Successful Restaurant Management Introduction Many restaurants fail each year due to managers who are simply unaware of the mistakes they are making. Every restaurant is different and the employees in these restaurants are different, but many managers make the same mistakes. Educating managers on how to effectively perform their duties will improve working conditions and, in turn, reduce turnover rates, improve employee satisfaction, and generate more business. Purpose The purpose of this report is to recommend management methods that maintain satisfied employees who will, in turn, impact customers positively and generate more business. Scope This report will research common mistakes made by restaurant managers and will include ways to prevent these mistakes. The report will also analyze the opinions of several employees from two different restaurants with different management styles. These opinions are derived from individual interviews given that allow the employees to express their satisfaction or dissatisfaction with the management. It also allows these employees to rate the management in general and articulate areas they feel need improvement. Finally, conclusions and recommendations for maintaining successful management are included.
2 Methodology In this report, former and current employees of Fast Freddy s Restaurant in Salem, Virginia, Robert Blankenship, Victoria Cundiff, and Arin Looney were all interviewed. Current and former employees of Chick-Fil-A in Salem, Virginia, John Hickey, Miranda Browning, and Mark Johnson, were also interviewed. These interviews of employees of separate businesses show the management differences in a chain restaurant and a locally owned restaurant. Most of the research was completed in the Lenoir-Rhyne College library. The National Restaurant Association and Nation s Restaurant News both supplied articles. Research on restaurant management specifically was difficult to find; however, management techniques in general were easier to locate and can easily be adapted to the restaurant business. Assumptions The assumption that restaurant management in general needs improvement is based on the high percentage of restaurants that fail each year and the high turnover rate of the majority of restaurants who remain in business. Relationships with Employees The employee-manager relationship could be the most important in the restaurant. This relationship not only affects the employees and the managers, but also the customers. Communication Research has shown that about 95 percent of the time a lack of communication is the number one reason why restaurants have high employee turnover
3 and other employee problems. Good communication skills can help employees and managers relate to one another and work well as a team (Notebook, 2007, 1). Robert Blankenship is a former employee of Fast Freddy s Restaurant in Salem, Virginia. Every week Blankenship was working open to close without any official breaks. This came out to be over 65 hours each week. Blankenship understood that he was the only chef in the restaurant and worked hard for every hour he was in the restaurant with rarely a complaint. The management never acknowledged his hard work and constantly made sure that he understood they were the ones who made the decisions. Blankenship began to feel unappreciated and questioned why he was working so hard for this restaurant. He left his job completely unsatisfied and frustrated with the management. The managers seemed perplexed, as though they genuinely had no idea what had gone wrong (Blankenship 2007). The management at Fast Freddy s felt that by continuing to give Blankenship an abundance of hours, they were showing that they thought he was doing a good job. They neglected to ever express this to him verbally or even in their actions (Schwartz 2007). Managers need to tell employees on a regular basis how satisfied they are with the work being done. Without manager feedback employees do not know where they stand with the manager and they are not only unsure about their job performance, but also with their relationship with the manager (Notebook, 2007, 2). This affirmation of a job well done will assure employees of their value to the restaurant (Ensman, 1997, 1). Another way to improve communication is to immediately address mistakes. This may seem like it could hamper communication, but if done correctly will enhance not only the communication and the relationship, but also the work environment. Managers
4 should be sensitive about the mistake made and offer tools or training to keep the employee from repeating the mistake (Notebook, 2007, 2). This correction then becomes a source of encouragement and lets the employee know the company values them enough to invest in them. Managers should make a habit of working with their employees on the floor of the restaurant on a regular basis (Notebook, 2007, 2). This hands-on approach doesn t just allow the customers to interact with the manager. It also allows the employees to see that a manager doesn t consider him or her self above the other employees. Maintaining a level of equality among employees and managers enables employees to discuss problems and successes openly with the manager. If employees are comfortable opening up to their managers, the employee will be happier and the manager will be more aware of the employees understanding of their job and their job satisfaction (Notebook, 2007, 3). Enabling employees to have open and frank conversations with their managers is another key to successful communication. Respect Arin Looney, another former employee of Fast Freddy s Restaurant felt a definite lack of respect from her employers. It wasn t that I felt they didn t respect me as a person, so much as it was that they had no respect for my opinion about the restaurant. I had worked there for over two years and they still refused to listen to any suggestions I had. It made it difficult for me to want to continue working hard for them, since they clearly didn t care (Looney 2007). According to Sirota Consulting chairman, David Sirota, It s hard for people to be enthusiastic about an organization that is not enthusiastic about them, (Reade, 2005, 1).
