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Sunday, July 10, 2011

4 Ways to Better Employee Management

In any restaurant, aside from the all-too-important FOOD, the service is one that is scrutinized a lot.

We may not be far from automating our restaurants but at this time, we still need actual human beings to serve the food and cook and buss and clean up. Therefore, our employees still play a major role. Motivating and managing your employees need to be approached in a proactive manner.

Here are Five Things to remember when dealing with employees.

1. BE FAIR.
Employees are very wary of salaries, benefits, reprimands and recognition. First, giving employees the proper salary according to legal minimum requirements. Giving employees the minimum wage at least will be less of a headache for employers. Being fair will also mean giving the same benefits and applying the same policies to all.

2. BE CONSISTENT.
One company principle that should be applied to all the sections and functions in a restaurant is CONSISTENCY. Consistent, standard taste, portion and timing of food, consistent service. Consistency also applies to employee discipline and recognition. This can be addressed with an employee handbook which should set the rules as to how employees will be dealt with when they do something right and wrong. They should be recognized for great service efforts and reprimanded accordingly for misbehavior or incorrect delivery of service.

3. BE CLEAR.
Again, this goes back to having an employee handbook which should contain everything about employee standards of conduct, uniform, disciplinary action matrix and the like.

4. BE A GOOD EXAMPLE.
Employees need to see that owners and managers "walk their talk". When they see their leaders being foul or disrespectful to guests, it will be like giving them "permission" to do the same. Owners and managers need to be great examples to their staff.

Friday, July 1, 2011

Group discount websites: How to treat them

Recently, group discount websites and even printed discount coupons are emerging as the latest in sales and marketing tools.

When you receive your proposal, you would think, "Is this a ridiculous idea or what?" You might think why should you sell your meals at 50% the price?

When you decide on your deal for any one of them, make sure to remember the following:

Think promotion not revenue. If you sell at anything around half off your price (which is what these websites are asking from restaurants), think of taking back your loss some other way. Even if it converts to volume sales for you instantly, it's still at a less ideal price for you. Treat these deals as promotional tools.

Think about your brand. These applies for any marketing activity. Think about your brand and decide evaluate the deals against it. Ensure that the deals will still be in support of the brand you are taking care of or building.

Read your contracts to the dot and make sure your company maximizes its exposure. Record your sales or other benefits out of these deals so that you have a basis the next time you are approached by another group discount websites.

Ideally, these group discount sites are great for new establishments. For the seasoned ones, they can use the deals to focus on a specific service, dish or improvement.

Tuesday, June 21, 2011

How to Handle Sponsorships

Sponsorship, especially on exchange deal is one marketing tool that is, in my opinion, the most cost-effective.

Sponsorship asked from restaurants have better retention in people's minds rather than advertisements. Sponsorships usually have the following:

  • Sponsorship requests come from company's with a targeted audience, which if matched with yours, will be a good activity.
  • Sponsorships allow you to do other things on-premise or during the event like flyering, streamer display, inclusion in tri-media, printed materials and online promotions.
  • Exchange deals for restaurants gives the customers try the food. The cost will also be lesser for restaurants because of the added profit margin on food.
If you get a letter for sponsorship, review it based on the following:
  • Are the people in this event or activity same as my target market?
  • Is it still in my budget?
  • Will my name be seen among all the other sponsors?
  • What other activities am I entitled to?
  • Will signing up for the sponsorship bring good mileage for my restaurant?
  • Is the event aligned with the company's values and principles?
Admittedly, there will be sponsorships that will be beyond your need. Example, there might be a great artist coming to Manila and you are located in another city. You may be able to afford it but being based in another city, the event might not be a good activity for you.

There will also be activities that might be congruent with your thrust or company principles. Example, you are a family restaurant and the event is for a bikini open contest. Great event but not in tandem with your values.

If you decide and if the requesting party or organizer agrees, an exchange deal is the best arrangement for restaurants. Exchange deals can be partial or full barter deals. Partial meaning you pay part in cash and part in services or product. Remember to compute the full or partial barter based on your selling or published price not on your food cost. This way, you save by actually jsut spending for food cost. There might be arrangements for discounts or gift certificates. Compute all these based on your selling price.

