Doug Radkey

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Have Restaurants Forgotten The Fundamentals

Have Restaurants Forgotten The Fundamentals

Originally Posted on FoodableTV – By Doug Radkey 08/08/2018

With technology continuously advancing in the restaurant industry, it can be easy to get absorbed and caught up in the next big thing. Technology platforms can help you save time, financial resources, and improve ‘customer service’ levels, just to name a few.

But sometimes when you get so caught up in technology, you can forget some of the fundamentals that will never be replaced by technology, but still play a large role in the success of today’s restaurants.

The key is the right balance of technology that will assist you in meeting both short-term and long-term goals.

This article is not about how to not use technology (it’s a great asset,) but don’t let it fail you, your staff, or your customers. Let’s strip back the technology for a moment and remind ourselves as an owner, operator, manager, or front-line employee – some of the tactics that we must never forget or stop learning.

First Impressions

Curb appeal and first impressions must meet and exceed your guests’ expectations. When stripping back technology, restaurateurs must understand that first impressions are essentially a means of effective communication that positions a restaurant to develop positive customer emotions and “touch points.”

As always, one must thoroughly think about the consistent message and experience that’s intended to be delivered.

Key Performance Indicators

Technology provides an operator with a great amount of data, but restaurateurs still need to learn and understand this data and know how to use it to their advantage. Understanding key performance indicators such as staff turnover percentages, prime costs, percentage of repeat guests, and proper menu engineering statistics (to name a few) – are all essential to making the right business decisions that will eventually impact your bottom line.

Concept Characteristics

Outside of having the right location, the right concept, and the right chef or mixologist – a restaurant needs to inherit five key concept characteristics that technology cannot simply implement on its own.

Restaurateurs need to develop scalability, sustainability, profitability, and consistency – while providing a memorable experience. Finding a successful, individual approach for managing each of these characteristics is the key to success in any economic situation. All five of these characteristics are important and must work in unison to be successful.

The 3 Elements of Marketing

In terms of restaurant & bar marketing, it comes down to three things– driving awareness, increasing revenue per customer, and generating repeat business.

Technology can help execute marketing strategies, but operators still need to know their target market and their hyper-local competition to understand which strategies will drive the best return on investment.

An ‘old school’ approach to developing a marketing plan will still deliver success in today’s technology driven world.

Continuous Education

It doesn’t matter which role one plays in the restaurant, everyone must continue to learn. Owners, managers, and front-line staff should have the mindset and a personal development plan in place to continuously learn the industry.  It’s important to stay up to date with customer service strategies, product details (visiting suppliers), and how the supply chain works within the restaurant. In addition; reading books and listening to podcasts for example are a great learning tool everyone can take part in.

Customer Service

It’s no secret, we’re all witnessing a shift in how technology affects customer service and ordering sequences.

As the technology continues to evolve, restaurateurs must not forget that engaging guests on a personal level will always build on those positive customer emotions. These “touch points” are required to make not only a positive first impression, but a lasting memorable impression.

This is especially important if you’re considering adding third party delivery to your revenue & service mix. How will you protect your brand and enhance customer service after the food has left your venue and is in the hands of their delivery drivers?

Make sure there is a plan in place that engages customers on a personal level.

Focus on Systems

Having the correct systems in place will create consistency, develop operating capital, enhance team morale, and build business value– while also positioning a restaurant’s concept for future growth opportunities (being scalable & sustainable).

This includes proper communication between front-of-house and back-of-house, day-to-day checklists, quality control methods, and human resource management, among others.

Again, there is technology that can assist operators with their systems, but they can’t develop the process of implementing the right systems for specific concepts. That is up to you to know which ones are needed to maximize each moment of the day.

Collaboration

Lastly, a sense of community is a driving force in this industry. We can build online communities (social followings,) but the best way to develop a sense of community is through collaborating with local farms, breweries, chefs, charities, and even the competition. Understanding this fundamental strategy will amplify your messaging throughout the community, improve a restaurants perception, increase staff morale, and generate revenue opportunities– while developing a destination, not just a restaurant.

Sometimes it is nice to just step back and review the bigger picture and remind ourselves not only why we’re in the restaurant business, but to revisit the basic fundamentals for restaurant success.

Once that is truly understood and the proper ground work is in place, technology can be implemented to enhance and support operations to save time, financial resources, and improve those needed ‘customer service’ levels.

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The Ultimate Checklist for Restaurants

The Ultimate Opening Day Checklist for Restaurants

Originally Posted on Typsy – By Doug Radkey 08/06/2018

Before opening your doors to the public, there is an enormous and often overwhelming list of both tasks and strategic milestones to first complete.

This list traditionally starts 3-6 months (sometimes even more) prior to opening day. 

In this industry, there is never a ‘one-size fits all’ approach, but there are some general guidelines to follow, that any seasoned restaurateur will likely agree with, no matter if it’s a 3 month or 6 month project.

Your opening day checklist shouldn’t just be a piece of paper either, it is ideal to hold weekly meetings throughout the start-up phase and consider using an online project management dashboard to promote effective communication within your entire start-up team.

Let’s have a look at a generic restaurant opening-day checklist with the appropriate time-frames that should be shared with all members of your opening day team.

Design and Build

Even prior to signing your lease, you should have a grasp of who your design and construction or renovation team will be. Don’t waste your time afterwards sourcing and negotiating – the clock is now ticking.

For many independent operators, this is often 120-180 days away from your projected opening day. This is also where having your feasibility study, concept development plan, and business plan will help speed up the process, positioning you to make strategic – business driven decisions.

During this period you should expect the following:

  • Completed schematic designs (engineer and architect related drawings)
  • Submission of drawings to local municipality for approvals
  • The hiring of your project/construction manager or foreman
  • Receive quotes for exhaust hood systems and any other customized concept specifics that may need additional lead time outside of 2.5-3 months.

The project manager should then put in place what is known as a ‘gantt chart’ indicating construction or renovation milestones. From there, the construction of your restaurant dictates the remainder of the schedule for concept and operational specifics. You should work backwards from that projected completion date, often 90 days, and by ideally adding 2-3 weeks for potential delays.

3 – 4 Months Out:

  • Apply for liquor license – if required
  • Finalize graphic designs and other branding initiatives
  • Secure both web and social domains
  • Order bar and kitchen equipment – order earlier for customized equipment
  • Order furniture for restaurant (tables, chairs, umbrellas etc.)
  • Order any additional millwork related pieces for your concept – earlier for customized ones
  • Develop vision, mission, value, and culture statements for your concept
  • Develop staff positions, specified roles, job descriptions, and wage structures
  • Prepare your operational strategies (marketing plans, training programs, onboard packages, staff policies, operational templates/checklists etc.)
  • Decide and finalize choice of operational vendors; cleaners, pest control, grease trap cleaners, exhaust hood cleaners, security, telecommunications etc.

