Recruitment | KRG Hospitality

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August 18, 2023by David Klemt David Klemt No Comments

Hospitality Mindset: Restaurant Edition

Hospitality Mindset: Restaurant Edition

by Jennifer Radkey

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

May 26, 2023by David Klemt David Klemt No Comments

Raise the Bar: The 3 Ps of Hospitality

Raise the Bar: The 3 Ps of Hospitality

by David Klemt

No, one isn’t “pineapples.”

Nightlife, bar, and cocktail experts Mia Mastroianni, Phil Wills, and Art Sutley want operators to focus on what they call “the Three Ps.”

The engaging trio shared their trio of Ps recently in Las Vegas at the 2023 Bar & Restaurant Expo.

So, what are the Three Ps of hospitality? People, Place, and Product. Operators who pull the threads tighter on each of these crucial elements will be well on their way to improving operations and the guest experience.

People

Remember all the way back to a week ago when I shared Mastroianni, Wills, and Sutley’s thoughts on service versus hospitality? Consider the first P a deeper dive into that topic.

Operators need to focus on two categories of people who help their businesses succeed: their teams and their guests.

Addressing the former, the trio feels that operators are centering a disproportionate amount of their attention on guests in comparison to staff.

“We’re not lacking for people who want to work in the business and are outperforming other industries, but we’re not focusing on staff like we focus on guests,” says Wills. “Treat everyone with respect, including through the hiring process. If you don’t engage your staff, you won’t retain them. You need to show them they can grow in your business.”

According to Sutley, 89 percent of operators say that labor costs present a “significant challenge.” It follows, then, that committing to treating staff with respect and nurturing their careers isn’t just the right thing to do, it’s smart business.

Look for people with passion, those you can motivate to go above and beyond so you’re not stuck with a team full of space-fillers who are just after a paycheck, suggests Mastroianni.

Of course, operators and their teams must also focus on providing exceptional service and experiences to guests.

“Treat ever guest like a pearl in an oyster,” advises Wills. “They’re the pearl, we’re the oyster. We need to ‘protect’ them.” Anything less, cautions Sutley, and guests won’t return.

Place

Interestingly, the trio touched on design, aesthetic, and vibe. However, that isn’t the crux of the second P.

Rather, Place is really goes back to the guest experience. The design, aesthetic, and vibe need to meet guest expectations.

“Make sure your space is what it’s supposed to be,” says Wills.

For example, if a concept presents itself as a high-end cocktail bar, the four walls need to deliver on that expectation. With the exception of a handful of high-level examples, an upscale bar won’t survive if they deliver a dive bar—not neighborhood bar, dive bar—vibe and service. (For the record, I love a dive bar. But I don’t expect to encounter TV trope-style dive bar service if I walk through the doors of a high-end cocktail bar.)

One way operators can ensure their space is what it should be is standardization. Once a concept goes from idea to brick and mortar, when the owner’s vision is realized, the team needs to deliver a matching experience. Steps of service, systems, procedures…standardization is the name of the service game.

“Standardize your opening, shift, and closing procedures and systems to maintain your place,” says Mastroianni.

Every team member—front of house, back of house, leadership—needs to know and buy into an operator’s standards.

Product

Standardization breeds consistency. And consistency is a key element of the third P, Product.

Per Sutley, 76 percent of operators have noticed that guests are opting for more premium drinks. That’s great news, but it’s not the whole story.

It’s great that guests are opting for more expensive drink options. After all, that can certainly help the bottom line.

“However,” cautions Mastroianni, “they won’t come back without consistency in production.”

To drive this point home, consider this story from Mastroianni. A bartender made her a drink, and it was pretty good. She ordered another one from the same bartender and watched him make it differently the second time around. Not only was this second version different, it was better. While one could view this story through a positive lens—the drink was even better the next time!—that’s not the correct takeaway.

If the bartender was committed to building cocktails consistently, the second version of that cocktail would’ve been the first one served to Mastroianni. It would be the best version, and it would always be that impressive version.

When we’re fighting the possibility that up to 70 percent of first-time guests never return, the importance of product consistency can’t be overstated.

“Really focus on the small details to affect big change and get guests through the doors and keep coming back,” says Wills.

