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March 9, 2018by krghospitality krghospitality No Comments

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!

February 21, 2018by krghospitality krghospitality No Comments

4 Ways to Prevent Restaurant Burnout

4 Ways to Prevent Restaurant Burnout
Originally Posted on FoodableTV by Doug Radkey 02/21/18

We know restaurant owners, chefs, and managers, more often than not, wear too many hats, leading to upwards of 60 to 80+ hours of work per week.

No matter how much improvement we’ve collectively made in recent times to keep operations manageable, flexible, and “fun,” there still seems to be the long hours, the working on holidays and weekends, and the minimal margins.

Let’s not forget about the labor restraints, the rising operating costs, and the demand of the overall market to deliver quality food, drink, and experiences; all at often the lowest price point possible.

It takes sacrifice and required systemized thinking, creativity, social skills, stress management, and a lot of passion to win in this industry — which leads to an enormous amount of personal pressure.

This job-related pressure and the extra hours at work will, no doubt, create higher than normal amounts of stress; leading to personal exhaustion, poor decision making, mental health issues, and sometimes even family related conflict.

If this sounds like you, you need to find a way to simply work smarter, not harder. If you currently have the mindset that by working more hours will result in more work being done, you are wrong and need to make a restaurant lifestyle change, today!

This mindset is, in fact, the starting point of what we call: burnout.

Burnout within the restaurant (and hospitality) industry is real and happens more frequently than it should. Preventing burnout and building a work-life balance for everyone—including owners, chefs, managers, and support staff— is, in fact, possible, contrary to popular belief.

Here’s how:

1. Hiring the Right Team

The first step is to build a team based on values, vision, mission, and culture. Creating and executing on these statements will build the foundation within your concept to create consistency, accountability, and room for growth.

The right team, however, is only as good as the training program installed at the venue.

A profitable training program will provide common elements such as the use of checklists, incentives, and easy to understand procedures. This will then, in turn, create a system of standards— one that reflects your vision, value, mission and culture statement— immediately positioning you as a leader, to properly delegate tasks and empower your team to achieve the required daily objectives (therefore making life easier for everyone).

2. Creating Operational Systems

The more any restaurant depends on the owner’s day-in and day-out involvement in the operational details of the establishment, the greater the risk of failure and burnout.

Starting and operating a successful restaurant also relies heavily on having the right systems in place, allowing the venue and its hired team to work as one cohesive unit.

Having the correct systems in place will create consistency, develop operating capital by reducing costs, enhance your team morale, and build business value while positioning your concept for future growth opportunities.

These systems include HR management, inventory management, communication systems, financial control systems, positional and shift related checklists, quality control systems, and more.

The benefits that you will quickly achieve through the implementation of these systems are much greater than what you will need to invest in setting them up.

3. Utilizing Available Resources

It is also important to stay on top of your game by continuously learning. There are multiple ways to accomplish this, such as working with industry mentors, attending trade shows, reading leadership and industry-driven books, and/or listening to podcasts (just to name a few).

Owners, managers, and yes, even front-line staff should have the mindset and a personal development plan in place, to continuously learn the industry. Continuously learning will reduce your daily involvement, improve on team experiences, and drive the results your restaurant needs.

Without diminishing restaurant fundamentals, is there also a way to implement technology within your restaurant, allowing you to work more efficiently? What are some cost-effective resources available to you and your team to enhance operational systems? It’s time to look for these investment opportunities.

4. Finding YOU Time

It is critical that you find yourself some ‘you time’. With the right team, systems, and resources in place, it is not only beneficial for you but for your entire team, as well. Look for ways to have a 30-minute workout in the morning, afternoon, or evening after work.

You also want to ensure you’re taking time off each week for yourself, your friends, and your family. Lastly, schedule a vacation, and take it.

No excuses!

Stop trying to do everything yourself. Learn to trust your team, delegate tasks based on their varied skill sets, and simply avoid burnout.

If you recognize any of the symptoms of burnout, it’s time to make a change in your restaurant’s lifestyle.

Find your balance and build a culture that places a premium on life. It may look like more ‘work’ up front, and there are many more solutions to suggest, but investing in a people-first mentality, will provide the results you need to begin leading a successful operation.

January 17, 2018by krghospitality krghospitality No Comments

Restaurant Service Training Techniques

Restaurant Service Training Techniques
Originally Posted on RestoBiz by Doug Radkey – 01/17/18

Throughout the restaurant industry, the phrase ‘it’s not my job’ can simply not exist. It is every employees job to provide memorable customer service; from management to the back-of-house employees, and of course through to the front-of-house team.

All employees must work as one cohesive unit to ensure an unforgettable guest experience. To execute this, a restaurant needs adequate service training programs. A winning program will reduce turnover (by over 10 per cent) and provide attentive service without ever being “noticed”.

As with much of a restaurants general operation, everything should coincide with an overall strategy plan. A training program also needs to follow the SMART acronym to be successful where every training element is Specific, Measurable, Attainable, Realistic and Timely.

