Ordinary to Extraordinary

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Shanon Mitchell Doyle
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1 Ordinary to Extraordinary How to Transform Your Restaurant Into a World Class Business ORDINARY VS. EXTRAORDINARY Have you ever had an extraordinary restaurant experience? 1

2 ORDINARY VS. EXTRAORDINARY What made it extraordinary? ORDINARY VS. EXTRAORDINARY What did you do after having that extraordinary experience? 1. Did you tell anyone? 2

3 THE GUEST EXPERIENCE 92% of customers worldwide trust recommendations more than any other form of advertising (up from 74% in 2007). Source: WOMMA Survey ORDINARY VS. EXTRAORDINARY What did you do after having that extraordinary experience? 1. Did you tell anyone? 2. Did you return? 3

4 THE GUEST EXPERIENCE Extraordinary Good / Average Bad Loyalty High So So None WOM Positive Little to None Negative KEY POINT The two things you want most to happen after a guest leaves, loyalty and positive WOM, depends entirely on... Your Guest Experience 4

5 WHAT DRIVES YOUR RESULTS? Financial Results Sales - Costs & Expenses = $ Profit $ Guest Experience QUESTION Have you ever had an extraordinary experience more than once... at the SAME RESTAURANT? How did they do it? 5

6 CREATING EXTRAORDINARY EXPERIENCES REQUIRES Effective Systems Good People CREATING EXTRAORDINARY EXPERIENCES REQUIRES Effective Systems Good People 6

7 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 3. Give it to them GUEST Execution, consistency, training, timing, EXPERIENCE service, hospitality TO CREATE EXTRAORDINARY EXPERIENCES Effective Systems Good People 3. Give it to them Execution, systems, consistency, training, service, hospitality 7

8 WHAT DRIVES YOUR RESULTS? Financial Results Sales - Costs & Expenses = $ Profit $ Guest Experience WHAT DRIVES YOUR GUEST EXPERIENCE? Hospitality Service Cleanliness Food & Beverage Your People Consistency Speed/Timing Complaints Accuracy Your PEOPLE Drive Your Guest Experience 8

9 WHAT DRIVES YOUR GUEST EXPERIENCE? Sales - Costs & Expenses = $ Profit $ Guest Experience Your People SO WHAT DRIVES YOUR PEOPLE? Your Culture 9

10 WHAT IS CULTURE? Culture is how your people... Think and Act Culture determines what it s like to work in your restaurant & how well your people perform. CULTURE 10

11 WHAT HAPPENED? Did they lose their ability to do the job? Was it a hiring mistake? WHAT HAPPENED? Was it due to a negative culture? Minimal training No recognition Low standards Little support No feedback Unfriendly Nobody cared 11

CHARACTERISTICS OF CULTURE Indifference Weak Culture Cover your tail Blaming others It s not my job Indifferent people cannot deliver Mediocrity extraordinary Criticism guest experiences Distrust

12 CHARACTERISTICS OF CULTURE Indifference Weak Culture Cover your tail Blaming others It s not my job Indifferent people cannot deliver Mediocrity extraordinary Criticism guest experiences Distrust Excuses Whining & complaining SURVEY: 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 12

do? Flexibility Respect Accountability EXTRAORDINARY

13 CHARACTERISTICS OF CULTURE Strong Culture Engagement Enthusiasm Cooperation Smiles Teamwork What else can I do? Flexibility Respect Accountability EXTRAORDINARY RESTAURANTS Austin, TX Kingsport, TN New York, NY Ann Arbor, MI 13

14 EXTRAORDINARY RESTAURANTS 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 EXTRAORDINARY RESTAURANTS 14

15 EXTRAORDINARY RESTAURANTS 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) 15

4 franchised BBQ restaurants in Austin, TX 3 times the sales of other Rudy s Breakfast alone equals what an

16 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) EXTRAORDINARY RESTAURANTS K&N Management Austin, Texas 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 16

17 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 SQUARE HOSPITALITY GROUP 17

