Change Your Culture or Die

Transcription

1 Change Your Culture or Die We will be starting the webinar shortly!! YOUR HOSTS JOE ERICKSON R ESTAURANTOWNER.COM JIM LAUBE RESTAURANTOWNER.COM INDEPENDENT RESTAURANT CHALLENGES Staffing Minimum (living) wage initiatives Employee attitudes & work ethic Competition Technology Demographic changes Gov t regulations / compliance Copyright 2015 RestaurantOwner.com 1

2 COMMENTS & QUESTIONS WHAT S YOUR #1 CHALLENGE? QUESTION What does Culture mean to you? Copyright 2015 RestaurantOwner.com 2

3 OUR DEFINITION... Culture is how your people... Think & Act EXTRAORDINARY RESTAURANTS Austin, TX Kingsport, TN New York, NY Ann Arbor, MI CULTURE The biggest driving force in our restaurants in our culture. David McClaskey, President Pal s BEI Copyright 2015 RestaurantOwner.com 3

4 CULTURE Culture is everything! Our culture gives us the tools to ride the waves, the inevitable challenges, we face in this business. Danny Meyer Union Square Hospitality Group WHAT WE DO 3 Core Competencies 1. Business Management 2. Systems 3 Core Resource Areas 3. Culture WHAT DRIVES RESTAURANT RESULTS? Financial Results P&L Sales - Costs & Expenses = $ Profit $ Guest Experience Strategic Thinking Cash Management 1. Business Management Inventory Mgt. Budgeting Financial Statements Marketing Cost Controls Accounting Copyright 2015 RestaurantOwner.com 4

5 WHAT DRIVES THE GUEST EXPERIENCE? Guest Experience What s the MOST important part of the guest experience? ANSWER: Consistency & Repeatability WHAT DRIVES THE GUEST EXPERIENCE? Guest Experience How do you create Consistent / Repeatable Guest Experiences? WHAT DRIVES THE GUEST EXPERIENCE? Guest Experience Good Employees Smiles Respect Extra effort Caring 3. Culture 2. Systems How people think & act Enthusiasm Cooperation Trust Copyright 2015 RestaurantOwner.com 5

6 WHAT DRIVES THE GUEST EXPERIENCE? Guest Experience Hiring Process Good Employees Training Manuals 2. Systems Recipes Guidelines Forms Standards Checklists Procedures WHAT DRIVES RESTAURANT RESULTS? Sales - Costs & Expenses = $ Profit $ Guest Experience 1. Business Management Good Employees 2. Systems 3. Culture WHAT DRIVES RESTAURANT RESULTS? Sales - Costs & Expenses = $ Profit $ Guest Experience 1. Business Management Good Employees 3. Culture 2. Systems What s the ENGINE that powers your RESULTS? Copyright 2015 RestaurantOwner.com 6

7 WHY IS CULTURE SO CRUCIAL? Hospitality Service Cleanliness Food & Beverage Your People Consistency Speed/Timing Complaints Your PEOPLE Drive Your Guest Experience Accuracy 3 STEPS TO EXTRAORDINARY RESTAURANT SUCCESS Startup 1. Find out what they want Food, beverage, atmosphere, look, service style, price, cleanliness, speed 2. Go & get it Location, facility, design, ambience, menu, recipes, quality, staff Is it a Good Restaurant? Is it a Good Business? 3. Give it to them Execution, consistency, training, timing, service, hospitality, business management CULTURE 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. Copyright 2015 RestaurantOwner.com 7

8 WHAT BUSINESS ARE YOU REALLY IN? Success in the restaurant business is ultimately about the experiences you provide your guests AND employees. WHAT BUSINESS ARE YOU REALLY IN? You re in the EXPERIENCE business! THE GUEST EXPERIENCE Extraordinary Good / Average Bad Loyalty High So So None WOM Positive Little to None Negative Copyright 2015 RestaurantOwner.com 8

9 WHAT DRIVES YOUR RESULTS? Sales - Costs & Expenses = $ Profit $ Guest Experience WHAT DRIVES YOUR GUEST EXPERIENCE? Sales - Costs & Expenses = $ Profit $ Guest Experience Employees WHAT DRIVES YOUR EMPLOYEES? Copyright 2015 RestaurantOwner.com 9

