Hotel management

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Hospitality Mindset: Restaurant Edition

Hospitality Mindset: Restaurant Edition

by Jennifer Radkey

Chef in commercial kitchen handling a pan on fire

Have you ever wondered why you just can’t seem to get ahead regardless of what you do, or why you appear to be developing a negative team culture?

Maybe you wake up with a sense of dread or anxiety about what lies ahead of you each day, or maybe no matter how hard you try and how much money you pour into your restaurant it never seems to be enough to get you where you want to be.

The cause of these problems may stem from your—and your team’s—mindset.

But what is mindset exactly?

Simply stated, mindset is an individual’s usual attitude or mental state. It reflects someone’s way of thinking and motivates their actions. So, why is it important to be aware of your mindset?

Well, if your mindset dictates how you show up in your life each and every day, then it will influence all parts of your life. Your thoughts about yourself, others, your business, your opportunities, and your challenges are all influenced by your mindset.

Your mindset can either hinder or promote your overall well-being and success in life.

The good news about mindset is that you can change it – if you want to. It can also be contagious—in a positive way.

These facts led me to question if the different sectors of the hospitality industry face unique mindset challenges and what can be done to overcome them.

To find answers and gain further insight I decided to turn to our team at KRG Hospitality for their thoughts. In turn, I’ve written a series of hospitality mindset articles, including one for bar operators and one for hotel operators.

In this article I’ll explore the restaurant industry, with thoughts from chef consultant Nathen Dubé.

Let’s dive in!

The Restaurant Industry

The restaurant industry is massive, employing 12.5 million in the US and 1.2 million in Canada.

Ranging from quick service to fine dining and offering every type of cuisine imaginable, the industry is a staple in any community. And while many enjoy being guests at these establishments, the same can’t always be said for working in them.

The restaurant industry faces constant challenges, ranging from mental health issues to labor shortages and rising costs.

So, what makes a restaurant succeed despite these challenges? While there are many ingredients involved in running a successful restaurant, arguably one of the most important is a strong operator.

Successful Operators

Operating a successful restaurant takes a certain mindset. You need to be organized, open-minded to growth strategies, resilient, and responsive to the needs of your team.

Interested in what makes a restaurant operator stand out, I asked Nathen what contributes to operator success:

“The key strength for a restaurant owner, first and foremost, is resiliency. You need to stay even keeled during the good and bad times. Things will fluctuate between busy and slow. You will experience great staff, not-so-great staff, shortages, bad reviews, good reviews, equipment breaking, orders delivered late, plumbing issues, electrical issues… The list goes on and on.

“But at the end of the day, when you say you’re open at noon or 5:00 PM or whichever, you better be ready on time, every time. That can give the strongest characters stress and anxiety over the long term. I think being resilient and able to do what is in your control and let go of the rest will help an owner maintain one’s sanity.

“The second strength needed is empathy. Without empathy for your staff, your customers, the many other people in the food and alcohol chain, the risk of becoming a tyrant no one wants to work for or associate with is real, and I’ve seen it happen. Your staff are people too, who have doctor’s appointments, family gatherings, and trouble at home. Some may suffer from addiction and mental illness, and some live in borderline poverty, which is a truly sad reality for many hospitality workers.

“The third characteristic is good business sense. As much as restaurants and bars are about hospitality, engaging customers, and providing great service, if you can’t run a business properly, that is all for naught. Money management, accounting, marketing, the whole lot is important to your success and longevity.”

Operator Challenges

Operators need a positive, strategic, growth mindset to be successful in the restaurant industry. Maintaining this kind of mindset takes self-awareness and consistent cultivating. There will be challenges every day that will test you and if you aren’t checking in with your thought patterns, it can be easy to fall into a negative mindset.

When asked what specific challenges hotel operators face that may affect their mindset, Nathen shared some insights.

Financial Risk

Opening and operating a restaurant comes with inherent financial risks. Sometimes it may feel as if more money is going out than coming in.

“When dealing with perishable food items in a time-sensitive environment, there will be plenty of challenges,” says Nathen. “Some are temporary, some are constant, and some are one-offs, but they all need careful attention. There is obvious financial risk and stress that comes with that. Labor costs, food, and alcohol are the main culprits of financial strain for the back of house. The kitchen setup costs (equipment, construction, etc.) are also in this category. Money can be a great source of stress for anyone, and more so for those who are risk averse.”

The Human Element: Guests

As a restaurant operator you rely on guests. Your efforts are almost always focused on how you can get more guests through the door and how you can get them to return.

Besides the stress of keeping them happy, sharing, and returning, guests can create another level of stress.

“Dealing with customer feedback can affect well-being,” Nathen says. “Not everyone who comes into your establishment will love everything. There will be complaints, there will be disagreements, poor online reviews, and there will be outright rude guests. This causes stress to staff, as well as the owner’s state of mind. Keeping staff motivated, calm, and on the same page when dealing with these guests and reviews is a lot of emotional work. It takes a strong-willed individual to let it roll off their back while still learning from it.”

The Human Element: Staff

Without your team there would be no restaurant. Your team is key to your success and can also be a cause of stress to your overall well-being.

“Issues can and will arise in dealing with the human element of labor,” explains Nathen. “Concern and care for staff is a full-time job in itself, and that’s in a best-case scenario. In a worst-case scenario you can experience shortages, theft, drama, and the like that will need to be dealt with or it can drag down a good establishment and create an exodus of good staff. Not to create a bleak picture, but management can take a toll.”

Employee Challenges

Your team experiences their own unique set of challenges that can affect their well-being and mindset as well. Being aware of these challenges is important if you are hoping to create a culture of respect, collaboration, and trust.

When asked what specific challenges restaurant staff face, Nathen had some insights:

“It’s well documented that working in a professional kitchen is difficult work when things go perfectly well. Long hours standing, hot kitchens, short time constraints, and difficult customers can be draining on a person. Mix in stress, poor health habits, and skipped meals, you get the perfect recipe for very hard work. Managing stress and employee wellness within the kitchen team is important to an overall successful business. Not paying attention or implementing ways to help will lead to a difficulty hiring and retaining staff.”

