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December 19, 2024by David Klemt David Klemt No Comments

Bar Hacks: ReFire: Episode 1, Part 2

Bar Hacks: ReFire: Episode 1, Part 2

by David Klemt

The second of three real-life hospitality scenarios discussed on the new Bar Hacks: ReFire podcast deals with onboarding.

More explicitly, I, along with cohost Bradley Knebel, client services director at Empowered Hospitality, look at a situation involving onboarding, training, leadership, culture, and potential imposter syndrome.

Our goal with every episode of ReFire is for listeners to gain valuable insights into bar, restaurant, and hotel operations.

Whether you’re a bar owner, manager, or aspiring hospitality professional, these episodes of Bar Hacks offer a wealth of knowledge and strategies to navigate the challenges of running a successful bar or restaurant.

Below, a transcript of the second part of the first episode of Bar Hacks: ReFire. For the lightly edited transcript of the first situation we addressed, click here. Bradley and I jump into each scenario cold (for the most part), so the tone is conversational rather than formal. In other words, they sound better than they read.

Cheers!

The ReFire Format

David: So, for the audience, what happened is, I sifted through… I’m basically going through online—there’s subreddits that, basically, everybody knows there’s a subreddit for everything. Good or bad, there’s a subreddit for it. Servers have a subreddit. Bartenders, chefs, bar owners, restaurant owners, hotel owners… I mean, they all have subreddits. And then there’s just, you know, forums all over the internet. You can find pretty much any topic. And so, I’m kind of sifting through these for real-world situations. And the caveat there is we’re gonna take these at face value, for the most part. Unless someone is like, “I’m just kidding,” like, “I got you all like in the comments…”

But we’re going to accept that these are really happening, because anyone in the industry knows if you’ve been in there, you know, for a few years, everything happens in this industry. So, a lot of this stuff is believable, even as outlandish as it might sound. The only thing I’m going to do, really, and Bradley’s going to do when we bring these topics up, is we’re not going to read them verbatim. We’re going to summarize. And the reason for this is I don’t want people to get doxxed. I don’t want them to, you know, get review bombed because someone decided, “I’m going to side with the server on this and let’s review bomb this operator.” You know, things like that.

So, we’re trying to be general but still get to the crux of the situation, and I’m sure they’ll get more specific as we go. I chose three to start with; hopefully, we get to all three. If we have a great conversation on, like, the first one or two, we’ll save the third one, or you know, however it works, for the next one. But that’s how this is gonna work. I’m sure it’ll evolve, ‘cause I’m not, like, a strict, like, “Oh, this is how it’s going to be” ‘cause it’s quote-unquote “my podcast,” because I’m not like that. We’re going to have fun with this.

Situation 2: Imposter Syndrome and Onboarding

David: So, situation two. This bartender, the way they phrased it, I don’t think they ever did a year straight with one employer. And I’m not saying that’s a bad thing. Like, it’s like you just said, it’s a transient business.

Bradley: Transient.

David: The experience they had was, I’m gonna go with, like, “high-volume,” but you know, it’s a college bar, a dive bar, which I… Apologies to Travis Tober, he does not like that term. He likes “neighborhood bar,” and I agree.

Bradley: I also could have felt like something like an Olive Garden or an Applebee’s, especially because they talk about how many steps there are.

David: Good point. It could be a neighborhood chain restaurant, and they’re behind the bar. That’s absolutely possible. It’s not the Baccarat Bar, we’ll just put it that way, where their experience came from.

They got hired by a more upscale, higher-end venue. They were given one training shift. And from what I could determine, the cocktails routinely had a minimum of six ingredients. So, lots of steps, and yet it was still high-volume because it was a popular bar.

So, it’s high-volume with a lot of steps, which.. That was cool, you know, call it a dozen years ago, 15, when, like, “Wow, I’m gonna wait ten minutes for this cocktail ’cause it’s supposed to be awesome.” Where now people are like, “I don’t care if it’s 30 ingredients, I want this thing in three seconds ’cause I’m not standing here, and your team is supposed to be high volume.”

So, they got the one training shift—that was it. And the ownership and leadership team appears to like to sit at the bar. And I don’t know if this is when they’re working; that wasn’t made clear. But the person feels they’re being scrutinized. They have questions. It sounds like they asked a question, at least one question, and got a very, in their opinion, terse and impatient reply. They now perceive this culture as they do not have patience for questions. “I have to just know my job. I’ve got to get these cocktails down. I have to be perfect.”

And I’ll kick this off by saying it is possible this person is just so in their head because it’s imposter syndrome, and they got one training shift, and now they, because it’s one training shift, are in their head, saying, “I have to be perfect now; I had my training shift. I can’t ask questions because I’m going to get fired or they’re going to give me less shifts because I don’t know, quote-unquote what I’m doing.”

So, it’s possible that just they’re not confident because they’re in their own head. However, that still had to come from somewhere. So, I do believe someone maybe—and I don’t even know—they gave him a short answer or a bit of a terse reaction because they’re just, maybe they’re having a bad day or they weren’t even thinking. They just threw an answer out and to them it’s not a big deal. It wasn’t a, a short or curt answer because that’s not how they meant it. They’re just like, “Yeah, you just do this,” and they walked away.

So, I think we both agree though that this does sound like we’re rubbing up on a culture issue, within the business. But they weren’t even trying to throw the ownership under the bus. They were just like, “Do I quit this job and go for something I’m more used to, or do I stick it out because this is more money?” It’s a higher-end venue, the tips are better. And I mean, the general consensus appeared to be like, “No, you stick it out. You can figure this out.” It’s bartending: If you did high-volume in an easy call bar, that’s still brutal. If you run a high-volume college bar, you’re getting destroyed. So, you should be used to it.

Just One Training Shift?!

Bradley: If it’s just Vodka Sodas all night, with splash of cranberry, or making, yeah, or you’re making, like, Death & Co. drinks to bring Dave back into the conversation, you know, bartending is hard. And, you know, there’s a reason that most volume bartenders, usually the higher volume the bar, the less touches there are. The less, kind of, ingredients per cocktail, right? It’s built for speed and efficiency.

