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Guest | KRG Hospitality

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by David Klemt David Klemt No Comments

The Fourth Member of Your Team

The Fourth Member of Your Team

by David Klemt

Black puzzle piece slotting into illuminated puzzle

When looking at your organization, it’s crucial to realize ownership, leadership, and staff aren’t the only members of the team.

There’s another key member, and their input is among the most valuable. And you rely on them for the success of your business. They’re your guests.

It may seem painfully obvious that your guests are integral to the success of your business. After all, your registers won’t ring without guests coming through your doors, placing orders online or via phone, and spending their money at your venue.

When they become regularsparticularly vocal regulars who tell others about your great businessthey transform into unofficial brand ambassadors. That’s fantastic marketing that tends to cost you nothing.

However, their importance goes beyond the monetary. Further, it’s more than just free marketing.

Menu Streamlining

Do your guests provide you with feedback? Actually, scratch that; let’s start again.

Do you provide your guests with a simple, convenient way to give you feedback? And do you seek more than a thumbs up or thumbs down for their experience at your restaurant or bar?

It can be difficult to streamline your menu, particularly if you’re unable to look at every item objectively. There are operators and chefs out there who get attached to their personal favorite menu items. That’s fine, until it’s not.

Perhaps a dish took a long time and a lot of work to get just right. Maybe it was a family thing and you’re proud of it.

But if you’re too proud of it and it’s not selling, it’s just costing you money. Keeping it on the menu hoping it will become a hit is bad for business.

A while back, when Bar & Restaurant Expo was Nightclub & Bar, Chef Brian Duffy shared a simple method for streamlining a menu. You run a product mix report, then separate them into three categories: rock stars, solid performers, and dogs.

The former are your top-selling items, and the middle category perform consistently. But the latter…they don’t sell. Worse, if they require ingredients that you don’t cross-utilize to make other dishes or drinks, they aren’t just stagnant, they’re costing you money.

If an item isn’t selling, that’s your gueststhe fourth member of your team—letting you know they don’t want it. Removing such items is an easy way to begin the streamlining process. Some of the best bars and restaurants in the world audit their highly anticipated menu launches a few months after their release. Items that aren’t selling are refreshed or removed.

So, when you encourage your guests to give your feedback, ask them what they think about your menu. Also, ask your staff what guests are telling them about your food and drink.

Your Vision

If you’re anything like our clients (or you are one of our clients), you’ve spent a ton of time envisioning your perfect restaurant, bar, cafe, eatertainment concept, nightclub, or hotel.

With that comes a hypothetical but informed vision of the guest journey. You’ll have an idea of how your guests will use your space.

Well, what if your guests turn that idea on its head? How will you react if guests see your vision in a different way?

On today’s episode of the Bar Hacks podcast, guest James Grant says something that I have also been saying for quite some time: like me, he sees guests as an integral member of the team. They do, to a degree, have influence over your concept.

To paraphrase, Grant says guests are half of the reason people open and operate restaurants, bars, cafes, nightclubs, hotels, etc.

As an example, we have a client who saw their space a certain way. We helped develop their bar concept with their vision in mind. However, not long after opening, our client’s guests showed that they had a different perception of the bar. Our client adapted, and the bar team and guests are happy.

The brand didn’t change. Neither did the space, physically. Nor did the cocktail program. However, one key element did change, as far as the type of bar it was intended to be.

As another example, friends of mine opened a bar years back. The space was meant to be an upscale cocktail bar with a relaxed and sophisticated vibe. That vision was achieved, but influential guests added an element: the bar became a high-energy after-hours spot.

At first, my friends weren’t sure about this change or if they should encourage it. But when they saw that revenue and profits were up, well…sometimes change is a good thing.

Adaptation

You may be very proud of items you have on your menu. Along those lines, you may have a very specific vision for your F&B programs that tell the story of your brand and space.

If an item here or there doesn’t catch on, it doesn’t make you a failure. It can be disappointing if your personal favorite turns out to be a dud with guests; don’t take it personally. It’s just business. The items on your menu should earn money, not lose it.

And if a guest reads through your highly curated cocktail, beer, or wine menu and then orders something “basic,” that shouldn’t be seen as a personal affront.

Now, guests deciding your concept is something you never intended it to be is something else. If this happens, it requires looking at the experience, service, brand storytelling, and even the design with a critical eye.

That said, if none of that is “off,” and if your team is happy and profits go up because your guests see your business in a different way, it may be smart to adapt. This is particularly true if your team is making more money and the unexpected new direction is safe.

Operators have usually been creating their concepts in their minds for years. It can be a shock for guests to transform the business into something else.

But if the business is successful because of how guests decide to use it, is that a bad thing?

Only you can answer that question. It may be best for you to identify the “why” behind the possible concept disconnect and stamp it out. However, it may be best to lean into the unexpected new direction.

Image: Edge2Edge Media on Unsplash

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by David Klemt David Klemt No Comments

Why Communication and Empowerment Matter

Why Communication and Empowerment Matter

by David Klemt

Employees at front desk in hotel lobby

To truly embody the spirit of hospitality, internal communication and empowering staff must be part of your operation’s culture.

A situation KRG Hospitality president Doug Radkey found himself in recently could have been resolved quickly and smoothly.

