Anyone familiar with comic books knows that Superman’s weakness was kryptonite. Throughout history, mankind has faced great adversaries that test who we are. It’s when we face those demons and take the challenge to tackle them head on that we find our true strength.
This industry is bittersweet at times. It can be extremely rewarding and it can just as quickly chew you up and spit you out. Some might think that working in the industry is a roller coaster love affair. You really do have to love it to get through the low days. In the end, it truly is a reflection of the phrase "what you sow you’ll reap."
Entry into management is a special passage all to itself. For some it is an honor to become a manager. For others, it’s a curse. 81% of new managers say they did not receive the proper training before making the jump over to management. That is truly a sad fact. To think that people are put into a position of influence and receive very little training is...
The dream to open a restaurant is alive and well here in America. The good news is that around 5,300 new restaurants have opened from 2012 to 2015. Real estate is booming and if you look around your city you’ll see new construction sites popping up. If you have the money, you can easily open a restaurant.
The bad news is that It’s estimated that 50% close their doors by year three. Of those that survive, most just limp along. Basically breaking even. Let’s get this clear from the start, you go into business to thrive and make a profit.
“I think I’ll start a restaurant to break even.” -Said no one ever
So how do restaurants get in this trap? What happens from when they open to the point they have to close the doors? It can be summed up in five words: they become addicted to average.
If you remember back in school, we were graded on the bell curve. The bell curve was created to provide a “fair” distribution of grades among...
Is the sea of restaurant options out there does your brand stand out? So many fail to capture the attention of their guests and just blend in with the many. The main reason is that they send mixed messages about who they are. Listen, when you are confused about who you are and what you stand for, how do you think your market will react to you? Lukewarm at best. Sure, new guests might stop in out of curiosity. If you don't deliver a solid message, they won't be back.
Let's explore some common mixed message mistakes and a 3 step plan to correct course:
Your sign out front, your website, and Yelp all say you're an Italian restaurant. Yet when guests come in and see your menu you can tell by the look on their face that they are confused. Asian Chicken Wings? Baja Fish Tacos? Bacon Wrapped Filet with French Demi Glacé? Oh, and in the corner 4 pasta dishes. Hmmm. What is going on here? You say Italian in all your marketing and when they get there, very little Italian...
A year ago I had a challenge with a chef. He wasn’t open to new systems or following through on some projects he started. He basically just wanted to order high end ingredients and play with food. Didn’t care about food or labor costs because that would stifle his “creative genius”.
We had a coaching session one afternoon and I mentioned the challenge of our industry changing and that he needed to adjust his skill sets to focus more on business. His only comments were: he felt he worked his ass off, he deserved a promotion (a better title) and he wanted more money.
As he walked away, I felt frustrated, and a little pissed off.
How could he be so blind as to his real performance level?
How could he not see that he was focused on just what was in this for himself?
I knew unless something changed, we would be having a different conversation in the near future about him leaving the company (that conversation happened about 2 months later).
Word on the street is there is a labor shortage for restaurants and bars. They call it the war for talent. If you really look closely, the true is that is really is a war WITH talent. As an industry we have held tight to outdated management techniques like carrots and sticks. They just don’t work.
How about that old mindset that you must “break them down first, and then build them back up”? Really? When you break people down you end up with broken people. That is not smart business. You need to rethink how you think about hiring.
Asset or Liability
When you look at hiring do you view it as a necessary evil? Do you think of your team as an investment in your brand or just an expense line on your financial statements? There is a phenomenon called the Pygmalion Effect. Basically, it a cognitive bias that says what we expect we tend to get just like a self-fulfilling prophecy. If you think your staff is lazy and incompetent? Guess what you tend to see? You got it....
7. 38. 55.
Those three numbers are critical to understand how we communicate with each other. Seven percent of how we communicate is the choice of the word or the word itself. Thirty-eight percent is the tone. Have you ever heard someone say, “I don’t care for your tone?” That’s exactly what they meant. The biggest shocker is the last number 55. Over half of how we communicate is through non-verbal language. It’s definitely a reinforcement of the classic saying, “It’s not what you say, it’s how you say it.”
Think about your restaurant for a second. What nonverbal communication is your restaurant telling your guests? Before we dig into why this is so important, we’ll need to dive into the world of cognitive biases.
We live in a world where millions of bits of information are coming at us every second. In order to process everything, we tend to create mental shortcuts. Now some shortcuts like cognitive maps...
If restaurants had water coolers to hang around and talk all day about the gossip of the moment, it would be about food cost. This topic is the thorn in the side of many a restaurant owner, operator and chef, each trying to walk that fine line between creativity and profitability.
In the classic 1972 book, "Cooking for Profit" by Robert Petrie, the author outlined the original "40 Thieves of Food Costs." This concept of food cost thieves has been circulating around ever since. There are many variables as to why your food cost may have gone astray. The number one concern most restaurants struggle with today is controlling those costs. Let’s take a look at the four big ones and help you dial in the food cost monster.
Not costing out your menu
You would think this is a no-brainer but you would be totally shocked and appalled at how many operators do not know what it costs to put out each plate in the restaurant. Do you think for one second that Apple does not know how much it...
Guest Blog Post by Mark Chase, Restaurant Real Estate Expert
“In all my years as a restaurant coach, consultant and operator I can tell you first hand that restaurant location and lease negotiation is more important than most people think. Getting an expert to help answer questions is important. Mark Chase is such an expert.” -Donald Burns, The Restaurant Coach™
1. Net Charges and Common Area Maintenance (NNN/ CAM)
Commercial properties including, shopping centers and free standing restaurants typically require the Tenant to pay a portion or all of the properties expenses as "Additional Rent". The charges may include maintenance and repairs of the common walkways and parking lots, security, property management and utilities for common areas. The Tenant will also pay their share of property taxes and property insurance. NNN charges for each year are estimated and paid monthly with your rent payment. These charges are usually defined on a monthly or yearly price per...
When you opened your restaurant you had big dreams and a plan. Then there was a change in the market and perhaps your plan went astray. It happens. Actually, it happens all the time. Many restaurant owners get stuck during those challenges. They lose their faith and become prey to self-doubt.
Then comes the friendly advice from a “friend” (even though they have never owned a business themselves). Out of desperation, you listen. You add this and that, hoping to revive your brand. It might get a few new customers in the door, however the more you stray away from your original brand identity, the more customers you lose. It becomes a very turbulent ride. Welcome to the slow death of your restaurant brand.
So, what’s an owner to do? Here are 5 powerful tips to get you back on track.
1. Be Honest
First you need to be honest with yourself. You also need to take personal accountability for where you brand is now. It’s easy to point the finger and place blame.
How many restaurants have you been to where the server comes over and automatically starts into the canned sales script they are told to recite with the energy of a sloth? Enough already. Upselling is dead. That's right, today's customer is far too overstimulated with about a 1,000 other sales pitches every day from their mobile phones, email, Facebook, Twitter, Google+… they are everywhere!
So, how does a restaurant increase sales if upselling is a dead end? Simple. We need to change our mindset and focus to build better rapport. Here are 4 ways to get you down a better path to profits.
4 Alternative Ways to Increase Profits
1. Be Guest-Centric
Very few things are as frustrating as someone trying to get you to buy something you have no interest in. The canned “welcome” scripts at most restaurants are truly stale and delivered in a way that would not inspire most customers to buy the item being pitched. The reason they have lost their effectiveness is...
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