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Tag Archives: restaurant ownership

OUR DAILY BREATH: SO WHY DO CHEFS OWN RESTAURANTS?

24 Friday Apr 2020

Posted by harvestamericacues.com in Uncategorized

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Chef/restaurateurs, chefs, cooks, restaurant ownership, restaurants after Covid-19, the joy and pain of owning a restaurant

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Yesterday, I read an emotional, well-written, soul-crushing article by Gabrielle Hamilton – chef/owner of Prune Restaurant in New York City. She spoke from the heart of her “all-in” commitment to her restaurant and staff over the past 20 years while addressing the countless challenges that face independent restaurateurs across the country. She is wrestling with the big questions: Why am I doing this and is there room for this and other small restaurants after the threat from Covid-19 is behind us? I felt as if I were sitting at a table in Prune with Gabrielle while she told her story. It was an emotional experience reading this article and knowing that thousands of other chefs and restaurateurs across the country could have written a similar one. Why do these people choose to open a restaurant when the daunting amount of work involved is a given, when the challenges of keeping the lights on and stoves operating are constant, and when even the smallest amount of profit is never a given? Here are my unsubstantiated beliefs:

[]         THE ART OF EXPRESSION

There are (although putting people in silos is always shortsighted at some level) three different types of people when it comes to the work aspect of life: Leaders, Followers, and Artists. Leaders can be nurtured into their roles as they build a skill set and experience different aspects of a career until they are comfortable with the responsibility of setting the stage for others to self-motivate and find their strengths through a leader’s example. Followers have a need to feel needed and be successful with their work, but seek to have someone else point the way and support their efforts in the process. Artists have an uncontrollable need to express themselves through whatever medium they choose to focus on. They often have little interest in the traditional measures of success as long as their ability to write, paint, play music, sculpt, act, or prepare beautiful food is present. They certainly feel the weight of critique, but as an artist that will pass – they need to do what they do, regardless of the cost to their personal or financial wellbeing. This is quite often a legitimate description of a chef/restaurateur.

[]         THE NEED TO BE OFF THE JOB GRID

Restaurateurs abhor the process of “selling themselves” to potential employers. “This is why you should hire me” seems to be demeaning and lacking in any self-awareness of ones potential. Thus, even those who happen to land a job with a great company and supportive employer seem to feel as if they copped out to on a desire to own their own. While they enjoy the benefits of a good employer they are always thinking about breaking off on their own.

[]         THE LOVE OF COOKING

Chefs – first and foremost – love to cook. They relish the work, the smells, flavors, textures, process, and challenges of taking raw materials and creating something that is aromatic, delicious and beautiful to look at. This is what draws people to the profession of cooking and keeps them coming back every day to the extended hours, and the physical, intellectual, and emotional demands of the work.

[]         THE DESIRE TO BE SOLELY RESPONSIBLE FOR DECISIONS

Chefs have an overwhelming desire to be the decision maker and have a very difficult time relinquishing that responsibility to others. Even in the most chef-centric kitchen there is typically a level or two of management that can override the decision making of a chef. This, even if the override is appropriate, is frustrating to the chef and his or her need to be solely responsible and accountable to only the person seen in the mirror. The only logical answer is to become an entrepreneur.

[]         THE HOPE OF MAKING A DIFFERENCE IN PEOPLE’S LIVES

Chefs and restaurateurs enjoy the thought of making a difference in a person’s life through food and warm hospitality. After all – operating a restaurant is akin to inviting people into your home to break bread, share stories, and celebrate the importance of friendship – just on a larger scale. When we invite people into our homes we hope to make them feel special, welcome, safe, and offer a reward through food. Chefs intend to do the same in a restaurant setting. The reward is in giving to others.

[]         AN INNATE DESIRE FOR THE AMERICAN DREAM

We are told from our earliest days on earth that we have the potential to be whatever we want. That with the right effort and commitment we can aspire to a lifestyle that fits our dreams, a job that suits our talent, and even own our own business if that is a path we choose to take. This is the opportunity that has drawn millions of people from around the world to American shores and a spark that becomes the driving force in many: the chance to be our own boss – The American Dream. This desire, if you are the type to dream in this regard, is what keeps many chefs up at night: planning concepts, working through menu ideas, and always being on the lookout for a perfect restaurant location.

