Restaurant Management: Owners Never Get What They Want but Often Get What They Ask For

When it comes to owning restaurants, there are few owners out there that are satisfied with the operations of all or even most of their locations. The larger the company, the more this rings true. Owners hire experienced operators, purchase expensive training programs, hold regular meetings, follow trends and all the other things that should deliver the results they want. Still, they find that in spite of all of the money, time and effort, positive results are either not seen at all or fade rapidly. So where IS the problem?

There are four basic management styles and in the restaurant biz, the dominant has been and remains the responder or reactor and it may be known by many other names depending on the company. The bottom line is, it is a style where the manager or leader operates very effectively in the here and now. They are quick to spot problems in a fast moving operation. They are quick to notice a customer waiting and are quick to respond. They are great managers of right now. Where they are challenged is the in the future. They do not develop independent teams capable of thinking through problems on their own. They aren't very big on systems and procedure either. Although things may run well while they are at the helm, things change drastically and rapidly when they leave or get promoted. The latter is the most common. The quick delivery of what seems to be results is very satisfying to owners.

On the other end of the spectrum, we have the thinkers. These are very big on processes, procedures and protocols and are often the ones called hard-asses by their staff - at least in the short term. These are the team builders and long term results guys that owners want. They catch and remove the thieves, execute the training and push for accuracy and courtesy first - speed later. As a result, initial performance numbers decline and budgets get pushed to the limit for repairs, uniforms, and the tons of wasted food that wasn't up to par going in the bins. This approach is not understood by the responder type. Often, before things can even get started well, either owners or the manager have found themselves frustrated and the relationship ends.

Now we come full circle to the title of this article - getting what you want versus what you ask for. Owners want the long term, by the book results but they aren't willing to gamble six months worth of poor P&L performance to get it. To better understand, let's get into real world examples. Those in the business know, new managers and strong performers both have one thing in common - a soon to be realized future in a very troubled location. Sales are down, complaints are up, profit is non-existent, health scores are shameful, crew turnover is ever higher, etc, etc. On the surface, we need to meet the basic needs of the customer. Good food, delivered quickly, at a good price point in a clean and friendly environment. This doesn't sound very hard does it? But it is hard. It is much harder than most think and this is why you are more likely to fail in a restaurant venture than succeed. It is also why you are more likely to hear of a poor restaurant experience than a great one. So, off we go into the new restaurant to get things fixed. We know what the owner wants, what he thinks he wants, what he expects and where the line of reality may be in all that. We also know what customers want.

Here we are. It is day one in the new restaurant. Right away we notice that the crew looks sloppy, morale is bad, attitudes stink, the food is not fresh, middle management has given up, it's dirty, customers are waiting forever, equipment is broken, drink cups are all over the place, dishes are piled up, pans are missing, lights are missing or blown, the cooler and freezer are warm and the health score is near single digits. We ponder going home, having a drink and finding a new job. We take a few deep breaths and realize we have been here before. We decide to get a better picture of what we're up against and what we have to work with. We begin working alongside the suspicious and glaring team members. We know they are trying to decide if we know what we're doing, what they're doing and/or whether we're going to fix things are make them worse.

As we go through our first day, we see the thieves skimming the till. We see that the word "standards" has not been heard here in quite a while except perhaps in joking. We see under trained, over worked assistant managers doing their best just to keep the doors open and the crew from walking out. They scramble to cover the last minute call-outs and no shows. They referee the constant and loud arguments and tussles. We see the customers whose faces have been red for so long one would think they are sunburned. We hear the tone of their complaints. The one that says: "I don't know why I am wasting my breath or why I came here again!". At the same time, we spot a few, just a few, that are trying to do things the right way. Trying to correct others. Trying to please customers. In short, just trying to do the right thing. We know from experience, that with just a few that might go with the program, we can make things happen.

We have spent our day feeling out our people, getting input on what they think needs to happen and why they work here. We put together our first long list of things to do. Our list does not include being a positive role model to the people that are robbing us blind. It does not include pushing for fast service times or making cuts for the benefit of a better P&L. It is a list of basics. It is about getting the place clean and in good repair. It is about tossing expired product and doing away with shortcuts. It is about proper uniforms and other tools needed to do the job. It is about staffing. An honest staff, properly trained and coached, paid fairly and given a chance to participate and to grow. This all sounds great, right? Sure, until we realize that proper training means going slow to get it right. A new staff means training and training means errors and hours. Equipment and uniforms and even cleaning cost money. Enforcing standards means crew turnover. That turnover leads to short handed shifts and frustrated customers. Those customers leave for a while and sales plummet.

The owner wants the positive results that such actions will eventually lead to but he does not want to make the investment. The store was in trouble before the new guy. If there were a 1 to 10 rating system based on all the matrix, the store would have been a 4 when the new guy came and is near a 2 a couple months later. What the matrix can't show, yet and what the owner can't see, yet, is the positive changes taking place. All he knows is the P&L, the numerous cases of calls and unemployment claims from terminated employees. He knows food cost is high, sales and profits are down and the only feedback from the new guy is a promise to have the store at a level to pay it all back in only a few more months. This is more than most can bear. Owners can not be blamed for a lot of this mentality. They have dealt with many empty promises, conmen and true believers that wanted to do it right but lacked the knowledge and experience to actually do it. Additionally, they are receiving their information from the responders and reactors they promoted to run this district or region. They, too, can not understand what is happening.

