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DON’T SETTLE FOR MEDIOCRITY

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It would be difficult to find a more sinister, demoralizing, harmful, or self-destructive word than mediocre.  Mediocre sucks the lifeblood out of an individual or an organization – it is the dark side of the moon, the harbinger of discomfort and pain, and the salt in the wound that saps your energy and leaves you hardened and embarrassed.  Am I over-dramatizing it – maybe, but then again –  maybe not.

When we settle for mediocre we relegate ourselves to a life of not good enough, also ran, and didn’t care enough to make it.  Is this where you want to be?  Look around you – identify the companies, businesses, or individuals whom you admire – you know, the ones that seem to win a lot and fit into that category of “successful”.  Even more important – these are the companies, businesses, or individuals that seem to enjoy what they are all about.  These “successful” players are there due to one very important reason: they never accept mediocrity.  In fact, just the opposite – they constantly seek excellence and always know that as good as they may be – they can always be better.  Mediocrity has no place in their vocabulary.

These are the Ritz Carlton’s of the hotel business, the Tesla’s of electric autos, the Wegman’s of the grocery business, the Apple’s of computer hardware and electronics, the Harvard’s of business schools, and the French Laundry’s of the restaurant industry.  We know them by name, we oftentimes buy their products and services, we read about their success, and we aspire to be like them in some small way.  Look deeply into these businesses and the people who own and operate them and you will see an unrelenting effort towards achieving excellence in design, product quality, efficiency, value, and service.  The culture of these businesses insists on the relentless pursuit of greatness.  The Japanese would refer to them as companies focused on “Kaisen” (a pursuit of constant improvement). 

Now here is the kicker – excellence has very little to do with the price you charge or the type of product or service you provide.  The big misconception is: “You get what you pay for”.  This is an excuse that allows a person or a company to accept being mediocre.  “It’s only a hot dog” – so excellence is not an option: WRONG.  “It’s only a plate of spaghetti” – so excellence is a pipe dream – WRONG.  “It’s only beer” – so why even focus on excellence – people will drink what you pour – WRONG.    “This isn’t the French Laundry” so why even invest the time in plate presentation and cooking it properly – WRONG. 

Take a simple hamburger – the second most popular item on American menus (a close second to pizza).  Ground beef, lettuce, tomato, onion, and a bun – simple right?  Walk through the steps toward excellence:

  • What blend of meat and what fat content make the most flavorful and moist burger?
  • What method of cooking will yield the best opportunity for caramelization and deliciousness?
  • What piece of equipment will be most successful in reaching your goals of deliciousness?
  • Which type of lettuce will provide the freshness, the crunch, the mouth-feel, and the flavor balance with that perfect burger?
  • Which type of tomato will present the most pronounced flavor of fine ripened, deeply refreshing acid/sweet balance on the sandwich and how can we ensure this consistently throughout the year?
  • Which bun sits best in the hand, has the balance of crust and soft interior, toasts well and holds its shape while absorbing the juice from that perfectly cooked burger?
  • What type of onion provides the aroma, sweet bite, and intensity that cuts through the fat of the burger to offer the perfect package of flavor and texture?
  • Should the fries offered on the side be hand cut or frozen?  If hand cut – which potatoes offer the right balance of starch and sugar to brown properly and hold their shape?  What type of fat and what is the best temperature for producing the perfect fry?
  • Should pickles be sliced in coins, sliced lengthwise, cut in wedges, or left whole.  Should we pickle our own or buy them? Should they be sour dills, half dills, bread and butter pickles, or intensely spicy?  What works best in creating excellence?

If you walk through these questions and answer each with excellence in mind it is easy to see how the simple acceptance of mediocrity will never set the stage for success, but an all out assault on mediocre decisions with an over-riding intent to make “the absolute best burger in the history of mankind” can lead a restaurant of any type to be superior and to create loads of  “WOW” experiences for guests.

Create a similar checklist for every product on your menu, regardless of the type of operation or the prices on you charge and you will find a path from mediocrity to excellence. 

Now, here is the bonus: when mediocrity is replaced with excellence then every person who works in an operation feels the power of earned pride.  Excellence will eventually become the norm with everything that they do – on the job and off.  At some point their work stations will be better organized, their uniforms will look a bit more pristine, their knives will be sharper, their attitude toward others will be brighter, and their acceptance of mistakes or slips towards mediocrity (from themselves or others) will not be tolerated.  As the movement towards excellence becomes the standard – everyone and everything will begin to rise up.  At some point excellence will no longer be a destination – it will become a habit and an essential part of a business culture.

When excellence is the standard method of operation for the business then purveyors will work extra hard to make sure you receive the best ingredients, the best potential employees will be knocking on your door for an opportunity to join the team, the regional press will notice and be more inclined to tell your story, and occasional customers will become steady customers and eventually ambassadors to spread the word about a GREAT restaurant (or school, car dealership, shoe store, or insurance agency).

Now this doesn’t happen overnight – it is a process that takes time, but it starts with the small stuff.  It is your job to SWEAT THE SMALL STUFF.  It is your job to make sure the equipment in the kitchen is in good working order, the store rooms are organized, uniform appearance is monitored, the dining room tables are steady, employees are constantly being trained, the dish pit procedures produce spotless china, glassware, and flatware; the windows are clean, the parking lot swept, the signage is maintained, and the bottles on the back bar are dusted with labels facing forward.  All of the details from the mix of beef in your hamburger to the polish on the flatware will lead the operation away from mediocrity and pointed in the direction of excellence.  This can work for the hot dog stand that attracts customers from 20 miles away to the fine dining restaurant picking organic fresh vegetables from their roof top garden.  The formula is the same – it’s all about your interest and commitment to make it happen.

PLAN BETTER – TRAIN HARDER

Eliminate mediocre from your vocabulary

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com  BLOG

CAFÉ Talks Podcast

https://cafemeetingplace.com/cafe-podcasts

THE AMERICAN RESTAURANT 2022 (Post Pandemic)

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Ah…now is the time for everyone to start speculating about what the restaurant business will look like when all of this craziness is over.  Let’s start with what we are fairly comfortable saying:  whatever “normal” is will likely not make an appearance until the end of 2021 – so…let’s begin our speculation with January of 2022 to be safe.  I know what you are thinking – WHAT!!!! Restaurants cannot wait that long, no way, no how – this is the end of the world, as we know it.  Sorry – just trying to be realistic.  Once we have a target we might at least be able to plan effectively to either re-invent or throw in the towel.  At least the real bad news is out of the way.

Now, let’s think about the purpose of restaurants so that current and potential restaurateurs and chefs can choose the direction they want to take. 

THE PURPOSE OF RESTAURANTS (Where do you want to fit)

  1. To nourish and provide sustenance
  2. To offer convenience
  3. To provide a forum for conversation
  4. To create opportunities for gatherings
  5. To reward customers
  6. To provide an outlet for chef creativity
  7. To complete a neighborhood or destination
  8. To rock customers world

There may be more reasons, but these are the most common.  So choose where you want to sit and lets jump on the speculation train.

[]         NOURISH AND PROVIDE SUSTENANCE:

Without a doubt – one of the primary purposes of a restaurant and one that supports the defined needs of a guest is to fill their stomachs.  There are numerous multi-billion dollar chains along with countless mom and pop operations that do a great job on this front.  Of, course the food must be tasty and appealing at some level and above all else – consistent.  If this is your purpose then the field is wide open and will remain so as long as the price you charge matches the level of purpose.

[]         OFFER CONVENIENCE:

Quite often, the restaurant that is focused on nourishment is also great at providing convenience.  In a world where everyone seems to live on tight schedules – convenience rules the day.  How convenient you might ask:  we barely need to slow down our cars and roll down the window when our food arrives – that’s convenience.  During the pandemic – those operators who have been able to convert their operations to take out, curb side, or delivery using third party providers like GrubHub and Uber Eats have hit the nail on the head.  Safety and convenience are first and foremost in consumer’s minds.

[]         PROVIDE A FORUM FOR CONVERSATION:

The heart and soul of many communities is a place where conversation flows freely –  a place where opinions reign and where judgment of others is set aside in favor of a free flow of ideas.  This was (is) the design of classic coffee houses, speakeasys, and corner cafes for generations.  Whether a restaurant or tavern fills the role is dependent on many factors, but high on the list is the owner’s intent on creating a mecca for this to take place.   If creating this type of environment is high on your list of priorities then there will come a time, an important time, when we are able to return to this type of interaction. 

[]         TO CREATE OPPORTUNITIES FOR GATHERINGS:

Houses focused on catering informal and formal events whether it is that tavern where people gathered after a game to celebrate a win or commiserate a loss, the banquet hall booked for weddings, reunions, birthdays, and holidays; or simply that restaurant where you can always depend on familiar faces to clink glasses with – gathering spots are important.  We have felt the pain of their loss over the past year, and will need to do without them a bit longer, but in all likelihood they will return in a very robust way once it makes sense. 

[]         TO REWARD CUSTOMERS:

There are operators who enter the business for altruistic reasons:  to bring happiness to people, to reward them when others may forget to do so, or even to allow guests to find their own reason to seek a pat on the back.  Great food and drink and honest, sincere service can be the sunshine at the end of a not so terrific day.  This is what hospitality is all about.

[]         TO PROVIDE AN OUTLET FOR CHEF CREATIVITY:

The definition of a chef sometimes includes: “frustrated artist”.  Individuals who dedicate their lives to the preparation of food often view the plate as their canvas and what they do as something far more than just nourishment.  This may be your priority, but know that those on the consuming end may not appreciate the chef’s art form.  Restaurants are businesses as well and the customer is the other end of the restaurant tug of war.  Art is wonderful, but in business it must sell to have any real value.

[]         TO COMPLETE A NEIGHBORHOOD OR DESTINATION:

Look at your own neighborhood and point to any common point of interest that helps to bring people together and turn a few blocks of houses into a community of homes.  Chances are pretty good that the point of interest will be a restaurant.  Gentrification or urban renewal almost always begins with the opening of a place of dining.  Focusing on this makes both altruistic and good business sense.

[]         ROCK CUSTOMERS’ WORLD:

Ah, then there are restaurants, restaurant owners, chefs and cooks who see the operation as a vehicle for standing out, for making people jump up and applaud, for confusing the competition and helping people focus on food experiences that they never imagined.  These are the risk takers, the individuals who push the envelope, and the ones who work like crazy because they have a goal of knocking people’s socks off.  If this is your objective then know that it is hard, it involves the fickle nature of consumers, it requires superhuman effort to earn and then more to maintain a reputation for “the extraordinary”.  To see this as a goal is to make a lifetime commitment to constant improvement because what rocks a customer today will become ordinary tomorrow.  Many have tried, but few have succeeded.

So, what will rise to the top when the Covid Monster has gone into hibernation?  Impossible to say, but there are some indications of change they just might have staying power.  Here are a few to chew on:

  1. GHOST KITCHENS are making people scratch their heads and wonder if this is the next “big” thing.  Rent kitchen space, develop multiple concepts around a core of ingredients, develop a separate branding campaign including “order friendly” websites, contract with a third party delivery service and go to town.  Minimal staff, no long-term lease, no property taxes, no dining room, no service protocol, and social media as your only marketing initiative.  If one of those brands fails to move well then shut down the website and you are done.  Much of the sizzle is set aside, customer interaction is non-existent, and the feeling of community may be lost – but it certainly is interesting and it eliminates many of the challenges that restaurants face.
  • FOOD TRUCKS are not a passing fad.  Eliminating the need for brick and mortar and a set location give restaurateurs a chance to take the product where the customer is and move freely when customers have a need to do the same.  Limited, focused menus; high impact flavors; spontaneity, and limited staff needs make this a very attractive model for chefs and owners.  Add a rented commissary kitchen space (ghost kitchen) for prep and you can scale a hot concept to multiple trucks working an entire city.
  • POP UP RESTAURANTS give a chef the opportunity to experiment with concepts, menu items, styles of service and preparation, and even multiple locations.  Running a concept for a few weeks can provide enough analytical data to support the need for a brick and mortar operation someday down the road.  It makes sense to move in together before marriage.
  • GROCERY STORE PARTNERSHIPS provide chefs with another potential outlet for their product without the headache of dining rooms, service staff, and the pressure of the clock.  Renting shelf or cooler space for your product places the merchandising, collection of cash and credit, and facilities maintenance in the hands of the store.  Placing your product in a location where customers visit anyway opens the door for spontaneous sales providing your packaging and point of sale merchandising is top shelf.
  • BRICK AND MORTAR OPERATIONS will have a much more difficult time rising from the destruction that the pandemic is leaving behind.  Lease, mortgage, utilities, staffing, and the need to convince people to visit you is even more of a challenge than in the past.  There is little doubt that location restaurants will return, will service the needs of customers, and in some cases will thrive, but they’re a far greater gamble than other options – at least in the short term.

Be cautious, but through planning and the willingness to make solid business decisions you can find a market for your product and service.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com  BLOG

CAFÉ Talks Podcast

https://cafemeetingplace.com/cafe-podcasts

THE RESTAURANT ECO-SYSTEM NEEDS HELP

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There are a number of reasons why restaurants fail – some are predictable and avoidable, while others can catch a business off guard.  None, however, are as devastatingly out of the operators control as this pandemic.  Even the best operators are at a loss for solutions.  There are short-term band aid solutions such as takeout, delivery, or even conversion into retail markets where wine inventories and local necessities take over space once occupied by diners, but they are not a replacement for a steady turn of tables.  Restaurants have been relegated to outside dining or limited indoor space with loads of protocol limitations (some that are even more stringent than what is expected of other businesses) – this doesn’t pay the bills or keep a staff employed.

The pandemic is an “all hands on deck” problem that can be somewhat contained through simple precautions, but until there is mass vaccination of a population – these precautions dig at the heart and soul of a business that is essential to our way of life, our psyche, and our social health and wellbeing. 

There have been well over 100,000 restaurants that have closed their doors permanently as a result of the pandemic.  Many of these restaurants have been around for decades or even generations.  They just can’t survive the pain of lost business for months on end.  Now, this alone might not keep the average consumer or politician up at night, but what they fail to understand is that restaurants are at the center of a broad eco-system of businesses that are inter-dependent.  When your favorite restaurant closes its doors it is disturbing and sad, but it is also part of a domino effect that can tumble out of control.

Here are some of the other businesses that suffer when a restaurant closes, sometimes they too cannot survive as a result:

[]         Regional Farmers:  A significant percentage of farm crops are dedicated to restaurants.  A reduction in restaurant business leads to crop waste, unplanted land, and serious cash flow problems for farmers.  Already living on the edge – smaller farms cannot withstand this loss of business volume.

[]         Fisherman:  The end consumer’s love of fish cannot sustain a fisherman’s need to catch and sell a quantity of product to offset their expenses.  Restaurants account for a large percentage of a fisherman’s direct or indirect business volume.

[]         Ranchers:  Have you noticed that the price of beef, pork, and chicken has increased significantly over the past few months?  Those processing plants need to cover their substantial operational costs now that restaurant business has all but disappeared.  If processing plants cannot find an outlet for their end product then this trickles down to the rancher who is saddled with cattle, pigs and chickens without a market.  The end result is reduced herds, increased cost of feed, land without sufficient grazing, etc., etc.

[]         Cheese Makers:  Cheese, although there are exceptions, is still a product with a shelf life.  When restaurants fail or reduce their product needs, then cheese makers must do the same.  Inventories wane, waste becomes a real concern, decreased cheese product means a reduced need for milk putting a strain on dairy farmers, and the lists goes on and on.

[]         Equipment Manufacturers:  Restaurant kitchens are home to some very expensive equipment – when sales volume evaporates then restaurants are faced with aging equipment that they cannot replace, and delays in opening new operations that require equipment purchases.   There is no other outlet for this specialized equipment.

[]         Breweries:  Sure, maybe consumers are directing their beer purchases to their local package store, but breweries know that this direct to consumer cycle is not sufficient to support their growing expenses.  It is the restaurant segment of their business that creates a steady flow of cash to support their endeavors. 

[]         Distilleries and wineries:  The same holds true for those who market distilled beverages, and of course the wine industry.  Restaurants are the mainstay of business for vintners both domestic and imported.

[]         Table Top Manufacturers:  Restaurants are constantly buying and replacing china, glassware, and flatware for their restaurants.  It is a business that is predictable and dependable – until purchases stop.  Every restaurant that tries to survive during these difficult times will commit to tightening their belts and deferring any purchases that are deemed non-essential.  Those companies focused on tabletop have found that their business has disintegrated.

[]         Local Musicians:  Musicians need to play.  That wonderful local talent that graced the stage in bars and restaurants, and at banquets and festivals no longer has an outlet.  There is literally no opportunity for them to play and earn a living.  The need to survive will have a long-term impact on the availability of live music for quite some time.  Musicians depend on the restaurant business.

[]         Florists:  Sure – florist shops do very well on Mother’s Day, Easter, and Valentine’s Day – but the rest of the year involves a full-time focus on weddings, banquets, reunions, anniversary parties, and daily restaurant floral displays.  When this business goes away (there are no conferences, large wedding receptions, business gatherings, or restaurant floral displays during the pandemic) then the florist is left with unsustainable cash flow.

[]         Linen Companies:  The vast majority of restaurants do not have laundries where tablecloths and napkins, and restaurant uniforms and side towels can be laundered, starched and ironed.  These restaurants rely on linen companies for this service as they rent all of the above.  When business dries up in restaurants – so does business disappear for linen companies.

[]         Wholesalers:  Those companies that collect, deliver, stock, and bill for essential ingredients in restaurants depend, almost exclusively, on restaurants for their business.  Unless they can change their business model and supply ingredients directly to consumers – then wholesalers are left with a greatly diminished amount of business volume.

[]         Clothing Stores and Uniform Companies:  Those local clothing stores take a direct and indirect hit from a faltering restaurant industry.  Directly – those clothing stores that have relied on providing restaurant uniforms have found that their business model is void of customers.  Indirectly, as fewer people take the risk of dining out and shelter at home during the pandemic, they also cut back on clothing purchases that they can display when enjoying a night at their local restaurant or bar.

[]         Coffee Growers and Roasters:  The direct to consumer market for coffee roasters is certainly important, and at some level the take out business and home brew option is still strong, but still a large section of their wholesale business has dried up as restaurants fail at an alarming rate while others have seen business volume decrease by 50% or more.

[]         Landlords:  Building owners have been a target during the pandemic as restaurants have found it impossible to meet the requirements of a lease.  In the end, the landlord also has to pay bills and when a restaurant defaults – they find themselves in a very difficult situation.  “Should we cancel a lease for non-payment and evict the tenant, or should we try to compromise?”

[]         Bakeries:  Most small to medium sized restaurants cannot afford the space or talent needed to produce their own breads and other baked goods.  So, they rely on local or regional bakeries for those goods.  Many bakeries have built their business model on this type of wholesale as their mainstay.  When restaurants fail – they take your local bakeries with them.

[]         Culinary and Restaurant Management Colleges:  With a decrease in the number of restaurants and significantly lower volume of business – there is far less need for those young, eager graduates.  Schools are experiencing dramatic declines in enrollment and challenges in job placement.  Every day brings another college program closing.