Image: Aleksandar Pasaric on Pexels

October 11, 2022by David Klemt David Klemt No Comments

The Crucial Role Systems Play

The Crucial Role Systems Play

by David Klemt

Having efficient systems in place does more than just streamline day-to-day restaurant, bar, and hotel operations and increase productivity.

Of course, that’s an excellent reason for operators to ensure they implement multiple systems. Front-of-house, back-of-house, and leadership team members need systems to perform at their best.

Six Sigma, kaizen, the technology stack, checklists, manuals, marketing strategies, the guest journey… Each of those systems and more are key to the long-term success of restaurant, bar, and hotel operations.

In fact, these systems should be developed and ready for implementation before the doors ever open for the first time.

Further, effective systems communicate the expectations for roles and tasks. Onboarding and training systems improve recruitment and retention. Also, they provide the transparency that today’s professionals expect from their employers. On top of that, systems help develop consistency, which keeps guests coming back.

A strong leadership team is effective at implementing and following systems. Overall, a strong team is one that understands, embraces, and adheres to a systematic approach to operations to achieve shared goals.

Simply put, the only way achieve success is to be strategic. One can’t be strategic without the implementation of systems.

But there’s another crucial role that systems play in restaurants, bars, and hotels.

Get Out

This topic is the byproduct of a recent KRG Hospitality client call. While explaining our approach to projects, our team touched on the importance of systems.

However, the topic wasn’t brought up simply to detail what systems the client would need to have in place.

A crucial role systems play in a successful operation is getting an owner away from their four walls. More importantly, allowing them to confidently and comfortably leave their business.

If an owner—be they a sole proprietor or business partner—can’t step away from their restaurant, bar, or hotel without worrying, something is wrong. Either the systems in place are ineffective, they don’t address every element of the business, they aren’t being adhered to, or they don’t exist.

Effective systems allow an owner to take time away from their business without micromanaging staff. Systems should also be in place so the owner or owners don’t feel anxious when they’re not working on the business.

Breathe

Stepping away to pursue a hobby, engage in self care, spend time with family and friends, or just because one wants to take a “lazy day” is necessary.

The strategic implementation of systems makes it possible for someone to take time away from their business. They can take that vacation, pursue that goal that doesn’t relate to their business directly, recharge, etc.

Of course, having systems in place also mean an owner and members of their team can travel. They can comfortably attend industry shows, make a guest appearance at a peer’s bar, or host a pop-up without worrying about the business. Having systems in place also makes it possible to travel to discover new F&B items, learn new techniques, and forge relationships with industry peers.

In other words, systems help owners and operators do something they likely haven’t done in months, if not years: breathe.

Image: Fabian Møller on Unsplash

April 25, 2022by David Klemt David Klemt No Comments

Hiring Struggles? Engage These Age Groups

Hiring Struggles? Engage These Age Groups

by David Klemt

Staff turnover rates are still above pre-pandemic levels and there’s no silver bullet solution. However, two companies have some helpful advice.

Both Service Management Group and Technomic shared their tips during Restaurant Leadership Conference. Interestingly, each company has a different approach to the current hospitality industry labor problem.

In short, both SMG and Technomic advise operators to engage with vastly different age groups. However, they each have information that supports their recommendations.

Service Management Group

Jennifer Grimes, senior vice president of client services for Service Management Group, co-presented a session with Jim Thompson, COO of Chicken Salad Chick.

SMG is a software-with-a-service platform that seeks to the employee, customer, and brand experience. One crucial element of the company’s mission is the reduction of staff turnover.

During the RLC session, Grimes shared several years of hospitality turnover rates:

2017: 72%
2018: 75%
2019: 79%
2020: 130%
2021: 86%

First, some context. The general consensus is that the industry’s average turnover rate has been between 70 and 80 percent for close to a decade. However, in comparison to other industries—10 to 15 percent—that’s stratospherically high.

Secondly, the turnover rate has been on rise since before the pandemic. Per some sources, the rate jumped from 66 percent in 2014 to 72 percent in 2015, a trend that continues to this day.

For SMG, the age group operators should seek to engage—generally speaking, of course—is 25 to 34 years old. Per the SWaS platform, this group was the most engaged pre-pandemic.