This will create two key ingredients; consistency and confidence.

A profitable service training program should also provide common elements such as the use of checklists, incentives, and easy to understand procedures. This will then in-turn, create a system of standards; one that reflects your vision, value, mission and culture statements. Here’s how:

On-boarding

This first step provides an opportunity to first introduce new hires to the expectations and culture through the use of a well-designed welcoming package. This is the best time to engage these new employees on their roles to create a smooth transition that will define productivity, promote compliance, and create the footprint for a memorable working experience.

Sequence of Service

For each position, outline each and every step (in detail) using the SMART acronym. For example; “all guests must be properly welcomed within 30 seconds of entering the restaurant” or “drink orders at a table must be delivered within three minutes”. Walk each position through a step-by-step sequence of events that will lead the guest from entering the establishment to paying and exiting the establishment.

Instructing

This step is where all of the ‘How-To’ manuals will come in handy. Outside of the basics which include service etiquette, appearance, knowledge of menu, and knowledge of layout; staff should be instructed on opening and closing procedures, preventative maintenance, fire safety, food safety, cleaning schedules, and overall equipment training. This should be completed using a mix of videos and reading material.

Demonstrating

It’s important that the entire team is then properly coached. The next component of instructing, is demonstrating through hands-on instruction (coaching). Restaurant owners, managers, and shift supervisors should look to be trained themselves first and foremost, on how to properly coach a team to become stronger leaders. New hires will buy into the service training system if they’re also shown first hand, in confidence, each element of the ‘sequence of service’ and ‘instructional’ stage.

Role-playing

Now that the team has been shown all of the steps, it’s their turn to demonstrate that they themselves understood the instructions. Before sending new hires to actual guests, they should walk-through the sequence of service for their position, multiple times, with managers and other staff, acting as guests. This will provide a variety of scenarios and prepare them mentally for real guest situations, creating confidence in their position and a more positive guest experience.

Shadowing

This step should be completed in two elements. There should be an approach where the new hire shadows an experienced individual for one-to-two shifts followed by the experienced individual shadowing the new hire, for another one-to-two shifts. This process will ensure all standard operating procedures are being followed while allowing the opportunity to address any final questions or concerns.

Reviews

Now that the new hire has shown that they’re comfortable in their position and understand the standards, they should be confident enough to cook food, make drinks, welcome guests, and/or serve guests. They should then be reviewed after one month, three months, and then quarterly from there on out. As you can see, staff training is a process. The restaurant should also plan daily shift meetings, weekly team meetings, and quarterly all-staff meetings (at a minimum) to review standards, menu changes, and overall business objectives.

Secret Diners

For a minimal investment, a true secret diner program can become a profitable training and development platform for owners, operators, and managers. A secret diner also provides a different perspective: one that speaks from the eyes of a customer and not from the eyes of an owner, manager, employee, friend, or family member. After a secret diner visit (which is suggested to be once every month or at least every three months), a secret diner should leave a comprehensive report of the visit with a list of positives, negatives (what needs to improve), and a score for a variety of categories. This score (which should be shared with staff) can be used as a measurable tool while also implementing a high level of accountability; with an incentive goal to improve the score after each future visit.

Restaurateurs need to invest in educating their team while creating a systematic approach to service, which will create the consistency needed to win in this industry.

A winning program will bring an entire team together, creating a positive working environment where staff members would not even think of saying ‘it’s not my job’.

January 16, 2018by krghospitality krghospitality No Comments

Lowering Your Risk Before Opening a New Restaurant

Lowering Your Risk Before Opening a New Restaurant
Originally Posted on Typsy by Doug Radkey – 01/16/2018

Early recognition of risk is crucial for the success of any business, and arguably more so for restaurants. To ensure proper positioning and ongoing success, it’s vital for a restaurateur to understand the variety of operational, financial, legal, systematic, and people-related risks to not only opening a restaurant, but operating one too.

Identifying risks from the very early stages will position a restaurant to be disciplined and prepared for when things may ‘go wrong’ down the road. Identifying risks will also help streamline a restaurants’ processes while improving communication and implementing a variety of systematic control methods, something every restaurant needs for long-term success.

The opposite of risk, is opportunity, and that’s why focusing on with these seven tips will help you avoid pitfalls before opening your restaurant.

1. Assess Yourself First

First and foremost, the hospitality industry is not for everyone. It’s not what it’s made out to be on television and across some social media feeds. This industry is cut-throat; plain and simple. Take the time to look in the mirror and ask yourself about the required character traits.

You then want to ask yourself, and also write down detailed responses to:

Why you want to open a restaurant or bar
Why you think many restaurants fail within 18 months
What the difference is between success and survival
Explaining expectations of profit versus the lifestyle you want to live
Explaining how important growth is to you, both personally and in business.

Do you feel you have what it takes? This industry requires sacrifice, systemized thinking, social skills, creativity, stress management, and a lot of passion. The first opportunity in risk management – starts with you.

