Restaurant Success Story: Creative Compensation In Your Restaurant

I was just reading a reading a great compensation article from Greg McGuire and the The Back Burner Blog and wanted to add in my two cents from a member I recently spoke with.

The Back Story
One of my coaching members was looking to reduce payroll.  He had done a lot this year to increase sales and manage costs. He knew if he could shave a couple points on payroll and more importantly get his payroll to the proper level it would make a big difference for him and the future growth of his restaurants. Evidently,  after years of not monitoring it and managers giving raises out of his now established pay increase guidelines his payroll was out of whack.

Details on his reduction plan
In this case his restaurant is fast casual and does counter service at some very high volumes.  He accepts tips if the guests put them on the credit card slip but he does not have a “Tip Jar” actually he has always been against it.  We talked about what a reduction in payroll would look like and it was significant.  Also the unsolicited credit card tips were significant, and the cashiers were taking it for themselves.  He decided that changing his tip policy but in a creative way could work to bring in more for his staff, thus justifying him reducing pay by 10%.

How He Managed It
First he wrangled everyone together for a “attention to detail / State of the Restaurant Address”.  He talked about successes, the great job they all do, the opportunities for improvements, the increases in sales for the year, the increases in cost for the year then he dove tailed into a Cost by Category discussion.  First Food Cost, then Labor.  He discussed the management of time and sales by hour was effective but payroll was the big economic hang up.  He mentioned that if the store did not figure out how to creatively reduce cost and suggestions were welcome that salary reduction were an option.  You can image what the reaction was.  Everyone was a buzz for a day or two, but he did not immediately cut salaries.  He allowed for their input and a good many suggestions came up to help the restaurant improve, but they were mostly longer range plans then he was looking for.

After a conversation with me we put our creative tip plan in place – Solicit tips but do it in a non soliciting way.  Here is what we came up “Gas Money for the Crew”.  We even came up with a neat way to display it.  He his new tip capturing device out (before he reduced any salaries).  He wanted to see if he could prove a point.

What was the Point?
He wanted to see if he could have his patrons generate the difference in his salry reduction and have a net zero effect on his staff.  Do you think it could happen?

What actually happened
He found that people would throw money in his bucket.  Was it enough?  At this early stage it seems like it will be a straight wash, if not a win for his employees.  Actually the tips have averaged over $1 per person per hour.  If he reduced each member of his hourly staff by $1 it would be a wash, in reality they would win.  They would make the same and have some cash in there pockets.

He did reduce salaries
This might be the toughest part of the whole thing but he handles it like a champ!  After his initial findings he did reduce salaries by 10% which brought the majority of folks down about a dollar.  Any new hires, hired at the proper salary guidelines, or folks close to minimum wage he did not reduce.

He sat each person down with the manager of each restaurant and had a candid conversation about what he was doing, their performance and individual expectations and improvements.  He also guaranteed that for the initial 2 weeks he would monitor the tips and make sure they were at their previous pay (salary+Tips= past pay).  He agreed to make up the difference during this period if there was a short fall.

What does he expect
He has already seen a HUGE boost in service and attention to the restaurant as a whole.  His sincerity must have paid off and his people recognize that the service they deliver will effect the business and them directly. His people understand that they may not get a tip today from past guests not accustomed to tipping, but once they blow them away with service they will know the next time that the tip jar is there and they can reward great service.

He expects the tips to improve and create a situation that actually gives each of his people a pay raise. What a WIN WIN – Improved service and guest attention with a side of pay raise!

Please share with me your Restaurant Success Stories.  I love to hear them and would love to share them with my members and the world!

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Goal Setting – Part 1

Goal Setting – Part 1

This time of year you hear a lot about resolutions and then a ton more about goal setting. In an earlier article I spoke about making commitments as opposed to resolutions. Another key to success is to set clear well defined goals. I am a goal setter. Twice a year I set goals for myself and conduct goal setting workshops and reviews with my managers and the members of Restaurant Success System. The goal setting we all do is detailed and personal. Sure there are business implications and goals but it is not just about a list of “To-Do” items.

What Exactly Is a Goal?

A goal is a desired end toward which you direct specific effort. In this context, the goal is an exact and tangible result you want for which you are willing to invest is sweat equity in order to achieve. The amount and intensity of effort expended is always dependent on the individual, the organization, and the overall importance of the goal.

The three key elements of a goal are:
1. An accomplishment to be achieved.
2. A measurable outcome.
3. A specific date and time by which to accomplish the goal.

