Why Your Restaurant Should Focus on Kids (Hint: To Increase Profits)

Why Your Restaurant Should Focus on Kids (Hint: To Increase Profits)

by | Dec 14, 2016 | Business Toolkit, Management

Want to increase your restaurant’s bottom line?  Consider making your eatery kid-friendly. According to Bloomberg, Americans’ spending on dining out has outpaced their spending on groceries for the first time. This includes parents taking their children out to eat in restaurants. With dining out becoming more popular, catering to families makes financial sense. Kids might not eat as much as adults, but making your restaurant kid-friendly can increase your overall volume.  

Include a Variety of Kids’ Options on the Menu

Recent surveys by the American Culinary Federation show that healthy, locally grown menu items are a top choice when eating in a restaurant. This applies to parents as much as anyone else, particularly when they read news stories about the dangers of childhood obesity. Offering healthy menu items for children does not mean that you have to ditch the hot dogs, French fries and macaroni and cheese, but it does mean that adding items like sliced fruit, whole grain bread, low-fat milk and lean meats are a good idea. Parents are more likely to return to a restaurant where they know that they can feed their kids a delicious healthy meal.

With dining out becoming more popular, catering to families makes financial sense.

Pay Attention to Service

Remember that kids are customers, too. They should not just be an afterthought. Respect all customers, regardless of age. Warmly greet parents with children in tow and give them a larger table so that they have room to store all of their gear. A larger table also gives parents room to move items out of kids’ reach if necessary. If appropriate, ask the parents if their kids would like a high chair or booster seat.

Children, depending on age, want to be treated like adults and appreciate being asked directly what they would like to order. Serve kids’ meals quickly, even if the adult food is not ready. Parents very much appreciate speedy service. Show flexibility when it comes to food items, since many children these days have food allergies. Be ready to offer substitutions and give information about food ingredients if needed.

  • Make sure every bathroom has a changing station. Put a short stool under the sink so that children can stand on it when they wash their hands.
  • Offer an online menu. Parents appreciate knowing what options are available for their kids ahead of time.
  • Have kids-eat-free days. Offer a free child meal for every adult meal purchased. This is a simple way to attract more families.

Ensure that Children Have Plenty to Do 

Children become bored easily and quickly. Ensure that they have plenty to do while waiting for their food to keep them from acting out. Provide child-friendly appetizers, paper tablecloths, coloring books and crayons. Make the menus colorful, entertaining and even interactive. They might have a word search game, a crossword puzzle or a fun worksheet on the back. You can also hand these out to kids and their parents while they wait for a table.

Remember that kids are customers, too.

Consider creating a kids’ corner. It should be a place that is visible from every angle in the restaurant so that parents can see their kids at all times. Add pillows, coloring books, drawing papers, Lego blocks, reading books and other kid favorites to give children a place to play while waiting for their meal. While these areas can often be tedious to manage, they serve as great ways for parents to offer their kids distractions when patience runs short. Rotate the toys out to avoid old ones getting grimy.

Making your restaurant a child-friendly place takes a little work but is worth the effort.  Parents will appreciate it, and children will, too. They might even become lifelong customers.

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Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

If you own or manage a restaurant, according to the laws of averages, you should expect to replace almost three-quarters of your workers each year! However, you can cushion yourself against losses in productivity and profitability and reduce turnover by developing solutions based on the reasons restaurant turnover occurs.

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Restaurant Minimum Wage – What Now?

Restaurant Minimum Wage – What Now?

by | Dec 12, 2016 | Business Toolkit, Management

The Colorado Restaurant Association has been doing great keeping us all up to date in regards to Amendment 70 and how that affects our industry, here is the latest new brought to you by our friends at CRA.

Regardless of how you felt about Amendment 70 (Colorado’s minimum wage ballot initiative), most of you will be impacted by it. We have received many questions from our members about how other restaurants plan to react.

First, to clarify, Amendment 70 is a constitutional amendment that increases Colorado’s minimum wage to $12/hour and the tipped wage to $8.98/hour by January 1, 2020. The passage of this amendment raises Colorado’s minimum wage as follows:

  • January 1, 2017: $9.30/hr. Tipped Wage = $6.28
  • January 1, 2018: $10.20/hr. Tipped Wage = $7.18
  • January 1, 2019: $11.10/hr. Tipped Wage = $8.08
  • January 1, 2020: $12.00/hr. Tipped Wage = $8.98

After that time, wages will increase annually according to the Boulder/Denver/Greeley CPI. They will not decrease in the event of a recession.

