Tag Archives: Restaurant Survival

THE EINSTEIN MOMENT FOR RESTAURANTS

04 Monday Jan 2021

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I have been thinking quite a bit lately about a comment made by Chef Jeremiah Tower during our recent podcast conversation.  He stated: “The restaurant industry needs an Einstein Moment.”  There are numerous ways that we categorize these occurrences:  Eureka moments, aha moments, or light bulb moments; but what we are referencing are those points in time when we suddenly understand the solution to a problem or the need for something that no one has pondered before.  With all of the challenges facing the restaurant industry today, it would seem that Chef Tower is spot on; but where do we turn for that flash of inspiration?

One thing is certain – we are overwhelmed with the problems of the moment and seem unable, or unwilling to move through the storm to blue skies that might exist beyond.  Those who have confidence in their abilities will often times say: “Give me some time to think, to reflect on my experience, to chat with a few friends, and I will find a solution to the problem.”  When we are able to set aside the pressure of the moment and let our imagination wander, there will be greater opportunities to find solutions and to define a new direction – one that might create even greater opportunities. 

I have been struggling to dig deeper into Chef Tower’s statement and have come to a few conclusions:

  • I don’t have the answers for the restaurant challenges of the day
  • I do have a better understanding of how we might collectively approach those challenges

There are a variety of ways that people, throughout history, have approached Einstein Moments – inspiration that leads to positive solutions:

  • OBSERVATION – Newton supposedly observed an apple falling from a tree and thought about earth’s pull – the result was an understanding of gravity.
  • EXPERIENCE – Horst Shultze, a young bellman at a hotel used his experience of working his way through various positions to eventually land the position of CEO of Ritz Carlton Hotels and their approach towards Total Quality Management.
  • TRIAL AND ERROR – Thomas Edison had thousands of failures before he was able to perfect the light bulb – the world has never been the same.
  • BUILDING A DEEP PORTFOLIO OF KNOWLEDGE – Doctor Salk, an accomplished researcher and virologist was able to build on his knowledge and that of his peers to develop the first vaccine for polio.
  • BEING BORN WITH THE GIFT OF VISUALIZATION – Steve Jobs was always able to envision devices and services that only he knew the world would need before they came to that realization.  The resulting products of personal computers, smart phones, clean and addictive MP3 players, and tablets are an integral part of our lives today.
  • DIGGING IN AND WORKING THEIR WAY THROUGH IT – This is the method that every professional chef has used for generations.

One thing is certain, as described simply by Albert Einstein:

“We cannot solve our problems with the same thinking we used when we created them.”

Ah – stay with me:  you might be thinking that the current challenges that restaurants face are all driven by the pandemic – so, we didn’t create them.  Certainly, the pandemic is a major curve ball that was not anticipated, but the effects on our businesses are crippling to this degree because of some deep seated issues that have been around for decades:  a labor intensive business, low profits, high rents, ingredients with a short shelf-life, unpredictable business volume, high cost of ingredients, and the list goes on.  In the end, the restaurant business did not have the resources or the wherewithal to weather this storm.  Our country will get through this crisis, but there will be others, maybe not as severe, but there will be others.  The Einstein Moment must begin with a realization of the “cause” so that we can find better ways to avoid curve balls in the future, or at least better deal with the “effects”.

Restaurant folks are pretty good at problem-solving when we can approach the issue in a logical manner:  “business volume is down and labor cost is out of whack so we change our operating hours and reduce the amount of labor needed – problem solved for the time being.”  But when the boat is leaking from a dozen different spots, then logic is far less effective.

“Logic will get you from point A to B.  Imagination will take you everywhere.”

-Albert Einstein

The industry’s current situation requires imagination that can lead to a Eureka moment and a new direction that attacks the root cause of leaking from a dozen different spots.

“Knowledge of what is does not open the door directly to what should be.”

-Albert Einstein

Relying on what we know may simply not be enough to pull our industry out of the weeds, build on its solvency, and set the boat right as we move forward into uncharted waters.

Somehow the restaurant industry as a whole (ideally), or at the very least small groups of community restaurants need to make the time to step back, take a deep breath, put aside the pressures of the moment and let their collective minds wander.  What we are looking for is not a solution to a problem so much as it is a rethinking of how we perceive our businesses.  