So, I agree with you that this sounds a little bit like this person may be in their head a little bit, and maybe second-guessing themselves, or needing to build their confidence. But there’s a lot of things about this case that I think a lot of people can learn from. And the biggest flag to me is if this is an upscale cocktail bar, and if their signature ingredients have six- to eight-plus steps, which, first off, like, combine some of those into a cheater bottle or something. Like, come on, that’s crazy. But even if all of that is true, one training shift is absolutely not… Like, that, to me, is a huge flag. If I came into a bar, no matter if I’d been bartending for six months or six years, if I walked into a new space and they said, “Great, you get one shift, and now you’re on service bar,” like, that just is not a recipe for success, you know? And so, the reason that you and I kept talking about this being a cultural piece almost more than a training piece is, why is there only one training shift?

Are they just churning through people so fast that they literally just have to be live instantly because the owners are sitting at the bar constantly critiquing everybody? And are their cocktails built for their concept? And I think that is a big issue. If you have that many steps in your cocktails, but you have 150 covers in your space, like, there’s no way that those two things are going to meet. Even if you have 30 covers in your space, there’s no way that those two things are going to meet.

If it’s a purely cocktail bar where people are supposed to be coming in, and getting a bunch of different cocktails, and ordering something different every time. And so for me, from the employee standpoint, there are a few things that I would question, and I take issue with. Well, is this place set up to support me? You know, it’s funny because the last question, we talked all about the employer standpoint, right? Like, the employer standpoint against the employee. But it is a relationship. And it is, when we talk about interviewing a lot, right, that interviewing needs to be a dialogue. It isn’t just me asking you questions, you answering questions, and then “boom,” question two. It needs to be a dialogue.

And I think employment is a dialogue, right? You’re giving just as much to your employer as they should be giving to you. And that is in training, that is in culture. And so, how are they supporting you and your growth? And it sounds like here that they’re not, from a technical standpoint. And, like, I think it’s what probably most of the people on the thread were saying is, you can learn anything. You can learn all these cocktails.

Three Months

Bradley: Like, this is going to sound really dumb, but when I first started bartending, ’cause I am a virgo and a perfectionist and a Millennial, so, like, all those things just combined into a terrible mixture. But the first time I started bartending, I literally sat home. I didn’t have any pour spouts. So, I may or may not have borrowed them from work—I’m sorry, boss, I’m telling you this 20 years later—and put them into empty wine bottles. And I just practiced, because we also had to do counts instead of jiggering. And so I was just practicing until I figured out how it all kind of worked together.

And then the next thing is, you know, I tell people this all the time, that it takes three months just to figure out what your job is, and how to be good at it. Not to be good at it, just how to be. There’s different cultures, there’s different steps, there’s different people you’re dealing with.

How do I show up on time? What is my uniform? How do I get it cleaned? Where is everything set? What is my opening side work? When is lineup? Who are the regular guests? What do people usually order? What am I recommending? There are so many pieces of a job, especially in the dining sector, that come together that it takes you three months just to figure out. “Okay, what am I actually doing? How do I actually do it? What does success look like? What is my team here? And are they supportive or not supportive? And who can I lean on? And then also how do I get better?”

And then it takes another three months to get better. Whenever I’ve promoted a server assistant to a server, a server to a sommelier or a captain, you know, prep cook to a line cook, like, garde manger to, like, flat top, or if they’re looking, working on a grill. No matter what your promotion is, and actually the biggest one is from line level into management, right? So, like, going from a server or bartender into a manager for the first time is, give yourself some grace. It takes three months just to figure out what the heck is going on. Like, who’s here, who are the players, what am I doing, what’s important, how often do things rotate, how much do I really need to know these things? And that takes you another three months just to build that skill set. And so, if you’re working for an employer that gives you one training shift and then is critiquing you for not being perfect right off the bat, to me, that’s less of a flag of you not being a skilled bartender and more of a flag of this is maybe not a place that’s going to be supportive for knowing that the restaurant industry is so transient.

And the restaurant industry is a lot of times almost like the gig economy. Before that became my thing, it was the pre-gig economy. Are they going to be there to really help your growth, and as things change, and as you either get another bartending job—because very few bartenders have one job, they tend to have two or three. So, if you get another job, if you are in school, if you’re an actor or in some sort of artistic discipline and are going to need to go on show, how supportive are they going to be in view of that lifestyle? Or if you’re a dedicated bartender full-time, then this doesn’t sound like a bar that’s going to dedicate timing to you to grow.

So, my biggest pushback to this employee is, hey, get out of your head. You’re not going to be perfect. Like, you have to learn it. But is this a place that’s going to support you, or is it time to look somewhere else? Because I’ll tell you one thing—going to the last one (the first story of this episode). So, we’re in a talent shortage, still there. There is a plethora of jobs out there. And talk about the one job that’s almost most in demand on the front of house side, it’s bartenders. Bartenders who have done it for six months. When I was bartending and when I was hiring bartenders, especially pre-pandemic, if you didn’t have bartending on your resume for two years you wouldn’t get an interview. Now, if you’ve had bartending on there for three months, great, let’s go in. I’m going to ask you what a Cosmo is, and if you can answer, that’s question one, check. Different game.

Leadership Sitting at the Bar

David: And my one of my flags was: Why is management or leadership, if they’re sitting at the bar, I’m blown away by that. Like, what are you doing?

Bradley: That’s, that’s a revenue-generating spot. Yeah.

David: You just decided to voluntarily give up money. I don’t understand that. Like, what are you doing? And then do you micromanage everybody, or is it the bar team? And again, it’s perception. Like, did this person, every time they happen to look up because they’re not confident in themselves, perhaps do they think they’re being stared at by this team that’s not even looking at them? They just re looking around, like, “Hey, you need to touch that guest. That’s a VIP; we should go say hi. Those people look new, look like they’re having a blast. Let’s go introduce ourselves.”