The list could go on and each of these listed businesses has their own eco-system of impacted operations.  The point is that that failing local restaurant is only part of the dilemma.  If we allow restaurants to fail, then we allow the entire ecosystem to fail as well.  If restaurants are financially healthy then the system works well.  Right now the restaurant industry needs help from the Federal government.  Without extended PPP benefits, bank loan deferrals, help for landlords, and business recovery training for small restaurants – this system will crumble.  Restaurants cannot wait until 70 or 80% of the population receives a vaccine.  Restaurants cannot survive until the fall of 2021, restaurants cannot continue to wonder from week to week whether they will be able to accept indoor customers or not and they cannot wait for politicians to find a way to talk respectfully to one another.  They need help now!  If this is not provided then an important part of our culture, a major employer of people, and the heart of the food ecosystem will not survive.   Write to your representative, speak your mind through the media, stand in support of your local businesses and do your part.  We have lost too much over the past 9-months; don’t add your local restaurants to the list.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com  BLOG

CAFÉ Talks Podcast

https://cafetalks.libsyn.com/

THE FUTURE OF THE RESTAURANT BUSINESS

13 Tuesday Oct 2020

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Numerous people have asked me, over the past few months, what I think about the future of restaurants in America.  Of course, this is a question without scientific studies to back up an answer – this is pure speculation.  However, there are a number of indicators that point to a very challenging few years ahead.  The simple answer is nobody knows for sure, but it doesn’t look good.  Please read through till the end, because it’s not all doom and gloom.

Here are the challenging indicators

In the short term:

  1. A capacity limit of 25% or 50% simply doesn’t work for an industry with substantial fixed costs and low profit margins.
  2. The difficult labor situation pre-Covid was tough, it’s even worse now, as many people have decided that a job in the restaurant business is just not worth it.
  3. Landlords can only be forgiving for a short period of time – they have bills to pay as well.
  4. Customers may put their toe in the water and test the safety of going to restaurants now, but all that it will take is an outbreak traced back to a restaurant to change everything.
  5. The industry, in many parts of the country, had a decent summer season, but that was because of outside dining.  In many parts of the U.S. that is beginning to change as winter looms large.  Dining inside is just not as attractive right now.
  6. Un-employment and under-employment eradicate unnecessary family expenses – so restaurants are right back where they were after the 2008 economic crash – they are not essential.
  7. Small restaurants, in particular, are just like their employees.  They cannot endure long periods of time without a revenue stream.  Many restaurants cannot survive past a month or so without throwing in the towel (It has now been more than seven months).
  8. Our government just doesn’t get it.  Restaurants are important to the economy, they are important to American’s piece of mind, they are effective ways of bringing people together especially when everything else seems to push them apart, and restaurants tend to define a community or neighborhood – they are the heart and soul of what makes a community gel.
  9. It is estimated that as many as 50% of the nations restaurants will close and never re-open as the virus continues to thwart any chance of financial survival.

In the long term:

  1. Restaurants don’t want a bail out – they want support and real help.  This means that American entrepreneurs need the support and advice of experts to help them figure a way out of this business mess.  These restaurants need training and mentorship, they need easier access to low interest loans, they need some type of easement on their rents (which requires federal support for landlords), they need extended unemployment benefits for their employees and they need a national marketing program to focus on the importance of your neighborhood restaurants.
  2. This pandemic has revealed significant problems with the U.S. supply chain.  This is just as important as talk about infrastructure rebuilds.  Without real dialogue that looks hard at centralized production and distribution vs. a return to a more de-centralized model – there is little doubt that the supply chain will continue to show its weakness.
  3. Low profitability and intense need for lots of hands to get the job done are issues that have plagued the success of restaurants for many decades.  The country needs a load of great minds to figure this one out.  With an increased failure rate among restaurant start-ups, soon enough we will see a decreased interest in becoming a restaurant entrepreneur.
  4. Low pay and meager benefits have been associated with restaurant work forever, finding a solution to this is long overdue.  Ask yourself: “Why would anyone want to work in a high stress, physically demanding, unpredictable, labor deprived powder keg industry when pay is below the national average for skilled workers, employer paid healthcare is impossible to find, sick leave is even rarer, vacation time is questionable, personal days are non-existent, and predictable schedules are impossible?
  5. For seven months people have become accustomed to avoiding restaurants, cooking more at home, and saving money that would have normally been spent for a dine out meal.  Will they return at some point as though this period in time was just a slight inconvenience?
  6. As restaurants suffer from low participation and in many cases – closure, so too have culinary schools who had the job of training tomorrows cooks, chefs, and restaurant entrepreneurs suffering from low enrollment and less than stellar placement opportunities for graduates.  This adds to the draining of the labor pool.

So, indications for long-term recovery and success are not great.  But, this does not mean the restaurant industry will not recover and regain strength over time.  These factors simply change the face of an industry that has evolved very little over the past 50 or so years.  There is, and will be, real opportunities moving forward for those who can recognize and solve the immediate problems, accept the need to change – really change, and approach tomorrow with passion and enthusiasm.

This is what I (again, no scientific data to support my theory) think will occur over the next few years:

  • There will be a wholesale culling of restaurant numbers.  Those who are not business savvy with disappear, those who fail to recognize that they need to re-invent will disappear, and those without quality leadership will not have the heart and energy to carry on.  This breaks my heart to see; yet it is the most likely scenario.
  • Those who stand tall and admit that they need help, seek out those who can encourage change and show them the path, and those who relish the opportunity to become truly different will find a path to renewed success.  Of this I am certain.
  • Those who re-design their systems to reduce the number of hands required in a restaurant while increasing efficiency and quality will be able to pay their employees better and find a way to create improved work/life balance for their most important assets – people.
  • There will be a movement towards more reasonable dialogue and contractual agreements with landlords.  There is a space for effective compromise here.
  • More and more – mobile options for restaurants will gain traction.  This means more food trucks, more appropriate licensing and tax burden sharing with communities, and wider acceptance of this as a long-term answer.
  • Take out food will rise to a new level of excellence as most restaurant realize that although this will never be their most profitable way to present a meal – it will be an expectation and they had better do it exceptionally well.
  • Consumer education will become the norm through on-site classes, video chef demonstrations, and instructional links for take out customers – how your food was prepared and how to refresh it at home.
  • Partnerships between schools and restaurants will provide opportunities for certificates and degrees in culinary arts that cost less and result in better-trained graduates.  Schools will need to speed up the process of learning, ensure that what they teach is relevant, and build hybrid delivery experiences that are as good or even better than full-time person-to-person.  Refresher process specific course work will become available on line or through social media, and those who enroll in school will be able to access skill updates for life.  The connection between schools and students will never end and job placement will become the key element of an education with some level of guarantee that those who complete a course or degree are “kitchen ready”.
  • The safety protocols that larger chains have adopted and seem able to deliver will be just as well programmed in those independent operations.  As a result, the neighborhood restaurant will have a fighting chance of regaining their support in communities across America.
  • The government will eventually see the importance of restaurants to our way of life and will re-invigorate the breadth of work and power of the SBA to do so much more.  They will be able to provide training and consultation for small restaurants, help them negotiate better terms for long and short-term bank loans, and connect hundreds of thousands of independent operations to a national marketing campaign that helps the industry attract employees, and convince the public that these businesses are streamlined to keep them healthy and safe.
  • Finally, the Department of Commerce, the U.S. Department of Agriculture, the Food and Drug Administration, and professional commodity groups, food related organizations, and chefs will form a taskforce to look deeply into the changes needed for a stronger, more resilient food distribution system.

I truly believe this and am confident that with leadership in Washington that is more in-tune with the issues facing restaurants – things will change.  It will take time, but as has been the case through national and international disasters over many decades – the restaurant industry will rise up and thrive again.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

CAFÉ Talks Podcast

https://cafetalks.libsyn.com/

COOK FOR ME

17 Friday Jul 2020

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I have seen the following quote from Anthony Bourdain many times before, but today it really resonated. It is a statement so simple, yet so profound; so foundational, yet so deep and meaningful; so intriguing and so beautiful. This statement strikes a chord with every professional cook, every chef, and every entrepreneur who owns that intimate corner bistro that opens its doors to a community. This is a statement that strikes a chord with every grandparent who protects those family recipes, every parent who tries to hang on to family traditions, and every friend who seeks to find the best way to project how much they care for another person. This is a statement that resonates with everyone who seeks to demonstrate who they are and what they care about.

“When someone cooks for you – they are saying something. They are telling you about themselves: where they come from, who they are, what makes them happy.”

-Anthony Bourdain

COOK FOR ME is a request that allows the person who ties on an apron a chance to bare his or her soul, to demonstrate how heritage impacts the plate, to talk about joy and pain, memories and challenges, and the love that they have for those who will share what they present through food. This is a big ask, a personal ask, a request to have the cook reveal everything about him or herself.

Cooks never take this request lightly – it is as if the ask was similar to “tell me everything about yourself”. There are few requests that are more personal, few that are more significant, and few that help to solidify a relationship more than: “cook for me”. To a professional – this is an opportunity to shine, to give his or her all, to stand tall and put everything on the table: “This food is a reflection of me, my history, my skill, what I care about, who has influenced me, and a compilation of those experiences that have brought me to this point”.

I paused this morning when I read Bourdain’s words again because there may have never been more important words to cooks; never more telling of why, deep in their heart, a person decides to become a cook or a chef. Once you peel away the necessary layers of: “I need a career, a paycheck, a marketable skill, a way to support my family, a way to fill up my days, etc.” – underneath all of that is a desire to bare your soul, to define what makes you happy, and a way to express that to others.

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“Why do you want to become a cook”? This is a question that many will pose to you as you contemplate a career in the kitchen. Think about your answer; think seriously about how you will answer this question. If you respond by relating to a career, a paycheck, a marketable skill, a way to support your family without giving due consideration to the deeply personal meaning behind it – then you really should think twice. Yes, all of those factors are important and necessary, but they do not reveal what makes a cook a cook, a chef a chef, a restaurateur a restaurateur.

Those cooks, chefs, or restaurateurs who peer out the front window of that corner bistro – minutes before opening the door, are doing so in anticipation of bearing their heart and soul, representing their history and their experiences on a plate, and welcoming others into their space so that they can share all of this. Cook for me is such a personal request and cooking for you such a form of personal expression.

To prepare a meal for someone else is to share everything, giving the guest a chance to find out what makes you tick – a chance to reveal so much that might be missing in simple conversation.

“You learn a lot about someone when you share a meal together.”

-Anthony Bourdain

Think about those early days of building a new personal relationship. Maybe the first few experiences together were relegated to a third party: a dinner or two at your favorite restaurant, a concert, a movie, or a gathering with friends. One of the best ways to solidify whether or not the relationship has staying power is to invite that person to enjoy a meal that you prepare. This is personal, this is revealing, this is significant. Cook for me is significant.

I have had the pleasure to work with some extraordinary chefs, not always ones with names that roll off the tip of your tongue, but extraordinary all the same. I have shared incredible meals with many exceptional individuals, and I have had the opportunity to experience the work of chefs who take their role seriously and restaurateurs who live to make guests feel at home when they walk through that bistro door. Menus are a fascinating window into the character and skill of a chef, but what is most exciting to me is when I simply say to the server: “Ask the chef if he or she would just cook for me.” Make that dish on the menu that is most inspiring to the kitchen, the dish that resonates to them in the moment, the one that he or she is most proud of – or simply cook whatever you want even if it is not on the menu. I want to connect with the cook, to provide the cook with that opportunity to tell a story and open up a dialogue on the plate. This is exciting for me.

At one point as a chef, I actually put an option on the menu called: Cook for Me. Take a chance and put the entire experience in the hands of the cook and the chef. Give them a chance to be who they are through food. At times it was a diversion from the pace of meeting the demands of a full board of orders, and at other times it caused additional stress – but in all cases, cooks and chefs take the opportunity seriously. Cook for me is significant.

Anthony Bourdain hit the nail on the head when he proclaimed that cooking is a way of telling your story and revealing who you are. What a privilege it is to be a cook, a chef, or a restaurateur. What an opportunity cooking provides to tell your story and share yourself with others. That plate of food is your story, it is a painting that reflects so much about the person that you are.

PLAN BETTER – TRAIN HARDER
Cooking for others is a privilege

Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

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FUTURE PERFECT – A RESTAURANTS NEXT CHAPTER

11 Thursday Jun 2020

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OK, so here we are: restaurants are beginning to re-open (maybe prematurely, maybe not) and we are all scared to death. We are fearful of a virus that is still out there, still scoping us out, still waiting to strike again, and we are not prepared for that. We are fearful that 25% or 50% capacity in our restaurants will not allow us to survive – so, what’s the point? We are fearful that customers will not return and customers are fearful of what is waiting for them as they venture out with loads of trepidation. And we are fearful that everything will be different and we don’t yet know how to define “different”.

Yep, I get it – we are all in the same boat – fear of the unknown. The natural inclination is to play it safe, to try and bring everything back to where it was pre-pandemic. This is our comfort zone, this is what we know, this is the space that everyone can jump back into and not lose a beat. Let’s bring back the same menu, let’s try and make service like it was, let’s keep the same pricing model, let’s set-up our kitchens as we did just a few months ago with the same staff and the same skill set. Wouldn’t it make sense to not rock the boat any more – to get into our rhythm and put on a familiar face – this is, after all what out customers expect and want – right?

It’s interesting how last month everyone was proclaiming that everything will be different when restaurants open again, that what we knew will not suffice in the near future. So what did we do to prepare for wholesale change over the past three months? Did we invest in ideation sessions, did we look to other industries that were forced to change in recent years, did we seek advice from knowledgeable experts in our and others industries, did we take a hard look at fixing some of the issues that have plagued us for decades? I am not positive, but I have yet to see any real future thinking and strategic planning in this regard outside of how to social distance, how to incorporate more take-out options, and discovering what new sanitation procedures will be in place at least until a vaccine is developed. Where are the exciting future thinkers in the restaurant business – you know, the disruptors, the ones that force us to scratch our heads, the ones who piss us off, and make us wag our fingers saying: “You can’t do that.”

Painted in Waterlogue

Why can’t we just return to “normal”? Well, for one thing – normal really wasn’t that great for restaurants – was it? Rents were getting out of whack, ingredient costs kept inching up, finding employees was increasingly difficult, many skilled workers were underpaid and under appreciated, profits were too low if present at all, failure rates were very high, and banks – well they just don’t want to invest in a very fragile restaurant business. So – why do we want to return to that – especially with the addition of new protocols brought on by the pandemic?

John F. Kennedy wrote:
“For time and the world do not stand still.  Change is the law of life.  And those who look only to the past or the present are certain to miss the future.”

Think about that for a minute: “Change is the law of life.” In other words, whether we like it or not change is inevitable and it will occur with us, or without us. To fail to change at a time when the door has been opened for the possibility is a lost opportunity that may never come your way again.

Since the early days of restaurants we have acknowledged and embraced a way of doing business that, for all intents and purposes, has not really changed at all. If we allow ourselves to slip right back into the same model then we must accept the fact that all of the problems that I listed will not only remain, but will intensify. Where are the future thinkers who want to seize the opportunity to re-imagine, to re-invent, and to disrupt what we have accepted as “the right way” for generations?

Where are the Steve Jobs, Elon Musks, Bill Gates, Dan Barbers, Helen Turleys, and Peter Senge prophets who would turn the restaurant business upside down and find a new way of doing business – a way that is innovative while maintaining all of the feel good parts of our business – the hospitality, the gathering, the beautiful food, and celebratory environments that bring people to restaurants for nourishment, entertainment, and cheer? Let’s just pretend that this was just a bump in the road, a moment in time that we can quickly forget and move back into the groves of the highway that we left for a short period of time. Does this make sense to you?

Lincoln gave us clear words of advice:

“You cannot escape the responsibility of tomorrow by evading it today.”

As I walk down the street and see lights begin to shine in those restaurant dining rooms that were vacant for three months, as I watch the dust being removed from table tops and masked employees begin their sanitation routines, as I see cautious vendor drivers and hesitant cooks don their masks and take those first steps into restaurant kitchens, I am just perplexed. What are they stepping back into? Hell – what compelling reasons will bring guests back into those restaurants to dine? Is it convenience, the need to just get out and live again, or an opportunity to re-ignite a love of food and service? Will those guests venture out into the unknown just to find what they had experienced before? Will the benefits outweigh the risk? Really folks – have we thought this through?

Painted in Waterlogue

As Lincoln alluded to: we have a responsibility to tomorrow – this is basic and important. Avoidance will never allow us to move forward as an industry and come out the other end – stronger, better, and happier. This is a time for future thinking, this is only scary if we fail to see the excitement of positive change.

 Buckminster Fuller was a visionary, future thinker, designer, educator and inventor (developed the geodesic dome as an example) who outlined the exact situation we are in right now:

“We are called to be architects of the future, not its victims.”

If we (the restaurant industry) fail to embrace the opportunities that the future can bring, then we are likely to be left behind. If not you, then someone will; if not now, then when; if you ask why, try asking why not.

Ask yourself some foundational questions as a starting point:

  • How can we better serve the needs of our customers?
  • How can we build a more conducive work environment for our employees?
  • How can we build a new level of excitement for dining out?
  • How can we build new, compelling experiences that will bring customers back time and again?
  • How can we make restaurants more profitable while allowing them to be cost accessible to a broader population?
  • How can we build a restaurant industry that is friendlier to the environment?
  • How can we enhance our relationships with the source of ingredients and improve the integrity of our food supply?

These and other questions can and likely should be prods to stimulate our train of thought, to excite us about the possibilities, and to engage a spectrum of stakeholders to play a role in making the next generation of restaurant experiences a reality NOW. It can start with you – NOW IS THE TIME!

We know that there are dreamers and there are doers and it is rare to find individuals who possess both abilities. This is why we put teams of people together. Visionaries/futurists are essential individuals who make us “think different” (as Steve Jobs asked us to do) and attack the problems of today to help find the right solutions. Let’s not fall back into our comfort zone – we can’t afford to do that. Build your team, ask the questions, encourage dialogue, and put aside pre-conceived ideas about how it “should be” – think more in terms of how it “could be”.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

Embrace the opportunity to make it better

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OUR DAILY BREATH: OPENING RESTAURANTS – WHERE’S THE PLAN, STAN?

26 Tuesday May 2020

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Let’s assume, for a moment, that we actually are all in this together. Let’s put on our restaurant hat and take responsibility for doing what is right for both the health and wellbeing of our families, staff, and customers, and help in bring our communities out of the deepest economic hole since the Great Depression. Both of these issues are significantly important and even though we should all agree that health and safety is foremost – if we manage to beat the virus into submission and destroy the economy in the process then we are left with a problem that can be devastating for decades to follow. OK – so that doesn’t help much unless we have a plan, a plan that everyone buys into, and a plan that shows hope on both fronts.

So the question is – where is the leadership in building such a plan? The CDC has provided recommendations for re-opening businesses (restaurants), and some states have qualified these recommendations by instituting phases for opening once certain statistical criteria is met, but much of what happens within those phases is up to individual restaurants to interpret and devise methods of delivery. Where is the real leadership from professional organizations and from the communities where those restaurants reside? Where is the collaboration among community restaurants to portray a consistent message and a self-assessment process?

Think about the following:

[]         RESTAURANTS CAN REOPEN WITH 25% CAPACITY: Great – we all know that it is impossible for any restaurant to survive with 25% capacity. Where are the organization experts with thoughts on how this parameter might be approached?

[]         RESTAURANTS THAT OPEN MUST PRACTICE PHYSICAL DISTANCING: Sounds reasonable – how can that truly be accomplished with the ebb and flow of customers, servers approaching tables, taking orders and delivering food?

[]         THE VIRUS CAN LIVE ON SURFACES FOR A PERIOD OF TIME SO ENHANCED SANITATION MUST BE PRACTICED: OK, we get it – what does that mean and how does it apply to plates, glassware, flatware, tablecloths, salt and pepper shakers, chairs, booths, walls, table tops, etc.? How can we really stay on top of this challenge? Who will provide consistent guidance in this regard?