60 Days Out:

  • Install exterior signage and execute first portion of marketing plan including social media launch
  • Create start-up menu and prepare your food and beverage supply chain management
  • Setup payroll structure with bookkeeper and all staff paperwork filing processes
  • Interview and onboard any key management (chef and/or general manager)
  • Decide and order small-wares for both the kitchen and bar area
  • Decide and order staff uniforms with any logo artwork or embroidery
  • Decide and order point-of-sale systems in addition to any sound, video, and digital menu boards
  • Cost out menu and prepare both menu covers, design, and engineering strategies
  • Review current construction status and milestones – adjust remainder of schedule as needed
  • Install (and test) all kitchen & bar equipment and organize all ordered small-wares
  • Interview and onboard remainder of your team leading up to 30 days to opening

30 Days Out:

  • Install point-of-sale system and merchant services for both testing and training
  • Finalize recipe booklet & menu cards with photos for both kitchen and bar area
  • Setup line and employee stations; walk-through menu, steps required, and adjust
  • Begin 1-2 weeks of training for all new hires focusing on operations, equipment, and service sequence
  • Order and organize all food and beverage for training, soft openings, and opening day
  • Execute 30 day marketing and media launch strategies to begin second phase of building buzz
  • Create staff schedules for the next two weeks of soft openings plus first week of opening
  • Construction should be nearing completion minus final touch-ups and inspections
  • Setup a preventative maintenance program for all equipment and create emergency contact list

14 Days Out:

  • Host a photo/video shoot for food, beverage, and interior for marketing purposes.
  • Host first week of soft openings – using a strategic list of invite only guests
  • Make tweaks to operations and service sequence by observing timing, traffic flow, and guest emotions

7 Days Out:

  • Execute final portion of start-up marketing, media, and promotions plan.
  • Host second (and often final) week of soft openings – using a strategic list of invite only guests
  • Finalize tweaks to operations and service sequence by observing timing, traffic flow, and guest emotions

Opening Day:

D-day has arrived. Are you ready? By now all the previous groundwork you’ve done should mean that you’re prepared to open your doors to the public. Just a few more things before you celebrate:

  • Ensure venue, both interior and exterior, is impeccably clean with no signs of construction
  • By completing both training and a two week soft opening – your team should be confident and well prepared for the first round of guests
  • Be calm, you got this! 

As you can see, there is so much that goes into an opening and one should not attempt to go about it alone. Starting a restaurant, whether ‘from scratch’ or by over-taking an already built establishment (and re-branding), is incredibly challenging.

But by being prepared with the appropriate plans and checklists, you’ll be opening your restaurant with success! 

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Bar Design 101

Bar Design 101

By Doug Radkey – 07/26/2018

There is truly a science to the design and layout of a winning bar. Outside of implementing a timeless interior, a bar needs to consider many factors including but not limited to; efficiency, hyper-local competition, and overall guest experiences – within its design elements.

Completing a bars ‘concept plan’ should be one of the first steps any aspiring bar owner should take. A concept plan will outline vision, value, mission, and culture statements plus its initial architectural, entertainment, and menu development characteristics (wishlist).

Once you’ve defined your concept, you can begin adding more heart and soul to the design and overall guest experience strategies; the back-bone to a memorable bar. Every component of the bars interior design, entertainment plan, and menu development process should enhance the guests’ overall senses (also known as emotions).

Here are items you can work on for your vision, prior to delivering a presentation to any designer, consultant, and/or architect.

Energizing the Space

Consider ways to not only maximize the space, but energize the space. What experiences can you deliver? Use this time to consider adding space for sound engineering, live music and/or DJ’s, interactive games, mix of televisions, and the right mix of socializing and networking opportunities.

Social Space

In today’s market-space, it is imperative that all newly designed bars (and restaurants) take into account social media, guest photos, and guest videos. Keeping the energized space in mind, how can you add space with the right lighting for taking group photos (with your branding in the background) in addition to taking videos and photos of cocktails and/or food.

Bar-Back

The next focus needs to be on bar efficiency. Consider the size of establishment, guest capacity, and your point-of-sale requirements. Then add multiple bartender stations while choosing the correct equipment, bottle display, overhead glass racks (less breakage), and under-bar space plus the number of speed rails, ice stations, garnish stations, cutting boards, and sinks within a one pivot movement for each bartender. This will then determine the size of ‘bar’ required, which will assist in developing your budget (and beverage menu).

Kitchen Space

A winning bar will also have a memorable food program. Offering premium food and focused, high-quality beer, wine, & spirits is a recipe for maximum revenue potential in today’s market space. Ensure there is space for grills, flat-tops, deep fryers, burners, and a convection oven (or combi-oven) plus space for prep areas, freezers, and refrigeration to provide a quick (and profitable) food program.

Seating and Lighting

This will entirely depend on the chosen concept. Your choice of lighting and seating will determine length of stay, the amount of money a guest will spend, and how they will interact with guests in their party plus other guests at your bar. Every seat and light fixture must have a purpose. This is just as important as laying out the actual back-bar itself and should be discussed with designers, architects, and consultants.

Branding

Consistency through all design elements (interior, exterior, menus, website, social media, and other marketing collateral) is the final consideration piece. Look for ways to incorporate subtle additions of logo colors and branding throughout the venue. Where ever the guests will take the most pictures and videos, make sure there is a way that people will know they’re at your bar!

There are numerous other variables and details required, but starting with this will make you look like a pro when you meet with a designer by having a concept plan completed and a true vision of how you want your bar to be laid out. A professional designer should be able to then take your vision, tweak it to professional standards, and implement it into drawings that will ensure it meets local codes and your overall budget!

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Perfect Pitch to Investors

How to Deliver the Perfect Pitch to Investors

Originally Posted on Typsy – By Doug Radkey 07/13/2018

Sometimes, in order to reach our dreams, we need a little help. Starting (or growing) a scalable and sustainable restaurant or hospitality business is not cheap. Many aspiring restaurateurs need a business partner or investment group to help reach their financial targets.

Here’s what we know: The average start-up restaurant, (in US dollars) can range from $295,000 to $660,000+ depending on a variety of factors, including of course the size of establishment, whether it’s a ‘from-scratch’ project, and the choice of overall concept.

No matter how you look at it, that’s a lot of money.

