change your culture or die - restaurant owner · 2015-10-15 · was it a hiring mistake? what...

Change Your Culture or Die ‐Webinar Handouts 8/27/2015

Copyright © 2015 RestaurantOwner.com 1

Change Your Culture or Die

We will be starting the webinar shortly!!

YOUR HOSTSYOUR HOSTS

JOE ERICKSONRESTAURANTOWNER.COM

JIM LAUBERESTAURANTOWNER.COM

INDEPENDENT RESTAURANTCHALLENGESINDEPENDENT RESTAURANTCHALLENGES

Staffing

Minimum (living) wage initiatives

Employee attitudes & work ethic

Competition

Technology

Demographic changes

Gov’t regulations / compliance



COMMENTS & QUESTIONSCOMMENTS & QUESTIONS

WHAT’S YOUR #1 CHALLENGE?WHAT’S YOUR #1 CHALLENGE?

QUESTIONQUESTION

What does “Culture” mean to you?



OUR DEFINITION . . .OUR DEFINITION . . .

Culture is how your people . . .

Think & Act

EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS

Kingsport, TN

Austin, TX New York, NY

Ann Arbor, MI

“The biggest driving force in our restaurants in our culture.”

David McClaskey, PresidentPal’s BEI

CULTURECULTURE



CULTURECULTURE

“Culture is everything!”

“Our culture gives us the tools to ride the waves, the inevitable challenges, we face in this business.”

Danny MeyerUnion Square Hospitality Group

WHAT WE DOWHAT WE DO

1. Business Management

2. Systems

3 Core Competencies

3. Culture

3 Core Resource Areas

WHAT DRIVES RESTAURANT RESULTS?WHAT DRIVES RESTAURANT RESULTS?

Guest Experience

Sales $ Profit $Costs & Expenses- =


Financial Results – P&L

AccountingCash Management

Budgeting

Marketing

Financial Statements

Inventory Mgt.

Strategic ThinkingCost Controls



WHAT DRIVES THE GUEST EXPERIENCE?WHAT DRIVES THE GUEST EXPERIENCE?

Guest Experience

What’s the MOST important part of the guest experience?

ANSWER: Consistency & Repeatability


Guest Experience

How do you create Consistent / Repeatable Guest Experiences?


Guest Experience

Good Employees

2. Systems

3. Culture

“How people think & act”

Cooperation

Smiles

Trust

EnthusiasmRespect

Extra effort

Caring




Guest Experience

Good Employees

2. Systems

Checklists

Recipes

Procedures

FormsStandards

Guidelines

Training Manuals

Hiring Process


Guest Experience



2. Systems

3. Culture

Good Employees


Guest Experience



2. Systems

3. Culture

Good Employees

What’s the ENGINE that powers your RESULTS?



WHY IS CULTURE SO CRUCIAL?WHY IS CULTURE SO CRUCIAL?

Your People

Service

Speed/Timing

Hospitality

ConsistencyFood & Beverage

Cleanliness

Complaints

Your PEOPLE Drive Your

Guest Experience

Accuracy

3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS

1. Find out what they want

2. Go & get it

3. Give it to them

Food, beverage, atmosphere, look, service style, price, cleanliness, speed

Location, facility, design, ambience, menu, recipes, quality, staff

Execution, consistency, training, timing, service, hospitality, business management

Startup

Is it a “Good Restaurant?”

Is it a Good Business?

CULTURE

WHERE CULTURE CHANGE CAN HAVE

THE GREATEST IMPACT

WHERE CULTURE CHANGE CAN HAVE

THE GREATEST IMPACT

Independent owners who have built a good RESTAURANT and now have a strong desire to make it a GREAT BUSINESS.



WHAT BUSINESS ARE YOU REALLY IN?WHAT BUSINESS ARE YOU REALLY IN?

Success in the restaurant business is ultimately about the experiences you provide your guests

“AND” employees.

You’re in the EXPERIENCE business!


THE GUEST EXPERIENCETHE GUEST EXPERIENCE

High Positive

So So Little to None

None Negative

Extraordinary

Bad

Good / Average

Loyalty WOM



WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?

Guest Experience


Guest Experience

Employees

WHAT DRIVES YOUR GUEST EXPERIENCE?WHAT DRIVES YOUR GUEST EXPERIENCE?


