sure to check the order confirmation from WorkPlanner and confirm we received all items that are listed on this. You need to be sure if the quantity is correct. If you receive 6 bags of carrots with 10 kg in each, check the order list and verify the number of bags is correct and each bag is containing 10 kg. If there is any mismatch between the order confirmation and the actual delivery inform your Purchasing Manager. Never verify the delivery with the delivery Note ONLY the Order Confirmation from WorkPlanner, which is under Store Task.

2.5.7 Ideal Stock

This task is often carried out during the last shift change of the day (in the afternoon). The purpose of Ideal Stock is to keep the bar stocked with all items needed for an entire day. Ideal stock is a highly important tool because it helps you create a healthy workflow for all your stock.

2.5.8 Ideal Prep

The morning shift always needs to prep for the entire day. All bars have an Ideal Prep sheet which shows exactly how much needs to be prepped.

2.5.9 Measurement

Once the backend tasks are taken care of, you need to work operationally training your team. As a tool for this we use our Juicer Assessment sheet:

This is used to follow up on your Juicers’ skills in making all products following IMS and with the correct product quality. By using this, you obtain data on your team’s performance and can identify Juicers who require extra training. Ongoing focus towards training your Juicers is essential because we make every product fresh and on demand. That requires us to focus on training new Juicers but also to follow up on experienced Juicers.

To maintain a consistent and good GM, you need to focus on both the backend and operational side to succeed.

Type-in Culture (TIC)

This involves POS Sales, Employee Meals, Loyalty Redeems which all need to be typed in on the POSApp, Waste needs to be typed in on our Waste Feature. It’s crucial that everything is always typed in to provide us with valid data.

Weekly Waste / GM Report

Operationally, the most important task for you is to involve your team. To guide, motivate, and ignite them. Analyzing your Weekly Store Performance Report (WSP) and setting focus points for your team whilst working BTC on improving these will create consistency in your GM numbers. Always keep the reports constructive and give credit to your Juicers when achieving good numbers. IT’S A TEAM EFFORT!

2.5.10 Reporting

As a GM/Waste responsible, HQ provides you with different tools to use. For you to analyze the reports you need a fundamental understanding of the reports we provide you and how to critically analyze them. It’s important to constantly keep your focus on your numbers, both while analyzing and when working BTC because we want to create numbers that are consistent and then improve on them. We have 3 different tools for you to use:

• WEEKLY STORE PERFORMANCE (WSP)
• GM SNAKE
• STORE USAGE (SU)

WEEKLY STORE PERFORMANCE (WSP):
Includes different figures which correlate to each other. The most well-known example is the Loyalty sales effect on GM.

Loyalty:
Loyalty shift is a key factor for your GM. When redeeming more than you have sold it will result in a decrease in GM, when you sell more Loyalty than you redeem you will have an increase. A strong Loyalty sale week to week can establish a steady and high GM, which is a good thing, but you still need to focus on all other aspects throughout the GM snake to remain consistent. If suddenly your Loyalty Sales drop, your GM will also decrease significantly if you have not maintained all other Waste control areas.

Employee Meals:
The focus should be on having a steady Employee Meal amount week to week, by making sure your team always register their Employee Meals. If they fail to do so then you cannot rely on all your other key numbers, as it can be the lack of type in from your Juicers which is creating negative figures in your report.

Apple/Milkshake Usage:
Make sure your Juicers always type in a Juice when you sell a Juice and Shake when you sell a Shake so the actual usage is as precise as possible. Focus on cleaning the centrifuge between Juice and measurements when making products.

Missing Bread/Cups:
All type in needs to be correct and make sure your Juicers are not burning bread or making the wrong products but if so make sure they register it.

Waste:
Is a key figure. Your most important task is to prevent waste. If your waste is high, always first check your stock levels as they most often are the cause for high waste percentages.

GM:
Can be improved by selling Loyalty but the main focus is to control Waste to create a stable GM. Correlations: As mentioned most figures on the report have a correlation. To emphasize the importance of understanding these here is an example;

From these numbers, Rødovre could be perceived as the best performing store, looking only at GM.

Looking at these numbers, adding Waste, Gl. Kongevej 2 actually outperforms Rødovre. So, which is the better performing bar?