So how can you get financial help? You can’t just walk up to someone and ask for $100,000 for example. You need to get out in both the financial and hospitality community and network to build up both solid and referable business relationships. You then need to prepare yourself and your concept for investors.

But how do you do that successfully for your hospitality business? Here’s how: 

Be Prepared 

Let’s hope you’ve completed a feasibility study, concept development plan, and business plan (hint: if you haven’t – get started, you won’t get far without these plans). Once those plans are finalized and tweaked, you want to begin preparing yourself for investors by ‘working backwards’ from your completed business plan.

Investors receive numerous proposals per month or year. They may not have the time to read through all of your plans, initially. You want to narrow it down to 10-12 impactful slides followed by 1-2 pages of your ‘executive summary’, and then a 60 second elevator-type pitch.

When crafting a proposal to investors, the return on their investment will always be their first and most critical concern, so keep that in mind. 

Perfect Your Pitch Decks 

Combining your three plans (feasibility + concept + business), what are the most important and impactful pieces of information that an investor would look for?

This is a great opportunity, within 10-12 slides, to include:

  • Your overall market size
  • Gaps in the market
  • Competitive advantages
  • Start-up costs
  • Architectural notes
  • Menu development
  • Key performance indicators 
  • Other financial highlights

Refine Your Executive Summary 

Now, take your pitch decks and narrow that key information down to 1-2 pages of the most important and impactful information. If you can’t capture their interest in your executive summary, you need to keep re-drafting it until it screams ‘WOW’.

Often times, this is the first document they will want to read, before getting into pitch decks or even your business plan. 

Know Your Elevator Pitch 

Sixty seconds. How can you grab the attention of an investor in one minute or less? Show your passion through the pitch while answering the three most critical questions the investor will want to hear, even before they ask you.

This is where you want to hit them with:

  • How they will make their money back
  • What problem or market gap you are filling
  • What your overall business concept is

Be Strategic

Investors want to know where their money is going, how it is going to be used, and how they’re going to get it back. Being strategic also means to expect the unexpected, and be prepared for it. You also want to identify your strengths, opportunities, and challenges. 

If you’ve completed your plans correctly, you should know your numbers. Be prepared to answer key financial questions (for example KPI’s) – which should all be backed
up with both facts and strategic (SMART) objectives.

Show them your benchmarks for:

  • Revenue per customer throughout different times of the day 
  • Break-even strategies
  • Detailed labor reports, inc. revenue per labor hour
  • Detailed food and beverage costs
  • Marketing and advertising budgets
  • Revenue per square foot
  • Revenue per available seat

Know Your Limits

Don’t be surprised that investors will have an interest in your business, (after all it is their money and reputation that’s on the line) so be prepared to answer some challenging questions: 

  1. Are you willing to negotiate any control of the restaurant to investors?
  2. When will the restaurant begin to turn a profit? What are the monthly cash-flow projections?
  3. What are the projected profits of the restaurant over the next 1-3 years; and is it realistic?
  4. What is your role in the project and who will be surrounding you for support?
  5. What are the chances the restaurant concept will fail? What is the exit strategy

Before you pitch your heart out, have a long, hard, think about these and know where you stand. It’s better that you know your boundaries rather than step into a deal that you’re not happy with. 

Leave an Impression

Lastly, be confident and memorable – show your passion, your level of experience, as well as your true understanding of your business concept. Utilize additional resources such as photos, drawings, videos, market research, testimonials, and even food or beverage samples to help enhance your presentation.

If you’re turned away by an investor (or bank), don’t let it get you down. Learn from the experience, make any adjustments from their feedback, and try again.

Asking for money isn’t easy – but being prepared, strategic, and memorable – will help you get closer to winning that next investor pitch.  

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Developing an Epic Patio

Developing an Epic Patio Program

By Doug Radkey – Summer 2018

Patio. Season. Two words nearly every Canadian seems to enjoy and two words nearly everyone looks forward to after a long cold winter, including that of local restaurant & bar owners.

If your property is lucky enough to have this additional space and seating, it’s critical to take advantage of this revenue generating opportunity.

But can having a patio be looked at as a double-edged sword? While it opens up more seats and potential revenue (during a time when many restaurateurs are seeking smaller foot prints), can a patio also cause labour, logistics, and other operational challenges?

The quick answer is absolutely!

With something as complex as a successful patio season however, there needs to be an action plan, first and foremost to combat those challenges. This is a plan that is developed prior to the nice weather arriving and a plan that is well organized with strategic goals and a series of risk assessments.

To execute a flawless patio program, it’s important to start planning as early as possible, preferably 2-3 months prior to the start of the warmer weather. Developing a program around your patio this early will allow your restaurant or bar to determine cash-flow needs, staffing requirements, inventory levels, marketing requirements, and any additional training requirements to ensure a smooth operating season.

As with any seasonal, strategic, or marketing related program, it’s crucial to use a SMART mindset towards your planning; one that is Specific, Measurable, Attainable, Realistic, and Timely.

Furthermore, the development of an action plan is a fantastic opportunity to utilize your staff to help brainstorm menu items, themes, and other special events to ensure your venue and patio becomes the desired destination that it deserves to be!

So how can owners, operators, and managers take advantage of this opportunity and maximize on its potential while limiting day-to-day challenges?

An epic patio program will highlight the following critical segments.

Labour Management

Let’s start with the biggest elephant in the room. Depending on the size of restaurant and patio, additional staff may be needed to handle the extra covers that are sitting outside.

The first question you need to honestly and realistically answer is, will your traffic increase or will it be merely the same traffic, just sitting outside versus inside?

 In summary, will you be putting in the continuous efforts to increase traffic?

This is where planning ahead really comes into play. This is where strategic goals, historic data, an the understanding of your target market & hyper-local competition, and where knowing if your intended marketing plan will position you to have either a distressed or profitable patio program.

With an hourly breakdown of foot traffic (historic and potential) and an understanding of your day-parts, you can begin to determine your staff requirements.

To be fair to yourself, your team, your new hires, and your guests, you need to ensure you leave yourself enough time for interviewing, talent selection, on-boarding, and training before the peak of patio season truly hits.

Culture Reset

As you’re reading this, you may be saying phrases such as ‘good luck finding more staff’ or ‘I can’t even keep the staff I have now, how am I going to staff an increase in traffic this summer”?

Fair statements if you lack the elements of culture. I think we’ve all heard by now that there is a “shortage of qualified hospitality staff”. If you’re experiencing this first hand and had those phrases or ones similar go through your mind – it may be time to hit the reset button on the culture within your venue.