[]         THERE IS NO EVIDENCE THAT THE VIRUS CAN BE TRANSMITTED THROUGH FOOD: Well, that seems reassuring, but tell me how is it that the virus can live on non-food surfaces for many hours, but will avoid clinging to that salad, glass of beer, or tonight’s special?

[]         ALL STAFF AND CUSTOMERS SHOULD WEAR MASKS: Totally agree, and we can certainly require our staff to do so, but with the wild west attitude among a few customers that this is an infringement on their rights as American’s – what is our legal support to demand this and what is the best way to manage unreasonable guests?

[]         WE ARE ENCOURAGED TO SANITIZE OUR PERSONAL GROCERIES FROM THE STORE BEFORE THEY ARE BROUGHT INTO HOMES: Fine, if you are like me – it takes an hour to shop every two weeks and two hours to sanitize everything before I move items to storage in the house. Shouldn’t we be doing the same in restaurant kitchens? If so, what it the plan for vendors and restaurants to work together in this regard?

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[]         AT A CERTAIN POINT (before there is a vaccine) CUSTOMERS WILL BE ALLOWED TO RETURN TO RESTAURANT DINING ROOMS: Terrific! When that occurs we will be able to go back to business as usual – right? Oh, but what if customers don’t want to return to dining rooms? What if they (rightfully so) are still nervous about being in public groups while the virus is still flourishing? How do we rebuild trust – not just in returning to our restaurant, but even more importantly – to restaurants as a whole? Where is the leadership coaching on that?

[]         WE ARE ALL IN THIS TOGETHER: Yep – I have heard that many times before – so why does it feel like we are on our own? Why are there mixed messages from state to state and community to community?   Why are we given guidelines yet no one seems intent are really enforcing them? Why is each restaurant struggling with how to manage the need for safety vs. the need to generate revenue? Why is there no universal strategy that helps restaurants collectively walk through the process of re-opening with confidence and uniformity? If we are all in this together, why are we so far apart?

Re-opening restaurants when there is no resolution to this invisible threat is risky business. It scares restaurant owners to death – as it should.   The last thing in the world that anyone wants is to create a pool of infection that threatens the very customers who have helped a restaurant through tough times before. The answer cannot be: “Every man for himself”. The answer must be collective agreement on the best way to move forward for the safety of all involved and the financial health of the business. We know that the only tools that we have right now are physical distancing, wearing masks, and washing hands and surfaces extremely well – but is that enough to build trust in a return to business?

We should applaud the states that have exacting criteria for reopening businesses in phases and methods in place to assure that the criteria is met, but it is not enough – at least not for restaurants. We (the restaurant industry) need local governments to bring restaurant owners together to build a model that everyone buys into, a model that is reasonable, safe, and verifiable. We need industry organizations like the National Restaurant Association and American Culinary Federation to go beyond printing a list of recommendations and rather become actively involved in communities by walking them through the process of collaboration, ideation, and implementation. Most importantly, we need community restaurant owners, operators, and chefs to come together to build active lines of communication, serious platforms for implementation assistance, and an active commitment to doing the right thing – every restaurant, every chef, every day. If we are in this together than we need to build a strategy for that to be realized.

PLAN BETTER – TRAIN HARDER

We SHOULD be in this together – the only way to address the challenges

Restaurant Consulting

Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

OUR DAILY BREATH: A PHASED IN APPROACH TOWARD RESURRECTING RESTAURANTS

30 Thursday Apr 2020

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A cautious approach towards opening is the most prudent rule as we begin to see signs of a virus that might be controlled in the future. There are few certainties at this time except an understanding that this is not over. As some states begin to entertain loosening restrictions and easing out of “stay at home” directives – restaurants will consider their options. Do we open in such uncertain times and potentially endanger our employees and guests? How can we not open with so much financial pressure and the looming threat of permanent closure? Whichever side of the question you find yourself on – there is no denying that the constraints will be significant, customers will be very leery about entering a restaurant, and initial sales will never be enough to keep a restaurant solvent.

Rather than let things unfold without adequate thinking, I offer some ideas on a phased in strategy based on objectives designed as building blocks towards eventual success and that sense of normalcy that we are all hopeful for.

[]         PHASE ONE:

(Cautious opening, social distancing, intense sanitation, masks, screening)

We realize that opening in the next few months will require social distancing of at least 6-feet, use of masks, significant improvements in on-going sanitation, and maybe temperature screening of employees and customers. I would suggest that during this opening phase restaurants should focus on the following:

Comfort:        This is a time to help people put aside their fear and rely on familiarity with food that is well prepared, flavorful, nutritious, and fresh. This is not a time to experiment with changing food perceptions and pushing the envelope with cuisine. Keep it simple, keep it familiar, and do it very well.

Convenience:            Many of you have implemented take out and delivery options during the height of this pandemic – customers have responded well to the convenience of this option and will likely remain most comfortable with this option rather than dining in. Make the process better, work on making sure that the food is hot when it should be, work on how food looks and whether it matches the image that you want for your restaurant – make convenience a positive experience.

Trust: Customers, rightfully so, are very cautious and concerned about your ability to keep them safe. Whatever you do during this early transitional opening phase – make sure you invest the effort in building trust. Have a plan and promote your plan from focused signage, greeters that put people at ease (maybe even check temperatures), well defined distancing in the dining room, all employees wearing masks, required customer masking, and visible sanitation efforts. Any employee that shows sign of sickness will be required to stay home until they can show that they are symptom free. This is absolutely essential if you want your customers to return.

Value: During this phase – value will be based almost entirely on price and whether the guest feels that they are able to justify the expenditure. This can happen through menu design, working with minimal labor, and staying away from any frills of dining.

Efficiency:     It’s simple – restaurants are in financial trouble, many may not be able to reopen after months without sales. The only way that they may be able to stay in operation is to become very efficient in how they buy, prepare, and serve food and beverage. Smaller menus, fewer employees, less steps in production, reasonable portions, and little emphasis on those parts of a restaurant experience that are not tangible. Think about the no-frills environment of Chipotle – a program built on efficiency.

Cash Flow:    Restaurants should not view profit as a goal during Phase One. Making sure that sales are coming in faster than payments are going out should be the realistic objective. Working on creating an acceptable level of volume, minimizing labor, keeping menus small, and investing considerable time in managing the restaurants bank account are all critical initiatives at this point in time.

[]         PHASE TWO:

(Access to treatment, vigilant business model, intense sanitation, social           distancing)

Even though Phase Two may be many months away, this is the time to plan for an effective transition. Caution will still rule the day, but with effective treatments for the virus available – restrictions will begin to evaporate. Restaurants must be ready.

            Service:          Providing treatment(s) are available to those who contract the virus, familiar table service will likely return. This means that service staff will be able to interact with guests, social distancing will be a thing of the past, and masks will no longer be required even though people will still be cautious. Any employee that shows even the slightest sign of a cold will be cautioned to stay home so that environmental fear does not take control of an operation.

Convenience:            Convenience will remain an option that is enticing to customers. There will be indications that take out, counter service, and delivery may become a permanent part of the restaurant experience.

Concept:        It will now be time to look at your concept and how you want to be perceived moving forward. Whether it is built from an ethnic focus, farmer relationships, and style of cooking or level of service – what you do now will set the stage for your restaurants future. Make sure that your concept ideas are well researched and try to involve input from your ambassador customers who have supported you throughout.      

Expanded Menus:    Those simple menus may be able to expand at this point as you bring additional employees on board and enjoy greater numbers of guests. Still keep efficiency in mind.

Trust: Stay true to everything that you have done thus far to earn customer trust. You want to reach a point where those who patronize your operation don’t need to think about your commitment to their safety.

Value:             The value formula will change in Phase Two. Aside from price sensitivity – guests will also consider the level of service, flexibility, speed of service, presentation of food, breadth of menu, and how the operation appeals to all of the human senses. We will have to work much harder at winning the value prize.

Breakeven:    Once restaurants are able to openly accept as many customers as they want – it will be important to stay focused and efficient. Profit will still be elusive, but solid management of expenses can result in breakeven. Stop the bleeding will be an essential part of financial management. Restaurateurs are on the right path as long as they manage to keep their heads above water.

[]         PHASE THREE:

(A vaccine is available to all, intense sanitation, loosening of social        distancing, virus is contained)

This is likely a year to 18-months away, yet your business strategy must include thinking long-term – even beyond this point.

Experience:   As a vaccine becomes universally available and communities are able to breathe with confidence – restaurant customers will be looking for more than food and baseline service. We entered this pandemic as part of the experience economy where restaurants were considered entertainment as well as a source of food. This will be the time that chefs live for, servers are able to perform for exceptional gratuities, and owners are able to see their operations be all that they can be. Operations will need to have a strategy for that experience and what it will take to be competitive again in that environment.

Concept:        There will, once again, be room for restaurant concepts that push the envelope, that excite and inspire, and for creative people to test the waters with ideas that have been waiting for a market.

Mass Customization:          This will also be a time for restaurants to totally re-think what they do and how they do it. As other industries have moved towards the flexibility of mass customization (have it your way), so too will restaurants need to think in those terms.

Convenience:            Time will tell, but once you offer convenience to guests and they develop a level of familiarity with that convenience it will be difficult to take it away. Think about the “experience” of take out and delivery and see how you can own that market.

Membership:            The ultimate goal of every business is to create guest ambassadors who would never think about patronizing anyone else. This sense of membership comes from service, communication, and experiences that cannot be found elsewhere. This will be a focus in Phase Three.

Efficiency:     Be prepared – restaurants have been very inefficient for decades. We are labor intensive creating a cost burden that makes profit difficult to imagine. As we move towards Phase Three – restaurants will need to constantly look for ways to maintain quality while reducing process and cost. This will be the new essential skill for chefs seeking to captain the ship.

Value: Value will be based on the experience, whether your concept is a counter service – quick operation, or a sit down multi-course operation – there must be some level of experience involved for value to exist. “Is it worth it” will be the essential question.

Profitability: Finally, when dining rooms are full, kitchens are operating efficiently, and value experiences are being offered – restaurants can return to profitability. You must dot all the “i’s” and cross the “t’s” for this to occur.

Build a Nest Egg:      Know that at some point in the future there will be another crisis that impacts our lives and businesses. Phase Three should provide a wake-up call that helps restaurateurs to start building a next egg that will allow them to weather the next storm.

Food for thought.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

 

 

 

 

 

OUR DAILY BREATH: HOW WILL WE RE-CREATE THE CULTURE OF DINING OUT?

09 Thursday Apr 2020

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There are few things in life that vividly define the culture associated with a group of people more than dining out. Food is connected to nearly every aspect of life, family, and the art of living. A culture is a collection of life essentials including art, drama, literature, religion, music, food preparation and traditions, history, language, politics, etc. and as such – collectively define all levels of civility.   Food, as part of this formula, also interacts with each of those other components of culture – so it might be said that it is a common denominator.

As one of the oldest professions known to mankind – cooking is a noble endeavor that serves as a portal for all that a culture means and restaurants are the vehicle for delivering this to and sharing culture with people of all ethnicities, race, genders, and beliefs. Since the days of early merchant travelers during Medieval and Renaissance days – restaurants have been integral to societal development and the sophistication of people. As Julia Child once stated (and I paraphrase): “Every great transition of the human race has paralleled a remarkable change in the way that we grow, harvest, process, prepare, serve, and consume food.” The restaurant table is the canvas on which every person involved in that process has an opportunity to paint and tell a story.

When we close a restaurant we lose that canvas, when we shutter all of those restaurants we lose a significant piece of humanity. Yes, we will move through this challenging time and there will be a restaurant business on the other end of Covid-19, but how can we re-create that canvas that will allow society to tell the story of a culture?

Think about the important aspects of our lives that have relied on restaurants as a vehicle for people to get together. We celebrate our sporting teams wins and losses over food and drink – without the restaurant there is less opportunity for this to define our tribes of support. We celebrate the union of two people through marriage over a plate of food and as such raise our glasses in love and support of their commitment. We bring intellectual conversation to a larger audience while we break bread around a common table. We discuss and sometimes resolve our political differences with fork and knife in hand. We laugh and revel in our friendships after a hard week’s work by clinking glasses in that neighborhood restaurant that serves and pampers us. We look that life partner in the eyes over a well-prepared plate of food, get on one knee in front of an audience and propose that two lives become one. We even rely on that restaurant to pass along bad news in hope that the environment will temper the emotions that accompany that message. Restaurants are absolutely essential to our way of life and the way that we communicate our feelings and emotions. Life without this common table would certainly be a bit empty.

Will the culture associated with dining out automatically return or will we need to re-learn what it means to break bread in public, raise a glass, and celebrate being alive? What must a restaurant, or the larger restaurant community do to ensure that it, once again, becomes a central part of life?

If we simply view the role of restaurants as a manufacturer of food for consumption, then we will miss the point and lose the café, bistro, trattoria, or diner’s true role in society. It is the experience of dining that is most important and it is this experience that allows a restaurant, or for that matter – the restaurant industry to flourish. As we prepare for the return to a “new normal” we must keep the larger role of restaurants in mind. Here are some thoughts:

FOOD IS THE UNIVERSAL LANGUAGE

[]         NO ONE INDEPENDENT RESTAURANT CAN SOLVE THIS CHALLENGE:

For the culture of restaurants to return – every operation must collaborate with others in their community to build an atmosphere of common purpose. Individual restaurants succeed when all restaurants succeed. When neighboring restaurants understand their importance to the restoration of a positive cultural climate – then the atmosphere of hope and celebration becomes apparent. All for one and one for all should be the standard of operation.

[]         KNOW THE MESSAGE – TELL THE STORY

The restaurant that knows the story behind the business and the community and tells that story in a heartfelt manner is the restaurant that will build relationships around the table. Customers may walk through the door initially because of the food, but will return time and again because of the story that the owners and staff tell.

[]         THINK GLOBAL – ACT LOCAL

We are truly in this together. Every restaurant must think in terms of how do we help the entire industry rise again.   At the same time it is how the operation expresses this goal in their local community that will ensure a steady flow of supporters. Become active in helping the industry rebuild itself, change where necessary, and polish its rough edges while at the same time do everything possible to collaborate with local vendors, organizations, farmers, and complementary businesses to show how essential the restaurant is to the culture of a town or neighborhood.

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[]         IT’S ALL ABOUT SERVICE – IT’S ALL ABOUT FOOD

When restaurants return they must understand that service and food are equal in importance to the guest. Great food without great service is shallow just as great service without great food is never a winning combination. Defining what each means is unique to every operation.

[]         PEOPLE FIRST – RELATIONSHIPS FIRST

When all is said and done it is the people who work in a restaurant that paint the picture of success on that canvas and it is the relationships that are built between those staffers and guests that make all the difference between a successful restaurant and one that is simply biding time.

[]         TREAT EVERYONE THE SAME AND EVERYONE DIFFERENTLY

One of the more challenging aspects of running any business, and particularly restaurants is that every customer walking through that door is unique and expects to be treated as such. We obviously need to have standards of operation, but if we are not prepared to adapt frequently to the needs of each guest then we may never reach a consistent level of success.

[]         REMEMBER THE TDE

Finally, it is essential that every quality restaurant (regardless of the style, type of food, or price point) should learn that the restaurant “experience” is one that appeals to all of the human senses. Great restaurants appeal to the sense of smell by accentuating those positive aromas of the kitchen, the sense of sight through well appointed, clean and attractive restaurants and plate presentations, appropriate and complementary sounds whether they be the sounds of the kitchen or music that complements the experience, knowing that the physical sense of touch applies to the comfort of the chair, the weight of the flatware and glassware as it matches the type of food and price point, and the right textures of quality food on the plate, and finally the sense of taste – food must be consistently prepared in such a manner that causes the guest to pause and truly savor every bite. This is the Total Dining Experience (TDE).

The way to bring back the restaurant industry is to bring back its importance to the culture of a community and society. We can and must play our role in making sure that this is at the heart of our decision making process.

PLAN BETTER – TRAIN HARDER

Remember the TDE

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

OUR DAILY BREATH: WHAT RESTAURANTS MEAN TO SOCIETY

06 Monday Apr 2020

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Cooking for others is one of the oldest professions known to humanity. Since fire was first discovered – we have enjoyed and developed the skills to cook, eventually season, and finally plate prepared food to please other people. Cooking is one of the most admired and appreciated skill that allows the cook to express his or her history, traditions, ethnicity, and skill while engaging guests in a story. This storytelling through cooking evolved over centuries into restaurants that offered interesting tales to strangers and friends alike.

Dating back to Medieval times when cooking was reserved for nobility and later during the Renaissance when merchant travelers relied on local taverns for respite and a chance to break bread – restaurants and restaurant life has always been present. In the United States – the importance of restaurants only became mainstream after prohibition ended and speakeasy’s transitioned into full-service restaurants, and later after World War II when our country decided to invest heavily in an interstate system of highways that opened the country to an exponential growth of small towns where intersections gave life to gas stations and diners. Today, restaurants serve a multitude of purposes that has brought this industry to a status of importance that is impossible to deny.

Although our current crisis has brought the restaurant industry to a halt, it is important to remember just how integrated the business of selling and serving food is to society as a whole. It is this understanding that will bring the industry back. It will undoubtedly be different, but it will return. Here are a few examples of why this is true:

[]         CONVENIENCE

Once we return to a more robust economic time – the need for restaurants to service dual income family life and urban professionals with little time to shop and cook will once again be evident. These cycles of industry demise followed by a surge of regrowth have happened time and again after difficult times – it will happen after this one. Convenience – especially in highly developed societies is essential.

[]         A REWARD SYSTEM

It’s is human nature to seek reward or at least some form of recognition for work done and an individual’s value to others. Far too often this does not exist in the workplace, or sometimes even in the home – restaurants fill this void through the reward of a sincere smile, special service, preparation of tasty and beautiful food, a pleasant atmosphere and appointed table, and in many cases recognition of return guests. This is a very important part of the restaurant business – hospitality.

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“Having been in the restaurant business, our job is to be responsible for our customers’ happiness. It’s the nature of the hospitality industry. You need to take care of people. You take care of customers above all else. Customers are your lifeblood.”

-Andrew Zimmern

 []         SOCIAL ISOLATION OF A NATURALLY SOCIAL POPULATION

There are some who enjoy being alone, but most humans are inherently social by design. We relish the company of others – the chance to discuss, remember, toast, seek advice, lean on others shoulders, and laugh over life’s joys and quirky mistakes. This social isolation that we are engaged in will leave a tremendous void in people’s lives. It is easy to see that given the opportunity – people will return to their social nature with ease. Restaurants will be there to provide the environment for socialization.

[]         A PRIMARY OUTLET FOR SHARING TRADITIONS

Pride in one’s heritage is most easily expressed through the traditions of food. The use of indigenous ingredients, the protection of recipes passed down through generations, the combinations of food and how they marry with a restaurants atmosphere are built on protection of those traditions. Whether you are aligned with the ethnicity of a restaurant or simply interested in learning more about that ethnic groups traditions – restaurants are perfect vehicles for protecting and promoting a unique history.

[]         A FORUM FOR DISCUSSION, DIALOGUE, AND OPINION

During some of the early days of restaurants and coffee shops in Europe – cafes were the place where individuals would gather to discuss the issues of the day, argue points of view, and build opinions and belief structures that were at the heart of a community. Restaurants and bars have continued in this role ever since. What we believe, how we evolve, and finding a place to share ideas is at the core of a healthy society. Restaurants open their doors to this important role.