This is a question of consistency. While Rødovre is performing better on the GM, they still have a high waste percentage which is not healthy when creating consistent numbers. If they had done a good job on waste, they would have achieved an even higher GM but they haven’t been consistent in their numbers.

Gl. Kongevej 2 has a lower GM but their Waste percentage is extremely good, showing they have made a strong overall performance. Therefore, from a Purchasing Manager’s point of view Gl. Kongevej is better as their numbers are more stable.

GM Snake: See Module 2.5 Store Usage (SU): Store Usage displays how much stock you have used in a week for each product. You can use this tool to analyze which products you are overusing. It indicates how much you have wasted, how much you have used, and how much you ideally should have used each item. If we look at this report, it shows PRODUCTS, WASTE, USED AMOUNT, UNIT TYPE, IDEAL USAGE, and DIFFERENCE (between used amount & ideal usage).

IF WE ANALYZE THE USAGE:

Coffee

• 0.9 Waste indicates that almost nothing has been thrown out which is the goal for all products.

• Comparing the Used Amount to Ideal Usage (3,9 kg. used compared to 2,9 kg. ideal usage).

• Gives a Difference of 0.9 kg. which is minor over-usage but still close to the ideal amount.

To summarize, this is very close to an Ideal Usage meaning this bar is doing a good job using the correct amount of coffee.

Avocado

• 4 pcs Waste. It is not a very high number of registered waste, so perhaps a bad type in culture.

• Comparing the Used Amount to Ideal Usage they have used almost 88 pcs more than they ideally should have. (Either the BM has not done a good job setting ideals for avocados or the store has received a lot of avocados in bad quality)

• This indicates a high over-usage of avocados or a high number of avocados wasted.

To summarize, their handling of this product has been poor. Combined they have more than 90 avocados they have either wasted or over-used. Since only 4pcs has been registered on the Waste feature for the week (which is not a lot for a week) possibly also the type in culture is the reason why there is an over-usage.

Analyzing this indicates one of the key reasons for a high food cost (waste total).

Banana

• 0 pcs Waste – Analyzing this, it looks perfect as they have no registered waste on this product for the week.

• Although comparing the Used Amount to Ideal Usage they have used fewer bananas than they should.

• Difference – 5,4 pcs

To summarize they have an under-usage of bananas. This could be because they haven’t followed the prep and product manual or they have made a counting or delivery mistake.

The Store Usage (SU) report is a key tool where you can analyze your usage, identify products that you might need to receive more or less of, where the quality might not have been good enough and where the prep or product manuals are not being followed. At the same time, you are able to identify counting mistakes or incorrect delivery handling as well.

Reporting Build Up

Once you have analyzed your waste reports, it’s crucial that you then provide your team with a report that clearly summarizes the focus points for the week. It doesn’t matter how you send them the report (email, Facebook, etc..) as long as they receive and read it. Many aspects of your stores’ GMare a team effort. You handle all ‘back end’ as shown in the GM Snake but your team is key to constantly improve and make sure your numbers are solid. If you don’t engage your Juicers with your store numbers they won’t play a part in improving them. It’s important to engage and motivate your team!

The reports you send to your team are a chance to analyze and give constructive feedback.

Examples:

Over usage of 30 pieces of bread à Has a new Juicer been on training and burnt a lot of bread?

Over usage of 30 L whole milk à Are your Juicers trained up in measure on milk?

Over usage of 10 kg. Tuna à Which tuna spoon is used? Are the product and prep manuals being followed?

When making a good report there are some key points to follow:

• Be realistic with your goals
• Be positive and give credit to your team when deserved
• Make sure they understand your reports
• Choose some key points to improve each week
• Give constructive feedback
• Analyze the numbers for the Example of a good report:

Hi boys,

GM & STORE USAGE

We managed to raise the GM from 81,4 —> 83,3. Really good job here guys!
A reason for this could be our focus on IMS on sandwich and our sandwich cost went from 10,5 —> 9,7, which is close to the ideal.
We still have an over usage of tuna on 3.2 kg., almost one bag, which means we need to focus on adding the correct amount of tuna, 2 scoops, and follow the prep manual on tuna.

Our avocado usage went from 595 —> 84 which obviously was one more reason for our improved sandwich cost. Last week we used way to many avocados but this week the usage is almost spot on.

