New study says creating emotional ties with consumers is a successful strategy | RetailCustomerExperience.com

New study says creating emotional ties with consumers is a successful strategy | RetailCustomerExperience.com.

Leading Fast Casual Restaurant Chains Not Only Weathered the Economic Storm, They Prospered, Reports NPD

Leading Fast Casual Restaurant Chains Not Only Weathered the Economic Storm, They Prospered, Reports NPD.

When bad websites happen to good restaurants – The Boston Globe

Here’s a great article on Boston.com that Dave from www.Foodservice.com shared. It’s funny and very topical. Give it a read.

When bad websites happen to good restaurants – The Boston Globe.

10 Back Burner Posts That Will Boost Your Profits

This is our first article from The Back Burner blog. It is run by employees of eTundra.com, a restaurant parts, supplies and equipment company. Unlike many other business blogs, this one isn’t just a big advertisement for their products. There are lots of helpful articles about running restaurants. Check it out.

10 Back Burner Posts That Will Boost Your Profits
by Greg McGuire

After three months and 124 posts, The Back Burner is fast becoming a wealth of information for anyone involved in the restaurant industry.  The downside of putting up so much content, however, is that some really good posts kind of get lost in the mix and are quickly buried in the archives.

That’s why we’re starting a new series of posts that bring some of these “oldies but goodies” back to the surface in case you missed them the first time.  Recent news has suggested that food service might finally be turning around, and as we look forward to a brighter summer (couldn’t get no worse, right?), take a moment to peruse these 10 Back Burner posts that will help your establishment pile the black onto your bottom line.

1. Engineer Your Menu - Discover some simple menu layout strategies that are proven to improve check averages and get your customers buying rather than looking.

2. Improve Your Restaurant’s Energy Efficiency – Having a green restaurant isn’t just a hot buzzword, it’s a great way to brand your restaurant, build customer loyalty, and slash expenses.  Get some front-of-house energy saving tips here.

3.  The Economics of Free - It might seem counter-intuitive at first, but giving things away for “free” can actually help you build your customer base and boost profits.

4. Why Fast Food Lunch Is Good For Your Restaurant – Value minus time equals a busy lunch rush.  Learn to market your lunch menu properly and fill your establishment all week long.

5. How To Manage Rising Food Costs – Keeping expenses down is a key component of any profit-boosting strategy.  Learn how to keep food product costs down with these simple steps.

6. Dirty Restrooms Will Keep Patrons Away – Sometimes it’s the simple things that can affect customer retention and therefore profits.  A recent poll shows just how badly a dirty restroom reflects on your restaurant.

7. Should You Cut Costs In Payroll? – When profits are suffering, it’s tempting to cut costs where you tend to spend the most: payroll.  Unfortunately, this can turn out to be a sharp double-edged sword.  Learn more here.

8. The 4 R’s Of Driving Server Sales - Well trained servers are the engine driving your restaurant’s sales.  Learn how to turn that engine into a well-oiled machine that fires on all cylinders.

9. Use A Bar Spotter To Increase Profits – As tips decline for bartenders, the bar and restaurant industry have turned to “secret shoppers” for help reducing graft and improving sales for bartenders.

10. How To Improve Dessert Sales – Selling dessert is probably one of the toughest jobs any server will encounter.  Get some tips on how to help your customers go from saying “No” to saying “Yes.”

Greg McGuire blogs about restaurant marketing and management at The Back Burner, which is written by the employees of Tundra Specialties, a company specializing in restaurant equipment and other food service supplies.

Keeping it simple: How to create a restaurant concept that can succeed

High failure rates for restaurants. Yes they’re exagerated, but they’re still high. According to recent studies from Cornell and Ohio State universities, 59-60% of restaurants fail within the first three years. As many as 75% may fail within the first five. Why are they so high? For a list of the six biggest reasons, see The biggest mistakes restaurants make, and why they have a high failure rate.

For the purpose of this article, I’m going to talk about a key fundamental in restaurant concept design, keeping it simple.

Big menus with too many items, oversized dining rooms, multi-ingredient dishes, huge liquor selections and wine lists and over decorating. They’re all symptoms of the same problem, overcomplicating your concept.

As a restaurateur, you may find yourself getting bored with traditional menu items. For you, eating in a restaurant might need to be an adventure. You may have to see or try something you’ve never seen before to be impressed. Very well. I’m the same way.

This may be the underlying factor in why restaurant owners routinely go overboard when designing their concepts. They push their own sensibilities on the general public, not realizing that their tastes are the exception to the rule, and not indicative of the tastes of the public at large. Restaurateurs think they need to present every dish possible to make out of the ingredients they already carry. They think carrying 15 scotches instead of 5 will earn them more customers. If you have a larger selection, you’ll appeal to more people, right? Wrong.

Trying to please everyone leaves you unable to be defined. When you have too many colors in your decor, too many styles of fixtures and furniture, and menu items that represent too many styles of cuisine, your customers find it harder to describe you and recommend you. You find it harder to manage your business effectively and market your brand. You’re trying to stand for too many things at once. Cut out all the extras and keep it simple.

Here’s a short list of things you can do to keep your concept simple.

Choose two contrasting but complementary colors to design your concept around. You may use a third neutral color for accenting, but stay away from unneeded detail and too many extra colors in your scheme. To create a solid brand, you need to be more than attractive, you need to be memorable, and that means keeping your color scheme simple. Use these colors to design your logo, signage, marketing, and to decorate the inside and outside of your restaurant.

Keep your menu small. This serves many purposes, some of which are outlined in my article, Creating a manageable menu. A small menu is easier to control costs on, easier to prepare and order for, and easier to provide consistency with. By having a small menu, your service will be faster, your food quality will be better, and you’ll make more money. Keep your menu simple.