An entire article could be written on this subject alone, but in summary – let’s just put a stop to the excuses right now. You can overcome these challenges with the right mindset towards culture and towards providing an emphasis on your core values, team experiences, a positive work environment, employee engagement, hiring practices, and providing above average pay scales.

It can be that easy – or that hard. It depends on you and your leadership team. The way out of this ‘shortage’ starts with you and your brand.

Labour Systems

Getting back to the fundamentals of a winning patio program, both ‘front-of-house’ and ‘back-of-house’ systems and teams need to be reviewed to ensure your operations are prepared. Customer service and speed in the kitchen (and bar) should not be hindered by the fact additional seating is now offered.

Plan ahead, create mock schedules, and see where there may be gaps to ensure the high standards of service inside is going to be matched with high standards of service outside.

How will this affect your labour costs? Are you going to be able to control this additional cost versus the potential revenue opportunity? What happens if the weather doesn’t cooperate one day and you’re over staffed? What is your contingency plan?

Restaurants today have the ability to cross-train and create more of a ‘one-house’ approach versus one with varied departments which positions a concept to maximize their personnel while hiring based on values versus experience.

This mindset towards actual ‘labour systems’ will ensure not only staffing your patio becomes ‘easier’, but staffing your restaurant throughout the entire year becomes much less of a ‘headache’ – something most will agree is the biggest year-over-year challenge within the industry.

Seating and Tables

To effectively control your labour, you need to equally review your seating arrangement and overall patio capacity.

Outside of making it enticing, inviting, and clean with new patio furniture, there are numerous ways you can step up your patio game. There should be more to it than just wiping down the tables, setting up the chairs, and sweeping the ground of the past winter.

Similar to that of seating strategies inside your venue, ideally you want to have a strategic setup of tables and chairs outside. Consider a restaurant revenue management (RRM) approach, which can be defined simply as selling the right seat to the right customer at the right price and for the right duration of time. A strategic setup includes understanding your target market, their ideal length of stay, and average party size in addition to overall space for comfort and traffic flow for both guests and staff.

Again, this additional seating must also align with production levels in the kitchen and bar. What would happen if you were at full capacity, both inside and outside? Have a plan in place and analyze your revenue per available seat-hour (RevPASH) to maximize each moment throughout the day.

You also want to analyze the steps taken for staff from the pass and/or bar to the patio section. Many patios are designed in a way that it is a distant walk for staff. How many steps does each staff member take to serve a guest? What is the cost of this distance over the course of a day, a week, or a season?

Are there ways to reduce this burden on your labour? The answer may be hiding in the way your patio is setup for a successful season.

Patio Driven Menus

The answer to efficient labour and revenue management as it relates to your patio program – may just lie within your menu. If you have the space, consider taking the grill outside (or any equipment you can) to launch an exciting new outdoor experience. This will push your restaurant to create unique outdoor menus, redefine your guest experience and stay a step ahead of your competition.

This will not only improve on the guest experience, but reduce wear & tear on your staff – improving ticket times, walking distance, and staff morale.

Take the Production Outside

Equipment today is extremely versatile. You can now put together mobile kitchens & bars that are cost effective and perfect for the patio – especially in a climate that sees a variety of weather patterns. With minimal square feet and utility requirements, you can now grill, fry, and/or bake a targeted food menu right on the patio.

The fun doesn’t stop there, mobile bars can ensure the drinks continue to flow on the patio and that the cocktail shaking is both seen and heard, keeping the energy level high every day of the season.

Work towards elevating your guests visual, auditory, olfactory (smell), and gustatory (taste) senses right on the patio.

Creative Menus

Don’t be discouraged if you don’t have the space for any bar or kitchen equipment outside. Create a seasonal menu that’s inspired by an outdoor patio, anyway.

Develop a menu plan with your entire bar and culinary team with your venues target market and concept kept close in mind (and reward them for that creativity).

As always, keep this specialized menu small and inviting to reduce inventory, prep time, waste and any other staff requirements. Be creative this year and start thinking outside the box.

Support Local

Your guests today are likely looking for new flavours and innovation, as well as creative summer-like takes on traditional menu items. There is no better way to stay ahead of this need than by utilizing and building stronger relationships with your local farmers market. Provide your team with the means to develop unique, limited-time offers with not only seasonal produce, but a variety of barbecue-related flavours.

Innovation shouldn’t stop with just the food; beverages need to be included into the mix, too. (It is hot out, after all). The “garden-to-glass” trend continues to grow and new, refreshing spirits are becoming readily available to develop flavourful drinks with unique vessels and memorable presentations.

Lastly, beer and cocktails with low-levels of alcohol should also be featured, plus creative mocktails and house-made spritzers should highlight one’s patio menu.

Temperature Control

Unfortunately, we can’t dictate the weather. Throughout the patio months you’re going to see rain, wind, storms and even days where it may feel ‘too hot’, or evenings where it may feel ‘too cool’ to be out on a patio.

Restaurants and bars should consider these weather elements by offering more than just an umbrella or patio heaters. Look for other solutions to shade your patio, block wind and prevent heavy rain from ruining a potentially profitable day or night on the patio.

These investments will pay off by continuing the positive cash flow even when mother-nature tries to disappoint you.

Pest Control

Now that you have your labour, revenue, production, menu, and weather patterns considered, take the time to meet with your pest control vendor and discuss your plans for outside. 

They can suggest safe bug repellents and means of keeping away other animals and critters like mice, squirrels, and even birds.

Sanitation is a critical component in any restaurant and the patio cannot be overlooked. Put a preventative action plan in place to deter any bugs or animals from potentially ruining a guest’s experience.

Noise Control

With outdoor seating, you’ll likely encounter noise issues that start beyond the boundaries of your patio, including vehicle traffic, construction and other neighbourhood noises.

To reduce this burden, consider noise reduction strategies such as walls, bushes or even your own sound strategy, like a catchy playlist through your sound engineering plan.

Music (whether live or through a playlist) can deliver the right, on-brand ambiance and attract your target demographic while increasing overall profits and drowning out other noise on the patio. No matter the concept, guests enjoy their food, drink, and company more when music is playing, which ultimately makes them stay longer and, of course, spend more of their hard earned dollars on your patio.

Driving Energy Levels

The warm weather typically attracts tourism and gets locals looking to re-explore their outside surroundings. The restaurants or bars that provide the right mix of marketing (online and offline) paired with energy are the ones that will attract a consistent level of guests throughout the patio season.

Look for ways to utilize live music, themed parties, and interactive games (inside or outside) on a daily or weekly basis throughout the patio months.

A fully pre-planned calendar of events will drive high level of positive energy while creating awareness, excitement and anticipation while developing repeat business opportunities.

