Customer journey | KRG Hospitality

May 10, 2023by David Klemt David Klemt No Comments

Ovation Reveals 5 Secrets for Growth

Ovation Reveals 5 Secrets for Growth

by David Klemt

Restaurant guest feedback platform Ovation CEO Zack Oates reveals five secrets to what he calls the “digital table touch.”

The company touts itself as the number-one guest feedback platform. Ease of use is one reason the Ovation is viewed so favorably. Guests receive a two-question survey via SMS. Operators receive honest feedback they can use to improve guest retention and loyalty.

Those curious in learning more about the platform can check out several case studies on the Ovation website. Odds are, one of these studies matches closely with an operator’s own business.

For the purposes of this article, I’m going to focus on Oates’ 2023 Bar & Restaurant Expo education session. Getting even more granular, I’m going to drill down to Oates’ digital table touch approach to guest feedback and retention.

If Oates’ startling claim about first-time guests is true, guest retention is even more difficult than many operators would think. According to Oates, 70 percent of first-time guests don’t return to a restaurant. That number is, simply put, too damn high. Fifty percent is too high.

Feedback Reality

Let’s be honest about in-person feedback. While there are some honest guests out there, for some reason people tend to leave without being honest during their visits. In the moment, most of us will say “great” or “very good” when asked by a server or manager about our restaurant experience.

This is a compelling phenomenon. Per Oates, 15 percent of dine-in orders have issues. And yet most guests won’t say about an issue during their visit. That rate doubles to 30 percent for delivery orders, by the way.

Being totally transparent, Oates says he behaves the same in restaurants. He’s the CEO of a restaurant feedback platform and he’ll still say everything is fine during a visit even when it isn’t. So, while physical table touches are important, they’re likely not giving an operator an accurate picture of what’s going on in their dining room.

In fact, Oates says rather bluntly that “table touches are out of touch.” Further, they’re not scalable, off-premises, honest, or capable of fixing root issues, in his opinion.

Likewise, long-form surveys. According to Oates, long feedback surveys have an abysmal take rate: 0.01 percent. At that point, the rate may as well be zero. Online reviews, as may operators likely know, don’t really represent most guests.

The best solution to secure honest, actionable feedback appears to be Ovation’s SMS-based process.

Secret #1: Make Measurement Frictionless

Hot take: The easier a thing is to do, the more people will participate.

So, operators who want collect valuable guest feedback need to make it simple. If a guest orders delivery, operators should stuff carryout bags and top boxes with a call to action. For in-person dining, they should add a feedback CTA to table toppers. QR codes can make the process very easy. CTAs need to be visible and simple to complete.

The winning formula seems to be a two-question survey and collecting guest data. So, operators should consider enrolling guests who participate and leave feedback in a $100 gift card draw (or something similar).

Secret #2: Drive 5-star Reviews

Oates says that operators should push guests to rate their experiences on review sites. Doing so not only results in collecting valuable feedback, it can boost reviews and increase a restaurant’s visibility. The more discoverable a restaurant is, the more traffic it can potentially see.

Also, a note on actual five-star reviews: that’s not the best score. People tend to distrust perfect scores and one-star reviews. Per Oates, the best score is 4.7 stars, and operators should aim for at least a 4.0.

Secret #3: Respond to Feedback

This means good and bad feedback, and in a timely manner. Per Oates, one bad review reaches 30 potential guests. So, it’s best to address the situation as quickly as possible—if an operator can do so without losing their cool.

To ensure that emotions don’t prevail over rational responses, follow the Three Cs of Bad Review Recovery:

Collected.
Compassionate.
Call to action.

Remember, people want to feel important. When they leave a bad review the underlying feeling driving the review is likely a sense that they’ve been disrespected. Operators attempting to recover from a bad review need to make the reviewer feel acknowledged and important.

Secret #4: Discover and Act on Trends

A business term that has been making the rounds for years now is “kaizen.” This is the concept of everyone in an organization working toward making incremental improvements to the business.

Savvy operators will set aside their egos, find trends within the feedback they receive, and work to improve on any shortcomings.

Secret #5: Text Guests to Bring Them Back

As I’ve said before, if you really want to meet guests where they are, reach them on the phones in their pockets. However, Oates has more advice than simply, “Text them surveys.”

To boost participation, tempt guests with an offer. Oates says to make the offer a good one. So, operators should consider the following:

Come up with an offer and put it first.
Make it a good offer: “The first X amount of people to complete this survey will receive 15 percent off their next visit.”
Track participation via a link.

