ordinary to extraordinary - restaurantowner.com

3/19/2015

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Ordinary toExtraordinary

How to Transform Your Restaurant Into a World Class Business

Have you ever had an “extraordinary” restaurant

experience?

ORDINARY VS. EXTRAORDINARYORDINARY VS. EXTRAORDINARY

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What made it “extraordinary”?


What did you do after having that extraordinary experience?

1. Did you tell anyone?


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THE GUEST EXPERIENCETHE GUEST EXPERIENCE

92% of customers worldwide trust recommendations more than any other form of advertising (up from

74% in 2007).

Source: WOMMA Survey

What did you do after having that extraordinary experience?

1. Did you tell anyone?

2. Did you return?


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THE GUEST EXPERIENCETHE GUEST EXPERIENCE

High Positive

So So Little to None

None Negative

Extraordinary

Bad

Good / Average

Loyalty WOM

KEY POINTKEY POINT

The two things you want most to happen after a guest leaves, loyalty and positive WOM, depends entirely on . . .

Your “Guest Experience”

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WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?

Guest Experience

Sales $ Profit $Costs & Expenses- =

Financial Results

QUESTIONQUESTION

Have you ever had an extraordinary experience more

than once

. . . at the SAME RESTAURANT?

How did they do it?

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CREATING EXTRAORDINARYEXPERIENCES REQUIRESCREATING EXTRAORDINARYEXPERIENCES REQUIRES

Effective Systems

Good People

Effective Systems

Good People

CREATING EXTRAORDINARYEXPERIENCES REQUIRESCREATING EXTRAORDINARYEXPERIENCES REQUIRES

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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

Startup

GUESTEXPERIENCE

TO CREATE EXTRAORDINARYEXPERIENCESTO CREATE EXTRAORDINARYEXPERIENCES

Effective Systems

Good People3. Give it to themExecution, systems, consistency, training, service, hospitality

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WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?

Guest Experience


Financial Results

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

Your People

Service

Speed/Timing

Hospitality

ConsistencyFood & Beverage

Cleanliness

Complaints

Your PEOPLE Drive Your

Guest Experience

Accuracy

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

Guest Experience


Your People

SO WHAT DRIVES YOUR PEOPLE?SO WHAT DRIVES YOUR PEOPLE?

Your Culture

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WHAT IS CULTURE?WHAT IS CULTURE?

Culture is how your people . . .

Culture determines what it’s like to work in your restaurant & how well your people perform.

Think and Act

CULTURECULTURE

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WHAT HAPPENED?WHAT HAPPENED?

Did they lose their ability to do the job?

Was it a hiring mistake?

WHAT HAPPENED?WHAT HAPPENED?

Was it due to a negative culture?

Minimal training

Nobody cared

No feedbackNo recognition

Unfriendly

Low standards

Little support

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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

SURVEY: WHY CUSTOMERS QUITSURVEY: WHY CUSTOMERS QUIT

• 3% move away

• 5% develop other relationships

• 9% leave for competitive reasons

• 14% are dissatisfied with the product or service

• 68% leave due to a perceived attitude of indifference of an employee

Indifferent employees may be silently killing your restaurant

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CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE

• Enthusiasm

• Cooperation

• Smiles

• Teamwork

• “What else can I do?”

• Flexibility

• Respect

• Accountability

Strong Culture ‐

Engagement

EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS

Kingsport, TN

Austin, TX New York, NY

Ann Arbor, MI

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26 QSR restaurants based in Kingsport, TN

Started in 1956

Drive thru only

1,100 square feet

Awarded the Malcolm Baldrige National Quality Award in 2001


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EXTRAORDINARY RESULTS! EXTRAORDINARY RESULTS!

98% customer satisfaction

no specials or coupons

service times 4 times faster than top competitor

4 times repeat business than closest competitor

1 complaint per 3,500 orders (10 times better)

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EXTRAORDINARY RESULTS!EXTRAORDINARY RESULTS!

Average $1,700,000 annual sales per unit

Over $1,500 sales per foot!

Top grossing restaurant does $3,400,000 (over $3,000 PSF)


4 franchised BBQ restaurants in Austin, TX

3 times the sales of other Rudy’s

Breakfast alone equals what an average McDonald’s does all day

4 fast casual burger restaurants in Austin, TX

$3,500,000 to $4,000,000

Approximately 3,000 square feet

K&N Management – Austin, Texas

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EXTRAORDINARY RESULTS!EXTRAORDINARY RESULTS!