Marketing Plan

Now it’s time to tie all of this together. Remember, if you build it they will not come.

An epic patio season could be destroyed if it’s not coupled with an epic marketing campaign.

It is vital to inform your guests of your patio and the plans you have for it throughout the season. Each week and month throughout the season should be properly planned for to ensure the said energy level, never cools down.

Create Buzz

To maximize your patio program or event’s reach, it’s best to use a three-tiered approach to creating buzz. Have a plan in place to promote your seasonal events including patio launch party, menu launch parties, live music, comedy night on the patio, and the many others you and your team come up with.

You’ll need to create buzz not only prior to the event, but during the event and also after the event.

Give guests (and potential guests) a means to engage with your brand. You’re also giving an opportunity for others to see what they may have missed out on, also known as FOMO (the fear of missing out) making them intrigued to not miss your next scheduled event!

Story-Telling

Venues must now make their story meaningful, personal, emotional, simple, and authentic. This story-telling should flow to your patio program as well.

Despite the word “story,” it isn’t even confined to the written word. Colours, decor, vendors, staff members, plating, and glassware — even the simplest visual segments within your brand and patio ‘messaging’ — can paint a picture worth a thousand words.

Within your marketing plan, ensure you’re capitalizing on this through all of your resources and media channels, including the use of social media.

Using Video

Story-telling and video elements are really required for any time of the year, but to promote your patio, your events, your limited-time offers and summer drink menu for example, there is no better way to amplify the message than through video.

Use this opportunity to showcase service staff planning an event, cooks building that signature summer burger, or bartenders pouring that refreshing beverage.

 Hint; this will also improve your culture!

Remember, with today’s smart phones, you no longer need to break-the-bank on video production!

Tap Social Circles

A successful patio program also relies heavily on the opportunity to reach out to sporting teams, bike clubs, and other outdoor enthusiasts. Can your venue host after-parties? Can your venue host a social-media-only party or tasting event?

Don’t be afraid to reach out and partner with other local businesses and organizations. Every campaign should have a social media and/or community-driven strategy behind it.

Three Visits

Each seasonal program and its associated campaigns should have the goal of guests returning at least three times. Understanding your target market, is it realistic to see a guest return three times per week, three time per month, or once per month over the course of your patio season?

Once you truly understand their lifestyle and spending habits, you can develop events and campaigns to drive patio drive loyalty and a personalized experience.

Quality Designs

When a venue gives itself the opportune time to plan, a sense of higher quality often comes with it.

Budget for and take the time to create high-quality designs for posters, ads, video and social media posts. This will speak volumes to potential guests while providing a perception of value to not only your new patio menus, but also your events and overall venue.

The patio season provides an opportunity to think outside the box, but don’t go overboard with menu changes and special events. Know your target market, know your concept, and know your financial budgets.

Develop a program that is simple but memorable, profitable, and effective, and without placing additional stress on your kitchen, bar, or service staff.

In summary, concentrate your patio program on presentation, energy levels, story-telling, and developing a personalized guest experience. Doing so will develop a sense of community and culture, setting your venue up for success, even as the weather (and often sales) begin to cool down come the next fall and winter season.

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Avoid the Dead Ends of Delivery

How Restaurants Can Avoid the Dead Ends of Delivery

Originally Posted on RestoBiz – By Doug Radkey 07/09/2018

I recently saw a screenshot from a consumer using a third party delivery application. After a delivery fee, a busy area fee (what?) and delivery fee taxes, a meal that was listed as $8.89 on the menu ended up costing them $30.36. Of that, the restaurant earned a mediocre $6.67 of that order. It’s not exactly a traditional breakdown of revenue, and restaurant operators are struggling to adapt to the ever-changing restaurant landscape.

Delivery has disrupted the restaurant industry more in the last five years than anything else. Digital ordering paired with the outsourcing of delivery has impacted restaurant traffic, revenue, profit and overall restaurant operations like no other piece of industry-wide technology.

The Here and Now

No longer just for the pizza or Chinese food segments, consumers can now dine at home or work with the same quality food found at their local fine dining restaurants. With consumers so accustomed to shopping online, it was no surprise to see non-traditional restaurants take advantage of the opportunity when it presented itself. But while the numerous positives seemed self-evident — a new revenue stream, more access to customers, more seats available for visiting customers — the negatives quickly became apparent as deliveries got underway across the world.

Third-party applications like UberEats, DoorDash and Foodora, represented on the backs of the small army of cars or bicycle couriers that sport the companies’ large, cubic bags, have largely made the delivery revolution possible. That revolution is far from free; restaurant operators can typically expect to give away 25 to 30 percent of the revenue generated by delivery to the third-party services that enable it, a cost that often ends up eroding the restaurateur’s bottom line.

By the Numbers

Restaurants typically spend an average of 30 to 35 percent in food costs, 25 to 30 percent in labour costs, 10 to 12 percent for leasing, plus minimal space for numerous other ancillary costs. At the end of the day, it leaves an average profit margin of approximately four percent. It’s already cut-throat, but with the added 25 to 30 percent for delivery, it’s simply brutal.

Consumers are driving the shift to third-party delivery, demanding convenience and high-quality, atypically-delivered food. Restaurant operators are in a bind: sign up for a third-party delivery service and relinquish a quarter to a third of their delivery-derived revenue, or miss the boat entirely. It’s not an easy decision.

Best Practices

It seems like most opt to take the plunge, which opens the door for a host of new issues. At one step of remove, restaurants’ relationships with their customers change. Operational headaches that are otherwise immediately addressed in the dining room are left in wonder. Even if a dish is perfectly cooked, it might be delivered cold, or outside the estimated timeframe, or jostled around until it falls apart. If it persists, it’s only a matter of time before it affects the restaurant’s reputation.

Dine-in traffic is reduced, as well. Restaurants risk demolishing their more profitable dine-in revenue by encouraging customers to stay at home and order. This is where the high-levels of profit from beverages, upselling and overall menu engineering strategies are lost. Restaurants must focus on the guest experience more so now than ever before, to draw in guests and encourage the guest to spend that noted $30.36 in-house.

In-House Delivery Solutions

Many immediately throw this idea out the window. The first thing you should do is consider an in-house delivery platform, with the use of a cost-effective digital ordering platform that is tied into your point-of-sale system.

Consider completing a cost comparison analysis based on your projected delivery orders while also considering insurance, staffing, and other startup delivery platform costs.

You may be surprised by the outcome. Numerous studies have suggested that in-house delivery platforms will operate at over 50 percent less than that of employing the services of a third party. If you’re willing to put in the effort to develop and execute a winning strategy, you will undoubtedly keep your brand messaging consistent while producing higher profit margins, controlling the delivery costs, keeping consumer data in-house, and maintaining your quality control efforts.

