Archive for November, 2006

The Re-Launch!

If you didn’t already know, we just re-launched our website at RestaurantCoachingSolutions.com. The look is much fresher, cleaner and better organized so that you can find it easier as well as just flat-out use it to make better decisions about your business.

We also dropped the “GetGame!” moniker (also the GetGame.Biz url – it now redirects you to the new one!) due to the confusion surrounding the video game business and its usurpation of the term, as well as simply deciding to name our venture to correspond more specifically to what we do.

Also, the website is not full by any stretch but we will be adding pages and information every day at a feverish pitch – if you go there now, it won’t be the same 2 hours later! Over 5,000 people in over 37 countries around the world read, download and use the information in our websites to manage millions of dollars worth of food, drink and guest experience. We did not want to slow them down.

It is times like these that you are more than a little proud of the effort and the response to it, but only for a moment, lest it goeth before a fall. There are tons of people to thank for their efforts in supporting our business, but for now let me just thank you for reading, emailing, forwarding, talking, yelling, screaming, arguing, agreeing, praising and just enjoying the results.

Talk to later!
Jeffrey

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Kid’s & Your Business!

In a recent NRA poll, 55% of adults said their kids influenced their decision to dine at a table service restaurant.  47% said their kids determined which restaurant. 

It’s undeniable that children get hungry and must be fed three times a day.  Since dining alone is not an option for children; they exert tremendous influence on a family’s decision about where and what to eat. Children represent an increasingly influential segment of the dining-out market as 129 million are born in the world each year and represent 35% of the world’s total population.  Parents want to eat in peace, engage in pleasant conversation, and relax without fear that their children will be a major source of embarrassment or a nuisance to neighboring tables.  How can restaurants and their staff members help guests accomplish this difficult mission?

 

Listed below are the Top 10 initiatives you can take to make children’s dining experiences more enjoyable.

1. Seat children as quickly as possible and offer to retrieve high  chairs and/or boosters for guests when they have small children.

2. When acknowledging the family’s presence, speak to the children as well.  Understanding that kids always want to be older than their actual age and treating them as
   if they were, will always make you ‘cool’ in their eye

3. Offer children coloring sheets, crayons and balloons.

4. Speak directly to children when taking their orders.  The parents may still order for their children, but always
   look at the child and ask them what they would like to eat.

5. Offer parents with young children bread or crackers to nibble on while they wait for their food.

6. Children want to be waited on by the friendliest server.
   Try to be that server! Engage the children and show interest in their needs and what they have to say.

7. Always ask parents permission before refilling children’s drinks.

8. Speak directly to the parents when offering dessert. If you offer dessert to a child and he or she is not allowed to have it, you may cause the child to be upset which in turn is not a happy event for the parents.

9.  Make sure tables with children have plenty of extra napkins.

10. Offer departing wishes to both the parents and the children.  Tell the child your name again and to come back and see you.  Make a great impression and create miniature RAVING FANS! 

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My Latest Rant…Revisited!

My list (rant?) of the most important factors of having success in our business today - and a few things that really tick me off!

1. Hire great people! Build great teams! Only “A” & “B” Talent will do!

2. Give real-world, experienced training that is cutting edge in it’s delivery so it will stick!

3. Have great support systems in place for your staff!

4. Make everything a system! Execute the systems!

5. Fill positions, do not replace people!

6. Ask for help when you need it!

7. Execute on the integrity issues every minute of every day!

8. People first!

9. HAVE A PLAN FOR YOUR SUCCESS!

10. EXECUTE THAT PLAN!

11. Understand that you only build volume one guest at a time!

12. Do not spend so much time trying to trim costs without spending at least, an equal amount of time training your staff to sell more and serve better. Most restaurants fail when they try to “save” their way to profitability - kinda like nobody ever shrank their way to greatness!

13. Be a coach, not a boss!

14. Make your relationships work!

15. GetSmarter every day!

16. Follow up. Follow up. Follow up!

17. Measure everything that is important to your success!

18. Stop trying to motivate people and start creating a culture that can inspire them instead!

19. Make everything a product of your culture!

20. Stop treating everyone the same!

21. Face situations head on! Never vacillate!

22. Document every action and reaction!

23. Challenge behaviors that are not productive when they happen!

24. Be a blowtorch, not a candle!

25. Embrace change!

26. Realize that we are all marketers whether you want to be or not! Because it’s true that marketing is the only thing that can make you money - everything else is an expense!

27. Don’t serve your guests, give them an experience that will make them raving fans!

28. Service is a commodity.

29. Build value for your guests in their experiences with you.

30. Stop discounting yourself into the poor house!

…now for the things that really get me!