One reason for SMG’s suggestion is that Boomers appear to opting out of the workforce.

During the presentation by Grimes and Thompson, the latter shared that Chicken Salad Chick predicts the 2022 turnover rate to be just slightly above the 2019 rate.

Technomic

Unsurprisingly, Technomic had some numbers to share during RLC 2022 in Scottsdale, Arizona.

Per data provided by Joe Pawlak and Richard Shank, 70 percent of operators are still struggling with labor. Recruiting, hiring, and retaining staff doesn’t appear to be getting any easier four months into 2022.

Technomic also pointed out that the US saw the lowest population growth in its history last year: 0.1 percent.

Additionally, almost 17 percent of the country’s population is now at least 65 years old. In 2019, 48 percent of people 55 or older retired. That number is now just over 50 percent for the same age group.

Nearly seven million American consumers turn 60 each year, while four million turn 70 or older.

Logically, one may assume that Technomic is saying a significant portion of the US population is leaving the workforce. So, it’s best to focus on the same age group as SMG recommends.

However, Technomic is recommending a different strategy. Per Pawlak and Shank, retirees (mostly ages 55 and up) tend to have valuable managerial skills and experience.

Obviously, those skills and all that experience can be of great benefit to operators and our industry.

Certainly, all groups should be engaged by operators seeking to recruit, hire, and develop their teams. So, as KRG Hospitality sees recruitment, operators should craft targeted, authentic messaging that appeals to each age group.

Image: Sebastian Coman Photography from Pexels

April 20, 2022by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

Technomic presented the state of chain restaurants, now and next, during Restaurant Leadership Conference 2022 in Scottsdale, Arizona.

Obviously, the entire hospitality industry is facing significant struggles. Rising costs, supply chain chaos, labor shortages and challenges, inflation… The past two-years-plus haven’t been easy.

However, there’s reason for operators and their leadership teams and staff to be optimistic. Additionally, independent and small-chain operators can learn from Technomic’s findings.

Challenges & Threats

Well, let’s take our medicine first, starting with the supply chain. In short, it’s bedlam.

Joe Pawlak (standing in for David Henkes) and Richard Shank of Technomic said as much during RLC 2022. Per their data, 35 percent of operators dropped at least one manufacturer between 2020 and 2021.

Whether because of rising costs, an inability to consistently deliver product, or other factors, operators had to adapt. Clearly, there’s a nasty trickle-down effect when an operator drops a supplier.

And then there’s inflation. Interestingly, Shank calls what we’re seeing currently as “existential inflation.” Relating to consumers, this means their confidence is shaken in terms of spending.

Of course, this type of consumer perception manifests in several ways. For example, some guests cut down on visits. Others will cut down on ordering, skipping appetizers and desserts. Perhaps they have one less beer, glass of wine, or cocktail.

Also, some guests “trade down.” Meaning, there are consumers who opt for casual restaurants rather than fine dining. Or, they’ll move from fast-casual to QSR.

Looking at the numbers, however, nearly 40 percent respondents to a Technomic survey say they’re visiting restaurants less. This makes sense, as 81 percent are concerned about how inflation will impact them personally.

On the operator side of inflation comes pricing. During Pawlak and Shank’s presentation, they used QSR dinner pricing as a real-world example.

According to Technomic, the tipping point for guest perception of good value is just $7. At only $10, consumers feel things are getting expensive.

As Pawlak and Shank pointed out, this is a problem. After all, the average price for dinner at a QSR is $10.08. That number may already be higher today.

Opportunities

Medicine taken, we can move to the good news.

First, Technomic predicts a strong Q3 this year. Additionally, they don’t expect double-digit year-over-year inflation.

In terms of labor, Technomic doesn’t expect costs to go down. However, they do anticipate that they’ll level off rather than rise.

Then there are the numbers. For the top 500 chains in the US in particular, 2021 was a “banner year,” according to Pawlak. On an aggregate basis, sales for the top 500 (McDonald’s is number one, for those wondering) are up 17.9 percent.

Also, every category of restaurant is performing better. The top 500 chains, for instance, are up 18 percent year-over-year. Midscale restaurants are up 38.5 percent. Casual is up 30.2 percent while fast is up 22.2 percent, QSRs are up 13.2 percent. As far as the biggest bump, fine dining is up 56.9 percent.

