5 Ways to Help Your Restaurant Survive The First Five Years

5 Ways to Help Your Restaurant Survive The First Five Years

by | Feb 6, 2017 | Business Toolkit, Management

An Ohio State University study found that 60% of restaurants don’t make it a full year in business, and a whopping 80% fail before they reach their fifth birthday. The odds for new restaurants aren’t great. But, the reward for those who are able to dig their heels in and endure, is great. So, what can be done to give your restaurant the best possible chance at success? Below we outline five priorities to keep in mind as you navigate the first five years of business.

1. Be flexible even if it makes you uncomfortable

Most restaurants don’t happen overnight. Instead, they happen after many months and likely many years of dreaming. Those dreams become plans that are specific and personal. But, reality and planning don’t always mesh, and when they don’t flexibility is key.

For instance, a menu item you’ve always done the same way may need to be revamped when a specialty shop featuring a dozen versions opens up down the block. This can be an issue in any aspect of the business… far beyond the menu.

Whatever it may be, one thing is certain: businesses that fail to adjust also fail to survive.

2. Have patience and faith in your staff

It’s a mistake to believe that every employee you hire will have the same vision and skills that you do. Not only has it been proven that having a flexible boss makes for healthier employees, but it also ensures you don’t miss untapped potential.

See your staff as the individuals they are, each with unique viewpoints and talents.

Don’t make the mistake of overlooking employees with a load of potential simply because they learn differently than you teach. Or communicate differently than you do. See your staff as the individuals they are, each with unique viewpoints and talents. They are more likely working with the best of intentions, and if they’re not, it could be because they aren’t sure they’re in an environment where their well-being is at the forefront.

3. You have to be willing to reflect

It can be so very easy to fall into a rhythm that fails to critically analyze every meal service. Especially when things seem to be going well. But, it is crucial that each and every component is assessed with consistency.

In regards to sub-par preparation and execution, celebrity chef Robert Irvine says, “Day-in and day-out food preparation and presentation becomes routine — sometimes almost a factory-like motion — and can lead to steps being skipped and key ingredients missed over a period of time. It’s like de-evolution. Very slowly your most popular dish can start to veer off its intended flavor profile and your cherished execution can stray from what is best for the end product.”

Always re-evaluate, but do so while shouldering the responsibility that your role requires.

4. You have to really care about the customers

While all of us in the service industry have smiled our way through bad days, if you’re going to make it for the long-haul, customer service has to be genuine. Today’s customer can spot a lack of authenticity from a mile away. The surest way to lock-in customer loyalty is to care about their experience and to prove it to them.

“Customer concerns come in infinite varieties, with infinite moods, paces and nuances. So instead of training to a script, the best thing an organization can do is teach its people to deal with situations, both good and difficult. Give them the tools to recognize behaviors and respond appropriately and effectively,” says expert Micah Solomon.

“The public changes its palate and like them, we always have to keep evolving… evolution, always.”

5. Remember, the only direction to travel is forward

This point is the marriage of all the preceding points. Being able to recognize all of the potential avenues for growth in all the areas of your business is what can make or break a fledgling restaurant.

In the words of Michelin-rated chef David LeFevre, “The public changes its palate and like them, we always have to keep evolving… evolution, always.”

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Cost Per Hire: How to Calculate It, How to Control It

Cost Per Hire: How to Calculate It, How to Control It

by | Feb 3, 2017 | Business Toolkit, Management

Cost per hire is one metric that is especially easy to lose sight of and underestimate, as these costs tend to overlap with existing business functions — paying HR staff, advertising, administrative work and so on. When you actually sit down and run the numbers, however, your total hiring costs for any given year can be eye-popping.

As of 2012, the standard definition of cost per hire is the sum of all recruiting costs (both internal and external) divided by the total number of hires. According to the Society for Human Resource Management’s most recent Human Capital Benchmarking Report, the average cost per hire for any type of business is $4,129. However, if you’re part of a large chain (“large” in this case being over 10,000 total employees), then you can expect that cost to be roughly halved.

In the leisure and hospitality industry, which includes restaurants and hotels, this individual cost is likely to be lower than average as the majority of positions are nonsupervisory and don’t have large expenses associated with them like relocation costs or lengthy training. However, because the turnover rate is nearly 50% higher than the average of the private sector, the total cost over the course of a year can definitely add up.