A Living Wage and Safe Environment

The restaurant industry has faced criticism for low pay, unsafe working environments, and an unsupportive culture.

While this is not the case in all establishments, it occurs enough in the industry to make potential employees wary.

“Pay in the industry is notoriously low for entry level positions,” Nathen says. “There is typically limited room to grow on the pay grade, and a lack of insurance, health, and dental care can compound the issues.

“Workplace standards including safety and culture are another common pain point for restaurants. Dirty, unsafe conditions create a dangerous work environment. It will also make it difficult to pass health inspections. Allowing a toxic culture to develop creates an environment that no good staff wants to work at. All of these issues can drain the pride from a good, well run, happy environment that employees want to stay and thrive at.”

Harmful Beliefs in the Restaurant Industry

Your belief system directly impacts your mindset. If you have negative beliefs regarding your team, your guests, or your community, it’s time to sit down and recognize where those beliefs are coming from and how to change them.

The restaurant industry has a few specific common, harmful beliefs that are prevalent in many establishments. Being aware and knowing how to acknowledge and combat these beliefs is crucial to creating a more positive work environment.

Stigma

When I asked Nathen what one of the most prevalent harmful beliefs operators have about their team, he discussed the stigma restaurant employees often face:

“Unfortunately, there is still a stigma around restaurant staff being uneducated, working in this industry only because they can’t do anything else in society. Often, they are seen as doing this job until something better comes along. Why should they invest in their staff’s well-being if they will vanish in a moment’s notice?

“The next stigma is that all workers are just lazy drunks, addicts, and thieves out for a paycheque to drink away at the bar. While there is a prevalent issue of substance abuse in the industry, it can be a tough challenge to address, and unfair if everyone is painted with the same brush.”

Selfish/Uncaring

Operators are not the only people in the industry who harbor negative or false beliefs.

Staff can do so as well. One primary negative belief is that management and/or ownership doesn’t care about them.

“In terms of ownership, kitchen staff can feel ripped off, or that they are doing all the work while the owner gets rich,” explains Nathen. “Staff will make accusations behind closed doors that they do all the work while the owner does nothing.”

To overcome negative beliefs, says Nathen, “[a]n engaged owner can eliminate the walls between staff, customers, community, and themselves. Talking to those in your business circle and including everyone squashes resentment, misunderstandings, and most complaints will be solved immediately, eliminating potentially bad situations.”

Toxic Culture

The last thing that any hospitality business needs is a toxic culture. A toxic workplace culture encourages and breeds negative mindsets on all levels.

I asked Nathen what creates toxic culture in a restaurant and he shared his thoughts and experiences:

“It starts with ownership. Defining a clear set of core values and standards in the workplace—and adhering to them from the hiring process all the way to daily operations—will dictate the type of people you hire and attract. Toxic environments can be created by just one employee. My experience with toxic kitchens was based on there being no consequences; there wasn’t even a lack of standards enforcement because there were no standards to begin with.

“Things like bullying, harassment, poor attitudes, low morale, lack of leadership, and poor working conditions—whether physical, emotional or both—are the typical causes of toxic culture. To blame is also the negative actions of others, and equally the lack of action from management. Bad eggs are left to rot and quickly poison the whole omelet, so to speak.

“Define a concept clearly, every step of the way, and then find the people to fit that vision. But also deal with problem employees immediately; there is nothing worse than losing good employees to bad ones.”

Moving Forward

Understanding the challenges that operators and staff are currently facing, and acknowledging the importance of growth mindset and the need for change, I asked Nathen what positive changes have been occurring in the industry as a whole?

“Restaurant work environments have improved over the last few decades but still have a long way to go. When I started in the mid ‘90s, belittling, yelling, and screaming—general abusive treatment of anyone and everyone—was commonplace. There was no compassion for the environment that staff worked in. The culture, the workload, pay… Literally everything was just ‘take it or leave it.’ ‘If you don’t like it, leave,’ was repeated everywhere to any staff who raised concerns.

“Over time, a stand has been made in response to a mass exodus, tales of burnout, and at the worst end of the spectrum, severe addiction, and even suicide. It was time to look from within at where the actual problems were, and what could be changed. The veil of toughness finally came down, and an honest conversation has led to slow changes.

“One of the more prevalent changes is an overall less-abusive environment. No longer is it tolerated to show anything less than human decency to staff and guests. Genuine care for staff well-being is starting to be seen almost everywhere. It’s leading to a new excitement among hospitality professionals and can hopefully attract new individuals to the field.”

Room for Improvement

Although awareness of the well-being of those working in this industry is increasing, there are still changes that need to happen.

Nathen believes that improvement lies in focusing on balance and respect:

“There is no way around the fact that cooking and serving is hard, long work, regardless of concept. This is unfortunately the entry point for all those who claim to want to change the industry or make it better. In my opinion, this is the wrong approach. Enhancing the whole experience of the employee, leadership team, and guest will make everyone happier and, hopefully, healthier.

“Balancing the workload for everyone, finding creative ways to increase pay, and offering benefits leads to a strong sense of job safety. Rotating schedules, for example: four nine-hour days; or two on, three off; or something away from the traditional 10-, 12-, or 14-hour days and five- to six-day work weeks, reduces burnout, gives employees a chance at a social and family life, and still allows everyone to earn enough income to live. Throw in benefits and some sort of bonus pay, and you will have a brand everyone wants to work for.

“Another big contributor to improving the industry—and we have made big strides already—is the respect for people and creating an environment or culture void of bullying, harassment, intimidation, and general mistreatment of the people who make this the best industry to work in.”

Final Thoughts

In a highly competitive industry facing consistent challenges and harmful beliefs, it will come down to developing and maintaining the right mindset to truly succeed both professionally and personally. It starts from the top with a positive, resilient, growth mindset.