Looking at 2019 for obvious reasons, the industry was down 49.1 percent in sales in April 2020. However, the industry was down just about a single percentage point in February of this year compared to the same time in 2019.

So, how do we keep sales trending upward when facing inflation and other threats? Pawlak, Shank, and Technomic have some advice.

Operators, for instance, can implement the “balanced barbell” pricing strategy. In this model, high-value items drive business alongside premium offerings. In other words, don’t discount the entire menu just to entice guests to keep visiting.

Once guests get a taste for falling prices, they’ll consider the lower prices the standard. After that, any increase can be perceived as “too expensive.” Of course, discounting the whole menu also impacts guest perception of the brand negatively.

In addition, Technomic suggests offering higher net profit discount bundles, and implementing off-premise, large-party strategies.

Should Technomic’s predictions prove true, the industry may see an even stronger Q4 and start to 2023.

Image: Alex Haney on Unsplash

April 18, 2022by David Klemt David Klemt No Comments

This Simple Test Reveals Process Problems

This Simple Test Reveals Process Problems

by David Klemt

There’s an easy way to identify whether there are changes that need to be made to processes and practices that only requires observation and time.

Luckily, it doesn’t take much time, either. In less than a week, an operator can determine if there are issues relating to onboarding new hires.

This simple test was shared during the 2022 Restaurant Leadership Conference in Scottsdale.

Interviews are Just the Start

It should go without saying but here we go: The hiring process doesn’t end with the interview.

An operator or their leadership team found an amazing job candidate? Awesome! That’s no small feat these days.

However, that’s just the first step in hiring and building a rock star restaurant, bar or hotel team.

Step two is onboarding, step three is training, and step four is advancement.

For KRG Hospitality, onboarding goes far beyond filling out federal and state paperwork. There’s more to it than setting up direct deposit and getting a new hire on the schedule.

Rather, operators need to implement a fully developed onboarding process. The key word there is “process.”

True onboarding includes the review of an employee handbook and an introduction to the business. During this process new hires should become familiar with the brand’s history, vision, culture, mission, and core values.

By the end of this process, a new team member should understand what’s expected of them, both in their individual role and behaviorally. Additionally, they should be introduced to the entire team.

In reality, the onboarding process is the development of a professional relationship.

The Test

Technically, the actual test for operators is for them to have in-depth hiring, onboarding and training processes in place.

So, operators should take a moment to review whether they have those processes.

However, the test I’m talking about here relates to onboarding directly. It’s simple and it was shared during RLC 2022 by Jim Thompson, COO of Chicken Salad Chick.

The only requirement is a few days’ time and an observant operator and/or leadership team.

Let’s say a candidate nails the interview. In particular, their personality is perfect for the available role. As the the hospitality industry maxim goes, hire for personality, train for skills.

The new hire works their first shift but their personality doesn’t shine through. However, that could be first-day jitters. Unfortunately, that personality the leadership team hired for is nowhere to be seen during their next few shifts.

According to Thompson, if a new hire’s personality doesn’t shine through within four shifts, there’s likely a process and practices issue. The lack of personality is an indicator that the new team member doesn’t feel confident in their role.

The onboarding process—either too shallow or nonexistent—is a likely culprit. Operators can use this test, a simple four-shift observation of a new hire, to determine if there’s a problem.

Once identified, the operator and their leaders can put their heads together, review the issue, and implement effective, positive change.

Image: Caroline Attwood on Unsplash

April 15, 2022by David Klemt David Klemt No Comments

The Uber Effect: Recruit and Retain

The Uber Effect: Recruit and Retain

by David Klemt

To better understand how to recruit and retain top talent these days we can simply look at what’s known as the Uber Effect.

We just got back from the Restaurant Leadership Conference in Scottsdale, Arizona. The education was top-notch, featuring a wide range of restaurant industry experts.

One outstanding session illustrates the need for operators—chain and independent—to change their approach to recruiting and retaining staff.

Flexibility in the Workplace

According to Jennifer Grimes, senior vice president of client services for Service Management Group, people in the labor pool are after three things when seeking employment.

Generally speaking, they want better pay, better benefits, and better scheduling. Gone are the days of people focusing only on their paychecks.

