Keep it simple . . .

April 24th, 2013

Rube Goldberg DrawingThe best businesses control themselves, keep things simple, stay on track, and do not allow themselves to be overwhelmed, overloaded, or confused.  Their guests and customers are exposed to an ever-increasing daily barrage of messages daily from a million different points in the world.  In order to engage people, it’s smart to understand that there is beauty in simplicity.

That’s not to say that complexity does not sometimes work, as I was reminded when I spoke recently with the Dallas Business Journal’s Ghianda Becerril for her article Boston’s Restaurant & Sport Bar is for families, sport fans alike.

The interesting thing about Boston’s is that they operate two concepts under one roof: a family restaurant and a sports bar. They are a powerhouse in their native Canada and they are working to gain a foothold here.  Their calculation is that a better average unit volume (AUV) can be built with two concepts under one roof.  But let’s face it,  there is certainly a family dining customer who does not want their kids around a sports bar — even if it’s on the other side of a wall.  And I guarantee you there are sport bar fans who may feel a little intimidated about displaying their love of sports and alcohol in a building with kids. If Boston’s could generate the same AUV with one concept,  I’ll bet they would.

A week after I was interviewed for this article I talked about this with a high school team at the Texas State Pro Start Finals where I judged Critical Thinking in the management competition.  One of the teams had invented a concept with a restaurant downstairs, and a live music venue upstairs.  I suggested they read the article, and visit Boston’s to learn how much extra work there is in multi concept.  (Note:  My suggestion was not for them to visit the sports bar side.  We are dealing with high school students here.)

Every time you add complexity to your business it is important to understand and consider what the true benefits are. The lesson  is not to avoid complexity completely, but to recognize it for what it is, and that it’s only worthwhile when it’s paying off.  I love a complex model as much as the next guy — people who know me may say even more so.  Some people even remember when I was part of the first multi-concept nightclub in Texas back in the 80s. It had three concepts under one roof!  But these days  experience has taught me. I am wary of making things more and more complicated in pursuit of a simple goal.

The power of accelerating initiatives.

April 10th, 2013

GDRA LogoFor the third time in the past fifteen years, Surrender turned it’s organizational development expertise to the staff and board of the Greater Dallas Restaurant Association (GDRA).  Matthew Mabel and his team applied the same methodology, tools and coaching techniques used in their hospitality consultancy for clients like Original Pancake House and i Fratelli.  In fact, it was some of the same individuals who had utilized Surrender’s expertise in achieving their corporate goals who agreed that the same technique would be useful for the GDRA to accelerate many of their initiatives.  Read more here.

Mabel said, “The GDRA does a fantastic job of supporting our industry on a regional level.   Having been a board member and executive committee member, it is great to have the opportunity to be able to help them create a better environment for each team member and group to work at the top of their game.”

Your Brand: Socially Relevant or Virally Damaged?

April 3rd, 2013

 

Social Media Cupcakes

photo credit: Cakehead Loves via photopin cc

Top companies are developing precepts about what content does and does not go on social media.   These guidelines are outgrowths of training and culture.  Beyond the basics of decorum, restaurants with a more defined culture are much better at knowing what fits on social media vs. what will cause their brand to deteriorate.  So if your culture is vague or misunderstood, the time to correct that is now.

Of course we know that customers use social media to promote restaurants.  Emily Babich of the Dallas Business Journal recently covered that story:  Restaurateurs Know Where Their Bread is Buttered.

It’s a dream of all business owners that their employees would also take to Facebook, Twitter, Pinterest, Instagram and Reddit and promote their workplace.  But it’s the nightmare of all business owners that these same people could go online and damage a brand, customer relations, and for that to go viral to the point that everyone across the country is texting, tweeting and IMing about it.

I discussed the subject recently with Ron Ruggless of Nation’s Restaurant News for his article, Social Security: Employee Education, noting that social media policies are essential to brand protection.  I was reminded that the best companies avoid being a viral joke by ensuring that their people know what the brand stands for and what is both permissible and consistent with their culture.