Calculating cost per hire

As with your basal metabolic rate, cost per hire is one of those things that’s almost impossible to get an exact number for, but doing a quick-and-dirty calculation that is close enough to be functional is actually pretty easy.

Here’s the simplest formula:

calculating cost per hire

Keep in mind that costs and number of hires refer should both be calculated for the same period (e.g. month or year).

Internal costs

Internal recruiting costs are expenses “related to the internal staff, capital and organizational costs of the recruitment/staffing function.” These include, but are not limited to:

  • Salary for any related HR and hiring personnel
  • Salary costs of time spent hiring by other staff members (conducting interviews, screening applications, and so on — if this is too complicated, leave out)
  • Any referral bonuses you might be offering to existing employees

External costs

External recruiting costs refer to expenses “incurred to external vendors or individuals during the course of recruiting.” These include, but are not limited to:

  • Fees paid to outside employment agencies
  • Fees paid to post job listings in newspapers or on websites
  • Cost of drug screening and background check
  • Fees paid and materials cost to attend any job fairs or similar events
  • Cost of any required aptitude tests
  • Cost of relocation
  • Cost of any training period in which the new employee is not doing any productive work

Any costs after an employee is hired, such as training, is not included in the cost per hire calculation.

Total hires

The total number of hires could be measured differently across companies. However, these usually include all internal and external hires, both full and part-time, who:

  • Went through a hiring process
  • Temporary staff on payroll and promoted to a full-time position

Divide the total of all the recruiting costs by your number of new hires for that particular time period, and you now have a pretty good idea of your cost per hire, for that time period at least. If you do this on a monthly or quarterly basis, average your totals for a more accurate picture.

Controlling your cost per hire

OK, so you have a better bead on your cost per hire. Now, what can you do to bring it down?

Let’s start by addressing the elephant in the room that we touched on earlier: turnover. After all, if employees don’t leave, you’re not faced with the cost of replacing them. Annual employee turnover in the hospitality industry typically hovers between 70-75%, well above the average of about 45% for all other types of private sector jobs.

Combatting turnover starts with optimizing the hiring process. Many job seekers are now looking for jobs online via job boards and social networks. So why not leverage that to your advantage? Consider using niche job boards, like Sirvo, that not only make it easy for job seekers to apply for jobs but also provide business tools so that better hiring decisions can be made.

Another factor that contributes to turnover is that, for many people, a restaurant job is just something to pay the bills while they pursue their dream, and that isn’t going to change. However, employees don’t always leave because this is just a McJob to them; when they feel that management doesn’t listen or care, then there’s almost nothing to keep them from looking for greener pastures elsewhere. Little things that don’t cost much, like better communication and small incentives such as shift meals and performance bonuses, can go a long way. Likewise, the employee may no longer regard the job as disposable if a clear and realistic path to advancement is presented to them.

At the end of the day, knowing where your business stands in terms of hiring costs is crucial, especially in the hospitality and restaurant industry where employees at the heart of the business. So, get your expenses together and your calculator out!

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Need Extra Cash? Pick a Side Job That Complements Your Strengths

Need Extra Cash? Pick a Side Job That Complements Your Strengths

by | Feb 1, 2017 | Career

So, you’ve managed to land a position that will give you experience in the restaurant industry. Congrats! Of course starting out, you’re not going to get rich on the salary, but at least you’re getting a start on your resume. So, how can you make a little extra cash, get some broader experience and perhaps develop related skills that will make you stand out? Something that will give you an edge, maybe even expand your career options? Pick up a side job that complements your skills and career goals; here are few ideas to get you started.

Social Media Marketing

Many restaurateurs don’t make the time or have the skill for social media marketing, but no one should underestimate its power in promoting a restaurant and growing a loyal clientele. People like the immediacy of a relationship that social media allows, and there is no better way to get into the food conversation, gain some recognition and stay in customers’ minds on a daily basis.

Do you have a camera and a computer? Develop some basic social media skills, and then offer a package to restaurant owners starting with the one for whom you work. A good starting package includes a manageable number of posts per week on popular social media networks like Facebook, Twitter and Instagram. You can also include others like Google+ and Yelp.

This kind of social media setup is easy to maintain.

There are several tools out there with which you can schedule posts in advance and post to multiple social media networks simultaneously. Good ones to check out are Hootsuite and IFTTT.

