KRG Hospitality

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Restaurant Seating Strategies

Restaurant Seating Strategies

Originally Posted on FoodableTV by Doug Radkey 10/09/2017

There are many tactical elements to operating a restaurant business and Restaurant Revenue Management (RRM) is one of them.

RRM can be defined simply as selling the right seat, to the right customer, at the right price, and for the right duration of time.

As property and overall restaurant operating costs continue to increase, so does the desire to maximize seating and guest turnover. This goes for either a full service or quick service restaurant environment. There is, however, a science to restaurant seating strategies— the essence of RRM.

First and foremost, restaurateurs need to understand their intended guest experience and their ideal customer profile — including guest behaviours — to maximize their seating potential.  

With the right seating strategy, a restaurateur will position themselves to increase guest spending, increase turned tables, and contribute to a more positive guest experience. Consequently, this will greatly affect the operator’s revenue and profit potential.

An award winning seating strategy will include the following planning steps and thought processes.

Here are six factors to think about:

1. Room Size

The general rule of thumb for a restaurant is to allocate 60 to 70 percent of real estate to the dining area with the remaining percentage allocated for kitchen, storage, and washrooms etc. Ideally, a restaurant wants to keep approximately 20 to 25 square feet per seat, to offer the most comfort and flexibility for guests and the most adequate flow for staff including traffic aisles, server stations, and beverage bars/counters.

For example, a 5,000 square foot property will provide approximately 3,250 square feet (65 percent) for the dining and/or service area, resulting in an average of 144 optimal seats (22.5 square feet per seat).

2. Table Size

As with the above room size, there is a general rule of thumb for table size as well. Ideally, guests should be given a minimum of 300 square inches of space (per guest). For example, a 24 inch by 30 inch table will offer 720 total square inches of space or 360 total square inches per guest for up to two guests, often enough space for traditional plating, utensils, and glassware.

Table size can fluctuate based on concept, menu, plating style, and service sequence. Make the tables too small, and guests will feel uncomfortable and leave more quickly. Make the tables too large, and your property will lose valuable real estate. In this case, size does matter!

3. Table Optimization

A profitable interior design combines a variety of table sizes to meet the demand of different sized parties in addition to maximizing Sales Per Minute (SPM), an essential key performance indicator of Restaurant Revenue Management. For a restaurant to be successful, it needs to live in the moment by maximizing every day, every hour, and every seat.

Optimizing table sizes and their positioning, will improve traffic flow and turnover while reducing noise and accidents within the restaurant. Utilize point-of-sale reports to understand typical party sizes, average duration of stay, and dollars spent to ensure the restaurant is not wasting any seats or opportunities.

4. Guest Positioning

Depending on the concept, we know guests either sit themselves or wait to be seated. If one were to sit back and watch how guests were to seat themselves in a full service restaurant, a high percentage of guests would rather choose to sit near a window, featured wall (near fireplaces or wine racks, for example), or a partition wall. This is because these elements create a level of comfort.

When planning a floor layout, it is important to keep this in mind and create multiple “levels of comfort” that guests will connect with and want to be seated near, allowing the restaurant to maximize the space and not have undesirable seating areas that lead to quick visits and less spending.

5. Seating Styles

Without getting into specific details on chair styles (that’s another article), there are three key seating arrangements that are known to either keep guests in their seats and/or keep them spending more money.

Banquette tables (a bench along a wall with an opposite chair), often reduces sales per minute because it keeps guests sitting longer (which can be a great thing). This results, however, in a requirement for the restaurant to up-sell coffees, desserts, and/or other profitable items throughout the meal. This is a critical communication point to all service staff.

Booths on the other hand, are the number one option for guests and users of these booths are known to spend more in both time and dollars, as they feel highly comfortable and often feel a higher sense of privacy. Unfortunately, most restaurants cannot offer a space consisting 100 percent of booths, nor is it ideal for single diners. The right table and seating mix is required, but more booths than others, is a more desirable approach.