1. Operators who say that they never have enough time for themselves or family, but who refuse to hire an “operations manager” because they do not have the ability to trust in one, or the money, or both.
2. Operators who desperately need a marketing plan, business plan, operation plan, strategic plan, etc… but never seem to get around to getting it done - then wonder why success is not beating a path to their door.
3. Operators who have high turnover and blame it on “the market”, or “the economy” etc…
4. Operators who are totally reactive to circumstances.
5. Operators who treat all staff the same.
6. Operators who do not understand that if you are not able to differentiate yourself in your market, you become a price-driven commodity.
7. Operators who do not do their homework.
8. Operators who cheat, lie, steal and abuse any or all of their relationships with vendors, staff, colleagues, guests, etc…
9. Operators who, when blessed with a great sales increase, do not know where it came from.
10. Operators who, not having a days worth of experience in the industry, never ask for help.
11. Operators who, when they get in the weeds, never ask for help.
12. COMPLACENCY.
13. ARROGANCE.
14. Operators who think that nickel and diming their guests or staff, will make them rich. No one ever shrank their way to greatness…again!
15. Operators who take their staffs, guests, vendors or team for granted.
16. Operators who do not embrace change.
17. Operators who never seem to be ready for change.
18. Operators who do not have a meaningful vision of their business or their brand.
19. Operators who do not understand the importance of branding their business as the way of creating a unique selling proposition.

I’m sure there’s more to come! Stay tuned!

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The 80-20 Rule Explained

You’ve probably heard about “The 80-20” rule until you want to scream. It’s the notion that 80 percent of your results come from 20 percent of your efforts. Let’s explore the origins of that rule.
It’s called the Pareto Principle, named for the Italian economist Vilfredo Pareto. He developed a planning model about wealth distribution, and took it further. Here are some interesting 80-20 facts:

80% of revenue comes from 20% of customers
80% of profit in most companies comes from 20% of the products
80% of work absences are from 20% of the staff

This is useful information for account planning. Where are you spending 80% of your time and efforts?

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Turkey Roasting Times from the National Turkey Federation:

Not sure how long you should roast your bird? The National Turkey Federation (NFT) recommends roasting a turkey in a 325 degrees F oven until a meat thermometer indicates the internal temperature registers 180 degrees F in the thigh and 170 degrees F in the breast. Pop-up timers are helpful as a preliminary step in judging the correct temperature, but are not always accurate. A meat thermometer is the best authority to determine doneness.

A shallow roasting pan should be used so oven air can flow completely around the turkey. Pans with sides higher than 1 inch will shield the thickest part of the turkey thighs from the heat, and the thighs will not cook evenly. For easier clean-up, add 1/2 cup of water to the bottom of the pan.

If you stuff your bird, do so immediately before you place it in the oven. The center of the stuffing must register 160 to 165 degrees F before removing the turkey from the oven. If you do not stuff your turkey, 2 cups of coarsely chopped celery, onion and carrots in the cavity will enhance the fragrance and add to the flavor of the pan juices.

The roasting times shown on the chart below reflect the shorter cooking times of the turkeys produced today, which take less time to cook than in the past because new turkey breeds produce a higher proportion of white meat. Since white meat cooks faster than dark meat, care should be taken to follow these guidelines to ensure a moist turkey. Use roasting times as a planning guide only; use a thermometer to determine actual doneness.

Source: National Turkey Federation

 

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Bar Promotions That Work

At the inaugural night of The Toledo show, Stella Artois Beer and Tuaca Liquor companies contributed as beverage sponsors for the event.

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Only 2% of Consumers Will Eat Thanksgiving at Restaurants

CHICAGO — Technomic said consumers are evenly split on where they plan to eat Thanksgiving dinner this year.According to a recent consumer study, 41 percent will enjoy the annual feast at home, whereas 43 percent will dine at a relative’s house. Only 4 percent will have Thanksgiving dinner at a friend’s home and 2 percent will go to a restaurant. Five percent aren’t making any Thanksgiving dinner plans.

Even though roughly half the respondents say they always have a traditional baked turkey dinner, nontraditional meals are also popular. Thirty-seven percent of Thanksgiving diners say they’ve tried baked ham, while 15 percent have had grilled turkey and 19 percent have dined on turkey or ham cooked in other non-traditional ways. Other meats, such as beef, veal pork or chicken have made it to the table for 17 percent of consumers. Fewer diners reported having meals that strayed even further from the traditional Thanksgiving fare, including wild game (4 percent), Chinese food (5 percent), other ethnic cuisine (6 percent), fresh fish (4 percent) and all-vegetarian (3 percent).

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Small business owners can’t find quick cash, survey says

ATLANTA — A new survey shows small business owners are unsure where to turn for fast access to capital. This leads many owners, restaurateurs included, to file for bankruptcy prematurely.