I’ll leave you with a few last words of wisdom from Nathen:

“Hopefully, there is a sense of urgency in the fight to change the industry for the better. It’s important to recognize and praise positive contributions and not just positive people because everyone needs encouragement. It’s equally important to handle negative contributions quickly and correctly.

“A positive attitude can go a long way toward creating a strong team player who can make the best of stressful times and have a coachable attitude. A positive person can help change the culture of a workplace and pick up other teammates who may need a boost. They share their optimism and passion for the job and can make management’s life easier.

“A negative person will contribute to a toxic environment. Resentment begins to build on both sides as a negative person sees things not being done their way, contributes less to the success of the kitchen, and spreads their toxic beliefs to other employees who may start to feel similarly.

“I recently heard a saying, and I don’t recall by who so I can’t quote it, but it goes, ‘It’s important to get the right people on the bus, but it’s just as important to get them in the right seats.’”

Cheers to personal and professional well-being!

Image: Helmy Zairy on Pexels

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

by krghospitality krghospitality No Comments

5 Ways to Elevate the Hotel Experience

5 Inexpensive Ways to Elevate Your Hotel Guest Experience

by Kim Richardson

Boutique hotel room with black and white walls and linens

With all the different amenities today’s travelers are looking for, you’re not going to be able to accommodate all of them.

It’s no secret: Happy hotel guests make for happy employees and happy owners. They’re the true advertisement for our hotel and resort locations.

But as the maxim goes, you can’t make all the people happy all the time. With very exceptionsbrands that can afford to embody the money-no-object version of unreasonable hospitality—it’s not realistic to think you can satisfy every guest’s every whim.

With all the different amenities today’s travelers are looking for, you’re not going to be able to accommodate every single preference. Some of them may not be in your budget, and others may not make sense for your business.

With that in mind, here are some basic items that every hotel location can provide with little to no cost.

Get back to the basics of your business and make sure the machine is running smoothly before you worry about adding things that cost you additional money. A little goes a long way!

1 Create a seamless and friendly arrival experience.

Whether your guests spend days traveling to you or maybe just take a 10-minute car ride, it’s important that their stay starts off with a warm and welcoming experience. This sets the tone for their entire stay.

How does your staff greet them at the door and front desk? Are the details of the reservation correct? Is the room ready on time? Is the room the correct type? Do you and your team acknowledge special details and requests? More importantly, do you follow through to deliver on those requests?

People put a lot of time into planning a trip. A rocky arrival or a mishandled request can really put a damper on someone’s getaway whether it’s for business or pleasure. When they start off with a bad experience, they’re more likely to nitpick the rest of their stay.

The guest experience starts well before arrival. Don’t forget to keep in mind all the interactions they have prior to arrival: ease of reservation process, user-friendly websites, and pleasant interactions with any staff they might have.

2 Personalize the experience. Send a welcome note and acknowledge special occasions.

Sending a welcome note to a guest is a great way to personalize the experience, and I do mean personalize! Try to stay away from generic welcome letters.

Use their name in the letter. If they’re a repeat guest, use phrases such as “Welcome back.” If you see something in the reservation notes about them celebrating a special occasion, be sure to acknowledge it in the welcome note and wish them well.

Welcome notes can be sent as an email, something that is handed to them at the front desk, or a card in their room. Consider sending a small gift when you know someone is celebrating a special occasion. The gift doesn’t have to be expensive; its purpose is to make them feel noticed.

A small treat can be enough.

3 Partner with companies for amenities you are not able to provide (ex: gym, restaurants, transportation, spa/salon).

Partnering with nearby companies is a great way to add extra amenities to your hotel. This doesn’t have to be something that costs you money.

You can discuss the terms case by case with each business. They may be willing to offer a discount coupon (complimentary to you) for allowing them to put collateral in your lobby or on your website. You can also discuss trades of service.

If you’re not a full-service hotel, a discount at a nearby restaurant or cafe can go a long way. Similar to this, if you don’t have a fitness center maybe there is one nearby that is willing to offer your guests complimentary access (or for a discount). Spa/salons are also a great amenity you can feature.

If you’re not located in a walkable area (or maybe there’s a big attraction nearby that’s not walkable), consider teaming up with a transportation company that can be available to your guests.

When partnering with these nearby businesses, it’s important that they actually are nearby and accessible to your guests. We’ve all been in situations, be it a hotel or a membership, that comes with discounts, but then when you go to look at them, they’re not convenient to use. Don’t be that business.

4 Master the basics. Keep a clean property and deliver on all amenities promised.

This sounds like an obvious one, but this is often where we drop the ball as an industry.

It’s not always about being a five-star hotel and having tons of luxurious extras. Meeting guest expectations by following through on what you promised should be a given, but it’s truly not.

Regardless of the level of hotel, a clean property is important. Guests shouldn’t find dirty items from the last guest. All public spaces should be clean and stocked with any amenities you offer.

If you offer complimentary coffee in the lobby until 10:00 AM, make sure it’s really there and available until that time. Don’t put the last container out at 9:00 or 9:30 AM and stop checking on it.

I’m the guest who goes down for coffee at the last minute it’s available. I can’t tell you how many times I’ve started filling my cup and heard the trickle of the container running out. Then I’m left with going to find coffee elsewhere or hunting down a staff member to get more.

These types of experiences might not warrant a guest complaint but they do create a feeling of not getting what they pay for.

Keep your guests notified of any unexpected changes to the promised amenities. If your lobby is under renovation, your famous restaurant is closed for a private party, or the pool isn’t available, send proper notification to your guests prior to arrival. Consider offering some type of compensation as a show of good faith prior to the complaints rolling in.

Things don’t always go according to plan, and we can’t always be perfect, but you have the power to dictate whether this is a good or bad experience for your guest.

5 Provide readily available directions and info on the local area (restaurants, local attractions, tours, shopping).

No matter how hard your guests work on researching the area ahead of time, there is nothing better than hearing from the locals about the real places to check out.

Be sure to have a varied list of places to recommend to the guests based on their specific interests. As our travelers often are without a car, make sure you’re able to tell them the best way to get there.

