Faster.

Posted on 26. Jan, 2012 by in Daily Tip, Inside Hospitality

The objective for 30 days is to re-evaluate every process, system, activity, responsibility and ask:  “How can this be done faster?” You will find the team enthusiastically participating since this focus has an immediate impact on their work

Once a year at the very least, ask the question and get the team involved.   A contest is an option though you will find that most staff will enjoy suggesting how to get the job done faster, easier and simpler.  There are no rules, no bad suggestions; only ideas and more ideas.

Routine produces efficiencies, consistency brings productivity but “sameness” gives a team lack of awareness.  Are the tasks performed really necessary?  Are there alternatives?  Food preparation, cleaning and training are but a few areas to watch.  Think about every interaction with the guest and how the team communicates.  In the age of wireless, blue tooth ear pieces might provide communication around the restaurant; the iPad can offer a portable POS which then extends the dining room to events, the meeting room next door and the food fairs.  Old fashioned 3×5 index cards remain a priceless tool and we will never stop using post it notes.  Integrating new technology might be a benefit or might cause a training nightmare for each new staff member.  Feedback is important for every scenario.

Instead of assuming all is “OK”, setting up a 30 day review with a focus on “faster, simpler, easier” is a reminder to the team that the restaurant leadership is interested in new solutions which can make the job easier (and more fun).   This gives a boost for morale and offers those who like to gossip something more positive to chat about than silly talk.

Be sure to include marketing , mystery shopper services, better management processes, paperwork, how guest complaints are handled.  Making a list of topics in advance gives everyone a starting point.

To improve business, you need the cooperation of the team.  To improve production and efficiencies, you need to have new ideas.  Call it group think, call it a month of brain storming….   Take 30 days to inspire and lead the team to avoid the boring sameness of the past.

Restaurant SEO and Online Success

Posted on 16. Jan, 2012 by in Daily Tip

Restaurateurs are in the sights of every sales person with a marketing tool or widget.  Online marketing is wrapped up into as many packages as a company can invent.  The first business owner who becomes a target seems to be restaurant owners.  (Sad)  If you are a restaurant owner, you know this already and you are well aware that will either call, email or visit you until they have worn you down.
Only a very small fraction of the sales folks know the true nature of your restaurant business and most basing profits and return on investment on numbers which have no reality to your business. (Though on the surface the numbers almost seem to make sense.)
The list of opportunities starts with

  • Restaurant review sites
  • Restaurant directories
  • Restaurant online order services
  • Non-Restaurant Directories
  • SEO experts
  • Web designers
  • Social media managers
  • Website packages of every size and shape imaginable.

This is only the proverbial tip of the iceberg.  It used to be tough enough to “fight off” the sales folks who sold advertising via print, newspaper and phonebooks.  The Internet has created a monster for the restaurant owner and with the accelerated advancement in technology, the restaurant owner is falling behind daily (Even while working very hard.)  This leaves the restaurateur at the mercy of sales folks who know how to make their product look good. (Because it is shiny, your competition is doing it or it is “better” than you can do on your own.)
The first choice is to say NO to everything.  Don’t trust ANYONE.  If there is a belief that only 10% of those selling marketing products and services are truly helpful, that leaves the restaurant owner actually making the right choice.

By saying NO to EVERYONE, that makes them 90% correct.

However, if there is a belief that even though the sales person wastes time and offers aggressive pitches, there is 50/50 chance that the product or service may in fact help with sales and profits, saying NO to EVERYONE has you turning away opportunity.
The typical restaurateur is dependent on DIY (Do It Yourself) and already knows their checkbook will not support hiring a website designer for thousands of dollars.

Nor is a restaurateur interested in complicated software which pulls them away from business (or family).

What is the answer?  Is there even a chance for the restaurant owner?

You can turn to restaurant consultants who guarantee satisfaction, who have a free consult available and have decades of experience.   Such a restaurant consultant will help you create a plan which integrates your online presence with your community while maintaining a listening ear to the voice of the guest with services such a world class mystery shoppers program.
That being said, here are a few tips for how to move forward to improve the online presence and get a bit of SEO juice along the way.
These are mostly free or low cost and guerrilla marketing in every sense of the word.