If we are looking for those flashes of insight it is important to define periods of time when we can “incubate” our thinking – stop focusing on the current problems and allow your mind to observe, listen, drift a bit, take in your environment, share with others, tap into other interests, and give your mind a chance to breathe and clear ample space for new thinking.  It may mean that we need to engage with other stakeholders and rather than state your time-tested approach – open yourself up to their feelings, needs, and thoughts.

“The broader one’s understanding of the human experience, the better design (and longer term challenge solving) we will have.”

-Steve Jobs

Think of some of the great new directions (and products) that came out of this “Eureka Moment” approach:

  • When asked what consumers thought about buying record albums in the 1990’s and beyond, it was discovered that they were miffed that they had to purchase an entire album to get the one or two songs that they really liked.  The result was Napster – a free (illegal) service that allowed people to download individual songs to their MP3 player.  The industry responded by filing lawsuits and taking Napster to court rather than listening to consumers and addressing the real issue.  Along comes Steve Jobs and Apple – iTunes is born and the recording industry is suddenly re-invented.
  • When asked what they felt about the decades old taxi industry – customers expressed their dissatisfaction with standing on street corners trying to wave down a cab.  The resulting Einstein Moment gave birth to Uber built on the technology of a smart phone. The taxi business was re-invented.
  • When customers were asked about the service they received from their banks – they expressed dissatisfaction with hours of operation and their ability to access service when they were not at work.  The result was an Einstein Moment that led to drive-thru windows and ATM machines that were available 24/7. The banking industry was re-invented.
  • And when it was observed how much time and effort was involved in shopping for everyday purchases – Jeff Bezos responded with amazon.com that gave customers access to nearly everything imaginable, available 24/7, delivered to your door in a few days, and now with Prime – without the cost of shipping on every purchase. The retail business was re-invented.

This is what Chef Jeremiah Tower meant when he called for a restaurant industry Einstein Moment – a time when a major paradigm shift results in reinvention, not fixing a problem.  Who will be our Albert Einstein, our Steve Jobs, or our Jeff Bezos?  When will we take a step back and allow our minds to wander, to incubate, and to think clearly about what the restaurant business can and should be like in the decades to come?

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com  BLOG

CAFÉ Talks Podcast

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THE APOCALYPSE FOR RESTAURANTS IS NEAR

31 Saturday Oct 2020

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It is the end of October 2020 and we are all focused on the National Election in just a few days.  We certainly should be zeroing on this event that will likely change the course of history and determine what America looks like and how it is perceived for generations to come.  While we wrestle with important issues of voter suppression, confidence in the system (how amazing it is that this is a concern in the United States of America), and whether or not one party or another will accept the results – there are two monumental disasters looming:  Covid-19 is rearing up its ugly head for a second and third wave that all indications point to as worse than the first (even if some may try to down play the threat) and as a result – the restaurant industry is facing the end of the road.  As Jeremiah Tower stated in a recent interview I conducted with him:  “This is not a challenge – it is the apocalypse.”

This is not an exaggeration, this is not a case of fear mongering, this is not political – it is a fact.  As winter looms heavy on every restaurateurs shoulders and those outdoor patios are closed due to weather – restaurant owners and chefs are breathing heavy as they know what lies ahead.  The pandemic is real, the virus is real, and people are scared.  Dining indoors is scary enough for both customers and providers, but opening inside dining with 50% occupancy is simply not workable financially.  Add to that the realization that at any moment, Covid-19 may force local governments hand and another mandated lockdown could be right around the corner.  Leisure travel is non-existent, and business travel is very limited.  Conferences and conventions are gone, weddings are not taking place in hotel and restaurant venues, meetings are virtual, graduations are accomplished on ZOOM , and those Friday night meetings of friends in a local bar or trendy restaurant have basically evaporated.  Each one of these changes is another nail in the coffin of the restaurant business.

Try as they may – restaurants cannot sell enough take out, press regular customers to purchase enough gift certificates, deliver enough re-heat meals, or convert enough dining rooms into marketplaces to cover their expenses and make up for that loss of full dining rooms.  Restaurants are facing really, really difficult times.  These are problems that they can’t ideate their way out of.  Even the best restaurant minds are at a loss – what can be done to stop the bleeding and ride out the storm that is likely to last another year?  Holy crap!  Most restaurants have a tough time surviving through one tough month – let alone nearly two-years.

