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3/19/2015
1
Ordinary toExtraordinary
How to Transform Your Restaurant Into a World Class Business
Have you ever had an “extraordinary” restaurant
experience?
ORDINARY VS. EXTRAORDINARYORDINARY VS. EXTRAORDINARY
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What made it “extraordinary”?
ORDINARY VS. EXTRAORDINARYORDINARY VS. EXTRAORDINARY
What did you do after having that extraordinary experience?
1. Did you tell anyone?
ORDINARY VS. EXTRAORDINARYORDINARY VS. EXTRAORDINARY
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THE GUEST EXPERIENCETHE GUEST EXPERIENCE
92% of customers worldwide trust recommendations more than any other form of advertising (up from
74% in 2007).
Source: WOMMA Survey
What did you do after having that extraordinary experience?
1. Did you tell anyone?
2. Did you return?
ORDINARY VS. EXTRAORDINARYORDINARY VS. EXTRAORDINARY
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THE GUEST EXPERIENCETHE GUEST EXPERIENCE
High Positive
So So Little to None
None Negative
Extraordinary
Bad
Good / Average
Loyalty WOM
KEY POINTKEY POINT
The two things you want most to happen after a guest leaves, loyalty and positive WOM, depends entirely on . . .
Your “Guest Experience”
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WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Financial Results
QUESTIONQUESTION
Have you ever had an extraordinary experience more
than once
. . . at the SAME RESTAURANT?
How did they do it?
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CREATING EXTRAORDINARYEXPERIENCES REQUIRESCREATING EXTRAORDINARYEXPERIENCES REQUIRES
Effective Systems
Good People
Effective Systems
Good People
CREATING EXTRAORDINARYEXPERIENCES REQUIRESCREATING EXTRAORDINARYEXPERIENCES REQUIRES
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3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS
1. Find out what they want
2. Go & get it
3. Give it to them
Food, beverage, atmosphere, look, service style, price, cleanliness, speed
Location, facility, design, ambience, menu, recipes, quality, staff
Execution, consistency, training, timing, service, hospitality
Startup
GUESTEXPERIENCE
TO CREATE EXTRAORDINARYEXPERIENCESTO CREATE EXTRAORDINARYEXPERIENCES
Effective Systems
Good People3. Give it to themExecution, systems, consistency, training, service, hospitality
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WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Financial Results
WHAT DRIVES YOUR GUEST EXPERIENCE?WHAT DRIVES YOUR GUEST EXPERIENCE?
Your People
Service
Speed/Timing
Hospitality
ConsistencyFood & Beverage
Cleanliness
Complaints
Your PEOPLE Drive Your
Guest Experience
Accuracy
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WHAT DRIVES YOUR GUEST EXPERIENCE?WHAT DRIVES YOUR GUEST EXPERIENCE?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Your People
SO WHAT DRIVES YOUR PEOPLE?SO WHAT DRIVES YOUR PEOPLE?
Your Culture
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WHAT IS CULTURE?WHAT IS CULTURE?
Culture is how your people . . .
Culture determines what it’s like to work in your restaurant & how well your people perform.
Think and Act
CULTURECULTURE
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WHAT HAPPENED?WHAT HAPPENED?
Did they lose their ability to do the job?
Was it a hiring mistake?
WHAT HAPPENED?WHAT HAPPENED?
Was it due to a negative culture?
Minimal training
Nobody cared
No feedbackNo recognition
Unfriendly
Low standards
Little support
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CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE
Weak Culture ‐
• Cover your tail
• Blaming others
• “It’s not my job”
• Mediocrity
• Criticism
• Distrust
• Excuses
• Whining & complaining
Indifferent people cannot deliver extraordinary guest experiences
Indifference
SURVEY: WHY CUSTOMERS QUITSURVEY: WHY CUSTOMERS QUIT
• 3% move away
• 5% develop other relationships
• 9% leave for competitive reasons
• 14% are dissatisfied with the product or service
• 68% leave due to a perceived attitude of indifference of an employee
Indifferent employees may be silently killing your restaurant
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CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE
• Enthusiasm
• Cooperation
• Smiles
• Teamwork
• “What else can I do?”
