Bar Reservations May Increase Restaurant Profitablity

Bar Reservations May Increase Restaurant Profitablity

by | Jun 27, 2016 | Business Toolkit, Management

Do you take reservations for the bar in your restaurant? If not, it may be time to start. According to a new survey from OpenTable, offering reservations for bar dining has many potential benefits including added seating, faster turnaround times and, for a specific type of guest, increased hospitality. 

In late May, OpenTable launched Table Categories, a pilot program that allows users to book bar reservations at a handful of participating restaurants in Chicago. As OpenTable’s Eli Chait, this was a response to internal company data showing that bar dining options are underutilized at many restaurants.

“We estimate that non-standard seating options like bar, communal tables, and high-tops make up 12 to 15 percent of restaurant inventory in the U.S. These seats are typically empty or highly coveted, as some diners actually prefer a seat in the center of the action.”

In order to establish some bar dining benchmarks, and to kick off their Insider Survey Series, OpenTable polled 420 restaurant partners, of which 62% were casual fine dining, 31% full-service casual, 12% formal dining establishments.

Here are the survey key findings:

  • 36% of respondents are already accept dining reservations in their bars and 12% are interested in doing so.
  • 52% report that the bar generates the same amount or more revenue than that of the dining room.
  • 54% say that the average turnaround time in the bar is under 60 minutes.
  • 85% agreed with the statement, “Investing in my bar area increased my restaurant’s profitability.”

So, what’s the main advantage of offering bar reservations? As BonAppetit‘s Sam Dean explains, it all comes down to having the flexibility to seat more guests.

“Solo diners can drop in without having to hog a two-top, and a friendly word from a bartender can free up enough space at the bar for a whole new party—after all, you can’t exactly ask a couple to slide down to the next booth in the middle of their meal.”

However, skeptics remain, fearing that bar reservations may compromise customer service and guest experience. In response, OpenTable says that implementing this practice satisfies another type of clientele that prefers the bar scene.

“Offering bar seats to guests who are thrilled to book them means those diners get the experience they desire—and seats stay occupied all night.”

And, yes, for the customers that like to get their names in the book but would rather sit at the bar, this is definitely the case. But what about those that prefer the bar precisely because it doesn’t require a reservation? They probably wouldn’t be too pleased.

All in all, it really comes down to the establishment and its clientele. That said, with the right conditions, allowing customers to book the bar could mean more money in the register.

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How to Hire Great Staff for the Summer Season

How to Hire Great Staff for the Summer Season

by | Jun 20, 2016 | Business Toolkit, Management

Summer is often a busy season for the restaurant industry, but it’s also a great time to add temporary workers like college students to your staff. However, you don’t want to hire just anybody. Your summer workers should be as talented and skilled as your full-time employees. With the right preparation, you can hire the best staff for summertime. 

What to look for in a summer employee

Because they aren’t hiring summer employees for the long-term, many restaurants make the mistake of hiring the first few people who walk in with an application. However, to have a summertime staff that boosts your business, you want to look for certain characteristics during the interview, even if it means passing over the first few candidates until you find the right match.

Here are the top qualities you should be looking for in both front and back-of-house summertime restaurant employees:

  • Sociability
  • Ability to accommodate others
  • Frustration tolerance
  • Drive and energy
  • Integrity
  • Successful multi-tasking skills
  • Persuasiveness
  • Pride in work
  • Teamwork
  • Safety

How to measure a candidate’s skills

Knowing what to look for is one thing, but being able to determine how well a candidate meets the above requirements is another. Fortunately, technology is here to help. Sirvo, for example, allows employers to include a custom question in the job listing to be answered by candidates when applying, which gets the vetting process underway immediately.

In addition to using a tech service to test candidates, your interviews should be situational and specific to the job so you can gauge how well the candidate will work in your environment. Here are a few suggestions of questions to ask during the interview:

  • What would you do if you spilled beer all over a customer?
  • What would you do if one table complained about another table being too loud?

You can also do a menu quiz: ask the candidate to memorize the list, then have them take an online quiz. Accept 80 percent or higher as a passing grade.

Where to find candidates

Seeking candidates for summertime openings can be tricky. Here are some things you can do year-round to make sure you have a pool of quality candidates to choose from when it’s time to amp up your staff:

  • Recruit year-round: Post seasonal jobs on your social media pages, website and other networking sites, like Sirvo. Reach out to seasonal employees from last year or who worked during the holiday season to see if they are available again during the summer.
  • Contact previous candidates: If you were on the fence about a candidate and ended up not hiring them, this can be a good time to check in and bring them in for another interview. They may have gained more experience and/or skills that will be useful this year.
  • Start a referral program: Chances are, your current employees have friends, neighbors, and/or family members who would make great employees. Offer some incentive, like an extra $25 if a referred candidate gets hired and then an additional $50 if they stay on for longer than three months.
  • Seek out non-traditional sources: If you’re looking for more mature employees, look in non-traditional places such as senior centers or VAs for job seekers. These employees can be great additions to your workforce and might only want to work a few months out of the year.