Therefore, a goal is a specific, measurable accomplishment to be achieved within a specific time frame. Without these elements, all you have are dreams, hopes, and good intentions that undoubtedly will remain unrealized.

Why do goals work?

• If you develop a consistent and impassioned focus on something, you’ll experience it.
• Setting a goal is acknowledging to your mind that where you are is not where you want to be. Having a goal creates positive pressure, which is necessary to move you forward.

Before you set your goals think through “the why” for each of your goals. “The why” is important – you really have to spend a good bit of time on them but also get out the costs of not achieving them. If you ever have trouble coming up with meaningful goals here are some good tactics to do before you actually narrow down your goals.

• List the specific areas of your life that are not what you want them to be
• Write down all you will gain from achieving your goals  – why you’re committed to making it a reality (press your mind to produce your own achievement).
• Write down what it will cost you not to achieve the goal (make the pain of not achieving it real).
• Write down what you would have to believe to not just set the goal but to truly achieve it.
• What would you have to believe to create the life you deserve?

“You need to set big goals, goals that inspire you and push you forward.” ~ Jonathan Munsell

Spend some time with what I have laid out above and get your mind around where you are and where you want to go and in the next day or so it will cover the construction of meaningful goals. Be sure to check back often to get the real meat of Goal Setting. Click Here for RSS Feeds

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About the author Jonathan Munsell

Jonathan Munsell truly practices what he preaches. As Founder of Amazing Brands, a North Carolina company, with two restaurant brands and a catering company he specializes in restaurant startup and growth. Jonathan is a professional speaker and conducts restaurant startup, operations, marketing and financial seminars nationwide.

His current responsibilities include Principal Operating Partner of Amazing Brands, serving on the Board of Directors for the NCRLA and fostering industry advancement with his support of restaurant operators through his Restaurant Success System.

To get a copy of his FREE REPORT – Double Your Restaurants Profits – How To Turn Any Restaurant Into A Cash Generating Machine – go to www.RestaurantGoldMine.com or go to www.RestaurantSuccessSystem.com

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Make Commitments, Not Resolutions!

Make Commitments, Not Resolutions

Commitment means to duty or pledge to something or someone, and can refer to:

• Personal commitment, interaction dominated by obligations, which is often a pledge or promise to ones’ self for personal growth. *
• Brand commitment refers to the strength of the relationship between consumers (or customers) and a particular brand (or service). *

Both are important and have a base in positive forward thinking.

Resolution – something that is resolved, resolve – to deal with successfully; clear up **

Resolution is very much like looking in the rear view mirror, it is also very one person- you.  I think of it as the old baggage we all carry around with us… every year we make a resolution to fix it. I say forget about it.  Don’t go back and fix anything. Make a commitment of change and a statement of positive action that you will complete and get those that it effects, if not just you, to commit also. Granted in many cases it is going to fix something that has not been right from the past, but it is a different focus.

Making a detailed commitment is going to fix the illness not the symptoms. When you make your commitments make them to encompass more than a single item. Example: This year I commit to building a stronger team with my management staff. A resolution might have been something like this…we don’t have enough management meetings to get everyone on the same page…I resolve to have one management meeting every week. The first week you miss one – Resolution negated…put it back on the list for next year.

Now look at the commitment aspect -”This year I commit to building a stronger team with my management staff. “Now, what actions are you going to take to ensure this? What can the other members of the team do as their part? What actions can the group take to foster this strength? What fun can we have in the process?

Do you see how a good commitment pushes the whole thing forward with positive momentum?

Words to live by: Make less commitments and keep more of them.

Not a sermon, just a thought- I hope you Enjoyed!

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About the author Jonathan Munsell

Jonathan Munsell truly practices what he preaches. As Founder of Amazing Brands, a North Carolina based company, with two restaurant brands and a catering company he specializes in restaurant startup and growth. Jonathan is a professional speaker and conducts restaurant startup, operations, marketing and financial seminars nationwide.

His current responsibilities include Principal Operating Partner of Amazing Brands, serving on the Board of Directors for the NCRLA, and fostering industry advancement with the support of restaurant operators through his Restaurant Success System.

To get a copy of his FREE REPORT ìDouble Your Restaurants Profits – How To Turn Any Restaurant Into A Cash Generating Machineî go to www.RestaurantGoldMine.com or check out www.restaurantsuccesssystem.com

**Merriam-Webster Online Dictionary†† *wikipedia.org

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How the Restaurant Business is like Running a Marathon

I was speaking to a guest and they compared us to a person running a marathon, not a sprint, a marathon. They gave me the same advice that they would give a world-class runner, and I want to share it with you:

1. Don’t waste energy – to make the long haul we have take the right actions and not waste energy foolishly.

2. Look down the road and what is coming – like any good runner we should have our heads up looking at the road ahead.  The idea here is that we can avoid any obstacles and take corrective action before we hit any bumps that might slow us down.

