Category Archives: It’s All About Service

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More of: The Top Line Drives the Bottom Line

27 Wednesday Feb 2013

The hardest task for any restaurateur is convincing a potential customer to walk through the front door for the first time. This takes considerable effort in the form of image building, identifying target markets, use of social media, advertising, building an effective website, selecting the right physical location, etc. Convincing a customer to make that leap means that they are willing to take a risk, sit down and spend some money. After all of that effort how much time do you spend on convincing customers to buy and set the stage for a return visit?

Keep in mind that your service staff are your ambassadors and sales force. Have you taken the time to train them how to sell and have you provided them with the tools that they need to be effective in that role? Your job is not to simply make a sale, it is to build a relationship that will result in steadily increasing sales, check averages and return guests. Your service staff holds your future in their hands.

That initial customer visit will likely result in “safe” purchases until your operation is able to demonstrate trustworthiness. The server is the portal for information, the front-line expert on your menu, the friend who can make great suggestions, the connection to others in the restaurant and the gatekeeper to your profitability.

Yes, the top line drives the bottom line and the server’s primary job is to sell, however, to accomplish this they must be able to provide exceptional value for the guest. Does you service staff known the menu, the ingredients, the source of those ingredients, the methods of preparation and the flavor profile of every item on the menu? Does your service staff have a working knowledge of wine and can they make great pairing suggestions for the novice wine consumer? Is your service staff comfortable communicating with the chef about special requests and can they offer those to a guest with confidence that the property can deliver? Is your service staff willing and able to sell the bookends: appetizers and desserts? If not, the fault lies with management and ownership.

The average restaurant in America spends less than 1% of its budget on training, yet it is training that will result in greater sales, higher check averages and return guests. The top line does not happen simply because your marketing efforts have led customers to walk through the door.

Are the tools in place to allow servers to up-sell with confidence? Is the dining room comfortable, is the menu attractive and user friendly, is the wine list understandable, do you offer on-going training to keep staff informed about the menu, do you require daily pre-meal information sessions, do you have a sommelier or a manager with a strong understanding of wine and the ability to build a list that works well with food, do you have the right glassware and china to complement the wine and food, do you take advantage of customer profile systems such as Open Table so that your server can track the preferences of return guests? The answer to each of these should be YES.

The top line drives the bottom line, but the process of setting the stage is the only thing that will allow this to become a reality.

Watch for information on “Deep Dive” Seminars by Harvest America Ventures coming to a city near you. Learn about the opportunities and pitfalls associated with restaurant operation.

Visit our website at: http://www.harvestamericaventures.com

Posted by | Filed under Continuing Education for Food Professionals, It's All About Service

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The Odds are Against Them, Yet People Continue to Open Restaurants

15 Tuesday Jan 2013

There are more than 965,000 free-standing restaurants in the United States. That does not include Business and Industry foodservice, Schools, Hospitals, or home-meal replacement from your local grocery store deli-counter.

Most data points to a 66% failure rate for free-standing restaurants in their first year of operation and 90% failure rate for those who manage to make it to year five.

What is most ironic is that despite these figures the number of restaurants continue to grow each and every year. When one restaurant closes, another is ready and willing to take its place.

Let’s take a moment to unscientifically evaluate why this is so:
WHY DO PEOPLE OPEN RESTAURANTS?

1. Chefs open their own restaurants (usually with another persons’ money) because it is their dream to show the world what they can do. The restaurant, to them, is a canvas waiting for the artist to paint.
2. Restaurant managers open restaurants because they believe that they have the formula for success that no one else has discovered.
3. So called – smart business people who have made their mark in other industries, open their own restaurant because: “how hard can it be”? this must be a quick and easy way to get rich – look at what they charge!
4. Family members open another restaurant because dad had his own and he was successful! It must be in their genetic make-up.
5. Some people open restaurants because they like to eat out and they really “know” food.
6. Some open restaurants because it would be great to have a place where their friends could come and have a terrific meal. (be careful of “friends” who expect something for free)
7. Some open restaurants so that they can have their own personal bar.