Apple usage has been improved from 699 —> 500 which is really good progress. Some of the delivered apples are not as juicy as normal and therefore, it is even more important to clean the centrifuge after every juice. Measure on juice is crucial this week as well.

Milkshake usage has decreased as well from 263 —> 224. Good job once again. We have started to hit measure and control the amount of ice used.

TYPE IN CULTURE

Huge progress on this.

Waste total 429 —> 122 DKK, much better FIFO structure and we have improved our Type In on the Waste feature.

Waste % 3,4 —> 1,3 we waste less than we have done before. Our delivery is probably more suitable for our needs as well.

All in all really good progress this week. Keep up the good job!

Report Feedback

• All information regarding the store’s key numbers is included within the team report.
• The report explains why they have improved and the team are acknowledged for the good results.
• Numbers have been analyzed.
• Focus points have been set.

Hi guys!

Weekly update!

Index: 110
Productivity: 16,6
GM: 82,4
Loyalty: 41,520

GM

We didn’t reach our goal which was 83 procent but despite that our GM is okay. Our apple usage was to high and we wasted a lot of bread, fruit, cups and whole products. Even though we have been busy we need to keep focusing on our waste.

Next weeks GM goal: 83

Report Feedback

• No acknowledgment (They need acknowledgment for hitting GM 82,4)
• No motivational feedback
• No analyzing
• No constructive feedback
• GM goal is set too high

Module 3.0 – GM & Waste Backend

Communication with Purchasing Manager

Communication with your Purchasing Manager is what we refer to as the ‘backend’. The ‘backend’ is highly important, as you need to have good communication with your Purchasing Manager to maintain consistent numbers and improve on them. The Purchasing Manager is responsible for the GM & Waste for all stores in the market. They handle all contact with suppliers, implement new structures to improve numbers, and make sure all stock handling tasks are being performed.

As mentioned previously the Purchasing Manager adjusts your stock levels on a weekly basis, especially when there are changes in turnover due to the different periods of the year. The Purchasing Manager’s main responsibility is to develop the Bar Manager’s & Shift Manager’s understanding and skillset with GM & Waste Control by having strong communication with all BMs / SMs.

The communication between you and the Purchasing Manager involves every step on the GMLadder:

STEP 1 (GM & WASTE KNOWLEDGE)

• Give all management knowledge through workshops and visiting stores.
• Analyzing individual numbers then explaining to the management how to improve and work with these numbers.

STEP 2 (ANALYZING & REPORTING)

• Providing you with Weekly / Monthly reports.
• Highlighting focus points in all reports.

STEP 3 (GM & WASTE BACKEND)

• Communicate Deliveries
• Communicate Stock Levels
• Communicate Counting

STEP 4 (GM & WASTE EXECUTION)

• Provide you with focus points to execute in the bar.
• Communicate Stock as part of the execution.

Communication with your Purchasing Manager is crucial for you to create consistency, develop your knowledge, and improve your numbers. GM & Waste is an ongoing process where you can always optimize and improve. You need to be strong in your communication regarding the backend processes because the Purchasing Manager relies on your feedback and suggestions. It’s a team effort and the stronger the communication, the better the outcome will be.

3.1 Workplanner Knowledge

Workplanner is our internal database, which we use to control most of the administrative work for our entire operation.

3.2 Workplanner – Counting & Deliveries

One of your most important administrative tasks is counting and deliveries. To perform these, you need to access Workplanner with your personal login. Once you have chosen ‘Country’, go to ‘Store Tasks’ located as the 3rd option in the menu bar on your left.

All bars within your country will be shown on the left side of your screen. Choose your bar.

In here you find ‘Counting’ for all stock combined, then ‘Ordering’ and ‘Delivery’ for each supplier.

Blue colour indicates the task has not been performed while Green colour indicates the task has been performed.

Although your counting task must be performed on a Sunday, the task is scheduled on a Monday. So, you need to access this from the following Monday (meaning the day after). This is so the system can collect all inventory data for an entire week (from Monday to Monday). Therefore, you need to go to the next week by pressing the ‘right arrow’.

3.3 Employee Meals

All Employee Meals are registered on your Juicer ID. For you to follow up on your Juicers’ ‘Type-In’ of Employee Meals and to make sure they keep to their EMP Meals allowance, you can access their individual Employee Meals on WorkPlanner.