Going Third Party

While 25 to 30 percent is the norm, negotiation is still on the table, and it may be easier than you think. What could a reduction of 3 to 5 percent of commissions for example, mean to your bottom line over the course of a year? If, let’s say, UberEats isn’t willing to negotiate with you, then consider speaking to Foodora, or vice versa. Take control of the conversation.

Your delivery window is your control, as well. Limit it to off-peak hours of operations only, and encourage dine-in or pick-up only traffic through the use of effective experiences plus marketing and advertising during your peak-times to control kitchen operations, overall quality and, most importantly, your profit margins.

Similarly, it’s vital you limit what you deliver. Some items command a solid price point and still look good upon delivery, despite the bumps in the road. That elaborately prepared entree that your kitchen puts together with tweezers? Probably not so much. If a dish can barely survive the trip from the pass to a table intact, best not ask someone on a bike to rush it across town.

The Road Ahead

Delivery is only going to keep growing, and operators have the opportunity to take advantage of the new trend. But done haphazardly, they risk losing their hard-earned dollars, delivery by delivery.

Restaurateurs need to understand the risks and options available to them, and integrate the radically different profit margins into their day-to-day business.

Do your research and understand your brand, know your target market, and put the effort into analyzing the variety of options that are available to you.

The long-term viability of your restaurant may just depend on it.

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Building an Effective Beverage Program

7 Strategies for Building a More Effective Beverage Program

Originally Posted on FoodableTV – By Doug Radkey 06/14/2018

Every drop counts! Beverages arguably play a larger role in the industry today than they ever did before! 

You could try and make everyone happy by offering dozens of options at your restaurant, cafe, or bar, but we all know that’s likely not going to happen. An establishment needs to carefully consider their beverage menu, whether alcohol-focused or not, and offer one that is balanced, targeted, and one that fits their concept.

Many operators continue to face a challenge, however, when it comes to developing an effective beverage strategy. As with its food counter-part, consumers are more educated today about beer, cocktails, wine, coffees, sodas, and even a variety of waters. They understand retail prices and flavor profiles because they’ve become (or think they’ve become) a barista, mixologist, and/or wine & beer connoisseur at home. When they’re dining out or visiting a bar now, they crave something that’s ‘differentiated.’ 

How can restaurants, cafes, and bars take advantage of this segment and develop a memorable, consistent, and profitable beverage strategy that creates differentiation? Here are some tips to review when creating or re-engineering your next beverage menu. 

1. Day-Part Strategy. First, let’s look at your hours of operation and overall concept. Taking advantage of different day-parts is critical to maximizing each delicate moment of the day. Look at your mornings, lunch periods, afternoons, dinner hours, and late night day-parts. One segment that is taking off, for example, is the hybrid of ‘coffee by day – cocktails by night’. Both of these beverage categories now require a high level of skill, if executed properly (we’re not talking basic drip coffee here). Can your restaurant, bar, or even cafe, introduce a beverage strategy that targets specific time-frames of the entire day? 

2. Session Drinks. The drinking ‘culture’ associated with alcohol, in particular, has definitely changed over the past decade thanks to strict driving laws, the cost of ‘going out’, and the sophistication of consumers. Society today wants to maintain some measure of sobriety when they’re out in public. Therefore the days of ‘strong’ cocktails or binge drinking at the bar are diminishing. For your next menu, consider low-levels of alcohol in highly creative cocktail platforms in addition to flavourful beers that have less than 3% abv. In summary, a “session drink” is a beverage low in alcohol which can be consumed in ‘larger’ quantities without making someone excessively intoxicated. 

3. Beverage Science. What are the age brackets, income levels, and the number of men vs. women you’re targeting at your establishment? How long are your guests intending to stay? This all plays a part in their choice of beverage offerings. Still focusing on alcohol, let’s have a quick lesson. 

Alcohol is a depressant or a “sedative-hypnotic drug” because it depresses our central nervous system. Every organ in the human body can be affected by alcohol. In an average person, the liver breaks down roughly one standard drink of alcohol per hour. Excess alcohol then moves throughout the body making the body ‘impaired’. At low doses, however, alcohol can act as a simple stimulant, where people may feel happy, or become talkative. 

This mindset and thought processes have to be considered in the development of a beverage strategy, especially one involving alcohol. Consider the volume of alcohol, the sugar levels in the mixers (juices and soda), the potential pairings with food (yes, even if you’re a sports bar concept) and how it will affect your target customers during their stay. 

4. Perception of Value. Many restaurants & bars are still trying to ‘up-sell’ that extra ounce or two of spirits or upgrade to a glass of beer that’s larger than a traditional pint. Using the discussion points noted above, it may be wise to consider ‘down-selling’ to deliver that new perception of value. This is a reason why beer flights, for example, are effective (less beer, stronger profits, and visually impressive). All beverages must elevate the guests’ sense of smell, taste, and vision to create a positive emotion and perception of value. Consider this mindset first before trying to add that extra ounce of alcohol instead!

5. Reward Creativity. An effective beverage strategy, similar to that of food – also includes the development of limited time offers (LTO’s). Get your baristas and bartenders to create unique cocktails, iced teas, iced coffees, or craft sodas that are ‘Instagram Worthy’ – and then reward them for that creativity. This is also a great way to generate staff engagement, social media engagement, and to generate a new channel of potential revenue. 

6. Sustainability. When developing your next beverage menu, consider sustainability. Let’s think about it; there is a high use of energy within ice machines, refrigeration, and glass cleaning appliances. There is an enormous amount of waste in garnishes, straws, bottles, and napkins (to name a few). How can your establishment re-purpose ingredients, use more edible garnishes, conserve energy, and work with beverage suppliers to make a difference by reducing waste by 25-50% over the next six months within your venue? Make it a team challenge!

7. Price and Speed. Lastly, you want to keep your beverage menu compact and balanced with the right mix of high-quality choices and price points your target market will resonate with. You also want to ensure beverages are produced at a cost-effective speed. High-quality coffee, sodas, and cocktails, in particular, still need to be quick. How many of one specific drink can your team produce per hour? Anything over 60-90 seconds becomes a problem for venues and consumers. This comes down to production strategies and service training techniques. Make sure this is reviewed before going to print!

By now, you should see that the beverage category is a brand differentiator. When you ‘humanize’ that beverage experience, it takes it out of the realm of being a ‘commodity’. No matter your concept, there are strategic ways to maximize your beverage potential.