Other things to check:
LOGO. Make sure your logo is placed properly.
COMPANY NAME. Your company name should be spelled correctly. Sometimes, it is better to use your company name together with your logo to build your brand and at the same time, identify your company properly.
POSTERS OR STREAMERS. Ask to be able to place your streamers in the venue or to distribute flyers.

Sponsorships are great! Do not instantly shun just about any letter that comes your way. It is a great way to spread the word about your place.

Friday, June 17, 2011

Creating a Service Culture

They say restaurants have to be a great combination of great food, suitable setting and great service. I totally agree.

In this article, I would like to focus on the topic of great service.

It all starts with creating a culture of service. An owner or manager or the management team sets this. This is the kind of message they send to their employees in terms of how they want their employees to treat or attend to their customers. I am saying it should be from management because most of the time employees do emulate from their leaders.

So how exactly do you create a culture of service?

First, managers and owners should clearly define policies regarding service. It is more than knowing or setting tables right or having the trendiest menu. It is setting the "mood" you want in the restaurant. It is defining behavior you want your servers to have, the proper answers to probable questions. It is also setting the manner as to how complaints and adversities are going to be handled.

Second, managers and owners should be great service examples. When employees see managers not minding diners who have requests or treating them in a foul way, they would not have any inspiration to do otherwise. Our bosses are doing it, why will we do otherwise?

Third, encourage great service. This is done by measuring what is great service and rewarding employees when they are consistently giving it.

Fourth, listen to customers. When customers feel that what they say and think is important, it puts your restaurant in a special place in their choice of dining.

Creating a setting that encourages great service in your restaurants is absolutely important.

Sunday, June 5, 2011

Does your restaurant need a website?

Well, seems like a simple question, right? Not entirely. But yes.

So does your restaurant need a website? If you're a local restaurant with home-cooked-style meals or if you cater mostly to locals?

Being online seems to be a must these days. A website is good but while you are still contemplating on getting one, you may get a facebook or twitter page for your company for the time being.

Here are a few criteria before you go sign a web development contract.

1. BIGGER FUTURE PLANS.
If you have a plan to expand the business to a level that it would need promotions beyond your locale, then get a website.

2. MAJOR TOURISM PLAYER
If your restaurant is a major restaurant in your area, especially if your area is a popular or upcoming destination, then get a website. Tourists going to a certain destination search ahead of their travel for places to go to, restaurants and hotels online.

3. UNIQUE MENU OR RESTAURANT CONCEPT
The world is always on the lookout for a unique eat.

4. BRAND
If you are building your brand for expansion or franchise, a website is always a good tool.


Tuesday, March 22, 2011

5 Traits of a Good Restaurateur

Every restaurant needs a good manager, supervisor or owner who will give the proper direction for the staff and the whole restaurant operation as a whole.

A lot of people think that running a restaurant is easy. Just buy ingredients, cook the food, serve and keep the place tidy. I tell you, restaurant management is definitely more than that.

In my almost six years of consulting for restaurants, I have come across a lot of personalities. And here is my list of five traits for a good restaurateur.

1. CUSTOMER FIRST ABOVE ALL.
A good manager or owner puts the customer's satisfaction above all else. Naturally because the customer is the reason for the business' existence and profits. This willingness to please customers first comes in the form of offering dishes that will please them and not the owner, promotions that will entice more diners and always constantly reviewing service procedures to see where the restaurant can still improve.

2. EAGER TO LEARN
Admittedly, not all managers are trained for this industry. Like in the city I live in now, most are not even from the food or restaurant industry. A good manager takes time to learn and fully understand the operations. It is also important to understand each employees' job description.

3. KEEN TO STANDARDIZE.
Consistency is one fantastic attribute a restaurant can have. Standard portion, price, consistently good service, consistently clean environs and the like. This stems from a leader or manager who takes to heart keeping the restaurant service standardized.

4. WILLING TO GET YOUR HANDS DIRTY.
This job is not all glitz and glitter. A good manager should be ready to get his or her hands dirty: serving, taking orders, busing out, washing dishes, slicing, cooking, you never know! When a manager is ready for this part, the staff tend to have more respect for them and tend to be more relaxed.

5. GOOD LISTENER
The good listener role should apply to both customers and employees or suppliers. While a restaurant needs to entertain comments from customers, he restaurant is also dependent on employees and suppliers to do their job well. Servers or waiters are your frontliners and are the best source of feedback from customers. Listening comes from taking away your pride and just being able to accept comments in a healthy manner.