Choose ‘Employee Meals’ which you find under Export/Reports in the left menu bar. By typing in Juicer ID or Juicer name under ‘Choose Employee’ you can find individual reports on Employee Meals. Both as ‘Statistics’ and ‘Transactions’.

This helps you to monitor Employee Meals, check the correct products are being registered and make sure all Juicers are consuming within their allowed limits.

3.4 POS Report

In POS Report, you can see all items sold on a given day, week, month or year. POS Report is a good tool to get an overview of which items you sell and can be used as a tool to get an overview of how much you need delivered.

Looking at sandwich sales, they have sold 589 in a week. If you look through several weeks and sell around the same amount each week, you can use it to calculate how many boxes of bread you need.

1 box of bread contains 60 pieces of bread.

If you want enough bread for a week you can order:

10 x Sandwich (box) = 600 breads.

This way you can always make an accurate estimate of how much you need. Just make sure you have a ‘buffer’ so you never run out of stock.

Choose ‘POS Report’ which you find under Export/Reports in the left menu bar.

‘Select Period’, ‘Choose Country & Stores’ and ‘select Weekdays’. If you want to look at an entire week of sales, select Monday to Sunday.

Once all information is entered, press ‘Show’ at the bottom and then select your country in the top menu bar to see data.

It shows statistics for ‘All Stores’, if you added more than one store, so you can compare to the average and it shows a detailed breakdown of each individual store underneath.

3.5 Contact to GM Manager

Communication is key! It is therefore important to learn how to effectively contact the GM Manager when dealing with deliveries.

Turnover (TO) vs. Buy-in

Why is it important to look through your order before it is sent and ideals?

The Bar Manager has the best overview and understanding of his/her bar. It is therefore the BM’s job, together with the rest of the team, to know how the flow of stock should be in relation to their store’s turnover.

1) Ideally, the Buy-In (Purchasing goods from suppliers) should follow the turnover.

2) If, however, the week has turned out to be slower than expected, or the BM beforehand knows that that turnover will drop due to external reasons (such as the musical festival in Australia, causing no people to be around the Barangaroo area) it will look like this (Drop in turnover).

3) If the BM (or the team) do not act and take responsibility for updating the required stock levels for the store, this will lead to a situation where the Buy In will remain unchanged and therefore higher than the turnover. This could potentially lead to an overflow of stock, decrease in GM & increase Waste.

Changes in ordering
As explained in the TO vs. BUY IN Model, it is very important to keep a constant overview of the flow of stock in a bar and become comfortable with changing the ordering and ideals for the bar. It is expected that the BM communicates with the GM manager about the order within the deadlines set for each respective market. Deliveries can vary in different markets, but it is important to understand that it is always possible to control the flow of stock despite only having one delivery a week or if the orders are sent three days before delivery.

Example
In Denmark, the deadline for a change in order is 09.00 AM the day before the delivery. This is an example of a great mail sent by a Bar Manager:

Hey Tim

Last week was a little slow. Can you please make the following changes for my next delivery:

Elderflower: delete
Whole milk: 5 pcs. instead of 7 pcs.
Avocado: I box instead of 2
Bananas: delete – Can you lower the ideal down to 3 packages
Basil: delete Dild: delete
Pineapple: I instead of 2 Spring
onion: delete
Kiwi: 0 instead of one I box. Is it possible to receive this in breakage?
Tomatoes: delete Apples: 3 instead of 5
Vanilla milk: delete
Strawberries: I instead of 2. Please also lower the ideal with one box.

Thank you!

Module 4 – GM & Waste Execution

Successful GM & Waste Execution is all about involving your Juicers with the numbers, showing the team how your bar is progressing and furthermore constantly developing your team’s skills and understanding.

4.1 Structures

It all starts with your ability to set up FIFO structures in your stockroom and bar. More importantly, the task is to make it obvious for your team which products to use first. In addition, an organized stockroom and bar is important for maintaining a solid performance in your count because you know where everything is.

4.2 Product Manual

You need to provide your team with a product manual test and explain why it is important. As mentioned in Module 1, the product manual ensures our products taste the same no matter which JOE & THE JUICE store they visit, which is crucial for our brand. At the same time, it is the foundation for how to hit our GM goals which means any Juicers who does not follow it will affect the GM.

