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THE FUTURE OF THE RESTAURANT BUSINESS

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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

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COOK FOR ME

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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

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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.”

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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

www.harvestamericacues.com BLOG

 

 

 

 

 

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

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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

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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?

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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

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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

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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

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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

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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