[]         I WISH I COULD COOK LIKE THAT

If a restaurant fails to set the stage for the question: “How does the chef bring out those incredible flavors in this dish?” then it has lost its ability to be special – to be necessary. So many restaurant operators are good at this – they create some part of the experience that is so special that guests must make a reservation. When the chef and the restaurateur are in sync, then a restaurant becomes essential.

“When we eat something at a restaurant, however simple it may look, there’s something in it that makes you think: ‘Well, I couldn’t quite do this from home.”

-Alex Guarmaschelli

[]         INFRASTRUCTURE DEMANDS

In densely populated urban settings (Paris, New York, San Francisco, Florence, Rome, Madrid, Chicago, Miami, London, Tokyo, Hong Kong, and hundreds of other cities around the world) – space is the most valuable commodity. Housing in these areas, out of necessity, is tight leaving far less room for the joys of cooking at home – especially in groups. Restaurants have become physically necessary to support the lifestyle of cities and will once again be needed to fill this role.

[]         A FORUM FOR EXPRESSION

When we look at who owns restaurants and why – we find a desire to reach a level of financial success, but also a deep seeded need for chefs and restaurateurs to express himself or herself as either a culinary artist or social host. This desire will quickly regain traction once we move past this crisis.

[]         TRAVEL WILL RETURN – TRAVEL DEMANDS RESTAURANTS

We have accepted life in a global economy and although we will likely learn some lessons as a result of this world crisis, a return to global business is inevitable. People will need to travel for business and everyone will eventually gravitate back to a desire to explore. When travel returns, so too will a real need for restaurants that can service the physical need, but also create an exciting and unique benefit of travel to other parts of the country and world.

Impatience and concern is most certainly making those who made their living in restaurants reconsider their future involvement in this business. This is natural and will likely take a toll on the number of restaurants that return to operation and individuals who seek to continue working in a business that has truly exposed its fragility. On the other hand, when we consider what restaurants mean to various cultures and communities around the world – there should be little doubt that food businesses will once again thrive. For those who love the excitement, creativity, adrenaline, unpredictability, and importance of restaurant work – there will always be a future.

PLAN BETTER – TRAIN HARDER

Restaurants are essential to a full life

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

OUR DAILY BREATH: CHEFS ROUTINES – HOW IMPORTANT ARE THEY

04 Saturday Apr 2020

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We never really understand how much we depend on our routines until we are forced to break them. People are creatures of habit and it is those habits that give us comfort, provide us with direction, and help us to function as we are programmed to function. Are routines beneficial? Is there value in breaking those routines? The answer lies in how we respond to involuntary change.

Structure is important to a chef as it aligns with our obsession over mise en place (organization) and how it defines the operation of a successful kitchen. This structure is established over time and is dependent on how an individual was trained and the level of organization that surrounded him or her during this training phase. Once conditioned – a chef has a very difficult time breaking out of a routine. We typically wake at a certain time, follow unconscious steps (coffee, shower, catch up on news, maybe exercise, dress, and off to work) and plan on walking through those kitchen doors at precisely the same time every day. Once there – a secondary routine kicks in with a walk thru of the kitchen, grab another coffee, review daily food events, walk thru coolers and storerooms, touch base with prep and breakfast cooks, and then set-up that list of tasks for the day. Rarely do we break from this pattern, and when we must our day is always a step behind. Routines are important down to how we sharpen our knives, set-up a workstation, fold our side towels, and prioritize our work.   So, it is safe to say that our routines define us to a large degree.

Suddenly, our routines no longer apply and the current crisis has left chefs without that comfort zone that help their approach towards the daily chaos. We are now left with a looming question: “Are routines useful in time of crisis and if not – what is the alternative?” Your restaurant may be closed or maybe it has shifted to take-out and delivery only. In either case business as usual is a thing of the past. Your staff is down to a skeleton crew, or maybe you are left holding the fort alone. The future of your operation and for the matter the future of restaurants overall is in question and your routine, your safe place, your dependable organization has not caught up to this dramatic change. Where do you begin, what direction should you take, what possible objectives can be put in place to move from uncertainty to a driving mission?

One of the realities of a routine is that it can be limiting – leaving individuals without a way to zig and zag and change direction with any level of enthusiasm and energy. Chefs are not unlike any other professional in this regard – athletes, carpenters, musicians, bankers, doctors, nurses, shop owners, and military personnel all function most effectively when they can depend on their routines. They may be able to transition over time to a new routine, but when it changes overnight they can easily find themselves lost and directionless. You may be able to physically prepare for crisis, but mentally and emotionally find yourself like a ship without a rudder.

Routines can, in this manner, paralyze even the best managers and operators. At a time of crisis what you cannot depend on is comfort. Dramatic crisis is un-nerving and damn scary. How leaders act at these times defines how effective they are at their jobs. Everyone else in an organization will seek to lean on leaders when crisis strikes – this is when they are most needed. Others expect that leaders will be ready, willing, and able to carry the torch and set the pace for change that is required. If a leader is so wrapped up in the need for routine that he or she fails to respond quickly and efficiently to an immediate need then the entire organization suffers. This is where we are today.

We have had nearly a month to feel lost and confused over broken routines and expected outcomes. The situation is apparently not going to self-correct and real leadership is still floundering. It is time to start being leaders on the micro scale – “What can you do as an individual owner, operator, or chef?” Our routines will not re-appear for quite some time – if ever, so what’s next?

When Napster began offering music for free in a manner that addressed a changing market some record companies chose to fight this illegal activity and ignore the changing market, while others saw an opportunity to flip the industry in a different direction. When the Netflix model of mailing DVD’s to its subscribers was faltering some change advocates decided to expand their model by creating their own content and focusing strictly on on-line digital subscriptions. When retail industries maintained the comfort of storefronts that required customers to travel to them – amazon recognized that the convenience of on-line shopping was going to upset the routine of shopping – the rest is history and now all other retailers are struggling to catch up. This is the restaurant industry’s amazon moment. Routines will not win this battle to survive – only unencumbered freethinking and immediate action will help us to survive and once again thrive.

Over the past few days I have presented the need for IDEATION and SCENARIO PLANNING – this is not a choice – the restaurant business does not have a choice. THIS IS AN OPPORTUNITY FOR LEADERSHIP to inspire others to rise to the occasion and embrace an opportunity for re-invention.

Forget the comfort of routines – we need to take action now. Far too much time is being dedicated to survival without enough discussion about next steps. Yes, we need to help restaurants and displaced restaurant employees who are in need today, but that alone will not leave us in a position to return and be viable businesses in six months or a year from now. We need leadership action, leadership creative thinking, dramatic re-invention, and a vision for the restaurant business after Covid-19.

PLAN BETTER – TRAIN HARDER

Now is the time for future thinking

Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

 

OUR DAILY BREATH: CHEFS AND RESTAURATEURS – DON’T WASTE THIS TIME

01 Wednesday Apr 2020

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LBC

Desperation has sunk in for those of us in the restaurant business. We know that closure is a reality for at least 30 more days and likely longer than that. The only adjustment that can be made is the heartbreaking decision to furlough employees or consider permanent closure of operations. Some try and paint a brighter picture by projecting that as soon as the quarantine is lifted – people will return in droves to their previous lifestyle and fill those empty restaurant seats. We must recognize that this scenario is not that likely. Everyone is beginning to get use to social distancing and understand just how serious this virus is. It is likely that people will continue to be cautious and ease into any semblance of past normalcy. A return to business as usual is not realistic and we should plan accordingly.

After three weeks of our current state of uncertainty it is time to take a deep breath and do what Americans have done in the past: develop a plan moving forward. Our first job is certainly to protect ourselves and our families, to stop the spread of the virus in every way within our individual power, but time wasted now will come back to bite us in the near future. Whenever we are able to return to business it is imperative that we are ready to face new challenges head on. To fail to recognize that EVERYTHING WILL BE DIFFERENT is a formula for real failure.

This is a time to THINK DIFFERENTLY about every aspect of our business. Let’s put aside the projections by those important figures in the food business that talk about the demise of the restaurant industry and begin with a few very important facts:

  1. THE RESTAURANT BUSINESS IS IMPORTANT TO OUR CULTURE

Dining in restaurants is a vehicle for communication, a respite for those who are looking for solace, a place of celebration, an environment for reward, and a source of entertainment that would be impossible to replace.

  1. THE RESTAURANT BUSINESS IS ESSENTIAL TO OUR ECONOMY

Nearly 14 million Americans work in restaurants and even more found a restaurant as their first job leading to numerous careers in their lives. As the second largest employer of people, businesses that pay taxes, and central focal points for urban growth – restaurants are a foundation of free enterprise.

  1. THE RESTAURANT BUSINESS IS HISTORICALLY ONE OF THE FIRST TO RECOVER

Worldwide – when countries, cities, and communities transition out of difficult times it is the restaurant and hotel industry that leads the way back to prosperity. People want and need to gather, to tell stories, to renew friendships, and to take care of business. We can expect that this will be the case in America and elsewhere when Covid-19 becomes a part of history.

  1. THE RESTAURANT BUSINESS IS ESSENTIAL TO THE AMERICAN LIFESTYLE

As we return to some level of prosperity, once people are back at work and businesses turn in the right direction – it will be restaurants that allow families to manage their busy lifestyle.

We also must remember that the challenges that we faced before this outbreak will still be present during recovery – in fact those challenges will be even more significant.

  1. RESTAURANTS DO NOT PROVIDE QUALITY OF LIFE FOR ITS EMPLOYEES

Let’s figure this one out! Just a few months ago – the restaurant industry’s major issue was a lack of competent staff, a faltering retention rate, and millions of employees who felt under-appreciated and poorly compensated. This problem will continue – how will we address it?

  1. RESTAURANTS ARE NOT AS PROFITABLE AS THEY SHOULD BE TO ENCOURAGE ENTREPRENEURSHIP

Restaurants will fail, likely at a rate not seen in our lifetime. How will entrepreneurs be encouraged to take the leap and open an operation when profit (at best) hovers around 5-6%? We must rebuild with a model of operation that allows the entrepreneur to earn a respectable profit and move beyond week-to-week survival. When there are no reserves, when restaurants are so cash strapped and void of savings that a few weeks of closure is the kiss of death – then it is apparent that change is required.

  1. THE FAILURE RATE OF RESTAURANTS IS MUCH HIGHER THAN OTHER BUSINESSES

Various percentages float around – some as high as 2/3 failure rate in the first year and more than 50% of those remaining failing in the first five years – this is a huge issue. Banks will never view loans as a good investment with this level of failure and smart entrepreneurs will shy away until it appears that the rewards are worth the blood, sweat, and tears. Now is the time to figure this out!

  1. CUSTOMER NEEDS AND DESIRES ARE CHANGING AND WE MAY NOT BE READY TO CHANGE WITH THEM

How will we (you) stay in touch with customer needs so that concepts, menus, locations, methods of delivery, and pricing strategies align? Restaurants need measurement, assessment, and most of all – analytic data to help make correct decisions in this regard. Let’s work that into our recovery models.

NOW is the time to address these challenges head on – to research, brainstorm, develop new concepts, reinvent, and plan, plan, plan. Let’s view this break from operations as a positive opportunity to make the needed changes that have been looming for more than two decades.

ESSENTIAL READING FOR ENTREPRENEURS DURING THE LOCKDOWN:

Selling the Invisible, by: Harry Beckwith

https://www.amazon.com/Selling-Invisible-Field-Modern-Marketing/dp/B001C1MT6O/ref=sr_1_2?crid=2BR62X2Z1HY0Z&dchild=1&keywords=selling+the+invisible+by+harry+beckwith&qid=1585748953&s=books&sprefix=Selling+the+Invisible%2Caps%2C167&sr=1-2

Setting the Table, by: Danny Meyer

https://www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763/ref=sr_1_2?dchild=1&keywords=setting+the+table+danny+meyer&qid=1585749025&s=books&sr=1-2

The Underground Culinary Tour, by: Damian Mogavero

https://www.amazon.com/Underground-Culinary-Tour-Restaurants-Transforming/dp/1101903309/ref=sr_1_2?dchild=1&keywords=The+Underground+Culinary+Tour&qid=1585749069&s=books&sr=1-2

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Now is the time!

www.harvestamericacues.com BLOG

OUR DAILY BREATH: CHEFS AND RESTAURATEURS – IT’S A NEW DAY TOMORROW

30 Monday Mar 2020

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The restaurant industry has been plagued with problems for decades – this international crisis has brought everything to a head. How many times have restaurateurs and chefs proclaimed that they couldn’t simply stop their current model and re-invent themselves? The challenges of today would always put a halt to significant movement towards long-term problem solving. Well, we now have the time.

Labor issues have been at the top of the list for decades: low pay, no benefits, unpredictable schedules, 12-hour shifts, and difficulty finding and retaining good employees when these issues persist. Low profitability, vendor challenges, rising cost of goods,    cumbersome regulations, high rents, expensive marketing, and ebbs and flows of business volume have collectively made this enticing business to enter – nearly impossible to maintain. “We can’t just stop what we are doing and find solutions to these problems – I am most concerned about getting through today.”

If there is a silver lining to the monumental problem that we are facing now, it might be time to think, assess, trouble-shoot, and plan for a brighter tomorrow. It appears that the federal stimulus bill may help small restaurants stay afloat for the next few months, but it will not solve the long-term issues that restaurants have sat on since the beginning of our growth spurt in the 1970’s. Now is the time, we have the time, and we have the ability to re-invent, to prepare for a bright tomorrow.

This virus has demonstrated just how important restaurants are to people of all ages and socio-economic backgrounds. It has also demonstrated just how fragile that need is. We must learn from this and plan accordingly. We know that the need to network with friends and neighbors is essential to all who live in communities throughout the world. Restaurants’ are a magnet for people to connect, discuss, smile, laugh, and enjoy each other’s company. Food is the universal language, a language that everyone speaks and enjoys using. We know that busy lifestyles demand that restaurants fill a physical need to eat when cooking at home is oftentimes too hard to arrange. We know that the restaurant industry is essential to the economic health of countries throughout the world – engaging more people than nearly every other employer outside of government. And, we know that restaurants provide millions of people with the opportunity to become entrepreneurs – a dream that exists in so many of us. Without restaurants – society just seems incomplete.

So..what should be part of our thinking right now? What can we do to prepare for a brighter future in the restaurant business? What can we do NOW to set the stage for future success? Here are some thoughts:

[]         LABOR:

We (restaurants) cannot continue to expect to find and retain competent, dedicated, passionate employees as long as our current labor model is accepted and used. A livable wage is something that talented, hard-working people deserve. Basic benefits of reasonable healthcare, paid vacation, and paid sick time are the standard in nearly every other industry and must become the standard in ours. More reasonable hours (realizing that peaks in business require extra effort) should be a goal. This does not infer that all restaurant work should be necessarily based on a 40-hour workweek, or that 8-hour shifts should always apply, but it should still be a model that we are moving closer to. Two days off per week (with some exceptions) is reasonable and helps employees find some balance in their lives. These are not excessive goals – this is a standard that we have ignored for far too long. To fail to do this will simply perpetuate the labor challenges that plagued us before the virus.

[]         CONCEPT DEVELOPMENT:

In order to address the labor issue above, we may very well need to reconsider our restaurant concept. What restaurant platform will continue to exceed customer expectations, build pride among employees, and establish a reputation for the restaurant that drives financial success, and will provide a reasonable living for our staff members?

[]         EFFECTIVE MENUS:

As the concept evolves there will be exciting opportunities for chefs to reimagine menus that work, menus that require fewer, well-compensated employees who still bring the talent and passion to the kitchen everyday. Let’s start from scratch and build a menu with these critical factors in mind.   Forget the established models that have been at the core of our existence since the days of Escoffier and look at what works in the 21st century.

[]         BRICK AND MORTAR:

The cost of building, renovating, and maintaining a brick and mortar restaurant are excessive and oftentimes stand in the way of profitability. We are learning that people are interested in delivery, enamored by food truck style concepts, and willing to embrace a different style of service. What can we do to minimize the on-going investment in brick and mortar?

[]         RENTS:

Restaurants and landlords need to have serious discussions about rent and its impact on business survival. If the cost of rent exceeds 6% of sales then it is very difficult for the average restaurant to make a go of it. For the landlord – a successful restaurant is a magnet for growth in a community, a magnet that provides many future opportunities for revenue and financial success beyond that restaurant space. Maybe the restaurant is a means to an end for the landlord rather than an individual driver of revenue.

[]         SUPPLY CHAIN:

A marriage of local, regional, and large corporate vendors is a healthy model for restaurant success. Putting all of your eggs in one basket by limiting your purchasing to one vendor is never a good model to use. Building strong “trust” relationships with vendors should be a goal for both parties. Aligning with vendors who are able to work with the restaurant in creating a financially viable operation also works for all involved. Let’s work on this.

[]         SUSTAINABILITY:

This may be a perfect time for conversations between kitchens, vendors, and packagers to find better solutions to waste management, managing ingredient seasonality, protecting supplies of over-used ingredients, and helping the planet survive.

[]         PROFITABILITY:

If a restaurant can only look forward to 5-6% net profit then the business will always face financial challenges. The best restaurants not only prepare and serve great food, they are not only operations that treat their employees fairly – they are businesses that are financially solvent. We need to take the time to define a concept, a menu, and a system that will allow for a more reasonable and manageable profit picture.

[]         CONNECTING WITH THE MARKET:

This is the time to build a greater understanding of the new marketing environment for businesses. Those traditional methods of old either no longer work, or they are priced out of reach for the average small business. Learning how to leverage social media and word-of-mouth is critical for long-term success. Being able to collect analytical data that demonstrates, what, how, and why certain methods of marketing work will become even more important to the small business. Take the time to investigate ways that data collection can help you manage your marketing strategy moving forward.

Yes, we are fearful of what is before us, and of course there is real uncertainty of how to deal with todays challenges. Let’s put aside the fear and relish the opportunity of time to work on what tomorrow can bring.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

 

 

 

 

 

ARE RESTAURANTS FACING EVOLUTION OR REVOLUTION?

25 Tuesday Feb 2020

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Is it just another one of those cycles with a few new challenges or is it something else? It seems to me, once you start to connect the dots, you will note that the times they are a changing, and the alarm bell is about to ring. I certainly don’t want to be reactionary, in fact, what I hope to be is something more in line with being an advocate for change before change happens without us.

I don’t have the answers – they need to come from a consortium of restaurant professionals representing operations, organizations, education, ownership, and customers. I can, however, sound the preliminary alarm by demonstrating and connecting those dots, so that the picture becomes clear and telling. Here are some of the indicators:

  • The rise in support for PLANT FORWARD styles of cooking that demonstrates a healthier approach towards diet is apparent. Plant forward includes vegetarian, vegan, and a commitment to increasing fresh fruits, vegetables, beans, nuts and seeds, and decreasing the amount of animal protein. To fail to recognize this and adapt menus to accommodate EXCITING versions of the above is a serious mistake.

 

  • Increased popularity of non-alcoholic cocktails is either an opportunity for restaurants or a real roadblock to continued success.

 

  • WINE SALES are decreasing worldwide. While a short-term blow to the wine industry and restaurants that are wine centric there are opportunities to build in craft beers and hard cider as well as increase a less contrived approach towards consumer wine education. Pretention is fading in popularity. Don’t forget that the restaurant industry has supported itself on the back of alcoholic beverage sales – this has been our model for decades. Do we need to re-evaluate?