4.3 Breakage

As you can see from the previous example, where the Bar Manager asks for a change in delivery, the BM can also request products in ‘breakage’ which is receiving products in smaller amounts. This will likely vary from market to market but it is worth investigating with your GM Manager. This option is ideal for bars with lower turnover. Why receive a 10kg bag of beetroot, if you only use 2kg a week on average?

Receiving products such as kiwi, passionfruit, grape, ginger, kale, beetroot, spinach, etc… in breakage could potentially benefit the following:

• Improve the structure in the coolers by using plastic canteens to store the above items.
• Decrease waste further because the BM is able to, precisely to the smallest detail, change the order in relation to the exact weekly usage.
• Avoid counting mistakes because there are fewer products to count.
• This can also lead to coolers looking like these:

This could lead to ideal coolers like these:

This is a great structure with the use of plastic canteens. Notice how, with additional storage space, even the basil can be placed vertically so this very delicate product doesn’t become squashed and go bad. Bananas are also in canteens so that they cannot get black from cold surfaces in the cooler.

Example of bad structure:

This cooler is from a Sunday night, two days before delivery in a low turnover bar. When the structure looks like this, it must ring a bell for the BM that the ideals are way too high.

– Meat and vegetable is mixed
– Way too much mozzarella
– Bananas on different shelves

No clear structure
This can lead to waste but also a much longer counting time and potential mistakes. If the bananas were hidden away on the bottom shelf then potentially missed when counting, it will be reported as waste.

4.4 Juicer Assessments

Improved numbers are established when you are constantly following up on your Juicers’ performance. ‘Juicer Assessments’ are an effective tool to monitor your team and identify Juicers in need of further training.

Please, find the newest Juicer Assessments in JQ-level 1-3.

It’s an easy tool for you to use but it’s important that your Juicers are unaware when assessing, to be sure to gather reliable focus points for every Juicer.

4.5 BTC use of Reports

When analyzing both Store Usage (SU) and Weekly Store Performance (WSP) it’s important to set focus points. If you have several areas which all need improvement, it will be difficult to work on all of them at the same time. Therefore, you need to identify which areas need the most focus first. Set realistic focus points for you to work on. Quality rather than quantity! – You will most likely gain the best results by focusing on fewer items where you have a high over-usage or to focus on items that are the most expensive as this will have the biggest impact on your GM.

Instead of trying to fix everything at the same time or setting completely different weekly focus points for the team, by setting fewer focus points each week you will build more solid and stable improvements that will last.

4.6 Competitions

Most Juicers in JOE & THE JUICE are competitive. This can be an advantage for you to motivate your team by making a competition. The Purchasing Manager is often making competitions between all bars and this is a good time for you to push your team! You can choose to do a competition in your bar by making a reward if you hit certain numbers within a certain timeframe.

4.7 Sessions

From time to time your Purchasing Manager or Regional Manager will arrange team sessions with different focus points. Team sessions are an effective tool to implement new structures or going into more advanced material. Remember you don’t have to be a Purchasing Manager or Regional Manager to host a session, you can arrange for your team as well. Sessions are furthermore a good way to spot new talent within your team as you can sense who is really into these sessions. Spot these Juicers and develop them!

4.8 Pipeline

Your overall responsibility, as GM & Waste responsible, is to develop a healthy pipeline throughout your entire team. It’s important to understand that the more focus you have on developing their understanding of GM & Waste and how to improve it, the more likely it is your numbers will improve. You need to identify the talents within your team. Develop your talents with the purpose of them taking over your role as a GM & Waste responsible. As mentioned earlier it takes a team effort to improve numbers. The more you involve your team, the better!

The overall goal is to have an entire team of GM & Waste responsible Juicers.

4.9 Weekly Waste Control

This is an overview of how each Module is performed in a store on a weekly basis;

As it shows there is focus on Module 1 doing the count and delivery Monday and Tuesday.

Module 2 is analyzing and sending out a report for your team with focus points for the week.

Module 3 is actually an ongoing process throughout the entire week with focus on the ordering, the reports you are provided and communicating stock levels.

Module 4 is the decisive work for improvement while being BTC with your team. As you can see in the weekly overview, GM & Waste is an ongoing process every day. You need focus on this the entire week – week by week to improve your numbers.

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