“Our sales at Rudy’s and Mighty Fine Burgers stores are now two‐and‐a‐half times what they were when we started [working with Pal’s].”

Ken Shiller, Co‐Owner

UNION SQUAREHOSPITALITY GROUP


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Opened 1985

Opened 1994



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MOST POPULAR RESTAURANTSIN NEW YORK CITYMOST POPULAR RESTAURANTSIN NEW YORK CITY

#2 in 2013#1 - 9 Straight Years



Sales over $7,000,000!

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ZINGERMAN’S DELIZINGERMAN’S DELI

Paul & Ari

Opened 1982

Sales > $14M

ZINGERMAN’S DELIZINGERMAN’S DELI

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It’s not about what you do,but rather, how you do it.


“All” credit their extraordinary success to their CULTURE!

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

David McClaskey, PresidentPal’s BEI

CULTURECULTURE

“Sometimes I get that itch that maybe it’s time to step up and expand faster. But we want to make sure that we hand off all the cultural pieces to each store. I see operations that outgrow their cultures.

They can’t pass on their culture so they go from a really great concept with great people to weaker and weaker operations and people who don’t understand the origin of the culture.

We’re always asking how we can ramp up but transfer the culture to the new leaders and other team members coming into the company.”

Thom Crosby, CEOPal’s Sudden Service

CULTURECULTURE

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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

THE POWER OF CULTURETHE POWER OF CULTURE

Union Square CafeGramercy Tavern

“I love your restaurants and the food is fantastic. But what I really love is how great

YOUR PEOPLE are.”

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WHAT DOES A STRONGCULTURE LOOK LIKE?WHAT DOES A STRONGCULTURE LOOK LIKE?

StrongCulture

Simple, Powerful Mission Statement

Clear Vision

“I Understand My Role and Purpose”

Clear Expectations

Behavior Norms Inflexible Core Values

Effective Communication

HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS

RESULTS

ACTIONS

BELIEFS

Management “Do this . . .”

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How do things REALLY work around here?

What does the owner REALLY care about?

What should I REALLY look out for?

What should I REALLY be sure and NEVER do?

When the New Employee asks . . .

COMMONLY HELD BELIEFS IN YOURRESTAURANTCOMMONLY HELD BELIEFS IN YOURRESTAURANT

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

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RESULTS

ACTIONS

BELIEFS


EXPERIENCES

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

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RESULTS

ACTIONS

BELIEFS


Leadership

EXPERIENCES


Leadership intentionally creates the employee EXPERIENCES that promote the right BELIEFS.

The BELIEFS that inspire the employee ACTIONS that produce the desired RESULTS.

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RESULTS

ACTIONS

BELIEFS


Leadership “What else can I do?”

EXPERIENCES

3 WORLD CLASS STRATEGIES

1. Mission

2. Rules of the Game

3. The 90 Day Challenge

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RESULTS

ACTIONS

BELIEFS

90 Day Challenge MissionRules of the Game

EXPERIENCES

MISSION

Why does your restaurant exist?

What do you want to accomplish?

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

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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

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MISSIONMISSION

“To nourish and delight everyone we serve.”

“Our Restaurant’s mission is to leave a smile upon our customer’s face and a feeling of great satisfaction when they

leave the restaurant.

We do this through superior quality food, superior customer service, sales growth, cost controls and treating our employees

like family.

We believe that our employees are our most important resource and our success depends upon creating and retaining a staff capable of delivering an exceptional dining experience

to every customer, every time.”

MISSIONMISSION

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“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

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“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

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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 ‐

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IMPLEMENTING YOUR MISSION

1. COMMUNICATE the mission

Owners & managers must ‐

COMMUNICATING YOUR MISSIONCOMMUNICATING YOUR MISSION

Interviews

Orientation & training sessions

Training manuals, handbooks

Management meetings

Pre‐shift meetings

Decision‐making discussions

Whenever the opportunity arises

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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 MISSIONMORE 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

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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

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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

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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

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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

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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 excellence to thrive.

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

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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

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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

GAUGING YOUR CULTUREGAUGING YOUR CULTURE

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

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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?

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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

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Guest Experience


Employee Experience

Culture



CultureChange Your Culture. Change Your Results.

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3 DAY WORKSHOP3 DAY WORKSHOP

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

Dates: May 18 - 20, 2015

Location: San Antonio, Texas

RestaurantOwner.com/culture

CULTURE: FINAL THOUGHTSCULTURE: FINAL THOUGHTS

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

employees & guests.

ordinary to extraordinary - restaurantowner.com

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