Bar Operations

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Managing Restaurant Customer Emotions Using Touch Points

Managing Restaurant Customer Emotions Using Touch Points

Originally Posted on Resto Biz – By Doug Radkey 04/27/2017

The restaurant industry is driven by delivering exceptional (and memorable) customer experiences. As a restaurateur, you need to realize that you don’t just sell food and beverage, you sell emotions through experiences. Your concept, whether a restaurant, bar, cafe or food truck, lives or dies by the customer emotions it creates.

To create emotions and deliver on your promise for memorable customer experiences, a concept must think through its initial design while utilizing processes, maximizing communication and creating surprises through a multitude of ‘touch points.’

If you’re just starting out or if you’re already operating, there are areas you must audit – from the view of the customer, to ensure you’re driving these required positive emotions.

Design Points

From the planning stage, a variety of factors need to be carefully addressed. These three areas can make-or-break a brand’s perception in a matter in seconds by delivering a negative or positive emotional reaction.

First impressions count, and it all starts with your entrance. What reaction will customers have when they walk up to and into your establishment?

You need to ensure you’re creating a sense of hospitality with concept-driven decor, accessible doorways and a quick, warm welcome.

Next, over 70 per cent of customers equate restroom cleanliness with the cleanliness of the kitchen. Carefully consider the positioning and visibility of your restrooms in regards to waiting areas, dining areas and the kitchen.

You also need to invest in sound acoustics in addition to scent management systems, while implementing a restroom cleaning schedule throughout each working day.

Lastly, the lighting in your establishment cannot be overlooked. A carefully thought out lighting plan will increase security, boost sales (yes, that’s true), and set the overall mood that your brand is ultimately seeking.

Lighting will, in fact, dictate how long customers spend at your property so it is imperative your lighting choices match that of your brand strategy.

Process Points

Processes, or systems, are the backbone to a successful restaurant. Memorable design, impeccable flavours and a fantastic server is still not enough. Having the right processes in place will develop consistency, which is a key component in developing positive emotions and word-of-mouth marketing.

FOH (Front-of-House) and BOH (Back-of-House) systems take effort, training and accountability. You must ensure you have HR management, inventory management, financial systems, preparation lists, operational checklists, and quality control measures in place. A customer will quickly pick up on an unorganized restaurant which will generate negative word-of-mouth.

Next, walk through the typical service sequence at your restaurant. From walking in, to sitting down, to placing orders, to the delivery of food and beverage – what is the customer experiencing? What are they visualizing, touching, smelling and hearing throughout each touch point?

Lastly, once the meal or order is complete, what is the exit sequence and payment process like for the customer? How long are they waiting, what payment options are available to them (think modern technology), and how will they remember you as they leave?

Is there a thank-you or ‘exit strategy’ in place?

Communication Points

A smooth operating restaurant requires fluent communication from and between not only the management, host, bartender, server, cook and chef, but also the customer. How are the following touch points affecting your customer emotions?

Walk through the process of placing a phone call, placing an online order, making an online reservation, or leaving a comment on social media for example. What emotions are you generating? How long do the processes take? What information is gathered and where is it stored? How long until there is a confirmed reply? Are there areas you can improve to deliver a quick, positive emotion?

Secondly, team communication among your staff affects morale which ultimately affects the customer of your restaurant, and your bottom line. How is the communication between FOH and BOH at your restaurant? What is your in-house process to address a customer complaint or even a question regarding an ingredient while at the table with a customer? How long does it take to resolve and who needs to be involved? What measures can be put in place to expedite the communication process?

Lastly, what messages are you communicating through your marketing channels?

What type of brand image are you portraying on social media, within your menu, on your website, and other advertising? Are the messages consistent and is the copywriting professional on quality material or images? What type of emotion does your marketing effort develop? Does it match your intended brand identity?

Surprise Points

Everyone loves a surprise, right? What expectations are you creating for your customers? What type of events are you generating? Are these events leaving positive, memorable emotions? Consider these emotions the next time you’re planning an event.

Next, what type of reaction are you receiving when you deliver a dish or creative cocktail to a customer? Are you maximizing the wow factor by offering a surprisingly high-quality visual presentation and taste? What can you do with your menu items to stand out from similar concepts in your area?