Think of social media as a big table that exists outside of a restaurant’s dining room.  Just like at the tables where they serve guests every day, employees either represent the brand well, or they don’t.  It’s going to be a lot easier to motivate guests to increase frequency, spending, or both when every impression is a good one – no matter where the impression is made.

I’ll have the special.

October 21st, 2012

Mi CocinaPeople prefer to buy from people they like.

We like to know a little history about a business.  We like to think we are doing business in someplace special, with special people.  The most successful businesses have great stories to tell and these stories serve to engage their associates and customers in what makes their business special.

There’s this restaurant that has a great story to tell about its commitment to quality and specialness in their specific segment.  However, they have not invested the resources required to really tell that story.  So as competitors have told their own stories,  this restaurant has fallen behind and guest counts have declined.

On the other hand, I know of a restaurant that spent plenty to tell a story about its corporation and price point.  Frankly, nobody was very interested.  They had a much better, more personal story they could have told that would have been quite compelling.  They are currently under performing and are now working on a way to tell the more interesting story.

All this came to mind when Stephen R. Thompson of the Dallas Business Journal called me to comment on Mi Cocina’s expansion from Dallas / Fort Worth to Atlanta and Washington, D.C.  for his story “Mi Cocina Dips Its Chips in Eastern States.”  Mi Cocina is the biggest restaurant success story in Dallas for the last 10-15 years.

In 2009, I told D Magazine that Mi Cocina had the potential to be the El Fenix or El Chico of the 21st Century.  Considering those two brands have been around for a combined 166 years, that’s a pretty big deal.

What a great story!  Mico Rodriguez, scion of the Mia’s Tex-Mex family, left to open his own Tex-Mex restaurant with upscale cues. With the opening of its second store in Dallas’ tony Highland Park Village, the story took a big leap forward.  Mico’s late brother, Paul, who stayed behind at Mia’s used to tease, “We have better food, but he has better furniture.”  There was a lot more drama later, detailed in that D Magazine article, but that’s a story of another kind which, happily for Mi Cocina, has not attached to the brand.  The happy ending?  Mi Cocina now boasts 20 units.

So what does this mean in Atlanta and Washington, D.C.?   Well, it means real estate people are offering locations.  But it might not mean much to the consumer.  The new locations will succeed or fail based on the quality of their operations.

Which brings me back to those two restaurants I mentioned before.  It reminds us all that you can promote your business on features and benefits, but people relate more to stories.  If you doubt that the telling of your story is important, you are wrong.  The best operators know how to build that story, circulate and promote that story, invest in that story and use it to their competitive advantage.

What is your story?

What’s all that knocking?

August 1st, 2012

Compass Pointing the Way to Business OpportunityMaybe fewer people are going to Hawaii this summer, but they are still going out for a drink tomorrow night.  And the next night.  They have to have something to eat and something to wear, too.  There’s opportunity to make money in any economy.

James Jeffrey of the Austin Business Journal asked me about this and other topics for his recent piece, “Older Austin Bars Keeping Up with the New Ones.”  If you know anything about bars, this seems counter intuitive.

Another thing that seems counterintuitive  in the aftermath of the Great Recession is that bars are packed on weekend nights around here.  It is that kind of awareness that keeps the most successful entrepreneurs alive and breathing every day and looking for new deals.  They are not the people sitting on the sidelines, waiting for the outcome of the presidential election to dictate their economic future.

Look around.  Where do you see opportunity?

Whiz-bang Tech at the Foodservice Expo

August 1st, 2012

I’ve been thinking back on the recent Southwest Foodservice Expo, reflecting on the technological advances available to the industry. Which are real and which are ephemeral? Technology marches on.  Who needs a buzzer to tell you table is ready when a restaurant can text you?