Traditional tables, those with two or more seats, often lead to quicker visits, unless strategically positioned near levels of comfort and appropriately spaced apart — offering a more intimate experience and ultimately leading to longer stays. It is essential this setting is truly mixed for seating of two and four (or more) to maximize potential and to reduce the risk of a single diner, for example, sitting at a table for four.

6. Guest Duration

By now, we understand that the longer a guest stays, the more they need to spend to maximize the seat and space. As a restaurateur who knows their concept and ideal customer profile, one must decide whether to focus on longer stays and higher revenues per table or to focus on volume of guests (resulting in volume food and beverage production).

What is needed to not only breakeven, but be profitable long term while having a highly productive, but not overrun kitchen and bar?

Every concept and every location will be slightly different, but once you know the average meal length, one can determine many other aspects of the restaurant such as the full potential for each day of the week which will then correlate to improving other financial management components including optimal staff schedules and food and beverage preparation.  

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How to Set Employee Expectations in Your Restaurant or Bar

How to Set Employee Expectations in Your Restaurant or Bar

Originally Posted on Typsy by Doug Radkey – 09/28/2017

Effective communication can provide your restaurant with two things. First of all, it creates an atmosphere where both front of house and back of house employees are excited, motivated, and honest. Second of all, it helps you establish workplace expectations, which can lower staff turnover costs.

Proper communication starts from the top, and from the time someone is employed (or arguably during the interview stage). The key to setting expectations, communication, and a positive working environment starts with onboarding, operation manuals, and formal training.

Onboarding

The true meaning of onboarding is often overlooked within the restaurant industry, though it should be a priority! It’s an opportunity to introduce new hires to your expectations and culture.

It’s also your chance to define what it means to be productive, promote compliance, and create the footprint for a memorable working experience.

Use the first day to discuss:

  • Short-term and long-term goals
  • The history of the restaurant
  • The vision
  • The mission
  • The values that make you who you are
  • Why customers enjoy your establishment

Create an open dialogue and allow for questions. Discuss the importance of manuals and training and set realistic goals for training completion.

The days of throwing new hires into the fire on their first day of work needs to come to an end; no matter their level of experience.

If restaurants hire for a mix of values and experience, versus experience alone, and create a systematic approach to hiring through proper job advertisements, interview processes, onboarding, manuals, and training, they will see an immediate difference in their culture and turnover costs.

This is why it’s important to remember that ‘values beat experience, when experience doesn’t work hard’.

The onboarding process should also be fun and exciting. Consider taking the process to the next level by developing a creative welcome package that consists of inexpensive but valuable tools, resources, and restaurant branded products that will go along with the paperwork needed for new hires.

This will instantly make your new hires feel like they’re a part of a team and set your restaurant apart from others in the immediate area. The added bonus is they will probably take a photo of their welcome package and share it with their social network!

Operation Manuals

Operation manuals should further outline items like:

  • Key statements
  • Policies
  • Probation periods
  • Scheduling
  • Harassment
  • Pay scales
  • Pay schedules
  • Tipping procedures
  • Emergency procedures
  • Pre-shift meetings
  • Opening/closing checklists

There should also be a complete kitchen and bar recipe manual that is continuously updated based on the current menu.

It probably sounds like this is going to be a large and heavy book (that no one will read because it sounds boring). Keep the categories short but impactful, and consider breaking them up into separate mini-packages.

You also want to keep in mind the variety of ages within your team and how they may react to different training and manual related material.

Consider creating a mix of visuals, infographics, videos, and written material in your operations manual. Incorporating video into the mix is a great way to create consistency in your messaging, and it will save you valuable resources over time.

It is imperative, however, that all components within the operations manual have a form of accountability. Make sure your new employees are signing off on their responsibilities so you have something to keep on record. They must ‘own’ it!

Staff Training

Staff training plays the third and final role in developing employee expectations. New hires need to be taught the specifics of your restaurant’s concept and business model.

They need to learn how to interact with customers, service sequences, food and beverage production, and specific equipment safety.