10 WHAT HAPPENED? Did they lose their ability to do the job? Was it a hiring mistake? WHAT HAPPENED? What if the employee experienced... Minimal training Low standards Started on a Friday No recognition Unfriendly No feedback Little support Nobody cared WHAT HAPPENED? The employee likely experienced... A Negative Culture Copyright 2015 RestaurantOwner.com 10

11 WHY CULTURE? What kind of employees do you need to produce better guest experiences and better results? CHARACTERISTICS OF CULTURE Engagement Strong Culture Cooperation Enthusiasm Smiles Teamwork What else can I do? Flexibility Respect Accountability CHARACTERISTICS OF CULTURE Indifference Weak Culture Cover your tail Blaming others It s not my job Mediocrity Criticism Distrust Excuses Whining & complaining Indifferent people create an Indifferent people cannot deliver environment where nice people extraordinary guest experiences don t want to work Copyright 2015 RestaurantOwner.com 11

12 IMPACT OF CULTURE Culture drives your Employee Experience RO SURVEY RESULTS 69% RO SURVEY RESULTS 63% Copyright 2015 RestaurantOwner.com 12

13 RO SURVEY RESULTS Very Challenging 55% THE IMPACT OF CULTURE Sales - Costs & Expenses = $ Profit $ Guest Experience Employee Experience CONCLUSION Culture produces Results (The thinking & actions of your people are producing your RESULTS) Copyright 2015 RestaurantOwner.com 13

14 CONCLUSION Stop focusing on financial performance! (Instead, concentrate your efforts on changing your CULTURE) CONCLUSION Primary job of a leader is to create the right CULTURE to get the RESULTS you want (Your CULTURE is producing your results) LEADERSHIP When you create a strong Culture, you become a great leader by default! Copyright 2015 RestaurantOwner.com 14

15 HOW CULTURE IMPROVES RESULTS Do this... ACTIONS VALUES HOW CULTURE IMPROVES RESULTS Management Do this... ACTIONS Do this VALUES HOW CULTURE IMPROVES RESULTS Do this... ACTIONS VALUES Copyright 2015 RestaurantOwner.com 15

16 THE CULTURE CHANGE PROCESS Misunderstandings about working on VALUES (beliefs): You can t change people s VALUES (beliefs) You can t read people s minds You can t measure change in people s thinking ACTIONS VALUES COMMONLY HELD BELIEFS IN YOUR RESTAURANT When the New Employee asks... How do things REALLY work around here? What does the owner REALLY care about? What should I REALLY look out for? VALUES / BELIEFS Desired RESULT: Lower Food Cost - 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 Copyright 2015 RestaurantOwner.com 16

17 VALUES / BELIEFS Management provides the EXPERIENCES that promote the VALUES (beliefs) in the restaurant ACTIONS VALUES EXPERIENCES BELIEFS Desired RESULT: Lower Food Cost - 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 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 CULTURE CHANGE PYRAMID ACTIONS VALUES EXPERIENCES Copyright 2015 RestaurantOwner.com 17

18 THE RESTAURANT CULTURE CHANGE PYRAMID ACTIONS VALUES EXPERIENCES THE RESTAURANT CULTURE CHANGE PYRAMID ACTIONS VALUES EXPERIENCES THE RESTAURANT CULTURE CHANGE PYRAMID Leadership Management ACTIONS VALUES EXPERIENCES Do this... Culture Copyright 2015 RestaurantOwner.com 18

19 THE 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 THE RESTAURANT CULTURE CHANGE PYRAMID ACTIONS Rules of the Game VALUES EXPERIENCES Mission 90 Day Challenge Copyright 2015 RestaurantOwner.com 19

20 MISSION Why does your restaurant exist? What do you want to accomplish? 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 Should contain 3 elements 1. What your company does 2. Who you do it for 3. Result(s) you want to achieve Must be: Clear & Succinct Copyright 2015 RestaurantOwner.com 20

21 MISSION To nourish and delight everyone we serve. MISSION Our mission is to become world famous by delighting one guest at a time. MISSION To guarantee that every guest is delighted because of me. Copyright 2015 RestaurantOwner.com 21

