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Restaurant Checklists are like Condoms

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Restaurant checklists are like condoms; nobody wants to use them, but they work.

I recently read the Checklist Manifesto by Atul Gawande, and he articulated perfectly everything that we have been preaching here at OpsAnalitica and so much more.  Please enjoy some paraphrased quotes from the Checklist Manifesto.

1. Here, then, is our situation at the start of the twenty-first century: We have accumulated stupendous know-how. We have put it in the hands of some of the most highly trained, highly skilled, and hardworking people in our society. And, with it, they have indeed accomplished extraordinary things. Nonetheless, that know-how is often unmanageable. Avoidable failures are common and persistent, not to mention demoralizing and frustrating, across many fields—from medicine to finance, business to government. And the reason is increasingly evident: the volume and complexity of what we know has exceeded our individual ability to deliver its benefits correctly, safely, or reliably. Knowledge has both saved us and burdened us.

2. In a complex environment, experts are up against two main difficulties. The first is the fallibility of human memory and attention, especially when it comes to mundane, routine matters that are easily over-looked under the strain of more pressing events.

3. Faulty memory and distraction are a particular danger in what engineers call all-or-none processes: whether running to the store to buy ingredients for a cake, preparing an airplane for takeoff, or evaluating a sick person in the hospital, if you miss just one key thing, you might as well not have made the effort at all.

4.  Good checklists, on the other hand are precise. They are efficient, to the point, and easy to use even in the most difficult situations. They do not try to spell out everything–a checklist cannot fly a plane. Instead, they provide reminders of only the most critical and important steps–the ones that even the highly skilled professional using them could miss. Good checklists are, above all, practical.

5.  One essential characteristic of modern life is that we all depend on systems—on assemblages of people or technologies or both—and among our most profound difficulties is making them work.

6.  But now the problem we face is ineptitude, or maybe it’s “eptitude”—making sure we apply the knowledge we have consistently and correctly.

7.  Checklists seem to provide protection against such failures. They remind us of the minimum necessary steps and make them explicit. They not only offer the possibility of verification but also instill a kind of discipline of higher performance.

8.  They supply a set of checks to ensure the stupid but critical stuff is not overlooked, and they supply another set of checks to ensure people talk and coordinate and accept responsibility while nonetheless being left the power to manage the nuances and unpredictabilities the best they know how.

9.  Failures of ignorance we can forgive. If the knowledge of the best thing to do in a given situation does not exist, we are happy to have people simply make their best effort.  But if the knowledge exists and is not applied correctly, it is difficult not to be infuriated.

A lot of these quotes were written in the context of medical practice as Atul Gawande is a surgeon in Boston.  As you read them, it is so easy to apply them to restaurant management.

Quote #1 could be applied to how much more complicated it is to manage a restaurant today than it was 50 years ago.  Restaurant managers today have so many more systems and people to manage than they did even ten years ago.  I managed at a high volume restaurant, and we ran 20 to 30 front of the house staff per shift on our busy nights, and that restaurant was doing $120K a week plus. There is complexity from the sheer volume that some restaurants can generate.

Quote #2  sounds like what happens to a restaurant manager who is trying to get ready to open a restaurant and then has a major equipment or system failure to solve. They have to focus on getting a solution implemented before they open their doors and they could get so focused on solving the issue they miss other vital activities needed for running a safe restaurant.  A manager flight plan is crucial for these moments.

Quote #3 refers to all or none processes.  Most critical safety violations are all or none processes.  Meaning it is great that you have sanitizer buckets in all of your stations, but if you didn’t use test strips to ensure that the concentration is correct, then you might as well have not even bothered.

Quote #4 is tough for the restaurant industry because we need to have detailed checklists, in the case of a line check, you need to taste every item and report that it is good or temp every pan.  Because we use our checklists for CYA documentation purposes, ours will probably be a little longer.  That is not to say that a manager flight plan or pre-shift meeting checklist cannot be more high level.

Quote #5 speaks directly to all of the technology flowing into restaurants. Gone are the days of the cash register, ticket pad, and wheel.  A modern restaurant may have any or all of the following systems: POS, Inventory, Checklist, Take-out and Delivery System, Social Media, Website, Scheduling, Pagers, and potentially Table Tablets.  You have to manage all of those systems while serving food to people and everything that it takes to do that.

