Tamagoya is a bento shop where only 600 staff members prepare and deliver about 70,000 meals by 12:00 noon. What is the secret to earning 7 billion yen in annual sales with only a daily lunch of 450 yen per meal? About 70,000 meals a day with 185 one-box delivery boxes of our company, not wholesale to convenience stores or over-the-counter sales I am delivering. Since it was founded in the 1970s with about 50 meals a day, the results of "great management" are remarkable. It is a lunch box whose number is difficult to predict, and the surprisingly low disposal rate of 0.1% is also noticeable. What kind of magic can be used to make this possible? Moreover, although the delivery destinations are only a small part of the Kanto region, there are about 10,000 of them. It is not easy to develop and retain customers, and it is also necessary to devise the logistics to deliver.
The author, President Sugawara, is the second generation of Tamagoya. When I took over the company from the chairman, I had 20,000 meals a day. After that, it was extended to 70,000 meals, but the road was not flat. We have succeeded by thinking deeply and acting when something bad happens and making new ideas. The author's belief in management is hidden and hidden, centering on the utilization of human resources.
From the author's point of view, this book introduces the concept and know-how of Tamagoya's "great management". Not only the owners of many small businesses, but also those who have troubles at work will have much to learn. Please read it.
The main points of this book
If you have a successor that you have decided on, you should take over as soon as possible. This is because it is possible to follow up on various aspects and the transition to the new system will be carried out smoothly. Tamagoya took over the business when the chairman was 57 years old, when he was still energetic and growing his business.
The greatness of Tamagoya is reflected in the numbers. By noon, the number of bento boxes delivered is about 70,000, the cost rate is 53%, and the disposal rate is 0.1%.
People support the growth of Tamagoya. Rather than seeking talented people, which is generally said in the world, we are drawing out the potential of those people.
Tamagoya business succession
Reasons for early business succession
In order for SMEs to grow continuously, they must overcome business succession. At that time, it is important to consider all possibilities without deciding to pass on the business to the child from the beginning. Even my relatives do not stick to the eldest son and the eldest son.
If there is a successor who decides "I want this guy to take over", it is better to take over as soon as possible. If the top management takes over the business while it is healthy, it will be possible to follow up on various aspects and the transition to the new system will be smooth. You can reduce internal complaints and train the second generation. We will be able to firmly take over the live connections with our customers and business partners.
Tamagoya took over the business when the chairman was 57 years old, when he was still energetic and growing his business. The chairman said that he had announced that he would "leave it to his son from now on" when the author was decided to join the company.
Father's strategy wins
As a child, the author was called "the son of a bento shop" in Little League and was ashamed of his family business. In the first place, Little League was forced to join the club to learn team play as part of successor education.
After that, he continued to play baseball with the aim of becoming a professional in junior high school, high school, and university. But at one point, I had the opportunity to see professional practice up close. Recognized by the difference in level with professionals, the author gives up baseball and gets a job at a bank.
After working for a bank for four years, he changed jobs to a small marketing company. When I started working at a marketing company, Tamagoya started delivering lunch boxes for three employees. It was the first time he had eaten Tamagoya's bento. "It's hard to get this quality at this price, don't do it, my dad."-I finally understood the awesomeness of Tamagoya.
At the same time, issues have become apparent from the customer's point of view, such as the value of bento boxes changing depending on the response of the delivery person. I started to think that if I could get inside, I could make a better company, and gradually my feelings went to Tamagoya. The chairman's second-generation education and strategy, which did not say a word to succeed, were successful.
"Think the president is dead today."
The author joined Tamagoya as a managing director in 1997 when he was 27 years old. At the Tamagoya plenary session, he made a greeting and declared, "Please think that the president is dead today." He became vice president in 2002, the fifth year after joining the company, and president in 2004, but he was actually in charge of management from the time he joined the company.
When the author joined the company, the president and all of the main executives were in their late 50s to 60s. Just because he was related to the top, he couldn't follow the managing director in his twenties.
Whether or not a good relationship can be established with executives is an important issue regarding the success or failure of business succession. If you feel undivided, it may hinder your work. With that in mind, the author decided to drink and talk to each person individually.
It had been a month by the time I finished talking to all the employees. What I learned through interaction with employees was the size of the chairman's presence. I could understand how everyone longs for the chairman.
He explained to the executives the policy of the old and new. I will continue to do what I think is good because the chairman has come. However, at the same time, he also started a new attempt according to the times. He told me that he would like me to come in for the time being, without objecting to it.
Tamagoya's amazing numbers
Up to 70,000 meals a day
Tamagoya manufactures and provides up to about 70,000 meals a day. Since the capacity of Tokyo Dome is about 46,000, it is too many to eat even if it is distributed to overcrowded Tokyo Dome customers.
Orders are placed from about 5,000 contracted offices, and there are about 10,000 delivery points. Orders are received daily from 9 am to 10:30 am for an hour and a half and delivered by 12:00 noon.
Why can Tamagoya, which has about 600 employees, make a bento for 70,000 meals? The biggest reason is that there is only one type of bento. That way, you can make a lot, reduce the manufacturing cost, and use good materials to improve the quality of your lunch.
The factory starts operation at 2:00 every morning. About 10 staff members come to the office to check the ingredients and prepare the dishes. Full-scale operation is 4:00 am. About 50 staff members start cooking.
Another reason for making 70,000 meals is automation and efficiency improvement through mechanization. Thanks to mechanization, it has become possible to make 70,000 side dishes in less than three hours. For rice, use a rice cooker that can automatically cook rice from washing rice just by pressing a switch.