Keep your dining room simple. Smaller dining rooms are easier to manage. If you’re thinking of opening your first restaurant, don’t build a huge dining room with 200 seats. A large dining room takes a large management staff and lots of employees to run. If you find that your 80 seat restaurant gets full every night, then build another one. Don’t worry that you’re not building it big enough.

Keep your market simple. Don’t convince yourself that you want all people of all demographics to like your business. It’s not going to happen. By going after “everyone”, you’ll end up with no one. Even if your style of cooking has mass appeal, your location will determine who is most likely to come into your restaurant. Identify those person’s age, income level, sex, marital status and religion. They are your target market whether you like it or not. If your concept doesn’t appeal to the people in your area, then you don’t have a feasible concept and you aren’t likely to succeed. Keep your demographic simple and focused. For more on identifying your target market, read this article.

Keep your menu dishes simple. When you have too many ingredients, and/or too many touches that need to be made to the dish after it’s ordered, before it goes out, you slow down the production of your food. A ticket will only go out as fast as it’s slowest dish. Keep your food simple and easy to produce. Let the ingredients be the stars and don’t lose them in a mish mash of flavors.

Don’t try to carry every liquor any possible customer could want. If you don’t have Glen Fiddich, but you do have five other single malt scotches, any reasonable customer is not going to overlook your restaurant next time because you don’t carry their particular brand, and for the one in 1000 customers who will, so what. It is more important for you to have a manageable inventory and a selection small enough for your staff to become knowledgable on than it is to try and please every customer’s sense of taste. I’ve got a secret for you. Even if you carry 30 different vodkas, you’ll still end up with someone requesting one you don’t have. Keep your liquor and wine selection simple.

While this is the end of this short list, it’s not the end of the application of this fundamental philosophy of restaurant concept design. Any time you have the opportunity to simplify your concept, take it. You’ll end up with something that is simpler to manage, simpler to market, and simpler to turn a profit with.

Brandon O’Dell
O’Dell Restaurant Consulting
(888) 571-9068
brandon@bodellconsulting.com
www.bodellconsulting.com

20 steps to lowering your food or liquor costs

food inventory spreadsheet from O'Dell Restaurant ConsultingThis article will be one of the most important I’ve ever written for restaurant owners and managers in other food services. In this article, I’m going to do something you won’t see from another consultant. I’m going to share with you the exact steps of an action plan I created to help a restaurant create a food cost fitness program, along with some helpful commentary from me. These steps would be the same for liquor costs, but would focus on different employees in a different area of the restaurant.

Outlining this plan for you may be to me a little like a restaurant owner publishing their secret recipes, but my main interest is not in keeping the things secret that I do to help restaurants. My main interest is in improving the restaurant and food service industry as a whole.

This list may not be completely comprehensive for every restaurant. There are likely considerations that would change the process slightly for another venue, but I believe if you take this list and apply these 20 steps to your efforts in organizing a food cost fitness program in your restaurant, you will be miles ahead of your competition. Some of these steps include spreadsheets and tools you may not have or may not have the ability to create. If you cannot create them, you should be able to find them in several places on the web to download for a small cost or with a membership to a food service website. One of these places is our webstore at www.bodellconsulting.com/webstore.html. If you can’t find the needed Microsoft Excel or Word templates in our store, we likely still have it available or can direct you to another site that does have it.

There are two main objectives that this 20 step process seeks to accomplish:

  1. It gives you the ability to always measure where your cost fitness is at any given time. If you don’t know where you are, you can’t know how to get where you want to go.
  2. It gives you the ability to measure where your cost fitness should be. This is one step in the process that many owners skip. They do not use ideal or theoretic food costs to measure where theirs should be. Instead they use some made up cost percentage goal that doesn’t take into consideration their menu item sales mix which can affect the ideal cost percentage greatly without it being a good or bad thing. If you don’t know where you should be, knowing where you are doesn’t do you any good.

Lowering food costs is also tied directly to three other areas of food production that these steps will help with. These other three areas are:

  1. Production speed – 80% or more of your sales come from peak periods in your restaurant. Your ability to push as much food out of your kitchen during peak periods as possible without affecting consistency or quality is the key to making money in your restaurant.
  2. Food consistency – Food and beverage consistency is the key to meeting your customer’s expectations when they come in your restaurant. When your customers receive food of a certain quality in your restaurant, they will expect that same quality of food every time they come into your restaurant. You need to have a system for reproducing your food or beverages to the same standard of quality for every order.
  3. Food quality - The quality of your food is the key to delivering on your “promise” to your customers on what to expect from you. While customers in McDonalds don’t expect fresh-never-frozen 1/3 lb. beef patties, they do still have a quality expectation. They want their hamburgers still to be juicy and hot. Your marketing, name and implied level of quality set the expectations for your customers. Now, you have to have a system in place to make sure those expectations are met consistently. It’s okay for quality to be lower than another restaurant, like McDonalds might be to you, if that is what your customers expect and they still feel they receive a good value. The key is to make sure they get as good or better quality than you promise. Your customer’s perception of value inside your restaurant is directly attributable to the quality of your food and beverages.

If you see terminology in this article that you don’t understand or think is important, please follow the links to other articles explaining these terms and their importance. If you have further questions, don’t hestitate to contact me.

Now, without further ado……..