An advanced training program will offer adhoc training and cross-training opportunities. It will also offer a mix of classroom-style training (offline or online with a tool like Typsy), off-site training (at a brewery or winery for example), and on-the-job training (shadowing) that should be followed by tests to ensure the messages are being received.

The value of a training program lies within its structure. A winning training program will not try to train an employee all in one day, and you shouldn’t expect new hires to remember everything they learn in one session for the rest of their employment. It is imperative that a training program also includes refreshers and reviews, something that can be done in pre-shift meetings or during a restaurant’s periodic downtime.

A high percentage of employee turnover occurs within the first few weeks of employment. Step into a new hire’s shoes and remember your first days on the job, whether in a restaurant or another industry. How was your experience? Was it positive, memorable, and engaging? Most will likely say not.

In summary, you want to develop systems, experiences, confidence, morale, and consistency, which will set the expectations needed to successfully operate a restaurant.

If you have the correct mindset, the correct programs, and the correct leadership, any previous onboarding, operation manual and training nightmares will simultaneously go away, benefiting operators, employees, and yes, even the guest.

It takes a complete team effort and it starts from day one.

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Sound Engineering for Your Bar or Restaurant

Sound Engineering for Your Restaurant or Bar

By Doug Radkey – 09/26/2017

In the bar (and restaurant) industry, emotions and experiences are paramount. Without delivering positive emotions and memorable experiences, you will not have a long lasting business. Outside of food, drink, seating, video, and decor – properly engineered sound (music) can enhance those much needed feelings that guests’ ever so often, desire.

Music has the authority to deliver the right ambiance based on one’s brand and based on one’s target demographic while increasing overall profits. No matter the concept, guests are known to enjoy their food, drink, and inner-circle company more so when music is playing; which ultimately makes them stay longer and of course, spend more of their hard earned dollars at one’s venue.

We sat down with our friends at Playdio Inc., a new platform labelled ‘handcrafted radio for your business’ to ask them a few key questions regarding the importance of sound engineering in bars today. Here’s what they had to say!

Bar Start-Ups

If you’re in the start-up phase of your food & beverage business, don’t overlook the importance of music and sound. As Mat Lunnen of Playdio tells us “a new bar is like a luxury cruise liner – it’s not a speed boat. Erratic music creates erratic guest behaviour. Changes in your music should be subtle turns like a large ship, not swerving in and out of the water like a jet ski.”

To accomplish this is no easy task. It takes the correct sound system, the correct speakers, the correct speaker placement, and the correct level of sound paired with sound management (song choices and playlists) to make it work like the noted luxury cruise liner.

“You’ve taken the time to surround yourself with professionals in your business. From designers and architects, to bookkeepers and chef/bar consultants, you rely on experts to craft these parts of your business. Music is equally as important and cannot be overlooked.”

Working with a sound or music professional “allows you to dive deeper into understanding your day parts and demographics while creating memorable and meaningful experiences for all your customers.”

In summary, make the right choice and invest in proper sound engineering and sound management, right from the start.

Psychology of Day-Parts

Whether it’s pre-game drinks at a bar, or a fine dining experience at a restaurant, crafting the perfect playlist is an art form. “Using professionals can help increase customer engagement, and impact customer behaviour & spending patterns, while allowing you to focus on the more pressing day to day issues of your business.”

Mat’s advice “is to take a good look at your day parts, understand them and who is in your business at that time, and create appropriate playlists for each day part”.

For example, during lunch hour, consider upping the tempo and energy of the music being played to encourage guests to eat their food faster, opening up tables for additional customers.  Analyze each hour of the day and the type of guests you’re typically serving. Subtle tweaks to music selection can play a large part in duration of stay, money spent, and guest satisfaction.

Four-Walls Marketing

Marketing events through sound & music is also an excellent way to drive emotion and memorable experiences. Does your bar show the hockey game every Saturday night? It would be ideal then to “play stadium songs that we would normally hear at the hockey arena, as if we were really there, to get your customers in the mood”. Don’t want guests heading to the exits after the game? Consider “crafting a high energy, familiar playlist and then crank the volume to keep the party going” which is a great option to pair with late night food & drink menus.