2. Plan Thoroughly

One word that cannot be stressed enough during the start-up phase is of course, planning. Sometimes, however, even with a high level of planning in place, things can unfortunately go sideways — and they can happen fast.

This is where having a strategic combination of feasibility studies, concept development plans, and business plans will be beneficial and provide you with an opportunity to set the tone early, for the upcoming project.

These plans will analyze and reduce the risk for many potential, common, and ‘unforeseen’ events during both start-up and operational stages.

3. Form a Strategic Team

You’re determined, positive, confident, adaptable, and crave learning experiences. Being an a restaurateur combines an enormous amount of passion and vision for creating food, drink, and experiences – and a drive to be undeterred by a high level of unprecedented risks.

But you shouldn’t go about it alone. Work with a team of supporters; including mentors, consultants, accountants, lawyers, designers, engineers, and chef/bar focused experts.

They will help minimize start-up and operational risks by creating efficient systems that will undoubtedly streamline your restaurant and both its start-up and ongoing processes. You will also be given the opportunity to learn a lot from these professionals in their respective fields which will assist you both short-term and long-term.

4. Do a Financial Check-Up

One of the many headaches aspiring restaurateurs face is the simple fact of running out of money before the restaurant even opens – a common, but detrimental risk.

A thorough set of plans reviewed by consultants, accountants, and designers – will prepare a restaurant for potentially hidden costs by measuring realistic financial scenarios. Ideally, there should be at least three months worth of operating capital set aside for opening day.

Aspiring restaurateurs should also analyze the potential for leasing equipment and other assets while comparing interest rates and exit strategies for each potential financial program they may apply to.

Restaurant owners should also ensure they have a credit check report and a statement of personal net worth, and to clear any outstanding debt with past creditors prior to starting a restaurant. Most importantly, set aside savings (ideally 6-12 months worth) for yourself and your family in case the restaurant is off to a slower start than originally predicted.

5. Complete All Business Paperwork

Make sure you receive the full list of permits that your local municipality requires for starting a restaurant or bar. Visit your city clerk office to receive the entire list, in writing, plus their associated fees and timeline for approval. Overlooking one or more of the required permits or licenses can result in a delayed opening and course, further additional costs.

These may include business registration forms, business licensing, building permits, zoning adjustments, occupancy certificates, ventilation, electrical and plumbing permits, outdoor signage permits, health and safety inspection certificates, liquor licenses, and others. Each municipality, province/state, and federal government will be different, so ensure you receive the correct information for your specific location.

A restaurant also needs to measure a variety of liability factors. Disaster can strike at any moment, therefore an aspiring restaurateur should ‘hire’ an insurance broker, to source the best general liability insurance, property insurance, off-premise insurance, liquor liability insurance, and workers compensation insurance to reduce risk, costs, and any personal liability.

6. Assess Your Restaurant’s Location

Choosing a location is an exciting component of starting a restaurant, but it comes with its own variety of risks. New restaurateurs often find out after a lease is signed that their property may not be fully compatible for a restaurant and will need further upgrades to meet standards for energy and ventilation, plus any revised building and/or health codes (to name a few).

This is where working with a commercial realtor, property inspector, engineer, and commercial lawyer will reduce any potential shortcomings while looking for specific leasehold concessions and exit clauses that will reduce your own risk, down the road, if the restaurant is unsuccessful.

7. Prepare Your Restaurant’s Operational Setup

When it comes to restaurants, bars, and cafes etc; the producers, manufacturers, delivery drivers, owners, managers, and servers ultimately share the responsibility to create a safe and enjoyable dining experience.

Transparency, traceability, and accountability in terms of food and beverage, must be a top concern when deciding on vendors to ensure all product entering your restaurant are not only safe for your customers, but for your community.

Knowing and understanding your concept will also assist in kitchen, bar, and storage requirements – reducing the risk for spoilage, theft, and accidents.

There is so much that goes into operational setup, but focusing on the above plus proper HR programs, staff training programs, allergen disclosures, secured networks, and overall venue related security, will create a safer environment for both your employees and customers; reducing a long list of risks and potential lawsuits.

Life happens, things go wrong, but being prepared is what will make you stand out from the others. It takes planning, effort, and an experienced support team to overcome the impact of an unfortunate event when opening your restaurant.

December 6, 2017by krghospitality krghospitality No Comments

Conducting Restaurant Staff Performance Reviews

Conducting Restaurant Staff Performance Reviews
Originally Posted on Typsy by Doug Radkey – 12/06/2017

It takes happy, engaged employees to create memorable guest experiences. To do this requires leadership, culture, and accountability. This in turn will develop a cycle of improved revenue, loyal customers, and a decrease in employee turnover.

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 the employee, restaurant owner, operator, or manager.

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.

The key ingredient however to a winning employee evaluation program is consistency. Be consistent in the timing of evaluations, your required standards, and with all employees (meaning do not single any one employee out from the others).