We don’t know exactly what that was, but if you are micromanaging, I have a big issue with that because no one performs well under that kind of pressure, really. I mean, maybe a 20-year veteran bartender who’s like, “Yeah, you can micromanage me all you want, I don’t care. I’m gonna get this done, get my tips, and get out of here. Like, watch me all you want. I’m not doing anything, so go for it.”

But I do wonder… I mean, I don’t want, I don’t ever wanna see leadership or management lean against the bar, even a little. And sitting at the bar when they’re working, like, that’s not okay with me at all. I mean, yeah, you check in with the bar team, but you can do that from the side of the bar, you can go behind the bar, but to sit there… And now guests are like, “Why? Is this person, is this bartender not doing the right thing?” It just, it leads to a lot of questions either from the guest side, which you definitely don’t want, and from the team side, like, “Wow, this team, the leadership team, doesn’t trust me. And I (ostensibly) did nothing wrong, and they just are watching me like a hawk. Like, did I do something wrong?”

Like, it’s just, to me, it’s just too many questions. And I know there are people who, they’re micromanagers, but then maybe they need to be moved or spoken to or something. You just can’t do it that way anymore. It just doesn’t, it doesn’t work. And if you, if you are behaving that way, then why’d you hire this person? If you’re just going to watch them like that, then they shouldn’t have been hired or you’re in the wrong position, to be honest. Like, maybe you shouldn’t be a manager. Like, sorry, but that could be.

Coaching, Holding People Accountable, and Setting Standards

Bradley: I think there’s a big difference between coaching, holding people accountable, and setting standards versus micromanagement, right?

David: Absoutely.

Bradley: I think a lot of that—I mean, there’s a lot of very, I mean, specific differences—but I think it really comes from, are you doing it for the employee’s benefit, or are you doing it to control the output? Right?

So, you are never going to be able to replicate yourself. And this idea of people saying, “I need to find somebody who’s just like me, who’s going to do this just like I’m going to do so I don’t have to manage them,” is a fallacy. That’s not true.

It’s all about building standards, building practices, and holding people accountable, and coaching them in the moment, but not doing it through fear or doing it through anxiety. Because what does that do with somebody being watched, but they’re being watched with a knownn critical eye? Like, if somebody’s just being watched and, like observed, that’s one thing. If somebody’s being watched and observed where they know that they’re being nitpicked and critiqued, they’re going to fumble.

Think about it: No matter how confident you are, somebody comes in and says, “I’m going to rate you today.” The nerves happen. I mean, to use the Tokyo Olympics, like Simone Biles, even people at the highest caliber can get nervous when they know they’re being watched, and they know they’re being critiqued. And so, that has a whole separate issue. I just watched that documentary. But it really shows that we as human beings, we want to know our boundaries, we want to know what success looks like. We want to be helped and given the tools to achieve success. But if you’re just constantly nitpicking and aren’t, like, really helping me get there, then you’re just creating moments for me to have anxiety and get stressed. It’s just going to make me perform worse instead of better.

David: I did an assessment not long ago. Flew in, get there, and rumors already started like, I’m there to fire people. And that’s not what I… You’d have to, like, punch me in the face for me to be like, “You need to fire this person.” Like, that’s not what I’m there for. And turned out they had a platform they were using, and the bar team was really, they weren’t all outgoing [toward me]. When I was just trying to just talk and see what their guest service is like. How chatty they were. Just kind of watch them a little bit.

And the one bartender was like, “Oh, you’re from this company, right? You’re here to test us, right?” And I was like, “Do you want me to test you?” Like, what would I be testing on, cocktail builds? I’m like, “No, that’s not why. I don’t work for that company, and that’s not why I’m here. But if you want me to test you, I will.” And, then I got him to calm down, and he then totally relaxed. The rest of the bar team relaxed. So, yeah, if they even have an inkling that someone is in there to evaluate them, that’s a lot of pressure. I feel the same. I feel the same way when the client is watching me assess their team… They’re like, “Well, why is he watching that? Like, what does he see? Like, I feel pressure a little bit. I don’t want to screw up an assessment. Like, I don’t want to interpret this wrong. Yeah, it’s just pressure that you don’t need to put on someone.

Is There Even an Onboarding Process?

David: And also, before we on to the next one, it does make me think that there isn’t a onboarding process. And if there is, you have a training shift, and then now you’re a bartender. It’s like, okay, but if you’re micromanaging, I really don’t think that you have an onboarding process. Because if you did, you would trust the process, and let these people assimilate and get in their own grooves.

They’re not gonna work exactly how you expect them to. They’re bartenders, servers, whatever; they have their experience. They do what they’re gonna do behind the bar. They hold jiggers differently. They sometimes build cocktails a little bit differently. It just happens. So, I just don’t think that you actually have onboarding, and I definitely think, “Do you have manuals? Really?”If you are going to sit there and stare somebody down while they do their job that kind of brought that red flag where I don’t think there’s onboarding.

Bradley: I absolutely agree that there’s none. And I also have to wonder about people in that sort of environment. Because we’re kind of leaning towards we think that this is a pretty, maybe, aggressive micromanaging environment, which I think it is. At least, the person who wrote this thinks it is. But in those environments, too, the staff tends to band together a little bit, for better or for worse. And so I also wonder if he’s reached out to other bartenders. It’s like, “Hey, can you help me get this cocktail? I can’t figure it out.” Or, “How did you get faster at this?” Because, especially if it’s a tip pool, and whether tip pools exist in the restaurants at large or not, a lot of them in New York City do, but most bars are pooled in general just because it’s easier. And so, it incentivizes every other bartender to want you to be just as fast as they are. And so, is either this person too nervous to ask another bartender for help, or does the bar in general have a culture of just, kind of, like, sink or swim? Which, my very first server shift in my entire life was a sink-or-swin shift, and I had never served ever before. And I’ll tell you that that was a terrifying and terrible experience. Apparently I did okay, but it felt shitty the whole time.

So, culture starts the very first day. Culture starts, actually, during the interview process. And so, this employee doesn’t feel like they were set up for success. If they were set up for success, then they’re not the right fit for the company culture, where they just aren’t the right fit for what this bar is trying to do. But it also sounds like the owners, and/or management, and/or leadership could use a little bit of a, “Hey, you have to trust the team. You have to trust the process.”