Serving side dishes is a manual process. The three serving lanes are arranged according to the skill level of the staff. So to speak, major league, minor league, rookie league. Major leaguers are mainly staff who have been serving for 20 to 30 years.
There are also ingenuity in logistics. Since it is late after the order is placed, the time is divided into long-distance cars, medium-distance cars, and short-distance cars, and long-distance cars depart around 8 o'clock before the order is placed. The shortfalls found after the order is confirmed will be adjusted by each delivery vehicle in contact with each other.
Cost rate 53%
The cost rate of Tamagoya's bento is 53%, which is quite high. Moreover, this cost is only for foodstuffs, and does not include container costs, distribution costs, labor costs, etc. According to the author, 40-42% of conscientious bento shops are normal, so you can see how great Tamagoya is.
This high cost rate is a manifestation of "Tamagoya's spirit" that it does not disappoint customers' expectations. It inherits the policy from the chairman's generation, "If you make a profit but you are taxed, give it back to your customers and employees."
At Tamagoya, the menu is not decided by giving priority to purchasing. The first thing to think about is a menu that pleases customers, and the second is purchasing. From the perspective of purchasing, it is possible to reduce costs by purchasing in large quantities, but I dare not do so. Based on the menu that customers are pleased with, we purchase the best ingredients not only from Japan but also from all over the world.
We are particularly particular about rice. Since rice is the basis of Japanese food, we are pursuing quality even if the profit margin drops. Therefore, when Tamagoya opens a business, the sales talk "Please compare the rice" is effective.
Disposal rate 0.1%
Japan's food waste is one of the highest in the world. Unsold lunch boxes are a serious environmental problem and should be avoided from a management perspective.
The average disposal rate of Tamagoya is 0.1%. The general loss rate of bento shops is said to be 3%, which is an amazing number.
So why can Tamagoya achieve a low disposal rate? The biggest reason is the expected number of lunch boxes for the next day, which is decided the day before. Tamagoya's bento containers are not disposable. The person in charge delivers and collects it. Therefore, when collecting containers, I casually hear information from the person in charge of each contract company, such as "There are many meetings tomorrow and many people remain in the company" and "There are big sales promotion events, so many employees go out". If you put it out, it can be reflected in the expected number of the next day.
On the day, make less than expected lunch boxes. Then, we will watch the situation until the final confirmation of the order, make additional arrangements and production of materials, and adjust to the confirmed number.
It is difficult to predict the number of orders, but the error is up to 600 meals. This is because Tamagoya employees should eat 600 meals. In addition, we are aiming to reduce the disposal rate by finding customers who will buy lunch boxes when they are left over and selling them at a discount after 1:00 pm.[Must read point!] Ignite the motivation of employees
Bring out the abilities and possibilities of "evil kid"
The biggest asset for a company is "people." This is the same for Tamagoya, and the source of its growth lies in people. The human resources hired by Tamagoya are not the "excellent" human resources that people generally call. You may fall out of school, chase your dreams, be frustrated somewhere, or be a former bancho or a runaway tribe. The reason for choosing such human resources is that we believe that those who are defeated by dreams or who are frustrated have energy. The chairman called such an employee "evil kid" with dearness. He has actively adopted evil kid and has blossomed his abilities and potential.
At Tamagoya, the delivery route changes many times a day, so you need to be smart and move. You must make the right decisions yourself, not as instructed. In such a situation, bad boys tend to be able to deal with it better.
Also, the bad boys have little experience of being praised, so we can do our best to make our customers happy. It's also a good thing for bad boys to often say to their boss, "I want to improve for more customers."
Evaluation is fair and impartial
A poor assessment can discourage employees. Therefore, at Tamagoya, the group leader of the delivery department and the person in charge of each department such as cooking and serving always check and evaluate the work of subordinates. A video monitor is installed to check the work of the cooking staff who come to work early in the morning.
A fair system moves people, not an equal system. A fair system is one that rewards those who contribute to the company. If the staff's work performance does not reach the level required here, the annual salary and hourly wage may be reduced.
Neither chain development nor listing
As a company grows, there may be occasions when it considers chain development and listing. However, Tamagoya is not considering listing or chain development now. Rather, he wants to please customers, value employees, and manage soundly. The goal is not to be a big company, but a company that is competitive and has a strong foothold.
Nowadays, it is no longer the time when people can order just because it is delicious. In the future, we must be able to explain and appeal why Tamagoya's bento is delicious and why it is safe and healthy. To do that, it is necessary to improve the skills of the staff.
In addition, it is necessary to clarify what the customer wants from daily relationships and questionnaire surveys. Some customers have already set up curry days and offered salad bars on a monthly basis. Some people want us to use disposable containers and sell them by hand. While not forgetting to consider the environment, we are considering the next development to meet the diversifying needs of our customers.
Recommendation of reading
In this book, it was shown that people are important in various situations as SMEs grow. What was particularly impressive was the adoption of "evil kid". We are hiring people who are not the best people in the world, but who are necessary for Tamagoya.
After hiring, we are creating a system to actively train juniors by evaluating the "leading ability" of employees. It can be said that it is the utilization of human resources that makes use of the author's experience in Little League and office workers. There are also ways to motivate employees, such as differentiating production lines and team systems for delivery.
Although it is "great management", if you break down the business, all of them are the methods that came out of steady efforts and improvements. Please read this book and use it as a reference for future management and human resource utilization.