Asides from consistency, it’s ideal to also keep the following six tips and steps in mind when conducting staff performance reviews:

1. Create the Foundations Early

Make it known during the on-boarding process that all employees are subject to both regular and scheduled evaluations.

Design a complete staff performance plan by formulating accurate job descriptions, job expectations, standard operating procedures, on-boarding processes, pay scale development, training programs, and team building exercises.

These systems will create the foundations to work from, for future performance based evaluations.

2. Schedule Evaluations in Advance

When it comes time to complete an evaluation, the employee shouldn’t be surprised. It’s either part of the scheduled evaluations that they’ve been made aware of from the start, or you’ve had regular discussions with them, leading to a required off-schedule evaluation.

When you schedule an evaluation in advance, you can explain to them the entire process and provide them with a copy of the evaluation forms, so they’re equally prepared.

3. Encourage Self-Evaluation

This form of evaluation is often over-looked by many employers, though it is an extremely important aspect to the overall evaluation process. It is best practice to have employees fill out the exact same evaluation form to see how their personal observations may pair with your observation.

Finding out how they feel about their own performance will set the tone for the evaluation meeting. It will also open a brief discussion period about any obstacles they may be experiencing to achieve a stronger performance.

4. It’s Not All About Your Employees

Performance reviews should develop an opportunity to create ‘two-way’ communication. Don’t make it all about the employee. Use this time to ask if there is anything the restaurant can do to make their job or employment experience better for them and their team mates.

Make note of this discussion and see if there are any trends or consistencies among the answers from multiple employees so you as the owner, operator, or manager can take immediate action to improve.

5. Provide Balanced Feedback

The overall staff evaluation should look at the quality of their work, including their dependability, attendance record, customer service rating, team-based communication, openness to feedback, and how they’ve handled unique or stressful situations. It is ideal to score and rank each category out of 10, to provide a measurable goal for improvement.

You want to take this time to provide honest feedback with a solid direction to improve on the requirements of the hospitality driven business.

Discuss the previous period, but keep in mind that at least 50 percent of the performance evaluation should be spent on the future. When talking, use simple, direct language while comparing each issue to a note within your completed standard operating procedures. This is how effective leadership is then respected.

If there is a below average score, anticipate the possibility of a confrontation or negative reaction. However, as the leader, if you’re properly prepared for the evaluation, you can take a proactive measure by following every negative with a positive, to reduce this possibility and to keep the momentum of the meeting in check.

You want to spend more time on the positives to enhance the performance improvement plan.

6. Set-Up a Performance Improvement Plan

This is the opportunity to improve on performance, morale, motivation, personal development, and overall profitability. By using a series of ‘SMART’ goals (Specific, Measureable, Attainable, Realistic, Timely) an employer can create a system of reward and accountability.

Whether it was an excellent, average, or below average review, there should always be an improvement plan in place. It’s ideal to provide three SMART goals for each individual to work on between now and the next review or specified time for improvement. As the employer, is there any further support and/or resources they need from you to achieve these goals?

Write these goals on the performance review form, discuss any rewards/incentives, and ensure both parties sign it for optimum accountability.

Completing these reviews on a consistent basis will provide employers with the opportunity to develop happy, engaged employees.

November 30, 2017by krghospitality krghospitality No Comments

Preparing Restaurant for Solo Diners

Preparing Your Restaurant For Solo Diners
Originally Posted on FoodableTV by Doug Radkey – 11/30/17

The dining scene has surely changed over the years. One of the many noticeable differences is the acceptance of the “solo diner.” Single (or solo) diners are no longer strictly targeting the quick-service restaurant or getting take-out to fulfill their desire and need to eat.

Many of these individuals, which are no longer just business travelers, are now looking for unique dining experiences at casual or even fine dining style restaurants.

For years, many solo diners preferred ordering in because they felt awkward to eat alone at restaurants, while restaurateurs preferred to fill their tables with two or more guests. Eating out alone, however, can now be a memorable social experience and many restaurateurs are starting to take notice and adjust their operations accordingly.

From single demographics and business travelers to even married individuals who are simply looking for some ‘alone time,’ restaurants are provided with an opportunity to generate a niche driven revenue stream from this segment, if they’re properly prepared.

If the latest forecasts from Euromonitor are indeed true, “there will be more than 330 million people in the ‘developed world’ who will be living alone by the year 2020. That’s a 20 percent increase in less than a decade.”

Equally, data from Open Table shows “the majority of solo dining reservations are booked for dinner (43 percent) followed by lunch (30 percent). Solo diners also book the majority of their tables Monday to Friday (78 percent), saving the weekends for dining with others.”

Catering to solo diners takes some adjustment, an open mind, and specific training. Let’s have a look at a variety of ways restaurants can begin to take advantage of this growing opportunity.

1. Welcoming the Guest

One of the easiest ways in which a restaurant can make a solo diner feel unwelcome is at the time of entering the restaurant. When someone walks in solo, staff should never ask ‘are you dining alone?’ or ‘table for one?’ especially at a volume that other guests may overhear.