  • Restaurant review sites
    • Claim your restaurant on each one and link back to your website.
    • Use only the free option.  (You may get a call from a sales person with a pitch)
  • Restaurant directories
    • Claim your restaurant on each directory and link back to your website
    • Use only the free option.  (You may get a call from a sales person with a pitch)
  • Restaurant online order services
    • This one is tougher because it must integrate with your current POS system.
    • Refer to your POS vendor for which systems work best with their software.
  • Non-Restaurant Directories
    • Claim your business in online yellow pages directories and include a link to your website.
    • Examples include:  YP.com and Dexknows.com
  • Maps
  • Places Page
    • Google offers businesses a free page which connects to Google Maps.  Claim your business and include a link to your website.
  • SEO experts
    • The more knowledgeable SEO experts for local restaurant know there is not a high enough ticket to have your business get the ROI which pays for their services.
    • Your SEO plan will be in the directories above, Facebook and social media. (including Youtube)
  • Web designers
    • How about a free website built for you?  www.freewebdesignpro.com builds a free website (WordPress) for you.
    • You pay for hosting at a rate of about $10 a month and the first 30 days is a free trial.
  • Social media managers

are but a few examples for how you too can use free tools to automate (if that is what you choose)  Or you can choose to extend the conversation beyond the four walls of your restaurant … two minutes at a time.  The tools make it easy to reach out to guests.

  • Website packages of every size and shape imaginable.
    • Commonly there are “communities” created by a software geek or sales opportunist who will tell you that you will have a page on their “restaurant resource” which is in essence a directory.  They can then charge a nominal fee low enough to keep a restaurant from feeling uncomfortable.\
    • Since they are just a different twist of a directory, participate at the free level unless traffic is proven.

The list of choices above can help a restaurant with an online presence.  It is also “work” which can be as tedious as washing dishes.  Scheduling 2 hours a week to work on the list above will help your online presence and not interrupt the flow of business.
There are exceptions to every tip and saying NO to EVERY sales person is probably not a good plan.  Fortunately there are restaurant consultants who understand what it takes to change reality from being stuck to positive growth.

About the Author:  Michael Hartzell – Certified Guerrilla Marketing Trainer & Coach, Inbound Marketing Certified Professional.  Read more at www.michaelhartzell.com/restaurant-marketing

Four Ways to Beat Your Restaurant Labor Budget

Posted on 03. Jan, 2012 by in Daily Tip

While the New Year has begun, a new reality may not have set in.  To break new barriers and not only meet but beat labor budgets, old mindsets must be left behind to make room for better solutions.  Tips for controlling labor costs in a restaurant to consider:

Schedule based on the quarter hour

The purpose is not to nickel and dime every minute, it is to create smooth and productive transitions for team members as they arrive and depart.  Scheduling the bulk of the restaurant team to arrive and depart at the same time creates a cluster of “hellos” for 30 minutes.  Productivity is impossible and efficiencies dwindle.  Execution excellence drops to minimum as the shift change occurs.  Early morning becomes “coffee hello” and the later nights become a time for keeping company instead of meeting deadlines.  By scheduling based on quarter hour increments; productivity increases, efficiency improves, supervisors have more opportunity to connect with individual team members and there is an improved focused on what is most important:  The Guest.

Budget for 10% less

Question:  Do you believe that if sales increased your team would rise to the occasion and take care of business?  Do you believe they have the skill to continue to take care of guests and exceed expectations unexpected sales bump occurred? Would a 10% sales increase?  Instead of 100 guests, there would be 110 which is easily accommodated for.

If you believe that your team can handle the 10% unexpected sales increase and continue to excel, schedule for 10% less sales the next week.  If sales drop slightly because of unexpected events, there is much less concern for “cut labor”.  Should sales maintain at their “normal average”, the team that you believe in will make the necessary adjustments.

New habits and routines will be needed but in a short time, the new adjustments will become the natural order of things.

 Labor Productivity vs. Labor %

Scheduling based on labor productivity (Sales / labor hours) is an excellent method to do on the fly calculations and for those who rely on fingers and toes for math, labor productivity shines.  Labor productivity relies on # of hours and there is no extrapolation necessary when on the phone talking to the supervisors or via an email which talks about “labor”.

Since the automated tools have calculated and estimated labor cost percentages, there are fewer people who can grab the calculator and extrapolate how many hours it takes to keep the labor at a specific percentage.

For teaching new supervisors about labor control, labor productivity remains a common language since the only two variables are Net Sales and Labor Hours used.

By having a simpler method to track and communicate expectations, more awareness and an understanding for how to schedule and control labor occurs (even when there is no computer handy).

The primary leader must have the ability to control the average wage and set up a schedule based on productivity.  Since computers now do most of the work, average wage can be monitored easily.

Hire a Vet and receive tax credits  (Hire Heroes Act of 2011 was signed into law)

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that the Congress provides to private-sector businesses for hiring individuals from nine target groups who have consistently faced significant barriers to employment.

The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability.

WOTC joins other workforce programs that help incentivize workplace diversity and facilitate access to good jobs for American workers.