Friday, February 25, 2011

Easy Cost Control Measures you can Implement

Cost control is one task in restaurant management that needs a lot of scrutinizing. In layman's term, cost control is how you keep your expenses at a figure that does not exceed your budgeted expense. It is eliminating unnecessary spending.

Cost control is very critical especially in maintaining wise and optimal usage of ingredients. Controlling how ingredients and supplies are used in the kitchen while the restaurant is in operation is quite difficult so a lot of the cost controlling has to be done while the restaurant is off peak hours.

In my experience as a restaurant consultant, this is where a lot of restaurateurs give up easily only because it is tedious. From purchasing to releasing to inventory, it is a whole department all on its own. Admittedly so, I think that since the ingredients are the roots of the business, it has to be given a lot of attention.

Cost control is not easy to implement but here are quick changes you can do that can help:
  • EMPLOYEE EXIT CHECK. Make sure that employees' belongings are checked before they leave the premises. Check for items that could possibly be the company's properties.
  • MITIGATION CONTROL. In your stocks or inventory management, the person requesting cannot release the stocks to himself, the person who purchased cannot receive and check the receipts and the person releasing the stocks cannot do inventory.
  • REGULAR INVENTORY. Conduct an inventory of all stockrooms at least once a month specially for the purpose of getting a closing inventory. Beverages can be checked weekly or daily as well.
These are just a few things you can do to initiate cost control in your establishment.

Wednesday, February 23, 2011

The Water Situation

We all know that water has become more precious nowadays than it did 20 or 30 years ago. As a major component in this industry, the policies that govern service of water has changed.

Before, once a guest is seated, water is automatically served. When the glass gets half empty, the
waiter comes to refill the glass right away. All, of course, in the desire to give outstanding service.

Times have changed, of course. Water has become expensive, the source fragile that we have to buy bottled water as well.

When asked now about service policy on water, I would answer: Serve water if guest asks for it or if guest say yes to being served tap water.

One, guests have become extra-careful about the water they drink. A lot of people now drink only bottled or purified water. Two, water conservation is called for given the dreary forecast we are given about water scarcity. Three, there are a lot of people who are just not water drinkers.

Even if you have an abundance of water now, think about being thrifty about it. It's good for your pocket and it's good for nature. Most guests now understand our water situation.

If I may suggest these policies concerning water during service:
- Once guests are seated, ask guests for their order and ask if they'd like to be served water.
- Refill water glasses or goblets only when asked or ask guests if they want their glass refilled. I always cringe when I see a lot of water leftover in restaurants.

Saving on water does not mean holding back good service if done courteously.

Sunday, February 20, 2011

Do you know your average check?

AVERAGE CHECK is one of the figures that a restaurateur has to constantly know. Sadly, most managers don't even bother knowing these significant reports that can definitely help them in decision-making.

The Average Check is your Total Sales divided by Number of Guests.
Average Check = Total Sales
________
Number of guests

What do you need to get to your average check? A report of your total sales and a report
of your total number of guests. If you don't have a POS system, it is fine and this reporting can be done manually. Just total your sales to get your sales report. For the total number of guests, instruct your waiters to indicate number of guests for each orderslip and total those too.

Average check can be computed daily, weekly or month or even yearly. Just use the corresponding sales report and guest total for whicever time you wish. If you wish to get the average check on a daily basis, compute it using the data from the day you want to know your average guest check and so on.

The average guest check or average check tells you the average amount of money your cguests spend in your restaurant. It tells you if your computed per person rate or costing is quite congruent with what your guests actually buy.

Knowing your average guest check aids you in making the following decisions:
  • price adjustment
  • making specials
  • costing and pricing
  • creating promotions
There will be times the average check figure dips and this means you have to entice your customers to buy more. Furthermore, your guest check multiplied by your seating capacity multiplied by your turnover gives you your sales forecast. It can also allow you to play around the times you need to fill in or those times the restaurant can be made busier.

Like other restaurant reports, when you know your average guest check, it helps you think of ways to increase your sales and to attract customers.

Monday, February 14, 2011

Price increase or Portion Reduction?


This must be one hard part of being in the food business: balancing your aim to earn vis-a-vis the customer's value.