The 20 steps to lowering your food costs

  1. Observe a busy service period in the restaurant. Make any suggestions to staff or management that could immediately increase the speed of service until a system is in place. This could include things like adding an expeditor or increasing staff levels or preparing a sauce for a dish during the prep work instead of when the dish is being plated.
  2. Evaluate the talent level of your existing kitchen staff and chef and gauge their ability to use the cost control tools you would be putting in place. If for example you expect your chef to use spreadsheets and data from your point of sale system to evaluate your costs, then that chef must have strong computer skills and the ability to use those tools.
  3. Evaluate the current kitchen, equipment and setup. Do you have enough storage for all your ingredients considering the number of deliveries you get per week? Does your menu have lots of fried items on it while you only have one fryer? Does your line setup require cooks to cross in front and behind each other during the preparation of dishes?
  4. Evaluate your current P&L and customer counts to determine a needed gross profit per person to later be used in pricing a new menu. The only way to make sure your prices deliver enough dollars to not only pay for the cost of the food, but for labor, rent and every other expense of running your restaurant while still delivering a profit, is to consider ALL those factors when pricing your menu, not just the food cost.
  5. Evaluate your soft beverage, alcoholic beverage and food vendor contract and invoices, and current inventory. Are you getting good pricing compared to other restaurants in the market? How do you know? Are your inventory values up to date? Are you doing an inventory weekly so you don’t have to wait until the end of the month to know there was a problem?
  6. Get feedback from servers and bartenders on menu. Ask for evaluation and suggestions they may have from customers. Organize an informal survey to be conducted with customers by service staff to gather suggestions and feedback. Your servers are the people who know your customers better than anyone. You or the chef should be consulting with them when creating a new menu or evaluating an existing one. They are the only employees in your restaurant that truly know what the customer thinks. Get them on board and the whole process gets much easier and more effective.
  7. Create a menu that can be produced quickly within the constraints of your existing kitchen equipment and the talent level of your kitchen staff. Food would of course have to appeal to your target market and taste delicious, while also contributing the necessary amount of gross profit. Create a manageable menu, not one that asks more than your kitchen or staff can deliver.
  8. Create recipe spreadsheets for all the menu items. Creating these recipes in spreadsheets gives you the ability to link individual ingredients to your inventory spreadsheet so your recipe costs update automatically when you update your inventory prices. A good recipe spreadsheet can also be used for batch recipes on items like sauces and mashed potatoes that have to be made in large batches, then costed into portions. Updated recipe costs can then be used to calculate your ideal food cost.
  9. Create a food inventory spreadsheet that assists in calculating recipe portion costs, and also assists the food ordering process with par levels and automatically calculated order amounts. This spreadsheet is the heart of your food cost fitness program. It not only helps you determine your actual costs of food for the period, but it also provides the necessary information to all the recipes spreadsheets you link to it so recipe costs are updated automatically, which then links to your ideal cost spreadsheet to help calculate what your food should have cost you to sell.
  10. Create an ideal cost spreadsheet to help calculate what the food you sell should have cost you to sell. Ideal costs are calculated by multiplying your sales of each menu item by the recipe cost of that menu item. Adding these individual costs together gives you an ideal or theoretic food cost that should then be compared to your actual food costs for discrepancies. Linking your recipe spreadsheets to your ideal cost spreadsheet keeps your theoretic costs up to date all the time so you can do ideal cost evaluations weekly by only entering sales by item data.
  11. Create a menu analysis spreadsheet that helps you evaluate your best selling items and categorize all your menu items by their popularity and gross profit contribution. There are many versions of this spreadsheet available on the web. I believe the first version was created by a professor at Cornell University. It helps you classify your menu items into categories that assist you in evaluating your menu and determining what changes need to be made. My version of this spreadsheet also helps you calculate ideal gross profits for menu items, which is a number that can be used to strategically price your menu for almost guaranteed profit.
  12. Create a recipe book with plate pictures for all menu items, to stay in the kitchen as a training tool. Train on the new menu for two weeks before implementation. Use nightly features to practice the production of the new items during these two weeks. This is also an incredible training tool for new cooks. Good recipe spreadsheets should include complete instructions on how recipes are prepared. They also allow cooks to see the cost of each of your menu ingredients so they can help you better monitor the prep and waste of those items. Tools like this help turn low level employees into leaders and future managers.
  13. Create menu descriptions for the training of wait staff that includes plate pictures. Train on the new menu for two weeks before implementation. It’s just as important for wait staff to see complete menu descriptions as for the cooks. The wait staff are supposed to be the “expert” on your food in relation to your customers. If you waitstaff doesn’t know your food, they can’t sell your food. These menu descriptions should have already been created in the recipe spreadsheets. For the wait staff, all you have to do is assemble each desription with each picture.
  14. Create prep lists for every station in the kitchen. Prep lists tell each cook exactly what items they have to prep for the shift. When you create a list you create accountability. You have a tool that management can use to verify the employee has done their work. This list should have space for your chef or kitchen manager to add prep items for features or specials for each shift.
  15. Create line setup diagrams for every station in the kitchen. Line setup diagrams show cooks exactly where prepped items are placed in steam wells and coolers so their efficiency of motion is maximized. Since speed is so very important in a kitchen, proper placement of prepped items is also very important. Line setup diagrams should also include a description of the exact utensil that should be used to measure the portion for each prepped item. Portioning is very important to keeping food costs where they should be.
  16. Create job descriptions for all positions in the kitchen. Job descriptions not only tell employees what their duties are, but they also define to them the hierarchy of your restaurant, so they know who they answer too. In addition, a good job description should include the physical demands of the job. Creating good job descriptions also gives you a template to create effective job evaluations for employee reviews. When you tell an employee exactly what their job is, you then have a basis to measure their performance. More informed and properly focused employees are more efficient and can greatly affect your food and liquor costs.
  17. Design a menu that features high gross profit items prominently and employs other known psychological selling tactics to direct diners toward high gross profit items and increase sales. A well designed menu tells customers what they want to order. Once you know how many gross profit dollars each menu item contributes, you can know which items to push on your menu. You can then place items on your menu where they will get seen first, highlighting them with boxes, backgrounds, color and icons. You should also make sure your prices are properly placed, NOT listed in a column, NOT bold typed or highlighted, NOT containing a “$”, NOT listed next to “”……..” and rounded to a whole number OR to “.99″ instead of “.95″. That extra .04 per item can add up to thousands of dollars without being noticed by your customers.
  18. Train staff, managers and owners on preparation of new menu items. Now that you’ve created all the tools, the training is organized, focused and much more effective.
  19. Train staff, managers and owners on proper inventory, purchasing and receiving procedures. Having the tools makes the training of key staff and owners much easier, but you also must know the “whys” of inventory, purchasing and receiving. Who should check in the orders? Who should do inventory? Should the chef be the only one purchasing food?
  20. Train staff, managers and owners on use of all spreadsheets and checklists. Any tool you create will be useless without consistent followup, enforcement and discipline. You could have the greatest system in the world, but if no one is managing it, it isn’t likely to work. Likewise, managers need to be managed. They should be regularly questioned and periodically observed on their inspection habits, their use of checklists and their disciplinary procedures. What are the consequences if an employee doesn’t use the checklist? What are the consequences if the manager doesn’t inspect the employee’s work? Set your expectations and let employees and managers know the consequences for not performing up to your standards in advance. The more informed they are and the more consistent you are, the less you’ll have to worry about disciplining anyone.