On November 21, 2011, President Obama signed into law the Vow to Hire Heroes Act of 2011, which amends and expands the definition of WOTC’s Veteran target groups

You will want to review ETA’s WOTC publications provide a plain-English overview of the program:

Here are the 3rd Edition of ETA Handbook No. 408 for the WOTC Program, published on November 2002 and its August 2009 Addendum, provide additional information on this program:

Details of Tax Incentives for Hiring Veterans

The Act encourages employers to hire qualifying veterans by expanding and extending the existing Work Opportunity Tax Credit (WOTC), which was set to expire after December 31, 2011.  The Act:

  • Extends the expiration date of the WOTC for qualified veterans, so it now applies to employers hiring qualified veterans who start work on or before December 31, 2012.
  • Increases the existing WOTC available to employers hiring veterans with service-connected disabilities who have been unemployed for at least six months, from 40 percent of the first $12,000 of wages (up to $4,800 per worker) to 40 percent of the first $24,000 of wages (up to $9,600 per worker).  The WOTC for employers hiring veterans with a service-related disability within one year of discharge from service remains at 40 percent of the first $12,000 of wages (up to $4,800 per worker).
  • Expands the availability of employer tax credits by creating the Returning Heroes Tax Credit that provides a credit to employers hiring qualified veterans who have not suffered a service-related disability.  The new credit is 40 percent of the first $6,000 of wages (up to $2,400 per worker) for qualified veterans who have been unemployed for at least four weeks, and 40 percent of the first $14,000 of wages (up to $5,600 per worker) for qualified veterans who have been unemployed for at least six months.
  • Streamlines the process for certifying that a veteran meets the definition of a qualified veteran.
  • Allows tax-exempt organizations hiring qualified veterans to receive a credit against payroll taxes calculated in the same way that the WOTC is determined, but using 26 percent of the qualified veteran’s wages instead of 40 percent of wages.  Only wages for services in furtherance of the tax-exempt organization’s exempt purpose can be used to determine the credit.  Prior to the Act, no credit was available to tax-exempt organizations.
  • Continues to provide that no credit is available if the worker performs less than 120 hours of service for the employer, and that if the worker performs less than 400 hours the percentage of wages used to compute the credit is reduced from 40 percent to 25 percent (or from 26 percent to 16.5 percent in the case of a tax-exempt organizations).

Tens of thousands of dollars have been saved with these special programs in my  many years in the restaurant business. Thousands of dollars can be saved while putting veterans back to work.

Extreme focus and conversation each day about labor costs will drive the team to think of nothing else.  Since labor is the one line on the P&L which can be impacted immediately, cutting labor may be used to solve other problems on the Profit & Loss Statement vs. getting to the real issues.

The most important element to beating your labor budget in the restaurant is:  Increase Sales.  If there is only conversation about cost control; at the end of the month success with lower costs is not going to sustain the business long term.

Consider scheduling on the quarter hour, have faith in the team by scheduling based lower sales, use “labor productivity” as the means to track and communicate labor and most of all; consider hiring a hero.

About the Author:  Michael Hartzell – Certified Guerrilla Marketing Trainer & Coach, Inbound Marketing Certified Professional.  Read more at www.michaelhartzell.com/restaurant-marketing

 

 

 

 

 

 

Dead Man Walking

Posted on 01. Jan, 2012 by in Daily Tip, Inside Hospitality

There have been at least four periods in the last 40 years when you would have called me a “Dead Man Walking.”  This was the direct result of 70+ hour weeks working in the food service industry.  The food service industry was not to blame, it was much more related to the commitment to create success.

When I was an older boy 24 years old was the first experience of taking on the world by using time and effort.  Being the “smartest person on the planet”, I had the burden of trying to fix anything in my path.

This led me to become a Dead Man Walking.  70 hours a week is not so tough.  10+ hours a day, 7 days a week can be done.  An extended period of doing this over many months results with bags under the eyes and a non-connection to people.  Reality becomes blurred where there is no sense of best or worst.  Real emotions fade away and words such as “love”, “hate”, “appreciate” or “inspiration” are left behind a wall.  Survival is the most important priority since there is a never ending movement.

For a Dead Man Walking, “I don’t care” is used as easily as “That doesn’t matter to me”.  A Dead Man Walking feels little pain, little joy and is focused on accomplishing the mission:  More sales, more profits, and a better business.  Stand in the way of a Dead Man Walking and prepare to lose a little blood for he has nothing to lose since he is already in survival mode.  Decisions by a Dead Man Walking begin to blur and right or wrong is misunderstood.  “Whatever it takes” is most important.  Risk?  What risk?  If there is a chance, that is enough for a Dead Man Walking.