Streamline your summertime training

If you’re frequently hiring seasonal employees, here are some things you should do to simplify the hiring and training process:

  • Set up an orientation: Have all your summertime employees go through a new-hire orientation at the same time. This saves a ton of time since you only need to go through all the required information once instead of individually with each new hire.
  • Stay on top of paperwork: Don’t let the summertime rush get in the way of filing the proper paperwork. Make sure every employee completes their I-9 and W-4 forms before they begin working. Make it part of your orientation to make sure it doesn’t get overlooked.
  • Review the rules for hiring minors: Many high school students work in restaurants over summer break, and the laws are different for them. Make sure to review the most current laws so you know how many hours they can work, when they can work until and any other relevant information.

One final thing to remember is that you generally can’t classify summertime workers as independent contract workers, even though they are only working temporarily. Review the federal guidelines so you understand who qualifies as a contract worker and who should be classified as an employee.

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Restaurant Best Practices for Alcohol Delivery and Receiving

Restaurant Best Practices for Alcohol Delivery and Receiving

by | Jun 13, 2016 | Business Toolkit, Management

Alcohol delivery and receiving are important for the industries in which a large portion of revenues comes from alcohol sales. Within these industries, such as restaurants, finding more affordable, faster and efficient services for alcohol can become one of the most important aspects of the  business. By using these four practices that successful restaurants have in common, your involvement can become one of the most improved parts of the day-to-day operations.

 

Faster Delivery Times

Through automatic ordering, businesses are able to have faster delivery times without having to remember to order their usual shipments. These deliveries would be automated from the alcohol warehouse directly to the company. This can then give way to an easier payment solution through an online method of direct deposit, or easy card pay without having to authorize payments every time a shipment is required by the company.

If the restaurant is new to the alcohol warehouse, ID verification, as well as verification of the business for selling alcohol is essential.

There can be downfalls. While every restaurant wants faster delivery times, alcohol may have minor setbacks that make it a longer process. If the restaurant is new to the alcohol warehouse, ID verification, as well as verification of the business for selling alcohol is essential. These are two very important documents that have to be thoroughly checked in order for the warehouse to distribute the alcohol to the company. However, after the initial check of these documents, then the transition and delivery and receiving process should go much smoother.

Minimal Hassle

Have minimal hassle when ordering and receiving the correct order that was placed with the company. With the latest in technology advancements, the alcohol delivery and receiving process can go much smoother, while also helping both companies have an easier time communicating with one another.

When a regular schedule is established, so can automatic shipments, payments and inventory tracking be established by both companies.

No longer will the need to call, place the order, authorize the order and payment, have delivery, sign for receiving, and putting away be necessary. This can all be done automatically, with minimal hassle through the use of a program that inputs the amounts of alcohol that you currently have left, and then determines when you may need more.

Easier Payment Solutions

Through the use of easier payment solutions, the correct amount that is charged for the alcohol shipments can easily be paid. This is a way to automatically pay for shipments that are being sent to your restaurant. However, having a schedule and relationship established should be done first prior to authorizing automatic payments for each of the shipments every month. Once this relationship is established, however, it can then become much more efficient not only for the restaurant ordering and paying for the alcohol, but also for the warehouse that is fulfilling the order.

Inventory Tracking

The ability to track the current inventory of the alcohol that is on hand can provide a much more efficient way for restaurant owners to know when they are getting low. This, then, prompts them to notify the appropriate companies for the next shipment. Which leads them to use the first point, allowing for faster delivery times through automatic shipments.

Having the inventory tracked through an app or other means can allow the restaurant to run more effectively without having to write the amounts down and keep track of shipments.

If restaurants used technology that was able to provide these four points, and connected with their alcohol shipment companies easier; they could all benefit. The process of ordering, delivery, and receiving alcohol would be more efficient, more effective and provide numerous benefits to those using the service. This can greatly benefit both the restaurant that is ordering the alcohol and the warehouses that are meeting the shipments for them.

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How to Create a Great Restaurant Atmosphere

How to Create a Great Restaurant Atmosphere

by | May 31, 2016 | Business Toolkit, Management

Your restaurant may have great-tasting food, but if the atmosphere is bland or distasteful, it will overshadow the quality of the meal. Not only will customers be unlikely to return but they’ll also spread negative reviews. On the flip side, a great restaurant atmosphere will make the fare taste better, keep your customers around longer and ensure that they’ll return again and again. This is why the atmosphere of a restaurant is just as important as the food, if not more so.

Lighting

The lighting in a restaurant should strike a balance that makes customers feel comfortable. During the day, when the sun is shining, the lighting should be brighter to fit the energetic atmosphere of the day. When day turns to night, the lights should be dimmed to capture that quieter, more intimate feeling.

When it comes to lighting, also consider what type of lighting fixtures fit the concept. For example, for an elegant, romantic restaurant, chandeliers and candles would work well, but not so much for a modern restaurant concept.

Color & Décor

The colors in your restaurant, on the wall and on the plate, have an impact on the dining experience. While warm colors such as red and orange ramp up appetite, cooler colors dampen hunger. Color combinations have similar effects; less contrast between the color of food and the plate on which it’s served has been shown to increase the amount of food consumed.