This kind of social media setup is easy to maintain. All you have to do is let the right people know how important it is for them to engage with social media and show them you have the skills to do it for them. Start your client search with the place you work now, and make them shine!

Blogging

It’s a big deal in the content marketing world these days with 76% of U.S. businesses using it and 77% of those saying they will increase their content marketing in the coming year. Not everyone has writing skills or likes to write, but if you do, you’re in luck!

Help them connect to their customers in a personal and thoughtful way.

You can use your skill and familiarity with the industry to blog on behalf of restaurants in order to establish them in their industry and community and to keep them in the minds of their customers. Write for individual restaurant clients or operate your own restaurant blog library from which restaurant owners can draw for a fee. Help them connect to their customers in a personal and thoughtful way.

Promotional Models/Brand Ambassadors

Do you like to talk with people? Are you reliable, outgoing and energetic? As a brand ambassador, you’ll have an opportunity to really use and develop those people skills! Usually, brand ambassadors work through agencies that pair them up with companies needing representatives for their brand at an event. The agency provides training based on the company’s instructions.

A promotional model is a specialized version of a brand ambassador. Suppose a company requests all red heads 15-20 years old to represent them. If you fill the bill and are called up, you’ll probably make a little more money because you’re harder to find!

As either a brand ambassador or a promotional model, though, you’ll get to meet people and polish up your persuasion arts, always a good thing.

Develop some unique skills through side hustles that will make you indispensable.

So if you’re headed for the stars in the restaurant industry but need to make some extra money now, develop some unique skills through side hustles that will make you indispensable in your current environment right here on earth. And who knows? If things change, as they often do, you might just find another whole universe of stars in one of these side hustles. 

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Training Hacks: Employee Evaluations and Training Program Adjustments

Training Hacks: Employee Evaluations and Training Program Adjustments

by | Jan 30, 2017 | Business Toolkit, IndiTips, Management

You’ve made great hires and developed and implemented a training program, but just because the trainees are working shifts doesn’t mean that training is over. The last phase of a successful training program is measuring the performance of your employee(s). It’s also an integral building block of any prosperous business.

Using employee evaluations

Employee performance depends on a number of things, from punctuality to quality of work to how well they fit with the team. The best way to put all factors together is by using employee evaluations.

Plus, feedback is important, especially in the service and hospitality industry. It’s how we know we’ve done a good job and made someone happy. Employees ask for it from every patron that crosses our threshold, so it’s natural for them to expect it from their managers, too.

When conducting the evaluation, you’ll want the employee to understand that you’re there to help them.

Conducting employee evaluations and following up on them periodically throughout the year is the most effective way to monitor your employee’s progress and give feedback. Based on the size of your establishment, we recommend you conduct employee evaluations at least once or twice a year, if not more.

When conducting the evaluation, you’ll want the employee to understand that you’re there to help them, not to criticize them. Make this conversation as comfortable and collaborative as possible. This shouldn’t be a one-sided discussion where you point out their mistakes and then send them on their way. They, as well as you, have put a lot of time and effort into training and development.

A great way to frame the conversation is by goal setting. Both you and the employee can participate by identifying goals, which will help you and your employee better focus on development. This will also provide a benchmark to refer to during the next evaluation. Goal setting can be tricky, but by using S.M.A.R.T. Goals, you’ll ensure that they are appropriate and achievable.

If you’re providing daily feedback, an employee shouldn’t be surprised by anything when it’s time for their evaluation.

It may come as no surprise to you when we tell you that evaluations are also the best way to determine how to reward an employee. We’re talking raises here, in case you haven’t guessed yet.

Pro-Tip: For legal and logical reasons, you should always keep records of conversations you have with an employee regarding their performance.

Cracks in the system and how to fix them

The hospitality industry is unlike any other. Managers and owners work closely with their employees on a daily basis. Because of this, you’re able to provide your employees constant feedback and immediately correct any bad behaviors or procedures. The trainers that you’ve enlisted (see Training Hacks: Part Two) should also be following suit.

If there are cracks in your training system, you should be able to spot and address them right away and adjust accordingly. In fact, optimizing your training process based on outcomes is a great way to ensure that cracks are few and far between.

Also, if you’re providing daily feedback, an employee shouldn’t be surprised by anything when it’s time for their evaluation.

As always, taking the high road during an employee termination is the only way to go.