According to a small business owners study commissioned by New York-based Capital Access Network (CAN), 79 percent of small businesses are undercapitalized and as many as 90 percent run the risk of filing bankruptcy or shutting down in the first five years.

Other findings include:

• 80 percent of small businesses have a greater need for funding today than they did one year ago.
• 82 percent of small businesses believe it is more difficult to get financing today than one year ago.
• The majority of respondents (56 percent) also indicated that they would consider starting a business in a new industry if they had access to more funding options, helping fuel the American economy.
• More than 55 percent of small business owners do not believe loans from friends or family are appealing.

• More than 45 percent of small business owners do not believe home equity lines or second mortgages are appealing.

• At least 73 percent of respondents were unaware that they can sell their future credit card sales in exchange for working capital.

• Only 6 percent had ever sold future credit card sales in order to get working capital.

• An overwhelming percentage, 92 percent, responded that they would find it appealing to have access to a financial product that could provide as much as $150K in working capital per revenue-generating location within 10 to 14 days.

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Delivery vs. Takeout

By D. Gail Fleenor

Surveys show the dining experience continues to be reshaped by consumer needs and desires. In a recent poll conducted by Technomic, Inc., consumers were asked how they would prefer to receive their takeout food. A surprising four out of ten consumers said they prefer to have food delivered, tying the number opting for carry out. Additionally, almost half of all women surveyed preferred home delivery. Consider those numbers in the context of a social climate that no longer views dining out as a special occasion and the opportunity for growth in quick-service delivery is apparent, provided the restaurant can generate a steady stream of orders.

But before buying car toppers and hiring drivers, operators should take into account all that is involved in offering home delivery—and take a look at their current operation model.

Take menu for example. Some foods lend themselves to delivery. Others, not so much. Cold sandwiches, salads with dressing on the side, and wrapped items like burritos are the kind of dishes that travel best, according to Robert L. Sandelman, CEO of California-based Sandelman & Associates. What doesn’t travel well, he says, is quick-service’s most popular item, french fries. “Fries get soggy and lose heat quickly,” Sandelman says. “The second half is less good than the first half. It’s the same with burgers; they cool quickly and the buns can get soggy due to grease or condiments.”

For a burger chain trying to get into delivery, that means the right packaging is critical for a successful program. When it comes to delivery, packaging can make or break you. More often than not it does the latter. “We need some brilliant engineers to create packaging that goes beyond holding the food without spilling, packaging that separates and then allows for mixing of ingredient, that can be easily labeled and doesn’t require an environmental heart attack for the end user who has to dispose of all of it,” says Dan Simons, a partner in foodservice consultancy Vucurevich/Simons Advisory Group.

Then there is the matter of additional labor. Drivers must be recruited and trained. “Answering phone calls at store level presents the conflict of higher labor costs versus poor service,” Simons says. “Who should you ignore: the customer at the counter or the ringing phone? Also, who checks the order before the delivery person picks it up for delivery? Other questions to consider include is there space to package and hold orders for delivery and is the space visible to dine-in customers?” A new point-of-sale system designed for delivery might also be needed.

In weighing all factors, don’t forget to consider the all-important bottom line. Deliveries should be targeted to large groups of people yielding a larger ticket, according to Sandelman. “Delivering one sandwich wouldn’t be efficient. Once you tack on a delivery charge, the customer might pay more for the delivery than for the item.” He also points out that few delivery orders include drinks, a high-profit item for quick-serves.

Still, some of the biggest names in quick-service have considered or experimented with delivery. McDonald’s tested programs in the United States and Great Britain. KFC and Subway franchisees can choose to deliver in some parts of the country. Some Boston Market stores were doing delivery through July 2006 but general delivery has since been phased out, says Kelly Heisler, spokesperson for the Golden, Colorado–based company. “We phased out delivery to focus on our restaurants, but we may consider adding delivery services in the future,” she explains.

Other concepts continue to operate successful programs.

Steak-Out Char-Broiled Delivery celebrated its 20th anniversary this year. It began as the dream of a workaholic who ate in his office and was tired of pizza and Chinese. While customers are encouraged to eat in if they like, delivery is the brand’s forte. The company has 70 locations (3 company stores and the rest franchises) in 18 states, mainly in the southeastern region of the U.S. The average ticket is $8–$10 at lunch, $12–$14 at dinner. Gas prices have driven some locations to charge a small delivery fee.

New items are constantly being added to a broad menu that includes steaks, grilled chicken, sandwiches, seafood, salads, and desserts, However, says Tim Myers, vice president of marketing for the Norcross, Georgia–based company, you will never see Steak-Out doing fried foods such as the oft-requested french fries. “Fried foods just don’t travel well. We do either baked or grilled,” he says. “Everything we do is designed around delivery.”