3. Focus on the positive - I personally have never run a marathon but I get this on the most.  A Marathon is long and hard. The reference was on staying upbeat. If you are negative and always complaining, you only get more of that. If you’re positive and look on the brighter side you will only get more of that. What you focus on expands! We all need to focus on the good.

Even though a lot of us may not be runners, I think we can take a lot away from this.

This article provided by Jonathan Munsell, Restaurant Success System

www.restaurantsuccesssystems.com
Telephone: 919.334.6800

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Inspire Your Restaurant Staff

The NRA has produced an inspirational six-minute video as a tribute to what restaurants do for our country – their impact on their employees, on careers, on communities and on the nation’s economy.

National Restaurant Association Video
America’s Restaurants: Serving Our Nation

Show this to your staff teams, business colleagues, community groups and others.
I take a lot of pride in our industry and this video shows we have a heck of a lot to be proud of!

Enjoy!
Jonathan

This article provided by Jonathan Munsell, Restaurant Success System www.restaurantsuccesssystems.com

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In order to be mahvelous, you must look mahvelous!

Once I read this quote i had to make a post based on it.

I have a buddy that always says “do not dress for the job you have, dress for the job you want.”
Willie Lee Wilson Jr.

I think this is a good time to look at how we present ourselves as a individuals and a company.† I believe that all managers need to a take a hard look in the mirror and ask the question: Am I appropriately dressed for the job I have, do I know how to dress for the job you want?

Let’s also take a hard look at our staff and make sure they are presenting the company in the correct light.† Please review with all the proper uniform, dress code and appearance standards.

“To get what you expect, you have to inspect often” – Check your appearance and your staffs everyday, every shift.

Lastly, if you walk by a person that works for you that does not have the proper appearance and you say nothing… you have accepted it. Take charge and accept nothing less than your high standards.

This article provided by Jonathan Munsell, Restaurant Success System www.restaurantsuccesssystems.com
Telephone: 919.334.6800

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Remembering You Are Your Company To Its Public

In our last TOS, Totally Outrageous Service, topic I introduced to you the five simple success guidelines for your contact with your guests.

How do you deliver TOS?

There are probably hundreds of ideas that could fit, here are just a few.

• Making sure callers do not remain on hold or ignored.
• Offering waiting guests water, coffee or juice.
• Answering questions patiently and thoughtfully.
• Guiding people through your restaurant instead of giving directions “Right this way”
• Helping the guest or caller get through to the proper person.
• Saying thank you.
• Acquiring extra knowledge that may be helpful to customers.

Now, I want to talk with you more about why and how to deliver Totally Outrageous Service, so let me introduce one of my favorite authors… Napoleon Hill and an incredibly successful book, “Think and Grow Rich.”

Think and Grow Rich was first published in 1937 after twenty years research and it continues to periodically hit the best sellers list yet today, over sixty years later. That alone tells us that this is an unusually important book. In the book Dr. Hill presents proven success principles shared and used by hundreds of history’s greatest achievers. One of those principles is the idea of going the extra mile. Dr. Hill once related a marvelous story about a little old lady entering a furniture store on a rainy day. Quickly judged by all the sales people on the floor as a non prospect, just someone escaping the rain, but one dumb, wet-behind-the ears rookie salesman, went out of his way to be courteous and helpful to the lady. Of course he failed to make a sale and was the brunt of much kidding by the seasoned old pros.

Not long after the incident billionaire Andrew Carnegie contacted the store and insisted that this particular salesman be sent to Scotland to take orders for new furnishings for the Carnegie family castle. The little old lady had been Carnegie’s mother. By going the extra mile and extending true customer service diplomacy even to a non customer this salesman became an overnight superstar.

Sure such a miracle is not all that likely to occur in your place of business. However, the habit of going the extra mile does seem to pay off in some way more often than not. It is soundly based on universal laws and concepts of success including the familiar do unto others as you would have them do unto you.

When we cross over and become clients or guests we certainly appreciate the person who goes the extra mile for us so it only makes good sense to extend that same appreciated courtesy to others.

This article provided by Jonathan Munsell, Restaurant Success System www.restaurantsuccesssystems.com
Telephone: 919.334.6800

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