We obviously can not expect a leap of faith, it really is asking too much. After all, we are discussing someone's livelihood here. What is missing from the happy middle is a proper set of parameters to gauge progress. Fast service or a good P&L does not mean necessarily mean success. If you have been in the business for any time at all, you have encountered the fluffers and forgers that can make a turd shine. A simple thought process can gauge success. Such a process might be as simple as asking, "Which is more important - fast or friendly? Sales or profit? Clean or quick?". Experience is also a good and perhaps the best way or gauging progress. We know that crew turnover is bad for business but we also know that it is a necessary evil. If we know a location has poor attitudes, poor attendance, poor morale, poor standards and a theft issue, how can we expect anything less than a lot of turnover? Our experience tells us that this will lead to other issues so we know to expect them. What we need to concentrate on is how the new hires are being indoctrinated. Are we interviewing selectively and asking the right questions? Are we executing and following up on a good training program? Are we bringing them into a structured and disciplined yet fun work environment?

If we haven't cleaned the store, repaired the equipment and fired the thiefs, then what are we telling our new hires? If we are bringing them into a shift with no free manager to train them, how do we expect them to receive training? If we really want to know what steps are being taken and where the new guy expects to go, we have to spend time communicating with and understanding him or her. Spotting problems in the matrix and sending the supervisor to demand better numbers serves no purpose other than to frustrate all parties concerned. The owner has to keep sight of what he really wants. What that should be is a location that is a 10 on the scale rather than one that has improved from a 4 to a 5 or 6. A location where sales grow year over year because of a consistent, positive, customer experience. Building a well trained, disciplined and enthusiastic team takes a lot of time and yes, money. Once the proper procedures become habit, speed will follow. Cashiers will learn to take orders correctly and in turn cooks will learn to prepare and send them correctly. The crew will function as a team and rushed, frustrated services will be replaced with casual yet high volume experiences. When the now no longer new guy moves up or moves on, someone from the team will be ready to take his or her place and carry on.

I would encourage anyone in the business to discard the traditional thinking, forget chasing the latest and greatest new training program and focus on delivering the basics. Get it organized, get it friendly, get it right and then get it fast. Sales and profits will follow as a natural result rather than an endeavor. For those that are a little newer to this, here are some helpful hints.

Things to watch out for:

1. Notes posted all over the store. We have all seen them. They usually have a lot of exclamation points and even threats all over them. Communication is far more complex than a note can accommodate. The note can not convey tone or expression and it is a one way street. Those that are strong performers are discouraged by this. The manager likely didn't mean to include them in the message but they did nonetheless. Others that may be unsure of where their performance stands may be given a false sense of insecurity by such notes. Finally, those that the note was meant to address could care less about a note.

2. H/R Training. 99.99% of managers at all levels have little or no HR training. This can lead to costly fines and lawsuits that these managers never knew were possible. We often teach our people how to schedule effectively for shifts and never tell them about law. Calling people in early and then not letting them work, shifts shorter than four hours, weeks over 45 hours for salaried managers that are not GMs and a million other little things can add up and become very much an issue with one disgruntled employee.

3. Boxes. I know boxes seem like a small thing but they are not. Cardboard and roaches go hand in hand. Besides pest, the more whole unopened cases there are, the more likely some of them are to disappear. The combination of these two issues can lead to tens of thousands of dollars in losses not to mention reputation.

4. Finally, theft. You must have an ever evolving system to catch theft in its many forms. It is a fact that 7% of your take is likely going to theft. In a business as tight as this one, 7% is massive. Missing product, transactions, overrides, cash shortages, declining sales and profit are just a few of the many indicators. Apply the 7% to your business and determine what it is worth for you to take steps.

Things you want to see:

1. Competitive spirit. You need your leader to have a competitive spirit and for that spirit to poor over to their team. You are in competition with every other restaurant, super market and home in the area. The manager should want to be better than them and better than other stores in the same company. A lack of this spirit will likely accompany a lack of performance and certainly a lack of desire to improve. There should be in-store contests and performance tracking that drives the team to improve.

2. Awareness. A good leader will be aware of trends in the business, the market and their location. They will plan ahead for slow times and fast times alike, will be aware of new store openings and closings, major job loss causes like factories closing, etc. They will know if all numbers for the store are on plan or if there is a problem. If you find yourself providing this info often, you do not have a leader in place.

3. Smiles. A lack of smiles on employees and managers alike is an indicator of so many problems. It doesn't take much on our part to bring a few smiles with us and only a few can go a long way. A good practice I once learned from an employer was to go around to every store, every now and then, and do nothing but notice and show appreciation and praise for the good things we saw. It is tough to no jump on the problems but if things are going right in our locations, there is plenty of that type of feedback most any day. In any workplace, it is likely that there is a shortage of praise, smiles and happiness.

4. Evaluations & Feedback. Leaders that talk a lot to their team are usually more effective and have happier people. Knowing where we stand is important to us all. Constant verbal feedback, praise and correction make the regular, official evaluations go over much better. No one wants to be surprised at that time. A lack of routine and timely evaluations are inexcusable and unacceptable at any level.

In closing, I will simply say this. You don't need consultants nor do you need the fantastic, awesome, incredible new training system or catch phrase. (Fact is they seldom work any better than what you had before.) What you need is a vision, a plan, passion, experience and common sense. If you don't want the expense of turning around a troubled location, then don't let it get in trouble to begin with. Pace yourself to ensure you always have a solid and good team already in place for all the new locations you want to open. Owning 3 diamonds is better than owning 20 lumps of coal any day - trust me.