If you follow these 20 steps to lowering your food or liquor costs, I know your costs will come in line. These are the same steps I use as a food service consultant, and they’ve worked for me many, many times. Remember though that “low” isn’t always the goal with food costs. You are better off selling a $25 steak that costs you $10 to produce ($15 gross profit) than you are an $8 cheeseburger that cost you $2 to produce ($6 gross profit), even though the cost percentage on the steak is 40% while the hamburger is 20%. What you should compare is the gross profit contribution of $15 for the steak to $6 for the hamburger. That extra $9 will go a long ways to pay for labor, rent, expenses and profit. What is more important is that your actual food cost and ideal food cost are within 1.5% of each other. If your food is costing you what it should be costing you to serve, then you know your waste and theft is under control. From there, if you’re not making money, you know the problem is your other expenses or your prices and not your product cost. Without comparing ideal and actual costs, you’re just guessing what the problem is.

Take these steps and implement them in your restaurant. No one solution can make all restaurants profitable, but this one can help eliminate the biggest issue in most restaurants and food service, cost control.

Brandon O’Dell
O’Dell Restaurant Consulting
www.bodellconsulting.com
brandon@bodellconsulting.com
(888) 571-9069

Chef Employment Contract now available for download!

We’ve just added an employment contract for chefs and cooks to our web store at www.bodellconsulting.com/webstore.html.

This contract template will help you avoid potential problems if you happen to lose your chef like:

  • Not having ownership of the recipes for your menu
  • Your chef going to work for your competitor
  • Important documents and management tools being taken for use
  • Proprietary secrets being divulged

A good working relationship requires mutual benefit and trust. Create an atmosphere of trust by spelling out your employee/employer relationship in an employment contract that defines all the terms of employment and protects both you and your chef.

This contract template is a Microsoft Word document and can be edited for use with other management, employees or sales staff.

Disclaimer: O’Dell Restaurant Consulting is not a legal advisor and this contract and all included should not be considered legal advice given to anyone using it. Check with your attorney on enforceability of all areas of this contract and use a qualified legal professional to assist you in making sure all employee agreements are legal and enforceable.

Click the “Buy Now” button to purchase our contract directly for $25:

Who owns your kitchen’s recipes? Has your chef signed an employment contract?

A popular topic lately in a couple different restaurant discussion forums I participate in is the question of who owns the recipes your restaurant uses?

Let’s look at a couple possible scenarios that could affect your restaurant.

  1. Your executive chef or kitchen manager quits. Maybe one or two members of the kitchen staff leave with her/him. Your chef keeps extensive recipes written down in a book they’ve had since long before they worked for you.
  2. You fired your executive chef and there are no written recipes. Everything comes from the head of the executive chef or the cooks he/she trains.
  3. Your chef leaves your restaurant for a bigger, better opportunity. It’s a benevolent departure. No animosity.

What happens next in any of these scenarios? Do the recipes the chef has written down belong to the restaurant? Does the restaurant get them when the chef leaves? If there are no recipes, can the restaurant make the chef create them before the chef leaves so the restaurant can continue to produce the same food? Are any of the cooks trained enough to recreate the recipes the chef used to make? Is this cook even going to stay when the chef is gone?

No matter the answers to any of these questions, it is very important for the continued success of your restaurant that you are able to consistently produce the same quality of product, tasting the same as before, if you want to keep the loyal customers you have. If the food was horrible, maybe you want to change all the recipes, but you’ll still want to pay attention to the rest of this article to avoid potential pitfalls with the next chef.

All this begs the question, “Can your restaurant survive the departure of your head chef or kitchen manager?”

In addition to helping you evaluate your current situation and the risk you already have if your head chef leaves, I’m also going to help you take the steps to lower your risk and remove the impending doom of losing your top chef.

What are the risks if my chef leaves?

If you are unfortunate enough to lose your executive chef, whether it be a termination, the chef quitting, or the chef moving on to a better opportunity, there are several potential problems they could leave you with and several considerations you may have never made.

  • Recipes can be copyrighted, but copyrighting doesn’t keep someone else from using the same formula or recreating the same food. It may only protect any unique methods or systems of creating the food. In effect, you may not be able to keep a chef from reusing the recipes you use at a restaurant down the street just by copyrighting the recipes.
  • The chef may consider the recipes they create as their own intellectual property. If they were created while working for you, doesn’t that make them your property? Does a researcher for Pfizer get to keep the cure for cancer if they create it while working for Pfizer? “Who owns my recipes?”
  • A chef you have fired or who quits, even one who leaves under good terms, may not feel compelled to leave you with the recipes created while they were working for you.
  • A chef you have fired or who quits may think it’s a good idea to go to work for one of your competitors and make the same food you serve to hurt your business.
  • A chef or cook who leaves your restaurant may think it’s a good idea to start their own restaurant using the recipes they learned at your restaurant.
  • The chef takes half your kitchen staff with her/him, including everyone who knows how to make your recipes.
  • The chef takes their recipe book with them which are the only written copies of the recipes to your food.
  • You’re left without a chef and without recipes. You are in a state of desperation while having to negotiate employment with the next chef you hire.