What are restaurants doing to cope with these increases?

Each of you will have to determine the right mix of how you will manage this increase. When we surveyed our members on a similar increase in 2015 they responded as follows:

  • 89% will increase prices
  • 72% will reduce hours for employees – ex: keep a smaller staff for traditionally slower times
  • 71% will reduce # of employees – Some restaurants have told us that they are eliminating bussers or runners for example
  • Some may decide to add a service charge
  • Some have mentioned trying tip pooling as a way to help with pay equity

What is a service charge? What is a tip? What is a tip pool? How can I use them legally?

Under both Colorado and Federal law any charge that is automatically applied to the bill and the customer must pay, even automatic gratuities for large parties, is considered a service charge. There are very distinct differences between tips and service charges, here are just a few.

Tips:

  • Are given freely from the customer to the employee, where the customer, in his/her sole discretion, decides whether or not to tip and how much belong to the employee, not the restaurant
  • Management cannot direct the use of that money
  • Sales tax is not applied to a tip

Service Charge:

  • Is anything automatically applied to the bill
  • Is considered revenue of the business
  • Management can determine how the money will be used
  • Funds can be given to the employee but must be done through the payroll system
  • Any money given to the employee from the service charge cannot be counted towards a tip credit
  • Restaurants must collect appropriate sales tax

Tip Pool:

  • Employers may run a tip pool but they must comply with certain requirements
  • The employer must provide written notice to all employees who will be participating in the tip pool prior to their participation
  • Only employees who customarily and regularly receive tips can participate in the tip pool. According to federal law, servers, counter personnel, bussers, and service bartenders can clearly participate.
  • Those that can’t participate are owners, managers, supervisors, janitors, dishwashers, chefs, cooks, and food prep personnel
  • If you are thinking about organizing a tip pool, please contact the CRA to ensure you are administering it correctly

Is there a chance that we can correct the flaws with amendment 70 by altering the tipped wage or adding a learning wage?

We believe that to be nearly impossible. Only one time in the last 100 years was something added to our constitution and later removed – prohibition. In order to change the constitution – as we saw with amendment 70 – we would need to raise millions of dollars just to get it on the ballot – and another several million to educate the public.

For this issue – many of our members who were adamantly opposed to it didn’t give to the campaign to defeat this. Meanwhile, the unions who initiated this have very deep pockets and would fight it heavily.

Going forward…

While this will be a difficult adjustment for a lot of businesses, it is what it is and those who have already started the process will be ahead of the game. It is always a struggle to balance the cost of doing business and providing a fair and liveable wage. We want our staff members to have a good quality of life, but we also want to make sure our doors are open to do so. These are interesting times right now for the industry and despite it all, we will go forward.

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Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

If you own or manage a restaurant, according to the laws of averages, you should expect to replace almost three-quarters of your workers each year! However, you can cushion yourself against losses in productivity and profitability and reduce turnover by developing solutions based on the reasons restaurant turnover occurs.

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Developing Your Restaurant HR Strategies

Developing Your Restaurant HR Strategies

by | Dec 6, 2016 | Business Toolkit, IndiTips, Management

With the new year just around the corner, it’s time to review the numbers from the last 12 months, identify where to improve and set goals and expectations for 2017. As you look at this past year, metrics relating to human resources, including hiring, scheduling and the like, will most certainly be under the microscope, as they should be. The hospitality industry as a whole suffered from a 72% turnover rate in 2015 and while numbers haven’t been compiled yet for 2016, we anticipate an increase for a sixth year in a row.

With this in mind, your HR strategies moving forward need to be optimized and that’s why we’re laying out a few of the best digital solutions to help you make this next year a great one for business.

Restaurant Accounting Solutions, Inc. (RASI)

RASI’s goal is to free operators from behind-the-scenes activities, such as payroll and inventory, so that they can focus on their guests and employees. RASI has a variety of digital solutions, HR and otherwise, that can help ensure the success and financial wealth of their clients.

Their HR-related software includes payroll and taxes as well as staff performance and knowledge, which ranges from onboarding and training to HR compliance. RASI’s tools can optimize your staff-related programs so that your customers are satisfied and your cash register full! Check out their restaurant solutions here.