I had started to think about this during the show.  Steven R Thompson captured it in his Dallas Business Journal piece, Optimism on Display at Food-Service Expo.

Rosie the RobotThe manager’s log book now has online applications in the cloud. The demo site I saw from CommLog had a lot of red on it, but I am not sure if it was connected to the famous “red book.”

Another booth featured a group who will manage your social media for you from afar, you never have to come up with an original tweet again.  Seems like there are a plethora of people who are setting up shop to do one thing or another along these lines.   I met one familiar face who is doing the same thing.  I had never met him before, but apparently we are LinkedIn.

Yet another booth featured an online comment card system that linked to social media.  The good things your fans are saying about you on comment cards automatically show up where they have online influence.  I asked them to send me some information, though I haven’t seen it yet.  I’m curious to know what happens to the message when a guest doesn’t leave an email address.  I didn’t really need an email coming back to me about my dry rice in one of their client restaurants, just wanted to let management know.

And I met Ian Jarett, founder of dangilovethat, who deserves points just for his company name.  Dang… is an online comment card that is driven from a QR code through a smart phone and feeds back your comments by server name.  Wow!  I did it at Howard Wang’s Uptown China Brasserie  and it was cool in a QR-technology-is-still-fun sort of way.

It will be interesting to see which of these are going to be ubiquitous and which will be forgotten. Feel free to share your thoughts about which are the breakthroughs and which are the also-rans.

The more things change, the more things need to change.

June 27th, 2012

Burger KingThe best operators constantly update their image, offerings and physical plant or they risk falling behind.  In a market where product changes quickly, information between customers who notice anything outdated or inferior travels even faster.

Operators who fall behind eye deteriorating circumstances and think they can get by without re-investing in their product and facilities.  They try and stretch the ROI on their previous investments further than it can realistically go.  Then they wonder why their revenue is not keeping up with inflation, or worse.

Nowhere is that more evident than in the Quick Service Restaurant segment. Take McDonald’s, the segment leader, which reportedly bet $1 billion, (yes, Dr. Evil, billion with a ‘B’), to upgrade the look of their restaurants.  It has paid off, with increased same-store sales covering the wager.

Maybe you have driven by a Burger King lately with a strange blue paint job and a roof that looked a little saggy.  That is an image that will be going away as BK catches up with a new décor package, curb appeal and menu items.  Here is a prediction:  their sales will be increasing, too.   The Burger King upgrade I noticed in Dallas was on my mind when I talked with the Dallas Business Journal’s Steven Thompson for his article, “Guillermo Perales  building a whopper of a franchise empire.”

I am not known to be a great consumer of QSR food.  I don’t know if there is really anything happy about a Happy Meal, but I know there is a lot every business person can learn from that segment. Re-investing in product and facilities is one of those lessons.

From buzzwords to best practices.

May 22nd, 2012

Best Practices Word CloudNo matter what you think of jargon and buzzwords, every business has an opportunity to succeed through people, focus, measurement and reinforcement.

Recently the term “Best Practice” proudly took its place among Forbes.com’s list of “the Most Annoying, Pretentious and Useless Business Jargon.” Best Practice was deemed “the single most pompous confection the consulting industry has ever dreamed up.”

That is how I started my Op Ed, “Beyond Buzzwords, Making Best Practices a Reality” in Nation’s Restaurant News May 14 issue.   Every industry has jargon. Often that jargon is designed to differentiate those who are in the know from those who are not.  Jargon becomes a ticket to be allowed into the game.  But since human beings like the efficiency of shorthand, no wonder there are so many acronyms, slogans and buzz words out there.

I remember standing at lunch time with a new client’s manager in his restaurant dining room.  It seemed like food was slow coming out of the kitchen. “What are your ticket times?” I asked him.

“I don’t know what a ticket time is,” he replied with a great amount of honesty and very little shame.

Six month later, through people, focus, measurement, and reinforcement, he knew what ticket times were, and a whole lot more.