Quote #6 our restaurant managers today are so much better trained and more equipped to run restaurants than their predecessors.  This increase in skill is because of the excellent training that chains provide to their managers, the amount of certificate and degree programs, and the support and training that is available throughout the industry to help teach restaurant managers.  Once again it’s not the breadth of knowledge that is important so much as that it is applied consistently and correctly.  It doesn’t matter that you know that the dishwasher rinse water needs to be 180F if you don’t check that it is at 180.

Quote #7 have you ever stood in the kitchen and been like “have I done that already?”  I have horrible short term memory. I used to run the omelet bar at a country club Sunday buffet in college.  If you ordered an omelet from me I would ask you 4 to 5 times what you ordered.  The fact is that running a restaurant is very systematized and you conduct the same tasks every day.  If you open 3 or 4 days in a row you will be hard pressed to remember if you checked the bathrooms today already or was that yesterday.  The days can run together.  Following a checklist every day and checking off each task as it is completed provides written verification of what you have done and reminds you what tasks are most important.

Quote #8 speaks to using checklists to remind us to check the critical stuff but you can also have checks in there to remind your managers to stop and check-in with other members of the team.  Ex:  Get with the kitchen manager and confirm 86’d items.

Quote #9 sounds like what Chipotle is going through right now or how the public will treat your restaurant and you brand when you screw up on something that you should have known better.  Look at Chipotle today or Jack in the Box from the 90’s, customers expect us not to get them sick or harm them.  They don’t easily forgive those kinds of mess ups.  It is a testament to Chipotle’s brand equity that they are weathering this issue so well.

Quote #9 also, in my opinion, speaks to the need to utilize a digital checklist app, like OpsAnalitica, to conduct and record all of your checklists.  When using our app to conduct your checklists, you get accountability management and effortless documentation built in.  As restaurant managers, it is imperative that you can see what is happening your restaurants.  With today’s technology customers expect that corporate management knows exactly what is happening in every location every day.  We in the industry know that that level of visibility is not common in corporate and even less so in franchise systems.

Customers don’t distinguish from franchisee run or corporate restaurants.  They make their purchasing decision by the brand and the brand promise that they see in marketing.  If one of your locations screws up and gets someone sick, your entire chain will pay the price in reduced sales and lost brand equity.  Having visibility into daily operations and systems in place to follow-up on issues are imperative.

In conclusion: the answers to better, safer and more profitable restaurants are checklists. Checklists when created thoughtfully, used consistently, and are followed-up on, provide the structure to guide our managers through the important tasks of their day.  Checklists drive consistency and ensure that the little details don’t fall through the cracks.

I would like to give you our list of standard checklists that restaurant managers should be using:

  • Refrigeration Temp Log – Opening and Closing of Restaurant
  • Manager Flight Plan – These are the key tasks that a manager needs to get done each shift at the opening of the restaurant and before service periods.
    • This checklist is massively important because a lot of these items are prone to be missed when fires erupt and managers lose focus.
  • SMART Pre-Shift:  This is our proprietary checklist for preshifts, it includes sections on:
    • Sanitation:  sanitizer buckets, dishwashers, cross contamination
    • Management Responsibilities:  key manager flight plan activities that need to be completed before guests enter the building
    • Accountability:  FIFO, Portion Control, Line Check
    • Readiness:  Entry, Server Stations, Bathrooms, Dining Room
    • Temperatures:  this is a hold and cold hold temperature log
    • If you would like to watch our pre-recorded webinar about our SMART Pre-Shift Checklists, click here.
  • Hold and Cold Temperature Logs:  this is the temp log that you do after you start service, ensuring that all refrigeration and hot hold items are holding temp
  • Line Check:  temperatures, portion scoops, taste items, labels
  • Pre-shift Meeting:  Stations, Tip of the Day, Specials, 86 items
  • Bathroom cleanliness: please, please, please don’t have a piece of paper on the wall in your bathroom.
  • Staff Appearance Checklist:  check uniforms and appearance of staff, this is a great time to find out if everyone on the team is feeling healthy.