“If you can’t trust the team, it’s the process that’s wrong.”

If you can’t trust the team, it’s the process that’s wrong. The training process is wrong. Your coaching and standards process is wrong. Your communication of systems is wrong, or you don’t have any. Also, again, there should never be a cocktail—and you, some people, will disagree with me, but then you can charge $50 for them—there shouldn’t be a cocktail that has that many steps to create. Especially if high-volume has anything to do with the bar concept.

David: Yep. There’s a bartender, bar owner out here in Vegas. They don’t like all the steps for a Sour, and they have developed a technique to remove one to two steps, make it that much faster. Their whole team knows it; anyone who’s working behind the bar there knows this technique. So, yeah, adding steps is… I have zero problem with keg cocktails. I think people for some reason think they’re hilarious. I mean, look at all the pour walls. People are like, “I’m gonna come to this bar and restaurant, and put money on a card to serve myself drinks.” Like, people like this kind of stuff. So, you can take steps out. Like you said, if you can can make housemade ingredients that much faster, then those are the right steps to take. And I’m sure the bar team would be like, “Yeah, we can do this if you’ll let us do it.”

Bradley: We had a rule that a drink on our menu should never have more than three touches. Right? You have the base spirit, you have one juice, and, you know, it was always, like, the combining of other ingredients, and then either one more or a bitters or something. Maybe you had four touches at the most. But you’re not sitting there trying to like reinvent the wheel every single time. If you always have a one-to-two ratio of a ginger syrup to some other juice, then just put it in a cheater, just put it in a bar bottle, and just have that two-to-one ratio because also you know it’s already measured, right? And so, prep, absolutely, just in the kitchen and in the bar, is the best recipe for success.

Going way off tangent for this topic, but it sounds like very little process exists here, right? There’s no onboarding process, there’s no training process. It seems like there might not be a good feedback process or coaching process. There’s definitely no bar process that I think is really setting the team up for success. Or this person is just so under-qualified and over-exaggerated that they came in and just, essentially, they’re like, “Oh, you’ve got this. You can do this in your sleep,” right? And then left. So, there’s something weird happening here. But I definitely think that it’s a mismatch between employer and employee.

“It’s all solvable.”

David: Yeah. And we’re not trying to roast the owner because we don’t know how much of this is true. Again, like I said in the beginning, we are taking these at face value, just as learning opportunities, really. So, it’s not like we’re like, “Oh yeah, this operator is terrible.” There does seem to be…there’s an issue. And again, the issue could literally just be this person is convinced they faked their way into this job ,and now it’s coming home to roost. And they have zero confidence because they’re trying to mask that: “Man, I probably don’t belong here.”

Which, again, I think is silly if you can learn this. And again, like, to your point, is the bar team cool enough to be like, “Hey, this impacts all of us. It impacts the servers. If this bar is slow and our drinks are slow, like, we all need to be…we can help you improve this.” Like, “Let’s do this.” And they obviously saw something in this person to hire them. I’m hoping it wasn’t just “here’s a body” if it’s a more upscale, higher-end spot.

So, that should tell them, hey, you got the job—nice. Gotta keep it. And you’ve done high-volume, most likely. If you worked in a college bar or a neighborhood bar, you’ve probably done volume. So, now it’s steps. It does suck: There are at least six ingredients in some of these signatures. Hopefully, there’s also, you know, people drinking G&Ts and Jack & Coke, and not a big deal. But this isn’t something that can’t be solved. And it’s either on the process side and leadership side, or it’s—

Bradley: Or it’s imposter syndrome.

David: Yeah, exactly. So, it’s just, what is the actual issue? It’s all solvable, is the great part of that one.

Note: Transcript provided by Eddy by Headliner, edited by author for clarity.

Image: Canva

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November 8, 2023by David Klemt David Klemt No Comments

US Restaurant Employment Still Short

US Restaurant Employment Creeping Toward February 2020 Levels

by David Klemt

Keep pushing. We have work to do to reach February 2020 employment levels.

After what appeared to be a strong September 2023, restaurants and bars saw a decline of 7,500 jobs in the month of October.

In fact, the strong numbers from September were notably weaker once revised. After revisions, eating and drinking businesses added 48,300 jobs, not the nearly 61,000 from preliminary reports.

Importantly, a correction in employment numbers for August 2023 has revealed further declines. Initially, reports stated that restaurants had added 14,400 jobs. Unfortunately, the corrected number showed that restaurants shed 9,300 positions.

However, context is important. Notably, the unemployment rate in the US has remained under four percent for nearly 24 months. As of the latest reporting by the US Bureau of Labor Statistics, unemployment is at 3.9 percent.

Numbers by Restaurant Category

The data in this subsection comes from the National Restaurant Association. As the NRA notes, this information is based on data from September 2023.

These numbers should provide further context for restaurant and bar’s current situation. Some restaurant categories are struggling more than others to reach or surpass pre-pandemic levels of employment.

Below, employments numbers for September 2023 in comparison to February 2020.

Full-service: -214,000 jobs
Quick-service and Fast Casual: +128,000 jobs
Bars and Taverns: +50,000 jobs
Cafeterias and Buffets: -36,600 jobs
Catering and Mobile Food Service: +14,900
Snack and Non-alcohol Beverage Bars: +107,000 jobs
Foodservice Contractors: +15,100 jobs

As you can see, full-service restaurants are struggling the most to reach pre-pandemic employment numbers. However, QSRs and bars have surpassed that milestone.

By the Numbers

Below, the change in employment in each state and Washington, DC. The time period the data span runs from September 2019 to September 2023*.