Any additional information you can provide on these places is great. Consider having brochures on hand, websites, apps, and QR codes. Consider compiling a list of your staff’s favorite places to go. This can be posted in a public space, done as a handout that can be given to guests upon request, or distributed electronically.

As you can see, you don’t have to throw tons of money at your hotel to make a big, positive impact on your guests. Thinking ahead, partnering with local businesses, and ensuring your staff adheres to your steps of service, policies, and procedures can deliver big dividends.

For more tips, be sure to sign up for the KRG Hospitality newsletters (email and LinkedIn) and follow me on Instagram!

 

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KRG Hospitality. Boutique Hotels. Resorts. Properties. Consultant. Feasibility Study. Business Plan

by David Klemt David Klemt No Comments

Hospitality Mindset: Hotel Edition

Hospitality Mindset: Hotel Edition

by Jennifer Radkey

Red neon "hotel" sign in Copenhagen

Mindset can dictate one’s level of happiness but what some people don’t realize is that it also impacts their business and everyone in it.

Moods like happiness or hostility. Growth or fixed worldviews. Positivity versus negativity. For operators and leadership team members, mindset doesn’t exist in a vacuum. Rather, one’s attitude affects and influences staff, guests, and others.

So what is mindset exactly?

Simply stated, mindset is an individual’s usual attitude or mental state. It reflects someone’s way of thinking and motivates their actions. So, why is it important to be aware of your mindset?

Well, if your mindset dictates how you show up in your life each and every day, it will influence all parts of your life.

Your thoughts about yourself, others, your business, your opportunities and your challenges… All influenced by your mindset. Your mindset can either hinder or promote your overall well-being and success in life.

The interesting thing about mindset is that it has the ability to changeif you want. It can also be influenced by your environment and those around you. These facts led me to question if the different sectors of the hospitality industry face unique mindset challenges.

To find answers and gain further insight I decided to turn to our team at KRG Hospitality for their thoughts. In turn, I’ve written a series of hospitality mindset articles. To read the first entry in this series, the Bar Edition, please click here.

In this article I’ll explore the hotel industry, with thoughts from hospitality consultant Kim Richardson. Follow the series as I explore mindset in restaurants, hotels, bars, and start-up operations.

Let’s dive in!

The Hotel Industry

The hotel industry is vast and can be segmented into different sectors. These sectors include: lodging and accommodation, food and beverage, travel and tourism, entertainment and recreation, and timeshare and meetings.

Not only is the industry vast in its sectors, there are an array of categories. There are motels, inns and resorts, and independent, boutique and global brands. Budget, midscale, and luxury properties, and everything in between.

Different types of hotels will vary slightly in their management styles and success challenges, but most will share common mindset themes.

Successful Operators

Operating a successful hotel takes a certain mindset. You need to be organized, open-minded to growth strategies, mindful of your sectors and how they interact with each other, and responsive to the needs of your teams.

Curious about what makes one hotel stand above another, I asked Kim what contributes to a successful operator. She responded with the perspective of a general manager of a large hotel, and then from the perspective of an owner of a small boutique hotel.

“One thing that really sets the hotel world aside from the rest of the hospitality industry is the multiple facets of the different departments,” says Kim. “You’re essentially running several businesses inside of one business. All of these different departments’ successes and failures impact the other departments. I think it’s important for operators and general managers to truly have a pulse on what’s going on throughout the building and, more importantly, when a department has a success or failure, how the other departments contributed to that.”

When it comes to smaller boutique hotels or inns, Kim believes that “the ability to wear many hats and jump in as needed” is a crucial success skill for owners as they often work with a much smaller team and may need to be more hands on. Hand in hand with the ability to multi-task and wear many hats is having excellent time management skills.

Whether you are the GM of a large hotel or an owner of a small boutique hotel, it is essential to constantly “have a pulse on the business coming in the door.”

Operator Challenges

Operators need a positive, strategic, growth mindset to be successful in the hotel industry. This is a mindset that needs to be consistently cultivated, as there are challenges that will affect your daily thoughts, beliefs, and attitudes.

When asked what specific challenges hotel operators face that may affect their mindset, Kim shared her thoughts, again from the perspectives of a large hotel GM and that of a smaller boutique hotel owner.

Accountability

Being responsible for and held accountable to all levels of positions in your establishment can be exhausting, stressful, and frustrating.

“A general manager of a hotel has a lot of people to answer to. They have people above them in corporate making demands of them on a daily basis (budgets, goals, etc.). They have staff that they employ and need to keep happy. They have guests they need to keep happy,” Kim says. “With this many responsibilities, time management alone can be stressful. Finding a happy medium is close to impossible. Not every decision you make is going to please all three parties. This position can suffer from burnout just as much as the rest of their team.”

Overwhelm

Operators of boutique hotels and inns fall into danger of taking on too much themselves while feeling the success of their venue lies entirely on their shoulders.

Burnout, fear, and exhaustion are all possibilities in this situation.

“In a small boutique hotel, the owner and operator wears many hats,” says Kim. “They are often having to jump in and run many departments. If you’re short staffed in one area, you’re going to have to jump in. This can create a situation where you’re spending so much time working in the business that you struggle to work on growing the business. The overall stress of the success of the business is much more when you own your own hotel. Competing against big hotels with larger marketing budgets and known names can be a challenge.” 

Employee Challenges

Your team also experiences their own unique set of challenges that can affect their well-being and mindset.

Being aware of these challenges is important if you hope to create a culture of respect, collaboration, and trust.

When asked what specific challenges hotel staff face, Kim had some insights.

On Demand

It’s no secret that the hotels operate in a 24-hour industry. No matter what time of day or night, a hotel never truly “sleeps.” This on-demand atmosphere can be stressful for your team.

“Since the building is open 24 hours, guests tend to think you are also available 24 hours,” Kim says. “There is always the possibility that you could get a call at any time when you’re not working. Not only does the guest perceive you as always available, some managers expect the same from you, too.”