Any one of these problems could do some serious damage to your restaurant. It’s best to consider these issues before hiring your chef and create an employment contract that protects the quality and consistency of the food you serve. Without that quality and consistency, your restaurant is at great risk to fail.

Now that you know it’s very important to protect yourself from these potential problems, and I’ve told you that an employment contract can help, you’re lead to your next question, “What should be included in a good chef employment contract?

Here are what I consider to be “must haves” in any chef employment contract. Many of these you will want to include in an employment contract for all your cooks, your General Manager and any other key management staff that have access to your proprietary secrets.

  • A statement of duties, as in a job description. Usually an addendum to an employment contract, a job description helps you define in writing what is expected of the chef or other employee. The job description should be acknowledged and signed by the employee so you have proof the employee was aware of their duties.
  • The job description MUST include “creating and recording recipes in a recipe book owned exclusively by the restaurant” as one of the duties.
  • Intellectual property. This statement declares that any work done by the chef or other employee, recipes or operational tools created, procedures, etc. are the property of the restaurant and remain the property of the restaurant upon termination of employment. The employee is being paid by you to create for you. The creation remains your property just as it would if you commissioned a piece of art or hired a researcher to find a cure for cancer.
  • Conflict of interest statement. For full time, key employees, you will want a statement in their contract saying that while under your employment, they cannot hold another job or engage in any business or activity that conflicts with the interests of your restaurant. This is not a reasonable expectation for part time employees in my opinion though. If you are not providing enough hours so that the employee does not need another job, you should not try to prevent them from having one. Your employees have to eat too.
  • Confidentiality agreement. This statement in your employment contract forbids the employee from divulging any of your proprietary secrets to anyone else. These secrets include recipes, financial information, operations tools and manuals, policies, vendor agreements, training practices, technology, food and service methods, techniques, processes, studies and any and all records kept by the restaurant or any of it’s employees. This statement specifically helps you prevent your chef or cooks from taking your recipes or procedures down the street to your competitor.
  • Surrender of company documents. Upong separation of employment, this statement requires that the employee surrender any and all documents and property belonging to the restaurant, including recipes, checklists, operating tools, manuals, agreements, and any document whether printed or digital that was created on the clock while working for the company or was provided by the company to the employee.
  • New employer notification. This states that you reserve the right to contact the employee’s new employer to divulge to them the terms of the employee’s employment contract with you. This is meant to help you let the new employer know that their new hire is under contract not to divulge your proprietary secrets, procedures and recipes.
  • Non-compete agreement. The greatest risk of a good employee leaving is that they will go to a direct competitor and try to compete with you. A non-compete agreement helps you prevent them from doing just that. A non-compete should state that an employee can not work for, consult with or own interest in a similar business in your market. Basically that they can’t compete with you. A non-compete cannot keep an employee from making a living however. If you create a non-compete that tries to prevent an employee from performing any job even remotely similar to the one they held with you, you may have trouble enforcing it. Laws regarding non-competes vary from state to state and your ability to enforce yours may vary greatly from a restaurant in another state. In reality though, you are not trying to prevent your chef from finding a job somewhere else. You are trying to prevent them from taking your trade secrets and competing against you with them. A non-compete normally contains a time limit. 24 months is customary for most non-competes.
  • Employee solicitation statement. This statement forbids an existing employee from soliciting your other employees to work for them. This includes not only a direct job offer, but any sort of enticement, encouragement or pressure of any sort.

There are several other statements you should include to create a good contract. Make sure to use a qualified lawyer experienced with labor law and restaurants when creating any contract of any sort. I am not a lawyer and you shouldn’t consider this article legal advice. What this is however, is a good place to start when trying to protect proprietary information like recipes.

Until you have an employment contract in place, and a job description letting a chef know they are creating recipes for you that you will own, you are at the mercy of their ethics. A great chef knows that they are only as good as they left their last kitchen. They should have the moral drive to set any kitchen they run up for success long after they are gone. They shouldn’t try to steal employees or hide recipes. After all, a great chef can recreate a recipe anytime they wish, and there’s a never ending supply of recipes inside a great chef’s brain. You can’t depend on every chef you hire being a great chef however. You need to protect yourself and create an atmosphere that benefits not only your chef, but every employee in the kitchen.

Use employment contracts. Use job descriptions. Create and maintain up-to-date recipes on all your menu items, including the specials. Make sure you have copies too. Don’t be held hostage by any one employee. Create an atmosphere where chefs will be beating down your door to work in your organized, well run operation, just for the opportunity to express their own creativity. For the opportunity to work for a successful brand, and to have the freedom of creating to their hearts content because you’re not holding them back from insecurity that they may some day move on to bigger and better things. After all, if you hired a great chef, they will eventually move on to bigger and better things.

For help writing an employment contract for your chef or cooks, visit our webstore and look for our Employment Contract for Chefs and Cooks. This same contract can be amended to use for any employee.

Brandon O’Dell is an independent restaurant consultant who assists small to medium sized independent restaurants and small chains create the operational systems their chain competitors use everyday. Visit www.bodellconsulting.com for more information, or visit their blog at blog.bodellconsulting.com.

