Bar Operations

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!

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.

Creating Restaurant Brand Ambassadors

Originally Posted on FoodableTV by Doug Radkey – 10/14/2017

Ask nearly every restaurant owner what their number one, long-term marketing ‘program’ or tactic is, and most will say effective word of mouth. This can be great until it starts to fizzle down or another new restaurant opens up down the street resulting in the competition becoming the new talk of the town.

Instead of shooting into the wind and hoping ‘word of mouth’ with deliver desirable long-term results, restaurateurs need to embrace a program that is an extension of word-of-mouth marketing, by developing what is called ‘brand ambassadors.’

A brand ambassador will positively represent and promote a restaurant’s venue. They will embrace the company values, vision, mission, and culture. They will strengthen a restaurant’s identity within the community by providing additional visibility and overall awareness.

Yes, word of mouth happens organically over time because of excellent food, drink, service, and experiences, don’t get me wrong. But what if there was a way to double-down and create multiple micro-communities and multiple levels of ambassadors to promote a restaurant’s brand?

That’s where an ambassador program comes in.

Here’s how:

Owners & Operators

A winning brand ambassador program begins with guests and staff. However, as with any program, there needs to be a leader. As a restaurant owner or operator, there are many ways to be included within a brand ambassador program and be looked up to as the leader of the program.

Business Networking

Restaurant owners and operators can further ‘humanize the brand’ by networking within the community and showing the face behind the brand at a variety of business events that every city or community holds. Building effective hyper-local relationships is the first step to a winning program.

Community Involvement

Restaurants can build and protect their reputation by being involved in as many community based events as possible and even collaborating with other restaurant or foodservice operators within their area. An open mind and community driven mindset is essential.

Community Influencers

Restaurant owners and operators should also look to build long lasting relationships with community leaders, city officials, F&B distributors, local media, and bloggers— who are all influential within their city. These individuals can further amplify a restaurant’s positive message.

Set Goals

Once an owner or operator is on board with a true brand ambassador program, setting clear goals for both guest and staff ambassadors, is required. What do you want to see come out of this program? When setting goals, remember this one key rule a friend once said – ‘numbers lie and relationships rule’. Don’t look at the financials first; the money will flow once relationships are built.

Restaurant Guests

Happy customers are everything. They are the foundation to effective word of mouth. Outside of hoping they share their experience with their social network, there is a multitude of ways to get them further involved in the process of building true brand ambassadors.

Focus Group

Develop a group of individuals who show great interest in the restaurant (regular guests) and meet with them either once per month or quarter. Discuss upcoming community events, new menu items, or possible events to hold at the restaurant. Get them involved and give them something to talk about. For example, provide food and beverage samples of new menu items they will surely take photos of and share with their network.

Social Amplification

Similar to focus groups, consider holding ‘Facebook Only’ parties for example, where the only guests are ones that are fans of the restaurants page. This will surely amplify your messaging, product, and experience as they will be sharing photos or even live video of the event with their network.

Loyalty Programs

Every restaurant should have some form of loyalty program. There isn’t a one size fits all approach, but the general rule is that it will only work if the restaurant makes it worth something of perceived value. This comes down to knowing customer profiles and thinking of creative ways outside of just the standard ‘get one free after ten purchases’ loyalty program that everyone sees.

Restaurant Staff

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 the positive moments, effectively becoming brand ambassadors.

Provide Empowerment 

When staff members are given empowerment to make minor decisions, a lot of positive can come from it. Customer service is the number one benefit, and happy customers as we know, continue returning. A training program that focuses on customer service sequence training (role playing) will allow staff the opportunity to create relationships with guests while providing both confidence and empowerment within their respective roles.

Double the Social 

Nearly all employees will be active on some social media platform. Restaurants should look to encourage the use and even supply employees with content to share with their network. A social media training and a social media policy however, needs to be clearly articulated and signed off on to protect the brand. Furthermore, make sure staff members are included as much as possible with community events and any focus groups to amplify the social reach.