22 MISSION 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. MISSION MISSION STATEMENT COMPONENTS Pal s Sudden Service What they do To delight... Who for our customers... Result... creates loyalty. Copyright 2015 RestaurantOwner.com 22

23 MISSION Crafting your 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? IMPLEMENTING YOUR MISSION Owners & managers must 1. COMMUNICATE the mission COMMUNICATING YOUR MISSION Interviews Orientation & training sessions Training manuals, handbooks Management meetings Pre shift meetings Decision making discussions Whenever the opportunity arises Copyright 2015 RestaurantOwner.com 23

24 IMPLEMENTING YOUR MISSION Owners & managers must 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 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 MISSION 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 & Chef The Bistro at Marshdale Copyright 2015 RestaurantOwner.com 24

25 MISSION 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 & Chef The Bistro at Marshdale 3 WORLD CLASS STRATEGIES 1. Mission 2. Rules of the Game 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 Copyright 2015 RestaurantOwner.com 25

26 MAKE YOUR RESTAURANT A SAFE ZONE SAFE MANY WORKPLACES ARE NOT SAFE ZONES According to a 2011 Monster.com survey.. 66% of respondents admitted to being a victim of workplace bullying MAKE YOUR RESTAURANT A SAFE ZONE Honesty Courtesy Transparency SAFE Respect Trust Caring Consistency Copyright 2015 RestaurantOwner.com 26

27 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 Basics 1. Do your best 2. Do the right thing 3. Show people that you care Goal is to create a climate for cooperation, transparency and hospitality to thrive. HAVE VALUES THAT EVERYONE 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. Copyright 2015 RestaurantOwner.com 27

28 BEHAVIORAL NORMS HOW WE ARE EXPECTED TO ACT K&N Management Friendly Engaging Authentic Harmony Strong work ethic BEHAVIORAL NORMS HOW WE ARE EXPECTED TO ACT 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 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 Copyright 2015 RestaurantOwner.com 28

29 ** CAUTION ** Please do NOT embark on ANY culture change initiative unless you are 100% committed to seeing it through! GAUGING YOUR CULTURE On a 1 to 10 scale, how would you rate your restaurant s culture today? GAUGING YOUR CULTURE How would your employees answer these questions? 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? * From The Gallup Organization Q12 Survey Copyright 2015 RestaurantOwner.com 29

30 CHANGING YOUR CULTURE What s one thing that you could begin doing or stop doing now that would improve your culture? CHANGING YOUR CULTURE What type of changes in your restaurant would you expect to see if your culture rating moved up a few points? WHAT DRIVES YOUR RESULTS? Sales - Costs & Expenses = $ Profit $ Guest Experience Copyright 2015 RestaurantOwner.com 30

31 WHAT DRIVES YOUR RESULTS? Sales - Costs & Expenses = $ Profit $ Guest Experience Employee Experience Culture WHAT DRIVES YOUR RESULTS? Sales - Costs & Expenses = $ Profit $ Change Your Culture. Change Your Results. 3 DAY WORKSHOP Achieving Extraordinary Results with Ordinary People How to Unleash the Power of Culture to Create More Loyal Guests & Positive WOM RestaurantOwner.com/culture Dates: October 12-14, 2015 Location: San Antonio, Texas Copyright 2015 RestaurantOwner.com 31

32 SAN ANTONIO WORKSHOP MAY 2015 COMMENTS FROM MAY WORKSHOP ATTENDEES 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 Singleton The Boat House Baltimore, MD COMMENTS 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 Thesz New England Fish Market & Restaurant Jensen Beach, FL Copyright 2015 RestaurantOwner.com 32

33 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 Long Petra Restaurant Ventures McKinney, TX 3 DAY WORKSHOP Achieving Extraordinary Results with Ordinary People How to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM Dates: October 12-14, 2015 Location: San Antonio, Texas RestaurantOwner.com/culture WHAT BUSINESS ARE YOU REALLY IN? Success in the restaurant business is ultimately about the experiences you provide your guests AND employees. Copyright 2015 RestaurantOwner.com 33

34 3 DAY WORKSHOP Achieving Extraordinary Results with Ordinary People How to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM Dates: October 12-14, 2015 Location: San Antonio, Texas RestaurantOwner.com/culture Copyright 2015 RestaurantOwner.com 34