There was a reward during the first time this occurred:  Accelerated learning and experience.  What can be learned in a year in this scenario would take others five years to learn.  Even so, I vowed to be more cautious with extreme commitment in the future.  Dale Carnegie reminded me:

 “Flaming enthusiasm, backed up by horse sense and persistence, is the quality that most frequently makes for success”. – Dale Carnegie

Armed with the quote above, a few years later, an opportunity was given to me to “temporarily” move to California with a promotion.  I said yes because “this is different, this isn’t the same as before” and I had flaming enthusiasm (I was missing the horse sense).  Sure enough with three locations and no management team, the Dead Man Walking returned.  Committing to the 70+ much more hours per week was supposed to be “temporary” after all.

Yes, there was an award, reward and trophy at the end.  “Most profitable location in the company”.  Even with the award, I afterward reminded myself:  “Caution.  No more.  It is not necessary to over commit to get the job done.”  Then the words of Henry Ward Beecher come to mind:

“In this world it is not what we take up, but what we give up, that makes us rich.”  – Henry Ward Beecher

Not heeding the two previous warnings to myself, two additional opportunities became ones which I “had to pursue”.  In both scenarios, there was a demand which took me into a 70+ hour work week for an extended period of time.  I found myself again reaching beyond my limits to accomplish what I knew had to be done.  One was as a restaurant owner and the other was as a coach for nine locations spread over three states.

Yes, again there were awards and rewards at the end.  “Best in the USA”, winning big prizes, cash and checks along with trophies.  The recognition did not balance the equation for the other losses in regards to health, relationships and deeper understanding of the real issues.  Then Michael Jordan would be profound and I would keep going:

“I’ve failed over and over and over again in my life and that is why I succeed.“ – Michael Jordan

In all cases, I had purposefully accepted roles in scenarios where a company had not paid attention to the leadership in place.  The reasons were different in every case.  For some there was a complacency, a disregard and/or distractions and in some cases “fate” which caused the operations to shrivel and begin to die.  For all, there was “no leadership team” which caused everything else to crumble.

There are many others in the restaurant businesses today who are following a similar path.

To overcome the higher minimum wages, the increase in government taxes and regulations and the new economy; you will see “Dead Men and Women Walking” as many try to achieve success from sheer “will power”.  Maybe you feel there is something here that might even relate to you?

With all the technology, books, consultants, software, video cameras, social media and automated systems such as a point of sale: A leadership team is still required for success.

There is a direct correlation between the ability to avoid becoming a Dead Man/Woman Walking and developing a skilled leadership team.  The sooner that is done, the more quickly success is achieved and the less likely to become numb and dumb to reality.

If you are a leader, can you recognize those who are already “Dead Men/Women Walking”?  Be careful before you answer.  One of their abilities is to appear sane, balanced, caring and logical even when they are not.  What management processes do you have in place to measure their development?  Does it matter?

If you are in the trenches as a restaurant owner and/or operator, do you need a place to turn in order to avoid the calamities?  Reach out to IHWorx and have an easy conversation about the future of your restaurant business.

One book which had an impact was “Man’s Search for Meaning” by Viktor Frankl.   It is not about restaurants, hospitality or business.  It is a book about survival.  This book helped me to recognize there are prisons beyond those with bars and cement walls, even in a restaurant business.  I highly recommend it.

When it is all said and done, is Sophocles correct when he says:

“Success is dependent on effort.” -  Sophocles

If that is so, then I recommend you focus more effort on developing a highly skilled leadership team vs. cooking, analyzing reports, dishes, cooking and worrying and trying to save the day on your own.

 

About the Author:  Michael Hartzell – Certified Guerrilla Marketing Trainer & Coach, Inbound Marketing Certified Professional.  Read more at www.michaelhartzell.com/restaurant-marketing

 

 

 

 

“Do – Overs”

Posted on 19. Dec, 2011 by in Daily Tip

The year comes to the end and are you calling “Overs”.  I want a “Do Over”.

“Overs” – I wish I had not hired that person.

-          If only the money I gave that salesperson was still in the bank.

-          What if I hadn’t told that employee angry words?

-          What if I had not skipped over the profit & loss reports?

-          Why did I not listen to those guests who said “bad food”?

-          When did the morale begin to slip so badly?  Can we go back?

-          Let’s go back in time and do the maintenance on the equipment (Now that it’s broke down.)

-          Yes, working 65 hours a week is a lot, but I did it for us honey. Please don’t divorce me.

-          Doctor, you don’t understand.  There is no one else who can do what I do.  I have to work more!

-          Sure, it seems obvious now that when competition opens next door that it would be tougher.

-          The franchisor said “Do it”, so I did.  Now I wish I hadn’t.