5 This lack of enthusiasm breeds a lack of respect that is mutual to the manager and the employee. Sirota believes the decline in enthusiasm is the fault of the manager (Reade, 2005, 1). The tendency is for managers to gear the majority of their policies toward the 5 percent of employees who are not good workers. This either leaves out or offends the 95 percent of workers who are there to do a good job (Reade, 2005, 1). A large majority of managers tend to have meetings for the entire staff to address a problem that one employee is causing. By grouping all the employees together, management is showing a lack of respect and appreciation for the good workers. If management had chosen to meet one on one with the employee causing the problem, they would have been able to explain what behavior is expected and what can not be tolerated without disrespecting the rest of the employees (Huling, 2002, 1). This situation is not only a lack of respect due to unfair grouping of employees, but also a misguided attempt to keep the employees equal. Some managers think they are doing the right thing by treating all the employees equally, but in reality they are not doing anyone any favors. No employees are the same. They don t have the same skill sets, attitudes, or experiences. A smart manager will figure out what is most important to each employee, and treat him or her accordingly (Ensman, 1997, 2). Environment Implementing all the changes that have been listed above will help eliminate negativity in the workplace, but these are not the only things that can be done. Managers should work to involve their staff in all development and decision processes. If managers and employees work together to create something or to make a
6 decision, the team members feel that they have a voice, and that their opinions are respected (Santana, 2003, 3). John Hickey is currently employed by Chick-Fil-A in Salem, Virginia. Hickey enjoys his job and attributes this to the environment he is able to work in. According to Hickey his managers go out of their way to include all of the employees in the decision making process. Our managers are constantly asking for our feedback. Whether it be on how the training is handled to how the restaurant is being run they genuinely seem to want our input (Hickey 2007). Recognizing and rewarding employees in line with performance you demand from them encourages a fair environment. If a manager is asking for more work to be done, the manager should be willing to give the employees more. If giving a raise is not a possibility, managers should be actively looking for other ways to reward employee performance. A manager s view of compensation should include anything that is of value to the employees and is equal to the extra effort the manager is demanding (Santana, 2003, 3). Managers should make building a community among their employees a goal. Putting employees in situations that require them to work together encourages the employees to bond and form friendships. These friendships will make the work environment much more enjoyable (Santana, 2003, 3). Nearly every organization exists to meet the needs of people. The restaurant business is no different. If managers capitalize on the human value link and make an effort to connect their employees to this link. When people feel they are doing more than
7 simply preparing and serving food, they will be willing to work harder, and will find the work more rewarding Santana, 2003, 4). In a community that is fair and respectful employees will feel free to be open and honest. This community breeds positive attitudes and leaves little room for negativity (Santana, 2003, 4). Cost Poor management is expensive for restaurants. When the management is inadequate, good employees are likely to leave, the work is uncompleted, and employees do not feel motivated to improve their skills. Result of this lack of enthusiasm is customer dissatisfaction, which leads to a decrease in patronage (Huling, 2002, 1). Studies have shown that it can cost as much as five times as much to find a new customer as to retain an old one (Lynott, 2007, 2). Poor relationships between managers and employees and a negative environment all result in a loss of customers. While these factors seemingly only affect the employees and the managers, it is easy for customers to pick up on unrest in the restaurant, as well as poor service. Employees whose needs are met tend to be happier employees. It should be the goal of the manager to keep the employees happy because it will increase business and overall improve the restaurant. Conclusions Based on the research above the following conclusions have been made: 1. Communication is the key to successful relationships with employees. Employees should be given positive and constructive feedback on a regular basis and managers should work side by side with their employees in order to enable the employees to feel free to speak with the managers.
8 2. A mutual respect between the manager and the employee should be established. This will foster more enthusiasm from the employees for the restaurant in general. 3. A positive environment must be created. Encourage the employees to participate in decision-making processes. Create teamwork situations that allow the employees to bond with each other. Look for different ways to reward employees besides just monetary rewards. 4. Cost reduction is a reward for the restaurant for having good managers. High turn over and constantly having to recruit new customers is expensive. Both of these costs can be caused by poor management. Keeping the employees happy is not only beneficial to employees; it is beneficial to the restaurant. Recommendations Based on these conclusions, the following recommendations are made: Open Lines of Communication Managers need to express appreciation of their employees daily. Tell employees who are doing a good job how much their work is appreciated. All mistakes should be addressed as soon as they are made, as privately as possible. This will keep employees from feeling defensive and will allow them to correct their actions in a more timely fashion. Also, supply employees with the tools and training they need to reduce these mistakes. This will not only help the restaurant, but will show the employee that they company is willing invest in them. Building open and honest communication in the restaurant will improve customer and employee satisfaction.
9 Promote a Positive Environment This can be done by rewarding employees. A lot of restaurants are not able to give employees who work hard raises every time the employee goes above and beyond. Managers should be constantly looking for different ways to reward their employees according to what their employee s value. An example of a way to reward employees is to give them days off in addition to personal and sick days. This will encourage them to work hard and show that the managers understand that they value time off, time spend with family, etc. Reduce Cost Implementing all of the suggestions above will reduce turnover and improve customer satisfaction, in turn improving business. This is not only beneficial to the employees but also to the managers.
10 Bibliography Blankenship, Robert. Personal interview. 13 Oct. 2007. Ensman, Richard G.. "Management Missteps: Common Mistakes That Can Trip Up New Management." National Restaurant Association March 1997 1-2. 20 Oct 2007 <www.restaurant.org/rusa/magarticle.cfm?articleid=504>. Hickey, John. Personal interview. 14 Oct 2007. Huling, Emily. "Bad Management Can Have High Costs." Strengthening the Front Line Oct 2002 1-2. 20 Oct 2007 <www.findarticles.com/p/articles/mi_qa3615/is_200210/ai_n9096367>. Looney, Arin. Personal interview. 13 Oct. 2007. Lynott, Bill. "Six Common and Costly Management Mistakes-And Advice to Help You Avoid Each One." SME Toolkit 2006 1-2. 20 Oct 2007 <www.us.smetoolkit.org/us/en/content/en/2287/six-common-and-costlymanagement-mistakes- and-advice-to-help-you-avoid-each-one> Notebook Feature Stories. 2007. First Pioneer. 20 Oct 2007 <www.firstpioneer.com/notebook/l3/eecommunications.asp>. Reade, Quentin. "Familiarity Breeds Contempt as Bad Managers Rule Roost." National Restaurant Association 29 Mar 2005 1-2. 20 Oct 2007 <www.personneltoday.com/articles/article.aspx?liarticleid=28840>. Santana, Joe. "Creating Supportive, Engaging Work Environment Helps Fight Employee Burnout." TechRepublic 14 Jul 2003 1-4. 20 Oct 2007 <www.articles.techrepublic.com.com/5100-10878_11-503231.html>.