• Flexibility
• Respect
• Accountability
Strong Culture ‐
Engagement
EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
Kingsport, TN
Austin, TX New York, NY
Ann Arbor, MI
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EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
26 QSR restaurants based in Kingsport, TN
Started in 1956
Drive thru only
1,100 square feet
Awarded the Malcolm Baldrige National Quality Award in 2001
EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
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EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
EXTRAORDINARY RESULTS! EXTRAORDINARY RESULTS!
98% customer satisfaction
no specials or coupons
service times 4 times faster than top competitor
4 times repeat business than closest competitor
1 complaint per 3,500 orders (10 times better)
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EXTRAORDINARY RESULTS!EXTRAORDINARY RESULTS!
Average $1,700,000 annual sales per unit
Over $1,500 sales per foot!
Top grossing restaurant does $3,400,000 (over $3,000 PSF)
EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
4 franchised BBQ restaurants in Austin, TX
3 times the sales of other Rudy’s
Breakfast alone equals what an average McDonald’s does all day
4 fast casual burger restaurants in Austin, TX
$3,500,000 to $4,000,000
Approximately 3,000 square feet
K&N Management – Austin, Texas
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EXTRAORDINARY RESULTS!EXTRAORDINARY RESULTS!
“Our sales at Rudy’s and Mighty Fine Burgers stores are now two‐and‐a‐half times what they were when we started [working with Pal’s].”
Ken Shiller, Co‐Owner
UNION SQUAREHOSPITALITY GROUP
UNION SQUAREHOSPITALITY GROUP
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UNION SQUAREHOSPITALITY GROUP
UNION SQUAREHOSPITALITY GROUP
Opened 1985
Opened 1994
UNION SQUAREHOSPITALITY GROUP
UNION SQUAREHOSPITALITY GROUP
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MOST POPULAR RESTAURANTSIN NEW YORK CITYMOST POPULAR RESTAURANTSIN NEW YORK CITY
#2 in 2013#1 - 9 Straight Years
UNION SQUAREHOSPITALITY GROUP
UNION SQUAREHOSPITALITY GROUP
Sales over $7,000,000!
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ZINGERMAN’S DELIZINGERMAN’S DELI
Paul & Ari
Opened 1982
Sales > $14M
ZINGERMAN’S DELIZINGERMAN’S DELI
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EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
It’s not about what you do,but rather, how you do it.
EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
“All” credit their extraordinary success to their CULTURE!
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“The biggest driving force in our restaurants in our culture.”
David McClaskey, PresidentPal’s BEI
CULTURECULTURE
“Sometimes I get that itch that maybe it’s time to step up and expand faster. But we want to make sure that we hand off all the cultural pieces to each store. I see operations that outgrow their cultures.
They can’t pass on their culture so they go from a really great concept with great people to weaker and weaker operations and people who don’t understand the origin of the culture.
We’re always asking how we can ramp up but transfer the culture to the new leaders and other team members coming into the company.”
Thom Crosby, CEOPal’s Sudden Service
CULTURECULTURE
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CULTURECULTURE
“Culture is everything!”
“Our culture gives us the tools to ride the waves, the inevitable challenges, we face in this business.”
Danny MeyerUnion Square Hospitality Group
THE POWER OF CULTURETHE POWER OF CULTURE
Union Square CafeGramercy Tavern
“I love your restaurants and the food is fantastic. But what I really love is how great
YOUR PEOPLE are.”
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WHAT DOES A STRONGCULTURE LOOK LIKE?WHAT DOES A STRONGCULTURE LOOK LIKE?
StrongCulture
Simple, Powerful Mission Statement
Clear Vision
“I Understand My Role and Purpose”
Clear Expectations
Behavior Norms Inflexible Core Values
Effective Communication
HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
RESULTS
ACTIONS
BELIEFS
Management “Do this . . .”
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How do things REALLY work around here?
What does the owner REALLY care about?
What should I REALLY look out for?
What should I REALLY be sure and NEVER do?
When the New Employee asks . . .
COMMONLY HELD BELIEFS IN YOURRESTAURANTCOMMONLY HELD BELIEFS IN YOURRESTAURANT
Current Beliefs:
Mgt doesn’t care about food cost
Food cost doesn’t affect me
No one notices missing products
This restaurant is highly profitable
My ideas don’t matter
Desired RESULT – Lower Food Cost
BELIEFSBELIEFS
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HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
RESULTS
ACTIONS
BELIEFS
Management “Do this . . .”