Alabama: -5,700 (-3.4%)
Alaska: +100 (+0.4%)
Arizona: +18,200 (+7.6%)
Arkansas: +7,900 (+8.1%)
California: +32,700 (+2.2%)
Colorado: +9,100 (+3.8%)
Connecticut: -1,200 (-1.0%)
Delaware: +2,500 (+6.4%)
District of Columbia: -2,500 (-4.5%)
Florida: +35,200 (+4.4%)
Georgia: +21,800 (+5.5%)
Hawaii: -4,900 (-6.9%)
Idaho: +7,000 (+11.5%)
Illinois: -11,000 (-2.3%)
Indiana: +7,900 (+3.2%)
Iowa: -200 (-0.2%)
Kansas: +4,800 (+4.7%)
Kentucky: -400 (-0.2%)
Louisiana: -9,000 (-5.2%)
Maine: -4,000 (-7.9%)
Maryland: -16,700 (-8.0%)
Massachusetts: -15,600 (-5.6%)
Michigan: -21,400 (-6.3%)
Minnesota: -9,000 (-5.2%)
Mississippi: -1,700 (-1.7%)
Missouri: -3,500 (-1.5%)
Montana: +4,500 (+10.7%)
Nebraska: +600 (+0.8%)
Nevada: +22,300 (+16.7%)
New Hampshire: -1,500 (-2.9%)
New Jersey: +7,400 (+2.7%)
New Mexico: +3,100 (+4.2%)
New York: -10,000 (-1.4%)
North Carolina: +12,900 (+3.3%)
North Dakota: -100 (-0.3%)
Ohio: -6,300 (-1.4%)
Oklahoma: +3,600 (+2.5%)
Oregon: -2,000 (-1.2%)
Pennsylvania: -5,600 (-1.3%)
Rhode Island: -2,000 (-4.3%)
South Carolina: +1,000 (+0.5%)
South Dakota: +3,100 (+9.4%)
Tennessee: +8,000 (+3.0%)
Texas: +74,200 (+6.6%)
Utah: +12,900 (+12.0%)
Vermont: -1,000 (-4.7%)
Virginia: -100 (-0.0%)
Washington: +3,900 (+1.5%)
West Virginia: -2,600 (-4.6%)
Wisconsin: -8,100 (-3.8%)
Wyoming: -100 (-0.5%)

Ups and Downs

First, the less-positive news: restaurant employment is below pre-pandemic levels in more than half of the country. Including Washington, DC, 27 states are still lagging behind September 2019.

However, in some cases the change is negligible.

For example, Wyoming is down just 0.5 percent, and Virginia is down just 100 jobs or 0.00033 percent. Of the 27 states seeing declines, 20 are down less than five percent in comparison to September 2019.

Of course, it’s important to note that Hawaii, Michigan, and Massachusetts are down more than five percent.

So, to the good news. Two dozen states are enjoying restaurant and bar employment above September 2019 levels.

Four states are up more than ten percent. Nevada is leading the way, up 16.7 percent. Next is Utah, up 12 percent. Following in third is Idaho, up 11.5 percent.

Takeaways

Restaurant employment’s pre-pandemic peak was in February 2020. As of the most-current data, we’re down 14,000 jobs.

According to the most recent data, restaurants and bars employ 12.32 million people in the US. While we have yet to reach the 12.34 million that were employed in February 2020, we’re not far off. We still have reason to be positive about recovery.

The larger threat looming over operators is rising costs. Additionally, depending on the source, a recession is either a possible or current threat.

Of course, there’s still increasing demand from consumers to gather at restaurants and bars. So, again, there’s reason to remain positive.

This is all to say that numbers without deeper understanding and nuance only provide surface context. They can make us panic or breathe a sigh of relief, seemingly at the drop of a hat. We can either worry that we haven’t reached the pre-pandemic milestone, be positive that we’ll reach that number in the near future, or decide that perhaps that metric shouldn’t be the primary one by which we measure recovery.

In short, operators positioning themselves for long-term success understand their market, their teams, and their guests; focus on staff and guest retention; develop community engagement and support; and have strategic clarity.

*Sources: US Bureau of Labor Statistics, National Restaurant Association

Image: Tim Mossholder on Unsplash

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

December 10, 2022by David Klemt David Klemt No Comments

Leadership Facepalm, Part Three

Leadership Facepalm, Part Three

by David Klemt

We almost got to next year without another viral leadership facepalm moment but then an Olive Garden manager sent a memo.

In case you’re unaware of the now-infamous Olive Garden memo, here’s a recap:

Zero tolerance for calling off.
Sick team members must come in and prove they’re ill.
If someone’s dog dies, they must bring the dead animal in to prove its death.
Family emergencies are not private and must come with an explanation.

The manager who authored the memo also takes time to boast about their perfect attendance record.

For the curious, the first entry in our leadership facepalms is here. Part two is here.

The Letter

Below you’ll find the letter, addressed to “ALL Team Members.” To read it in its entirety, click here.

“Our call offs are occurring at a staggering rate. From now on, if you call off, you might as well go out and look for another job. We are no longer tolerating ANY excuse for calling off. If you’re sick, you need to come prove it to us. If your dog died, you need to bring him in and prove it to us.”

I highly doubt that’s Olive Garden or Darden policy.

“If its a ‘family emergency’ and you can’t say, too bad. Go work somewhere else. If you only want morning shifts, too bad go work at a bank. If anyone from here on out calls out more than ONCE in the next 30 days you will not have a job.”

It doesn’t get any better when the manager brings up their own track record:

“Do you know in my 11.5 years at Darden how many days I called off? Zero. I came in sick. I got in a wreck literally on my to work one time, airbags went off and my car was totaled, but you know what, I made it to work, ON TIME! There are no more excuses.”

Interestingly, the manager implies they’re speaking for all the leaders:

“Us, collectively as a management team have had enough.”

A Breaking Point

First, I’m not pretending a staggering amount of operators, leadership teams, and team members aren’t at their breaking points. The labor shortage and staffing struggles are a real crisis in our industry (and others, of course).

Second, I’m not suggesting that operators and their teams aren’t justified in their frustration and anger.

If we’re to accept just this year’s reporting alone, it appears many people are comfortable being rude to service workers. It’s a disturbing trend, and it’s motivating people to leave public-facing roles. As they’re leaving, many are swearing off the hospitality industry entirely.