WHAT DRIVES YOUR EMPLOYEES?WHAT DRIVES YOUR EMPLOYEES?



WHAT HAPPENED?WHAT HAPPENED?

Did they lose their ability to do the job?

Was it a hiring mistake?


What if the employee experienced . . .

Minimal training

Nobody cared

No feedbackNo recognition

Unfriendly

Low standards

Little support

Started on a Friday


The employee likely experienced . . .

A Negative Culture



WHY CULTURE?WHY CULTURE?

What kind of employees do you need to produce better guest experiences and better results?

CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE

• Cooperation

• Enthusiasm

• Smiles

• Teamwork

• “What else can I do?”

• Flexibility

• Respect

• Accountability

Strong Culture ‐

Engagement

CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE

Weak Culture ‐

• Cover your tail

• Blaming others

• “It’s not my job”

• Mediocrity

• Criticism

• Distrust

• Excuses

• Whining & complaining

Indifferent people cannot deliver extraordinary guest experiences

Indifference

Indifferent people create an environment where “nice” people

don’t want to work



Culture drives yourEmployee Experience

IMPACT OF CULTUREIMPACT OF CULTURE

RO SURVEY RESULTSRO SURVEY RESULTS

69%


63%




Very Challenging 55%

THE IMPACT OF CULTURETHE IMPACT OF CULTURE

Guest Experience

Employee Experience


Culture produces Results

CONCLUSIONCONCLUSION

(The thinking & actions of your people are producing your RESULTS)



Stop focusing on financial performance!


(Instead, concentrate your efforts on changing your CULTURE)

Primary job of a leader is to create the right CULTURE to get the

RESULTS you want


(Your CULTURE is producing your results)

LEADERSHIPLEADERSHIP

When you create a strong Culture, you become a great

leader by default!



HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS

“Do this . . .”

VALUES

ACTIONS


Management “Do this . . .”

VALUES

ACTIONS“Do this”


“Do this . . .”

VALUES

ACTIONS



You can’t change people’s VALUES (beliefs)

You can’t read people’s minds

You can’t measure change in people’s thinking

THE CULTURE CHANGE PROCESSTHE CULTURE CHANGE PROCESS

VALUES

ACTIONS

Misunderstandings about working on VALUES (beliefs):

How do things REALLY work around here?

What does the owner REALLY care about?

What should I REALLY look out for?

When the New Employee asks . . .

COMMONLY HELD BELIEFS IN YOURRESTAURANTCOMMONLY HELD BELIEFS IN YOURRESTAURANT

Mgt doesn’t care about food cost

Food cost doesn’t affect me

No one notices missing products

This restaurant is highly profitable

My ideas don’t matter

VALUES / BELIEFSVALUES / BELIEFS

Desired RESULT: Lower Food Cost -



Management provides the EXPERIENCES that promote the VALUES (beliefs) in the

restaurant

VALUES / BELIEFSVALUES / BELIEFS

EXPERIENCES

ACTIONS

VALUES

Current Beliefs: Mgt doesn’t care about food cost

Food cost doesn’t affect me

No one notices missing products

This restaurant is highly profitable

My ideas don’t matter

Desired RESULT: Lower Food Cost -

BELIEFSBELIEFS

Current Experience: Mgt doesn’t measure food cost

Food cost is never or rarely discussed

Products are never counted

Owner has a new BMW

Mgt never asks me for ideas

How to you change VALUES/BELIEFS?

THE RESTAURANT CULTURECHANGE PYRAMID


ACTIONS

VALUES

EXPERIENCES





EXPERIENCES

ACTIONS

VALUES



EXPERIENCES

ACTIONS

VALUES



ACTIONS

VALUES

EXPERIENCES

Management“Do this . . .”

Leadership

Culture



THE LAW OF CAUSE & EFFECTTHE LAW OF CAUSE & EFFECT

Your restaurant’s current results are “PERFECT”

The “CAUSES” are creating predictable “EFFECTS”

CAUSES – Leader’s values, beliefs, decisions, actions.

EFFECTS – Team’s experiences, values, beliefs, actions.

3 WORLD CLASS STRATEGIES

1. Mission

2. Rules of the Game

3. The 90 Day Challenge



EXPERIENCES

ACTIONS

VALUES

90 Day Challenge

MissionRules of the Game



MISSION

Why does your restaurant exist?

What do you want to accomplish?