You want to seat them where they can see what is going on. The guest may be lonely and want someone to talk to. Be friendly, but don’t neglect other guests. With nobody to talk to, time seems long (though smart phones help), so it’s ideal to serve them as efficiently as possible, without rushing their service. Invest in Wi-Fi and provide solo diners with a password as soon as they sit down. This could be the servers’ most critical guest of their shift.

2. Seating Strategies

When planning a new restaurant layout or adjusting your current one, keep in mind solo diners. Consider table optimization or the use of communal tables and high-tops for these guests. At the same time, you want to consider their view as a high percentage of guests would rather choose to sit near points of interest, such as a window, featured wall (near fireplaces or wine racks, for example) and not just near the exit, kitchen door, or washroom for example, as many restaurants have done in the past.

Some solo diners may prefer quiet and privacy, but many are now open to enjoying a meal at a communal table with other solo diners or even learning a few things from the bartender or chef, while sitting at the bar. Either way, know your concept, know your demographics, know your square footage, and adjust accordingly to maximize on your Restaurant Revenue Management (RRM).

3. Elevating the Bar

If the restaurant has a bar, consider this as a potential seating arrangement for solo diners. Pending the concept, bars are becoming less and less just for beer, cocktails, or shots. With the correct setting and chair style; the solo diner, who should be able to order everything off of the restaurant menu right at the bar, will be able to enjoy a meal, converse with the bartender, people watch, and enjoy a memorable experience without looking across at an empty chair. A nice place setting at the bar can in fact, be more enjoyable for solo diners and be more profitable for the restaurant, than that of a traditional table, with a correctly engineered menu.

4. Create a Tasting Menu

How often do we see fantastic pairings and unique menus, for couples or larger groups? There are rarely any meal deals for solo diners at casual or fine dining restaurants. These individuals should not be treated any differently than a table for two, and in fact, solo diners may spend nearly as much as a table for two. Ensure there are appetizers, entrees, and desserts that are geared toward solo diners and/or create tasting menus with the solo diner in mind while pairing the food accordingly with offered beverages.

5. Serving Single Guests

Customer service training is extremely important, for any guest, but arguably more so, for the solo diner. Though solo diners are rarely ‘alone’ anymore thanks to smart-phones, service staff must still make it a point to serve them efficiently. Service staff must not assume that solo diners will not appreciate an up-sell, another drink, or that the guest is a simple ‘one and done’ visit. Service staff must still make it a point to give the diner time and not rush them to flip the table for a larger party. Make it a point as an owner, operator, or manager, that each staff member understands the importance of a solo diner.

Restaurants can no longer assume that solo diners mean less revenue. The numbers don’t lie; the frequency of these visits is only going to increase. With the right method of planning and adjustments to seating, bar design, menu engineering, marketing, and customer service training, solo diners may indeed, improve your restaurants bottom line!

November 19, 2017by krghospitality krghospitality No Comments

Hosting Events Can Generate Revenue

How Hosting Events at Your Restaurant Can Generate an Additional Revenue Stream
Originally Posted on FoodableTV by Doug Radkey – 11/19/17

You have the square footage, you have the approved capacity, and you have the kitchen. These are the three key ingredients required to host an exclusive or intimate type event at any venue. Whether you have the capacity for 20 or 200 guests, there is an opportunity to generate awareness, revenue, and repeat customers by becoming known within your community for being the ‘best host in town’.

Hosting events are a great way to fill a restaurant on any chosen day or night. From hosting business networking events and office meetings to fundraising events, menu tastings, media launch parties, and ‘paint’ or ‘trivia’ type nights – restaurants have the ability to plan out the most “perfect event.”

Restaurateurs must start to realize that hosting events are a great secondary source of revenue. By strategically planning your own events well ahead of time will position your restaurant to obtain pre-event cash-flow and allow you the opportunity to maximize on labour management, inventory management, and revenue per available seat on what may be a typically slower day.

Here are some strategies to craft a memorable and profitable restaurant event while becoming the talk-of-the-town through the use of social media!

Create a Strategy Plan

As always when developing any strategy or marketing related plan, know your target market in terms of socio-demographics. This will help in determining the type of event that your guests will resonate with. A strategy plan will also create objectives, milestones, and layout personnel related responsibilities in addition to outlining costs and potential return on investment. Planning ahead, approximately two to three months, will further allow you and your team the time to create professional marketing material and properly prepare for each event, creating the perception that you are well organized.

Type of Event

To make event management work for your restaurant, it must create a unique and memorable guest experience, which is no different than traditional dining strategies. Restaurants that provide food and beverage tasting events, DIY paint nights, community fundraisers, dinner and comedy shows, and of course live music are currently leading the way in generating brand awareness and revenue opportunities. Meet with your front-of-house and back-of-house teams, think outside the box, and come up with creative events.