[]         A TOUCH OF EGO

Of course – we can’t discount the ego. Chef’s have a tendency to push aside the reality of owning a restaurant that they are perfectly aware of. They know the challenges, the pitfalls, the impossible nature of the work, the failure rates, and the odds that are stacked against them – yet, that ego tends to step in and proclaim that: “I have the idea and the plan that will overcome all of those obstacles. I know that I can beat the odds and succeed where others have failed. I have the magic formula figured out, the one that has alluded so many before me. My success is all but assured.”

And there you have it – another chef who wants to become a restaurant owner. A person who will pour his or her heart and soul into this business for the opportunity to express what is churning inside their being, waiting for an outlet. A person who will pull out all the stops, tap into every penny that they have saved, seek out loyal customers who might want to invest in the chef’s dream, call on family members to contribute what they can, call up those former co-workers to leave their current employer and join the team, plead with vendors and salesmen to give them a credit application, and pour out their hearts to a local bank for an equipment loan and a line of credit. This is that chance the chef has been waiting for – to put his or her signature on a menu, to hang a sign out front with their name, to walk through a dining room holding his or her head high and stopping by tables to hear praise for the kitchens food, and to nervously read the food critics column every week in hopes that they will receive a positive review. This is the chef, like Gabrielle who now, during this mandated shutdown, gets on his or her hands and knees to scrub a floor or polish a stove top while the dining room rests with lights off and inverted chairs stacked on tables – waiting and wondering – is it worth it – is there a need for us to return?

It broke my heart to read her article just as it crushes my soul to see restaurants with the lights out or “for sale” signs in the window. This is someone’s life work, their dream, an extension of who they are – now deflated and unsure. We can only hope that the chef/owner will find that sense of hope, that renewed energy and passion to give it another try and make a difference in the world.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

Gabrielle Hamilton’s article in the New York Times:

https://www.nytimes.com/2020/04/23/magazine/closing-prune-restaurant-covid.html?smid=fb-share&fbclid=IwAR1Yw_4QmzvNF0auAHeO70Old_PPaMuhP7Gj2gav6bcm8e4GENJOzkOQCs4

 

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WANTED: SUCCESSFUL RESTAURANT OPERATOR

29 Thursday May 2014

Tags

chefs, cooks, restaurant ownership, restaurant success, restaurants

WANTED:  SUCCESSFUL RESTAURANT OPERATOR

Here it is – the formula for a successful restaurant – almost a guarantee. There still are many people, for some strange reason, who continue to dust off their entrepreneurial suit and turn to restaurant ownership as a way to personal fortune or at least an opportunity for expression and public service. For all who fit this mold this is my best effort at providing a road map to potential (if you are lucky) success:

[] IDENTIFY A TARGET MARKET: Many believe that the starting point is concept development, however, building a concept restaurant without understanding who your potential market is would be the quickest way to failure.

[] KNOW YOUR TARGET MARKET: Qualitative and quantitative studies will help to determine what your potential market is willing to purchase, when they are likely to purchase, why they are likely to purchase and how you might best deliver the product message to them.

[] IDENTIFY YOUR COMPETITION: Surprisingly your competition goes beyond the obvious. A French concept is not only in competition with other French concepts, but rather with any other restaurant in close proximity to yours.

[] KNOW YOUR COMPETITION: Study them, follow their website and Facebook page, visit their operation as a guest, talk to others who patronize that competition, observe the clientele who spend time and money there and catalogue their strengths and weaknesses.

[] BUILD A CONCEPT THAT ADDRESSES YOUR TARGET MARKET AND COMPETITIONS AREAS OF WEAKNESS: This is not to state that an operator and chef should avoid creating something unique and stretch the food perceptions of their anticipated customer, however, your research should reveal those items that customers are prepared to order. Success is best realized when customer needs are addressed.

[] HIRE THE RIGHT KEY PLAYERS: The Chef, Restaurant Manager, and lead service staff is initially the most important hires. These individuals will become your organizers, communicators, expeditors of the company vision and the driving force as you move forward. They should be creative and talented in their respective disciplines, but most importantly business savvy.

[] SPEND TIME BUILDING A TEAM WITH OPERATIONAL CHEMISTRY: Work ethic, attitude, dependability, humility, service orientation and a passion for the restaurant business are the real keys to your success as a restaurateur. There is nothing more important than building this team with your key players.

[] BUY THE BEST RAW MATERIALS THAT YOU CAN: Wolfgang Puck said it best: “Buy the best raw materials and try not to screw them up.”
[] ENSURE THAT YOU HAVE STANDARDS AND THEY ARE ALWAYS OBSERVED: Food preparation, plating, service technique, cleanliness, cost controls, tracking customer reactions, problem solving – all of these processes should have definitive standard operating procedures that every staff member understands and follows.