Breathe deep, sit down, have a glass of wine or beer and think about a world, a country, a neighborhood without those familiar restaurants, those places where we gather with family and friends to celebrate, honor, laugh, toast, and communicate over great food.  We might try to convince ourselves that restaurants are a luxury and we can get by without them – but the reality is that restaurants are a very, very important part of our lives – we all need them.  We may have survived over the past eight months without those restaurants, but think about the hole in our lives as a result let alone the loss of jobs and the demise of small businesses. This is a serious and highly transitional time that will have a long-term impact on society. 

We certainly can’t ignore the dangers of Covid-19, it is our responsibility to do what is necessary to move through this, stay safe, and keep our neighbors healthy.  Restaurateurs and chefs, for the most part, do not deny this – but, the question is: “are we ready to pay the price?”  Are we ready to face a life without those places that are the core of a community?  Is there an answer, is there a way to protect each other and support the restaurant industry at the same time?

YES THERE IS!

First, and foremost – we need immediate assistance from the Congress and the Executive Branch of government.  It might even be too late, but we (I mean each and every one of us) must insist that Congress pass a relief bill that focuses on the individual, restaurants, and state governments that host all of those public services that we depend on.  A new wave of PPP support to help restaurants and other small businesses pay their employees (employees that are in rough shape through no fault of their own), intervention with landlords for reasonable deferral and payback programs for rent that can’t be met during the pandemic, and an infusion of funds to the SBA so that they can buoy up restaurants that need short term loans and consultation to help problem solve their crisis issues.

Second, we need to stop this politically polarized nonsense that denies the seriousness of Covid-19, ignores the directives of science, and coddles people who fight common sense over wearing masks as if they were middle school brats, and promotes dumb conspiracy theories that the virus is non-existent or far less serious than it is.  This is just absurd and we will never get back to anything close to normal unless we stop this foolish behavior.

Finally, we all need to do our part to support local businesses in ways that we can, while still practicing safe behavior.  We need a 12-month strategy that will support the 24/7 efforts of local businesses to survive.  The alternative is to accept a life after Covid without those restaurants that have been around for generations, those places where we gather to celebrate special occasions, take a break from the stress of work, or simply get together to clink glasses, share our day, and laugh with reckless abandon.  Remember those days, remember how important those opportunities were to our wellbeing? 

Call your representative, vote for those who know what needs to be done and stand on a soapbox to fight for yourself and those local businesses that make a community all that it can be.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

SAVE LOCAL RESTAURANTS – WE NEED THEM!

Be smart – wear a mask, socially distance from one another, wash your hands, and know that together, with effort, we can make a difference.

www.harvestamericacues.com BLOG

EFFECTIVE LEADERSHIP WHEN IT SEEMS TO BE IN SHORT SUPPLY

01 Monday Jun 2020

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I am a concerned spectator at a time when everything seems to be in question and every one of us lives on the edge. We fear, we adjust, we cope, and then there comes a time when our coping mechanism comes into real question. This is when leadership is most needed.

Leadership is always important, but seems to be in critical need when we are in time of crisis. This is when people turn to either those with the title or those with a history of leadership. Leadership, real leadership comes from four actions:

* What we hear

* What we learn

* What we say

* What we do

The issue of proximity comes into play, because it is difficult, if not impossible to lead in situations or lead people when a person has not walked in those shoes, does not know the people in need of leadership, or has not felt their desperation. It is not possible to truly lead those with whom you can’t relate. This is true of any situation, individual, or group. In situations where this proximity is not possible then a person with the title of leadership must engage people who can relate and then hear, learn, speak, and act in a manner that respects the knowledge of others.

This is true of leaders of companies, organizations, geographic areas, communities, or populations. It is true of mayors, governors, Congressional members, presidents, law enforcement, and judges, just as it is of those in the clergy, and the classroom. Proximity and history are important when it comes to leadership with positive results.

  • WHAT WE HEAR and LISTEN TO:

– Who are “leaders” listening to? Are they listening to people with the background to know, with insight that is based on experience, or with the talent to find solutions? If not, what are leaders basing their decisions on? Doesn’t it make sense to listen (not just hear) to those individuals in a position to understand what is before them?

  • WHAT WE LEARN:

– Effective leaders convert listening to learning and invest the time to build a level of understanding that factors in proximity and relies on experience and facts. When this is done then decision-making will more likely result in effective outcomes.

  • WHAT WE SAY:

– Effective leaders coach their words and base them on what they have learned – backed up with facts and input from those “experts” that they have effectively listened to. WORDS ARE POWERFUL – WORDS MATTER.