When making decisions about color, keep not only the concept and brand in mind but also the effect it will have on customers.

Décor is important as well. Simply put, bare walls in a restaurant are unappealing. The artwork and décor on the walls help set the mood and expresses the creative point of view of the restaurant. Each room should have a point of focus, but nothing too overbearing or busy as to detract from the elegance or balance of the overall design.

Music

For your atmosphere to be cohesive, the music needs to fit the restaurant. For upscale dining, music should be subdued and calming. In more casual restaurants, louder and faster music can help create a more social atmosphere.

For a bar or very social establishment, live music can be a great draw. Also, keep in mind that faster music leads to faster eating and quicker turnover. And, when it comes to volume, it should always fit the size of the room so customers don’t have to strain to speak over the noise.

Furniture & Layout

Furniture can have a big impact on the guest experience. It should fit the concept just as lighting, but needs to be inviting and comfortable. That said if you’re looking to turn tables over quickly, going too comfortable won’t be a good choice as guests will tend to stay longer.

Tables and chairs specifically should also be durable and easy to keep clean.

As for layout, tables should have enough space between them so that customers aren’t squeezed together, but close enough to retain a social atmosphere. If possible, separate small tables from large ones, because a single person or couple may be overwhelmed by the ruckus from a large group.

Personalized Service

Excellent layout and décor are only effective if the service is up to the same standard. Service staff including hosts, servers and server assistants should be attentive and polite without being stiff or overbearing. Service staff should also be knowledgeable; when asked about the menu or restaurant in general, having an answer at the ready is always best practice. Next best is making an effort to find the answer.

When keeping all these aspects in mind, it’s important to understand the organic nature of a great restaurant atmosphere. The ambiance shouldn’t be forced, but instead, develop naturally by adapting to the customers’ needs and the environment of the surrounding neighborhood. So, after putting the basic elements in place, let the ship steer itself.

Final Rule on Overtime Pay Eligibility for Salary Employees

Final Rule on Overtime Pay Eligibility for Salary Employees

by | May 25, 2016 | Business Toolkit, Management

It’s official, the U.S. Department of Labor’s (DOL) long-awaited rule on overtime pay eligibility was made final this past Monday, May 23, 2016. And, when it goes into effect on December 1, 2016, it will automatically extend overtime pay protections to over 4 million workers within the first year of implementation.

While the actual rule is 508 pages in length, the DOL released a 3-page summary, which boils down to these points:

  • Guarantees time-and-half pay to any salaried employee earning under $47,476 a year ($913 a week) and who works more than 40 hours in a week.
  • Automatically updates the salary threshold every three years, tying it to the 40th percentile of full-time salaried workers in the lowest-income Census region. The first update would be Jan. 1, 2020. Furthermore, the DOL projects a salary threshold of $51,000 by Jan. 1, 2020.
  • Makes no changes in the duties tests used to determine whether a salaried employee above the threshold is considered exempt from overtime pay.
  • For the first time, it allows certain bonuses and incentive payments to count toward up to 10 percent of the new salary level if the payments are made on at least a quarterly basis.

Several industries will be affected by this change, but there’s no doubt that the biggest impact will be on the service industry including restaurants and hospitality businesses. As such, there’s no shortage of controversy surrounding the issue.

In fact, lawmakers, employers and non-profits are joining together and calling for “immediate legislative efforts to defund, block or nullilfy the rule,” the reason being that “the threshold for exempt employees in the final regulations is still too high.”

For more information about the final rule on overtime pay for salary employees, click here →

How Skype & Digital Technology are Advancing Hospitality Hiring

How Skype & Digital Technology are Advancing Hospitality Hiring

by | May 9, 2016 | Business Toolkit, Management

Choosing hospitality as a career has some great benefits, but, in the past, the hiring process and HR in general has not been a strong point. However, that’s all changing with the advancement of digital technology specifically made for the industry.

Take Skype for example, which is being utilized to conduct interviews remotely helping job seekers to apply for more jobs and allowing businesses to expand their talent network.

Skype is the most accessible video communications technology on the market and it’s making interviews possible from any distance. One of the benefits of working in the restaurant and hospitality industry is the ability to find work in any city across the world. In any given month,

In any given month, workers who are willing to relocate are looking for these job openings, but the holdup is not being able to get in front of managers.

Skype is changing that by making it possible for hiring managers to conduct interviews with prospective applicants at any time and from anywhere.

The interview is critical in any industry, but especially in hospitality, where workers not only have to get along with co-workers but also interact with patrons.

Skype enables decision makers to assess potential hires in real-time. Not to mention, it can be used from a desktop, laptop, smartphone, or tablet.

As Skype is creating an innovative solution for interviewing, Sirvo is using technology to streamline the application process.

Sirvo is a premium recruitment service for the hospitality industry, where finding qualified applicants and choice companies to work for has never been easier. If you’re interested in learning more about our service, please contact us today at [email protected].

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