 

  • We have predicted the demise of fine dining at least a dozen times in the past 25 years – is it really happening now? Americans are spending nearly 50% of their annual food budgets in restaurants and indications that this can continue to grow – is fine dining the right answer? If 3% or less of the restaurant industry is fine dining and this is the segment that receives the most attention – what about the other 97%?

 

  • Is BIGGER ALWAYS BETTER? Who benefits from over-sized and super sized portions? Obesity is an epidemic in the U.S., so, larger than necessary portions is harmful to consumer’s health. Large portions stretch a restaurant’s ability to convert sales into profit, and large portions do very little to demonstrate any level of finesse that a chef might try to muster up. Is it time to stop using massive portion sizes to falsely demonstrate value? Is it time to move past the 18 oz. strip steak, the triple-decker burger with bacon and cheese, and the tomahawk pork chop that makes the diner feel like he or she owes the world an apology after forcing that last bite?

 

  • When did it somehow become dangerous or negligent to drink real milk, consume that delicious cheese, or spread a little butter on your toast? Well, whether it is for health concerns or a new philosophical resistance to consuming anything that originates from an animal – this is the new reality. What are you doing to modify menus, reduce portions of dairy, and/or educate consumers about moderation?

 

  • The conscience of modern chefs has been leaning toward farm to table for more than two decades. Artisan farmers have gravitated to small rural communities and transitioned to decentralized, sometimes specialized, organic farming to help to feed this growing interest and define their concern over the quality of ingredients and their impact on sustainability. This is great, however, those small farmers are finding it increasingly difficult to generate enough sales to offset the significant costs associated with farming. Can they survive? How do we stay true to the concept of farm to table and help these artisans make a living?

 

  • Young cooks are less inclined to sacrifice balance in their lives for the demands of the kitchen. Fluid schedules, holidays, 12-hour shifts, and all of the physical and mental demands of the job are no longer part of a life that they choose. These employees may resist initially, but then simply choose to find another line of work. This, above all else, paints a grim picture for restaurants of today and tomorrow, unless we find a solution and accept the need to change.

 

  • Once an exciting career that young people and those reinventing themselves were clamoring towards – becoming a cook and eventually a chef has lost it’s sizzle. The reality of the work and the commitment has finally over-shadowed the glamor that is falsely depicted on television. Enrollment in culinary schools has plummeted, and every restaurant from coast-to-coast is struggling to find new employees and keep the ones they have. Growth means very little if you can’t find the right people to execute the vision of a restaurant.

 

  • The government crackdown on immigration may seem right to some, but to those of us in the restaurant business it means that many of our most dependable, hard-working employees are gone. A reasonable resolution to the country’s immigration policies is critical and essential for the food business from farm to table.

 

  • With an increase in the number of food recalls, and serious questions about the source and the process of bringing food to market, there is a growing mistrust in the integrity of the food supply. This can only lead to a subsequent mistrust of restaurants and what they offer.

 

  • When a presidential candidate states that “Anyone can be a farmer, it takes a lot more grey matter to be in the tech business”, we know that the food supply chain is losing its importance in the eyes of the U.S. government. This will likely backfire at some point soon.

 

  • After all of these years of growth, the restaurant industry has yet to find resolution to the cause of many of its woes – restaurants return very little profit which cripples their ability to improve wages and work conditions, and do what is right vs. doing what they can afford to do.

 

  • The gentrification of neighborhoods, which seems to always begin with an influx of new, popular restaurants, eventually attracts new landlords who are greedy for profit. Increases in rent have driven restaurants out of business even when they are otherwise successful.

The list could go on and on – the bottom line is that as hard as the restaurant business has always been, it now seems to be leaning towards impossible. Necessity may be the mother of invention, but invention begins when people recognize the need and the opportunity for change. Isn’t it time for those of us in the restaurant business to recognize all of the signs and find a way to collaborate on real solutions?

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting

www.harvestamericacues.com BLOG

 

 

 

 

 

 

 

WHAT RESTAURANT OWNERS GET WRONG

30 Monday Dec 2019

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me at dinner

I have the privilege of working with many different restaurants and food businesses. Some are very successful, while others are hanging by a thread. Some are owned by individuals who have the knowledge and the wisdom of seasoned business people, while others struggle to find a path to survival. Some have their feet planted firmly on the ground with a system that is time tested and solid, while others tend to drift in and out of consciousness. In all cases they begin with the same goals: prepare and serve great products that are consistent and offered with a smile, build success on a steady flow of sales and controlled profitability, and do all of this with pride. So why does it sometimes go wrong?

The following provides some “food for thought”, maybe even a “look in the mirror” checklist for those who are drifting away from those initial goals.

[]         THINKING THEY CAN MANAGE THROUGH OTHERS

Of course, the right approach is always to hire, train, and build up your employees until they can take on more responsibility and reach some level of fulfillment for themselves, but, when an owner of a small restaurant operation begins to think that he or she can operate at the same level and reach those somewhat baseline goals without being there, is when the business begins to show signs of wear and tear.

[]         LOSING SIGHT OF DEPENDABLE HOURS OF OPERATION

One of the most important goals of any restaurant is dependability and consistency. Even the most loyal guest will start to drift away if they can’t depend on the service, the product, or the hours of operation. Before you close and shift hours of operation think completely about the potential domino effect.

[]         NOT INVESTING IN COMPETENT EMPLOYEES

Even when the owner is present – he or she must depend on the consistent interactions between customers and the restaurant’s employees. Those employees must know their job, know the product, and have a welcoming personality that helps to create loyalty. Every restaurant must constantly invest in training.

[]         PUTTING ALL OF YOUR EGGS IN THE CHEFS BASKET

I am proud to be a chef and always will be, but a common mistake that restaurateurs make is to turn over the concept and the reputation of their business to that great chef that was just hired. Unless that chef is a partner there is a high probability that he or she will leave at some point and take the restaurants positive reputation along for the ride. Make sure that owners retain ample ownership of the concept, standardize as much as possible, and constantly train a strong bench of people who can step up to the plate if the chef departs.

[]         FAILING TO ASK THE CUSTOMER

We should never underestimate the importance of customer perceptions, expectations, and new ideas. Engage them and they will become your ambassadors. Ignore them and they will find someone else to pay attention.

[]         CONFUSING LEADERSHIP AND MANAGEMENT

You might and should train your staff to move into stronger management roles – this will keep them interested in remaining a part of your organization, but they should never take the place of your vision and inspiration as a leader. You can delegate management responsibilities, but it is rare to find a successful owner who delegates leadership.

[]         NOT SAVING FOR A RAINY DAY

When business is strong the tendency is to spend, to raise wages, remodel, buy that new piece of equipment, or add staff. The problem is that at some point business will soften, the economy may go south, inflation will settle in and impact on the customers ability to spend, or unforeseen repairs will come out of nowhere. The best restaurants keep tightening their belt until there are ample contingency funds that serve as a cushion for hard times. Far too often restaurants are swallowed up because they are cash flow poor.

[]         PAYING TOO MUCH FOR RENT

Use this simple rule: the cost of rent for your restaurant should not exceed 6% of your annual projected sales. When rent is too high then something will suffer: raising prices to the consumer driving them away, cutting necessary staff, lowering the quality of ingredients or cutting portion sizes, minimizing your contribution to marketing, or ignoring those equipment repairs that will eventually haunt you.

[]         NOT PAYING ATTENTION TO THE EXPERIENCE

As a full-time leader who is always present in the operation – your two primary goals are to set and enforce standards of excellence, and invest time in ensuring that the guest experience is comprehensive (product quality, ambience, service, value).

[]         GIVING THINGS AWAY

Restaurants always seem to be the first target for charities and fundraisers. Too many assume that restaurants are flush with profit when just the opposite is true. Restaurateurs are notoriously generous, sometimes to a fault. Don’t get caught in the trap of giving away the store. Budget cautiously for donations and stick to the budget. It is OK to say: “I’m sorry but we have already donated all that we can for this year – please feel free to contact us earlier next year.”

[]         NOT FOLLOWING THE UNIFORM SYSTEM OF RESTAURANT ACCOUNTING

Restaurateurs and chefs are not always the best bookkeepers. If you can’t find the funds for a full-time bookkeeper, then align with a CPA who can handle your deposits, taxes, payroll, accounts payable, and analytical data such as a P and L, balance sheet, income statement, and cash flow report. Many, many small restaurants fall victim to failure to pay sales tax, Department of Labor audits on payroll, or overdrawn accounts due to poor money management.

[]         NOT PAYING ATTENTION TO THE COMPETITION

No restaurant is an island. Every operation that serves prepared food is your competition. If customers are grabbing a pre-made sandwich at Starbucks, they are not making a reservation at your place. Watch what your competition is doing, analyze it, use their operation as part of a benchmark study, try their product and service and use it to see where you can improve, etc. Owners need to know exactly what is going on around them.

[]         BECOMING TOO COMFORTABLE WITH THE STATUS QUO

“It has worked for years, why would I ever change?” If this sounds familiar, just look around you at any other industry or type of business to find a clue as to why change is inevitable. How many storefront retail shops suddenly close their door because they ignored the convenience of on-line shopping? How many taxi companies turned their nose up to Uber until it was a company that had changed this industry forever? How many hotels never gave AirBnB a second thought, until it was too late? You get the picture.

[]         FAILURE TO COMMUNICATION USING TODAY’S MEDIUMS

Communication still ranks the biggest problem within organizations regardless of their size. Communication with customers and with employees is an essential part of leadership and management. You MUST become savvy at using social media, effective websites, YouTube, email blasts, and public forums to get everyone apprised of your intentions, challenges, and opportunities.

PLAN BETTER – TRAIN HARDER

Becoming Successful is the FIRST STEP – Staying Successful is HARD WORK.

Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

RESTAURANT OWNERS – WHAT ARE THEY THINKING?

17 Sunday Nov 2019

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The more I travel, experience communities, and try their restaurants – the more I scratch my head and ask the question: “What are they thinking?” The restaurant business is one that is relatively simple in concept, yet enormously complicated to execute. Develop a product that people are willing to buy, prepare it consistently well, make sure hot food is hot and cold food is cold, serve it quickly and with a smile, and provide value for the money spent. Simple right? It would be if customers were not fickle, if vendors were always dependable, if raw materials were always consistent, if competent staff was easy to find and retain, if your equipment never broke down, if the weather always cooperated, and if the economy would stay consistently strong. Unfortunately, all of those factors seem to work against you.

With all of that uncertainty – why do restaurateurs make it all the more difficult by coming up with hair brained ideas without enough research, and without demonstrated feasibility, and why do they lose sight of the details?

Moving into an expensive rent district to sell a single – value product that you happen to like is asking for failure. That cupcake, cookie, soup, salad, or bagel palace will never pay the rent, attract enough volume, or inspire a staff that you are trying to retain. The Lebanese restaurant across from the Alamo in San Antonio, Texas may be located in the midst of heavy foot traffic, but no matter how great the food is, the concept doesn’t fit the environment. When you open the sixth pizzeria in a two-block radius you will struggle to survive on the slice of business pie that you are left with. And when that “authentic” tacqueria opens with two 16-year old white Anglo Saxon high schoolers assembling the “Best Tacos in Town”, some customers will question the use of the word “authentic”. What are they thinking?

There are many reasons why there are a million freestanding restaurants in the U.S. and why a large portion of them file for bankruptcy within 1-5 years – they just don’t think it through. They don’t know what they are getting into and they certainly are not prepared for the reality of executing a restaurant concept.

Now, I must admit – I don’t own a restaurant, nor have I ever owned a restaurant. Even though I have spent five decades in the restaurant business, and even though I have thought about owning a restaurant many more times than I can count – I had either enough intelligence or far too much fear to actually take the leap. I know that as smart as I might be with preparing others to make the right decisions, I could easily fall into the trap of making those decisions for myself on emotion rather than street smarts.

So, what are the problems and what are the solutions?

PROBLEMS:

[]         WE LIKE WHAT WE LIKE, THUS EVERYONE ELSE WILL AGREE WITH US

Fortunately, or unfortunately to some – this is the service business. This means that those who choose to be restaurateurs need to design menus and concepts that address the needs and desires of potential customers, not simply stroke their own ego. The minute the restaurant becomes a vehicle for a chef’s self-expression is the minute that begins to stress the system and drive the train in the wrong direction. Sometimes it works, but more often than not this is the turning point towards failure. If you want the restaurant to be an expression of art, then make sure that your bank account is flush with cash.

[]         EMOTIONAL EXCITEMENT TAKES HOLD

The thought of owning your own, driving the train, making all the decisions, expressing yourself in a manner that was limited when working for someone else, and the thought of your name on the marque is foremost in your mind, is the thought that clouds your realistic business decisions. Step back and do your research – put aside the emotion until this is done.

[]         CHEFS ARE ALL ABOUT THE PRODUCT – OWNING A RESTAURANT IS BUSINESS

Chefs are technicians and artisans – they are rarely great business people. The most successful restaurants are ones where a partnership exists with both skill sets in place. Find a business partner willing to say “no”.

[]         NOT EVERYONE WILL SHARE YOUR PASSION

In the end, whatever your culinary passion – don’t assume that your staff or your customers will be as passionate about your concept. You will need to either draw them in and win disciples, or invest an incredible amount of time and money looking for the right players. The same is true with customers – if your concept depends on rabid loyalists, then you will need to have patience and a big marketing budget to find and keep them.

[]         COMPETITION IS A FACTOR – DON’T IGNORE IT

Every competitor, even the marginal ones, takes away from your business potential. Study them, watch them, respect them, and work like hell to demonstrate why you are better than them. The pie is only so big and the more competition, the smaller the slice.

[]         MARKETING ONLY WORKS WHEN THE PRODUCT OR SERVICE CONNECTS WITH YOUR TARGET

Don’t expect to turn customers around to your way of thinking and cooking. All the marketing dollars in the world will never convert a carnivore into vegetarian or vice versa. Make sure your product connects to the audience available.

[]         LOCATION, LOCATION, LOCATION – COSTS BIG BUCKS

Yes, without a doubt – Ellsworth Statler’s golden rule still applies – Location Rules! Keep in mind you can overcome this, but it takes time and money. On the other hand – great locations today demand very high rents. Do your research.

[]         IF YOU ARE NOT PREPARED TO CHANGE – THEN DON’T TAKE THE LEAP

Some may say that it is important to stand your ground and stay true to your concept – great – as long as you have the wherewithal and iron stomach to hold your ground. The most successful companies embrace the need to change and do so before it’s too late.

[]         AUTHENTICITY IS IMPORTANT

In the restaurant business it is critical to be true to form if, in fact, you are promoting an ethnic cuisine, style of cooking, or food philosophy. Research it, build a level of understanding, immerse yourself in a culture, hire people who feel it, and promote real authenticity. Don’t try to be farm to table unless you connect with farmers, believe in them, friend them, and work to help them. Don’t offer a Korean noodle shop unless you can spend time in Korea and learn about the culture, unless you are willing to hire Korean cooks and support them through a true understanding of ingredients, culture, and process. This is your investment in being true.

THE SOLUTIONS:

[]         THE FIRST AND MOST IMPORTANT ADVICE HERE IS TO NOT OPEN A             RESTAURANT

Sounds harsh – but IT IS A VERY, VERY, VERY difficult business with incredible demands placed on those involved, and a VERY high risk of failure. So, if you want to jump in – do so with open eyes and total commitment to making smart decisions.

[]         BUT IF YOU MUST:

If you feel the draw that cannot be controlled – then enter it with the right attitude and a willingness to listen and act.

[]         STUDY THE MARKET

Know the market for customers, know what they like, understand their lifestyle, research the characteristics of the demographic, talk with them, win them over, listen intently, and act accordingly.

[]         FIND REAL ESTATE YOU CAN AFFORD – DO THE MATH

Yep – sometimes you need to walk away. The rent or lease SHOULD NEVER EXCEED 6% of your anticipated yearly sales. If it stretches beyond that – walk away! Rent is funny – it doesn’t care that you had a slow month, it is oblivious to your equipment breakdowns, and need to raise the pay scale for employees – rent needs to be paid on time or the landlord will pull the plug.

[]         BE A PENNY PINCHER

Whatever the purchase- ask first: “Do we really need this now?” Look to see if you can buy something used, learn how to make basic repairs on your own. When it comes to menu – keep in mind that real talent is not in grilling a Kobe Steak – the real talent is braising a chicken leg that is exceptional in taste, and far less expensive to work with. Buy smaller garbage cans for the kitchen – control your waste and make it everyone’s job.

[]         KEEP IT SIMPLE – DO IT WELL

Plan smaller menus, build great flavors, be consistent, change frequently, and be unique within the constraints of what people are willing to buy, offer an acceptable range of prices, and keep your inventory down to a minimum.

[]         BE THERE

Sorry, if you want to own it – you need to be there – all of the time. Train your people well enough so that you could leave, but never assume that it will be the same without you. This is the price of admission.

[]         HAVE ENOUGH MONEY IN THE BANK

YOU WILL NOT MAKE A PROFIT IMMEDIATELY – in fact, it may take you 2-3 years before one dollar of real profit sits on the table. Have enough back up in the bank, or the resources for those funds, to support you through those initial years.

[]         BE FLEXIBLE

Study every day, change your plan of attack, don’t get depressed when it’s not working – be prepared to adjust. The best restaurateurs are able to audible on the line of scrimmage.

[]         KEEP IT INTERESTING

You want guests to come back frequently. You want them to bring their friends. You want them to trust you, but at the same time it is always important to throw in a well thought out surprise.

[]         INVEST IN THE EARLY ADOPTERS SO THAT YOU CAN GET TO THE EARLY     MAJORITY

The early adopters are more likely to try something new, but they only represent about 12% of the population. They will get bored in a relatively short period of time and drift to the next new thing, but if you manage them well, then they can be used to entice the majority players who will stick with you for the long run.

[]         PRICE IT RIGHT

The right price is not always the lowest price. Keep in mind that it is all about value. Is the price worth it? Whether it is food quality, service, ambience, or ways that you can customize a customers experience – make sure that they walk away feeling like it was money well spent.

[]         TRAIN, TRAIN, TRAIN

No need to say too much about training – YOU CAN’T SAY ENOUGH ABOUT TRAINING. Everything else falls into place when you invest here – everything else falls apart when you don’t.

[]         KEEP YOUR STAFF HAPPY

It was Richard Branson of Virgin Brands who said that happy employees make happy guests. Be a cheerleader, be a supporter, pay them fairly, and invest in training.

[]         IF IT DOESN’T WORK – CHANGE; IF THAT DOESN’T WORK – THEN HANG IT UP BEFORE IT’S TOO LATE

Know when to pull the plug. Most long-term success comes from plenty of failure. Chalk it up to experience, but don’t hang on until you and your bank account are totally drained.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

www.harvestamericacues.com BLOG

INVENTION, RE-INVENTION, A FRESH LOOK

24 Monday Jun 2019

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There are few examples of businesses that can continue to thrive without change. Not too long ago, the need for change was gradual – giving owners/operators a chance to assess, research, test through trial and error, and slowly take baby steps towards anything that resembled significant change. Today, change happens quickly, and those operators who fail to not only watch for the warning signs, but even more importantly – fail to do their homework and anticipate change before it is ever evident, find it very difficult to maintain and even survive.

Restaurants, hotels, resorts, culinary schools, and food manufacturers must make change preparedness a priority and become change advocates or lose market share, through a lack of reinvention readiness. This preparation is a way of life in an era when everything shifts so quickly. No business can afford to get too comfortable – the market will not allow it.

“People (or businesses) who cannot invent or reinvent themselves must be content with borrowed postures, secondhand ideas – fitting in instead of standing out.”

