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Kitchen Nightmares with Carm Capriotto [E106] - Diagnosing the Aftermarket A to Z


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Drawing an unexpected parallel between the automotive and food industry, it comes down to maintaining quality and ensuring customer satisfaction. Tune in or watch as a video podcast on YouTube, as Matt Fanslow and Carm Capriotto compare the struggles of a restaurant owner and a shop owner as they watch 'Kitchen Nightmares 2023 Season 1 Episode 2.'

Show Notes

  • Watching "Kitchen Nightmares" (00:02:06) Discussion about watching the show "Kitchen Nightmares 2023 Season 1 Episode 2 with Gordon Ramsey" and the parallels between the food industry and the repair profession.
  • The owner's emotional struggle (00:05:04) Analysis of the owner's emotional struggle and the importance of using emotions to make necessary changes in the business.
  • The importance of focusing on the fundamentals (00:07:31) 
  • The customer's perspective and the importance of quality (00:09:00) How the customer's perspective and experience are crucial in determining the success of a business. T
  • The need for effective communication and leadership (00:10:42) The importance of effective communication and leadership within a business.
  • The technician shortage (00:14:44) Discussion on the difficulty of finding good technicians and the impact of a toxic work environment.
  • The importance of customer satisfaction (00:17:10) Drawing parallels between the restaurant industry and the automotive industry in terms of the impact of negative customer experiences.
  • The poor attention to detail and lack of caring (00:22:10) The issue of using cheap and low-quality parts in the automotive industry, leading to potential problems and customer dissatisfaction.
  • The struggle with pricing and gross profit (00:22:52)
  • The importance of systems and processes in running a successful business (00:25:54) 
  • The challenges of running a business (00:29:26) Discussion about the assumption that business owners are always successful and the high failure rate of businesses in the first few years.
  • The importance of attention to detail (00:29:52) Exploration of the need for business owners to pay attention to every aspect of their business, including delegated responsibilities like executive chef or service advisor.
  • The need for proper tools and communication (00:30:46) Highlighting the importance of providing the necessary tools and resources for employees to do their jobs effectively and the need for open communication between owners and employees.
  • The pressure of handling daily challenges (00:36:24) Discussion on the pressure that technicians face in handling daily challenges and how it affects their performance.
  • The impact of coaching and consulting in the food service business (00:38:28) Exploration of the growth of coaching, consulting, mentoring, and networking in the food service industry and how it helps businesses improve and succeed.

 

Thanks to our Partner, NAPA Autotech napaautotech.com

 

Email Matt: [email protected]

Diagnosing the Aftermarket A - Z YouTube Channel HERE

Aftermarket Radio Network: https://aftermarketradionetwork.com/

Click to go to the Podcast on Remarkable Results Radio

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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