Third, I think the memo above highlights our need to address mental health in this industry. Sure, it’s easy to write this manager off as a jerk and terrible leader. But what if we look at this through the lens of stress?

The memo could easily be the manifestation of a breaking point. It’s also possible the entire management team was behind this email.

Damage Done

Let’s look at this situation solely as an example of poor judgment and leadership. Imagine the damage it could do to any restaurant or bar, chain or independent.

What do you think a memo like this does to the ability to recruit? To retain? How does such an email do anything but exacerbate labor problems?

Darden, Olive Garden’s parent, went into crisis management mode when this memo went viral. It appeared on Reddit, was picked up by news outlets and other websites, and exploded.

Ultimately, Darden terminated the manager to whom the memo is attributed: “We strive to provide a caring and respectful work environment for our team members. This message is not aligned with our company’s values. We can confirm we have parted ways with this manager.”

The Olive Garden location in Kansas where this situation took place may recover. They’re a large chain, people tend to have short memories for news, and regulars will likely stay loyal.

But what if this occurred at an independent restaurant? The damage could be irreparable.

Work Culture

Now, it should be obvious that from a simply operational standpoint, this situation highlights an unhealthy work environment and culture. That should go without saying.

So, instead I want to say something else.

Operators need to check in with their team members. Leaders, front of house, back of house—everyone. Stress levels are reaching breaking points and every one of your team members needs to know they matter, they’re safe, and they’re supported.

Check in. Survey your team. Be empathetic. And if you’re an operator, you need a support system of your own.

Being a leader doesn’t mean being infallible. It’s not poor leadership or weakness to admit you need help.

Image: Nik Shuliahin 💛💙 on Unsplash

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

June 6, 2022by David Klemt David Klemt No Comments

Back of House Report: The Labor Challenge

Back of House Report: The Labor Challenge

by David Klemt

A recent report from Back of House reveals opportunities for operators amidst the current staffing challenge.

In their report, the restaurant technology platform suggests effective hiring and retention solutions. For example, helping staff find meaning in their work.

To download and access the report in its entirety, please visit BackOfHouse.io.

For some of the platform’s insights into staffing, keep reading.

Why People Leave the Industry

Obviously, people take jobs for a variety of reasons. Often, a person’s first job has one or two motivations: money and/or experience.

Some estimates put a gig in the restaurant industry as the first job for a third of Americans. In Canada, restaurants are the top employers for those under 25 years of age.

However, Back of House sees value in looking at a different metric: Why people leave the industry.

As Back of House states, knowing why someone would leave their job helps an operator determine what benefits to offer to retain talent.

Now, it may be tempting to assume pay is the top reason people leave jobs. Per Back of House, however that’s not the case. Broken down by age group, below you’ll find the reasons people are leaving hospitality:

Pay: 26 to 35
Schedule: 46 to 55
Lack of opportunities: 26 to 35
Lack of benefits: 26 to 35
Work environment: 18 to 25

Look at these issues through the lens of someone moving through life. When first entering the workforce, more people want to find the right employer and workplace. From their twenties to thirties, more concern is placed on moving up, making more money, and receiving benefits. And, per Back of House’s findings, time becomes more of a consideration as people age.

Meaning and Value

Per Back of House, there are two important elements of employment that keep people engaged.

One, meaning in the work they do. In other words, feeling that their work has value. Two, staff want to feel that they’re employers value them.

Of course, both make sense, no? If a person doesn’t see their role in the industry as valuable, they’ll always be looking for the escape hatch. And if they feel that they’re employer doesn’t value them, why would they continue working for them? People, as they say, quit bosses, not jobs.

So, Back of House recommends that operators demonstrate they value their team members by:

investing in their staff;
supporting their staff; and
respecting their staff.

Now, good leaders should already do all of the above. It should go without saying but if someone feels a lack of respect, support, and interest from their employer, they’re not going to remain in their role for long.

And who could blame them? That seems like a terrible workplace and a waste of a hospitality professional’s valuable time. Time, of course, that can be better spent finding a good leader to work for who will help them progress in their career.

There are further insights one can glean from Back of House’s report. To download “Understanding the Staffing Challenge,” please click here.

Disclaimer: Neither KRG Hospitality nor its representatives received compensation to promote this report. The team at KRG simply feels all operators will find value in downloading and reading it, and considering the information contained therein.

Image: Joao Viegas on Unsplash

Close-up shot of person texting on phone in a restaurant

April 12, 2022by David Klemt David Klemt No Comments

Leadership Facepalm: Don’t Do This

Leadership Facepalm: Don’t Do This

by David Klemt

Here’s a hot take on the employer-employee dynamic: Don’t text staff at 3:00 in the morning demanding they come in on their day off.

In fact, let’s compress this piece of advice. Don’t text staff at 3:00 in the morning.

Really, I shouldn’t have to explain the myriad reasons that doing so isn’t acceptable. However, a post on Reddit shows that this topic needs addressing.

Are You Serious?

Yes, I’m using a Reddit post as an example of what not to do. And yes, I’m going to assume the post is legitimate for the purposes of education.

Owners, operators, and members of leadership teams need to lead. Micromanaging, assuming staff is at their beck and call, and domineering behavior only lead to high turnover.

A high staff churn rate is costly, and not just financially. Yes, it costs thousands of dollars to replace a single member of staff. However, immediate financial costs shouldn’t be the only concern.

Churning through staff also damages a restaurant, bar, hotel, or owner’s reputation. Should they become known as a bad employer—word gets around quickly in this industry—and eventually an operator won’t be able to hire rock star talent.

Over time, they’ll only draw in workers that chase away their guests. After that, the operator will be closing the doors.

“You Need to Be a Team Player”

Interestingly, the Reddit post that’s inspiring this article isn’t brand new. The post in question is about six months old.

But these days, with the shift in the employee-employer dynamic that’s taking place, stories of “epic” or “savage” quitting garner attention.

Again, there are myriad reasons people are drawn to these stories. Rather than read through those, let’s take a look at this quitting story.

A bartender took to Reddit (again, I’m assuming this is a fact) to share texts from his (former) manager. The timestamp on the first text? 2:59 in the morning.

