"Management Techniques of Saizeriya, Which Serves 200 Million Customers a Year, Taught by the Former President" (by Kazunari Horino, Discover 21)

Previously, Shinichi Kikuchi wrote a book review. I was finally able to read it.

Kikuchi's review is here. The Amazon link for the book is also in this article, so if you are interested, please buy it from here!

I didn't finish reading it in an hour, but it was a book I could breeze through!

I received a message from Kikuchi encouraging me to read it and write an article. Thank you for the recommendation!

*

This is a book that will definitely make you want to eat Milan-style Doria.

I used to be a pretty heavy user of Saizeriya, but a few years ago, the Saizeriya near my house closed down, and the closest one is now inside a large shopping mall.

But when I do go to eat there occasionally, I think, 'This is delicious,' as I munch away. And it's cheap!

This book contains the secrets to that deliciousness and affordability. It feels like it pushes the boundaries of what is acceptable for Saizeriya to disclose, and perhaps even crosses the line of what shouldn't be written. That's why it's interesting (laughs).

In terms of the story, roughly speaking, it is about a theoretical author who was headhunted from another company and joined the firm. He was told by the previous generation (Chairman Shogaki)—a genius type who ignored profits, or perhaps because of that, succeeded in expanding the company—'You're the president starting in April.' The author becomes president and incorporates management essence into the 'miracle company' created by his predecessor, improving its constitution while preserving its original strengths.

It is amazing that the predecessor could say, 'You can go ahead and bankrupt the company,' and that the author would accept the position. However, even such an author seems to have had a period where he sank into 'President Blue' at first. But the president realized that if he truly could bankrupt the store, and if he took responsibility for it and was the only one to leave the company, he would feel relieved. It is amazing that the author felt relieved by that, but it is also amazing that the predecessor chose his successor intuitively...

*

In terms of content, it describes where the management problems of Saizeriya were and how they were improved, detailing the process of fixing each problem one by one, which is very logical. By the time the author took office, Saizeriya was already a huge restaurant chain, so I think they were following the classic path of
cost leadership strategy.

It's written as if it's obvious, but putting it into practice is difficult, isn't it...

Reading this book reminded me of when I read 'Competitive Strategy as a Story' a long time ago and wrote a note about it.

I wrote that article over four years ago (laughs). It was the first note I ever wrote. My concept wasn't set at all yet (laughs).

* As an Amazon Associate, this article earns income from qualifying purchases.

What I vaguely remembered from this book were concept and critical core. When I reread the article, these two things were written there (laughs).

For Saizeriya, first of all, the concept is extremely precise. It's not just 'cheap and delicious'; what 'delicious' means to Saizeriya is clearly articulated. I thought that if this is solid, the answers to questions when you are lost in strategy will naturally emerge.

Another critical core. I believe the key point here is "
transforming partial irrationality into overall rationality." Because it is "partial irrationality," they adopt a strategy that is "
irrational at first glance." Since it is "irrational at first glance," competitors do not imitate it.

However, when you try to align the aforementioned concept with the story, you find that a "partially irrational" strategy can actually be consistent with the story. And the fact that by adopting a "partially irrational" strategy, they gain a competitive advantage, and as a result, end up in a situation where others cannot catch up, is what I think is interesting about the critical core.

In the first place, it is said that Saizeriya has no concept of "comparing themselves to competitors" at all. Or rather, they only look at their customers. Therefore, they seem to do things that no one else is doing and things that have no precedent without any hesitation.

Before considering "profitability," they start with "this is delicious, so try it." This mindset ignores profitability, so it could potentially bankrupt a company, and ordinary companies would not, or should not be able to, make such a choice.

However, Saizeriya unfolds a story of success where their "lack of everything"—not comparing themselves to others, having no intention of making a profit, and having no basis for their pricing—actually pays off.
Then, before you know it, they have gained a competitive advantage, others find it difficult to imitate them, and as a result, they are on a winning path. It is truly a competitive strategy as a story.

Even so, once Saizeriya gained a competitive advantage, many new challenges fell upon them. These challenges could not be overcome with the same "lack of everything" strategy as before.

This is where the author, who joined as an "outsider," introduced new improvements from a management perspective. The next strategy that could only be taken because it is Saizeriya. Since they still do not look at competitors, the story that competitors find it difficult to imitate them as a result continues even after that.
I even think that the previous president must have seen this picture from the very beginning. That to advance to the next chapter of this story, he should leave it to an "outsider" author. Thinking about it that way is a bit emotional (laughs). (Currently, it seems someone else is the president.)

For that reason, my impression was that it perfectly follows the essence of "Competitive Strategy as a Story." I'm glad I recorded it four years ago. That book was long, so I'm glad I don't have to read it again (laughs).

Strong companies are like a textbook for such stories, showing how to adopt a strategy that looks different from others at first glance, looks irrational at first glance, but actually leads to rationality as a whole. And perhaps the story even includes the fact that it makes you want to eat Milanese-style doria with wine. That's how it feels.

With that said, while returning to the basics in many ways, "make today the best day ever"