4 Lessons to Mistake-Proof a Restaurant Opening

May 4th, 2012

I know a restaurant manager who says,“Mistakes are unacceptable. But I do offer forgiveness.”

That’s certainly one way of looking at it. Not my approach. I read a book that mentioned perfection. The author said it was the denial of humanity. We are all human, but what human can afford to make serious mistakes when they open a new business?

In the  April 2012 issue of Restaurant Business Magazine, and also on their web portal Monkeydish is an article titled, “Mistake Proof Your Opening.” I’m quoted talking about site selection software that used to be the provenance of the chains, and is now available to independent operators.

Sticking a finger in the windThere was a time when independents made a location decision by standing at an intersection, sticking their finger in the air and getting a feel for the wind. It is great that they can now model their successful sites, and compare them to potential sites before making that critical decision to move forward with a new unit. Top restaurant owners know these models are worth the investment.

When site selection software was first developed decades ago, there was a story circulating that, in retrospect, could have been an urban myth. It dealt with a waterfront site on Florida’s Gulf Coast that was rejected by a major multi-concept restaurant chain because there were no rooftops in an acceptable radius to the west. Turns out it was all water. The kinks have been worked out of the software since then.

What other lessons come to mind about avoiding mistakes when opening a new unit?

1. The people who do it right protect themselves by getting the capital they think they need. Then then they get a little more. That is the #1 issue. Lately food truck and pop up restaurateurs are bragging about low startup costs that are the equivalent to a unit’s cash reserve for many operators. That’s great for them – but don’t be tempted. Most of those people would jump at the chance to build a proper restaurant if they had the funding.

2. It is better to adapt to an existing site than have your wish list on design and layout. The best operators realize the value of second generation space for the cost savings it offers. Building plumbing and electrical systems from the ground up to fit your specifications drives your risk and makes target ratios for ROI harder to hit.

3. Uniqueness is key. It is great to have a better burger or steak, but the smartest restaurateurs know that having something diners want that no one in their trade area has is what truly sets them apart.

Have you over-delivered today?

May 1st, 2012

At Your ServiceI had a pizza delivery at my house last week but, sadly, the Caesar salad we had ordered was missing. No big deal, we had plenty of salad in the refrigerator and were happy to have our pizza. We needed to eat quickly to get to a basketball game. A half hour later the doorbell rang again, and the driver re-appeared to tell me, “my manager insisted I come back with this Caesar salad.”

Earlier that day I had eaten lunch in a restaurant where there was a confusing wait to get a table, a dirty dining room full of un-bussed tables and a dearth of menu items that were actually available. The manager told me, “I hope that this will not dissuade you from coming back,” which sounded to me like a punch line to an improv skit.

It is pretty well accepted that service is in decline and there are opportunitiess for the best companies to stand out from the crowd by providing this fading commodity. But the truth is, you can find pockets of good service and bad service anywhere.

Some people do it well, others don’t. Which team do you want to be on?

In the April issue of Restaurant Startup and Growth I am quoted extensively in a cover story called Star Power, How to Create a Culture of Service in Your Restaurant written by Amelia Levin. It serves as a reminder that service can be taught. Like most things, it is simply a matter of whether you put energy into your company’s service level, or not.

Another good article on this subject is the cover story of April’s Restaurantville Monthy. Putting Your Best Foot Forward, Keys to Exceptional Customer Serviceby Wendy Sari. That one features quotes from two of Surrender’s clients, Mark Davis Bailey of The Original Pancake House DFW and Estella Martinez of Matt’s Rancho Martinez.

Every business gets to decide how important service is to their overall strategy. There is no question that some companies prosper with a low-cost, low-service philosophy. But most of the people I come into contact with advocate the benefits of outstanding customer service. Like any goal that is stated but unachieved, there are simple fundamental steps that can lead to creating a culture of service. If everybody did it, there would be no more complaining about the decline of service. But there would not be a competitive advantage for providing great service, either.