-Warren Bennis

Here are some re-invention preparation thoughts:

[]         KNOW WHO YOUR MARKET IS

Technology allows us, whether your business is food preparation and service, or food service education, to know more about a market and/or potential market, than ever before. The more you know, the more you are able to direct your attention where it counts the most. Knowing whether your market is determined by age, socio-economic factors, education levels, geography, profession, ethnicity or even gender will help with the qualification of product, service, and expected outcomes. Your marketing efforts should zero in on your intended market, but will only be effective if you truly understand what is needed or desired by that market group.

[]         PAY ATTENTION TO PERCEPTIONS

It is likely that your perceptions of your business will drive how you approach product and service. It is also likely that your perceptions and those of customers, potential customers, competitors, and the marketplace in general will differ. Understanding these differences and adjusting, accordingly, to how you operate – is an important element of business success.

“Perception is reality. If you are perceived to be something, you might as well be it because that’s the truth in people’s minds.”

-Steve Young

[]         LEARN TO BE FLEXIBLE

Change is inevitable. Failure to change when necessary will likely lead to business failure. Thus, flexibility becomes a critical element in a business operator’s bag of tricks.

[]         STUDY THE MARKETPLACE

The marketplace is impacted by so many different factors: national and local economics, demographic shifts, unemployment, education, politics, weather and seasonal shifts, transportation, competition, and consumer habits. It is important that operators, and chefs, pay attention to what is going on in their immediate universe and adapt to changes that do, or might impact the marketplace. If it were only just about preparing food, life would be so much easier.

chef

[]         LOOK FOR WARNING SIGNS

Action vs. reaction: if a business is in reactive mode then they are constantly using crisis management techniques that almost always result in challenges with their market base, their staff, their reputation, and the expectations that people have of the business. When operators are tuned into what is taking place in the market then the warning signs can trigger action and preparation before problems arise. National dips in employment, drifting customer counts, lower check averages, difficulty in finding students or employees to fill a program, changes in the housing market, and dramatic shifts in the stock market and consumer confidence will ultimately trickle down to restaurant profitability. The best operators pay attention to the signs and take proactive measures to stay ahead of the challenge.

[]         DON’T GET STUCK ON THE WRONG SIDE OF THE BELL CURVE

The product lifecycle bell-curve points to the stages that products or services typically go through from inception, through steady growth, peak performance, and then decline. The most successful businesses are introducing the next product, service, or re-invention while the current product or service is hot. So during the growth phase – the next iteration is building interest. If you wait until the start of decline then you are always playing catch up baseball. This inevitably leads to poor decision-making out of crisis mode.

[]         BECOME A CHANGE AGENT

Lead, follow, or get out of the way. Change will happen with or without you, so it only makes sense to prepare for it, embrace it, and push forward with enthusiasm.

“If you don’t like change, you will like irrelevance even less.”

-General Eric Shinseki

[]         THINK BIG

Gone are the days when an occasional tweaking of what you offer is enough to keep your business vibrant. Effective businesses are not only looking at how they might fit in the marketplace, but rather how they can take the lead. Discover what is needed to forge ahead and take action.

[]         PLAN THOROUGHLY AND TAKE EDUCATED RISKS

Risk taking is a positive process if it is well thought out and there appears to be a greater chance of success than failure.

[]         KNOW WHAT YOU DON’T KNOW

You may think you have it all figured out – the right formula, the right product or service, and the right people to make it work, but unless you are willing to accept that there is much more to learn, and unless you are willing to invest the time and effort in building your base of knowledge, then your success may be short-lived.

Painted in Waterlogue

[]         TALK IS CHEAP – ACTION IS WHAT COUNTS

Ideas without action are very shallow.

[]         USE YOUR NETWORK OF INFLUENCE

Solicit, accept, and act on the feedback that you solicit from those stakeholders who are willing and able to offer their observations and recommendations.

[]         KEEP YOUR RIGHT FOOT ON THE GAS AND YOUR LEFT ON THE BRAKE

Readiness is always enhanced with a touch of “eyes wide open” caution. Move forward but always stay alert for hungry sharks around the corner.

[]         LEARN FROM OTHER’S MISTAKES

Be observant of others and take lots of notes. Stay tuned to environmental factors that are impacting operators (even outside of the food business) and pay attention to how they react. Take advantage of their learning curve.

“Learn from the mistakes of others. You can’t live long enough to make them all yourself.”

-Eleanor Roosevelt

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

www.harvestamericaventures.com

www.harvestamericacues.com   BLOG

Restaurant Consulting

ON THE THRESHOLD OF A DREAM – A CHEF’S LAMENT

09 Friday Jun 2017

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(So You Want to Own a Restaurant – PART II)

Deep in every chef’s heart is/was a desire to open and own a restaurant. I think that I can say this unequivocally even though many chefs may choose to deny it. Why is it so? The data is pretty clear – the odds of failure are far greater than the odds of success – yet chefs continue to yearn for the chance to have their name on the front door. Some may even scoff at the data and claim that they have the formula for success that has eluded so many others. There are others who feel the pull, but lack the courage or craziness to take the leap, and still others who simply acknowledge the desire but are disciplined enough to say “no thanks”. Still – there are those moments when every chef thinks “Is this my chance?”

There are plenty of stories of those who do well, who make their mark and may even create a level of excitement that makes everyone turn their hearts in acknowledgement. Of course this is the case because no one wants to emphasize the ones who crash and burn taking egos, pride, big-eyed young cooks, and bank accounts with them – there are many. My intent is not to dash peoples’ dreams – in fact, this article is really about those dreams and how important and consuming they are.

This is partially my own lament about that dream that gnaws away whenever given the opportunity. It is a testament to those numerous occasions when sitting in a restaurant, walking through a community experiencing a resurgence, or simply reading about the next great thing and thinking – “Just think if I opened a restaurant in that community…” Here I sit at the traditional end of my professional career while still feeling that twinge of excitement about an idea for my own restaurant. How many times did my wife roll her eyes as we sat at a restaurant table while I searched every corner for ways that I would do things differently? Come on – I know you do the same thing if you are a chef.

Maybe it is being an American with that deeply imbedded feeling that entrepreneurship is in everyone’s grasp, maybe it is the fact that, like most chefs, I worked way too many hours over a career for someone else. Maybe it is the fact that every chef I know is an impatient creative person who must have an outlet for expression, an outlet that affords the opportunity to sign that work and know that it is theirs. In any case, the spirit, passion, aching desire, and sometime unfulfilled need scratches at your inner being now and again; those ideas that wake you up in the middle of the night needing a pen and paper to jot down the perfect concept.

In the late sixties the Moody Blues (for those younger than 45 – an exceptional band that redefined how rock music was made) released an album entitled: On the Threshold of a Dream. This monumental recording has remained with me since then as a reminder that those dreams are important, even if they may not result in anything tangible. So, here are my thoughts on why the dreams are important to a chef, how they might make sense and come to fruition, and even a few cautions as to why you might want to dream, but keep your emotions in check.

A SIGNIFICANT DOZEN:

[]         DREAMS ARE IMPORTANT

The human brain craves an opportunity to create, solve problems, seek the adrenaline that “think of the possibilities” brings, and accomplish goals. When we deny the brain this innate need we start to lose direction and look at our personal situation as a glass half empty. This is brain exercise that tends to energize the body, stimulate positive emotions, and trigger those endorphins that make us feel good. Dreaming about the ideas that we have and the opportunity to take those ideas to fruition is truly the breakfast of champions. Dreams are important.

[]         EMOTION IN BUSINESS CAN BE DANGEROUS

The first target of our dreams is emotion, excitement, and those all-consuming positive feelings that we crave. As great as it feels to have that “incredible idea” people must understand that emotions sometimes react much faster that analytic reasoning.

[]         THINK BEFORE YOU LEAP OVER THAT THRESHOLD

Those interested in following their dream of owning a restaurant should take a deep breath first. I am not saying that you should avoid taking the leap, but rather take the time to look at all of the challenges as well as the opportunities. Even if you dismiss the statistics concerning restaurant failure and the meager profit margins associated with the food business, you must at least consider one very simple and ultimately important assessment piece – the cost of your rent or lease should not exceed 6% of your expected yearly sales. If it appears that you cannot meet this threshold then walk away from that site and look for another. Rent or lease can make or break even the best restaurant idea.

[]         SOMETIMES YOUR GUT FEELINGS ARE RIGHT

Your gut feelings are typically based on your experience or that of others. Sometimes data isn’t enough to drive a proper decision. A good rule of thumb is “If it doesn’t feel right – walk away.” If your gut gives you a “thumbs up”, then step a little closer to the edge of that threshold.

“There is a certain mindset, prevalent in the business world, that cannot deal with or give weight to emotions and intuition. People in fear are afraid of intuition. They think it is witchcraft — and maybe it is, but a powerful and healthy kind of witchcraft that anyone can tap.”

-Liz Ryan – Forbes Magazine

www.forbes.com/sites/lizryan/2017/02/25/how-to-trust-your-intuition-and-listen-to-your-gut/#753be3df5918

[]         SOMETIMES YOUR GUT FEELINGS ARE WRONG

Still keep in mind that your gut feelings are based on emotions as well as experience. Listen to your gut, but it is always wise to support it with data whenever possible.

[]         SOMEONE ELSE’S CUISINE IS NOT YOUR OWN

Every chef has a driving need to put his or her signature on the cuisine of a restaurant. Sometimes this signature is a leap of faith that an owner other than the chef may not be willing to take. Good or bad, this reality chips away at a chef’s independence and innate creativity. The only antidote for this dilemma is becoming an entrepreneur.

[]         BEING A RESTAURATEUR IS MORE THAN MAKING GREAT FOOD

One of the great gaps in a typical chef’s resume is being able to turn on solid business sense when food creativity is his or her passion. As I have stated in previous articles – restaurants are businesses and unless a chef can build a financially successful business his or her dreams of culinary excellence will be quickly dashed. When that internal need to open a restaurant rises to the surface make sure that someone is involved who possesses the business acumen to support the dream.

[]         FAILURE IS NOT ALWAYS A BAD THING BUT STILL HARD TO SWALLOW

Those who do take the leap may be successful and sometimes it doesn’t work out. Business failure is only a true failure if the entrepreneur chooses not to learn from the experience. Losing your dream is a tough pill to swallow, but a chef should always keep in mind that many of the greatest successes came from previous failures. Just ask Thomas Edison who supposedly failed at around 1,000 attempts to make the light bulb before he finally made it work.

[]         SHOULDA, COULDA, DIDN’T

This is one of the most difficult things for a chef to accept. When all of the skills are in place, when the opportunity knocks, when the capital is there to bring a restaurant to fruition and he or she backed away from the opportunity. This decision will likely haunt the chef for years to come. The solution is – if all of the planets are aligned then take the leap.

[]         INTRAPRENEURSHIP IS A CLOSE SECOND TO ENTREPRENEURSHIP

There is another solution to the Threshold of a Dream – the solution is intrapreneurship. You know that a chef has grabbed the opportunity spoon when he or she refers to the place of work as “My kitchen”. Intrapreneurship is the feeling of owning without the legal assignment of assets, the opportunity to act like an entrepreneur with the support of the actual owner, and the connection between employees, owners, and customers that support your sweat equity as if it meant ownership. This is realization of the dream without the financial liability associated with legal ownership.

[]         NO REGRETS – JUST DREAMS – LIVING VICARIOUSLY THROUGH OTHERS

As I look back on my career I can’t even count the number of ideas that came from personal dreams of ownership. There was always that twinge of desire to take the leap knowing that if I really made the choice I could probably find the investors to support it. I never did take that leap and although I still have those dreams of ownership I know that my opportunity has passed. I don’t have regrets because I live those dreams now through the efforts of individuals that I helped to train and teach. I thrive on their success and whenever possible offer advice and assistance as they navigate the many challenges that parallel ownership.

[]         100 IDEAS AND ONE IS BRILLIANT

One statement continues to support my theory that dreams are important and should never be discouraged. A good friend spoke of her husband once by stating that “He has 100 ideas a year and one of them is brilliant”. Ideas can lead to even better ideas and if you throw enough darts at a target eventually one will hit the bulls eye. Dream on, pass through the threshold if everything fits the model of success and through careful thought try and avoid those that are destined to take you down the wrong road.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting and Training

http://www.harvestamericaventures.com

 

SO – YOU WANT TO OWN A RESTAURANT

26 Wednesday Apr 2017

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The life of a restaurateur: “Work all day in preparation to work all night.”

-Gabrielle Hamilton – Prune Restaurant

Every chefs dream is to own a restaurant – this is, after all, everything that a chef works for. Being in control, controlling the decisions, becoming one with the operation, being in charge of your own destiny, becoming the face, heart, and soul of the operation and knowing that any profits are yours to hold is the dream of any chef with an entrepreneurial spirit. I get this – in fact, I have had the same dream for decades, but fortunately I never took the leap. What is most confusing is when a person without the background of living the restaurant work experience for decades chooses to become an owner; “It ain’t easy” – as one in the business will likely tell you.

There are numerous motivations for making a decision to find the funds, the backers, and the loans to buy or lease a piece of real estate and convert it into a factory for food, a destination for diners, and a home to the owners whims and fancies – a signature if you will. The least likely reason to own a restaurant is the desire to make lots of money. Profit margins in restaurants are quite low in comparison to other businesses so owners must take the leap for other altruistic reasons. Here are some of the reasons to own a restaurant and a taste of the challenges that accompany a decision to jump in:

REASONS TO OWN A RESTAURANT:

  1. You love to cook (not just as a hobby) and have done so professionally for at least a decade.
  2. You have been working in restaurants all of your life, have paid your dues and now want to provide a home for others working their way up the restaurant operation career ladder.
  3. There is a need in your community for a meeting place where people can leave their troubles behind, break bread, clink glasses, toast to friendship, laugh out loud, and feel the rewards that a great restaurant can bring.
  4. An acquaintance that is familiar with your cooking at other restaurants and raves about your unique culinary touch wants to invest in you as a silent partner. You put in the sweat equity for a sizable share of the business; he or she covers the cost of building out the space and subsidizing initial year losses, and has no desire to tell you how to operate.
  5. You have a partner (not a good friend – almost always a bad decision) who has very strong business skills. You are a crazy good cook with lots of restaurant experience but don’t know Jack about running a business. The two of you form a perfect business marriage. He or she leaves the cooking to you and you leave the business to him or her. Funds for opening and covering the first couple years are not a problem, the location is perfect, and there is plenty of anxious front and back of the house workers in your area to fill every position in the operation.

THE CHALLENGES OF OWNING A RESTAURANT:

  1. THE HOURS ARE RELENTLESS

As Gabrielle Hamilton stated – “You work all day in preparation to work all night.” It will be a rare situation when the owner can take a day off, come in late, or leave early. Even if you can – you won’t want to. This is your baby and it thrives on your attention. Those who think that it will be easier to own the business than to simply manage it are in for a surprise.

  1. THE OPENING COSTS ARE SUBSTANTIAL

Even if you are taking over an existing operation there will be sizeable costs. If you are renovating or converting a space into a restaurant – the costs will be very substantial. Kitchen space can be as high as $400-$500 per square foot and the dining room – depending on décor and furniture can cost nearly as much. A turnaround cost of $500,000 to $1million is very likely. These funds do not include cost of start up inventory and enough financial backing to cover expenses during that first 6 month – 1-year period of growing pains.

  1. STAFFING IS ALWAYS A PROBLEM

Ten years ago, this was never an issue. Today – finding chefs, cooks, managers, and service staff is one of the more challenging pieces of the puzzle. Much of this issue is related to the restaurant industry’s inability to pay reasonable wages (a result of low profit margins), a lack of benefits, and the commitment of unpredictable time that an employee has to invest in a restaurant career.

  1. PROFIT MARGINS ARE WAY TOO LOW

Profit margins of 5-6% are only realized in restaurants that do most everything right. It is very easy to lose your grip on the narrow profit margins that restaurants provide. On rare occasions the bottom line can be larger, but in most cases it washes out at far less than 5%.

  1. VENDORS ARE NOT ALWAYS DEPENDABLE

If you find vendors who are always on time, always able to provide ingredients to your specifications, willing to listen to your challenges, able to help with solutions, and fair with terms of payment – then HANG ON TO THEM. In many cases your vendors will let you down – be prepared.

  1. CUSTOMERS ARE FICKLE

It would be nice to say that customers are predictable, that if you do a good job they will always knock on your door for a table, that their needs will be clearly stated and easily met, and that they will see the value in the food experience that you offer. As is the case with any retail business- customers are unpredictable, change their minds, and vary their patterns of support.

  1. FOOD IS PERISHABLE

Unlike other retail businesses – your supplies have a very short shelf life. In most cases the ingredients you buy will maintain their quality for 3-5 days. There is little margin of error in operating a business of this type. What you purchase must be sold or it becomes a liability.

  1. EVERY DAY IS DIFFERENT

Good analytical data may help to remove some of the mystery from operating a restaurant, but for the most part each day will bring surprises. Challenges with product, marketing, cost of goods, staffing, customer patterns, impacts of weather, and fluctuations in the economy will constantly challenge your ability to predict and manage the business.

  1. TOO MANY REQUESTS FOR DONATIONS

This may seem like a minor issue, but from my experience – every charity, school, or community organization thinks that restaurants have buckets of money and product to donate for a worthy cause. Unfortunately we (restaurant folks) have big hearts and oftentimes say “yes” when we should say “no”. The best advice is to budget a reasonable amount each year for donations, have a thorough application process for funding or donating, and stick to it.

  1. IT IS NEARLY IMPOSSIBLE TO LEAVE THE RESTAURANT

At least until you are firmly established (maybe 5 years in) or unless you choose to close the operation each year for a few weeks, you will not want to leave the operation. Vacations are not real for most owners. “What will happen if I am not here?” Anxiety will ruin a well-planned vacation for most restaurateurs.

  1. GUESS WHO HAS TO SIGN ALL OF THE CHECKS

A good friend of mine who owned a business for a period of years told me that this was his biggest wake-up call, the thing that kept him up at night for many years: every week he had to look at his account balances and personally sign checks for vendors, landlords, and employees. Fearful that one-day there would not be enough funds stuck terror into his life.

  1. YOUR LANDLORD OR BANK DOESN’T CARE THAT YOU HAD A FEW SLOW MONTHS

Restaurants have ebbs and tides in business volume. Many operations are seasonal in nature, but even those that are not will find that every week produces swings in volume. It would be reasonable to assume that when business is slow your landlord or bank would cut you some slack and let you falter a bit with timely payments. This is NOT the case. The pressure of FIXED costs will eventually be the demise of many restaurants.

After all is said and done, those who are successful restaurateurs are able to make a profit, small though it may be, that is able to keep them afloat while stoking the joy of entrepreneurship, making people happy, and breathing life into their innate creativity. This is the carrot that many seek, but some can never grasp. If you can balance your passion for food with the business savvy to operate efficiently and make good decisions then take the leap.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

Restaurant Consulting and Training

www.harvestamericaventures.com

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DOES THE CHEF HAVE RESTAURANT EYES?

06 Saturday Feb 2016

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Painted in Waterlogue

At some point we tend to stop seeing those things right in front of us, those things that can lead to success or failure. More often than not, those things may seem insignificant, but they add up. “Sweat the details” has merit. Those people who live the details, who see the potential long-term impact of relatively small issues are the ones who lay the groundwork for success.

“Great things are done by a series of small things brought together.”