  • WHAT WE DO:

–           Finally, effective leaders take actions that are calculated, inclusive of expert understanding, and based on collaboration and strategic thought. There is never a guarantee for success, but this process is far more likely to reach that end result while earning respect and support.

At this critical time in our lifecycle (on the macro scale) we crave effective leadership in all areas. We look for leadership to guide us through this health crisis, we look for leadership to keep our priorities in line, crave leadership to help us build a strategy to work through a deep economic crisis and build confidence in that strategy, seek leadership to help our businesses survive and thrive again, pray for leadership to bring our country through a time of hate, anger, and despair; and seek leadership to bring our communities and nation back to a time of integrity and strength.

On the micro level, let’s look at the restaurant industry, an industry that is truly in a crisis situation. We are all aware, at some level that this is an immensely important industry, and at the same time – a very fragile industry. Unless a leader has “proximity” then he or she cannot truly understand the level of fragility and despair. We hear of major restaurant companies that struggle, but pay far less attention to the small business, the independent restaurant that represents the largest segment of the industry and the most fragile. If these operators are unable to recover from the worst health and economic challenge in our lifetimes, then the future of the restaurant industry is truly in jeopardy. Unless our leaders have proximity or build proximity into their decisions, then it is very likely that those mom and pop operators will fall. It is that simple. That local café or diner that has been part of your quality of life for years is in jeopardy. That local pizzeria that makes the best pie around is in jeopardy. That chef owned fine dining restaurant is in jeopardy. That world-famous bar-b-que joint that has been around for generations is in jeopardy. And that coffee shop where you greet your favorite barista on the way to work or use their tables as a temporary office to support you on-line business is in jeopardy.

Unlike that corporate restaurant firm with dozens or hundreds of outlets offering consistent product and service, your independent operation does not have the advantage of a marketing department, human resource officer, significant lines of credit with a bank, or leverage with vendors to gain better pricing through volume. Those chains are far more likely to gather their collective minds to find a way out of the storm and survive a period of business downturn. That independent operator measures their ability to survive in terms of a few weeks without sufficient business revenue.

Here is the reality: PPP loans that turn into grants don’t work for most independents when the conditions associated with that loan to grant remain inflexible. Allowing those operators to open with a restriction of 25% or 50% capacity does not help a business that depends on filling their seats and turning tables once or twice on a weekend night. It doesn’t help those restaurants if their bar operation is unable to accommodate revelers who seek to mingle with friends and buy a few rounds. It doesn’t help those independents when customers remain fearful of being in an environment where people cluster. It doesn’t help those independents when there are no clear answers to the questions above.

When the President’s Council for economic recovery only includes CEO’s from major restaurant chains and a few very high-end operations and shuns representation from mom and pop restaurants and shops – then any solution found will avoid listening to, learning from, speaking to, and acting upon a base of knowledge that really reflects the restaurant industry in America.

Where are the knowledgeable leaders who share proximity with the operators most clearly impacted by decisions that are supposedly designed to help restaurants recover? Where are the knowledge leaders who understand that this is an industry of diverse individuals who are on the lower end of the pay spectrum, and who try to get by without baseline benefits? Where are the knowledgeable leaders that understand the cliff that these restaurants live on without the benefits of help that exist within those restaurant chains and high-end operations that may be more flush with cash?

The best ideas for these independent operators cannot come from an assumption that throwing a bit of money their way and simply encouraging them to find their own solutions is enough. Leaders need to understand that the majority of these independent operators are good at two things: making consistently good food, and providing real service for guests that they work hard at knowing and caring for. They are not marketing experts, social media aficionados, financial planners, systems analysts, physical plant designers, or strategic planners. They are good at what they do and need real help with everything else. Remember – they are not responsible for this crisis – they are living with the necessary decisions that others made to protect public health.

How about boosting the breadth of assistance that the SBA offers to include building recovery strategies for small restaurants? How about financially supporting the SBA to recruit hundreds or thousands of regional restaurant/business consultants to roll up their sleeves and work on site with independents on recovery plans? Why not invest government spending in aligning small restaurants with culinary and business schools to provide additional training leading to recovery action? Why not subsidize local banks to cover some of their concerns about lending money to community restaurants in need? Most small restaurants know that a meeting with their bank to seek a larger line of credit or low interest loan to make physical changes to their operation in an effort to maximize sales while supporting social distancing will lead to a “sorry we can’t do that” response. This is where these independents need help. These are the type of solutions that can come from leadership that relies on proximity, listening, learning, speaking the truth, and acting accordingly.