“I need you to come in from 11a-10p today,” starts the text. The reason? Only one bartender is on the schedule for an event that day.

In response, the bartender says, “No thank you,” stating it’s their day off. And then the manager makes a demand using a term that gets thrown around far too much when some people in a position of authority don’t get the response they want (in my opinion).

The bartender is told they need to be a “team player,” and that “it isn’t all about you.” On a positive note, the manager does then say “please” and asks the bartender to come in.

Putting their cards on the table, the bartender says they’ve had a few drinks and don’t want to work an eleven-hour shift with a hangover. Personally, I don’t think the manager was due that explanation but okay.

This doesn’t sit well with the manager, who now attempts to police the bartender’s personal time. According to the texts, the bartender needs “to stay ready for work.” This is apparently because “getting too drunk is not a good look if you can’t stay prepared.”

“Fed Up with You”

After a few more texts back and forth, the manager fast-tracks this situation’s escalation. The bartender is told that they’re going to talk about the bartender’s “attitude” when they “come in Sunday.”

Well, it’s highly unlikely that conversation ever took place. According to screengrabs of the texts, the bartender replies, “No we’re not.” They then proceed to remind the manager that “dozens” of places are hiring bartenders. They’re happy to go work for one of those businesses.

Unsurprisingly, the manager attempts to backpedal. They say that the bartender is making a rash decision “because you’re drunk” and will regret it the next day. That approach doesn’t work.

Now, there’s one sentence that suggests to me, if this situation is real, that the owner needs to address this manager. Or, if this manager is the owner of the business, that they need to work on developing leadership skills.

That line? “I’m fed up with you.”

Sure, they could mean they’re fed up with them in this instance. However, the line follows the bartender saying that their are several other places they can find work instead.

My interpretation is that at a minimum, these two have a problem with one another. Worst case, this manager isn’t doing the owner (or themselves) any favors with their “leadership” style.

Just…Don’t Do This

Please, please, please, don’t text or call staff at 3:00 in the morning. There are perhaps a tiny handful of reasons to ignore this advice. As I see it, those reasons all involve emergencies.

And no, being short-staffed for an event the following morning is not an emergency worthy of texting or calling an employee to cover a shift so late at night/early in the morning.

There are several leadership and scheduling solutions that can prevent this type of situation. In this particular instance, since the bartender was “fed up with” this manager, they were going to quit sooner or later.

Which brings me to my first point: Operators need to know what their leaders are doing. How are they treating staff? How does the staff perceive the leadership teams?

Secondly, how do the operator and other leaders perceive one another? Is everything running smoothly or is one “leader” not really leading?

And finally, scheduling technology. These days, there’s really no excuse for many kinds of scheduling problems. Several scheduling apps integrate well with popular restaurant, bar, and hotel POS systems.

For example, HotSchedules gives staff the ability to give away, swap, and pick up shifts. Another example is OpenSimSim, which provides an open shift invite feature. Staff can also set their profiles to auto-accept shifts as they become available.

7shifts and Schedulefly can also help fill shifts. And like HotSchedules and OpenSimSim, leaders can message groups and individuals, and vice versa.

Perhaps the biggest takeaway here is this: The maxim, “People don’t leave jobs, they leave managers,” is accurate. Leaders need to respect their team members and their personal time.

Image: Alex Ware on Unsplash

November 8, 2021by David Klemt David Klemt No Comments

You’re Competing Against Chains for Labor

You’re Competing Against Chains for Labor

by David Klemt

Independent operators and local chains aren’t just competing with one another for staff, they’re up against global brands.

Unfortunately, that means competing against massive corporations that can offer higher wages and all manner of benefits.

However, smaller operations can still take steps to lure workers and fill open positions.

The Threat

In response to the labor shortage, many national and global chains are increasing hourly wages.

For example, Chipotle boosted wages for hourly workers to $15 per hour a few months back. Along with this boost in wages came a hike in menu prices: four percent across the board.

Earlier this year, McDonald’s also announced they would boost hourly pay. Hourly workers saw a boost of about ten percent. Of course, this chain also found itself dealing with increased supply costs. To offset a rise in costs of at least four percent, McDonald’s also boosted menu prices.

The latest to enter the labor fray is Starbucks. And like other chains, the corporation addressed the issue of hourly wages publicly.

Indeed, Starbucks’ announcement shares several details. First, staff who have worked for the company for a minimum of five years could see a pay raise of ten percent. Those who have been with the company for at least two years (but less than ten) could get a raise of five percent.

However, it doesn’t end there. Starbucks workers in the United States can take advantage of $200 referral bonuses. On average, Starbucks says hourly wages will range from $15 to $23 per hour, with an average of $17 per hour. The company expects these wage changes to be in place by Summer 2022.

Solutions

Of course, one doesn’t have to need revenue in the tens of millions or billions of dollars to compete for staff.

We’ve addressed this topic several times on the KRG Hospitality site. In particular, we’ve brought up increasing menu prices to support wage hikes. Specifically, we recommend borrowing from Chipotle and McDonald’s: Be transparent and explain why menu prices are going up.

Additionally, Bar Hacks guests like Chef Brian Duffy and Lynnette Marrero have spoken about this topic.

As Chef Duffy says during his second appearance, treating staff better is a big step toward reducing turnover. Word spreads among hospitality workers, and improved employer-employee relations is an excellent recruitment tool.

Another effective benefit? Flexible and improved scheduling which, of course, can be implemented easily via scheduling apps.

Mentorship is a powerful recruiting and retention tool. Both Chef Duffy and Marrero believe in the power of this benefit. They have decades of experience to pass on to staff that can help their careers.

Marrero also suggests implementing labor structures that corporations don’t offer. For instance, she suggests new operators are well positioned to offer earned equity, profit sharing, and co-op ownership structures.

Existing operators can also leverage Marrero’s ideas. However, they’ll need agreement from their investors if they have any.

Now that you know where labor threats are coming from, you can strategize and fight back. You may not have billions of dollars in the bank, but you’re nimble and can implement changes much more quickly. Listen to your staff and be open to making meaningful but reasonable concessions.