Finally, consider testing all of your touch points through implementing a monthly or quarterly secret shopper program to receive unbiased reviews while holding the entire team accountable.

By creating positive emotions through design, systems, communication and training, you will undoubtedly increase spending and return visits – which is, of course, your day-to-day goal!

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How to Lower & Control Labor Costs in Your Restaurant

How to Lower & Control Labor Costs in Your Restaurant

Originally Posted on Typsy – By Doug Radkey 04/25/2017

It’s no secret; the ‘average’ restaurant and bar has up to 70-80% of their costs tied up in three areas (food, labor, and rent). At the end of the day, it’s who controls these core costs the best that ultimately wins ‘the game’.

Outside of delivering memorable experiences, marketing, and customer service; developing systems to monitor quality, portions, and value in your food, drink, and entertainment options will help control your food and rent costs, while also developing repeat customers – resulting in consistent revenue, operating capital, profit margins, and engaged staff.

But what about labor costs? How can you lower them? The same way – through control!

This is the mindset you and your team need to have to be successful; every minute, every hour, and every day throughout the year.

Here are some tips to help you get started.

Refine Your Hiring Process

Ensure you have created a value, vision, mission, and culture statement first, to ensure you’re hiring team members that match the values and characteristics your concept needs to be successful.

At the end of the day, ‘values beat experiences when experience doesn’t work hard’. Hiring the right candidates from the start will immediately lower your long-term labor costs.

Balance Staff

Take into consideration (and be careful of) how many full-time versus part-time employees you have that are guaranteed a set amount of hours each and every week.

Ensure you’re leaving the flexibility of given hours in your control, not theirs, even though offering full-time positions may be more attractive during recruitment. With detailed forecasts and budgeting, you can strike the right balance.

Maintain Training Programs

Proper training programs are the backbone to the success of controlling labor costs. Make sure there is an advanced system in place and that it is being executed in a consistent manner within your establishment – by all team members.

There must be transparency and accountability within the program, with a set amount of time allocated for each training session in addition to a set criteria of goals for each new hire to achieve.

Training should also not stop after the first few shifts. A winning training program is one that constantly teaches and cross-trains staff months and years after hiring.

In summary, invest in your staff and they will invest in you.

Monitor Reports

It is imperative that an owner/operator reviews productivity reports each week and avoids overtime pay at all costs.

When creating staff schedules, it is ideal to create them based on current sales reports plus week-over-week and year-over-year trends. Equally, when reviewing sign-in and sign-out reports, ensure that staff members are not abusing the clock, by signing in too early for each shift (for example).

At the end of the day, adequate control starts with the owner/operator and there is plenty of affordable technology such as ‘7Shifts’ that can assist you along the way.

Have Proper HR Processes

Human resource management is much more than just the hiring and dismissal process.

A successful restaurant will have processes in place that not only engage, but reward staff for achieving growth milestones.

Ensure you have a transparent growth and pay scale strategy for each position, in addition to one-on-one quarterly meetings, that will keep individuals working towards a SMART personal goal at your establishment.

Create Experiences

Experiences shouldn’t stop at customers. A restaurant needs to make the job more than ‘just a paycheck’ for employees. What experiences can you deliver to your team that will make them excited to come to work every day and speak positively about the restaurant, with their friends and within the community?

If you take the opposite approach and begin by simply ‘cutting costs’ by offering low wages and fewer hours, there is no other way to say it – you will become a failing statistic within the industry.

When you look at it from a cost-cutting point of view, you will eventually run into less cash-flow. This will then result in late vendor payments, poor food/drink/entertainment quality, fewer guests, and negative staff, which will then lead to turnover costs, poor customer reviews, and an operator who makes irrational business decisions.

With the right mindset and programs, you can, and will, control labor costs along with your other key performance indicators.

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Executing Your Rock-Solid Restaurant Soft Opening

Executing Your Rock-Solid Restaurant Soft Opening

Originally Posted on FoodableTV – By Doug Radkey 07/26/2016

Planning, execution, consistency, adjustments, training, and timing. These are all keywords you will hear during the start-up phase of your new restaurant.

There is no better way to test your restaurant or bar on these keywords prior to “officially” opening other than what is called a “soft opening.”