And per Jim Thompson, chief operating officer of Chicken Salad Chick, the Uber Effect is largely responsible for this shift in focus. The Uber Effect refers to people realizing they can be much more in control of their careers.

In simplest terms, Uber drivers are in control of their workdays. They can work as often as they want, whatever hours they want, and wear what they want while working.

Of course, it’s not complete anarchy. There are rules, there are expectations, there are standards. However, there’s also flexibility.

Along with more flexibility in scheduling, people want the following:

workload balance;
ability to trade shifts;
better communication; and
paid vacations.

Today’s modern scheduling platforms make it simple for operators and their leadership teams to meet these expectations. With these apps, operators and leadership can:

assign specific roles to individual team members;
communicate clearly with staff;
allow staff to trade, drop, and pick up shifts; and
fill available shifts.

One Size Doesn’t Fit All

Thompson has an interesting anecdote about availability.

A Chicken Salad Chick manager conducting interviews didn’t proceed with a candidate. Asked by Thompson why they wouldn’t be moving forward, the manager pointed to the candidate’s availability.

During the interview, the candidate provided only a single day and the manager felt that wasn’t enough. However, Thompson disagreed with the manager’s assessment.

What if, Thompson posited Thompson, their availability filled a currently open shift? At least there would be one less shift for leadership to worry about.

But it went deeper than just that point. Good operators and leaders know that job interviews aren’t one-way streets. Candidates are also interviewing their potential employer.

What if this candidate provided limited availability because they’re unsure about a particular employer? They may not know the brand all that well, they likely don’t know the leadership team, and they don’t yet understand the workplace’s culture.

As Thompson says, “One size fits all is over.” Operators and their leadership teams need to be flexible.

It’s highly possible that just a few shifts in, if the narrow-availability team member is a good fit and finds the job engaging, they’ll broaden they’re availability.

Developing the Culture

Of course, the above scenario comes down to culture. And Thompson has an interesting thought on that operational element.

If an operator isn’t constantly developing their culture, it will grow stagnant. Maintaining the current culture isn’t good enough.

Failing to do so will ultimately lead to a decline in guest satisfaction. When that happens, a decline in traffic comes along with it.

It’s really rather simple: How an operator and the leadership team treats employees trickles down to guests. Unhappy and unsatisfied staff provide poor service. How long are guests going to tolerate negative guest experiences?

And no, simply offering competitive compensation doesn’t automatically equate to treating staff well.

“Competitive pay, to me, is the cost of entry,” says Thompson.

To this point, the COO, also the self-appointed chief smile officer, addresses how the restaurant chain respects personal time.

Chicken Salad Chick, founded in 2008, is closed on Sundays. This isn’t due to any religious influence. Rather, the founders, per Thompson, were influenced by what they perceived as a high divorce rate in the restaurant space.

So, the brand wants employees to have family time. That’s also why there stores are also closed by 8:00 PM. In some cases, they close at 5:00 or 7:00 PM. Again, personal and family time.

Could they generate more revenue if they opened earlier and closed later? Probably. However, their culture is crucial to their success.

Takeaway

If operators want to begin the process of truly developing a positive workplace culture, there are several questions Thompson suggests operators and their leaders should ask.

Is the brand purpose driven? Does focus on fun, family, and culture?

How can the business offer incremental value to staff? Are the pay and benefits competitive? Is the workplace safe and are their opportunities for staff to advance?

What’s the community like within the four walls? How’s the energy within those walls?

Are the processes and practices in place helping or hindering recruitment and retention? How can the processes be simplified so employees learn what they need to know quickly?

How flexible is the business, honestly? What’s being done to truly help leadership create better relationships with the team?

Finally, I’ll end on something interesting from Grimes. Analyzing employee engagement, SMG has found that isn’t just about compensation.

In fact, when it comes to what makes most people perceive their job as fulfilling, the top influencer is working with people they like. Second is salary and benefits. Third, rewarding work.

Operators need to adapt to employee expectations, just as they need to focus on those of guests. Sitting down with their leadership teams to discuss Thompson’s questions is a great first step toward developing a culture that works and rewards.