EXPERIENCES
Current Beliefs: Mgt doesn’t care about food cost
Food cost doesn’t affect me
No one notices missing products
This restaurant is highly profitable
My ideas don’t matter
Desired RESULT – Lower Food Cost
BELIEFSBELIEFS
Current Experience: Mgt doesn’t measure food cost
Food cost is never or rarely discussed
Products are never counted
Owner has a new BMW
Mgt never asks me for ideas
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HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
RESULTS
ACTIONS
BELIEFS
Management “Do this . . .”
Leadership
EXPERIENCES
HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
Leadership intentionally creates the employee EXPERIENCES that promote the right BELIEFS.
The BELIEFS that inspire the employee ACTIONS that produce the desired RESULTS.
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HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
RESULTS
ACTIONS
BELIEFS
Management “Do this . . .”
Leadership “What else can I do?”
EXPERIENCES
3 WORLD CLASS STRATEGIES
1. Mission
2. Rules of the Game
3. The 90 Day Challenge
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HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
RESULTS
ACTIONS
BELIEFS
90 Day Challenge MissionRules of the Game
EXPERIENCES
MISSION
Why does your restaurant exist?
What do you want to accomplish?
What would your employees say?What would your employees say?
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MISSION
Why EVERY Restaurant Needs a Mission?
Gives meaning & purpose to every activity
Provides a “high performance challenge”
Becomes the basis for standards & accountability
Will help you pull your people together as a team
Will help you recruit & retain the right people
MISSION
1. What your company does
2. Who you do it for
3. Result(s) you want to achieve
Should contain 3 elements ‐
Must be: Clear & Succinct
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MISSIONMISSION
“To nourish and delight everyone we serve.”
“Our Restaurant’s mission is to leave a smile upon our customer’s face and a feeling of great satisfaction when they
leave the restaurant.
We do this through superior quality food, superior customer service, sales growth, cost controls and treating our employees
like family.
We believe that our employees are our most important resource and our success depends upon creating and retaining a staff capable of delivering an exceptional dining experience
to every customer, every time.”
MISSIONMISSION
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“Our mission is to become world famous by delighting one guest
at a time.”
MISSIONMISSION
“To guarantee that every guest is delighted because of me.”
MISSIONMISSION
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“Our mission is to thoroughly delight our guests through such unparalleled hospitality, service and culinary excellence that they will rave about their experiences and have no
choice but to return.”
MISSIONMISSION
MISSIONMISSION
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MISSION STATEMENT COMPONENTSMISSION STATEMENT COMPONENTS
Pal’s Sudden Service ‐
What they do To delight . . .
Who for our customers . . .
Result . . . creates loyalty.
MISSION
What does your restaurant do?Is it clear what your restaurant does?
Who do you do it for?Is it clear who you do it for?
What result do you most want to achieve?Is it clear what result you want to achieve?
Crafting your mission ‐
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IMPLEMENTING YOUR MISSION
1. COMMUNICATE the mission
Owners & managers must ‐
COMMUNICATING YOUR MISSIONCOMMUNICATING YOUR MISSION
Interviews
Orientation & training sessions
Training manuals, handbooks
Management meetings
Pre‐shift meetings
Decision‐making discussions
Whenever the opportunity arises
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IMPLEMENTING YOUR MISSION
1. COMMUNICATE the mission
2. MODEL the mission
3. COACH the mission
4. PRAISE progress toward the mission
5. REDIRECT resistance/roadblocks to the mission
Owners & managers must ‐
MORE REASONS YOU NEED A MISSIONMORE REASONS YOU NEED A MISSION
Will greatly enhance your leadership effectiveness
Becomes the impetus for continuous improvement
It’s obvious who should leave
Can make working at your restaurant more than just a job
It becomes easier to manage & coach your people
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MISSIONMISSION
“It makes it very easy to sit down with people to discuss what your standards are based on your mission statement without emotion. When you take out that emotion, there is no more stress when you know you have to discuss disciplining your employees.”
Brian Bailey, Owner & ChefThe Bistro at Marshdale
“You say, Listen, we’ve had this discussion, you know what our business is about. If you’re not showing up on time we can’t provide the customer experience that we say we’re going to provide. If you don’t have the right attitude, then it doesn’t match our mission.”