That said— the most ideal self-hosted event for a restaurant is a food and beverage tasting event. Holding one or two per month is an excellent way to showcase your kitchen and bar while offering a limited time only experience. Consider hosting a four-course wine-maker’s dinner or a beer and cheese pairing night or a ‘one night only’ seasonally plated dinner event where you collaborate with local farmers and artisans. The ideas are truly endless.

Pre-Event Management

Within your strategy plan, you want to outline pre-event, day-of event, and post-event management strategies. With pre-event management, you want to give your event the appropriate lead time required to generate buzz and awareness.

This is your opportunity to:

Create an engaging social media strategy. According to KissMetrics, 77 percent of event managers rely on social media as a primary engagement strategy before events.
Create ways to collaborate with local partners, vendors, and community influencers to amplify the events awareness and to generate value-based add-ons for the event itself.
Create a cash-flow opportunity by requiring a reservation through pre-payment. By knowing your target market, completing an event cost analysis, and pending the style of event, ticket prices can often vary from $50 to $150 per person.

Day-Of Management

When the day of the event arrives you must be prepared. A completed strategy plan will outline responsibilities, food and beverage preparation, staff requirements, and sequence of service.

To maximize on the opportunity, it is also critical to:

Have a social media strategy in place for the day-of by promoting opportunities within the four walls of the restaurant for guests to check-in, use hash-tags, and encourage photo and video usage.
Have a repeat customer strategy in place by offering a measurable incentive to return for all of the events guests. There is a chance that it’s the first visit to the restaurant by some of the guests, therefore it’s critical to maximize on the moment and ensure they return for another meal within the next 30 to 60 days.
Have an appointed ‘guest experience’ manager walk the floor, take photos to create additional content, and interact with guests to ensure they’re having a good time.

Post-Event Management

This is where many restaurant events fail. When the event is over, the effort must not end. There must be a plan in place to continue the momentum that’s been created. Restaurants should further look to:

Review the guest generated content online (photos, videos, hash-tags, reviews, etc…) and look for ways to share and engage with that content over the next couple of weeks.
With the measurable incentive program in place, how many of those event guests returned for a traditional (non-event) meal within the next 30 to 60 days?
Review the overall success of the event. Did it meet the objectives in terms of revenue, costs, and return on investment? Were there any pre-event or day-of event processes that could have been better? Could this event become a monthly, quarterly, or annual type event?

By becoming known within the community for hosting events, you provide guests with new experiences each time they visit and they then look forward to the next event while sharing their experiences with their friends, family, and co-workers. Outside of that, they may look to host their own event (birthday party, retirement dinner, etc…) at your venue providing you, as an owner or operator, with the opportunity to piggyback on their own marketing efforts.

As you can see, hosting events should not be overlooked; they are a great way to also amplify your brand messaging and create long-term brand ambassadors.

November 9, 2017by krghospitality krghospitality No Comments

Creating Adult Playgrounds in Your Bar

Creating Adult Playgrounds in Your Bar
By Doug Radkey 11/09/2017

Traditional darts, billiards, and even dance floors are starting to take a back seat in today’s fast-paced bar segment. To be current, playful, and competitive, today’s bars are required to step up their ‘game’; where having a great time must be a guarantee!

It’s no secret, that keeping guests in a venue for as long as possible creates more revenue generating opportunities. By providing a variety of interactive games and maximizing the square footage (creating an adult playground), venues can provide the energy needed to attract guests, amplify their brand messaging, and generate revenue throughout the many parts of a day or evening.

To do this successfully, bars need to first create unique value, vision, mission, and culture statements while understanding their true target market. This will ensure that the right mix of interactive games, music, food, and beverages are provided – creating an atmosphere that will resonate with the guest.

Here are five #barhacks to keep in mind when developing your venues interactive strategy plan:

Create Energy

After reviewing your target market and the available square footage, what interactive games would generate positive energy and a memorable experience? Which day-parts are lacking revenue and what can you add to fill in the gaps and maximize on each operating moment?

Hot trends for new builds: If you’re just starting out, look at the feasibility of a business model that revolves around an adult driven bowling alley, shuffle board layout, axe throwing cages, and/or indoor golf simulation that pairs well with unique food, craft beer, cocktails, and music.

Hot trends for operating bars: If you’re already operating and don’t want to plan for a major renovation, analyze your current square footage and consider adding in the likes of bocce ball, adult arcades, ping pong, beer pong, foosball, life-size connect four or skee-ball for example; either indoors or outside on the patio. If you have multiple large screens, consider hosting sport tournaments using an x-box (as one example). Maximize each minute and feel free to rotate a variety of games in-and-out, to keep it fresh.

Collaborate

Providing this type of atmosphere and energy is what suppliers like to see. This opens up an opportunity to collaborate with your suppliers to step-up promotions and offer unique, highly valued prizes and theme nights that will be a win-win for everyone involved, including your customers.