Create Stay Interviews

When staff members are happy, make a record of it. Create a ‘stay interview’ which is asking them questions such as why they love working at the restaurant so much? Create a video, share it, and post it on the restaurant’s website. This will create a positive brand perception which will improve hiring processes, reduce turnover costs, and set the stage for future brand ambassadors.

In summary, doing the unexpected, getting involved, creating engagement, highlighting staff, and listening to guests, will instantly develop the foundations for not only word of mouth, but that of a brand ambassador— delivering the desired long-term results!

7 Ways You Can Increase Your Restaurant Brand’s Social Responsibility

Originally Posted on FoodableTV by Doug Radkey – 08/30/17

Giving back to the communities we serve is not a mandated practice, but is rather something extra that restaurants, and businesses alike, can do to improve their local and national communities.

This is also known as— social responsibility.

This practice can not only increase employee engagement, but also:

• Develop a positive perception of your brand
• Increase revenue opportunities; and
• Increase the possibility of local media coverage

What restaurant wouldn’t want that?

According to the National Restaurant Association, over 90% of restaurants in the U.S. make some form of charitable contribution each year.

What more can be done, you ask?

Let’s take a look!

It can be as simple as what the Taproom on 19th does in Philadelphia. The gastropub in partnership with its neighborhood association, gives out free beer to anyone who donates school supplies and winter coats.   

It can involve a more hands-on approach, like what Joey Restaurants is doing with their Cup of Care program, where their front of house, back of house, and head office leaders volunteer their time to wash, peel, and chop over vegetables for beef and barley soup “To date, JOEY has served 100,000 hot meals across Canada, Seattle and Los Angeles partnering with local shelters and organizations” chosen by their employees in each of their communities.

Or, it can involve improving and educating your own team, like Chick-fil-A has done since 1973 with their scholarship program. This brand has been helping restaurant team members achieve their dreams of higher education. Since then, nearly 36,000 team members have received scholarships from the company, “bringing the total amount to nearly $36 million applied at more than 3,000 schools nationwide” as stated in a 2016 blog post on Chick-fil-A’s The Chicken Wire.

Below are a few items to consider when either starting or revamping your own social responsibility program to deliver a more memorable impact!

1. Make it a Team Based Mission

Part of your vision, should be improving your community. How will you turn your vision into a promise? Your program should be highlighted in your mission statement, so it can be shared with your team and community. Take it a step further and set up SMART goals for your program to hold a level of accountability. How much time and/or financial resources do you want to work towards and give back each quarter or year?

2. Reflecting On Your Values

Hopefully you’ve taken the time to define your importance, worth and usefulness within your restaurants statements. If you’ve hired and built your team based on both values and experience, your team should have a common goal of wanting to give back. Get them involved in your social program and have them open up about causes they really care about, as well.

3. Environmental Impact

Is there a way your restaurant can build on sustainability? What energy efficient measures can you put in place at your venue(s) and how can you source more ethical food and beverage products to reduce your environmental footprint?  You can also help the environment out by donating used equipment to nonprofits when it’s time to upgrade (instead of disposing them at your local landfill). What kind of impact do you want your brand to leave behind?

4. Local Events

Restaurants pose an easy and enormous opportunity to sponsor local events or teams, or by donating a percentage of revenues to a local benefit event or organization. With a large seating area, a restaurant can also host a fundraising day or night at the restaurant itself. Restaurateurs can also look to support local military and first responders with dining discounts or donations to their equally important charity programs.

5. Team Building

Your restaurant could also take the approach to improve the long-term wellbeing of your team, through a scholarship or further-education program. This could be additional culinary, management, or mixology education scholarships for example, that will improve your operations, both now and in the future. Speaking of team building, giving back often leads to a more positive work environment and increase in staff retention, plus an increase in creativity and personal growth while promoting individual philanthropy.

6. Disaster Relief

When disaster strikes, restaurants are often in a position to lend a helping hand, either locally, nationally, or globally. Whether it is a tornado, earthquake, hurricane, or other life altering event, restaurants can become hubs for financial donations in addition to ‘match funding’ programs – or even the delivery of food or chefs right to the front-lines.