Restaurant Review – Waxy O’Sheas in Shawnee, KS

I’ve decided to start a new category of posts for the O’Dell Restaurant Consulting blog that I think will be very beneficial to restaurant owners everywhere. I am going to review restaurants that I have been to. These are not reviews from strictly a patron’s standpoint, but from the standpoint of an experienced food service professional and consultant. I will attempt to identify strengths and weaknesses in the operations of a restaurant and make suggestions on how the particular restaurant could maximize these strengths or overcome the weaknesses. Please read the following disclaimer:

Disclaimer: This review should not be read as an endorsement or warning for or against patronizing the described restaurant. It is intended strictly as a study of the restaurant’s operation, perceived weaknesses and strengths, and suggestions on how to improve the operation. As this review is not sanctioned or paid for by the owner, it is not meant to be a comprehensive review such as one O’Dell Restaurant Consulting provides to it’s clients. It is strictly superficial. There has been no discussion with the restaurant owner about these observations and no back of house or office visit has taken place to gain perspective as to the cause of the problems. My assumptions are based on my experience and may not necessarily reflect the actual cause or source of an issue.

Now that the disclaimer is out of the way, let’s get to my review. I will break this review down into three sections that describe different key parts of the operation; reception, service and food. Future reviews may contain other parts of the operation I have also been exposed to, such as marketing.

Waxy O’Shea’s Irish Pub – Mother’s Day 2010

Reception

Mother’s Day or Easter are traditionally the busiest days of the year in a restaurant. Many restaurant, like Waxy O’Shea’s, offer a brunch buffet. The intent of offering a buffet is to serve as many patrons as possible in as short a time as possible. On a day like Mother’s Day, it is especially important for a restaurant to process customers quickly. There are many customers to be served and the more customers served, the more sales dollars to be made.

Quick service for a buffet starts with the reservation (or no reservation) of tables and seating of customers. In order to process the most customers possible, a restaurant must have a good system in place to get customers from the door to the floor. Our first observation about Waxy O’Shea’s came when calling to make a reservation. Waxy O’Shea’s does not take reservations on regular business days and did not take them for Mother’s Day. Not taking reservations normally serves two purposes for a restaurant:

  1. No reservations means no empty tables being held open while the restaurant is waiting on the reservation to arrive. When there is a steady stream of customers, not having tables sitting empty for reservations means the restaurant can serve the maximum amount of customers their staff can handle during their rush. This normally means maximized sales.
  2. No reservations also eliminates the work of processing phone calls, tracking reservations and setting up a dining room to accommodate those reservations.

Not taking reservations sounds like a good idea, doesn’t it? In theory, it is, and it works for many operations. However, on the busiest days of the year, not taking reservations eliminates some advantages that can be gained through better planning.

  1. Taking reservations means being able to adjust hostess, bar and service staff to make sure your customers are best served.
  2. Taking reservations means being able to adjust food production to reduce waste, or more importantly, to make sure there is enough food to serve everyone.
  3. Taking reservations allows you to plan ahead for large tables and reservations that require you to separate or put together tables in your dining room.
  4. Taking reservations means having some control over the flow of customers in and out of your restaurant, allowing you more direct effect on their dining experience.

Whether or not taking reservations is a good idea for your restaurant depends on your ability to handle lines of people, clean and reset tables and give proper service.

Here is my observation on how Waxy O’Shea’s did in receiving and seating their customers.

First, I believe Waxy O’Shea’s would have benefited greatly by having a reception area for customers. The restaurant has a small wind break foyer, then a small receiving area inside the front door. The left side of the restaurant is the bar and the right side is restaurant seating. The small receiving area inside from the foyer has a floor standing specials board with a couple plants behind it. There is also a floor standing specials board in the foyer. In my opinion, the second one inside the door is redundant and the space would be much better used as a reception with benches for patrons who are waiting. Instead of a hostess stand, there is a shelf in the hall to the dining room where the menus are set, with a stool beside it where the floor plan with sections on it is kept. The look is very unprofessional and I believe this area would be best utilized for additional seating for reception. In all, I believe there is room to create seating for 12 or more patrons at the front of the restaurant. I’m sure the owners of the restaurant would question where to set up the menus and floor plan. I believe there is also plenty of room for a free standing podium with shelves inside, though I would rather see a built in hostess stand with a telephone line ran directly to it.

Another observation about the seating process of Waxy O’Shea’s was their lack of hostess staff. One person, who may have been an owner, had a note pad to take names for a seating list. While she did a good job with keeping everyone straight who was waiting for her to add them to the list, she was also trying to help clear and set tables for seating which took her from the front. While we were already on the list and waiting for a table, four groups of customers came in and waited to be put on the list. They were all added to the list in the right order of their arrival, but what the hostess/owner did not see was the 3 groups that came in the door, were not greeted and left to go eat somewhere else. The lack of a good setup and system cost the restaurant at least $200 in sales just in the 20 minutes I was waiting for a table.

On the positive side, we were able to come in the front door of the restaurant, put our name on a list, and get seated in 20-25 minutes. That was pretty good for Mother’s Day. However, I was very disappointed to see that after waiting for 20 minutes, and counting around 20 people waiting behind us, there were 13 tables in the dining room that were no longer full. Lack of a good system and slow processing caused all those people to wait while the restaurant could have been serving them and earning dollars, in addition to serving the others that decided not to wait. To someone walking in the door, the restaurant was full and the wait looked to be an hour. In reality, half the tables in the dining room were empty and the hostess was on the floor instead of greeting them and explaining the situation.

In addition to changing the reception setup, I believe Waxy O’Shea’s would have greatly benefitted from being adequately staffed for reception. In a restaurant that seats likely 200 people, a day like Mother’s Day where the tables could have been turned 4 or more times would require at least 3 hostesses. There could have been a constant flow of patrons being lead to tables while another hostess helps put together or separate tables to set them to the right size, while the hostess/owner/manager was supervising the process and managing the waiting list.