While operators can leverage each of the above secrets on their own, Ovation’s digital table touch process is seamless and easy to implement. Either way, collecting honest guest feedback and acting on it is one of the most effective methods for improving guest retention.

Image: Jon Tyson on Unsplash

April 18, 2023by David Klemt David Klemt No Comments

Sticking to Your Standards

The Importance of Sticking to Your Standards

by David Klemt

One crucial task for all restaurant, bar, nightclub, and hotel operators is to set the acceptable standards and commit to maintaining them.

Hospitality operations are subject to an interesting paradox. We’re all told to prepare for things to go sideways during any given shift. We’re also told that adhering to our standards of service will help us weather a storm of challenges. Oftentimes, however, the first thing to slip at the first sign of trouble is: our standards.

When a client signs on with KRG Hospitality, they are given the task of identifying their core values. There’s an exercise for this key development step; it’s part of our standards.

Your core values inform your standards (and so much more): leadership team standards; front- and back-of-house team member standards; and standards of service. Additionally, you should spell out these standards during the onboarding process, utilizing an employee manual—which new hires must sign and date—and practical training.

It’s absolutely crucial that you and your team commit to your standards fully. They’re inviolable, what both KRG president Doug Radkey and Chef Brian Duffy call your “non-negotiables” during speaking engagements and when working with clients.

Are people going to make mistakes, including you? Yes. On occasion, a standard is going to slip. The key is understanding that maintaining standards helps reduce these occasions; panicking and allowing them to slip just drops us deeper into quicksand.

Someone on the team is going to miss a service step. Something will occur during a shift that’s not up to standards. What’s important in those moments is the ability for the team to recognize the slip quickly and correct course immediately.

Setting Standards

There are different ways for operators to select their standards. The example I provide at the top of this article is one approach KRG implements.

Michael Tipps, co-founder of Invictus Hospitality and friend of KRG Hospitality, has an intriguing approach of his own. He shared this during the 2023 Bar & Restaurant Expo in Las Vegas.

“Standards separate operators and their teams,” says Tipps. While he doesn’t encourage operators to look at every other operator in their market as competition, he does advocate for differentiation.

Tipps shared a three-step approach to standards. (Step two, by the way, is the one I find intriguing.)

Create your standards. Again, there are different approaches.
Pick your committee. I’m going to explain this further.
Set standards against the grandest vision of your venue.

So, what does it mean to “pick your committee”? Well, it means surrounding yourself with people you respect…real or imagined. As Tipps explained during BRE, he has people in his life that he considers his committee. The real-life members of this committee are a sounding board for any number of ideas, questions, challenges, and even mistakes.

And yes, his committee also includes “imaginary” members, such as Michael Jordan and Phil Jackson. These are people that he doesn’t know personally but are known to have incredibly high standards. They’re high achievers and, of course, many have biographies and we can know their standards. Tipps has “asked” these committee members, “How should I handle X?”

This creative approach isn’t for everyone but every operator should at least give it a shot. When we step that far out of our comfort zones the results can be incredible.

The Cheat Code

On the specific topic of service standards, Tipps has a cheat code for operators: hotels. “The hotel mindset is a hospitality cheat code,” says Tipps.

How so? It’s quite enlightening.

Think about your restaurant. Now, think about it as the first-floor cornerstone of an upscale hotel. Imagine that there are 250 incredible boutique hotel rooms above your restaurant. These rooms command rates of several hundred dollars per night. Now think about how you would treat each guest in these expensive rooms if they ask for a straw.

“Make the effort to care like nobody else can,” says Tipps.

Always bear in mind that hospitality is how you make people feel. Your mission should be for each and every guest to feel relevant.

Generally speaking, most people don’t want to be alone. They’re not just coming to your restaurant because they’re hungry, to your bar because they’re thirsty. In reality, as Tipps would tell you, they’re coming to be around other people. They’re using your F&B as a reason to be around other people and feel relevant.

Your mission is to ensure people feel relevant when they spend time at your venue with your team. The package you send to accomplish this mission is your standards of service.

“Self-inflicted mediocrity is the result of laziness and lack of accountability,” Tipps says.

Hold everyone accountable for enforcing your standards—including yourself—and you’ll level up in every facet.

Image: Owen Michael Grech on Unsplash

March 22, 2023by David Klemt David Klemt No Comments

Spring Clean Your Business!

7 Ways to Give Your Business a Spring Cleaning!

by Kim Richardson & David Klemt

In case you’re so busy you didn’t catch it, we’re officially—finally—in spring, and that means it’s time to spring clean your business.