What is a soft opening? It is a series of fully operational shifts over the course of 1-2 weeks prior to ‘officially’ opening, in which only pre-selected guests can enjoy your new establishment. Soft openings are essential for many reasons and need to be viewed as an integral part of your start-up strategy.

It is an opportunity to review the fine details of your service standards, communication systems, and point-of-sale systems – along with your food & beverage timing and presentation standards (expediting).

A soft opening also gives you an opportunity to review lighting, sound, signage, and any possible confusion within your menu. It gives you an opportunity to make adjustments before it truly counts.

Skipping this stage is setting yourself, your staff, your suppliers, and your investors up for failure. Imagine adjusting the above after you’ve opened and after customers have left poor reviews? Here are some tips to consider for your soft opening to make it, and your restaurant, a success!

Goals.

As with anything you do in business, it’s best to have a predetermined set of goals. What do you want to achieve with your soft opening? For example, how many hours of practice do you want your service staff to accumulate, how many platings do you want your kitchen staff to prepare, or which stations may need the most attention before you open to the general public?

Remember that this is all about training, adjusting, and monitoring the systems you should have put in place.

Pro Tip: Create a soft opening checklist with a scoring chart and then go over these benchmarks with your management team and front-line employees. Communication is essential to ensure you’re all working towards the same set of goals.

Budget.

Ensure you have developed a budget for a soft opening in your start-up expenses. Spending money here will save spending double to triple the costs after you’ve opened in needing to fix potential mistakes. Consider food and beverage costs, staff costs, special invite costs, and/or special giveaways for your invited guests.

Pro Tip: Work with community partners and suppliers to receive samples and to reduce your soft opening costs. They are often willing to assist you because they want to build a long-term relationship with you and your restaurant.

Menu. 

There are a couple of ways to look at this. You could offer limited items to test on certain days of the soft opening, or you can offer your full menu each of the days. It also depends on the size of your menu. However, let’s hope you’re already following the need for smaller, more compact menus.

Pro Tip: It’s best to offer your full menu. This is what you will be offering your customers once you open, so get the practice now for service, timing, and point-of-sale use.

Pricing.

There is no winning price-point formula for soft openings, but generally, your food options and non-alcohol related beverages should be at least 50 percent off or free, and alcohol related beverages should be full price (which may be a requirement by law, depending on your region).

Pro Tip: If properly planned & budgeted for, offer your food menu for free. In return, ask guests to leave a donation to a pre-selected charity ‘to pay’ for their meal. Then during your grand opening week, present the local charity with a cheque. This creates an immediate community relationship plus an opportunity for free media exposure!

Guests. 

Consider privately inviting your close friends and family, plus any of your employees’ immediate family members and others who have helped you through this journey, for the first 1-2 soft opening shifts. They will be the least hard on you if there are early-stage mistakes. You should also consider inviting any contractors, suppliers, city officials, and public service workers throughout your soft opening period. It’s best to have a day off in between each shift to remedy any mistakes and allow for proper preparation.

Pro Tip: You want to slowly increase the number of invites. For example, if you have a 60-seat restaurant, on the first night, host 20 guests over two hours. The next night, 30 over three hours, and the next night, 50 over two hours. Gradually build it up to ease your service staff and kitchen into it. By the final night, your team should be prepared to consistently deliver a full house.

Team Meetings.

Before each soft opening shift, brief your staff on the specifics of what you’re looking for that shift, what they should work on, and the goals for the shift. After each soft opening shift, debrief with your staff and go through the checklist scores, plus any customer reviews from that shift.

Pro Tip: Engage with your staff; ask them what challenges and successes they each endured! They will offer a different point of view from that of yourself and your invited guests.

Bonus Pro Tips: Ensure all guests receive a way to leave feedback for you, whether through a comment card or special website link. Make adjustments as you see fit during the off days in between soft opening shifts. Try to deter guests from leaving social media reviews. (Unless of course, it’s 100% positive.) 

Lastly, have a social media-only night near the end of your soft opening period for a select number of guests, such as a contest through your Facebook page. This will help generate online buzz prior to officially opening.

Following these steps and maximizing these pro-tips will undoubtedly ensure you have a rock-solid soft opening that will leave your restaurant prepared for opening day and the many days after. Remember, you don’t get a second chance for a first impression. Make it count!

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