———-

When you “take songs that are connected to our memories and times in our lives where music and sound had more of an impact on us – we increase social experiences, social activity, and often connect those feelings back to a specific venue where the song was played”.

Music builds brand perception, creates an atmosphere, influences guest behaviour, attracts & prolongs guest visits, increases staff productivity, and boosts staff morale. Who wouldn’t want all of that!?

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Is Your Restaurant Ready for Digital Ordering

Is Your Restaurant Ready for Digital Ordering

Originally Posted on FoodableTV by Doug Radkey – 09/15/2017

Nearly every household orders food to-go from a local restaurant at least once or twice per month (some per week) and the days of traditional ‘phone orders’ or simply waiting in line, are clearly coming to an end thanks to new and continuously improving technology.

Many independent restaurants have been sitting back, watching the development of online/mobile ordering, also known as digital ordering, wondering if they need to get into this space and/or how to even get started.

The question shouldn’t be ‘should we introduce digital ordering?’— the question should be ‘when will we introduce digital ordering?’

The answer to that question should be: As soon as possible, BUT only when your operations are ready for it and you won’t be undermining any restaurant fundamentals throughout the process.

If you haven’t implemented digital ordering yet, don’t freak out!

It’s obvious you didn’t open a restaurant because you love technology. You opened one because you love food, drink, and serving a community through the development of customer experiences.

There are numerous benefits, however, to offering digital ordering methods to your guests. The good thing is that technology (or apps) currently on the market (for example, Gloria Foods) have made it extremely simple and cost effective to introduce this new feature while improving on customer experiences.

To sum it up, independent restaurateurs no longer need an IT department or professional to get started— the hard work is already done for you!

If you’re on the fence about the how, why, and when of digital ordering for your establishment, consider the following tips to see if it’s the right fit for you.

Improves Efficiencies – Digital ordering will not tie-up phone lines or require staff to stand around taking manual orders.  This will allow staff to be more productive in terms of food preparation and other customer service requirements, especially if the ordering method is tied right into the point-of-sale system. This will undoubtedly and effectively control labour costs while improving communication amongst your team and your customers.  Speaking of preparation, digital ordering methods often allow customers to ‘pre-order’ hours ahead of time, allowing the kitchen more time to prep, just like traditional table reservations would for a full-service restaurant.

Improves Quality Control – Digital ordering will also reduce human error often associated with phone or counter orders (due to background noise, customer accents, or simple misunderstanding), resulting in higher customer satisfaction rates and often quicker customer return rates.

Improves Mobile Presence – With digital ordering, you instantly have a mobile app while improving your mobile and online presence, which then improves your SEO, marketing, and overall customer satisfaction. Use this updated technology to ensure your website, social media, and online efforts work FOR you, not against you.

Improves Competitive Advantage – You’re not alone when it comes to not having online ordering methods implemented. It is likely true, many of your hyper-local competitors are ‘behind,’ as well. This means that introducing this technology will give you an immediate advantage while also positioning you to compete at a higher level with the larger mainstream brands in your area.

Improves Overall Revenue – When customers are given more time to order and can view all of the different menu options available to them, they tend to spend more money. Digital ordering increases impulse purchases through effective up-selling. Imagine what adding even just $2-$4 could mean to your bottom line!

Improves Marketing Efforts – Lastly, digital ordering collects data that is highly beneficial. Many of the applications offer ways to track previous orders, create customized profiles to predict sales, and understand which neighbourhoods are buying and which ones are not. It also provides an avenue to improve social media efforts by driving sales directly through these platforms.

Introducing digital ordering methods can, however, come with their challenges for operators and these challenges are not necessarily technology driven. Here are some to consider.

Menu Setup – It must be easy for customers to navigate your menu. If there are customizable dishes (for example, a hamburger), it must be very easy for customers to decide which toppings they want and don’t want. In addition, typical food sensitivities or allergy alerts need to be clearly visible to the customer on your digital application. The solution is to keep your menu simple.