Below you’ll find a spring cleaning slideshow with helpful advice from KRG Hospitality consultant Kim Richardson.

Each slide contains her best advice for reviewing, refreshing, and improving your business. For your convenience, Kim organizes her spring cleaning advice in just seven slides.

It’s time to look at your business through fresh, energized eyes! Your team, guests, and bottom line will thank you.

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Note: Unable to view the slides above? Each slide is transcribed below.

1 Re-plant Your Core Values

Review your core values with your team.
Post them where everyone can see them daily.
Foster core values through consistent training.
What kind of experiences are you offering your team?
Hire a coach to help you discover your core values.

2 Tidy up Your Guest Journey Map

Walk through your business from the guest perspective.
Review your website for content, ease of use, current info.
Review your technology and potential pain-points.
Touch up items that may have become run down: paint, signage, furniture, equipment, etc.
Review your flow of service and communication.

3 Spruce up Your SOP & Training Programs

Evaluate how well current SOPs are being followed.
Evaluate how well you continuously train your team.
Make updates as needed and add any new procedures.
Ensure SOPs are easily accessible by your team.
Discuss your standards during pre-shift meetings.

4 Deep Clean Your Financial Books

Review your budgets and projections for the year ahead.
Review and organize the financials tracking processes; receipts, invoices, files, etc. and digitize what you can.
Consider updating your financial tracking technology or bringing in a third party to assist.

5 Dust off Your Business Plan

Evaluate the progress of your business plan.
Acknowledge what you have accomplished.
Are you on track to achieve your goals this year?
Do all of your goals still make sense?
Make any necessary updates and create a game plan to stay on track; review every 30 days.

6 Freshen up Your Marketing Plan

Budget time and money to dedicate towards marketing for the next 90 days.
Create strategic campaigns that will create awareness, build a database, and retain your targeted customers.
Consider working with a third party or having someone dedicated to this role internally.

7 Declutter Your Mind

Perform a calendar audit.
Review goals and formulate action plans.
Practice mindfulness through journaling or meditation.
Consider hiring a mindset coach to help you organize your life and your business.

Image: PAN XIAOZHEN on Unsplash / Slideshow Images: Kim Richardson / KRG Hospitality

December 17, 2021by David Klemt David Klemt No Comments

What Does Omni-channel Mean?

What Does Omni-channel Mean in Hospitality?

by David Klemt

Buzzword or professional jargon, the term “omni-channel” seems to come up more often as our industry embraces more innovations.

As more social and digital platforms (channels) pop up, your job as marketer becomes more complex.

For a pessimistic take, your marketing efforts are like a ship. Every new marketing channel that gains traction is like a hole you have to plug. Fail to do so and you risk your marketing ship sinking.

Now for an optimistic take. Every channel you can add to your marketing is an opportunity to grow your reach. Increasing the amount of people who become familiar with your brand represents the potential to grow loyalty and sales.

If you want to meet your guests where they are—and you should—you need to have a presence where they are to engage with them.

And that’s just marketing. There are also omni-channel operational tactics you can implement. Unsurprisingly, you’ll likely realize many of those solutions are also digital.

So, what does “omni-channel” mean for operators? It means offering seamless guest experiences pre-, per- and post-visit.

Staying top of mind is also an element of an omni-channel strategy.

Traditional Channels

In terms of marketing, let’s break down the different types of channels available to operators.

A simple way to look at “traditional” marketing channels is that they don’t leverage digital mediums:

Newspaper and magazine ads
Radio and television ads
Direct mail
Billboards
Vehicle wraps
Flyers

Now, some of the above may seem outdated. However, those channels still have reach.

The key is knowing your brand and audience to know if a traditional channel will deliver an ROI. You also need to take the time to figure out where your dollars and time are best spent.

Digital Channels

So, there’s a reason I put the word traditional in quotation marks in the previous section.

There may be a time when digital channels become so ubiquitous that they’re considered traditional.

Just look at the digital channels below and consider how commonplace they’ve become:

Social media
Email marketing
Company websites
Search engine marketing
Newsletters
Text messages

It’s easy to see how one day the channels above will overtake their non-digital counterparts and become the traditional way we market.

The reasons for this are obvious. Digital campaigns are easily measurable, they allow for incredibly specific targeting, and they tend to be more engaging.

Really, the biggest cons that pertain to digital marketing channels are: being viewed as annoying/intrusive; being lost in the sea of ads people encounter every day.

