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RESTAURANT BUSINESS ACUMEN OR CREATIVITY – WHICH COMES FIRST?

04 Tuesday Feb 2014

Tags

business, chefs, restaurant success, restaurants

RESTAURANT BUSINESS ACUMEN OR CREATIVITY – WHICH COMES FIRST?

Some would promote one vs. the other when in reality you can’t have one without the other. With the Superbowl behind us (a rather painful one to watch) you could easily compare Creativity to a solid offense and Business Acumen to a dominating defense. This year’s game seemed to be an example of the old adage that “defense wins the big games”. There was no question that Seattle exhibited an extremely powerful defense, but in the end they still had to score points (43 of them to be exact).

In restaurants, like any business, an operator must understand the financial implications of their decisions and know how to control their costs. Even with all of these crucial efforts in place the restaurant must still build an exciting menu, attract customers through effective and creative marketing and execute great tasting and looking food. The creative process can never be absent from the formula for success. The opposite is also true. There are thousands of examples of creative restaurants with full dining rooms that can never seem to turn a profit. With a lack of controls including ordering, inventory, production, costing and selling price determination, waste and theft control, the busiest restaurants will eventually fail.

This reality is true in every business, every industry. Sometimes one or the other is not as apparent, but success cannot happen without a balance of creativity and control. Most would agree that Apple Computer is one of the most creative companies around and when asked, Tim Cook would repeat Steve Jobs statement that Apple is not about making money; they are about making insanely great products. This is certainly true, but underneath all of that creative process is a company with extremely tight controls leading to the biggest cash reserves of any company, anywhere. They can ride any storm from the competition because they are able to balance creativity and control.

Restaurants live in one of the most competitive environments you could imagine. Every source of prepared food is competition for every restaurant. To this end, successful restaurant operators need to make a real commitment to the creative process around product, service, brand building and marketing. Those same operators can never lose sight of the sensitive nature of restaurant profitability.

Just as in football or computers, it is rare if not impossible to find one person who can effectively be in charge of creativity and control in restaurants. It is not human nature to be insanely great at both, yet this is what a business requires. Chefs are, by nature, creative people; or should I say the position of chef attracts creative people. Most chefs are passionate about the process of ideation around menus, applying their talent to the preparation of food, building flavors, using the plate as their canvas, and connecting on an artistic level with their guests. Not dissimilar to how a painter or sculptor is passionate about applying talent to a canvas or stone. Chefs need that counterpart who is just as passionate about the control process.
The most effective restaurants are able to build partnerships with business managers and chefs. A perfect example is Joe Bastianich and Mario Batali or historically: Escoffier and Cesar Ritz. Business Acumen is equally significant if the restaurant is to reach its goals. The two make one and in the end, just like in football, computers or any other business, bring a level of success that you can go to the bank with.

PLAN BETTER – TRAIN HARDER
Harvest America Ventures, LLC
Restaurant Consulting and Training
http://www.harvestamericaventures.com

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HOW TO FAIL AS A BUSINESS LEADER

10 Saturday Aug 2013

Tags

business, failure, leadership, Machiavellian, success

It occurred to me this morning that my blog posts are always directed at ways to enjoy success. In fairness to the other side, I thought that I would outline the quick and easy steps that lead to business failure. After all, I want to be an unbiased equal opportunity writer.

HOW TO FAIL AS A BUSINESS LEADER:

1. Ignore all of the signs that point to problems in your business.
2. Make sure that you make most of the important decisions in a vacuum.
3. Hire great people, give them lots of responsibility but avoid empowering them with the authority to make change.
4. When your management team is starting to make progress, re-arrange the organizational chart and shuffle people around. Divide and conquer worked for early Nomadic tribes, why not in your business?
5. Take those same great people and through a process of slow and painful steps, give them every possible reason to leave.
6. At all costs, avoid developing delineated job descriptions. Let people figure it out for themselves.
7. Jerk your vendors around through delayed payments and avoid communicating with them at all costs. Maybe they will just go away.
8. Believe in yourself and avoid watching your competition. You have the right formula so why even monitor what they do.
9. Trust no one, especially those who organizationally are closest to you.
10. Read everything you can about Machiavellian style management.
11. If your product or service worked in the past, do not change it even if the environment that you operate in has changed.
12. Don’t advertise whether it be through traditional print medium or social media. Advertising is really a waste of money.
13. Keep doing the same things but always expect better results.

For those who own, operate or work in restaurants, I am sure you have experienced working for or with individuals who follow these steps with reckless abandon. There is little doubt that the owner/leader will eventually reach their pre-determiend goal: failure.

If, however, you would prefer to succeed, then post these thirteen steps on your office door and do just the opposite.

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