Delivery Options – With digital ordering as an option, the expectation of delivery often presents itself to your customer. It’s not mandatory, but something to consider as an operator. Delivery can create more immediate questions than answers, though, as one needs to decide on using either a delivery app company or hiring their own set of drivers. This, then, poses insurance questions and another potential increase in costs. Delivery can be expensive and difficult to ensure food is delivered as advertised— meaning your style of to-go packaging will need to also be reviewed for quality assurance.

Venue Layouts – With an increase in digital orders or to-go orders, in general, a restaurant’s layout may need to be adjusted. This could mean less tables and larger pick-up areas. It could also mean aligning kitchen equipment differently and even creating specified digital ordering pickup parking spaces to ensure these customers are in and out, as quickly as possible.

The entire premise of digital ordering is to simplify the ordering sequence, for both the restaurant and the customer. If you cannot promise a high level of customer satisfaction, then you’re not ready.

Don’t start to offer digital ordering just because others are offering it.

It needs to be thought through and planned for long before it’s launched. In summary, customers must enjoy the digital ordering experience just as much as the food they’re ordering.

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How to Develop a Restaurant Menu – For Real

How to Develop a Restaurant Menu – For Real

Originally Posted on Typsy by Doug Radkey 08/31/2017

It doesn’t matter if you’re developing your very first restaurant menu or you’re planning to re-invent your current one – you need to have a strategy in place with both the food and beverages on offer. 

If you’ve done a concept development plan, you’re already on the right path. Your restaurant menu is there to give meaning to the overall guest experience while also delivering emotions and brand personality.

These are the fundamentals of a restaurant’s concept.

To develop a memorable food and beverage menu, however, you must have a thorough understanding of your target customers. You should also undertake an advanced hyper-local analysis (competitive analysis) and aim to understand your local economic factors.

If you’re just starting out, developing a menu concept will assist both you and your architect in designing a kitchen and bar layout that is going to deliver effective productivity, storage, and preparation.

Here are a few tips to help you get started.

1. Develop Your Menu Concept

First and foremost, you should ask yourself what you want your restaurant to be known for. The best ‘what’ in your area? From here, you can begin to develop a flavor profile with supporting elements such as colors and textures that will deliver that promise.

The goal is to keep it simple and memorable. Try to keep your menu under 24 items for optimal productivity, and to minimize confusion and anxiety among your guests (and staff).

Remember, guests prefer to make a decision within 120 seconds.

Take this time to list out your desired menu and if it’s too large, begin to narrow it down.

2. Develop a List of Core Ingredients

Developing a menu and/or new and specific dishes and drinks can take a lot of trial and error. It’s important to understand your concept and target market while working with flavors that will make customers go ‘wow’!

Put together a list of the core ingredients that will deliver that wow factor within your desired menu. You’ll also want to consider how you can repurpose raw ingredients as much as possible to reduce food costs and potential waste.

Consider this; how can the kitchen & bar collaborate to maximize the yield on ingredients?

When considering ingredients, try using as much product from around you as possible – for example, produce that is in season, food artisans from your area, or meats from a local farm/butcher. Take this time to list out all the main ingredients you will require.

3. Investigate Your Supply Chain 

Now that you know your concept and its core ingredients, where can you find them?

You want to reduce your risk (and often costs) by eliminating as many third parties as possible within the supply chain. When planning your menu(s), list out a limited number of targeted suppliers, including data on their company history, any past product recalls, their storage facilities, delivery logistics, and ethical working environment.

Build a list of two to three local butchers, seafood suppliers, dry goods, craft breweries, local wineries, and produce suppliers (etc.) needed for your concept.

4. Cost Out Your Menu Items

Using a recipe management program or simply inputting available data into a spreadsheet will allow you to begin analyzing your menu concept, its portions, and each associated item with its core list of ingredients.

Based on the concept, noted ingredients, and each supplier’s cost, can the menu items be priced accordingly for your target customers and local economy? Is there enough room for profit based on your location’s needs? Is there enough balance in the pricing? What is the goal for average revenue per customer?