18 UNION SQUARE HOSPITALITY GROUP Opened 1994 Opened 1985 UNION SQUARE HOSPITALITY GROUP 18

19 MOST POPULAR RESTAURANTS IN NEW YORK CITY #2 in 2013 #1-9 Straight Years UNION SQUARE HOSPITALITY GROUP Sales over $7,000,000! 19

20 ZINGERMAN S DELI Opened 1982 Sales > $14M Paul & Ari ZINGERMAN S DELI 20

21 EXTRAORDINARY RESTAURANTS It s not about what you do, but rather, how you do it. EXTRAORDINARY RESTAURANTS All credit their extraordinary success to their CULTURE! 21

But we want to make sure that we hand off all the cultural pieces to each store. I see operations that outgrow their cultures.

22 CULTURE The biggest driving force in our restaurants in our culture. David McClaskey, President Pal s BEI CULTURE 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, CEO Pal s Sudden Service 22

CULTURE I love your restaurants and the food is

23 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 THE POWER OF CULTURE I love your restaurants and the food is fantastic. But what I really love is how great YOUR PEOPLE are. Gramercy Tavern Union Square Cafe 23

24 WHAT DOES A STRONG CULTURE LOOK LIKE? Clear Expectations Behavior Norms Simple, Powerful Mission Statement Effective Strong Communication Culture Clear Vision Inflexible Core Values I Understand My Role and Purpose HOW CULTURE IMPROVES RESULTS RESULTS ACTIONS Management Do this... BELIEFS 24

What should I REALLY be sure and NEVER do?

25 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? What should I REALLY be sure and NEVER do? 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 25

26 HOW CULTURE IMPROVES RESULTS RESULTS ACTIONS Management Do this... BELIEFS 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 26

27 HOW CULTURE IMPROVES RESULTS RESULTS ACTIONS Management Do this... Leadership BELIEFS EXPERIENCES HOW CULTURE IMPROVES RESULTS Leadership intentionally creates the employee EXPERIENCES that promote the right BELIEFS. The BELIEFS that inspire the employee ACTIONS that produce the desired RESULTS. 27

28 HOW CULTURE IMPROVES RESULTS RESULTS ACTIONS Management Do this... Leadership BELIEFS EXPERIENCES What else can I do? 3 WORLD CLASS STRATEGIES 1. Mission 2. Rules of the Game 3. The 90 Day Challenge 28

29 HOW CULTURE IMPROVES RESULTS RESULTS ACTIONS BELIEFS EXPERIENCES Rules of the Game 90 Day Challenge Mission MISSION Why does your restaurant exist? What do you want to accomplish? What would your employees say? 29

30 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 30

MISSION To nourish and delight everyone we serve. MISSION 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.

31 MISSION To nourish and delight everyone we serve. MISSION 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. 31

32 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. 32

33 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 33

34 MISSION STATEMENT COMPONENTS Pal s Sudden Service What they do To delight... Who for our customers... Result... creates loyalty. 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? 34

35 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 35

36 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 36

37 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 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 37

38 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 38

39 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 39

40 MAKE YOUR RESTAURANT A SAFE ZONE Honesty Courtesy Transparency SAFE Respect Trust Caring Consistency CREATING A SAFE ZONE Customers will never love a company until the employees love it first. - Simon Sinek 40

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 excellence to thrive.

41 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 excellence 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. 41

42 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 42

43 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 GAUGING YOUR CULTURE On a 1 to 10 scale, how would you rate your restaurant s culture today? 43

44 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 CHANGING YOUR CULTURE What s one thing that you could begin doing or stop doing now that would improve your culture? 44

45 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 45

46 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. 46

3 DAY WORKSHOP Achieving Extraordinary Results with Ordinary

Loyal Guests & Positive WOM RestaurantOwner.

Texas CULTURE: FINAL THOUGHTS Success in the restaurant

47 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: May 18-20, 2015 Location: San Antonio, Texas CULTURE: FINAL THOUGHTS Success in the restaurant business is ultimately about the experiences you provide your employees & guests. 47

Change Your Culture or Die

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)