[] OPENING A RESTAURANT IS MORE EXPENSIVE THAN YOU THINK: Make sure that you have the funds to open and cover expenses for your first year (at least). As you build up to opening you will spend many difficult days writing checks. What ever you budget for the opening is never enough. Watch your pennies, but know the expenses will add up quickly.

[] TRAIN, TRAIN, TRAIN: Training must be on going. Formal orientation for new employees, technique training, wine tastings, food plating demonstrations, regular staff meetings with review of operations, daily pre-meal presentations and end of service recaps are all critical components of an effective staff development program. It pays off tenfold!

[] FEEDBACK IS THE BREAKFAST OF CHAMPIONS: At first, it is human nature to resist soliciting feedback, but once a program is in place (comment cards, on-line surveys, encouraging employees to speak their mind during meetings, management open door policy and walking the dining room to observe guest reactions are effective ways to stay in tune with your collective performance).

[] EDUCATE YOUR GUEST: Customers are interested in food and beverage like never before. A well-trained staff can and should provide opportunities for guests to discover more every time they dine in your operation. Recommendations on wine, describing exceptional menu items, telling the story of food rather than listing ingredients and sharing interesting information about the restaurant’s history will go a long way towards building guest relations and return business.

[] CREATE A RESTAURANT PERSONALITY: Whether it is you, your manager, the chef, an entertaining bartender or a designated host – every successful restaurant has an identified personality; someone who becomes synonymous with the restaurant name – a person that attracts a return clientele. A restaurant without a personality is just a business.

[] WORK AT BUILDING A RESTAURANT EXPERIENCE: A memorable meal is more than just great food. The experience includes the sights and sounds, unique hospitality, food presentation, bar showmanship, building ambience, and personality of all who work for your restaurant. It is the experience that brings them back.

[] CONTROL, CONTROL, CONTROL: Buying right, taking scheduled inventories, portioning ingredients, following recipes and formulas, scheduling employees efficiently, tracking your advertising expenses, watch waste, lock coolers and storerooms, track sales abstracts and adjust menus when certain items do not sell, budget and assess any variances – these are some of the most important processes that an owner can implement and measure. Without them it is impossible to reach your financial goals.

[] ESTABLISH ACCURATE SELLING PRICES: Selling price determination cannot be a guessing game, nor can it simply reflect a price that compares with that of the competition. Prices are based on knowing all of the costs associated with the building of a dish, using a simple formula of Plate Cost/Food Cost % and then assessing the impact of competition and what the threshold for prices might be in the current market. Pricing is a science and an art.

[] TURN THE EXPERIENCE INTO A VALUE STATEMENT: Value should not be solely about price – if it is then you have failed. If the experience is strong than so is its perception of worth. To this add an emphasis on effective upselling to build check averages and your formula is beginning to reach its intended solution.

[] COMMUNICATE EFFECTIVELY: Use all of the available tools to communicate your message internally and externally, but be cautious of those that cost money without any measurement of effectiveness. Your website, Facebook Page, Blog and email blasts cost very little and approach a defined market. Internally, the best communication is face-to-face, but consider using payroll stuffers, newsletters and email communications for this audience as well.

[] SWEAT THE SMALL STUFF: Everything in the restaurant is important. It is all in the details: a clean parking lot, well appointed signage, spotless windows, floors, walls, bathrooms, kitchen, china, glassware and flatware, beautifully detailed plate presentations, flavors and aromas, greetings and sincere service, appropriate alcoholic beverages that are geared towards your target audience, a great cup of coffee and spectacular desserts – this and so much more are essential if you are to build a successful brand.

[] BE REALISTIC: No matter how good you are, even if every aspect of the formula is firing on all cylinders, the likelihood that your restaurant will be immediately profitable is very low. You should anticipate that the first year may be breakeven at best, year two should be better and if you stay focused year three will be the turning point. BE PATIENT!

[] BE RELENTLESS: Don’t let your guard down. Every minute, every day, every season this formula cannot waiver. This is the task of the owner: keep everyone focused – ALWAYS.

[] HOPE FOR LUCK AND BE GRATEFUL WHEN IT IS PRESENT: When all is said and done, there are far too many details and variables for any formula to be consistently effective.

I wish you well.
PLAN BETTER – TRAIN HARDER
Harvest America Ventures, LLC
http://www.harvestamericaventures.com
psorgule@hotmail.com

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