-          If only I had not let my personal feeling get in the way of firing that employee.

-          That guest blog I wrote six months ago was lame.  I wish I could un-write it.

-          How much time did I waste on what everyone else said was important? Now I wish I hadn’t.

-          If only I had taken a more long term strategic approach with marketing my business online.

-          If we had used Inside Hospitality’s mystery shopping services all year, we could have had better result.  “Overs”.

Do you have any memories of “the wish for doing something over”?  Have you pushed them out of your mind and wish the problems to disappear on their own?

Not that any of those on the list above were mistakes.

At this stage in life, I never make a mistake.

Though there are things that I will do only once and never again.

It is interesting that we almost instinctively know the right things to do when it comes decision time.

The little voice in our heads says; “You are the exception”, “You can do it better”, “Play the odds”, “It is do or die”, “Your competition is doing it”.  As a restaurant owner or leader, there are few who are fully aware of your every activity and decisions so why not “go for it”?

Then you forget for just a moment that success is the result of commitment, sacrifice, win-win relationships, firm-fair-consistent leadership, testing before jumping, trusting but verifying.

The restaurant business is not one of routine and can’t be fixed with a switch.  The business is highly dependent on the skill and will of people.  People can be undependable through no fault of their own so have a back up in place.

Avoid the need of “Do-Overs”.

Ø      The planning calendar posted on the wall of the operations is one of my favorites (even in the age of new technology)

Ø      The PersonalBrain allows anyone to think ahead, plan, brainstorm in a visual way.

Ø      Create that “Crystal Ball Calendar” where everyone on a team can share what will happen in the future can be either on the wall in the operation or online via a tool such as BaseCamp.  This is so very important so that everyone knows in advance what may be critical to business.  It benefits EVERYONE on the team and everyone on the team contributes.

Ø      Use a Time Management, Productivity, Project Tracking Software like RescueTime

With great leadership and implementing a few great push button tech tools, the coming year can rely less on “Fate” which should ultimately help you avoid crisis management.

Wishing you a very Merry Christmas and the coming year to have less “Do – Overs”.

Michael Hartzell – Certified Guerrilla Marketing Trainer & Coach, Inbound Marketing Certified Professional.  Read more at www.michaelhartzell.com/restaurant-marketing

Automatic Marketing

Posted on 06. Nov, 2011 by in Daily Tip, Inside Hospitality

Automatic marketing happens when one says to another: “I want to take you to lunch and I know just the place.”  This was not the result of a restaurant marketing campaign or mailer.  Restaurant marketing is unique because when people get together to celebrate, converse, study, ponder and even propose.  (If you don’t know when this happens in your restaurant, then I am sad for you.)

 
In order to create a marketing campaign which is perpetual and automatic, there must be believers in the community.  The believers must have friends, associates, team members, family or possibly students.  The believers must have as much confidence in the restaurant as they do in the chair in which they sit.
Someone once asked me if I was in the “restaurant business”.  I replied without hesitation:  “No.  I am in the business of faith.  When people have faith, when they believe that my team will climb mountains to serve which then results in faith.  When people have faith and truly believe, they will take action accordingly.”

Magic marketing was born.
It is referred to as such because there are days when the dining room is full and you are not quite sure why.  It is almost magic since there was no big marketing campaign.  When sales grow for no apparent reason and the growth contradicts the economic trends, it appears to be magic.  It seems almost to have happened automatically on its own.
When you are in the “faith business” and the past guests are sharing their experience, your specific restaurant becomes that place to “show off”.  Thus it seems a little bit magical as marketing happens beyond the campaign and beyond your immediate control.  You do realize that guests will invite others and then make the claim to have found your great restaurant?  They take all the credit for your team’s hard work.  Apparently the person who “finds” a restaurant that is outstanding is supposed to get all the glory.

Automatic marketing which is faith based and seem like magic is not easy to maintain.
Those on the team must have serious “heart and soul”.  Each team member must be passionate about service NOT because the boss tells them to be.  The passion of service must be hardwired into their hearts and minds.   The goal is not to motivate them to give great service; it is instead to remove the barriers which keep them from doing what they love.

Hello and goodbye.  Oddly, the moment of greeting is not a high priority and even more puzzling is the departure.  The departure is both a time to express happiness and sadness at the same time.  When someone leaves a party at your home it goes like this:  “Oh!  You have to leave already?  We did not get as much time as I would have like to talk with you.  When can we connect again?”  That same mindset and impression left on every guest who departs will weill leave them feeling like they have a new best friend.  As they depart, each guest will want to meet the commitment they just made: “Yes, of course.  We will come back next week to see you again.  Yes.  You can count on it.”  They will mean it too because they just had a very memorable experience.