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Ready to Open a Second Location

5 Signs You’re Ready to Open a Second Location

Originally Posted on Typsy by Doug Radkey – 04/24/2018

Opening a second restaurant location is not as easy as many people may think. Just because “you’ve been there – done that” once doesn’t mean it’s going to be any easier the second time around. In fact, many restaurateurs find it more difficult than the first one.

A common first challenge is that many restaurants, even the most successful restaurants, are simply not ready or properly positioned for this type of expansion. There are numerous circumstances that need to be executed on first, many of which are often overlooked.

To take a restaurant from one location to two or three takes a variety of planning methods, in-depth market research, and the proper execution of a variety of systems. Sound familiar?

Let’s have a look at the indicators so you can ready yourself for growth and expansion!

1. You’re Mentally & Physically Prepared

By now you should know if you have the willingness to sacrifice in addition to the required systemized thinking, social skills, creativity, stress management, and passion to lead a restaurant to success. But that’s just one restaurant, now you’re considering multiplying all of that by two (or more).

Are you ready?

We know restaurant owners more often than not, wear too many hats, leading to upwards of 60 to 80+ hours of work per week. You have to truly ask yourself if you’re in the right mindset and have structured your personal life to endure this type of growth. This is where surrounding yourself with the right professionals (supporting cast) and/or considering a business partnership might be ideal for some – to reduce both risk and potential burnout with the opening of a second unit.


2. Your Previous Restaurant Isn’t Dependent on You 

How critical is your presence to the operations and day-to-day success of the restaurant? If it is highly dependent on you; what would happen if your time was shared at a secondary location? What often happens is an independent owner will spend more time at the new location, leaving the first location vulnerable.

That’s why it’s important to take the time to consider the right management team for multiple locations to ensure there is no collapse of the first location and a strong start for the second location.

This includes additional chefs, managers, and supervisors in addition to start-up specialists like consultants, designers, engineers, and architects that will save you time, money, and energy during this growth stage.


3. You Have Strong Systems and Processes in Place

Arguably one of the most important aspects in terms of growth is ensuring that each restaurant (current and the potential new one) has consistent systems in place. Duplication of the same winning formula is the key to early success.

Developing daily routines, service sequences, training programs, communication methods, hiring practices, and customer experience strategies to name a few – is absolutely critical.

It takes effort, honesty, training, reviews, and accountability by the entire team to ensure these basic systems work and are implemented on a daily basis. If you feel there is a gap in any of these systems, it needs to be addressed immediately before any second location is considered.


4. You’re Financially Ready 

Is the current restaurant highly profitable and maintaining the most important key performance indicators? Could there be any further financial improvement at the current location? Could it help financially carry the second location if needed for a period of time? If so – for how long and by how much?

Again, just because one restaurant is profitable, doesn’t mean the second unit will have immediate profitability. It takes a deep dive into the books to make a verifiable business decision to expand. Work with trusted and experienced accountants to fully understand the financial health of the current location and the viability of a second.


5. Your Restaurant is a Good Market Fit

Conducting a feasibility study for the second location is just as important as completing one for the first location.

Consider these factors: Where are you planning on developing this second location? How close will it be to the first location? Is the market large and strong enough to support a second location of the same brand? What has made the first location so successful? Will you need to scale or adjust the concept?

There are numerous market related questions that need to be addressed.

Outside of the company structure, choice of concept, financial viability, and overall market – growing restaurants need to consider supplier consistency and overall marketing plans for numerous outlets.



There are many positives to growing into multiple locations, but it should only be done when the time is truly right and when it is done for the right reasons. It’s important to not forget the fundamentals of restaurant operations; where consistency, the quality of food and beverage, customer service, and overall guest experience is paramount at each location.

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Developing Staff Engagement for Positive Guest Experiences

Developing Staff Engagement for Positive Guest Experiences

Previously Posted on RestoBiz by Doug Radkey 04/11/2018

Engaged and motivated employees are at the heart of positive restaurant experiences. Working at a restaurant or any hospitality-related business needs to be more than just another paycheck. Restaurant operators need to remember that money is not a motivator – it is a satisfier.

When employees are satisfied and engaged, everyone wins.

When restaurant staff members are effectively on-boarded, trained, and are emotionally happy in their environment (a venue where they get a sense of achievement, respect and wages), they are more often than not willing to share these positive moments with others, effectively becoming a brand ambassador – both inside and outside of the restaurant.

If restaurants hire for a mix of values and experience, versus experience alone, and create a systematic approach to hiring through proper job advertisements, interview processes, on-boarding, manuals and training, they will see an immediate difference in their culture and turnover costs.

This is why it’s important to remember that ‘values beat experience, when experience doesn’t work hard’.

Investing in employee engagement can give any new or seasoned restaurant a competitive edge. Let’s look at the steps needed to create effective staff engagement today:

On-Boarding Strategies

On-boarding is often overlooked within the restaurant industry, though it should be a priority! It’s an opportunity to introduce new hires to your expectations and culture, the first step in developing engagement. The days of throwing new hires into the fire on their first day of work needs to come to an end; no matter their level of experience. All staff should be given a series of welcoming packages, manuals and proper training specific to the brand. Lastly, on-boarding provides a clear chance to define what it means to be productive, promote compliance, and create the footprint for a memorable working experience.

Proper Communication

It is important to ensure the restaurant has a pre-shift meeting with all staff members on-duty. This will set the tone for the upcoming shift, whether in the kitchen or the front-of-house area. This is the time to ensure all staff clear their minds of ‘outside noise’ and are working towards a series of goals for the upcoming shift. Other communication methods that will increase engagement opportunities include hosting staff meal programs to discuss menu items, manager log-books (print or mobile friendly), and having other communication boards strategically placed throughout the restaurant.

Continuous Education

Consider starting a program that offers to help pay for culinary or other hospitality related education. Once a candidate passes their three month probation, discuss an opportunity for them to take their learning to another level. This could include online courses, in-class courses, or visiting suppliers such as breweries, wineries, or local farms to learn specific product information. Imagine the long-term benefits and staff engagement a program like this will do to a restaurant’s bottom line and overall guest satisfaction.

Flow of Creativity

When employees are empowered with the opportunity to be creative, great things happen. It is ideal to keep staff engaged in the food and beverage menu development process. It may be wise to create a program that promotes a new food and/or beverage item each month. If each staff member creates a new dish or cocktail; hold a contest to see which item(s) should be featured over the next thirty days. Then for each sale of that item over the next month, ensure the creative staff member receives a small commission from the sales. This immediately creates a new story, a level of engagement (online and in-store), and could help with future menu engineering strategies!

