Tag Archives: Food industry

Sneaky Is Stupid

Foodie Friday, if you’re not too stuffed from all of the past week’s consumption.  I came across an article in The Guardian which pulled back the covers on how some restaurants improve their margins by cutting corners in sneaky ways.  What prompted them to write the piece was the travails of The Olive Garden we featured here on the screed a few Fridays ago.  Not surprisingly, the myopic practices going on there is just the tip of a much larger set of things restaurants do. 

A few examples: restaurants will often serve glasses with a half-inch to an inch of foam on top because leaving that much foam can save them around 20 beers per keg.  They will use heavier, high-grade silverware for steaks to give the perception of a higher grade of meat.  They will cut back portion sizes and buy smaller plates.  If they cut an ounce out of a burger they’ll buy smaller buns (something I think they learned from the package goods folks).  Naturally, prices don’t change.

The list goes on but it raises the obvious business point.  As I wrote in September, many companies lose their core identity in the chase for revenues which is bad.  Hurting the products that got you to this point is worse.  Smarter companies do one of several things.  If you’re Apple, you maintain higher prices and don’t mistake cost for value.  If you’re Honda or Toyota or Nissan, you create separate brands (Acura, Lexus, Infiniti) that allow you to charge for a better product while permitting you to change the “standard” brand however you’d like.  No smart brand is sneaky.

What dumb companies do is to cut corners. Successful companies are always looking for creative ways to protect the bottom line without giving the impression that quality is going down with it.  Imagine what happens when your current customer base picks up on the smaller burgers or questionable shrimp.  Legitimate changes – repositioning menu items to increase sales or example – don’t affect quality.  Anything that does may increase your per table margin but you’ll be seating far fewer tables over time – even if you’re not in the restaurant business.

Make sense?

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Filed under food, Huh?

Managing You

Foodie Friday, and today it may be a bit of a gross-out fest.  There is a thread on Reddit in which fast food workers are asked what should we NOT order at your restaurant? Why not?  The responses aren’t pretty.  OK, that’s a lie.  They’re disgusting.  That said, they’re instructive in a few ways, the most obvious of which is that the worldwide megaphone is now amplifies all of the dirty little secrets that once were told from bar stool to bar stool after work.  It’s not about trade secrets.  Those generally have competitive value.  These secrets are things that are worst practices that no solid organization would follow.

English: This is actually Tom's Restaurant, NY...

(Photo credit: Wikipedia)

What struck me was how often cutting corner resulted in unsafe conditions.  People not washing their hands, food held at unsafe temperatures, food recycled for days, often transformed from one dish into another, and worse.  I will never drink anything in a restaurant with ice in it again after many reports of filthy ice machines that are never cleaned.  But it’s not the unsanitary conditions that are instructive.

Many of the restaurants mentioned are part of a national chain.  Some are franchised, some are corporately owned.  IN every case the writer mentions standard set by the parent organization for cleanliness and food safety.  In every one of these cases, those standards were ignored.  There are a couple of weak links in the chain.

First, it’s clear that the managers make the difference.  Several of the threads discuss how managers ignored the problem even after an employee pointed it out. I think this quote from someone working at an Olive Garden sums it up nicely:

The whole kitchen is incredibly organized, and it’s incredible that we can serve the amount of food that we do with so few kitchen staff, so I think that OG’s corporate system(Darden) is pretty good at what they do. I just happen to work at a location with an insane and incompetent manager.

There are dozens of other examples of brand being sabotaged by an incompetent individual who won’t adhere to standards.  But there is another weak link.  What about the workers themselves? It maybe true that you have an incompetent manager, but this Reddit demonstrates clearly that the employees recognized how wrong and unsafe the situation was.  How about taking some responsibility for disaster they see?  I guarantee you that every company can be reached with safety concerns.  This, however, was typical:

I try very hard to stick to our safety standards and common sense safety standards. I am not in charge of any of the meat dishes, pastas or sauces, and while I’ve expressed my concerns to my coworkers who do work these stations, every single one speaks Spanish, and I speak English.  Also, to be honest, I’m more interested in maintaining pleasant relationships with my coworkers than reporting them to my manager. It’s not my responsibility to manage the kitchen.

In any business, success and failure needs to be a shared thing.  Every employee and any level needs to feel invested in that success, certainly enough so that they are unwilling to let safety issues slide or are able to risk interpersonal relationships to move the entire organization forward.  The more senior the employee the more critical (as is the weak managers) this becomes.  We need to get people to manage themselves well enough that they can take responsibility. Making it happen is something to ponder.

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Filed under food, Huh?, Reality checks

Everything Is A Special

Foodie Friday Fun this week begins with a chalkboard.  I went out for dinner last night and the place I went was small.  After having been seated, one might expect the server to produce a menu.  He didn’t.  Instead he pointed to a chalkboard hanging on wall next to the open kitchen.  “Tonight’s menu is there” he said.  There were no specials – everything was a special.

The menu was small.  A few different types of crostini, two different types of pasta, a fish, a lamb dish, a beef dish, a duck dish and dessert.  Only three.  Everything was based on the ingredients available locally that day.  Having researched the place prior to going, I’d seen an assortment of previous menus.  One or two of the dishes popped up several times but the menus really varied from day-to-day.  They reflected the philosophy of the owners: fresh seasonal ingredients prepared simply.  Which of course got me thinking.

Many businesses try to be all things to all people.  They produce products in response to a competitor’s success.  Brand and line extensions are one way to leverage all of the brand equity we’ve built up.  The reality is that if the “larger menu” isn’t done as well as the array of choices that built that equity in the first place, we end up diluting what we’ve built up in the consumer’s mind.

The local ingredients had another advantage – much lower costs since they weren’t being shipped from around the world.  The prices at this place were reasonable.  They didn’t serve wine or liquor although you could bring your own (and they didn’t charge corkage!).  Again, maintaining a wine list was a distraction for them.  No inventory can go bad when you don’t have any.

I think this place’s philosophy is a good one for businesses to emulate.  Do a few things well.  Make everything special.  Make your products with the best “ingredients” you can find, where they be the people who provide your services or the materials from which your products are made.  Quality over quantity?  Maybe, although I think quantity comes from quality.  What do you think?

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Filed under Consulting, food