On the execution side, it can still be overwhelming to engage just in social media marketing. However, there are platforms that can help make this task less daunting.

Other Channels

Like I wrote earlier, omni-channel doesn’t only pertain to marketing.

Of course, the term and practice are most often associated with marketing. However, operators have more to think about to truly become omni-channel.

The way your guests interact with your restaurant are also channels. Your front-of-house staff is a channel, technically speaking.

Now, we all know that the pandemic forced operational changes. Many of those changes are here to stay.

So, let’s look at a potential guest journey:

The potential guest receives a promotional offer via email.
They follow the link to an online reservation platform.
After arriving at the restaurant with their party, they check in with the host in person.
The server greets the party, some of whom request a physical menu. Others in the party pull out their phones and access the menu via QR code.
Throughout the meal, the server touches the table to ensure the visit is going well, refill drinks, take additional drink orders, etc.
When it’s time to pay, the party quietly does so via a touchless option and leaves.
A follow-up email is sent for feedback.
After a number of days, a text message is sent out to encourage another visit.

The marketing channels are just one element that makes the hypothetical restaurant an omni-channel operation. Providing digital, touchless menu access and payment are also omni-channel elements.

Those are just a few examples. If you take the time to review your operations; where you can reach new and repeat guests; threats such as third-party delivery; and innovations you can implement, you’ll see where you can make changes to become an omni-channel restaurant.

Image: Dan Gold on Unsplash

June 14, 2021by David Klemt David Klemt No Comments

Guest Journey: Acquire, Engage, Retain

Guest Journey: Acquire, Engage, Retain

by David Klemt

What if you could change your operational mindset for the better in the time it takes to enjoy a cup of coffee?

SevenRooms is confident they can help you do exactly that.

The SevenRooms Coffee Break series tackles one important operational element per 20-minute webinar.

Time for a Coffee Break?

It’s no secret that we’re fans of SevenRooms here at KRG Hospitality. In addition to supporting the actual platform, we’re always eager to share their data-driven reports and insights.

CEO Joel Montaniel is the guest on episode 24 of our Bar Hacks podcast. (You can—and should—listen to the episode on Spotify, Apple Podcasts, or wherever you listen to podcasts.)

Given how much SevenRooms values collecting and sharing data that can improve operations industry-wide, it’s not a surprise that they also offer informative webinars.

So far, there are three webinars in the Coffee Break series. And, of course, each shares a way that operators can improve their business.

That’s certainly welcome as we emerge from stay-at-home orders, ease restrictions, and welcome more guests.

The current entries focus on what SevenRooms is dubbing the Restaurant Renaissance. As Doug Radkey, president of KRG Hospitality says, we can take two paths leading to the post-pandemic world.

One, we can recognize that the industry needs an overhaul, making improvements for operators, workers and guests.

Two, we can learn nothing, do nothing, and watch the industry collapse.

Restaurant Renaissance

Call it what you prefer: the Restaurant Renaissance. The New Roaring Twenties. Re-emergence. The New Normal. The Post-pandemic World.

Sure, it’s cool to have a catchy label to slap onto unique eras. It’s better to have a clear plan and path for moving forward.

To that end, SevenRooms identifies four key factors driving what they’re calling the Restaurant Renaissance:

Vaccines
Warmer weather
Pent-up consumer demand
Restrictions lifting

Alexa Detzi, director of Enterprise Success at SevenRooms, addresses these elements in the first Coffee Break webinar, “Acquire.”

We’ve said many times that operators need to prepare for an explosion in consumer demand and guest traffic. In addition, we’ve made it clear that we’ll most likely experience a severe drop-off in traffic after the initial demand wanes.

Of course, there are several ways things might play out in the New Normal. However, huge traffic in many markets followed by a drop makes the most sense.

Get Ready

The first three SevenRooms Coffee Break webinars focus on the guest journey:

I highly recommend signing up and watching each webinar, sooner rather than later. Guests are already being subjected to a cacophony of marketing overtures—you need to cut through the noise.

We Want to Help You

Like SevenRooms, KRG Hospitality is dedicated to helping operators.

If you’re seeking to open a new business, whether your first venue or an expansion, should also download our 2021 Restaurant Start-up Cost Guide & Checklist.

And for operators looking more direct and guided assistance for improving your business, we also offer KRG Mindset.

Next time you have 15 or 20 minutes to yourself, check out our Solutions and Resources pages, reach out, and let’s set up your Roadmap to Success.

Image: Garrhet Sampson on Unsplash