Vincent Van Gogh

Restaurants are fragile organizations that are made of thousands of minute pieces that when brought together can create extraordinary experiences. The restaurateur and chef who understand that this accumulation of small details is what creates something worth experiencing time and again provide the environment for perfection. I reference this ability as “restaurant eyes.” The skill to see all of the parts and how they work together is not unique to just the restaurant business, you could apply this same ability to any successful business endeavor. People who focus on the details may not always be at peace with themselves, but they are the engines that drive a business toward the goal of acceptance and loyal support by those who benefit from that attention.

Detail people can drive us nuts at times, but when you are around them long enough their obsession for focus on everything becomes your own method of operation. Once you have become engrossed in the details you will see the flaws in any operation that fails to recognize their importance.

Think about the companies that “sweat the details”: Walt Disney built a company of obsessive detail people who are coached to the point where they can no longer accept an overlooked detail. The next time you are in a Disney Park, put on your detail helmet and look for areas where they fall down. It will be challenging to find very much because detail is part of their culture. The Parks are impeccably clean, the flowers are always in bloom, and the attractions are maintained 24 hours a day, and the cast members are always in character. Mercedes, BMW, Cadillac, Rolls Royce, and other high-end auto manufacturers are always looking for that detail that might be out of place. There is a story about a car manufacturer (I can’t remember which one) where at a upper level management meeting the members around the table were watching a new TV ad for their cars: “Our cars are so quiet that at 60 miles per hour with the windows rolled up all that you can hear is the ticking of the clock”. After viewing the ad the president of the company said: “What are we going to do about that clock?” Details, details, details.

It is this constant focus on making things better that allows a business to succeed and continue to succeed. The Japanese refer to this as Kaizen:

“Japanese for ” constant improvement.” When used in the business sense and applied to the workplace, kaizen refers to activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers.”

Wikipedia

The best businesses, in this case – restaurants, sweat the details. It has been said that Charlie Trotter insisted on every detail in his restaurant. Servers dusted the backs of paintings on the wall, bartenders had to arrange all back bar liquor by type and alphabetically with all labels facing the same direction. Plates of food were arranged is if they were paintings to be framed and mounted and the kitchen during and at the end of a shift looked as if the equipment had just arrived from the manufacturer. Others followed his lead: Thomas Keller with his focus on finesse, Gray Kunz with his relentless insistence on perfection in cleaning, and Ferran Adria with a driven need to inspire every diner with the surprise that his one of a kind dishes brought. Walter Ganzi, Jr. and his COO – Jeff Phillips oversee the Palm Steak Houses from coast to coast with the uncanny skill of restaurant eyes. Every manager and chef knows that however good they are at their job, when Wally or Jeff walk in the restaurant they are going to see details that have escaped those who experience the operation every day.

So, what are the details that plagued so many restaurants and escape the focus of managers, chefs, and employees? Here is the start of a checklist for operators:

  • Does anyone walk your parking lot every day to ensure that it is free of litter, properly lit with well-appointed signage?
  • Are shrubs, trees, grass, flowers, and general grounds well maintained and fresh looking?
  • Who inspects restaurant windows to make sure that they are free of spots, dust, cobwebs, etc. (inside and out)?
  • How about transition lighting as people walk into your restaurant?
  • Are carpets and floors impeccably clean?
  • Take a look at your bar. Are bottles dusted and labels pointed towards the guest? Is there a smell of stale beer lines or sugars from mixed drinks that remain from a previous shift? Is woodwork polished and fresh looking? Are all lights clean and in working order?
  • Check your bathrooms! They should be spotless – not just at the beginning of a service, but throughout even your busiest night. Who is assigned to maintain the bathroom? If a guest finds the bathroom out of order, lacking in cleanliness, or not pleasant smelling they probably wonder how clean your kitchen is as well.
  • What about the quality of your music system? Whether it is background or foreground music, the quality of the sound system is either a complement or deterrent to the dining experience.
  • Do all cooks follow the exact procedure for cooking each dish on your menu?
  • Does someone check all plates before and during service to ensure that there are no chips, cracks, watermarks or smudges?
  • Are all food items in coolers labeled, dated, and rotated to help support your commitment to freshness?
  • Are coffee systems thoroughly cleaned at the end of every shift?
  • Is there a definitive way to assemble each menu item on your plates? Do you have reference pictures for your staff?
  • Does the chef inspect each cook’s uniform, grooming, and mise en place every day? Your staff (front and back) represents your restaurant image.
  • Do you follow the mantra: taste-season-taste with every item before it is delivered to a guest?
  • Are all of your dining room tables level?
  • Are all chairs in good repair?
  • Does your service staff polish glassware, and flatware before setting them on a tabletop?
  • Do you have the correct glassware for different types of wine, beer, and mixed drinks?
  • Do your servers measure the placement of flatware on tabletops?
  • Is your table butter served at the right temperature? Not too soft, not too cold and firm.
  • Do you warm coffee cups and espresso drink cups?
  • Do your servers know the menu inside and out and can they comfortably recommend complementary drinks and appetizers?
  • Do all of your staff members CARE about the guest experience?

The list could go on and on and some may choose to turn their heads away from these details claiming they are insignificant. I assure you – they are not insignificant. One of the keys to long-term success is sweating the details. If you don’t then rest assured, one or more of your competitors will.

Work on your restaurant eyes – the difference is in the details.

One of my favorite Charlie Trotter Quotes:
“I have always looked at it this way: if you strive like crazy for perfection – an all-out assault on total perfection – at the very least you will hit a high level of excellence, and then you might be able to sleep at night. To accomplish something truly significant, excellence has to become a life plan.”

Charlie Trotter

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

www.harvestamericaventures.com

RESTAURATEURS LINING UP TO FAIL

22 Friday Jan 2016

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Painted in Waterlogue

There may be conflicting figures about the success/failure rate of restaurants, but the fact remains that it is a fragile business and more operations fail than succeed. So, why is it that there is never a shortage of people lining up to “crack the code” and open their doors for the anticipated onslaught of happy customers? If I had the definitive answer then my services would certainly be in demand, but I do have some observations based on experience – observations that may not yield the definitive solution to restaurant success and failure, but ones that certainly contribute. Here goes…….

[]         WHAT TO DO:          Do Your Research!

Find out what the successful restaurants do in terms of product, service, management, marketing, etc. – learn from their experiences. Find out everything you can about a location (traffic patterns, why people use those roads, traffic generators in the area, development plans in the neighborhood, population, mean incomes, ethnic backgrounds) and catalog this information as a resource for planning your business.

WHAT TOO MANY NEW RESTAURATEURS DO:            I Don’t Need Research.

I have a great idea that I feel real good about and am confident that people will respond favorably. Research takes time and costs money – I need to get moving on this quickly.

[]        WHAT TO DO:          Have a Vision – Build a Concept!

Everything should follow from the building of a vision that the restaurateur is passionate about. A well researched concept that fits the area, stokes the fires of the operators passion, matches the belief structure of potential customers, and makes sense financially is the engine that drives the business.

“Unless you know where you are going, any road will take you there.”

Alice in Wonderland

            WHAT TOO MANY NEW RESTAURATEURS DO:            My intent is to serve tasty food that I like, in a dining room that suits my taste, and count the money as it flows in. After all, its just food – how hard can it be?

[]         WHAT TO DO:          Know the Competition.

If a customer is purchasing food in another restaurant then they are not partaking of yours. To this end, every restaurant is in your competitive set. It is imperative that you know everything that you can about them. Know what they do well, know their Achilles heal, know their customer volume, study their menus, know their price point, experience what they offer, and assess how well they address customer needs. This is a very important part of building a successful restaurant.

WHAT TOO MANY NEW RESTAURATEURS DO:            I am only in competition with myself. If I do things the way I think they should be done, then let the cards fall as they may. I don’t have time to figure out what everyone else is doing, I can barely get everything done as it is.

[]         WHAT TO DO:          Know Your Customer.

The edgy word for this today is profiling, but no matter what label you give it, knowing your customer works. Every single guest who walks through your door provides you with an opportunity to create a loyal ambassador. Learn their names, track what they like, always make exceptions when they are looking for something different, communicate with them, demonstrate that you are glad to see them walk through your door, make them feel special, and show that you appreciate their business. If you do this they will return. It is return business that drives success.

WHAT TOO MANY NEW RESTAURATEURS DO:            Everyone is equal – my focus is filling seats! How on earth could I invest the time to build this type of relationship with every customer?

[]         WHAT TO DO:          Service Above All Else.

Understanding what service means in today’s economy is essential. In a world where mass customization and personal connections have been made possible through technology, there is no excuse for avoiding the delivery of exceptional service. As much as is physically possible – the answer to a guest’s request should be “yes”. This is what they have become accustomed to.

WHAT TOO MANY NEW RESTAURATEURS DO:            No exceptions! This is what I serve, how I serve it, and when I serve it. If anything changes it will be because that is what I decide to do.

[]         WHAT TO DO:          Excellence in Product – No Excuses!

Excellence is becoming an expectation in most segments of the food business. There is a movement to significantly improve the quality of ingredients, the methods of preparation, the flavor profile, and the nutritional value of food. Every restaurant should pay attention to this, evaluate what they buy and how it is prepared and develop a strategy for improvement. There are abundant examples of Excellent Quick Service, Excellent Family Style, Excellent Take Out, and Excellent Full Service Restaurants. It can be done and more and more customers are seeking this out and expecting it.

WHAT TOO MANY NEW RESTAURATEURS DO:            Excellence costs money, takes time, requires talent, and is not necessary to make money in a restaurant. I will focus on volume rather than quality.

[]         WHAT TO DO:          Create Value – Charge Accordingly.

There is a misconception that value is just another word for low price. Price is only one aspect of value and if that is a restaurants sole focus then there will be limited reasons for a guest to return. Value has everything to do with the overall experience that includes attentive service, unique flavor, and great ambience, personal connections with the operation, tabletop appointments, brand recognition, and the energy of the restaurant. When all components are in place then price becomes less important (never unimportant). This is where restaurants need to be. Grabbing a hamburger at Shake Shack is an overall experience that far exceeds that of other quick service operations. This “value” allows the operator to charge a premium for what they serve.

WHAT TOO MANY NEW RESTAURATEURS DO:            It’s all about price and quantity. If I can undercut the pricing of my competition then I will win over a customer base. The problem is that this is turning restaurant food into a commodity and nothing more. Loyalty rarely comes from simply charging the cheapest price.

[]         WHAT TO DO:          Be There – You Are the Business!

Absentee ownership doesn’t work in restaurants. You, the restaurateur and/or chef should be one of the primary reasons why guests are sitting in your dining room. Building relationships with guests and leading your team is as essential as the service and food that you provide. Caring about the guest goes with the turf. Shaking hands, thanking guests, expediting service, problem solving, and brand building are critical skills that return guest gravitate to.

WHAT TOO MANY NEW RESTAURATEURS DO:            I hire employees to be there for me. The host and/or manager can take care of this. I want to spend my time on watching the financials.

[]         WHAT TO DO:          Hire Right, Train Constantly.

There are no tasks in a restaurant that are more important than spending the time to find the best employees and constantly training them to improve. This is an investment in your operation, an investment that will always yield significant benefits. The most important asset that your restaurant holds is not the building, equipment, or location – it is the quality of caring, well-trained employees. Whatever time you are investing in this – double it!

WHAT TOO MANY NEW RESTAURATEURS DO:            I hire people when I need them and expect that they will perform. If not, they can be replaced. Training is expensive and since employees come and go so often, it doesn’t make sense to spend the money and time. Hmmm…I wonder why there is such a high turnover rate?

[]         WHAT TO DO:          Take Care of Employees.

This is a current topic worthy of significant discussion and attention. A livable wage rises to the top of every conversation and this is, of course, important, but so too are considerations for training, empathy, predictable scheduling, sick time, vacations, providing the right tools for the job, building an effective team, creating opportunities for advancement, giving employees an opportunity to offer ideas and feedback, and treating everyone with respect. It is the total package that counts, not just increases in wages.

WHAT TOO MANY NEW RESTAURATEURS DO:            I pay them, it’s their responsibility to come to work prepared and ready to perform at the highest level. Take it or leave it – the restaurant business is tough – deal with it.

[]         WHAT TO DO:          Being a Restaurateur is a Life Commitment – Work Ethic and Marketing are Key Elements to a Successful Operation.

If this restaurant is your baby, there is an understanding that these investments are part of the drill. You work harder in an effort to take care of your staff members who in turn take care of your customers. Getting the message out today is different than it was a few decades ago, but the marketing effort is as, if not more, intense. Today we market our operations through social media, on-line initiatives, email blasts, and interactive apps for phones. In the end, it’s all about getting the message out. You work too long and hard to avoid paying attention to this.

“Early to Bed, Early to Rise, Work Like Hell and Advertise.”

Dr. Scholl

[]         WHAT TOO MANY NEW RESTAURATEURS DO:            I have a life outside of work, so I expect my employees to invest the time, not me. I will take out that weekly ad in the paper, buy some radio spots, and send out flyers on occasion. Advertising is advertising – a necessary evil.

[]         WHAT TO DO:          Have Enough Capital.

Operating a restaurant is expensive and will be forever. Make sure that you have a cache of funds to help cover expected and unexpected swings in business and absolutely make sure that those funds are sufficient to get through those initial start up years when you are building a reputation and working through the challenges of defining your brand.

WHAT TOO MANY NEW RESTAURATEURS DO:            I made the investment to open now I have to start making money right away.

[]         WHAT TO DO:          Have Patience and Believe.

It will take time for your operation to reach its stride and realize its potential. Wolfgang Puck stated that when he opens a restaurant his expectation is that profit is something that may not come for the first three years of operation. If you take care of the essentials, invest the time and energy, build the right team, create value, and BELIEVE in your concept, then success has a better chance.

PLAN BETTER – TRAIN HARDER

Harvest America Ventures, LLC

www.harvestamericaventures.com

Restaurant and Culinary School Consulting and Training

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RESTAURANT STAFF MEAL – THE IMPORTANCE OF BREAKING BREAD

23 Monday Jun 2014

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RESTAURANT STAFF MEAL – THE IMPORTANCE OF BREAKING BREAD

There are very few, if any other businesses that view a staff meal as not just a benefit, but rather a necessity. Labor laws do not mandate that a restaurant provide a meal for its staff, only that time for consumption of a meal is provided. Restaurants choose, somewhat due to tradition, to offer this sustenance for employees.

Over many years chefs and management have expressed mixed feelings about the meal and far too often have viewed it as a costly inconvenience. Recently, there has been a commitment on the part of a growing community of restaurants to view the staff meal as a “family” or team building opportunity. This is becoming a vehicle for restaurants to communicate, set the tone for service, inspire and build stronger team relationships. The reference commonly used is the chance to “break bread”.

There is, of course, plenty of history and subliminal meaning behind the “breaking bread” phrase. Much of this history dates back to the early days of Christianity when the church referred to this as a part of fellowship.

“The early Christians came together regularly for common meals, which included the breaking of bread. The reference is to these individuals having everything in common.” http://www.gotquestions.org/breaking-of-bread.html

In a restaurant, that commonality is evident in the purpose of service, the respect for food, the passion for preparation, the respect for process and historical cooking traditions, the enjoyment of food as entertainment, and the responsibility to create customer value. The staff, or family meal, provides everyone the opportunity to reinforce this common bond, refer to the restaurants objectives and enjoy each other’s company before they are immersed in the moments of service. This time, as short as it might be can be the difference between success and failure during a meal period and beyond. The significance of breaking bread should not be overlooked.

What is served, how it is set, in what manner the time for family meal is allotted will be critical and as more and more restaurants grab onto the opportunity the benefits are becoming evident.

If your restaurant views the meal as an opportunity to simply provide a carbohydrate rush that helps to build energy for service, then the larger benefit will never be addressed. If time is not built into the schedule that allows staff members to stop for 20 minutes or so, sit and enjoy a meal together, then the value of “sharing things that people have in common”, will be lost and the real growth of a team will be diminished.

An effective family meal can provide a chef with the opportunity to excite staff members about his or her style of cooking and the uniqueness of what the restaurant offers. A taste of a new wine offered by the sommelier or manager will provide staff members with the opportunity to build their wine knowledge, especially pertaining to how it might complement certain foods. Adequate time for both front and back of the house employees to sit and enjoy the food, converse and learn about each other will be critical in building understanding and keeping everyone focused on what is important. For a period of time everyone in the restaurant can truly feel that they are equal. Everyone begins to see that each person contributes to the success of the operation and each job is critical.

There are ancillary benefits to family meal in those restaurants that wish to use this time as a broader educational event. Looking around the staff table, most restaurant employees will see a diversity of ethnicity, race, and life experiences. There is an opportunity to break down barriers and learn from each other. Maybe that line cook or dishwasher from Central America should have an opportunity to prepare a dish for staff that reflects his or her family traditions. Quite possibly, the waiter who proudly emigrated from France, Italy, Russia or Spain could toast the staff with a wine from his or her homeland and talk about its historical significance. Maybe the chef or sous chef who has worked in a variety of restaurants can bring back a dish from a past operation and demonstrate how his or her personal cuisine evolved from those early beginnings. Every time something new is added to the family mealtime a staff member builds his or her base of knowledge and in turn becomes a stronger employee.

Chefs and managers are and should be educators. Their ability to attract, train and retain a great team is reflective not simply on pay scales, but even more importantly how they can help those employees build their base of knowledge. Knowledge is one of the best retention tools in an industry that is plagued by turnover. Just as great bread and exceptional coffee sends an important message to a guest about the quality of a meal and a restaurants commitment to doing things right, so too does the staff meal and the celebration of team send a message to current and future staff.

“I judge a restaurant by the bread and by the coffee.” –Burt Lancaster

Burt Lancaster views this through the eyes of the restaurant guest; the analogy does apply in the same fashion through the eyes of the employee.

I applaud the recent movement towards creating a family meal event in restaurants as evidenced by a growing number of excellent books on the topic. If you are interested in viewing your staff meal differently, I would strongly suggest that you take a look at these books and add them to your chef’s library.

STAFF MEALS

OFF THE MENU

COME IN, WE’RE CLOSED

FAMILY TABLE

EATING WITH THE CHEFS

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

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AN UNLIKELY BUT PERFECT MARKET SEGMENT FOR GREAT CHEFS AND RESTAURATEURS AWAITS YOU!

07 Tuesday Jan 2014

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AN UNLIKELY BUT PERFECT MARKET SEGMENT FOR GREAT CHEFS AND RESTAURATEURS AWAITS YOU!

We all realize how important restaurants are to those who have a need to celebrate. Anniversaries, weddings, birthdays, and holidays or simply because it is Friday: our guests are looking for a reason to celebrate in restaurants of all types. Chefs and restaurateurs are always looking for a venue that will lead to success whether it is a freestanding operation off an active traffic artery, a destination restaurant with a spectacular view or a hotel with its captive clientele. After all, we still subscribe to Ellsworth Statler’s three most important attributes for a business: location, location, and location.

What we tend to sometimes over look are the numerous other reasons why people dine out: social networking, a need for conversation, a time to reflect, a perfect stress reliever, the joy in having someone else cook and clean up, or a simple respite from the pressures of life. All of these factors point to a significant sector of the foodservice market that is growing, but that finds it challenging to attract those mover and shaker chefs and highly competent restaurateurs. This market has been labeled (portraying it as limiting) as “B and I” (business and industry) or Contract Feeding. In both cases the labels infer that this is a utilitarian sector with the primary goal of delivering food in large quantity to an impatient market. This is, of course, not very inspiring for those working in that segment, nor those choosing to spend their money there.