Brian Bailey, Owner & ChefThe Bistro at Marshdale
MISSIONMISSION
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3 WORLD CLASS STRATEGIES
1. Mission
2. Rules of the Game
All Organizations Need a Framework of Rituals & Rules
What’s acceptable and not acceptable
How things are done
What is expected of everyone
How we interact with each other
How we hold each other accountable
RULES OF THE GAMERULES OF THE GAME
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MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”
SAFE
According to a 2011 Monster.com survey . .
“66% of respondents admitted to being a victim of workplace bullying”
MANY WORKPLACES ARE NOT SAFE ZONESMANY WORKPLACES ARE NOT SAFE ZONES
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SAFE
Honesty
RespectCourtesy
Transparency
Trust
Caring
Consistency
MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”
CREATING A “SAFE ZONE”CREATING A “SAFE ZONE”
Customers will never love a company until the employees love it first.
- Simon Sinek
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HAVE YOUR OWN
“RULES OF THE GAME”HAVE YOUR OWN
“RULES OF THE GAME”
1. Do your best
2. Do the right thing
3. Show people that you care
Basics
Goal is to create a climate for cooperation, transparency and excellence to thrive.
Goal is to create a climate for cooperation, transparency and excellence to thrive.
HAVE VALUES THATEVERYONE IS TO LIVE BY
At LongHorn Steakhouse our Core Values are the ruling cornerstone behind every decision we make. We believe in them and manage our restaurants accordingly.
We treat each other with DIGNITY, RESPECT, HONESTY and INTEGRITY.
We hire GREAT PEOPLE, we set CLEAR EXPECTATIONS, we provide regular feedback and we CELEBRATE great performance.
We function as a TEAM, "we all look good together, we all look bad together."
We are COMMITTED to continuous TRAINING and DEVELOPMENT.
We ACT GUEST FIRST, we DO IT RIGHT or FIX IT FAST.
We believe in CONTINUOUS IMPROVEMENT, in getting better day‐by‐day and shift‐by shift.
We are a GOOD BUSINESS CITIZEN…we follow the law and we POSITIVELY CONTRIBUTE to our community.
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BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
K&N Management ‐
Friendly
Engaging
Authentic
Harmony
Strong work ethic
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
Pal’s Sudden Service “No Gossip” Rule ‐
Talking about team members when they aren’t there
Anything you wouldn’t say to a person’s face
Why? Can be disruptive to work climate, morale, teamwork
Gossip can affect the mission
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3. THE 90 DAY CHALLENGE3. THE 90 DAY CHALLENGE
Create a New Accountability Structure
Everyone is responsible for finding & reducing waste
Everyone is responsible for delighting the guest
For the next 90 days, everyone responsible for 2 new ideas a month to reduce waste or delight our guests
The status quo is not an option
GAUGING YOUR CULTUREGAUGING YOUR CULTURE
On a 1 to 10 scale, how would you rate your restaurant’s culture today?
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GAUGING YOUR CULTUREGAUGING YOUR CULTURE
1. In the last seven days, have you received recognition or praise for doing good work?
2. Do you feel someone in management cares about you as a person?
3. Do you feel like your job matters?
4. Do you feel like you’re in on things and know what’s going on in the restaurant?
5. In the last six months, has someone talked to you about your progress?
How would your employees answer these questions?
* From The Gallup Organization Q12 Survey
CHANGING YOUR CULTURECHANGING YOUR CULTURE
What’s one thing that you could begin doing or stop doing now that would improve your culture?
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What type of changes in your restaurant would you expect to see if your culture rating moved up a few points?
CHANGING YOUR CULTURECHANGING YOUR CULTURE
WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Sales $ Profit $Costs & Expenses- =
Guest Experience
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WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Employee Experience
Culture
WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Sales $ Profit $Costs & Expenses- =
CultureChange Your Culture. Change Your Results.
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3 DAY WORKSHOP3 DAY WORKSHOP
Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture to Create More Loyal Guests & Positive WOM
Dates: May 18 - 20, 2015
Location: San Antonio, Texas
RestaurantOwner.com/culture
CULTURE: FINAL THOUGHTSCULTURE: FINAL THOUGHTS
Success in the restaurant business is ultimately about the experiences you provide your
employees & guests.
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