Broken Telephone

Working in a 24-hour environment means that you may not always be working with the same people every shift. In establishments with several departments, you may never have direct interaction with a lot of your team.

This can all lead toward miscommunication, frustration, and blame.

“Communication can fall short,” explains Kim. “There can be people who work in other departments that you are never in the building with at the same time. There are typically many procedures in place to communicate between departments, but things still get missed.”

Harmful Beliefs in the Hotel Industry

How you feel about the people you work with and/or work for can have major impacts on your overall mindset.

If your daily thoughts regarding your team are negative, it suddenly becomes very challenging to create a successful hotel. Why would they be excited to come to work and proud of your hotel if their efforts are only ever met with negativity?

The hotel industry has a few specific, common harmful beliefs that are prevalent in many establishments. Being aware and knowing how to acknowledge and combat these beliefs is crucial to creating a more positive work environment.

Assumptions

When I asked Kim what one of the most prevalent harmful beliefs operators harbor about their teams, she discussed the assumptions that are often made.

“I think proprietors sometimes think that what they’re asking is easy and doable,” posits Kim. “When a business is not doing well they tend to look at the quality of their staff versus quality of the processes.”

Assumptions without clarity or reason can be extremely harmful to your workplace culture. Not only are operators holding assumptions about their team, but their team holds assumptions about leadership.

Staff often feel that operators and members of the leadership team are out of touch with the reality of their market, and that they place unrealistic expectations on them. There are assumptions made that leadership does not want them to succeed personally.

“Revenue goals are increased just because they want more money but haven’t put thought into whether or not it’s attainable to make the money,” says Kim. “Operators don’t want to see people get bonuses, so in turn they raise goals. Doing well one year will only hurt you in the next year because all goals will be raised. Staff feel overworked and underpaid, leading them to believe that ownership is cheap and always giving a two-person job to one person.”

Toxic Culture

The last thing that any hospitality business needs is a toxic culture. A toxic workplace culture encourages and breeds negative mindsets on all levels.

How can you be successful if your team dreads coming in for their daily shift?

I asked Kim what can create toxic culture in a hotel, and she shared her thoughts and experiences.

“One of the biggest challenges that I always felt in hotels is the divide amongst departments. It’s very similar to the front-of-house, back-of-house animosity that often exists in restaurants,” shares Kim. “One department always feels that another department was not mindful of how their decisions impact their department. What I came to realize is sometimes that’s true and sometimes it’s not.  There’s always going to be that person who decided to make the decision that was best for their day or made them look good in accomplishing their own job.”

“However, I don’t think that is the intention of most people,” continues Kim. “With so many different types of roles in a hotel, you will never understand all of the inner workings of another department. Each department has to make the decision that best accomplishes their goal for the guest and their department. When the communication breaks down between departments and there is no understanding of how they impact each other, animosity is created.”

Moving Forward

Understanding the challenges that operators and staff are currently facing and acknowledging the importance of a growth mindset and the need for change, what positive changes have been occurring in the industry as a whole?

“Some hotels have increased wages. Some have been more open to hybrid positions of remote and on-property work since the pandemic,” Kim says. “However, there are some that are now trying to do away with those. Also, there are only a few departments in the hotel that can benefit from this as many of them need to be on property to do their jobs.”

“Overall, I haven’t seen a ton of change. There are still so many people struggling with work-life balance in the hospitality industry,” Kim continues. “I just talked to a friend the other day who has told me for years that she’s a lifer in hotels and she’s never going anywhere. She is the last person I thought I’d hear this from, but she’s feeling burnout and is not sure how much longer she can last. This is someone who is excellent at their job. Really understands the business, is a hard worker, team player, willing to go the extra mile. How many people do we find like that, that we are throwing away by putting unachievable standards on?”

Room for Improvement

Although some operators are becoming more aware of the well-being of those working in this industry, there are still many changes that need to happen. Kim believes that there are three simple changes that need to happen.

“We need to stop losing people that want to be lifers over things like burnout and lack of work-life balance. Genuine gratitude and respect from superiors goes a long way. Better communication and accountability are a must,” says Kim.

Final Thoughts

Hotels are a complex entity with many moving parts. It takes a strategic and positive mindset to ensure success and a happy work environment.

The reality is that there will always be challenges that will affect your thoughts and behaviors. You will have bad days but that is all they are: bad days.

It is the leader who can recognize these setbacks as temporary and use them to fuel their mindset towards making positive change who will come out on top.

I’ll leave you with a few last words of wisdom from KRG Hospitality hotel and restaurant consultant Kim Richardson.

“When guests come to stay at a hotel, it is their home for the duration they are there. They are there much longer than grabbing a cup of coffee or a night out to dinner. They can feel the demeanor of the staff,” says Kim. “Positive work environments exude happiness for the guests. When the employees are unhappy, the guests leave unhappy. Mindset can be contagious, and while the internal feelings trickle down to the guests, it starts way before that. If a positive energy is being given off from the leaders in the building, it can have a great impact on the staff, which then impacts the guests.

Cheers to personal and professional well-being!

Image: Marten Bjork on Unsplash

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5 Books to Read this Month: April 2023

5 Books to Read this Month: April 2023

by David Klemt

Flipping through an open book

Our engaging and informative April book selections will help you take your bar, restaurant or hotel to higher levels, and develop your leadership skills.

To review the book recommendations from March 2023, click here.

Let’s jump in!

Unreasonable Hospitality: The Remarkable Power of Giving People More Than They Expect

When Will Guidara took over the famous Eleven Madison Park, the restaurant had just two stars and he was only in his mid-twenties. Before his 40th birthday, the changes and strategies he implemented helped the restaurant earn the title of the Best Restaurant in the World.

One of cornerstone’s of Guidara’s was “bespoke hospitality.” He and his team truly went above and beyond. Examples of the Eleven Madison Park team’s approach to hospitality illustrate just how over the top they went to deliver memorable guest experiences. If you’re looking for inspiration to step up your hospitality, pick up or download Unreasonable Hospitality today.

Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant

I’m going to address the viability of the blue ocean strategy before getting into the book. Creating a hospitality concept without competition isn’t really feasible. Go too far into “blue waters” and there won’t be any “fish” (traffic). And where, exactly, would one put their restaurant, bar, or hotel where there’s no competition but still enough traffic to generate a profit?

Those issues addressed, this book is still valuable to owners and operators. One need not eliminate competition completely to take lessons from the blue ocean strategy. Businesses must still differentiate themselves from competitors, and they must look for unique opportunities to help them stand out. Blue Ocean Strategy may not work perfectly but much is still very helpful.

Contagious Culture: Show Up, Set the Tone, and Intentionally Create an Organization that Thrives

Anese Cavanaugh’s Contagious Culture addresses a topic that we often discuss with clients, in our articles, and during speaking engagements: workplace culture. From large corporations and regional or national restaurant chains, to independent restaurants, bars, and hotels, culture will make or break an organization. Cavanaugh’s techniques will improve your workplace culture and energize your team, an undeniable key to success.

From Amazon: “This is Contagious Culture, a game-changing guide to transforming corporate culture from within, developed by the award-winning creator of The IEP Method to strengthen your ‘Intentional Energetic Presence.’ This is more than a leadership book―this is your future calling.”

Bar Hacks: Developing The Fundamentals for an Epic Bar

Doug Radkey is the founder, president, and lead strategist of KRG Hospitality. He’s also a hospitality industry speaker, educator, and author. This is his first book, Bar Hacks, which is also the name of the podcast we produce through KRG Hospitality.

Now, while the title states this book is a guide for developing and running an epic bar, the strategies carry over to restaurants, hotels, and other hospitality concepts. It’s difficult—if not impossible—to elevate one’s skills and service without first mastering the fundamentals. Whether you’re new to the industry or are a veteran who feels the need to reset and revisit the fundamentals, Bar Hacks is your guide.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

There’s a first book, which means there must be at least one other one, right? Right! Hacking the New Normal is Doug’s second book.

This book is a direct response to the pandemic, what it did to the industry, and the issues many operators would prefer to ignore. However, the devastation is so great that ignoring the changes that should have been made decades ago isn’t a viable option. With a spotlight on hybrid business models, real estate, profit margins, technology, guest experiences, culture, diversity, and mindset, Hacking the New Normal will position you for success in our new hospitality landscape.

Image: Mikołaj on Unsplash

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Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Security camera stencil graffiti design

Recent posts about employee theft in the hospitality industry throughout Canada and the US have the KRG Hospitality team talking.

Indeed, the statistics are startling. For instance, there’s the claim that a staggering 75 percent of employees admit to stealing from their employers “at least once.”

A few years back, the Retail Council of Canada reported that while “customers” stole $175 on average, employees stole $2,500 before being caught.

Then there’s the incredible economic impact. Multiple sources claim employee theft in the US costs businesses $50 billion annually. In Canada, theft costs businesses more than $1 billion per year. Both numbers are shocking.

Looking at US restaurants specifically, the number ranges from $3 billion to $6 billion in losses due to employee theft. According to Business.com, employee theft affects four percent of a restaurant’s sales and accounts for 75 percent of shortages in inventory.

At this point, you’re probably Googling security cameras. But hold on for a moment.

Disclaimer

Before proceeding, know this: I’m going to make a few points that will seem like victim blaming. In part, this perception will be the result of my addressing recruiting, hiring, onboarding, training, the leadership team, and workplace culture.

Let me be clear: I’m not excusing employee theft. I don’t think there’s any justification for it.

Despite what a (hopefully) small number of loud voices claim on various social media platforms and forums, I don’t think it’s acceptable to steal from a corporation or business owner. No, theft isn’t a justifiable response to feeling slighted by ownership or leadership. And no, it’s not “okay” because a company generates “so much” revenue, has insurance, and can “write it off.”

With that out of the way, let’s proceed.

People are Going to Steal

Here’s one immutable fact: You’re going to hire someone who’s going to steal from your business.

Is your business up and running and serving guests? You employ someone right now who has either stolen from you already or is going to steal.

So, you can run your business under a cloud of suspicion and distrust. Or, you can improve your odds of reducing theft and ferreting out thieves before they do too much damage.

Again, you can install security cameras and place them above each POS terminal and every cash drawer. You can ensure you have clear, cutting-edge CCTV coverage of the entire bar and dining areas. Walk-ins and storage areas can have clear, high-resolution camera coverage.

Honestly, you should have that type of coverage. That type of security can improve employee and guest safety, and your insurance carrier will likely be happy about it.

But you don’t need to impose an atmosphere of suspicion, fear, and intimidation along with the cameras. If you were an employee, would you want to work somewhere that makes it clear you’re always under suspicion? Would you want to work alongside a leadership team whose default setting is that all employees are thieves unworthy of trust?

Workplace Culture

You’re never going to have a theft-free business, period. That’s another reason to not “lead” with fear, anger, and suspicion.

Truly, all that style of leadership will do is drive good, honest employees out. So, the approach should be attracting honest workers. You build a strong, trustworthy team through respect and empowerment.

Yes, there will be employees who take advantage of that respect. They were going to behave that way and steal or otherwise disrespect you, your business, and the team regardless.

Putting in the work to reflect on your leadership style and that of your leadership team pays dividends. It aids in recruitment and fosters an atmosphere of respect and honesty.

Become known for a healthy, positive workplace and you’ll attract the best workers. Nurture that culture and the team will police itself; they won’t tolerate anyone harming the business.

Am I suggesting you view your business through rose-colored lenses? Absolutely not. Install security cameras. Maintain the right insurance coverage. Conduct regular inventory checks. Review comps and voids for irregularities. Limit access to cash. Outline what constitutes theft—including time theft—and make consequences clear.

And here’s a crucial item: Prove you respect and care about your workers. Not say it, prove it.

You don’t need to know their life stories and everything going on in their lives. But you can let it be known that if they’re struggling with something, you and your leadership team are there to listen and help how they’re able.