The systems must be in place to the point where the bumps and surprises which happen are easily side-stepped.  Over and over … the repetition is a blessing and a curse.  It takes great leadership to keep the team focused on what will become routine.  This is seen in team sports where the goal is to execute at a level beyond consciousness.  This is accomplished by investing in training, role playing, excellent scheduling and positioning key leaders who know the restaurant game.

These are a few of the many pieces to the puzzle for creating an automated marketing system.  Beyond the four walls there is a conversation starting:  “Let’s go out to lunch.  Where should we go?”  Response: “YourRestaurant is where we should go.  I haven’t been for a week and I can already taste it.  I know the manager/owner and will tell them to make something special for you.”  —–  “Oh?  You can do that?  You know the owner?  That would be great!  Let’s go!”

Someone felt as if they knew the restaurant owner and had FAITH that when they walked into the  restaurant, they would be the priority over all else.  Yes.. that has always been a rule:  Everyone must feel like they are the friend of the owner (or manager).

Maybe it is time to think about how to build faith where the believers will become your ambassadors.  Marketing will seem automated and might even seem a bit like magic.

Making A Profit

Posted on 23. Oct, 2011 by in Daily Tip, Inside Hospitality

What does it take to make a profit in the restaurant business?  For many smaller restaurants, it is believed there is no such thing as a “free lunch” and every transaction must be profitable.  It is a stretch to believe that have a drawing where 300 win “the prize” of a free lunch will help business enough to make it pay and yet it has been done successfully.

Here comes the new boss (me) and I looked at and pointed to the very full fish bowl with business cards overflowing and asked:  “Who draws the business card and how is the winner notified?”  Even though the sign said: “Winner every week”, the team responded with a “We have never had a drawing and no one remembers ever seeing a procedure for notifying the winner.”

As I looked each day at the empty dining room during lunch and at the high food cost because of waste, it became very easy to make the next decision.

Every person who had dropped the card into the fish bowl with the hope of winning a free lunch was sent a letter.  “You have won a free lunch!” was at the top of the letter.  “Please bring in this letter” was included in the letter and of course I was sure to say; “Be sure to ask for me when you come in to claim your prize.  I would love to meet and connect with you.”

Not being too aggressive, I spread the 300 letters over 3 days.  I signed each one personally and when I recognized a name or business, I made a special note.

They began to come in one by one.  People who had dropped their card in six months before and never returned decided that the letter was inviting enough to accept the invitation.  75% of those returning with the “winner notification” did not dine alone.  They had invited a friend or business associate.

Knowing that many strangers would soon be arriving, I prepared the staff with a huddle each day and outlined how we would create a memorable experience.  It was important not to miss ANYONE.  I should every hand, made an introduction and expressed the big congratulations for being a winner.

I told no one that I had sent everyone who had dropped a business card in the fish bowl a winners notification.  It didn’t matter much.  They were the winner.

The restaurant went from being empty for lunch to a buzzing crowd.  Connecting with guests in the dining room was easy to do.  There were big smiles all around.  I met people during the two weeks following which became long term friends, collaborators, and forever customers.

The costs for the week were marginally higher as those who accompanied the winner paid full price and there was almost no waste from “old product”.  Labor costs improved with the added sales and since we were going from an empty restaurant, there was not a need to add staff.

Larger restaurant companies do not appreciate such a tactic.  When the guests respond to the letter, the management team must have nothing less than the very best execution and key leaders need to personally recognize the winners to make an invitation to return.  If there is any doubt that the management team will falter and not be able to keep up, what restaurant company will risk it?  The “win a free lunch” en masse will backfire as the costs do not turn into future sales.  It is imperative to have a personalized greeting as each winner arrives.  (Warning:  As they arrive, many will be thinking that something is up or that there is a catch.)

If you were in my shoes, would you have taken the risk and told every person with a business card in the fish bowl a letter saying “you are the winner”?   If you knew that the fish bowl had sat for a year without a single winner, would that have motivated you to “set things right” and do exactly as I did?

Thinking of creating a profit in the restaurant business by profiting from each transaction will limit the possibilities.  You need hundreds (thousands) of people talking about your restaurant on a daily basis.  What will you do to make that happen?  When was the last time you told somebody they were the winner, handed out a prize and made the guest feel as if they just won the lottery?

New minimum wage increases add stress to restaurateurs

Posted on 06. Oct, 2011 by in Daily Tip

The restaurant team will have added stress in the next 60 days.  The combined effect from end-of-year wrap up, holidays and budget development for the next year will put pressure on the restaurant businesses.   The unexpected breakdowns, staff fluctuations and unusual business trends will be more than a minor distraction.