…and the list goes on. What many don’t realize is how hard, demanding, unpredictable and fragile this business is. To that end, here is a primer for all would be restaurateurs:

RESTAURANT REALITY:
1. Location is still everything. Make sure you are visible, close to lots of foot and vehicular traffic and flush with parking spaces.
2. You will be in the service business which means that YES – the customer is right.
3. The top line drives the bottom line. SALES, SALES, SALES.
4. Quality, interesting and flavorful food is an expectation. It is the price of admission.
5. Be aware of what is trending: local, sustainable, nutritious, healthy and fresh.
6. Value is more important that price.
7. At best, restaurants can expect to make 5% profit. That is only possible if you minimize waste, theft and spoilage and continually attract enough guests.
8. Rent will kill you! A good rule of thumb is that your annual rent should not exceed 6% of gross sales and total occupancy costs should not exceed 10%.
9. Food spoils!
10. People steal! (customers and employees)
11. Free drinks will put you out of business.
12. Family members should pay for their food and drinks like everyone else.
13. Taxes must be paid on time.
14. Dining rooms generate sales and kitchens incur cost. Make your dining rooms larger than your kitchen.
15. Chefs are frustrated artists, but unlike many famous artists you want to sell product while you are still alive. Menus should reflect what people will buy.
16. Cash flow is king. Make sure it is coming in faster than it is going out.
17. Cash may be out of style but remember it costs you money for the privilege of accepting credit cards. You must accept credit, but smile when they pay you in cash.
18. Pick your vendors wisely – they are the basis for great tasting food and can even be viewed as a bank that gives you 30 plus days to pay back the loan of supplies.
19. Guests come initially for the food but return because of your service. Select employees well, train them constantly, treat them well, support them, measure their performance and reward them when you can.

…once again, the list goes on. Do you still want to own a restaurant? If so, let Harvest America Ventures help you to minimize many of those factors that lead to failure. Contact us today!
Harvest America Ventures, LLC
Restaurant Consulting and Training
http://www.harvestamericaventures.com
psorgule@hotmail.com

Posted by | Filed under Continuing Education for Food Professionals, It's All About Service, Tips on Restaurant Team Building

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Hoping for Excellence, Living with Mediocrity

25 Saturday Aug 2012

Posted by in Continuing Education for Food Professionals, It's All About Service, Uncategorized

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ImageWhat is so fascinating about the surge in interest for careers in culinary arts is the desire that every serious young cook has for making their mark in the food world.  As is the case with most things in life, I believe that everyone wants to achieve a high level of success, but only a few are willing to make the commitment to that end.  Real success in the restaurant industry requires a super-human commitment to excellence from all who seek it.

Excellence in the restaurant business is all about the details.  It is a systemic outcome that is based on paying very close attention to everything.  To this end, it all becomes important, it all becomes a priority.  Allow me to take a few moments to outline just a cursory list of those details:

* Develop a Concept that reflects who you are, a concept that attracts like-minded employees, a concept that guest will be excited about and feel good about spending their money on

* Research and Test all of the recipes, plate presentations and wines that pair well with the food

* Identify the Best, Reliable Resources, who have a commitment to the quality of raw materials and will deliver that quality to you EVERY time

* Find a Location that truly fits the concept and portrays your food and your commitment to excellence

* Negotiate a fair real-estate relationship with your landlord

* Develop a Decor that allows the guest to feel comfortable and complements the food and beverage experience that you have designed

* Search for, interview, test, hire and train the RIGHT staff who are guest oriented, quality driven, self-motivated, and knowledgeable TEAM members

* Constantly INVEST in those team members and push them to greatness

* Always Remember that you are in the SERVICE business and your job is to EXCEED the expectations of the guest

* CONSISTENTLY Produce the same high quality food and service no mater what time of the day, day of the week, weather conditions, staffing dilemma, or unforeseen disaster comes your way

* Insure that your from-of-the-house staff is as KNOWLEDGEABLE about your product as the culinary staff

* Be Obsessive about CLEANLINESS

* Control WASTE

* Treat Everyone with RESPECT

* Be VISIBLE to your staff and your guest

* Be your own worst CRITIC

and I could go on and on.