Service

Upon being seated, our table was greeted by one of the waitstaff very quickly. I believe it is important that guests be at least greeted within the first 30 seconds of being seated. Mission accomplished. That server was taking care of another section, but the greeting acknowledged us and let us know someone would be with us shortly. Our server took 2 or 3 minutes to make it to our table, but on a very busy day that is acceptable, though not preferable. The server took our drink orders which included water and a couple bloody marys. She put our drink order into the POS to send to the bar, then went after the waters. The waters took longer than needed to get to the table, but not unacceptably long. However, the bloody marys didn’t come back on the first trip with the waters. It took more than 5 minutes to receive the bloody marys.

During the meal, the server returned to the table twice to clear plates and ask about needs and another time to refill beverages. A manager also cleared plates one time. This many trips to our table did provide the necessary visits to provide good service, however the server neglected to refill the coffee for one of the guests. Though this level of service wasn’t “bad”, it wasn’t impressive. My wife perceived this as the server not considering to refill her coffee. While the server did ask if we needed anything on a prior visit, a better trained server would ask specifically if the coffee needed refilled, or better yet would have just made rounds with a coffee pot and topped off every coffee cup in the section or even the whole dining room. EVEN better yet, the restaurant could have staffed bus persons to refill coffee, tea and water, in addition to clearing and resetting tables to allow for faster seating. There seemed to be enough servers staffed in the dining room, but no bus persons at all.

Here are some changes I would suggest to Waxy O’Shea’s to improve their service for future Mother’s Days and other busy days. I suggest having two bus persons in addition to the two additional hostesses. Between the bus staff clearing and resetting tables and the hostess staff seating customers quicker, Waxy O’Shea’s could have processed dozens more customers. Using bus staff to also refill teas, coffees and waters would not only increase the level of service and improve customer’s perceptions of service, but it would also allow servers more time to suggest, sell and replenish cocktails. Cocktail service could have been started at the reception area. If the bar is properly staffed and set up for speedy service, the cocktail sales on the day could have likely doubled. Another suggestion would be to set up smaller service stations through the dining room where water and tea pitchers could be kept for quick access. They could also keep a coffee burner on those stations for quick access to coffee. With just a tray jack, tray stand and a table cloth, you can create a very effective service station. One more step I would take would be to prefill glasses with water and ice and have them at the ready to set down as soon as the hostess knows how many patrons will be at a table. When the table is being cleared, a hostess can convey to the bus person that the table needs to be set up for “x” number of guests. When the guests arrive, their waters are waiting and the server can concentrate on selling them add-on beverages like tea, coffee and cocktails.

In all, I think the service at Waxy O’Shea’s was acceptable for a busy day, but “acceptable” should never be good enough. If you want to earn a great reputation, you need exceptional, not acceptable service.

Food

As far as quality goes, everyone at our table was pleased with the food offered at Waxy O’Shea’s Mother’s Day brunch buffet. Most their food, if not all, is made from scratch and well seasoned. The biscuits were light and fluffy and the prime rib was tender.

What I would have improved upon from a food perspective at Waxy O’Shea’s was the presentation of the buffet. The buffet was simply chafers lined up on a table. The salads were in several different types of bowls crammed together on a 4-top. The omelet station was an absolute mess by 11:00 am. I can only imagine what it looked like by the time brunch was over. The prime rib carving station was just as messy. The rib was being carved on a cutting board set inside a sheet pan, with tin foil covering the exposed rib to keep it from getting cold. Visually, the buffet was a disaster.

The first thing I would have done to improve the perception of the food would be to garnish the pans and bowls of food. Creative use of herbs, lettuces, colorful vegetables and fruits can do a lot to enhance the appearance of a pan of food with very little cost.

The next thing to do would be to have their carving and omelet stations moved to a different location. It’s hard to describe a restaurant layout on a blog, but the important thing to convey about the buffet layout is that the carving station and omelet stations were positioned beside the reception area on the opposite side of the area from the dining room. This drove much of the traffic to the stations through the guests waiting at the front of the restaurant. While I didn’t see any major occurrences from our table or while we were at the reception waiting for a table, there was a lot of cross traffic that could have resulted in a spilled and/or broken plate, stains on customers or even a slip and fall accident. Any of these things can pull needed staff and attention from the dining room and affect service and the customer’s experiences. The main part of the buffet was set along a wall inside the bar. A better place for the carving and omelet stations would have been anywhere inside the same room. Tables and seats could have been moved and recovered in the area where the stations were. The flow of the buffet would have been much improved and a lot of risk of potential accidents could have been avoided.

Along with moving the buffet, the overall aesthetic appearance of the buffet could have used a “woman’s touch”, or at least the touch of a create man. Chafers can be elevated slightly to give the appearance of levels. A nice centerpiece can be placed on the table with some flowers in in. Other decorations such as colored beads, fresh flowers, lemon leaf, leather leaf, ribbons or different colored linens can be used to fill space between chafers and liven up the appearance. The salad presentation could be spruced up with some attractive bowls and creative garnishing, different levels and the same decorations. I would also suggest to delegate the constant cleaning of the buffet to one kitchen staff member. This person should have a wet rag at all times to wipe off the excess food being spilled onto the table cloth. Messy spills can then be covered with clean napkins of the same color.

The appearance of a buffet can have a dramatic affect on the perception of the food by the customers. Great food on a nasty buffet suddenly becomes mediocre food. Mediocre food on a beautiful buffet becomes great food. Imagine what kind of impression great food on a beautiful buffet can make.

Summary

The lesson to be learned by this review is not to leave money on the table. With better staffing, a more guest friendly reception, quicker seating, faster bar service and wait staff more focused on selling “extras”, Waxy O’Shea’s could likely have increased their Mother’s Day sales by $2000.