Here are some non-standard, not every day, checklists and inspections you should be conducting:

  • Fire extinguishers and fire suppression system
  • Annual location review: look at the state of your location, traffic flow, demographics, if in a mall or shopping center the health of the overall location.
  • Outside of building including parking lot
  • Full location inspection
  • Ceiling tiles and decor:  ripped booths and stained ceiling tiles are like smells after a while you don’t notice them anymore.
  • Equipment maintenance checklists:  make or utilize checklists for common equipment maintenance.

Click here if you would like us to email a pdf of our list of checklists right to your inbox.  If you would like help writing your checklists, OpsAnalitica offers consulting services just reach out to us on our support page.

If you would like to get a copy of the Checklist Manifesto, it will change how you look at and manage your restaurants. Here is a link to purchase the book through Amazon.com.

As always if you think I’m missing something or I’m way off then please leave a comment and let me know. I’m happy to update these blogs with better information at any time.

Flavorless Pizza

Last weekend I ordered pizza from a new place in our neighborhood that we had never tried.  We had friends over, and they swear by this place, so we gave them a shot.

The pizza was flavorless.  My friend who orders from them regularly commented on how the pizza wasn’t up to par.  My guess is that someone over there screwed up on their sauce recipe because the pizza looked properly constructed.

My order was $30 for a pizza, wings, and a salad.  I’m not going to order from them again for quite some time if ever.  You only get one chance to make a first impression, and they didn’t do well.

So now, all of their hard work to get me as a new customer was for nothing.  All of the marketing, the mailers, the signage, the making great pizza for my friends so many times amounted to nothing in my case.

Here is the kicker, this entire scenario was avoidable by doing a line check and tasting their sauce and ingredients before the shift.  A line check would have caught this issue, and they would have had time to fix their sauce.

Had they done a line check and served the pizza they thought they were; I might be an enthusiastic new customer of theirs.

Line checks are not optional.  They are a required for running a successful restaurant.

I would like to give you our new white paper, 7 Tips for Faster Better Line Checks today by clicking here.  In this white paper, we do a deep dive on some ways to make your line check more effective and quicker to execute.

Click to have your copy of 7 Tips for Faster Better Line Checks delivered to you inbox today.

Hope you have a safe and profitable New Years Eve!

If you have any questions give me a call or send me an email any time. Or if you are interested in seeing an OpsAnalitica demo, click here to schedule.

7 Tips for Faster Better Line Checks

Chef Tasting Food

Pre-shift line checks are a requirement for running a successful restaurant.  Line checks provide management the ability to inspect their restaurant before the meal period to:

  • Ensure that they are stocked properly, Pars
  • The right food is on the line, FIFO
  • That everything is safe to serve, Temperature Control
  • The correct serving ladles and spoons are being used, Portion Control
  • That all food is fresh and tastes correct, Food Comp Reduction
  • Basic food safety and cleanliness practices are being met, Sanitation

If you are not conducting line checks every meal period, from my experience, you don’t even know what you don’t know about what is going on in your kitchen.  My guess is that if you started doing line checks  you would be very surprised at what you find.

Here are some tips to make your line checks faster and more effective:

  1. Thorough is Better:  Look at every item that you are going to be serving that shift.  Don’t assume that because it was checked on the last shift that it is still good to serve.
  2. Make a line check kit:  It doesn’t have to be fancy but you should grab a full pan and load it up with the things you are going to need to conduct your line check and then bring the kit with you to each station in the restaurant.  A good kit should contain:
    1. Sanitizer bucket with 1 wet towel for cleaning off thermometer probes
    2. 1 dry towel
    3. Sanitizer test strips
    4. Dishwasher test strips if different
    5. 1 bucket with clean spoons for tasting (figure out how many spoons you will need to taste every item and bring that many)
    6. 1 bucket for dirty spoons
    7. Thermometer(s)
    8. Fryer oil test kit if you use one
    9. Post-its and a pen – for leaving notes for crew
  3. Write SMART Questions:  For any food item you should:
    1. Temp the item
    2. Taste the item when appropriate
    3. Ensure it is labeled correctly with expiration date
    4. Check that it is in the correct container size
    5. Has the correct portion control in place (spoodle, ladle, measuring cup, check weight of random item, etc..)
  4. Use Multiple Thermometers:  The average probe thermometer takes 1 to 5 seconds to register a temp.  If you are going to be temping your entire line you are adding unnecessary time to your line check if you only use 1 thermometer.  Use at least two or four at a time.  By the time you place the 4th thermometer the 1st one has probably registered the temp.  This will speed up your line checks
  5. Check for critical violations:  You should take this opportunity to be looking for other critical violations in your restaurant:
    1. Sanitizer buckets: proper concentration, towels, temperature
    2. Dishwasher: water temperature, sanitizer concentrations, etc..
    3. Improper food storage:  look in dry storage and refrigerator units for proper shelves, cool down procedures, covers, and labels
    4. Temperatures:  record temps for all cold and hot hold units
  6. Correct any critical violations immediately:  As you are walking around conducting your line check if you stumble upon a critical violation you need to fix it immediately.  Fixing might consist of you stopping what you are doing and fixing it yourself or delegating it to a member of the crew.  You need to flag that item and re-check that it was fixed before service starts.
  7. Use a Digital Checklist App like OpsAnalitica Inspector:  The OpsAnalitica Inspector drives line check compliance through our accountability management functionality.  When you use the OpsAnalitica Inspector for your restaurant checklists you will know who completed the checklist, when it was completed, if the line check was pencil whipped, and you will be able to see the answers from any connected device in the world.  You will also be able to identify any issues and immediately follow-up with your management team to ensure that they are corrected before they can affect safety and quality.  Our clients that use the OpsAnalitica Inspector for line checks see a 1/2 to 1% decrease in food costs due to reduced comps and better inventory management.  Our clients are reporting increased temperature compliance and safety.  The fact is that paper line checks that no one ever look at are a waste of time and are given the appropriate amount of attention but when line checks are conducted digitally and followed up on the end result is better, safer and more profitable restaurants.

We hope you find this list helpful in making your line checks more effective and quicker to complete.  If you would like to learn more about the OpsAnalitica Inspector and how it can drive line check compliance please click here to watch our demo video.

Here is an additional guide that you might find useful:

  1. Calibrate your thermometer

How Checklist Tags Help Reduce Food Cost

Question and response tagging. 

Sounds great doesn’t it? 

Well… What is it?  

Ok let’s take a look at what question and response tagging is and what it means to your checklists and operations data. It is hugely beneficial and saves you one of your most precious resources. Time. And we all know what time is.  

Let’s say you wanted to see a report with all of your not safe refrigeration temperatures across your chain. Question and response tags make this so unbelievably easy. 

With OpsAnalitica you can get this report generated and emailed to you on a schedule as often as you need. For this particular example we hope that the report is empty. No news is good news. 

Tagging facilitates management by exception. By tagging your questions with a common attribute(s) it allows you to quickly look at those questions across your chain regardless of which checklists/inspections they are associated to or the location.  

To narrow this report down some you might want to only look at temps that are not safe or safe, but not optimal. See, analyzing your temp data over time and comparing it to food cost you might find that there is an optimal temperature range for your operations where you see less spoilage. 

So even though some of your locations might recording safe temps on a daily basis, they may not be in the optimal range. With OpsAnalitica’s dynamic scoring and response tagging you can tag and score temp responses appropriately based on the temp recorded in the line check.  

For example you might give 0 points and the not safe and not optimal tags for temps above 40 degrees Fahrenheit, 5 points and the safe tag for temps that are between 33-34 and 38-40, and finally 10 points and the safe and optimal tags for temps between 35-37.  

Now you can focus your time on getting all your locations to the optimal range, thus reducing food spoilage and increasing profits 

This is just one example. There are tons more. Staff readiness, FOH cleanliness, any metric that you feel is important, etc.  

The goal is to maximize your time and expertise on the areas and locations that need you the most. Provide you with the actionable data that you need without all the distractions.  

2016 is right around the corner, and we all want to start it off right. Watch our 14 minute recorded demo by clicking here to see how OpsAnalitica uses question and response tagging to help restaurant operators across the world run better operations.   

Commit to running better, safer, and more profitable restaurants with OpsAnalitica in 2016.  There is still time, we can have most organizations up and running within 1 business day.   

If you would rather see a live demo and get all your questions answered, click here to schedule 

If you have any questions give me a call or send me an email any time.

Chipotle’s Woes Could Happen to Any of Us

A couple of years ago I met with a Chipotle Director to show him the Inspector app of that time.  My hope going into the meeting was that he would have been so blown away that he would have walked us into the VP of Ops office.  