7. Poverty Assistance

This is an unfortunate aspect of nearly every community. Restaurants are given the opportunity to help the less fortunate through a variety of methods, including volunteer participation, hosting a neighborhood cookout, or by hosting food drives benefiting the local food bank, just to name a few.

As much as a restaurant brands should be taking part in social responsibility for the sole betterment of their community, you should want your program to also improve your image, increase media coverage, develop engagement, and attract investors.

Make sure your program is visible on your website, within the four walls of your establishment, and throughout your social media channels to maximize its reach and potential.

Make it a win-win for everyone!

Before You Expand Your Restaurant Read This

Originally Posted on FoodableTV by Doug Radkey – 08/22/17

Whether you’re an aspiring restaurateur or an experienced operator, it has likely crossed your mind to open at least a “few locations,” or to begin “franchising” a winning concept.

It’s in our human nature to grow and always look for more, right?

When the timing is right, expanding with multiple locations can make a lot of sense for a brand, but only if it is truly, the right time.

A common first challenge is that many restaurants, even successful restaurants, are simply not ready or properly positioned for this type of expansion. To scale a restaurant from one location to two or three and/or to lay the groundwork for franchising, it takes a variety of planning methods, in-depth market research, and the proper execution of a variety of systems.

The second challenge is that many independent restaurateurs try to go through this growth stage all on their own or with their first location’s key staff members, often resulting in burnout for everyone involved and ultimately sacrificing the success of the first restaurant.

The silver lining is that every challenge has a solution if you approach it with the right mindset.

To prepare a restaurant for growth, the following strategies and due diligence need to be prepped prior to moving forward with the idea:

Prep a Business Plan

Just because the first location was successful, doesn’t mean the second or third location will automatically have the same success.

Whether you plan to fund the growth stage yourself or pitch the growth stage to investors, a business plan is vital to the success of not only one, but multiple locations. A market feasibility study (demographics and competition) for each location in addition to trend management, financial forecasting, start-up costs, staff structure, and realistic time-frames to meet critical objectives, all should be vetted out to achieve the long-term success of each location (including the original).

Determine Your Concept Characteristics  

If you’re looking to get into franchising in particular, it is wise to consider operating two or three locations first, prior to executing a ‘franchising plan’. Before others will invest in the concept, it must be tested in a variety of settings and demographics – not just one.

This is where ensuring the five concept characteristics of being scalable, profitable, memorable, consistent, and sustainable are evident in not only your designs, but your complete operations. It may be a wise investment to have a 360 degree assessment done on your venue.

Make Sure Your Systems Can Be Easily Duplicated

Arguably one of the most important aspects in terms of growth is ensuring that each restaurant has the right systems in place. Duplication is the key.

Your operations will undoubtedly run like a well-oiled machine if all restaurant outlets are using the same winning formula.

Each location must operate in unison. If even one system (training, communication, marketing, preparation, inventory, human resources) is broken or is non-existent in the first location, the second location will struggle even more. To do this, there must be operational manuals, HR policies, and training platforms in place that can be easily duplicated.

Keep the Kitchen & Bar Consistent

Playing off of the systems – if you’re developing identical concepts, consistency is essential. If a location is ready for growth, it’s because it’s built a brand with memorable food, drink, and guest experiences.

This must be duplicated among all additional outlets.

But now that a location is growing, so do the expectations of its guests. All recipe books, portions, supply chain, kitchen manuals, bar manuals, and staff training must be created equally and consistently across all channels.

Implement a Supporting Cast  

Remember that everything is multiplied when adding additional locations, including the headaches and sacrifices it takes to operate just one location.

Are you in a position to handle this extra workload? The answer is probably no. What often happens is the 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, including additional chefs, managers, and supervisors in addition to startup specialists like consultants, designers, engineers, and architects that will save time, money, and energy.

Re-evaluate Your Marketing Plan

Is your current marketing plan suitable for multiple locations? What has worked and not worked for the first location? What would need to be changed in terms of the website, search engine optimization, social media, and print collateral to name a few?