To sum it up…running an EXCELLENT restaurant is extremely difficult and the process is relentless.  It is no wonder that so many restaurants, chefs, cooks and owners succumb to mediocrity.  The real source of this problem is the guest who continues to support mediocrity because they either lost the energy to insist on excellence, or have yet to experience excellence as a benchmark.

Back to that systemic outcome, if we all became advocates for excellence as consumers, then restaurants would either need to step up their game or bail out.

Now, don’t get me wrong..there are numerous restaurants and restaurant chefs that get it right, all of the time.  Thomas Keller, Gary Danko, Charlie Trotter, Charlie Palmer, Mario Batali, Joe Bastianich, Lidia Bastianich, Drew Nieporent, Danny Meyer, Charles Carroll, Jamie Keating, Alfred Portale, Wally Ganzi, Alain Ducasse, Marc Meneau, Marcus Samuelsson, Alice Waters, and dozens of others are totally committed to excellence, but keep in mind there are 975,000 restaurants in the United States.  We have ample room for improvement.

Show Some Respect for Servers

08 Wednesday Aug 2012

Posted by in It's All About Service

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Well, we have done an excellent job of raising the respect for cooks and chefs in America.  I can still remember when I was first starting to cook how people would ask me what I am really going to do with my life – certainly not be a cook!  Now, whenever I mention to a new acquaintance that I have spent my career as a chef and culinary educator, they perk up and get excited!  Thanks to everyone for doing such a great job with culinary public relations.  Thanks to cookbook authors, thanks to the Food Network, thanks to culinary schools, thanks to home kitchen designers, thanks to thousands of great restaurants all over the country.  Job well done.

Now, as I have previously stated, in the long run it is all about service.  Great food and interest in cooking brings customers in initially, but it is real service that keeps them coming back.  Great food sets the stage for profitable restaurants, but it is really the art of up-selling that puts more pennies on the bottom line.  Chefs can hide behind those swinging doors, but the server must face that guest day in and day out.  Where are the books on restaurant service, where is the tribute to great service on the Food Network, where is the public relations that should surround this difficult, yet potentially rewarding career choice.  Yes, I did say career choice even though today that is rarely the case.

Strike up a conversation with a cook and they will likely talk about their dream of becoming a chef and opening their own restaurant some day.  Strike up a conversation with most servers and they will talk about any long-term career choice except the restaurant business.  I have seen many frustrated college graduates who are waiting tables simply because there is nothing available in their career choice.  How frustrating is that?  Invest the time, energy and money in a college degree only to wind up in a service position.  Of course, this weight on their shoulders oftentimes shows up when they interact with guests or those in the back of the house who are there by choice.

Why is it that people look down on service positions?  This is not the case in other countries where many choose this career track early on.  Service is a noble job, one that can make or break the experience of a guest.

If a server is content and focused he/she can make very good living as a professional waiter.  Chances are they would be hard put to find a more lucrative career.  So, it is time for us to begin to develop pride in service.  One approach is to invest in educating our service staff.  Build on their wine knowledge, teach them about food, invest in their continuing education, involve them in decision making, build that relationship with the kitchen crew so that there is a level of mutual respect.

Maybe it’s time for culinary schools to develop degree programs for professional servers to include sommelier training, some cooking skills, psychology, acting classes, languages, classes in culture and cuisine, etc.. After all, it is all about service.

Waiters of the world – what are your thoughts?

Of course the food is important, however………

18 Wednesday Jul 2012

Posted by in It's All About Service

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One thing never seems to change – front-of-the-house vs. back-of-the-house mentalities.  When are we going to get it?  Service is just as important, if not more important, than the food that we serve.  WOW- I can’t believe I actually said that with conviction.  For a chef to come forward and tell the truth – SERVICE IS WHAT BRINGS CUSTOMERS BACK – seems to be a mortal sin to those who dedicate their lives to making great food and ignoring the fact that oftentimes it is the service that builds a restaurant’s reputation.

On the other hand, without GREAT food, the server faces an up-hill battle in winning over any guest with discriminating taste.  One would wonder if we can ever get the two, equally important restaurant factions to work as a real team.

Some of you might be thinking, “this is not my restaurant – we are always on the same page”, OK – there maybe some that have made the leap, but what about the other 800,000 or so who are constantly pointing the finger one way or the other.

I would be interested in your thoughts.