If you do have to let someone go…

Unfortunately, there are times when no matter how hard you try to help an employee excel, they just can’t seem to improve their job performance. Or they just don’t care to improve.

Once again, this is another area where the employee evaluation can and should be used.

If you’ve taken the time to work with an employee, to set goals with them, to monitor their progress, to provide constructive feedback, and to retrain them if necessary and things are still not improving… then it’s time to have the difficult conversation with them.

Here are some tips for the meeting:

  • As always, taking the high road during an employee termination is the only way to go. Never lose your temper (even though they may lose theirs).
  • Try to get to the reason for the meeting as quickly as possible. Don’t try to ease into it. It’s going to be uncomfortable no matter what.
  • Never resort to arguing. Simply state you’ve made the decision to end the working relationship and let them know HR will provide them with any written proof or documentation necessary.

A training program is meant to develop as the business develops.

Moving forward

Despite what many think, a training program is meant to develop as the business develops. It’s not supposed to stay static. You may change your menu by adding or subtracting new items. New procedures may arise. Or, you may change equipment in the front or back of the house.

All of these (and more) are reasons to make adjustments to your program.

Just remember to revisit training periodically. Pay attention to your business. Work alongside your employees on everyday tasks once in awhile. Participate in training as much as possible. This will help you understand where your business stands and what you need to do to tweak training to get the best from everyone.

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Sirvo Says: The 6 Most Unique Things To Do In Denver

Sirvo Says: The 6 Most Unique Things To Do In Denver

by | Jan 27, 2017 | IndiNews

With its gorgeous landscape, wonderful mix of cultures, and unique attractions, Denver, Colorado is one of the most popular destinations for adventure-seekers and those just looking for a break from the norm. Not only does Denver have plenty to offer in the way of good food, scenery, and fun things to do, it’s also a haven for sports fanatics due to all the big-league teams in and around the city. For outdoorsy travelers and those who seek a bit of beauty and refreshing change, Denver is the perfect destination. Read on to find out more about the best ways to have a unique trip to the Centennial State.

1. See the town on a bike

Many people in Denver forgo a car in favor of the much more efficient bicycle, and if you don’t happen to have one with you, the city provideth. There are Denver B-Cycle stations everywhere, and you can rent a bike for a minimal fee (30 minutes or less is free!). There are also several options for guided bike tours, some of which include brewery stops! Check out some of the best here.

2. Take in some oddities

A visit to the Denver Museum of Miniatures, Dolls, and Toys will be fun for the whole family, but make sure you check out the permanent displays, like Chuck’s Circus, which features 4,000 tiny painted figurines, animals, and a complete freak show.

2. Eat some sopapillas

It wouldn’t be a visit to Denver without going to the motherland, Casa Bonita. This Denver favorite made famous by South Park is one of the most nostalgic locations for locals. The 40-year old establishment boasts cliff divers, an arcade, and world famous sopapillas that people of all ages can enjoy.

3. Live like Scrooge McDuck

Ever wanted to see a pile of money so big you could swim in it? Head to the Denver Money Museum, where you’ll find that and more.

4. Snooze, an A.M. Eatery

If you’re a morning person–or decidedly not a morning person but love breakfast foods–head to Snooze, where you can get a giant stack of sweet potato pancakes complete with caramel, pecans, and ginger butter. If you’re looking for something more savory, try the chilaquiles benedict, tortillas filled with ranchero sauce, cheese, barbacoa beef, and poached eggs. This restaurant is more than your average breakfast diner and will leave you full and satisfied.

5. Experience the Alfred Packer Memorial

In Littleton Cemetery lies the body of Alfred Packer, who made the trip from Utah with fifteen friends during the gold rush and ended up stranded in a snowstorm so intense he had to eat his traveling companions to stay alive. He made it, only to be sentenced to forty years for manslaughter.

6. Visit Stephen King’s inspiration for The Shining

Horror lover? You’re in luck, because just a short drive out of the city will take you to Estes Park, where the Stanley Hotel stands. The gorgeous site is the very same where Stephen King stayed many years ago and was inspired to write The Shining, and, like the setting in the book, the hotel is known for a bevy of ghostly goings on.

Come to Denver with a sense of adventure and leave your stresses behind. This beautiful, mountainous area will leave you feeling well-rested and fulfilled–at least until the next trip.

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