In addition, if not already complete, trademarking the name, logo, and any associated tag-lines is also critical to protect the brand in new or multiple markets.

In short, restaurant growth and/or franchising can create enormous opportunities if executed properly.

That said, the number of locations a restaurateur or restaurant group may have is simply that, just a number. It’s important to not forget the fundamentals, where the quality of food & beverage, customer service, and guest experience is paramount at each location.

9 Ways to Maximize Restaurant Downtime

Originally Posted on FoodableTV – By Doug Radkey 07/22/2017

Unless you’re a part of a very small percentage of restaurants that are always busy with customers, there is going to be some downtime throughout the day and in between services.

In many restaurants and bars, this time is often filled with staff gossiping and texting on their phones, or in summary, being unproductive.

Each position within the operations should have very clear job expectations from day one, including what to work on each day during quiet moments.

This is important to keep the restaurant running at a consistent high level. Owners, operators, and managers need to also lead by example during these times and maximize each moment of opportunity.

Outside of scheduling employee breaks, here are nine ways to make the most it:

1.Scheduling

The key is to keep energy levels high at all times. You don’t want to allow staff to become bored while at work. Reduce the amount of staff required during these times and have a daily, weekly, and monthly schedule of tasks required, to keep the ship sailing.

Prepare easy to follow checklists and don’t be afraid to delegate tasks. Use this opportunity to get everyone involved and working towards a set of common goals.

2.Service Preparation

Likely the most obvious task is preparing for the next rush of customers. Food preparation, stocking of beverages, preparing garnishes, filling salt & pepper shakers, rolling flat-wares, and checking other condiments should be a priority during these “downtimes.” A checklist listing each item will ensure nothing is overlooked and that service runs smoothly.

3.Cleaning Tasks

The next item to consider is cleaning. The old adage of “if you have time to lean, you have time to clean” should be ingrained into each staff member. Prepping thorough cleaning schedules that also promote accountability is essential as there is zero excuse for a dirty restaurant. Everyone must be on-board and understand the consequences.

4.Inventory/Ordering

Ordering and inventory control should not be two separate processes – they should work as one cohesive unit. There is now an array of apps, programs, and point-of-sale add-ons available to assist staff.

The secret to ordering and inventory control, still lies within you – the owner, operator, chef, or manager to ensure it is completed and accurate – so use this time wisely.

5. Review Marketing & Advertising

Assuming there is a monthly and quarterly marketing & advertising plan in place, use this time, at least once per week, to review the budget and the programs. Which areas are showing results, which need further investment, or which ones need to be discontinued?

Take this time to also review the hyper-local competition and do an in-depth analysis of social media accounts. Summarize the past weeks online and offline guest comments and/or secret diner results and then prepare a full summary report to discuss with your staff.

6. Review Cash-flow

Set aside a moment each day to review current point-of-sale reports, invoices, and other accounting statements which will assist the entire team to analyze guest counts, revenue, food & beverage costs, and labor costs which should be reviewed against week-over-week, month-over-month, and year-over-year reports.

This summarization will then assist in predicting future revenue, scheduling needs, food & beverage preparation, and other operational trends allowing you to more effectively ‘live in the moment’.

7. Ongoing Training Schedule

To run a smooth restaurant, it is imperative everyone continues to learn while working towards both team and personal goals. Use quiet moments to learn new food and drink options, refresh the team on ingredients, complete taste testings, and review service sequences.

This is also a great opportunity to role play different guest and service interactions based on recent scenarios that may have occured – practice makes perfect!

8. Preventative Maintenance

A thorough walk-through of the property, both inside and out, should be scheduled at least once per week before opening or during these noted quiet times. What needs to be fixed or replaced? What filters (water, grease, hood) need to be cleaned? What equipment could use a check-up or some fine-tuning?

Stay on top of it now to prevent surprises during peak periods. Also, it’s ideal and encouraged to turn off equipment not needed during these quiet moments to save on energy and costs.

9. Hold Meetings

Lastly, use this time to effectively communicate. Hold team meetings to discuss the upcoming service, marketing & advertising plan, recent guest comments, and current financials of the restaurant. One can also use this time to conduct one-on-one interviews with staff as a time to set and review personal goals within the operations.