Restaurants need real help and they need it now! If these restaurants fail so too will our economy. As the second largest employer of people in the U.S. – the restaurant industry (mostly independent operators) needs real help, not just a handout.   These are proud people who have given everything they have to the businesses that they operate. These restaurants are their dream, their life, their purpose and we should all be conscious of how much they mean to the communities where they hang a sign that reflects this.

Where is the leadership?

PLAN BETTER – TRAIN HARDER
Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

*PHOTO:  The proud Mirror Lake Inn Culinary Team 2006

RESTAURANT SURVIVAL MOVING FORWARD

19 Thursday Mar 2020

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We have never seen anything like this. Everyone in the restaurant industry is petrified beyond today – they immediately think about how impossible it might be to dig themselves out of the hole being created. I have communicated with many who are crushed with fear, a sense of loss, and helplessness after telling employees that they can’t keep them on and there is no indication of when things might return to normalcy.

The National Restaurant Association predicts that the industry could lose 5-7 million jobs as a result of the Covid – 19 virus and subsequent required closings.

There is no question that the restaurant industry, one of the largest employers in the country, an industry that is important for the nutrition, mental, emotional and spiritual wellbeing of the population, and a business that has become an integral part of the American lifestyle, is in need of help. Here are some thoughts:

[]         Small, privately owned restaurant operators, chefs, and cooks, bartenders and servers are proud people. They are typically under compensated for their work and under-appreciated for their commitment, but they remain proud. These proud people are not looking for a handout – what they want is a fair shot at remaining in business and being successful.

[]         Government intervention through provision of 0% short and long-term loans to help these restaurants survive and rise up when this crisis is over is a fair shot.

[]         Rent forgiveness or timed payment delay for the next few months provides them with a fair shot.

[]         When a portion of a city starts a process of renewal one of the first businesses to get the ball rolling is typically a restaurant. When the restaurant draws a base of customers then other aspects of renewal fall into place. Rent control for these initial business risk takers gives them a fair shot.

[]         A $15/hour minimum wage gives employees a fair shot and as long as restaurateurs are given guidance on how to adapt to increased wages then the operation also has a fair shot.

[]         Extended and expanded unemployment insurance will give employees a chance – they do pay into this.

[]         Why not energize a partnership between the SBA and Culinary, Hospitality and Business Colleges? Keep in mind that everything will change as we eventually claw our way out of this crisis. This change will impact restaurants and all of those businesses that feed into it, including colleges. A federal initiative to mobilize these experts to provide additional guidance, training, and consultation to restaurants as they seek to find ways to survive and come through this – prepared to succeed is a fair shot for restaurants and an opportunity for colleges. This is a perfect time to focus on training.

Additionally, colleges, especially private ones, will likely face a significant drop in applications and enrolled students as America seeks to regain confidence and rebuild their financial stability. This training partnership with the SBA could provide an opportunity for schools to shift their focus and business model – at least for the time being.

[]         As part of any increase in unemployment insurance without the prospect of finding work elsewhere – why not redirect the initiative for free tuition to free on-line training for workers in specific fields. Set aside the need to focus on degrees and push for training in fields that will need a better-prepared workforce in the coming few years.

[]         There are, and there will be even more Americans who are nutritionally disadvantaged. School lunch programs, unemployed workers, senior citizens, and the homeless will face incredible food hardships. Why not engage our country’s food logistics champion and appoint Chef Jose Andres to head up a nationwide and government supported initiative to end hunger in America. Working with restaurants, the millions of cooks from coast to coast, and restaurant organizations this could be one of the most important initiatives to rise up out of the current crisis.

We must, obviously, put our full effort into fighting the threat of Covid-19 and building renewed confidence in our ability to keep the population safe and healthy, but we know that at some point soon, the economic perils that we face will be just as significant. We must plan quickly on how to do more than simply throw money at the problem and avoid being focused on just today. Tomorrow will come much too quickly.

The restaurant industry is only one of many that will face a troubled future, but we do know that real recovery must include emotional and mental health that restaurant experiences play such an important role in addressing. We will know that a new normal has arrived when our restaurants are once again full of people enjoying each other’s company, a great plate of food, and a chance to laugh again.

PLAN BETTER – TRAIN HARDER

Restaurants are Essential

Harvest America Ventures, LLC

http://www.harvestamericacues.com