What would your employees say?What would your employees say?

MISSION

Why EVERY Restaurant Needs a Mission?

Gives meaning & purpose to every activity

Provides a “high performance challenge”

Becomes the basis for standards & accountability

Will help you pull your people together as a team

Will help you recruit & retain the right people

MISSION

1. What your company does

2. Who you do it for

3. Result(s) you want to achieve

Should contain 3 elements ‐

Must be: Clear & Succinct



MISSIONMISSION

“To nourish and delight everyone we serve.”

“Our mission is to become world famous by delighting one guest

at a time.”

MISSIONMISSION

“To guarantee that every guest is delighted because of me.”

MISSIONMISSION



“Our mission is to thoroughly delight our guests through such unparalleled hospitality, service and culinary excellence that they will rave about their experiences and have no

choice but to return.”

MISSIONMISSION

MISSIONMISSION

MISSION STATEMENT COMPONENTSMISSION STATEMENT COMPONENTS

Pal’s Sudden Service ‐

What they do To delight . . .

Who for our customers . . .

Result . . . creates loyalty.



MISSION

What does your restaurant do?Is it clear what your restaurant does?

Who do you do it for?Is it clear who you do it for?

What result do you most want to achieve?Is it clear what result you want to achieve?

Crafting your mission ‐

IMPLEMENTING YOUR MISSION

1. COMMUNICATE the mission

Owners & managers must ‐

COMMUNICATING YOUR MISSION

Interviews

Orientation & training sessions

Training manuals, handbooks

Management meetings

Pre‐shift meetings

Decision‐making discussions

Whenever the opportunity arises



IMPLEMENTING YOUR MISSION

1. COMMUNICATE the mission

2. MODEL the mission

3. COACH the mission

4. PRAISE progress toward the mission

5. REDIRECT resistance/roadblocks to the mission

Owners & managers must ‐

MORE REASONS YOU NEED A MISSION

Will greatly enhance your leadership effectiveness

Becomes the impetus for continuous improvement

It’s obvious who should leave

Can make working at your restaurant more than just a job

It becomes easier to manage & coach your people

MISSIONMISSION

“It makes it very easy to sit down with people to discuss what your standards are based on your mission statement without emotion. When you take out that emotion, there is no more stress when you know you have to discuss disciplining your employees.”

Brian Bailey, Owner & ChefThe Bistro at Marshdale



“You say, Listen, we’ve had this discussion, you know what our business is about. If you’re not showing up on time we can’t provide the customer experience that we say we’re going to provide. If you don’t have the right attitude, then it doesn’t match our mission.”

Brian Bailey, Owner & ChefThe Bistro at Marshdale

MISSIONMISSION

3 WORLD CLASS STRATEGIES

1. Mission

2. Rules of the Game

All Organizations Need a Framework of Rituals & Rules

What’s acceptable and not acceptable

How things are done

What is expected of everyone

How we interact with each other

How we hold each other accountable

RULES OF THE GAMERULES OF THE GAME



MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”

SAFE

According to a 2011 Monster.com survey . .

“66% of respondents admitted to being a victim of workplace bullying”

MANY WORKPLACES ARE NOT SAFE ZONESMANY WORKPLACES ARE NOT SAFE ZONES

SAFE

Honesty

RespectCourtesy

Transparency

Trust

Caring

Consistency

MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”



CREATING A “SAFE ZONE”CREATING A “SAFE ZONE”

Customers will never love a company until the employees love it first.

- Simon Sinek

HAVE YOUR OWN

“RULES OF THE GAME”HAVE YOUR OWN

“RULES OF THE GAME”

1. Do your best

2. Do the right thing

3. Show people that you care

Basics

Goal is to create a climate for cooperation, transparency and hospitality to thrive.

Goal is to create a climate for cooperation, transparency and hospitality to thrive.

HAVE VALUES THATEVERYONE IS TO LIVE BY

At LongHorn Steakhouse our Core Values are the ruling cornerstone behind every decision we make. We believe in them and manage our restaurants accordingly.

We treat each other with DIGNITY, RESPECT, HONESTY and INTEGRITY.

We hire GREAT PEOPLE, we set CLEAR EXPECTATIONS, we provide regular feedback and we CELEBRATE great performance.

We function as a TEAM, "we all look good together, we all look bad together."

We are COMMITTED to continuous TRAINING and DEVELOPMENT.