Image: Fernando Venzano on Unsplash

Chef's knife and honing rod crossed on cutting board

October 20, 2021by David Klemt David Klemt No Comments

Incentive Economy: What are You Offering?

The Incentive Economy: What are You Offering?

by David Klemt

You know about the gig economy but are you familiar with the incentive economy?

It’s quite simple, and there are myriad ways for operators to engage with it. In fact, you likely already participate in the incentive economy in some way.

To put it succinctly, the incentive economy is all about the perks of a job beyond a paycheck.

The Old Ways are Out

On episode 53 of our Bar Hacks podcast, Chef Brian Duffy addresses the need for changes in our industry directly.

First, he tackles the lack of transparency in leadership by some operators. As Chef Duffy says, “That’s an old school way of doing it. That was an old school way, that was the Eighties.”

According to the chef, and we wholeheartedly agree, we now find ourselves in a “different phase” in the industry.

Then, Chef Duffy takes on how leadership in the industry treats staff.

One effective recruiting and hiring incentive Chef Duffy offers on the podcast deals with scheduling. None of his cooks close both nights of a weekend. He also posts schedules two weeks in advance so there are, A) no surprises, and B) if staff need to swap or drop, they have time to do so without impacting the business.

This simple scheduling incentive is attractive to new hires and existing staff. Why? Because working unpredictable, erratic hours is stressful.

“That ruins your life,” explains Chef Duffy.

If operators want to attract new hires, keep their team together, and reduce turnover, listening to staff about scheduling is crucial.

Things Need to Change

Chef Duffy shares a story on the podcast about his daughter and her experience working at a restaurant operated by a hospitality group.

No, he doesn’t name the group or the concept. The who isn’t the point here, it’s the what.

That what is how leadership bungled not only a scheduling issue but also how they botched Chef Duffy’s daughter’s two-week notice, her final shifts, and her final pay.

For more context, his daughter wasn’t a new hire who bailed after perceiving she had been treated poorly. She had worked at that restaurant for a year, there were ongoing issues, and she finally left.

As we all know, we’re down about a million jobs in this industry. That loss isn’t simply because of the pandemic. Our industry is undergoing a seismic cultural shift and we’re losing people who won’t return to hospitality.

Things need to change if we’re going to reverse this trend and strengthen the industry. KRG Hospitality president Doug Radkey addresses the change we need in his latest book, Hacking the New Normal. Chef Duffy addresses some of the necessary changes on our podcast as well.

“We can complain as much as we want, but we created it,” Chef Duffy says. “We as owners and operators and managers, we created what’s happening right now.”

Get Creative

The only limits to incentivizing your staff are your imagination, staying consistent with policies and procedures, being respectful of your staff and guests, and the law. Remain in those confines and get creative.

An incentive doesn’t need to be a grand gesture or prize. In many instances, something that makes a shift more fun and breaks up the monotony is enough to energize the staff.

“I want my staff, I want my front-of-house staff, to know what my sales goal is for the day,” says Chef Duffy. “And then I want to run a contest with that.”

One of the chef’s favorite contests is simple and highly motivating: Follow the Twenty.

Chef Duffy puts a twenty-dollar bill into play against a particular item or menu category. For example, either a specific dessert or any dessert.

Whenever a team member sells a dessert, they get the $20 that’s in play. If a different person sells another dessert, they get the twenty. Follow the Twenty incentivizes the first person to sell more of an item to hang onto the money, and the game motivates the rest of the staff to outperform their coworker to get the prize.

The last member of staff to sell a dessert that shift or day keeps the money.

Offering another creative incentive he’s seen, Chef Duffy shares that there’s a restaurant out there offering a free tattoo to kitchen staff that stays for at least 30 days. Will some staff leave after they get their tattoo? Possibly. Hiring wisely, implementing training policies and procedures, treating staff with respect, making scheduling easier and more flexible, ensuring clear communication is embedded in the fabric of your brand’s culture, and offering further incentives can prevent that turnover.

Offer Ongoing Education

“We live in an incentive world now,” says Chef Duffy. Explaining that he doesn’t operate large kitchens, large bars, or employ large teams, he admits he can only do so much in terms of incentives.

However, his approach to incentivizing staff to stay starts with this example of true leadership: “The one thing I can do is treat my employees well.”

With decades of experience in the industry, Chef Duffy’s knowledge is something he can offer his staff. A big believer in education, passing down information that can enrich team members’ careers and lives is an incredibly valuable incentive.

During a recent training session with a very young kitchen staff, the chef started with the very basics of education.

“Hey, guys, here’s a knife. This is a knife,” he said to the kitchen staff. “There’s seven different parts to a knife. Here’s the most powerful part, here’s the most precise part. This is how you hold it, this is what we do…”

Just reading that, it may seem like Chef Duffy was being condescending. That’s not the case. He wants to share as much of what he’s learned over the years to pass on his collected knowledge.

“I want people to feel as if they’re gaining something from me and the knowledge that I have rather than, ‘Go cut those onions and I’m gonna yell at you if you do it the wrong way,'” says Chef Duff.

Make Meaningful Change Today

Making impactful change can feel overwhelming. Let’s face it, it’s easier to just stay the course. But these days, staying the course can cost you your staff, then your guests, and then your business.

One way to start making change is to look inward at yourself, and at your leadership team.

Are your staff gaining anything from you beyond a job and paycheck? Is your leadership team mentoring and incentivizing staff? Are you, your leaders, and your team happy at work?

If the answer to those questions is “no,” do what’s reasonable to improve your brand’s work culture.

As Chef Duffy says, “The whole dynamic of it has to change and we have to take better care of our employees.”

Image: Steve Raubenstine from Pixabay

March 18, 2021by David Klemt David Klemt No Comments

Is Gen Z the Workforce Solution?

Is Gen Z the Workforce Solution?

by David Klemt

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

Invest in people, don’t just hire them. That means training and developing their skills and careers.
View hiring and training as investments, not costs.
Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash