Tag Archives: Restaurant

Chef? What Chef?

Our Foodie Friday Fun this week coincides with Valentine’s Day.

Chef preparing food 2

 (Photo credit: Wikipedia)

Many of us will be taking our valentines out for a special meal to celebrate.  It’s nice to have someone else do the cooking every so often and hopefully that food is of a higher quality and more sophisticated that what we’d prepare ourselves.  Then again, it might just be frozen vegetables and a microwaved entrée.  Think I’m kidding?

Anyone who has ever watched any of the “kitchen rescue” shows – Restaurant Impossible or Kitchen Nightmares – knows that some lower quality places substitute the microwave for the stove, presenting reheated frozen food as freshly made.  However, as a recent Wall Street Journal article pointed out, even high-end places in France serve food that has been cooked elsewhere.  In fact, of the 80,000 table-service restaurants in France, fewer than 10% have labels certifying that most of their ingredients are fresh and that the dishes are cooked on site.  The reasons they cite are high labor costs and high food costs.  Who needs a chef when you have a factory?

The reasons behind this aren’t the point today.  Instead, let’s think about the diner.  When most of us go out, there is an expectation that we’re paying for convenience, sure, but also for food that’s prepared on site.  As with any business, when the business knowingly delivers something that differs widely from what the customer is expecting, that business is teed up for problems.  Put aside the fact that you’re deceiving the customer.  If all the restaurants serve the same frozen food from the same factory, what is it that distinguishes their product from the competition?  Service and decor to be sure, but is that enough to keep a customer in the face of the guy across the street with the same food at a lower price?

The message for all businesses is pretty clear in my mind.   If we cut corners, do everything cheaply, and sacrifice quality for margin, what are the long-term prospects?  Someone else can always find a cheaper way (hello, U.S. electronics industry, car industry, etc.) to do what we’re doing.  Instead, we need to provide value, quality, and something uniquely our own.  We need to honor the expectations WE set in our customers’ minds.  Deception is a self-defeating business practice.

I’d be angry if I found the exact same meal for which I paid $25 in the frozen food case for $4, and question going back to that restaurant again.  Wouldn’t you?

Enhanced by Zemanta

Leave a comment

Filed under food, Huh?

Executing The Staff

Foodie Friday, and although the title of today’s rant sounds as if it involves improving the bottom line by drastically reducing overhead, nothing could be further from the truth.  Since we’re food-related today, the topic is how restaurants that do daily deals manage to do them well.  If you’re like me you’ve probably had the experience of buying a deal from GroupOn, Living Social, or even Amazon and having a so-so experience.  That might be due to the fact that a great number of restaurants that do these deals regret having done so (about half of them, depending on whose research you believe).  So why do they seem so popular?

Image representing LivingSocial as depicted in...

via CrunchBase

The ability of daily deals to generate new customers remains the primary reason for featuring a daily deal for a majority (53%) of restaurateurs that use them.  Bringing in new customers is one thing; getting them to return is another.  In addition, if all the deal does is bring in existing customers who dine at a discount, the promotion has done very little to grow the business.

So what makes some restaurant deals work while others fail?  GroupOn commissioned a study on that and found:

unsuccessful daily deals promoters struggle with many of these same goals – especially the goal of getting customers to return. The key to using daily deals effectively seems to lie in implementing the right steps before, during, and after to better assure success. To be successful with daily deals, companies need to first-and-foremost prepare their staff for the promotion. This one factor, alone, is the strongest differentiator between successful and unsuccessful daily deals users.

In other words, the staff needs to execute, and what that means is instructive for any type of business.  After all, many of the places using these deals are not busy enough. What business ever thinks it is?  But that leads to chronic understaffing.  For these restaurants making sure that they have enough staff to serve the new customers during the deal is critical.   I mean, would you go back to a crowded place where you couldn’t get a server’s attention?

It’s important as well to have a staff meeting to explain the promotion and set objectives for the deal campaign.  Again, better communication with the team means everyone is aware of the goals.  In addition, it’s a chance to remind them that many of the customers will be visiting the restaurant for the first time and to make a great first impression to keep customers coming back.  They also need training on the mechanics of the deal – how to enter codes, how to track spending, etc.  For the deals to work well, the customer needs to spend beyond what they get in the deal – buying wine that’s not included or maybe a dessert.  Training the staff to upsell those thing s can make a big difference in the margin these deals provide.

All of those things remind us that being successful is a team effort and that an informed team that understands what you’re doing, why you’re doing it, and how success can be determined increases the likelihood that they will execute well.  Deal?

Enhanced by Zemanta

Leave a comment

Filed under Consulting, food

The Name On The Door

Today’s Foodie Friday Fun is about the business side of food, a restaurant, so if you’re here today for cooking tips I apologize. You probably know chef Gordon Ramsay from his incessant TV appearances and, if so, you’re aware of his obsession with quality and high standards. What’s happened here in New York to his Gordon Ramsay at The London restaurant is a great lesson for any business.

Ramsay at BBC Gardeners' World Live 2008

(Photo credit: Wikipedia)

The restaurant opened in 2006 and soon thereafter won two Michelin stars. For any of you non-foodies, suffice it to say that there are currently only 14 places in NY that are two or three stars – they’re hard to win.  Unlike the Zagat ratings, these are all done by professional inspectors who are totally anonymous.  That was 2008.  In 2009 Ramsay sold the restaurant to the hotel (he needed the money – that’s another story) and licensed his name as part of the deal.

Fast forward.  The new guide came out and both stars are gone.  In a year (he had the two stars last year).  That’s pretty unheard of and shows a significant decline in quality and standards.  The chef’s response (via Eater)?

“Gordon Ramsay is not involved in the day-to-day running of the restaurants or kitchens, as this is a licensing agreement, but is in communication regarding updates and changes at the restaurant.”

In other words, although my name is on the door I’m not involved.   We heard something similar out of Donald Trump when the Trump casinos went bankrupt (how the heck do you lose money running a casino?!?!):

“Other than the fact that it has my name on it – which I’m not thrilled about – I have nothing to do with the company.”

I’ve done licensing agreements and one thing that is always a part of them are the product standards.  Since it’s your name, you always have the right to examine the product and if it’s not up to your standards, to demand that it’s fixed or not sold.  You might shrug and say well, that’s the restaurant business but it’s your business as well.  If the quality of whatever product or service you’re providing – even through a third party – isn’t up to snuff, it’s your name and reputation, not the third party’s.  Given that many of Ramsay’s other places – where he is more hands-on apparently – have held on to their stars – his place in London has three! – it’s clearly not that the chef has lost his touch.  It that he was out of touch with the New York place.

If your name is on the product, you need to be involved and maintain the standards that warranted your name on it in the first place.  When people knock on your door, they see you, not the landlord, not the builder, not the cleaning crew, not even the people who actually do the work.  You.  I’m all for meeting the customer expectations that my name engenders.  Aren’t we all?

Enhanced by Zemanta

Leave a comment

Filed under food, Helpful Hints