ZUUS Dynamic Scheduling

As the name suggests, ZUUS’s software is focused on staff scheduling with the main goal of reducing your customer wait times and driving profit. ZUUS not only provides restaurant and hospitality employers with a staff scheduling tool but does so by incorporating customer and sales demand forecasts for ultimate precision.

ZUUS also includes performance management reporting so you can optimize regardless of business changes. ZUUS can help improve staff morale, reduce staff turnover and maximize revenue. Learn more about their platform here.

HyprLoco

HyprLoco is all about personalizing the customer experience by understanding who is in your store in real-time, then providing staff with intelligence so everyone is treated as a regular, whether it’s their first or hundredth visit. HyprLoco’s software analyzes customer data and integrates with your POS systems, mobile apps and digital menu boards enabling team members to provide personalized service from upsell items to promotions.

This not only delivers an exceptional guest experience but also sets your staff up for success and successful employees are happy employees! Find out how HyprLoco can help your HR strategies here.

Sirvo

While RASI, ZUUS and HyprLoco provide solutions for current employee strategies, Sirvo focuses on securing your future employees. With the goal of increasing employee retention and reducing cost per hire, Sirvo provides hospitality-related businesses with intuitive and robust recruitment services.

On the Sirvo platform, hiring teams can post open positions to their media-rich company pages, which are automatically distributed across Sirvo’s partner networks including Indeed, Glassdoor and Zip Recruiter, ensuring your jobs have high visibility. In addition, employers are able to source potential hires by utilizing the search candidates feature, maintain a streamlined process with the applicant tracking system and speed up candidate communication via the messaging hub.

Beyond the app, Sirvo can also turn your website and Facebook page into recruitment tools with a custom career page and Facebook jobs tab add-on. See what Sirvo’s hiring services can do for your restaurant, retail or hospitality business.

Regardless of your specific HR goals for the year ahead, utilizing these software solutions can help your business achieve its bottom line. From hiring and onboarding to scheduling and performance, there is always room for improvement so why not make this upcoming year one in which you optimize your strategies and grow your company!

Learn how Sirvo can help you!

Cut costs and increase employee retention with Sirvo’s tools and services.
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How Restaurants Can Prevent Employee Burnout and Reduce Turnover

How Restaurants Can Prevent Employee Burnout and Reduce Turnover

by | Dec 2, 2016 | Business Toolkit, Management

Workplace burnout is a serious problem in the hospitality industry, as many restaurants are on a bootstrapping budget. Often, it is the most dedicated and hardest working employees who succumb to burnout, leaving restaurants with difficult-to-fill voids. To better prevent employee burnout, an understanding is needed, backed by a well-thought-out plan of retention.

“Even if companies haven’t literally lost their employees, many have lost them psychologically.” – Jon Gordon

Scope of Workplace Burnout

The findings from a recent study of 3,000 employees in the US and Canada, sponsored by Staples Inc., sheds light on the magnitude of business burnout:

  • 91 percent of employees say they work more than forty hours per week.
  • 65 percent cite feeling pressure at home that is a carryover from their jobs.
  • Working more hours to stay afloat is a pressure that causes many Americans to mentally check out of their work lives.
  • Frustration and cynicism are often the two main hallmarks of occupational burnout.

Perhaps the most interesting fact presented was that 59 percent of workers state that being encouraged to take breaks by supervisors helped to decrease their feelings of burnout, whether they actually took a break or not.

The response to the act of showing concern is an indicator that the Golden Rule, or law of reciprocity, is still the most important guiding principle in life and business. Simply, treat others as we want to be treated.

With this in mind, the Staples study lists the three simple “perks” that employees value above all others as wellness programs, comfortable break-rooms with technology and fresh snacks and beverages.

The Purpose-Driven Workplace

For nearly a decade, studies have consistently indicated that employees want to work for companies with a purpose. Employers that can facilitate this (marginally tangible) request seem to have better retention rates. Differentiating on this point translates favorably in today’s lean business model.

“A lack of purpose goes deeper than simple business burnout.” – Dan Pontefract

Of course “purpose” means different things to different employees but Dan Pontefract, author of The Purpose Effect, provides the following guidelines.

Be appreciative. Restaurants that have successfully implemented programs focused on rewards and recognition of their employees have reported better productivity, stronger engagement, retention, and loyalty. Cracker Barrel, for example, has a strong rewards and recognition program and boasts improved turnover rates.