This is where having a business plan in place will assist in understanding appropriate key performance indicators (KPIs) required to be a successful restaurant.

5. Visualize Plating and Glassware

Now that you have the concept and initial costs figured out, you can move along to the next step. Many aspiring restaurateurs forget about this one. It’s time to consider how your guests will eat and drink your menu offerings.

How will it look on the plate or in the glass? How will the colors contrast with one another? Is the dish or drink ‘Instagram’-worthy? Which elements should go on a fork or spoon together?

If it’s available for take-out, how will the menu item perform after being in a container for 10+ minutes on the drive home?

It’s ideal to plate it three different ways, test it, take photos, and also test its longevity if it is going to be available for take-out.

Again, trial and error makes perfect.

6. Run a Test Kitchen

This is arguably the most exciting aspect – testing the flavors! Do the menu items meet and exceed your expectations? Give each item a few different tweaks and decide which is best. Get others involved in the process and don’t be afraid to use a soft opening to gather further feedback.

You may want to take photos and put them on social media to see which ones gather the most engagement from a visual standpoint.

At the end of the day, the key to a profitable and memorable menu is to keep it small and focused with signature items that you want to be known for – while differentiating your concept from local competition and offering a balance in pricing.

This is the recipe for success!

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

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

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

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

This is also known as— social responsibility.

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

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

What restaurant wouldn’t want that?

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

What more can be done, you ask?

Let’s take a look!

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

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

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

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

1. Make it a Team Based Mission

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

2. Reflecting On Your Values

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

3. Environmental Impact

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

4. Local Events

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

5. Team Building

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

6. Disaster Relief

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

7. Poverty Assistance

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

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

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

Make it a win-win for everyone!

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Before You Expand Your Restaurant Read This

Before You Expand Your Restaurant Read This

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

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

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

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

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

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

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

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

Prep a Business Plan

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

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

Determine Your Concept Characteristics  

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

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

Make Sure Your Systems Can Be Easily Duplicated

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

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

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

Keep the Kitchen & Bar Consistent

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

This must be duplicated among all additional outlets.

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

Implement a Supporting Cast  

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

Are you in a position to handle this extra workload? The answer is probably no. What often happens is the owner will spend more time at the new location, leaving the first location vulnerable.

That’s why it’s important to take the time to consider the right management team for multiple locations, including additional chefs, managers, and supervisors in addition to startup specialists like consultants, designers, engineers, and architects that will save time, money, and energy.

Re-evaluate Your Marketing Plan

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

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

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

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

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Developing a Profitable Beer Program

Developing a Profitable Beer Program

By Doug Radkey – 07/28/2017

You could try and make everyone happy by offering hundreds of beers at your bar, but for many, that’s likely not going to happen due to space restraints.

A bar needs to carefully consider their beer program and offer one that is balanced, targeted, and one that fits their concept to maximize its potential.

A great beer program should have the same respect as a carefully drafted wine or cocktail program. Don’t build a beer program based solely on the recommendations of a brewery sales representative.

Outside of advanced bar design, adequate refrigeration, and proper draught lines etc., here are some helpful tips for you to consider, when designing a new or revised beer program.

Market Research

Assuming you know the targeted demographics of your bar and the hyper-local area surrounding your bar, you first need to develop a program that speaks to them and your concept.

  • Is the beer intended to compliment a meal or simply promote a refreshing, good time?
  • What are the age brackets, income levels, and number of men vs. women?
  • How long are your guests intended to stay?

There is a difference between a sports bar and a neighbourhood pub or a bar & grill. Knowing this data will help determine the next steps.

Craft vs. Big Brand

Once you know the above, you can then focus on styles and not necessarily brand names. We can all agree that the craft beer ‘movement’ isn’t going anywhere, but don’t just create a craft beer program because everyone else is. Know the market, know your customers, know your flavour profiles, and create a mix of known brand names and local craft beers, with the right balance of styles.