Food & Drink

Once you know the interactive route you’re taking, it opens a large opportunity for unique menu items. Outside of traditional speciality menus, consider adding self serve food or drink stations. With fun, interactive adult games comes the notion to reflect on your youth. For example, a fill your own candy bowl station or build your own ice cream sundae station. Or perhaps consider adding in a ‘create your own’ Caesar (Bloody Mary) bar stocked with different flavour infused ingredients.

Revenue Packages

Adding in all of the above tactics will position your bar to create ‘stay & play’ type packages or revenue generating membership cards, which will also create long-term loyalty. With the right marketing plan, this ‘value-add’ approach will win with both the younger and older generations.

Amplification

When finalizing your strategy plan and mix of interactive games, music, food, and beverages, always think social media. Design everything so it is social media worthy meaning guests will want to take photos, take live video, or simply check-in at the hottest spot in town – creating an inevitable fear of missing out (FOMO) among their network.

Pairing all of this with a fun, secure atmosphere will undoubtedly create brand ambassadors and long-term success for your bar. It’s time to think outside the box and up your game to create memorable guest experiences!

November 5, 2017by krghospitality krghospitality No Comments

Preparing Your Restaurant for Thanksgiving

Preparing Your Restaurant for Thanksgiving
Originally Posted on FoodableTV – By Doug Radkey 11/05/2017

Each individual has their own personal explanation of what Thanksgiving means to them. The general, modern celebration of Thanksgiving however, is characterized as an opportunity to enjoy quality time with friends, family, food, the occasional beverage, large parades, and yes, often the game of football.

It’s also a time to reflect, set aside political and corporate related agendas and turn a blind eye to the negative news surrounding us from around the world. Smiles, laughter, and memorable experiences are often shared over the course of the long weekend.

With so much focus around food, drink, and togetherness; what does all of this mean for restaurants on Thanksgiving?

Well, restaurants aim for a similar experience each and every day— offering food, beverage, smiles, laughter, and memorable moments with friends, co-workers, family, and loved ones.

Depending on the restaurant concept and its location, there likely lies a large opportunity to generate awareness, increase revenue, develop repeat customers, or hopefully, a combination of the three.

Here are six elements to consider for your restaurant around Thanksgiving:

1. Marketing 101

Solve a problem. For starters, a restaurant has an enormous opportunity to highlight consumer convenience by solving one of Thanksgiving’s largest ‘problems’.

What’s the one thing everyone enjoys at Thanksgiving? The answer (naturally) is eating the delicious Thanksgiving meal. What are the two things everyone dislikes at Thanksgiving? The answer is cooking the delicious meal (for many people) and of course cleaning up after the often large, messy meal.

With high quality design, consumer touch-points, and overall (pain-point) messaging, a marketing program can highlight convenience, more time for family, and yes, keeping a nice clean kitchen at home.

How can your restaurant leverage this solution?

2. Menu Development

The traditional Thanksgiving meal revolves around turkey, stuffing, yams, other vegetables, and of course, pumpkin pie. Is your restaurant in a position to offer this traditionally plated meal or other fall/harvest flavors? How about a unique variation or infusion based on your restaurant’s concept and kitchen structure?

Don’t be afraid to think outside-the-box and get creative. If you’re a sports bar, put together a football inspired Thanksgiving menu. If you’re a QSR near a parade route, create an easy-to-eat holiday inspired option for on-the-go.

Develop a menu plan with the entire kitchen team (and bar team) with the restaurant or bar’s target market and concept kept close in mind. As always, keep the specialized menu small and inviting to reduce inventory, prep-time, additional staff requirements, and potential waste.

3. Revenue Options

If you strongly believe the target market would prefer to dine at home for Thanksgiving, don’t look at it as a potential loss. This presents an opportunity to offer the catering of a traditional or concept-infused, Thanksgiving meal— right to their door!

Create a variation of value-added packages for different sized parties and request 72 hours (or more) notice to have it prepped and delivered, right on time. Just don’t forget the high quality take-out containers and plates for an easy clean-up afterwards! Pre-ordered packages such as this will generate cash-flow, control potential waste, and control staff costs.

4. Cross-Promotions

Make sure that special events and other winter related promotions are planned for well in advance. The Thanksgiving holiday weekend can act as a forerunner to both Christmas and New Years Eve parties, packages, and other revenue generating opportunities such as gift card sales.

With the right marketing and sales mix, a restaurant or bar can take advantage of pre-booking and pre-sale opportunities; keeping in mind many consumers are already in a money spending mindset, thanks to the likes of ‘Black Friday’ and ‘Cyber Monday’ which surrounds the holiday in the US.

Create a marketing plan that will drive sales now and over the next 1-2 months.

5. Giving Back

Based on your concept, target market, location, and/or size of establishment, maybe the above options aren’t right for you. This doesn’t mean that your restaurant cannot be involved in the festivities. Consider hosting a community benefit meal for less fortunate individuals or families, or hosting a meal for military personnel.

