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Sunday, March 30, 2008

Things that will make life easier for a restaurateur

If you happen to be a restaurateur who is not really trained for the business, the best solution would be to get a good restaurant manager.

However, if this is not your option and you choose to run the restaurant yourself, here are a few worksheets that can help you.

DAILY SALES REPORT
If you don't have this, you probably don't care about your business. Sales should be known everyday with a monthly and a annual summary. Why? In a month, any drastic changes in your figures should be call for action especially if the sales is lesser than the previous month or the same month last year. Of course, exceptions would be reasons like Olympics happening in your city or terrorism or some economic contractions.

MENU MONITORING OR TALLY
You should be able to tell which items are selling and which are not. This can help you strategize your menu offerings.

AVERAGE GUEST CHECK
How do you get average guest check? First and foremost, your orderslips should indicate how people there are in that order or table. Divide your total sales by the total number of guests. That is your average check. Why do you need this figure? You need it in your next menu costing. For example, given a guest orders one soup and one main dish or main dish and a dessert, the total amount of these orders should be around yoru average guest check figure. Why again? Because that is what your usual guests usually order.

FOOD COST
Do keep an eye on ingredient prices or even restaurant supplies as this will mightily affect your net income. Review your food costs twice a year. This will also avoid excessive addition of buffer on your selling price since it increases the price unnecessarily.

Monday, March 24, 2008

Food Consistency

What makes McDonald's a great company and what they have been known for is consistency. The good food that they sell all over the world come out the same wherever it is in the world.

Now, I have not worked at McDonald's to tell you how they do it.

In the restaurants that I have worked with, food inconsistency is almost always a problem. Why?
  • No standard recipes
  • No solid kitchen leader or monitoring
  • Supplier inconsistency
  • Lack of cooking staff training
That a certain menu item comes out the same, tasting the same as the last time you ordered, looks the same is a sign of good kitchen management.

When you look at some guest complaints, some of them pertain to the food smaller or lesser than the last time we ordered or the food wasn't as good as the last time.

If your restaurant wants to make a name for itself, it is not just all about good dining area designs and explosive marketing campaigns, it is also about stabilizing your kitchen. Restaurants are all about food. Therefore, at least 60% of your effort should go to improving food.

Food consistency is achieved when your kitchen crew knows how each and every menu item should look and taste when they come out of the window. I have gone to the extent of takign photos and putting them in an album where the cooks can refer to.

I have seen restaurants do it without any documentation. That is fine for the time being. But what if one of them or even your kitchen head resigns, how do you teach to a new staff or get the info from the head?

Small or big, fancy or laid back, your restaurant should aim for consistently great food everytime.

Friday, March 21, 2008

Waiter's Secret Tool

Most restaurant owners would wonder why certain menu items wouldn't sell when they absolutely think it should be selling on its own and that it's a good dish.

One problem could be be that the way the menu is arranged does not optimize exposure of each menu item. Either you have so many menu items that guests don't really get to read all of them or some design flaw.

If you cannot afford a menu review and redesign yet, one sure way to give due promotion to your slow selling items is by suggestive selling. Definitely, this will be done by waiters or the anybody attending to the dining area. Another means is by just putting a featured menu item of the month on table tops or attached to menu books.

Suggestive selling will give your waiters the task of suggesting menu items which would be complementing a guest's meal or pushing a slow-selling item.

Be mindful of the following when doing suggestive selling:
  1. Do not sugest more than twice. Suggesting more than two items might irritate guests already.
  2. Suggest items that would complement or complete a guest's orders like soup if they have only ordered main dish and dessert if they are done with their main courses.
  3. Let waiters know the taste of what they are selling. Nothing will be more embarassing than not to be able to describe a dish with conviction.
  4. Sometimes, it's good to give guests an incentive for ordering your menu feature.
Again, good communication skills come to play here for the waiters. It is important to monitor your menu tally regularly to see which are selling and which are not. This would also help you control inventory.

Monday, March 17, 2008

Motivating Employees

Running a restaurant well needs waiters and kitchen staff who are happy about their work and challenged to please guests. Otherwise, it will be a pool of people who will be difficult to coach, rude to guests and who wouldn't mind if a guest is happy or not.

Aside from giving the salary due to your employees, minimum wage that is, what are the other things you can do to motivate your employees?

One major thing to do is talking to an employee and making clear what is needed of them in their jobs. When you have a new hire, make sure he or she is fully oriented about the house rules, what will be his or her benefits and his or her role in the restaurant. The concept and work precess should be explained to them so that they know what is their significance in the operations.

If your budget permits, give employee meals and uniforms for free. Employee meals because it's a restaurant. If he's serving food to people, his tummy should not be empty. At the least, give a discount for employee meals. Uniform because that is an owner's responsibility as part of the consistency and concept of the restaurant.

Service charge? I will suggest it if your pricing permits. You see, you have to add it to your price. At the most, if you do not have service charge, make sure that tips are collected and kept in a safe place and divided equally.

Communicate reminders through meetings and bulletin boards so that employees are up to date of new policies and restaurant promotions. The purpose is to make employees feel involved in the success of the restaurant.

Lastly, conduct employee performance review at least once a year to correct wrong doings and to praise good jobs.

Monday, March 10, 2008

How important is menu standardization?