However, it’s clear the staff lacked communication from the top. Nor did they have the ability to solve problems as they arose.

Let’s dive in.

Guest Experience

First, I’m not going to reveal where this incident took place. In fact, I’m not even going to provide the location.

Second, the problem arose at the front desk of a hotel. A well-staffed front desk—there were four team members working.

The issue was fairly minor but impacted the guest experience.

So, Doug and Jennifer Radkey booked a hotel over the weekend. They made their decision in part because of an available package. Among the perks of the package was a $50 gift card for a nearby restaurant.

Stopping by the desk on the way up to their room, Doug asked for the gift card. The desk clerk he asked had no idea what he was talking about.

In fact, none of the four front desk clerks knew about the promotion. Doug pulled up the hotel’s website and promotion on his phone, and showed the clerks.

Doing so jogged one clerk’s memory. However, details were still mostly unknown. There was no manager on duty and the staff searched through drawers looking for the restaurant gift cards.

After about ten minutes of searching, Doug said he and Jennifer were headed up to their room to get ready for dinner. They’d be down in an hour for the card (hopefully).

A Resolution, Kind Of

True to their word, Doug and Jennifer returned to the front desk for the gift card.

Miraculously, the front desk clerks had found one. (However, Doug thinks one of the team members ran over to the restaurant, bought a card, and brought it back to the hotel.)

One more note: A housekeeping team member had overheard the incident at the front desk as it was unraveling. She chimed in to suggest the front desk just knock $50 off the hotel stay or give Doug and Jennifer $50 cash to take to dinner.

Instead, as I just explained, the front desk clerks got their hands on a gift card.

But let’s look at what wrong here:

  • The guest encountered a service issue and waited more than ten minutes for any sort of resolution.
  • That resolution didn’t come for more than an hour.
  • It’s clear the staff received insufficient notice and details about the promotion.
  • The staff was also most likely not empowered to provide quick resolutions to guest problems.

Doug’s incident could have been resolved quickly and smoothly through communication and staff empowerment.

Communication

Clearly, communication is key for any business to operate smoothly. That’s not limited in any way to hotels or hospitality—all businesses in all industries need to value communication.

In fact, clear communication is a foundational value. Communicating clearly needs to be part of every operator’s core values and ingrained in their brand’s culture.

If there’s a promotion, if there’s a special, if there’s anything “unique” happening at a hotel, restaurant, bar, entertainment venue, etc., the staff needs to know.

Operators should email the details to staff members. Managers should share the details of a promotion or special during shift meetings. Staff should know how to enter promotions into the POS.

It’s doubtful that Doug would’ve encountered this gift card issue if clear communication was an important element of the hotel’s culture.

The front desk clerks would’ve known about it, and likely would’ve handed over the gift card upon check-in. Barring that, they would’ve known where to find the cards quickly and easily so they could’ve handed one out upon request for those guests who booked a room via the promotion.

Empowerment

There’s a second element of this particular guest experience equation: empowerment.

Had the front desk staff been empowered to correct mistakes as quickly as they may arise, it’s possible Doug would never have noticed there was an issue.

As difficult as it may be, operators and managers need to trust their staff. If that’s not happening, there are deeper issues at play that must be addressed and corrected.

If this hotel staff—remember, four clerks deep—were accustomed to adapting and resolving problems on the fly, that would’ve been evident.

This article wouldn’t exist because Doug wouldn’t have had a memorable negative guest experience to share with me.

Up to a reasonable point, guest-facing staff need to be empowered to solve problems quickly. It’s up to individual operators to decide what’s reasonable.

Upset guests don’t like encountering issues, obviously. Do you know what they really don’t like? Having to repeat themselves or watch staff flounder to reach a satisfactory resolution.

An empowered staff can assess a situation, target the problem, and resolve it without involving anyone else. And they can do so quickly and smoothly.

A Better Resolution

How could this issue have been resolved faster, accounting for the poor communication regarding the promotion? A daily or weekly “marketing fund.”

Some operators set aside an amount of cash for bartenders or other front-of-house staff to use at their discretion to solve problems. When that marketing fund is accessed, it’s reported and management can review the who, how much, and why at the end of the night.

In this case, $50 could have been handed over and accounted for with a, “I’m so sorry, we seem to be out of gift cards at the moment, this offer has been so popular,” and Doug would’ve only had a slight inkling of an issue.

Again, there were four front desk clerks present when this happened. Three didn’t know about the promotion. One clerk had a foggy idea about the promotion.

This wasn’t a staffing issue, nor was it a pandemic issue. And 19 months in, as harsh as this may seem, the pandemic can’t be the fallback excuse for every issue that comes up.

The following day, a manager learned of the incident upon Doug and Jennifer checking out the next day. He apologized and knocked $50 off their stay.

That wouldn’t have been necessary had leadership communicated about the promotion clearly. It certainly wouldn’t have been a painful incident had the staff felt empowered to make impactful guest experience decisions.

Today, commit to reviewing your operation’s communication. In all honesty, is it clear? Can it be improved? Have there been issues lately that could’ve been avoided if clear communication was part of your brand’s culture?

Once you’ve reviewed communication, as yourself if your staff feels empowered to solve guest issues quickly and reasonably. If not, that must change as soon as possible.

Image: Rodrigo Salomón Cañas from Pixabay

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