The solution to over-burdened management teams and increases in stress is not necessarily in high tech, software or social media.

  • Carry the consistent “yes” attitude.
  • Increase training.
  • Increase interviews.
  • Increase management availability.
  • Firm, fair and consistent decision making.
  • Post schedules earlier.
  • Create holiday schedule policies now vs. as needed.
  • Have an emergency weather back-up plan in place.
  • Set up timely meetings with management staff which focuses on budgeting/planning.

Each year there are increased costs which impact the bottom line and force the restaurateur to make decisions.  There are 10 states which have an adjustable minimum wage system and Oregon has announced the minimum wage will increase from $8.50 / hour to $8.80 / hour.   This leaves Oregon in the 2nd highest minimum wage behind Washington State at $9.00.

Here is the overview of minimum wage increases in five states:

  • Colorado—increase from $7.36 to $7.64 per hour
  • Montana—increase from $7.35 to $7.65 per hour
  • Ohio*—increase from $7.40 to $7.70 per hour
  • Oregon—increase from $8.50 to $8.80 per hour
  • Washington—increase from $8.67 to $9.04 per hour

*In Ohio, employers that have a gross annual revenue below an annually adjusted revenue figure may pay their employees at the federal rate (currently $7.25 per hour). Based on the annual adjustment, the gross revenue figure is $283,000 for 2012, up from $271,000 in 2011.

Four other states are likely to announce their annual adjustments within the next few weeks. Those states are Arizona, Florida, Missouri, and Vermont.

The answer to the minimum wage riddle is not a one size fits all.  That is when you grab the telephone and ask the question:  “What do you recommend?” to a restaurant consultant who understands how to tackle the issue.

If the answer to minimum wage increases is to make your management team deaf and blind to the real voice of the guest by cancelling a mystery shopper service company, sales and profits will be affected as the guessing replaces sound decision making.

Social media tools might be helpful since the ability to communicate quickly may turn into a faster solution.  A direct message tweet is difficult to take into a court should someone not meet their commitment and hopefully there is no such thing as “I am Tweeting in sick” or sending a Facebook message about how sick the grandmother is.

Last week I heard a manager of a very small business say:  “Well, I am the manager and I am leaving so I can do anything I want.”  (Which included a rude interruption to talk about scheduling issues with the staff person who was helping me.)

Imagine what will happen to that young lady who is in charge when the real pressure begins.

If you are a pro-active leader, you are already ahead of the game with the pieces in place.  If not?   It will be a bumpy ride.

 

True Stories About Independent Restaurant Owners

Posted on 18. Sep, 2011 by in Daily Tip

I have nothing.  Little has changed from yesterday.  To move off the current track requires an effort beyond that which you are willing to give.  The ideas are in abundance, a restaurant consultant is available for a free consultation (and offers a guarantee), a mystery shopper program is offered by Inside Hospitality which allows you to feel like you are reading the minds of the guest.

Even when I show the buttons to push to create more sales and happy guests, there is hesitation.

True story:  “It is time to write the press release and contact a reporter at a local newspaper.  Are you ready?”  Response;  “No!  Not now!  I don’t want to be too busy.  I do not have enough staff.  I am not ready.”  As I look around the dining room during dinner time, it is empty.  No guests are clamoring over what is absolutely amazing.  How much business would be “too busy”?

True story:  “Your lunch is absolutely incredible.”  When I told a restaurant owner this a couple weeks ago, I was not shining him up.  It was incredible.  He begins to tell me about the care his staff takes to prepare the food from scratch. (Including grinding his own spices.)  I ask; “What is your schedule like so that I can come in again and bring others to have lunch and introduce you around?”  His response:  “From 10 AM to 10 PM every day.  You can come in ANY day and I will be here.”  Does this sound familiar?  Is it necessary?

True story:  “Mike, next week when you back to our cafe, we will have gluten free items special for you!”  I was feeling very special just about then.  The new owner showed a true service spirit and was very pleasant.  It was obvious that my experience in her café was her first concern.  I reply:  “I will begin to schedule breakfast meetings here.  Your latte was great and the environment is very comfortable.”  She responds back with: “I am sorry but we won’t be opening early as of tomorrow.  As of tomorrow, we will be opening later… at 10 AM.  You can come in for lunch if you like.”  The response to low/no sales in the new breakfast/lunch café was to cut hours vs. creating a marketing plan and connect with the community.

Independent restaurant owners may have nothing more than their own personal success and failure to based decisions on.  The independent restaurant owner may not have the benefit of education, a mentor or experience with a larger restaurant business which they could glean from.  Worse yet, the TV is creating dramatic shows which are in essence more interested in viewership than training restaurant owners.

