What can hospitals learn from The Cheesecake Factory?  JAN 25 2013

From back in August, Atul Gawande visits a Cheesecake Factory and wonders if the combination of "quality control, cost control, and innovation" achieved by chain restaurants can offer lessons to hospitals and other health care organizations.

The company's target last year was at least 97.5-per-cent efficiency: the managers aimed at throwing away no more than 2.5 per cent of the groceries they bought, without running out. This seemed to me an absurd target. Achieving it would require knowing in advance almost exactly how many customers would be coming in and what they were going to want, then insuring that the cooks didn't spill or toss or waste anything. Yet this is precisely what the organization has learned to do. The chain-restaurant industry has produced a field of computer analytics known as "guest forecasting."

"We have forecasting models based on historical data-the trend of the past six weeks and also the trend of the previous year," Gordon told me. "The predictability of the business has become astounding." The company has even learned how to make adjustments for the weather or for scheduled events like playoff games that keep people at home.

A computer program known as Net Chef showed Luz that for this one restaurant food costs accounted for 28.73 per cent of expenses the previous week. It also showed exactly how many chicken breasts were ordered that week ($1,614 worth), the volume sold, the volume on hand, and how much of last week's order had been wasted (three dollars' worth). Chain production requires control, and they'd figured out how to achieve it on a mass scale.

As a doctor, I found such control alien-possibly from a hostile planet. We don't have patient forecasting in my office, push-button waste monitoring, or such stringent, hour-by-hour oversight of the work we do, and we don't want to. I asked Luz if he had ever thought about the contrast when he went to see a doctor. We were standing amid the bustle of the kitchen, and the look on his face shifted before he answered.

"I have," he said. His mother was seventy-eight. She had early Alzheimer's disease, and required a caretaker at home. Getting her adequate medical care was, he said, a constant battle.

This piece was on several best-of-the-year longreads lists and deservedly so. But the Factory's 3000-calorie plate of pasta will probably not help the state of American health care.

Read more posts on kottke.org about:
Atul Gawande   food   medicine   restaurants   The Cheesecake Factory

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