Image: Priscilla Du Preez on Unsplash

October 29, 2021by David Klemt David Klemt No Comments

Creating a Strengths Profile

Creating a Strengths Profile

by Jennifer Radkey

When looking to improve the performance of your hospitality business it is natural to seek out weaknesses and attempt to “fix” them.

What if you were to take an entirely different approach?

Instead of focusing on weaknesses to improve upon, we should seek to identify and build upon our strengths.

Why Strengths?

Using our strengths is like writing with a dominant hand. It comes naturally and easily.

Strengths can be cultivated and used to assist in overcoming challenges and in improving upon weaknesses. If we were to focus only on improving our weaknesses it would be tiring, and the probability of giving up could increase.

However, if we focus on building upon our strengths, it would be motivating and energizing, therefore making us stronger and then more likely to overcome our weaknesses.

Lost and Found

Do you ever visit a restaurant, bar, or hotel and get no clear sense of their identity?

Maybe their menu is confusing, their social media presence is either nonexistent or only shares their daily specials, there is no consistency in service. They just seem…lost.

Now seriously take a minute and walk through your establishment with fresh eyes as if it were your first time there. Is your brand’s identity clear or lost? As we get wrapped up in the day-to-day operations and stressors, becoming lost can easily happen.

Identifying your brand’s strength profile can help you find your distinct identity again. Even if you aren’t lost there is always room to strengthen your brand.

The Background

In the field of positive psychology, psychologists Chris Peterson and Marty Seligman headed a project to seek out what characteristics describe humans at their very best.

After scouring literature, media, music, etc., spanning countries and history, they compiled a list of 24 character strengths that appear to be valued over time and culture.

This list was referred to as the Values in Action Classification of Character Strengths and Virtues (VIA). The VIA is meant to classify individual strengths but can also be applied to organizations and businesses.

The 24 Character Strengths

The list of strengths is as follows:

Creativity
Curiosity
Open-mindedness
Love of Learning
Perspective and Wisdom
Bravery
Persistence
Integrity
Vitality
Capacity to Love and be Loved
Kindness
Social Intelligence
Citizenship
Fairness
Leadership
Forgiveness
Humility/Modesty
Self-Regulation
Appreciation of Beauty and Excellence
Gratitude
Hope/Optimism
Humour
Spirituality

If you want to dive deeper into the VIA character strengths or would like to take the free survey yourself to find out what your top character strengths are, please visit www.authentichappiness.org through Penn State University and take the VIA Survey.

Creating a Strengths Profile for Your Hospitality Business

Now that you have the list of 24 character strengths, think about the top three strengths that you believe capture your brand at its very best. Think both about your venue’s operations and its messaging when deciding upon the top three.

Then ask your team to do the same. Hold a team meeting in which everyone shares which three character strengths they chose and why.

I recently did this with our team here at KRG Hospitality and found the process enlightening. It was fascinating to see which character strengths were repeated, providing clarity into our brand’s strengths profile.

Establishing Your Top Three

As you review everyone’s answers as to the character strengths they feel best capture your brand at its very best, take note of strengths that repeat themselves.

For us at KRG Hospitality, creativity, perspective and wisdom, and love of learning were the most common replies. We then had our strengths profile.

Discuss what you feel the strengths profile for your brand is with your team and solidify a top three.

What Next?

Once you have a strengths profile built, it’s time to dissect it.

How are you already using these strengths in both your day-to-day operations and in how you are representing yourself to the outside world? How can you use them in new and unique ways?

For example: If one of your strengths is creativity, are you using it to your advantage in many aspects of your business? Maybe your menu is super creative, but your social media posts are dull. Maybe your interior design is creative and fresh, but your training lacks creativity.

Is one of your top strengths kindness? What are you doing to emphasize that strength and is your community aware and benefiting from it?

Think about your strengths in new and exciting ways to energize your team and build an overall stronger business.

Shout it Out!

Take pride in your brand’s strengths. Make it known to your team, potential new hires, guests and potential guests what your strengths are by living them and growing them each and every day.

The stronger your team and your brand is, the more confidence you will have. With strong confidence you can approach weaknesses and obstacles with a healthy mindset and higher chance of success.

Take the time to really know your brand and understand how you are representing yourself and you won’t be disappointed. Cheers to personal and professional well-being!