If that may not work, consider getting your team involved in the holiday by assisting at local food banks or shelters. This practice will not only increase employee engagement, but also develop a positive perception of your brand and increase the possibility of local media coverage. Make it a win-win for everyone involved!

6. Saying Thanks

It may sound obvious, but show what you’re thankful for. Give thanks to your customers with appropriate messaging on social media, your website, or within the specialized menu. You can step it up a notch and ask staff to provide a video snapshot on what Thanksgiving means to them and then create a video montage to share on Social Media.

Speaking of staff, let’s not forget about them! Ensure they’re given time to spend with their friends and family too. Be flexible with your scheduling and/or consider special operating hours over the course of the weekend – and don’t forget to thank them for their loyalty and commitment!

By truly knowing and understanding your target market, your concept, and the neighboring business environment, the Thanksgiving holiday weekend is an excellent time to showcase your brand and your creativity – ultimately generating awareness, revenue, and repeat business opportunities.

November 1, 2017by krghospitality krghospitality No Comments

What to Look for in a Restaurant Business Partner

What to Look for in a Restaurant Business Partner
Originally Posted on Typsy by Doug Radkey – 11/01/2017

If you’ve worked as a leader in the restaurant industry, then you know what it’s like. You know that leaders have to be willing to make sacrifices and acquire the systemized thinking, social skills, creativity, stress management, and passion that it takes to be successful.

Becoming a restaurateur combines an enormous amount of passion and vision. You have to create food, drink, and overall experiences with a drive that is undeterred by the high number of unprecedented risks. You must be determined, positive, confident, adaptable, and crave learning experiences.

And even if you do have all of those qualities, it can often be too much for one person to endure. This is when considering a partnership might be ideal for some.

It’s not uncommon for restaurants to be started or initially operated by a partnership, and you will be hard pressed to find a well-known restaurant brand that didn’t start as a partnership before becoming a larger corporation.

However, partnerships aren’t easy. They come with their own set of challenges, both at the start-up phase and during the operational stage.

There must be a common vision, mission, and commitment, and a high level of communication, creativity, and expertise between partners. Effective partners will also play off each other’s strengths and weaknesses to succeed in this cutthroat industry.

Here are a few elements to consider when determining if a restaurant partnership is right for you. This is what you should be looking for in a business partner today.

1. Have a Three-Step Plan

Before engaging in serious partnership discussions or agreements, it is crucial to complete a feasibility study, concept development plan, and business plan. Is the idea of a partnership even feasible? Can your restaurant concept withstand not only the market, but also two or more owners? Is there enough of a profit margin for all partners to live a healthy lifestyle? What are the short and long-term goals?

Many questions need to be answered before you make any decisions, and these plans will lay the foundation needed to move forward.

2. Conduct a SWOT Analysis

There should be a competitive SWOT analysis within the business plan, but it is also ideal to complete a thorough SWOT analysis (strengths, weaknesses, opportunities and threats) on both a personal and partnership level.

What strengths and weaknesses do you each possess, what opportunities exist if you decide to partner, and what threats will present themselves if you formulate a partnership?

For full effectiveness, have all potential partner(s) complete the same and analyze all of the responses.

3. Create Statements

To ensure potential partners are on the same page, it is imperative that you all have a similar vision, mission, value, and culture statements. Complete an exercise, similar to the SWOT analysis, in which each individual writes a statement addressing those four categories. These answers should then be compared against one another.

A partnership will inevitably run into hard challenges if visions and goals are not equally aligned. If you cannot cohesively agree on these statements at this stage, don’t move on to the next step.

4. Review the Laws

It’s absolutely critical to review your national and local business laws, regulations, taxes, and how they may relate to structured partnerships, liability, and asset management. Many countries, states, provinces and local municipalities have different information on their registered requirements.

Study this information and review it with both an accountant and a lawyer, so you can determine which partnership structure is best for your unique situation.

5. Draft an Agreement

Restaurants, bars, and other hospitality related businesses are really no different to traditional businesses. There needs to be a comprehensive and clear partnership agreement in place, even if it is a friend or family member as the potential partner.

The agreement must clearly state the financial structure of the partnership (investment, return and profit share) in addition to property management involvement, labor involvement, and overall activeness within the business.

Will both partners be active in the day-to-day operations, or will one act as a ‘silent partner’? Often, one partner looks after the back-of-house while another looks after the front-of-house, or is one partner just there to assist in finances while the other operates the business? Every minor detail must be documented, reviewed by a lawyer, and signed for liability and accountability purposes.

At the end of the day, successful partnerships rely on setting realistic (S.M.A.R.T) goals, open communication, frequent meetings, defined roles, and sound business structure. Only partner with other individuals who are willing to be open, honest, and respectful, and share the same values that you do.

You will need a balance of planning, trust and talent to be compatible. There will undoubtedly be stressful situations throughout the start-up phase, operational phase, and overall partnership that will reveal who you have really partnered with.

By executing these steps, you should be able to limit any surprises. The same goes for partnerships as it does for business in general; if you fail to plan, then you plan to fail.