Amazing people with a high commitment, menu items prepared from scratch along with a singular purpose of creating memorable experiences struggle to fill the seats.  This is a shame because guests would be very happy to share more about their restaurant … if they knew.

The real barrier may not be the menu, the team or the location.  The real barrier to success might be … the independent restaurant owner who has high pride and works long and hard but is stuck in a rut.  At what point does one stop and say;  “Enough is enough, it is time to get ideas and thoughts from someone who has been around the block a few times and actually mapped it out”.

Being the fastest slug is nothing to brag about.  The true stories are about amazing entrepreneurs who put their heart and soul into their businesses but sales is about more.

Who is the smartest restaurant advisor you know?  The absolute top dog?  Call them.  Ask for their advice.  If you don’t know of one?  Here are two names and numbers:

888-998-8744                     Ask for Jeffrey Summers

888- 260-0380                   Ask for Gary Tripp

Tell them you read my article and have decided that ‘enough is enough’.

 

 

National Restaurant Association Reports on Performance

Posted on 11. Sep, 2011 by in Daily Tip

The National Restaurant Association’s Hudson Riehle provides an update on the latest Restaurant Performance Index, highlights of other economic indicators, and a summary of the Association’s new summer dining research.

Is this important to an independent restaurant?  Does it matter?   If you are in a leadership role of a chain restaurant, how will you consider this report?
Since we are on the watch for:

  • New laws
  • New technology for marketing
  • New technology for guest happiness
  • New technology for staff happiness
  • Unemployment trends
  • Commodity prices and availability
  • Dangerous food trends
  • News about what might increase costs
  • News which offers insights about the competition

… we will watch the video and make notes about what might be an opportunity for your business to grow sales and profits.

Don’t take notes.  Here is the overview of what Hudson Riehle shares with you in the video:

  • The Restaurant Performance Index was 99.7 in July 2011
    • This was down .9% from June 2011
  • The overall sales and traffic were positive.
    • Restaurant sales in July was at the 2nd highest level in history
    • Down just a bit from June but up 5% over July the year previous
  • Capital spending and staffing declined
    • Employment was up 1.9% from where it was a year ago
    • This is interesting since the employment level in the nation overall is up only 1%
  • Restaurant operator’s outlook for business six months from now is at the lowest level since January of 2009
  • Wholesale food price inflation continued as prices increased over 7% vs. previous July levels.
  • Menu prices were up only 2% over year earlier levels
    • This is half of what was found in grocery store inflation of 4% over the previous year
  • National Restaurant Association research shows:
    • During Labor Day Weekend, 35% of Americans will visit a restaurant or use a restaurant for take-out or delivery.
    • Over the summer, 1 out of 5 Americans use restaurant faire to compliment their dining out activities.

  • During the summer, 2 out of 3 Americans have visited a restaurant while on a vacation or trip.
  • “Yes but, in comparison to the statistical data, we are hanging in there.”
  • “Yes but, when you compare our restaurant food costs, they are better than the national average.”
  • “Yes but, the reason food costs are so high is because of the inflation that the NRA report talks about.”
  • “Yes but, the restaurant performance index is down in July, so our numbers are not as bad as they seem.”

In my younger years, I was the master of “Yes but”.  There are many like me who love numbers, math, data, and statistics.  Those data lovers spend enough time to understand the patterns and offer the “Yes but” with numbers and data to back up any excuse.  The data quickly becomes a shield and potential proof that “the results are not as bad they seem”.

One statistic in the video stood out as “big opportunity”.   If there is a general belief by restaurant owners that the outlook is for business is down, this offers opportunity.  When there is a general consensus that things are tough, people have a tendency to act like a turtle and pull all their limbs in.  More worry, fear and loss of hope have an impact on the leadership which filters to the staff and will be reflected the mystery shoppers reports from the guests.

Get out the champagne.  This is when life is grand.  While the average restaurant thinks “we have to hunker down and survive”, I love to go on the offense.  If what the National Restaurant Association has reported is true?  It is time to get happy and out-service, out-market and out-care the rest who spend time fretting and worrying.  I would bet at this stage it isn’t so tough to shine in comparison to the restaurants that have no hope.

Maybe there will come a day when those who make decisions about their restaurant will understand that restaurant success has more to do with how they execute their business than it does general nationwide statistics.  Such an epiphany can be the necessary fuel to turn a team with apathy into one which won’t let anyone or anything stand in their way.
Have you lost hope and pulled in your limbs like a turtle thinking that protection is the goal?  Hope not.  You may miss out on the best opportunity yet.

About the Author:    Michael Hartzell – Spends his days as a writer, speaker and coach. Read more at:  www.michaelhartzell.com/restaurant-marketing

 

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