To that end, Steak-Out uses Genpak Styrofoam delivery packages and wraps items individually so that dishes travel well and stay warm. Cold food is separately bagged and never touches hot food. Lettuce, tomato, and onion are packed separately from burgers. Baked potatoes are used as “hot rocks” to keep the rest of the order hot.

“We shoot to have an order to you in 30 minutes,” Myers says. “Our delivery area is a 10-minute drive time plus we allow 20 minutes to cook and get it out the door.”

Order accuracy is one of the most important factors for successful delivery, explains Myers. “At a restaurant, if you forget to put butter on the table you can still bring it out. If we forget butter when we deliver your order, we’ve ruined your meal.”

“It takes a while to build your delivery business up,” says Charo Chicken President and CEO Ray Perry. “You have to be committed to delivery. You need a separate delivery station identified in your restaurant with its own point-of-sale system and phone. Everything must be assembled fast and efficiently and then out the door in a reasonable time.”

Charo Chicken, based in Huntington Beach, California, is a 26-unit chain. Its menu includes fire-grilled chicken, Mexican dishes, salads, baked potatoes, and sandwiches. The chain offers delivery within a three-mile radius with a minimum order of $10. Delivery fees range from $1.89–$2.50. The average delivery check is a little over $25.

“I see the whole segment of food delivered to the home growing, particularly here in California. When you’ve got two in the family working, trying to pick up the kids and get home after work, they’re all hungry and they don’t want to go out—they want food delivered,” Perry says.

With 24 flavors of wings, a variety of sandwiches, salads, appetizers, and kids’ meals, Planet Wings’ large menu sets it apart among delivery restaurants, says Bruce Downie, chief operating officer of the Newburg, New York–based chain. Founded by Franco Fidanza in 1995, Planet Wings began life as a pizza restaurant. Competition in pizza delivery drove Fidanza to try selling wings at Super Bowl time. When his wing sales eclipsed his pizza numbers, the first Planet Wings soon opened.

“In the beginning, the biggest challenge was getting deliveries out and complete due to our extensive menu,” Downie says. Planet Wings now has a double-check system for accuracy. Once the cooks put the food in containers, a dispatch person physically looks into every container before the driver takes the order out.

“Most products deliver well. We do burgers and fries but fries are a challenge. We use a seasoned curly fry because it holds up better for delivery,” Downie says.

Planet Wings uses insulated bags for metro locations and heated bags at rural sites where distances are longer. Delivery radius depends upon the market. “Drivers take a couple of deliveries with them when they go. Our goal is delivery in 12–15 minutes from the time the food leaves the store—most deliveries are quicker,” he says. An average individual check for Planet Wings runs between $10–12 (slightly higher in New York), Downie says. A delivery charge is not mandatory and varies by location or store.

“Good delivery service doesn’t happen by chance,” Downie says. “It’s as critical as serving someone at a table. It’s easy to see if customers are happy and your staff is doing well inside a restaurant. In delivery, drivers are taking food to customers, and you have no idea about the interaction.” Planet Wings gives drivers several weeks of training with instruction in politeness and how to talk to customers. “But it’s a challenge to keep qualified drivers out there,” Downie admits. “Recruiting is hard, and you always have a percentage that are inexperienced.”

Planet Wings is building a store/training facility in Richmond, Virginia, where franchisees will be required to attend two weeks of training. Downie sees “monumental” growth for delivery across all food sectors in the future. “More people don’t want to go out now because of high gas prices. They love the convenience of delivery,” he says.

 

 

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Restaurant gift card sales poised to exceed $18 billion

NEEDHAM, Mass. — With the holidays fast approaching, ’tis the season for gift cards. This relatively new segment of the U.S. payments industry continues to show rapid growth — particularly in the area of bank-issued or “universal” gift cards that can be used beyond just a single retailer. Yet in some cases, gift cards appear to make better presents for retailers and card issuers than the actual giver or receiver.

Research and advisory firm, TowerGroup, expects gift cards to be a major hit again this holiday season. Combined gift card sales in the United States will exceed $80 billion in 2006, a more than 20 percent increase over their 2005 level. The group said the restaurant industry will achieve $18 billion in sales.

But there are still some major issues surrounding gift cards, the organization said.

While retailers do not generate revenue until a card is either used or permitted to be declared as dormant, they do receive a “free float” on unused cards.

TowerGroup said that the unused value on these cards, often referred to as “breakage” in the payments industry, has a bigger impact on consumers than the combined total of both debit and credit card fraud.

 

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