If they take the extra step and improve the look of their buffet, they could move their price from the bargain $14.99 we were charged, up to $25 per person which is still less than other “nice” buffets they are competing against for customers. If they can pump through 400 customers on Mother’s Day with efficient systems, that extra $10 per customer could gross them an additional $4000 in revenue.

Done my way, their brunch could have easily yielded $6,000 more in sales while pleasing more people and earning more repeat business than how it was done. Take what I have observed at Waxy O’Shea’s and apply it to your big brunch days. Don’t forget that days of “guaranteed” traffic like Mother’s Day are a prime opportunity to build your customer database with names you could turn into regulars.

Brandon O’Dell
O’Dell Restaurant Consulting
www.bodellconsulting.com
blog.bodellconsulting.com
brandon@bodellconsulting.com
(888) 571-9068

How do you control food and liquor costs?

This is probably the most often asked question by restaurant owners, managers and chefs. If you are smart enough to be calculating your actual food and liquor costs by performing a physical inventory, then you are half way there.

This article will discuss a very important part of controlling food and liquor costs, one that most restaurants do not do. To many of you, this will be new information. To many others, this is something you’ve heard myself and others talk about, but have never known how to actually perform the task. This article is about ideal costs, why they’re important, how to calculate them and what to do with the information.

What are ideal costs?

Ideal costs are the dollars that the product you’ve sold should have cost you to sell. They tell you that if you’ve sold 20 hamburgers and 10 steaks, that it should have cost you “x” amount of dollars.

Why are ideal costs important?

Ideal costs are important because they give you a scale to measure your actual food costs against. When you perform a physical inventory at the beginning of a period and calculate it’s value, add your purchases for the period, then subtract the value of your physical inventory for the end of the period, you are calculating your actual costs. This is the amount of dollars the food you sold during that period actually cost you to sell. This number is imperative to know if you want to control your product costs. However, most operators make the mistake of using this number all by itself to determine if they have cost problems. They only compare it against a budgeted cost percentage. With only doing this, there is absolutely no way to know if your actual cost is good or bad, only that it is higher or lower than some arbitrary budget number. It’s relativity to the budgeted number does you no good because your budget number does not take into account your sales mix. If you set your budgeted food cost for example, at 35%, and your actual cost is 40%, many chefs/managers/operators will assume there is a problem with the costs. The error with this assumption is that a simple change in your sales mix could have created this variance, and there may be absolutely no problem with waste, theft or any other issue. As a matter of fact, what you’ve experienced could be a desirable situation where you’ve sold a higher number of high cost percentage, high gross profit menu items during that period. This would cause your actual food cost to be higher, but it will also drive your profit higher, creating a situation where you might actually reprimand your staff for doing something good! After all, you’d rather sell 5 steaks that cost $10 and sell for $20 ($50 gross profit) than you would 5 hamburgers that cost $2 and sell for $8 ($30 gross profit), wouldn’t you?

How do you calculate ideal costs?

To calculate ideal costs, you need to know how much your menu items cost to make, whether they are food items, liquor drinks or beer (luckily the recipe for a bottle of Bud is pretty easy to cost out). This requires that you make recipes for all your food items, and calculate costs per pour for all your liquor and tap beer. Bottle beer costs what you buy it for. If you know how, liquor and beer costs can be calculated right in your inventory spreadsheets. I have spreadsheets that make these calculations automatically when you enter in bottle and keg costs, in addition to pour sizes. Food items should have a recipe spreadsheet created for each of them. To make recipe calculation easier, you can link recipe spreadsheets to your inventory spreadsheets which will update your costs as you update your inventory prices. If you don’t know how, just do the math by hand and update your recipe costs at least every six months, or you can email me at brandon@bodellconsulting.com to help you.

Once you know what every item you sell costs you, you have to track how many of each item you sell. I suggest using a spreadsheet to track these numbers to keep things organized. When you know how much of each item you sold for a period, and you know how much each of those items cost you to sell, you can multiply those two numbers together to come up with an ideal cost for those items sold. This is what those items should have cost you to sell.

What do you do with all this information?

When you calculate your ideal costs for a period, and you also have performed a physical inventory and calculated an actual cost for the same period, you have the information to truly control your product costs. Convert your ideal costs to a cost percentage by dividing your ideal cost by your sales for the period. Convert your actual costs to a cost percentage by dividing your actual cost by your sales for the period. Compare these two percentages. There should be no more than a 1.5% difference between the two. The smaller the better. If you have a larger variance, you know that you have product getting wasted or stolen, unless there is an error in your calculations. Without using ideal costs to compare actual costs to, you may think there is waste or theft when there isn’t.

 

Comparing ideal and actual costs is an incredibly powerful cost control tool for your business. You can learn to know when you have a problem, or when you just may need to raise prices.

Not every operator, chef or manager has the ability to create the spreadsheets necessary to calculate ideal costs. To save you time and provide you with a cost control tool that can save you thousands of dollars, I’ve already created this tool. You can visit my webstore at http://www.bodellconsulting.com/webstore.html to find a downloadable file with spreadsheets for tracking your sales by item and calculating not only your ideal food costs, but also your ideal liquor, beer and tobacco costs. If you need help setting up your spreadsheets, you can reach Brandon O’Dell at 1-888-571-9068 to purchase telephone consultations.

Spreadsheets for calculating ideal food, liquor, beer and tobacco costs 

If you would like to purchase the Ideal Food, Alcohol and Tobacco Tracking Spreadsheets directly, just follow this link. We process payments through Paypal. If you do not have a Paypal account, simply follow the “continue” link next to the credit card icons on the bottom left of the page:

Brandon O’Dell
O’Dell Restaurant Consulting
www.bodellconsulting.com
1-888-571-9068
brandon@bodellconsulting.com