Be engaging. Sharing organizational goals and plans with every team member, no matter their role, creates a feeling of purpose. In and Out Burger is one chain praised by current and former employees for its positive work environment.

Be ethical. This is key to an organization’s integrity. It says to employees and customers that the company is taking responsibility. This fosters a sense of pride in the company for the employee.

Be fair. When a culture based on fairness permeates the entire organization, the results are improved “people practices” throughout. Make sure that your organization has a level playing field for all employees to succeed and advance. Restaurants like Five-Guys and TGI Fridays consistently top lists of the “best restaurants to work” because they promote heavily from within. These brands also offer benefits that help any employ with the desire, advance to higher levels in the company.

Be inclusive. Identify and recognize all that are affected by your company, including clients, employees, families, community, and beyond. Next, seek ways to serve all these entities as stakeholders and acknowledge each group as an integral part of your success.

Be flexible. When possible allow employees the opportunity to self-schedule. This has been shown to increase employee satisfaction which is the number one driver of productivity.

Employees are the single most valuable asset of your business. Understanding when and how to show that you value your employees is imperative in management and retention. This will reflect outwardly in terms of productivity and workplace satisfaction. In the lean business economy of today, there is no easy solution for employee burnout. With these strategies, however, companies can move toward increasing employee engagement and satisfaction as well as improving retention.

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Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

Employee Turnover: Get Ready, It Happens — 5 Ways To Slow It Down

If you own or manage a restaurant, according to the laws of averages, you should expect to replace almost three-quarters of your workers each year! However, you can cushion yourself against losses in productivity and profitability and reduce turnover by developing solutions based on the reasons restaurant turnover occurs.

read more

Experience Sirvo for yourself

Sign up now to find hospitality jobs and hire top industry talent.
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5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

by | Nov 30, 2016 | Career

It used to be that men and women in their twenties would work in the hospitality industry only as a temporary job, something to get them through college or to help them transition from part-time work to their “real job”. But things are changing. 

Many millennials are discovering that the hospitality industry is actually a great place to launch their careers. If you’re trying to figure out your career path, or are a manager working on a hiring plan, here are 5 reasons why the hospitality industry is a viable career option for millennials.

1. Social engagement

Contrary to the seemingly obsessive nature with all things technological, members of the millennial generation actually thrive when they are in social situations. The hospitality industry suits this desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities or social functions.

Many millennials do not want to be tied down to a computer all day long–they would rather spend their day having meaningful interactions. Which is exactly what you would encounter when working in hospitality.

2. We are motivated by our passions, not money

Millennials are unique in many ways, including the desire to have a fulfilling career instead of just working for a paycheck. Millennials are more likely than any other generation to turn down a higher paying job if it isn’t going to fulfill them on a personal level.

The hospitality industry isn’t exactly known for paying out maximum incomes, but it is known for providing a place where workers can grow and thrive. As an industry that provides a work/life balance, a livable wage and an opportunity to continue learning, this could be the right place for you!

The hospitality industry suits our desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities

3. We want to grow in our careers

Millennials don’t expect to work for one company for 45 years and then retire, like previous generations did. In fact 91% stated they plan on staying at their current employment less than three years. The key here is that they don’t necessarily want to switch companies. They want to grow in their careers, and in many industries, they just can’t do that at one company.

The hospitality industry, though, can be different. There are a wide range of professional opportunities within the hospitality industry that foster professional growth (i.e. Management, Marketing, HR, etc.)

4. We are engaged with what’s happening online

Millennials are very comfortable with technology and interact with it on a daily basis. This can be a huge gain for the hospitality industry, which is starting to catch up to other industries when it comes to being tech-savvy. Millennials can help the hospitality industry move forward technologically by being tuned into how people are using social media, reviews and apps to find restaurants and hotels.

Being tech-savvy can work to your advantage. Especially if you are seeking opportunities in marketing or social media management within the hospitality industry.

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and they want to help people.

5. We want to help people

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and have a need to help people. We want a rewarding career that allows us to give back to our community. Millennials are not clock-watchers — we don’t want to punch in at 8 and out at 5 just in the name of getting a paycheck.

Motivated millennial employees can take your restaurant, bar or hotel to the next level with their social understanding and tech skills, so don’t underestimate them. And if you’re a millennial employee, don’t underestimate the career opportunities that await you in the hospitality industry. This is a great industry that supports the quality of life that most of us want to have outside of work due to the non-traditional work schedule and the opportunities to make a livable wage. 

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