The “institutional (God awful term)” segment includes: hospitals, school cafeterias, college food operations, workplace cafeterias, transportation centers, senior centers and retirement complexes. We should all take a step back and think about this market and the opportunities that are present with a different mindset pertaining to food and the impact that it can have on participants.

Beginning with hospitals: I have yet to meet a person who looks forward to spending time in a hospital. Typically you are admitted because there is a problem – something that needs to be identified and fixed. There will be poking and prodding, lots of angst, potentially negative outcomes, and pretty significant expenses as a result. What does a patient have to look forward to? Friends and relatives who visit share in many of the same feelings that the patient does with hours and sometimes days spent bed side or in waiting rooms. Additionally, staff members have an emotionally and physically stressful job caring for people with issues and associated angst. In all cases, there needs to be opportunities for stress release and reward at some level. Food is a common denominator and one that can make a real difference in the hospital experience, yet finding kitchens that attract serious culinarians or those with the mindset of restaurant service is challenging. This is not a segment that young culinary professionals typically put at the top of their career wish list. Yet, what a difference they could make in the lives of the deliverer of health services and the recipient of care. People have the same food preferences and needs while in this environment as they do back on their home turf.

School and college food outlets provide similar opportunities. Remember, Americans now spend more than 50% of their food dollar in some type of restaurant. Those students of various ages have an expectation and a need when it comes to the foods they are served. This is the time when young palettes can be molded and developed for the rest of their lives. Restaurateurs and chefs can play a significant role in this process and should look to school and college feeding as more than another a place to deliver food, but rather-a place where concepts and content can have an impact on a growing restaurant profile group and where new ideas can be nurtured on discriminating palettes.

Understanding the needs of employees who work in office complexes and plants is critical to the success of food operations in those venues. Exciting, contemporary, appropriate concepts and menus can greatly improve the morale of this audience (fairly captive by the way) and impact on the financial performance of those businesses where they work.

Transportation centers have been the punching bags of the media in recent years as flight delays, security lines, invasion of personal space, and lack of guest comfort seems to be the norm. Frustrated and sometimes angry travelers have typically low expectations of the food offered in these venues and the service mentality of those who work in those operations. The market is wide open for great food experiences and talented chefs and restaurateurs.

Finally, senior centers and retirement communities are being filled with aging Baby Boomers. This is the most highly educated, well-traveled, sophisticated consumer group that this country has ever known. They need intellectual stimulation, have well developed food palettes, know wine and great coffee and feel somewhat empty when those opportunities are not present. Yet, it would be very hard to find a senior venue that understands this and provides those restaurant experiences for this large and growing population. As people age, their ability to smell and taste changes. Talented chefs and restaurateurs can find ample opportunities to show their abilities to this audience and identify ways to support their careers while making a real difference in peoples lives.

An increasingly large segment of the American population spends time in these segments every day. Young chefs, cooks, managers and restaurateurs could and should look to these areas as career tracks and business opportunities. Partnerships with hospitals, colleges, office complexes, travel centers and senior living environments can lead to rewarding business opportunities.

There are many companies and venues that “get it” and are re-charging their efforts at adapting to changing markets and in some cases defining what this segment should look like moving forward. All of them provide terrific opportunities for talent chefs, cooks, managers and aspiring restaurateurs. Visit their websites for more information.

Restaurant Associates
http://www.restaurantassociates.com

Sodexo
http://www.sodexo-usa.com

Compass Group
http://www.compass-usa.com

Nutrition Management Services
http://www.nmsc.com

LePain Quotidien Bakery Cafes
http://www.lepainquotidien.com

Delaware North
http://www.delawarenorth.com

Paul French Bakeries
http://www.paul-usa.com

Leisure Care Retirement Facilities
http://www.leisurecare.com

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YOUR BUSINESS RESOLUTIONS FOR 2014

29 Friday Nov 2013

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YOUR BUSINESS RESOLUTIONS FOR 2014

Well, 2013 is nearly over. Time certainly does fly by both professionally and personally. I hope that this year has worked out well for your restaurant, resort, culinary school or hotel and that you are looking forward to an even better 2014.

In preparation for the year to come it is customary for each of us to jot down our New Year Resolutions. This is always fairly easy: the challenge is staying on track and bringing those resolutions to fruition. The following list represents those goals that most restaurants, resorts or culinary programs need to address to drive business success in 2014.

• Increase brand awareness for our restaurant, product or culinary program
• Better inform the public about the unique qualities of our business
• Increase restaurant traffic or program enrollment
• Build consistent quality into the presentation of products and services
• Design a product that meets and exceeds the needs of our target audience
• Build check averages
• Become more effective at hiring the right people
• Build team awareness and esprit de corps among employees
• Determine ways to maximize sales
• Become more effective at controlling costs to ensure financial success
• Train staff to improve customer service
• Improve internal and external communication

This list truly represents the primary tasks of management, ownership, chefs, program directors, kitchen and dining room managers, food and beverage directors and budding entrepreneurs and could fit into any 2014 list. If you understand the need to focus on a list of this type but simply need guidance or assistance with implementation, it may be time to contact us as you prepare for a very successful year.

Harvest America Ventures is a consulting and training company focused on the restaurant business and collegiate programs offering culinary arts majors. Contact us to day to begin a dialogue on how we might work together to bring those goals to fruition.

PREPARE BETTER – TRAIN HARDER

http://www.harvestamericaventures.com

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RESTAURANT FIRST IMPRESSIONS ARE LASTING ONES

31 Thursday Oct 2013

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RESTAURANT FIRST IMPRESSIONS ARE LASTING ONES

How important are the details? Make no mistake the “small stuff” does add up when building an experience for your guests. First impressions help to draw people into your business, set the tone for the experience, build guest expectations, define your concept, demonstrate your commitment and establish the measurement for value. How are your first impressions?

I remember a great story that I heard years ago about SAS airlines. The story was titled: “cattle calls and coffee stains” and referred to the way that many airlines board planes and their lack of attention to detail. In the story reference is made to the guest who once seated, pulls down the chair tray only to find coffee stain rings from a previous passenger. As small a detail as this might be, the guest immediately wondered if they could safely fly the plane if the airline couldn’t even clean their chair trays. Details do matter!

Consider some of the more remarkable retail companies and their approach. Apple Computer draws people into their stores by using simple, clean lines that highlight the product. This is accomplished with dramatic use of light and glass, minimalistic décor and attention directed to the brand and the product. As a result they own the largest dollar sales per square foot of any retail company.

Anthropologie pulls customers in by creating one of a kind window displays that tell stories and tie the product into those stories that entice and educate at the same time. This company accomplishes this through a team of artists in every one of their stores, a home office department dedicated to research and design of these windows and a decision to forego traditional advertising for the uniqueness of their first impression strategy.

Restaurants can learn a great deal from these and other effective models focused on first impressions that are visual, textural, aural and in some cases even involve olfactory senses. Restaurants can even add the sense of taste to their first impressions.

Walk through your restaurant as a customer. Be aware of first impressions: “sweat the small stuff”!

1. Begin with your curb appeal. How does the restaurant look from the vantage of a car seat? Is it sharp, clean and inviting? Does the exterior need paint, better lighting, more appropriate signage or better landscaping? Is your parking lot clean, well lit, freshly paved and free of views of dumpsters and discarded equipment?
2. When you approach the entrance, is it inviting? Are the windows clean and does the entrance subliminally say: “welcome”?
3. As you enter the restaurant are you immediately greeted? Is the transition lighting such that your eyes adjust immediately from being outside?
4. What are the visuals? Are they related to the restaurant concept? Is the restaurant décor interesting, warm and free of unnecessary clutter?
5. Are the colors conducive to a great food experience (warm earth tones are best)?
6. Pay attention to the distinction between pleasant sounds and noise. What is the noise level (a comfortable level of customer chatter is a positive, acoustics that do not allow the sound to dissipate can be very unpleasant and will oftentimes ruin an otherwise positive experience for guests)? If you pipe in music of some type is it appropriate for the concept of the restaurant and it’s menu? Are there kitchen sounds drifting into the dining area? Are these sounds adding or detracting from the experience?
7. Look at your tabletop. Is the table covering, glassware and china, silverware a match for the value experience you are trying to create? Do you have flowers on the table? If so, are they fresh and vibrant?
8. Is the table lighting sufficient for reading the menu and viewing other people around your table? If not, this can dampen conversation and make menu decisions frustrating.
9. Are your service staff members professionally dressed and does the uniform (formal or informal) match the concept and the value experience? How about the staff members grooming (hair contained, body tattoos, jewelry and make-up) – is it appropriate for the concept?
10. Are your bathrooms attractive, well lit and most importantly spotlessly clean and free of offensive odors?
11. What are the smells in your dining room? Some food aromas are appropriate and may even add to the experience (the smoky smell of barbeque in a restaurant that features that product, the smell of fresh bread in a bakery, the aroma from a char-grill in a feature steak house), while others may turn people off (old oil in a deep fryer, too much garlic, burnt toast in a diner, etc.).
12. Look at your menu document. Is it clean, free of stains, torn corners, etc.? If not, replace them.
13. Finally, the restaurant has a unique opportunity to continue building positive expectations for a great meal and increase sales through the sense of taste. Consider the use of an amuse bouche (1-2 bite complimentary morsel from the kitchen) to encourage people to stand at attention for the flavors to come and even become more receptive to upselling. Make sure that your drinks, appetizers and soups help to build a positive picture for the overall experience.

First impressions are lasting impressions. Your goal should always be to create memories. Memories that are positive will bring customers back – the customers that allow your business to thrive are the ones who return on their own accord.

**NOTE: The picture in this post is of Alfred Portales Gotham Bar and Grill in New York City. This has consistently been one of my favorite restaurants in the country and one that truly understands how important first impressions are to their success.

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RESTAURANTS NEED TO GET PAST THE EARLY ADOPTERS

17 Thursday Oct 2013

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RESTAURANTS NEED TO GET PAST THE EARLY ADOPTERS

We oftentimes depend on the complexity of marketing principles to build our business. These principles have created a new generation of chef’s and restaurateurs who are consumed by innovation and pushing the envelope, simply because they misinterpret the statistical data that is behind what is known as the “customer bell curve”. The concept of the bell curve is built on five categories of customers (applicable to any industry): Innovators, Early Adopters, Early Majority, Late Majority and Laggards or Late Adopters. Statistically, it breaks down like this:

Innovators: 2.5% of the customer base
Early Adopters: 13.5%
Early Majority: 34%
Late Majority: 34%
Laggards: 16%

**from an article by: Morgan Gerard in Idea Couture: “Noodle Play”
http://www.ideacouture.com/blog/innovation-early-adopters-beyond-the-bell-curve/

Innovators are typically people who jump at the chance to try whatever is new and proclaim: “I was first”. Early Adopters are close behind and believe that their role in life is to define what is fresh and start the next trend. Most businesses would agree that attracting this audience is important if you are interested in creating a “buzz” around your business. Buzz does equate to new customers and many feel that the Early Adopter is the key to getting close to a new audience. Morgan Gerard dispels the belief that Early Adopters are the opinion leaders. He states: “this is only true if the Early and Late Majority actually follow their lead.” This points to the premise of this post.

As a consultant for restaurant operations I am constantly faced with the dilemma of the chef’s need to be creative and “test the waters”, versus the need to create a business model with staying power. Now, I personally love to try new restaurant concepts and unusual dishes. When I travel I tend to seek out those unique experiences and check them off my list. This is the challenge with Early Adopters (I consider myself to be one). Once they have experienced something new the need is to move on to the next breakthrough. Restaurants that have the ability to survive and thrive must appeal to the Early Majority (they don’t usually jump at new things until they are truly proven) and the Late Majority that move to a new concept kicking and screaming. These two categories of consumers represent nearly 70% of the potential customer base. To be successful, long-term, this is where restaurants need to be.

The challenge, of course is getting to that point. Certainly, restaurants need to evolve at some level and try new things, but it is imperative not to stray too much from what works: well prepared food, great flavors, consistent outcomes, attentive service and stellar hospitality.

I just finished filling out the annual ACF/NRA survey of “what’s hot” that will become a benchmark for chefs as they plan the next iteration of menus for their properties. What was interesting is how many niche (what I might consider short-lived) products or preparation concepts were offered as choices. There are restaurants, in large urban markets, that can take on the role of “innovator” and do well for a long time, but they are few and far between. I will leave this role to Grant, Ferran, Rene and Heston. To try and emulate these unique, highly sophisticated concepts, would be dangerous for most restaurants to attempt and likely lead to business failure.

Attention to ingredients, serious cooking, building on great flavors and beautiful presentations with the right amount of friendly service will always trump those restaurant concepts that come and go. If restaurants and chefs used the parallel of investing 2.5% of their menus and time to pushing the envelope and stay focused 97.5% of the time on cooking well, serving well, paying attention to customer needs and building a base of return guests they would have a much better chance of weathering the storm, surviving and thriving for the distant future.

Keep the innovation going, watch what the highly creative few are doing, experiment cautiously with your own operation, integrate ideas when that Early Majority feels compelled to “buy in”, build on constantly improving the great food and consistent overall experience that 70% of consumers are seeking, and enjoy the best of both worlds.

The picture attached is of Duck Confit resting after a few hours in duck fat. Serve this with flageoulet beans, or polenta, sautéed kale and a robust glass of Cabernet Sauvignon or Zinfandel. All the innovation in the world would have a tough time competing with this flavor profile.

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A Sad Day for Those in the Restaurant Community

11 Wednesday Sep 2013

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A Sad Day for Those in the Restaurant Community

This is a day, as we all well know, that will always be remembered. September 11, 2001 was a day that changed all of our lives forever, a day when evil seemed to win over good. Each of us remembers where we were on that day and what we were doing. I was in a meeting when an administrative assistant stepped in to say that a plane had crashed into the World Trade Center. Each of us thought that this was likely a small private plane that went astray and proceeded with the meeting. A few moments later the same administrative assistant stepped in to say that a second plane had crashed into the Towers. We were first in shock as our thoughts immediately went to our own families and then to those who we worked with. It was quite a few hours, as the day unfolded, before were were able to grasp what was happening. I was a teacher and after calling my wife and children, turned to our students to counsel them and help to make sense of what was transpiring. Was this the beginning of the end? Who was responsible for this and how far reaching will this event become over the next few hours, days, weeks?

I would later find out that one of my former students, Chris Carstangen was on the second plane that crashed into the Towers. My heart broke for his family and friends. America, of course, acted and reacted bringing our country to a place that we would not have dreamed: 12 years of war trying to find an answer and prevent this from happening again on our soil.

As we remember that fateful day I felt that it was important to reflect on one group of people who suffered and then united as a result of 9/11. When the planes hit the Towers, one of America’s great restaurants fell target to this unthinkable attack on innocent people. Seventy-nine employees of Windows on the World Restaurant died on that day in 2001. They were serving breakfast and preparing for another beautiful day overlooking Manhattan. Chef Lomomaco, through a twist of fate, was delayed in arriving at work that morning while he was getting his eye glasses repaired. As he began his trip up through the Towers, the first plane hit and diverted people on to the street. He watched in horror as his restaurant burst into flames and the Towers eventually collapsed. Seventy-nine beautiful people who were his co-workers and friends lost their lives, leaving behind families and friends of their own.

Kevin Zraly was the director of the Windows on the World Wine School and shared in Chef Lomonaco’s grief and deep sense of loss. He too lost his friends and colleagues.

In the days that followed, restaurant workers, chefs and restaurant owners from NYC and around the country descended on Ground Zero to help feed the hundreds of firemen, police, and other volunteers who were sifting through the rubble looking for survivors and recovering those who lost their lives. It was what restaurant people do. It was the one way that we all know how to help and give some small sense of relief to those who were stunned, but committed to the awful task of recovery.

It took many years, but the New York landscape is returning to a sense of normalcy, restaurants have come and gone, but the food scene is once again vibrant, the 9/11 memorial is scheduled for an opening in the near future, and fundraisers have collected money to help the families of the restaurant workers who lost their lives on that day in 2001.

Today we remember all of the nearly 3,000 who lost their lives on 9/11, the subsequent thousands who lost their lives in Iraq and Afghanistan fighting to make sense of these events, and especially those innocent restaurant employees who only wanted to make great food, serve the public, and bring a smile to the face of those who could view Manhattan from the top of the world.

We will never forget.

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The Spark of an Idea – A Restaurant is Born

28 Sunday Jul 2013

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Are you an idea person? Maybe you are more of an implementor. Or are you a bit of both? Does this picture represent you:
* I can’t stop my brain from working overtime
* I have lists of ideas everywhere
* I have many sleepless nights while new business ideas keep me awake
* I think about the next great restaurant while in the shower, driving to work, having dinner at another restaurant, preparing my mise en place at the restaurant where I am currently employed, or just walking through a number of unrelated businesses and seeing something that sparks that creative thought process.
* How many times have you designed that next killer restaurant on the back of a bar cocktail napkin?
* Do you scribble business ideas on a legal pad while suffering through another pointless business meeting?
* How often have you said, “you know what would work great in that building”?
* Maybe a friend, lecturer, announcer, business colleague says something that sends you into “another creative thought utopia” never to return to the original conversation.

The question is, what do you do with these ideas? How do you focus your creative thought process and move beyond idea to concept and bring that concept to fruition? What keeps you from being the next wildly successful entrepreneur?

When I was in the classroom I would ask young culinary and hospitality students how many wanted to own their own restaurant. The vast majority would raise their hands. I would always follow up with “I hope to convince you not to take that route”. Why would I ever say that? I felt justified because of the statistical data that demonstrated incredibly high failure rates among entrepreneurs. My job, I thought, was to help them put these thoughts of owning their own on the shelf and concentrate on becoming successful employees. Well, I was wrong!

Every decent chef that I know has or had a dream to be a restaurateur. It is, after all, the great American dream. Entrepreneurship is a right of every citizen and no country in the world is more open to welcoming private business than the U.S. What was terribly wrong with my classroom approach was attempting to stifle that creative gene that so many chefs have. That desire is an itch that needs to be scratched.

No one ever really gets ahead by playing it safe. A few will succeed and some will fail, but everyone should have an outlet for those ideas that keep them up at night.

So what keeps you from taking those ideas and running with them (hopefully it is not just teachers who are trying to help you to play it safe)?

Here are a few classic responses and solutions:
* I don’t have the money (find a partner who does and who believes in you)
* It is too risky and I am afraid (no pain, no gain). The beauty of being in the restaurant business is that if you fail at entrepreneurship, you can always go back to working for someone else.
* I don’t have the time right now (sooner or later you really won’t have the time – act on the idea now)
* I have too many current commitments (that will never change unless you begin to adjust some of your priorities)
* I have a well-grounded life-partner who tells me to chill and be happy with what I have (if they are truly your partner it is time to have that “I need to do this” conversation)
* I don’t have the business knowledge (go back to school and build that knowledge base)
* I lack the confidence to follow through (take the leap, learn as much as you can, practice and you will be impressed with how your confidence with change).
* I am too old (Please!!! There are many examples of entrepreneurs who started in their seventies.)

As I sit in front of the TV and watch another episode of “Shark Tank” I am really disappointed as the “Sharks” step on another dream and watch the rejection on their faces. To many, that great idea is what helps them to be complete. It needs to find a home or those sleepless nights will continue until they find an idea that sticks and builds enough traction to fulfill their creative dreams.

Do you have that next great restaurant concept tucked away in your subconscious? Light a fire under it, do your homework, find answers to those roadblocks and take that entrepreneurial plunge. Capture the excitement, it is what makes this country great.

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