An old friend used to say, “less chitter-chatter, more pitter-patter.”

If restaurateurs continuously look for ways to keep productivity at its highest peak and for ways to fill this quiet time with paying customers, restaurants will see immediate results, day in and day out.

It takes a team effort and it starts now!

Maximize Restaurant Profits & Live in the Moment

Originally Posted on FoodableTV – By Doug Radkey 07/05/2017

There are arguably four key ingredients to a successful restaurant – the right marketing plan, flawless operating systems, memorable customer experiences, and finally, what I like to call ‘living in the moment’.

In the blink of an eye, a moment of opportunity is simply gone. You’re not going to get the past day, past hour, or past minute – back again.

With that in mind, ask yourself this right now– have you taken full advantage of cost control and revenue generation during the past day, past hour, and past minute?

A successful restaurateur understands they must maximize every day, every hour, every seat, every phone call, and every online order. Empty seats and minimal productivity is simply not good for business in this cut-throat industry where costs must be controlled and where revenue must be generated on an evolving basis.

Customer duration, kitchen productivity, average check, and Revenue Per Minute (RPM) or Revenue Per Available Seat Hour (RevPASH,) must be closely monitored by today’s operators and managers.

So, how can a restaurateur maximize profits, improve customer turnover rates, control operating costs, and effectively live in the moment?

Here are some tips everyone can use, starting today!

Tip #1: Do an Operations Audit

Review all day-to-day processes and understand the overall work-flow of the restaurant.

Some good questions to answer:

• What back-of-house systems and front-of-house systems are being utilized?
• How are they affecting productivity, customer service, and customer turnover?

Review each checklist, each training program, each communication method, and each piece of equipment to determine how it is either hurting or improving the restaurant– in both the short term and long term.

Tip #2: Integrate Technology

Without completely replacing person-to-person interaction, how can new restaurant technology improve how a restaurant lives in the moment?

New technology can develop better and quicker communication amongst the entire team (for example, table-side POS systems.) It can also enhance and create more profitable take-out & delivery programs (for example, online ordering).

Technology can also improve inventory methods and cooking time methods, which will both reduce waste and help to control hourly operating costs. It may be time to complete a technology audit for your property.

Tip #3: Maximize Space

Table management, floor layouts, take-out counter design, and kitchen space optimization will in fact, play a large role in productivity, customer experiences, and customer turnover per day and per hour.

For example, a restaurant’s table configuration will greatly affect duration and average revenue per customer, based on the spacing between tables and whether it is a booth configuration or an anchored or non-anchored table setting.

Make sure you’re maximizing every square inch to its full capacity based on the concept and average party size without diminishing customer experiences.

Tip #4: Improve Menu Engineering

It’s no secret– the menu is where the money is made. The size of menu also plays a large role in productivity/ work-flow, potential waste levels, time of visit, and customer turnover rates.

For example, to fill seats during traditional non-peak hours, restaurateurs need to consider menus that target a variety of day-parts while understanding their ideal customer profile.

This takes a full team effort, from the owners, managers, chefs, and front-of-house staff with the assistance of point-of-sale reports, customer feedback, and other market research.

Tip #5: Update your Marketing Plan Regularly

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 target market and guest spending habits, a strategic plan can be developed and executed to maximize each moment of each day.

Ensure your restaurant has a monthly and quarterly marketing plan created with SMART goals.

Tip #6: Consistently Monitor Guest Experience

Outside of food, drink, and customer service – music (tempo & style), lighting (brightness), seating and/or counter configuration, and overall interior design also play a large role in contributing to a guest’s duration, their amount of spending, and if they will return again.

These consumer touch points must be monitored and measured on an ongoing basis, preferably with the help of secret diners.

Tip #7: Restaurant Revenue Management

Taking all of the above strategies and aligning it with an in-house Restaurant Revenue Management program (RRM), will accurately maximize revenue, time, and capacity while controlling your operating costs.