When menu review comes, a restaurateur is always faced with the hard decision of either increasing prices or reducing portion size so as to keep the price where it is now.

Owners or managers would always be afraid to increase prices since it might turn off customers. They might opt to go to another restaurant instead. On the other hand, reducing proportions is a turn-off as well. Guests often think they've been cheated upon when the portion is not the same as their last visit.

Are you in this same dilemma as well?

Before you decide, look at some factors to consider:

IS YOUR FOOD ADMIRED UPON?
Restaurants whose food is a favorite will probably have less problem incerasing prices and more problems if they reduce proportion. If your food is some kind of a market leader, it is better to increase prices as minimal as you can.

DO YOU HAVE OTHER COMPETITORS WITH BASICALLY THE SAME FOOD?
Same product lines with basically the same taste would put you in a difficult situation.

IS THE ECONOMY WHERE YOU ARE BAD?
You might think increase prices to make up for the lesser market share or reduce proportion to keep customers. Increasing price in this situation would mean making up for the lessened number of guests. Reducing proportion might turn off customers as well thus lessening your profit all the more.

Whichever you decide on, remember to be as discreet as possible. If you're increasing prices, do it in the least amount of increase you can muster. With the inflation and oil price hikes, customers tend to understand non-substantial increases.

If you reduce proportion, it's either you couple it with a price reduction as well. (Think sachet economy. A little of something.) Or if you reduce proportion, try to make it as not very obvious as you can. Reducing proportion but maintaining your price is dangerous sometimes in the food industry especially for high-end products.

Price increase or portion reduction? Weigh your options well and ask your customers about what they think. Whichever you choose, always remember to keep your customers in consideration and not just your own gains.

Friday, February 11, 2011

The Waiter of my Dreams

I was lucky to have my practicum in college in one of the best hotels in Metro Manila, EDSA Shangri-la Hotel, more than a decade ago. I am thankful I got accepted in their program. It was then that I knew why so many students want to get in their trainee program.

We were given the choice to train in ten departments. I chose two restaurant waiter assignments out of the ten. Now I am glad I did because the men and women I worked with were a great inspiration to my work now.

These waiters were great. They were well-groomed, professional and polite. They know the service standards. Most of all, they were the kinds of waiters who knew how to converse with their guests.

I am often frustrated when visiting restaurants where the waiters barely open their mouth at all or who look like they have been hauling tables just before service time.

When restaurants hire waiters, they think of waiters as people who will carry plates and trays from window to the guest's table. That is just not enough. For me, waiters should above all know the SOPs of serving food and should know their menu well. They should be goodlooking and neat. They should be able to engage in a respectful yet friendly conversation with guests. They should put the guests' comfort and satisfaction above all else.

If you own a restaurant, hire someone that can do more than carry trays. Waiters are your representatives. They should be employees you can be proud of.

Wednesday, February 9, 2011

Dining Trends in 2011

Every new year requires a review and a forecast: A review of the year gone by and a forecast for the year ahead.

2011 posts not entirely new trends from 2010. However, it would be important to take a look at how our guests would like to dine this year.

Going light
In previous years, we thought diners would start preferring healthy dishes. But we were wrong. The restaurants that chose healthy are now finding it hard to maintain the attention. Diners are preferring "light", that is, less cholesterol and fat contents but not devoid of some creaminess and savor. Going light would also mean more appropriate or, for some, smaller portions. This is to lessen the intake of more calories and to feel a little bit better about devouring sinful treats.

There might not be any increase in demand for vegetarian dishes.

Liking simple and bold flavors
There is a returning back of simple flavors. Most of them reminding diners of comfort foods, dishes made by grandma, mom's recipe and the like. Maybe comfort food would be a more apt term for this preference. At the same time, diners are more ready to try new tastes, combination of ingredients not done before.

Pleasing to the eye
Taste matters but diners are going to be intense on how their food is plated. With culinary schools, cooking shows and food magaziines abound, diners' eyes are now more demanding than ever. They want a pretty plate, an elegant plate. They want their food to look great while tasting even greater.

Personal cooking
Exclusive, by=appointment-only dining will get more attention. Diners have tried all sorts of restaurants, cuisine and the like. Now they are hungry for even more. Personal chefs and exclusive dining rooms are going to be busy.