Nothing you do will eradicate employee theft completely. You can, however, reduce it and learn to quickly stamp it out. And you can do that while maintaining a happy, healthy workplace.

Image: Tobias Tullius on Unsplash

KRG Hospitality. Business Coach. Restaurant Coach. Hotel Coach. Hospitality Coach. Mindset Coach.

by David Klemt David Klemt No Comments

5 Books to Read this Month: February 2023

5 Books to Read this Month: February 2023

by David Klemt

Flipping through an open book

This month’s engaging and informative book selections will help you hone your culinary, beverage, and operational skills to dial in your business.

To review the book recommendations from January 2023, click here.

Let’s jump in!

Cheers!: Cocktails & Toasts to Celebrate Every Day of the Year

As long-time KRG Hospitality readers know, we enjoy helping operators and their teams program around unique holidays. This book takes a similar approach to restaurant and bar promotions.

Philip Greene’s Cheers! suggests a specific drink and toast for each day on the calendar. There are, of course, the mainstream holidays each month. But like us, Greene also focuses on lesser-known holidays. With consumer behavior shifting toward occasion-based drinking, this book can certainly come in handy.

In the Weeds: Around the World and Behind the Scenes with Anthony Bourdain

Last year, In the Weeds was nominated for the 2022 BookTube Prize in Nonfiction. It’s understandable why this book was given such a nod: it takes the reader behind the scenes with Chef Anthony Bourdain.

“From the outside, the job looked like an all-expenses-paid adventure to places like Borneo, Vietnam, Iran, the Democratic Republic of Congo, and Libya. What happened off-camera was far more interesting than what made it to air. The more things went wrong, the better it was for the show. Fortunately, everything fell apart constantly.” Grab this book now on Amazon.

Meehan’s Bartender Manual

There are certain books that people in this industry simply need to read. Meehan’s Bartender Manual—written by bartender, educator and author Jim Meehan—is one such tome.

This award-winning book is a must-read for all bar professionals, whether you own a bar, work behind a bar, or are a server. Not only will you find 100 recipes in Meehan’s Bartender Manual, you’ll learn about bartender techniques, service, hospitality, and bar design. Pick it up today!

Setting the Table: The Transforming Power of Hospitality in Business

Much like Meehan’s Bartender Manual is a must-read for bar owners and bar teams, Setting the Table is required reading for restaurant owners and teams.

Restaurateur and chef Danny Meyer shares the lessons he has learned that helped him survive and thrive in a challenging industry. Certainly, our industry is changing. But there are still lessons to be learned when we look into our recent past.

Dare to Lead: Brave Work. Tough Conversations. Whole Hearts.

To say Brené Brown is an expert in leadership is an understatement. The professor, researcher, educator, and author has been teaching about leadership for years.

Brown’s 2018 book Dare to Lead focuses, in part, on two crucial keys of true leadership. One is taking personal responsibility. The second is how to recognize potential in others. Without these two elements, becoming an effective leader is essentially impossible. Pick up Dare to Lead on Amazon today.

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Image: Mikołaj on Unsplash

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Viral Post Highlights Real Leadership

What a Viral Reddit Post Reveals About Leadership in Hospitality

by David Klemt

Reddit app icon on smartphone

A text exchange between a restaurant manager and delivery driver posted to Reddit went viral last month.

Refreshingly, it didn’t make the rounds on news sites for the wrong reasons. Rather, the text conversation is a succinct example of emotional intelligence, empathy, and leadership.

Those interested in reading the text exchange in its entirety can follow this link. However, I’ll sum it up here.

Posted to the subreddit Kitchen Confidential, the conversation begins with the manager checking in on the driver, asking, “You doing OK?”

The driver says they’re “doing better but” is still dealing with a lot. After the manager asks if they should cover their shift that night, the driver reveals they may need to quit the job.

Instead of blowing up at the driver, trying to talk them out of their decision, or cutting the exchange short, they say, “It’s alright [sic].”

Going further, the manager says, “You’re [sic] happiness is more important.” They add that the business hopes the driver will return to the job when they’re ready.

Shall I Cover You Tonight?

Now, I tend to believe that most members of restaurant, bar, and hotel leadership teams are empathetic. I also lean toward believing that most are competent problem solvers.

However, we’ve all come across people who don’t belong in a leadership role. In some cases, a person’s lack of leadership qualifications doesn’t manifest until they’ve been in the role for some time.

My business partner Doug Radkey and I have had conversations about leaders who don’t seem to lead. At best, they’re examples of what not to do. At worst, they’re chasing away a business owner’s staff and guests.

Most recently, these conversations have centered around managers insisting that staff solve scheduling problems themselves.

Before I proceed, I acknowledge fully that we’re facing an unprecedented labor shortage. That’s no excuse for poor leadership.

What, exactly, is the leadership team doing that they can’t manage the schedule? Further, with today’s modern scheduling platforms, why is filling available roles difficult for leaders? Several scheduling apps make it a painless, automated process.

The manager in this Reddit text exchange doesn’t demand the driver find someone to cover their shift. Instead, they behave like a manager and handle it themselves.

Don’t Ever Discount Yourself

If you’re active on LinkedIn and have a sizeable hospitality-centric network, you’ve likely seen posts about how the industry needs to be more people-focused. Not in terms of guests—that’s obvious.

Rather, the consensus is that we’re not going to solve the labor problem if we don’t treat staff as well as we treat guests. Some of these posts may be a bit saccharine, but they’re not incorrect.

Let’s review the texts from this manager:

  • “You doing OK?”
  • Your “happiness is more important.”
  • “We love having you here.”
  • “You’re an awesome person.”
  • “Don’t ever discount yourself.”

When’s the last time you and other members of the leadership team asked a staff member if they’re okay? And if you’ve asked recently, did you get an honest answer? Did you want an honest answer?

A restaurant or bar team that doesn’t trust leadership isn’t going to bother providing an honest answer to that question—they feel like the leaders don’t care about them.