We ACT GUEST FIRST, we DO IT RIGHT or FIX IT FAST.

We believe in CONTINUOUS IMPROVEMENT, in getting better day‐by‐day and shift‐by shift.

We are a GOOD BUSINESS CITIZEN…we follow the law and we POSITIVELY CONTRIBUTE to our community.



BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT


K&N Management ‐

Friendly

Engaging

Authentic

Harmony

Strong work ethic



Pal’s Sudden Service “No Gossip” Rule ‐

Talking about team members when they aren’t there

Anything you wouldn’t say to a person’s face

Why? Can be disruptive to work climate, morale, teamwork

Gossip can affect the mission

3. THE 90 DAY CHALLENGE3. THE 90 DAY CHALLENGE

Create a New Accountability Structure ‐

Everyone is responsible for finding & reducing waste

Everyone is responsible for delighting the guest

For the next 90 days, everyone responsible for 2 new ideas a month to reduce waste or delight our guests

The status quo is not an option



** CAUTION **** CAUTION **

Please do NOT embark on ANY culture change initiative unless you are 100% committed to seeing it through!

GAUGING YOUR CULTUREGAUGING YOUR CULTURE

On a 1 to 10 scale, how would you rate your restaurant’s culture today?

GAUGING YOUR CULTUREGAUGING YOUR CULTURE

1. In the last seven days, have you received recognition or praise for doing good work?

2. Do you feel someone in management cares about you as a person?

3. Do you feel like your job matters?

4. Do you feel like you’re in on things and know what’s going on in the restaurant?

5. In the last six months, has someone talked to you about your progress?

How would your employees answer these questions?

* From The Gallup Organization Q12 Survey



CHANGING YOUR CULTURECHANGING YOUR CULTURE

What’s one thing that you could begin doing or stop doing now that would improve your culture?

What type of changes in your restaurant would you expect to see if your culture rating moved up a few points?

CHANGING YOUR CULTURECHANGING YOUR CULTURE

WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?


Guest Experience




Guest Experience


Employee Experience

Culture



CultureChange Your Culture. Change Your Results.

Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture to Create More Loyal Guests & Positive WOM

Dates: October 12-14, 2015

Location: San Antonio, Texas

RestaurantOwner.com/culture

3 DAY WORKSHOP3 DAY WORKSHOP



SAN ANTONIO WORKSHOP – MAY 2015SAN ANTONIO WORKSHOP – MAY 2015

With 35 years in the restaurant and hotel business, this was the best and most impactful workshop I've attended. The subject matter is so relevant and important today and is becoming more and more so. It is a subject that many put words to but I've never experienced before getting a detailed step by step road map to implement successfully. If one has the desire to improve their culture this will give you all the tools. We saw meaningful results within weeks.

Gene SingletonThe Boat HouseBaltimore, MD

COMMENTS FROM MAY

WORKSHOP ATTENDEESCOMMENTS FROM MAY

WORKSHOP ATTENDEES

Thank you for sharing all this information at your workshop, it was the best workshop I have ever been to. There are no guarantees in the hospitality industry, but following the guidelines from this workshop is as close as it will ever get. We have shared our P&L’s with you and I am pleased to tell we will exceed our expectations this year. It has been directly affected by our New Culture, Systems & Positive WOM. We are currently ranked #1 & 2 on Trip Advisor. Our Staff continues to learn and grow every day.

Bob TheszNew England Fish Market & RestaurantJensen Beach, FL

COMMENTS FROM MAY


WORKSHOP ATTENDEES



The culture at Petra was mediocre when we started this journey. When we focused on creating a culture of accountability, it was like a weight had been lifted off everyone’s shoulders. Smiles became part of our uniform! Our guests have noticed the change! Our reviews on Yelp, Facebook, Google and Trip Adviser are consistently better and our guest service is mentioned often! So not only is our team proud of the improvements, but our reputation has grown into one of excellent service. Our loyal guest count continues to grow each week and we see many new faces coming to experience Petra.

Bonnie LongPetra Restaurant VenturesMcKinney, TX

COMMENTS FROM MAY


WORKSHOP ATTENDEES

Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM






Success in the restaurant business is ultimately about the experiences you provide your guests

“AND” employees.



Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM





change your culture or die - restaurant owner · 2015-10-15 · was it a hiring mistake? what...

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