I have written briefly about Recipe standards in my immediate previous post.

Most restaurants that I work with have kitchen staff who were not really educated for their jobs. Most of them found cooking to be a career after they finished school. Some did not even get to college. They are talented people who really have the taste and the capability to cook delicious meals.

So one of my big problems would always be discovering that the kitchen does not have standard recipes for the items in the menu. Now, you would say, well then make one for them or tell them to make one.

Believe me, it's not as easy as you think it would be.

In my recent consultancy, the kitchen head told me he has taught it to all the kitchen staff and that they are all agreed on how to cook the dishes. That if they do resign, they will make sure that they have taught all they ought to teach to their staff. Heaven help me.

I will always insist on standard recipes, including instructions and standard garnish/presentation guide. One major reason is cost control. Another would be consistency of the food as they come out of the kitchen.

The argument would stop when waiters would say that the food does not come out the same way or when the accountant complains of high food costs.

Ideally, standard recipes are the basis for any move in food cost control. If at any rate, the cost of goods increase dramatically, everybody goes back to the standard recipes. Can they tweak the portion? Is there an ingredient that can be replaced? Or is there a need to recompute the prices altogether? Whichever way, the standard recipes will be the tool. If you don't have a standard recipe, you have to re-list all your ingredients and recompute all over again.

Standard recipes are make inventory monitoring easier. If your system is automated, you still need standard recipes. If the restaurant sold 10 orders of beef steak which uses up 300 grams of beef tenderloin, then your inventory release should say 3 kilos of beef tenderloin. If the release says 3 kilos, 9 orders were sold and there is no more beef tenderloin left, you have to start looking for those missing 300 grams. Either the beef steaks were over-portioned or went to some kitchen staff's tummy.

In summary, standard recipes should be a reference for cost control and consistency. Before a restaurant opens, the recipes should have been standardized. As operation goes, they should be constantly reviewed.

Tuesday, March 4, 2008

Restaurant Behind-the-Scenes

Restaurants have a lot going on beyond the dining room and before and after operating hours. Purchasing, market list, sales reports, food preparations, repairs. What guests see is the end product of a lot of hardwork.

Whenever I am signed in to look at a restaurant's operations, I always look at the following:

INVENTORY MONITORING
Do they have stock cards? Do they conduct regular physical inventory?

STANDARD RECIPES
One of the most upsetting things I discover would be when a restaurant does not have documented standard recipes in an accessible place for kitchen cooking staff to review or refer to. Standard recipes would be the root of all good and bad whichever the restaurant is heading for. At the same time, it is also the source of solutions when things do go bad. Your standard recipe will always be needed when you adjust costs or quantities or if cost cutting measures are planned.

DAILY SALES REPORT AND MENU MONITORING
Aside from knowing how much you earned that day, it is important to know what menu items are moving and which are not being sold. Your order slips or order tickets would be where these data will come from. It is also good to note number of people to determine your average check.

HOUSE RULES
Restaurants which do not have houserules tend to have a lot of employee-employer contention as there are unclear answers to most issues or concerns ranging from how they will be penalized when they do this offense or policy on taking out food. A comprehensive and concise set of company policies and penalties for offenses is a must!

FOOD COST PERCENTAGE
Before any restaurant starts to operate, it should already have set a figure for break-even point, food cost range and target sales. Otherwise, it would be like a headless chicken running around. Every financial statement reporting should indicate your food cost.

Running a restaurant is both an art and an exact science. It cannot be all taste and PR and ambience. A lot of work has to go to maintaining your food costs are sane and your inventory intact. Aside of course, from keeping all operational procedures are followed.

Saturday, March 1, 2008

Your Restaurant Online?


I believe so much in the power of the internet. From one of the newsletters I am subscribed to, it said that in the coming years, internet or online business will comprise 65% of your profit. Wouldn't it be great if your restaurant is online? When people travel to a certain destination, most of the time they check available information on the world wide web about it from hotels, restaurants, tours, places to see, museums and the like. The hotels and resorts have gotten ahead with travel websites that abound.

One of the websites I recently discovered is hotelreservations.com.

Before, if you have to book for a hotel or airline ticket, you or somebody has to go to the office of a travel agent or ticketing office or at least call to make your reservations. To get hotel discounts, you either have to know somebody connected to the hotel or travel with a group. Sometimes, it could get inconvenient having to brave through traffic or having to leave work.

Some of you might be still doing that, going to offices and booking. Some are already discovering the convenience of booking online through websites that provide for all your travelling needs and even better!

Hotelreservations.com has a wide range of destinations, a lot of hotels in key cities and grants competitive rates. The website is written in English and Spanish and soon to come, in languages and currency n your country. If you ask me, that's very customer-friendly. The rates can definitely compete with those of other travel websites. What's more, the layout of the website is not confusing, easy on the eyes and clean.

Other great things I found interesting:

  • Up to $ 100 rebate when you put in a 12-flight booking

  • Option to book online or call their toll-free number

  • Up to 70% savings on your bookings

  • Multilingual capable site

  • Destination guide for key cities all over the world

  • Wide range of travel arrangements from cruises, vacation packages, car rentals, airlines, discount clubs, condotels and more

  • Special link for Group bookings

So the next time you travel, try the site. It just might be just what you are looking for!