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New Research Says Teamwork Increases Profit in the Service Industry

  • 1.  New Research Says Teamwork Increases Profit in the Service Industry

    Posted 08-22-2019 11:03

    INFORMS journal Management Science New Study Key Takeaways:

    • To maximize restaurant sales, managers should mix waiters with different ability levels during the same shift.
    • Mixing waiters of various ability levels in the same shift is associated with 2.5% improved financial performance.

    CATONSVILLE, MD, August 22, 2019 – New research shows that as the service sector continues to struggle with how to manage and minimize low labor productivity that hinders profits, the key may be in one word -- "teamwork" -- according to a new study in the INFORMS journal Management Science after studying firms in the restaurant industry. Researchers believe, however, that the findings can be generalized among the service sector to include hotel and retail services.

    At a high level, the research found that effective teams tend to promote knowledge sharing, repeated collaborations and creativity.

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    Ashley Smith
    INFORMS
    Catonsville MD
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