Staff Reviews

One of the many methods used to create culture and accountability, is that of performance evaluations. This type of evaluation is extremely helpful to track an employee’s step-by-step development and is highly beneficial; for both the employee and operator. Staff evaluations highlight areas the employee may be excelling at and areas that are in need of improvement. It also provides an opportunity to develop performance based rewards, which is an excellent way to reduce employee turnover costs and keep employees engaged in their day-to-day tasks.

Team Experiences

Outside of commission-based sales and continuous education opportunities, restaurant teams still seek other experiences. When is the last time the entire team went to a staff party or took part in a staff building exercise? Depending on concept and median age of employees, a restaurant operator has the opportunity to take their team min-golfing, laser-tag, paint-balling or out for a meal/drink elsewhere, one night per quarter, to name a few examples.

In summary, providing a consistently positive restaurant experience through staff engagement is what creates customer loyalty and long-term brand ambassadors. Once you have formulated this mindset, and designed these programs, it’s time to promote it. Get your staff to talk about it, get them to help in your recruitment efforts, create a story on your website and menu, showcase your staff everywhere possible (social media), and finally invest in their future for the sake of yours. It really can be that simple.

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Preparing for Wage Increases

Preparing Your Restaurant or Bar for Wage Increases

Originally Posted on FoodableTV – By Doug Radkey 03/09/2018

If you haven’t done so already, preparing your restaurant or bar for a regulated wage increase should be near the top of your to-do list, no matter your region. There has been plenty of government level discussions and a ‘movement’ if you will, defining a need to offer better living wages for citizens across North America (and abroad), with a focus on the hospitality industry.

The day is coming if it already hasn’t happened in your area.

Should your venue have already been offering what’s called a ‘living wage’? Arguably yes, but the market for years has demanded ‘good food for cheap’ (for the most part) which has dictated the need for restaurateurs in particular, to pay out the lowest wage possible to its hard-working staff.

However, the times are rapidly changing. And that’s not necessarily a bad thing.

Not surprisingly, however, many restaurateurs, potentially ones like yourself, have become concerned about the complications a dramatically large increase in their costs will have on their operations.

The biggest challenge most restaurant owners face when considering a large wage increase is how they’re going to adjust their concept and overall business models, sales, and marketing strategies to effectively respond to the increase.

Smaller independent restaurants are placed into a concerning financial position that could have dramatic implications. But, it doesn’t have to be so grim for small operators with a well-thought-out plan about what processes need to be in place.

1. Review of Concept

Restaurateurs are ultimately responsible for achieving long-term viability. The key elements to a successful concept are scalability, sustainability, profitability, consistency, and delivering memorable experiences.  To achieve this, one must weigh their overall value against their expenses.

The first step to preparing for a wage increase is to measure your value proposition. How can you add further value to your guests to ultimately increase your revenue? What are one to two ways you can increase value within each of the above five listed elements within your unique venue?

Create a SMART action plan to implement over the next 1-3 months.

2. Review of Systems

Successful restaurants are also built on systems. As an employer, these systems need to be reviewed on an ongoing basis. What FOH and BOH systems can be scaled, improved upon, or simply cut-out, to maximize efficiencies without diminishing guest experiences, profitability, sustainability, and consistency?

This is the time to review your restaurant’s service sequences, training programs, food & beverage preparation, line of equipment, food & beverage suppliers, menu development, communication systems, inventory management systems, use of technology, and many others.

A complete 360 degree assessment of your operations is the most ideal approach.

Doing so will position your venue to potentially reduce weekly hours while offering an improved competitive wage that will be more utilized to its maximum potential.

3. Utilize Available Data

Improving a restaurants staff scheduling process within itself is an easy way to control costs, positioning a restaurateur to maximize its sales per labor hour and other labor performance indicators. Restaurant labor costs are a prime expense that needs to be properly controlled to eventually turn a profit.

An increase in labor benchmarks means your other prime costs including food and rent costs, need to be reduced below what’s been known as ‘industry standards’. This means that your food costs should be between 25-30% (instead of 30-35%) while your rent should be 5-8% (instead of 10-12%).

Aligning these benchmarks to profitable levels will position your venue for a sustatainable future; even with a wage increase – there is nothing to stop a venue from obtaining what’s often referred to as an impossible 10-20% net-profit over a period of time.

Utilize data on labor, hourly sales, and the month-over-month operating results from your point-of-sale system, to forecast expenses (creating a revised budget) with an increase in your new minimum wage over the next twelve months.

Physically visualizing this data and its results will determine the route you will need to take to pivot and align the remainder of your cost categories.

4. Menu Engineering Strategies

Once your systems are deemed to be operating at their full potential, it may be time to review your menu engineering strategies. To assist in a wage increase, for example, it is ideal to consider adding ‘value added’ menu items, simplifying food preparation methods, and looking to eliminate any complex menu items.

Your last resort should be to increase menu prices. Look at all other aspects first, including size of menu, preparation time, prime food costs, the number of ingredients used, and the repurposing of those raw ingredients throughout the menu, where possible.

Looking for ways to reduce and control food & beverage costs (controlling – not cutting), while developing a menu your target audience wants & needs, may position your restaurant to have more available funds to use towards an increase in labor costs.

5. Review Promotional Plans

The math is simple, an increase in sales and margins will position a business to pay its staff higher wages. Often the problem doesn’t lie within traditional lunch and dinner hours. To fill seats during traditional non-peak hours, restaurateurs need to consider menus that target day-parts and added-value; while understanding their ideal customer profile.

The moment a restaurant stops marketing is the moment it starts failing. Once a restaurateur truly understands their locations slow periods and peak periods, in addition to the target market and guest spending habits, a strategic plan can be developed and executed to maximize each moment of each day; by ensuring your restaurant has a monthly and quarterly marketing and sales plan created.

In summary, once that moment is gone, you don’t get it back. Therefore, what could an extra $100 to $200 per day in sales during typical ‘slow periods,’ do for you and your new labor costs, in one full year?

6. Look After Your Employees

Employees are your number one asset. If we (most restaurants) weren’t already paying just a minimum wage to employees, this discussion wouldn’t be needed. It’s time restaurant owners look to take the initiative and implement a better living wage for their employees.

Build culture and value by developing sustainable hiring programs, consistent training systems, scalable pay grades, profitable working environments, and memorable customer experience strategies to develop a brand your entire community (customers and employees), will want to support over that of your competition.

It’s understandable that small independent restaurants are vulnerable to a minimum wage increase, but there are ways a restaurant can prepare itself for, and take the initiative on their own, to increase wages and pay their staff a more comfortable living wage.

Change starts now!

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