Looking at the rest of the texts above, do you and your leaders take the time to recognize and thank staff? Even the shyest team member wants recognition for a job well done.

Those in leadership roles need to develop their skills constantly. Contrary to some in those positions, leaders aren’t there simply to lord their authority over others and dish out punishments.

So, before your next team meeting, gather the leaders. Find out if every member of the team is checking on staff, valuing their health and wellness, and tackling the mundane tasks that are inherent to their roles.

The maxim is true: People don’t quit jobs, they quit people. If your leadership team isn’t leading with empathy, you can expect your labor issues to compound. No amount of excuses will turn that around.

This article by KRG Hospitality director of business development David Klemt was first published by Bar Business and can be read in its entirety by following this link.

Image: Brett Jordan on Unsplash

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How SevenRooms Improves Operations

How SevenRooms Improves Operations

by David Klemt

Reviewing and analyzing customer data on a laptop computer

It’s true that SevenRooms is a reservation management platform. However, it’s so much more powerful than that.

Simply put, if the platform wasn’t simple to use and integrate with other systems, they wouldn’t be celebrating their tenth year.

A recent interview via Clubhouse highlights why now, more than ever, operators need to seriously consider SevenRooms.

Background

Guy Clarke, founder of Sizzle Dining, spoke with two key SevenRooms team members in a casual but informative Clubhouse chat.

Allison Page, SevenRooms co-founder and Chief Product Officer, and Marybeth Sheppard, senior vice president of marketing, fielded Clarke’s questions.

Interestingly, Page admits SevenRooms took five to seven years to really fine-tune operations. In fact, she says that the team didn’t quite know exactly what they were offering for the first year or two.

Now, the “reservation” platform has truly hit their stride. The company doesn’t just manage reservations, it provides powerful solutions: a full suite of operational tools; table management; and guest experience and retention capabilities.

Of course, many tech platforms claim to help operators. However, SevenRooms is now enjoying a decade in business.

Their longevity is, in part, due to their approach to hospitality. As Page tells it, the founders didn’t just enter the industry believing they could “fix it” with tech.

Plenty of tech folks have identified problems in hospitality, boasted about their “common sense” solution, and exited after finding out how challenging the business is.

Instead, the SevenRooms team spent time in the trenches. According to Page, they took reservations, checked coats, and more. They spent time with hospitality workers after hours and got to know them.

What’s with that Name?

I’ve written several articles about SevenRooms. However, I’ve never addressed why the founders chose that name.

When asked by Clarke during the Clubhouse chat, Page provided the answer.

Turns out, the name is a loose nod to Graydon Carter’s “Seven Rooms Theory.” The theory speaks to navigating social status in New York City. In short, it posits that the NYC social scene consists of seven consecutive “rooms,” each with a secret door. Find the secret door, move to the next room.

Of course, SevenRooms isn’t about exclusivity. Instead, SevenRooms is helping operators reach the seventh “room,” which is a lasting relationship with a guest. The six previous rooms are a journey toward understanding that guest and making them loyal by delivering incredible guest experiences.

Why SevenRooms Works

If this seems like a shameless plug for SevenRooms, well, it sort of is. They didn’t pay me, Doug or KRG Hospitality to promote the platform; we just like what SevenRooms can do for operators.

In an industry that has until recently been slow to innovate when it comes to tech, the platform has been improving restaurant and hotel operations for years.

According to Page, SevenRooms has a simple operating philosophy that drives the company: “Make small big, make big small.” SevenRooms is driven to help small, independent operations punch well above their weight class. The platform gives independent operators the same capabilities as their large chain counterparts.

Conversely, SevenRooms gives enterprise operators an effective way to deliver the engaging experiences that independents offer their guests.

However, there are other reasons SevenRooms is so worthy of consideration: simplicity.

SevenRooms is all about collecting data. Of course, data does no good if an operator doesn’t know what to do with it. If they had to analyze and leverage it on their own, they’d need to employ data scientists and an entire marketing team.

Well, SevenRooms employs those people instead so operators don’t need to. An operator doesn’t need to be a data scientist to use the information they collect through the platform. Marketing campaigns are automated and engaging, and require little effort from the end user.

Reduce Costs, Increase Revenue

As Sheppard explains, SevenRooms manages and, more importantly, helps maximize a restaurant’s floor.

Looking to increase turns? Done. Want every seat to generate revenue? Smart seating makes that possible. According to Sheppard, SevenRooms’ auto-assign seating functionality is worthy of operators’ trust. Additionally, the platform’s CRM, table management and marketing tools help staff upsell guests.

Speaking of automated functions, Sheppard provides insight into SevenRooms auto-tagging. The platform assigns automated tags that make it simple for staff to understand the guests they’re serving. Some examples are:

  • Burger lover
  • Red wine lover
  • Big tipper
  • Loves expensive wine
  • No-showed twice

Just those five examples show how SevenRooms helps operators and their teams maximize the guest experience to generate revenue. So, how does the platform reduce costs?

First, investing in SevenRooms reduces an operator’s overall tech stack investment. It integrates with around 50 POS systems and offers several tools (modules), meaning an operator doesn’t need to purchase several platforms that may not integrate with one another.

Second, the reservation and table management tools streamline an operator’s business. When team members are focusing on revenue-generating tasks, the floor is being sat more efficiently, and guests are being wowed, costs are driven down and revenue is driven up.

Then, there’s the “hidden” benefit. As Sheppard says, hospitality is a passion-driven industry. Unfortunately, there are many “non-passion” tasks that must be accomplished for operators to make money and keep their doors open.

Those tasks can take a toll, leading to an operator to fall out of love with the industry and their own concept. Well, SevenRooms takes several of those tasks (sifting through data, creating marketing campaigns, figuring out how to maximize the floor, etc.) and automates them.

Therefore, operators have more time to program menus, mentor team members, forge relationships with guests by touching tables, and more.

To request a SevenRooms demo, click here.

Image: John Schnobrich on Unsplash

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