Beer Balance

As it’s noted, focus on styles and flavour profiles. If you have an excellent food program (let’s hope you do), you can effectively pair beer with your food menu just as you would with wine and cocktails to create a full sensory experience. You can also step up your beer program by offering seasonal beers that rotate while keeping your program fresh and exciting. If each beer program has at least one of the following, there should be enough options for proper pairings; Pilsner, Amber, IPA, Farmhouse, Wheat, Pale Ale, and Stout.

Product Consistency

When it’s time to choose your preferred breweries for the beer program, remember that quality must be kept top priority. Not only in taste, but the breweries customer service and delivery logistics. This is especially important with craft beers and how quickly they’re emerging. Visit the brewery and have a tour while you discuss their product, their recall program, delivery schedules, pricing, and emergency calls (example, you’ve ran out of beer before the next delivery).

Beer Education

Once that is all solidified, all of the service staff and bartenders need to be educated on each of the beers. They should know the beers history, ingredients, flavour profile, and correct pouring methods and its required glassware. This will go a long way in the overall guest experience and up-selling of the product.

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4 Ways a Bar & Grill Can Win Back Guests

4 Ways a Bar & Grill Can Win Back Guests

By Doug Radkey – 07/24/2017

Over the past couple of years, we have collectively seen the ‘bar & grill’ segment on a continuous decline. Nearly every market across Canada and the US is over-saturated with the traditional bar & grill concept and most have become complacent in their own operations; offering similar menus and guest experiences while not adapting to industry changes.

Furthermore, this segment has been losing to other fast casuals and specialty eateries (plus food halls); ones that specifically target millennial demographics. The bar & grill however, has an opportunity to regain customer share in this cut-throat industry.

When targeting the millennial demographic, it’s imperative to plan around the fact that this group will pay more to go to a venue that offers premium food, high-quality beer & cocktails, and that cater to social engagements (ie unique experiences).

Here are 4 quick ways (#BarHacks) that the traditional ‘bar & grill’ can win back customers, starting today!

Innovation

Traditional burgers, wings, nachos, and beer can no longer be the norm to ‘attract’ guests to a bar & grill. Concepts that are driving innovation within both the kitchen and the bar, are the ones currently leading this segment. Fresh ingredients, hand-crafted drinks, cocktail pairings, unique plating, and innovative (or at least) new takes on traditional bar-fare, need to be considered during your next engineered menu.

Trend Management

Trends come and go, but bar owners must adapt to local market changes and demands. This is not only in food & beverage offerings, but overall guest experiences. What trends are driving guest energy, guest spending, and guest duration? Find the need in your hyper-local area and simply adapt it to your concept!

Back-Bar Strategies

When is the last time you took a careful look behind your bar? Realizing the necessary return on your alcohol investment is also partially a question of cost control. Create a niche in your bar & grill by re-focusing and minimizing the beverage menu offerings to develop signature, fun, social, and targeted drink menus your guests will want; ultimately reducing the dust on your bottles and wasted overhead.

Off-Premise

The bar & grill segment most definitely survives off of alcohol consumption, but many bar owners have been left behind and have not adapted to the off-premise dining option that many demographics are now seeking, leading to a loss in revenue opportunity. With the right menu mix, margins, promotions, and even online ordering methods, a bar & grill can attract and take part in this revenue generating platform without necessarily reducing overall on-premise revenue.

The adage ‘innovate or die trying’ is evident in today’s bar & grill. What will you do to stand out and remain relevent? Start here with these ‘bar hacks’.

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9 Ways to Maximize Restaurant Downtime

9 Ways to Maximize Restaurant Downtime

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

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

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

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

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

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

1.Scheduling

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

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

2.Service Preparation

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

3.Cleaning Tasks

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

4.Inventory/Ordering

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

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

5. Review Marketing & Advertising

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

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

6. Review Cash-flow

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

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

7. Ongoing Training Schedule

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

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

8. Preventative Maintenance

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

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

9. Hold Meetings

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

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

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

It takes a team effort and it starts now!

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