Image: Pixabay on Pexels

Server walking through restaurant carrying tray

July 26, 2021by David Klemt David Klemt No Comments

4 Tips for Recruiting and Retention

4 Tips for Recruiting and Retention

by David Klemt

Operators seeking to survive and thrive despite the Great Resignation can give themselves an edge with these four concepts.

Attract New Talent

KRG Hospitality president Doug Radkey doesn’t find the struggle to fill restaurant, bar and hotel positions all that shocking.

Why? Because too many operators post generic, cookie-cutter job listings. Doing what everyone else is doing has never been advisable for those looking to stand out.

Instead, Doug suggests a more unique approach to job ads, an approach that helps operators stand above the competition.

Step one is avoiding banal listing language:

“Are you friendly, energetic, and highly motivated?”
“Are you an experienced and enthusiastic [insert position]?”
“The ideal candidate must work well in a fast-paced environment and be a team player.”
List of basic job tasks.

Instead, Doug suggests the following:

Hire for values rather than experience. Training addresses systems and standards, not personality and drive.
Operators should be transparent about their core values, company culture, and potential for growth.
Showcase the approach to inclusivity, diversity, acceptance, and flexibility. That is, if that’s authentic. If not, that’s a flashing, neon red flag that requires addressing.
Offer a living wage, benefits, potential for personal growth, and education.
Produce a video of team members sharing why they work at the company. This must be genuine and honest.

Demand creates competition. Innovation beats the competition.

Actually Onboard New Hires

So, an operator adjusts their approach to filling open positions. They recruit and hire promising employees.

Sadly, it’s common for new hires in hospitality and foodservice to leave in just a few months. Rather than accept this as the norm, operators have a tool at their disposal for improving employee retention: Onboarding.

Too many operators think the next step after hiring someone is providing a start date, showing them the front- and back-of-house, and hoping things will work out.

Well, hope isn’t a strategy.

The next step after hiring someone is onboarding and should include the following:

Complete all pertinent paperwork and setting up access to systems. If applicable, set up direct deposit.
Provide new hire with detailed employee handbook. If there isn’t one yet, that must be addressed.
Share the story of the business (history, area, etc.) and workplace culture.
Outline expectations: Policies, rules and responsibilities.
Explain benefits, such as health insurance and mentorship opportunities.
Provide training and assign shadowing.
Deliver feedback on trained tasks.

The above list obviously has room for more onboarding tasks. Operators should create a physical onboarding checklist. Also, they should require the person or people tasked with onboarding to complete and sign off the checklist (even if that person is the operator).

Nail recruiting, hiring and onboarding and word will get out. The result? Hiring gets easier and turnover decreases.

Focus on Workplace Culture

Doug addressed workplace culture and the labor shortage on Bar Hacks bonus episode number 16.

Simply put, operators need to take an honest look at their culture.

Is it inclusive and accepting? Transparent and nurturing? Do employees feel comfortable bringing up workplace issues? (More on that last one below.)

Hospitality is fast-paced and demanding—owners and managers shouldn’t add to the stress.

Why would anyone want to work in for someone who isn’t going to treat them and their coworkers with respect, mentor them and nurture their career, and value their input?

It’s every operator’s responsibility to be good stewards of hospitality professionals’ passion for this industry. We do them a disservice when we turn a blind eye to an unhealthy workplace culture that has taken hold, crushing their love of his business and driving them away.

Value Employee Feedback

Yes, guest feedback is valuable. However, so is feedback from employees.

It’s important for operators to remember not to focus solely on guests.

True, a business isn’t a business without customers. Equally true: It’s not a business without employees.

So, operators should foster a work environment in which employees feel comfortable sharing honest feedback. This is, of course, where culture comes into play.

If employees don’t feel safe sharing their opinions and suggestions, operators won’t truly know what it’s like to work for them. Without that feedback, employee turnover will skyrocket, recruiting and hiring will be an endless struggle, and the guest experience will suffer.

We all know what happens if guests pick up on an uncomfortable restaurant, bar or hotel environment: They don’t return.

Operators can’t expect their businesses to thrive (or just survive) if they focus solely on guests.

Putting these concepts to work can help operators succeed despite the Great Resignation of 2021.

Image: Shangyou Shi on Unsplash