RRM can be defined as simply selling the right seat (or take-out meal), to the right customer, at the right price, at the right time, and for the right duration of time.

It is possible that a restaurant could run at 75% capacity or more, and still not be profitable. This is why combining what’s called Revenue per Available Seat Hour (RevPASH) or Revenue per Minute (RPM) reports with seat duration, average check, food costs, and operating costs including labor cost reports is extremely important to maximize each and every moment.

Some key takeaway questions to ask yourself now:

• What is the dollar value of each seat and each take-out order; every hour, day, month, and year for your restaurant?
• What is the cost of each operating hour?
• Are you living each moment to its fullest?
• What areas and what times of day can you improve on?

Only you know these answers and can leverage them to develop an action plan that will make your restaurant more profitable.

The Importance of Secret Diners

Originally Posted on FoodableTV by Doug Radkey – 06/20/2017

Traditional comment cards and now online reviews play a large role in this industry, but only a very small percentage of guests actually fill out the forms and/or leave a review. Plus, it doesn’t always provide a measurable result.

To get a truly unbiased, outside perspective, a secret shopper or ‘diner’ in this case, is often the best option.

For a minimal investment, a 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, 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 a goal to improve the score after each future visit.

A secret diner, whether for a franchise or independent restaurant, bar, hotel, or entertainment venue should be looking to fill out the following in their reports for restaurant operators to evaluate:

Curb Appeal 

A secret diner will score the establishment on parking, visibility, the landscape, lighting, and overall cleanliness of the exterior elements.

As a first impression, this score is extremely important and should not be taken lightly. 

Greetings 

No matter the type of concept (whether it’s a host/hostess in a full service restaurant or a staff member behind a counter at a QSR), the restaurant will be evaluated how long it took to be acknowledged upon entering. 

Share the in-house policies for greetings with the secret diner beforehand so they know what to look for.

A secret diner will also report on how smooth the process was while timing each of the interactions, including greetings for table service and how long a guest is traditionally waiting to be seated or taken care of for drinks. 

Service Sequence

Service staff are often the make or break between a positive and negative guest experience.

Are they following proper procedures when owners and managers are not around?

Are they announcing specials, walking a new guest through the menu, up-selling, or simply making suggestions based on knowledge of the menu?

Are they gossiping with other staff, or are they on their mobile phones? 

Are they able to adjust to a potential conflict a secret diner may throw at them unexpectedly?

These are all measurable results that can be used for future training purposes and improving customer service sequences. 

Quality Control

Food and beverage is of course, a crucial element to the success of the restaurant. A secret diner will test an establishment on timing between ordering and receiving each portion of the meal (including drinks) in addition to the overall taste and the overall presentation.

They will take note if they feel something is missing (maybe a garnish), if something was under or over-cooked, or simply could be better in terms of presentation.

All of this information is prudent to the improvement of a successful bar and/or kitchen.

Cleanliness

A secret diner will also take note of the cleanliness throughout the restaurant. These individuals are trained to look for clean chairs, tables, menus, condiment holders, floors, washrooms, and walls etc.

From where they’re sitting, what is visible to them at server stations, behind the bar, or into the kitchen? Use this information to improve cleaning schedules, work stations, and checklists.

Special Audits

An owner, operator, or manager may also consider hiring a secret diner to look for a specific issue they feel they’re experiencing. For example, is a bartender being too generous and adding in an extra half ounce (or more) of alcohol when asked nicely by the customer? Are they checking identification of possible underage guests? These are just two examples, but a secret diner can often be better eyes and ears than that of a camera.

A secret diner program is often overlooked or considered an unnecessary expense. If an establishment looks at it as a way to control costs and achieve efficiency, and is completed on a consistent basis, if will undoubtedly improve customer satisfaction and customer experiences. In addition it will also improve methods for current and future employees, training platforms, inventory control, and overall operations. 

All of this is extremely important when looking to grow, gain respectability within a community, or simply improve operations. Without these reports, a restaurant would be losing out on the opportunity to better themselves with an unbiased view of the establishment.

Nobody is perfect, but everyone can work towards a common objective and a secret diner program is the perfect start.