He didn’t, full disclaimer, he wasn’t officially speaking on behalf of Chipotle when he decided not to bring it to his bosses, we were just two guys having dinner. 

The reason I’m even recounting this to you was his reasoning for not wanting to bring it to his bosses.  In his opinion, the culture at Chipotle was not about checklists. Chipotle’s culture is based on the belief that if you hire the right people, train and empower them than you don’t need checklists.   

I agree with their philosophy on hiring great people and would argue that checklists are vital to all industries but especially to the restaurant industry. 

Checklists provide focus, and when checklists are completed thoughtfully and followed-up on, they drive safety and consistency in operations.   

Chipotle’s CEO officially apologized this week and said that the controls they are putting place are going to make them the safest place to eat in the country.  Here is a link to a Slate Article Chipotle is So, So Sorry for Sickening all Those Students. 

The last paragraph of the article states that Chipotle is planning on more audits, which is a good thing.   

The only way to ensure that you are running safe operations is through consistent daily checklists and inspections of your locations by your employees.   

I would like to give you, for free, our 4 Daily Must-Do Steps to Safer Restaurants white paper.  It details a model of for the kind of self-inspection program you should consider implementing in your restaurants.   

Get your copy of the 4 Daily Must-Do Steps to Safer Restaurants by clicking on the link.   

If you are interested in starting a daily self-inspection program in your restaurants in 2016, you should know that there is still time.  We can get OpsAnalitica implemented in most chains within 1 business day.   

Click on the schedule a demo link to see the platform in action or if you have any questions give me a call or send me an email any time.

Inspection, Managerial and Custom Reports

We have spent all of 2015 to get to this point; our data warehouse is up and running, and we are releasing our first set of managerial reports.

Let me explain how reports work in the OpsAnalitica platform. We have three types of reports: Inspection, Managerial and Custom:

Inspection Reports: consist of summary views of all the checklists that have been submitted and the question and answer views of the individual checklists.
These are very powerful reports because you can see the frequency, duration, and scores that your individual restaurants are getting. Plus you see the actual checklists and individual answers that your team is capturing.

Managerial Reports: these reports span your entire organization and can look across all locations and checklists to bring you summary data. The power in these reports is that they have advanced filtering so you can drill in and get the information you need to make better decisions.

Custom Reports: we can now build you custom reports out of the data warehouse to give you the exact information you need to run your business. We will get on a web meeting and will build you the report just like you build a custom pizza.

I would like to invite you to check out some short videos on our new reports by clicking here. You’ll be able to see:

  • Pencil Whippers Report
  • Refrigeration Question Tag Report
  • Trend Line Report
  • Demo of the Inspector in Action

2016 is right around the corner, and we all want to start it off right. Watch our report videos today.

Commit to running better, safer, and more profitable restaurants with OpsAnalitica in 2016. There is still time, we can have most organizations up and running within 1 business day.

Don’t have time for videos but want to see a live demo, click here to schedule.

Why Getting Rid of Tipping in Full Service Restaurants is Stupid

Chef Instructing Trainee In Restaurant Kitchen

Full-service restaurants are unique in American business in that the incentive systems for service employees are perfectly aligned with the goals of the business.

It is an amazing sight to see employees working to benefit themselves and simultaneously benefitting the owners and managers of the establishment. Allow me to explain.

Servers in restaurants make a small minimum wage, mostly for taxes, and tips. Those tips are a percentage of their sales and that percentage in my experience can range from 10 to 30%. I was a really good server, and when I was on, I could easily make 30% per table, though 20% is the norm and occasionally you would get less than that.

Screenshot 2015-08-09 08.41.41

When a server is compensated by tips, they are driven by their personal benefit to provide great service to their guests in the hopes of making a higher tip percentage. Maximizing the servers personal revenue per shift and the ROI for their time.

The servers are also incentivized to make recommendations and to upsell their guests to enhance the guests experience and to get the maximum check value on each table. In my experience if you sell the table too much food or super expensive items that they weren’t expecting it can hurt your tip percentage as the guest feels that they have been taken advantage of or scammed.

Servers also get paid on volume. Meaning that a server on a busy shift wants to turn each table as many times as they can without rushing their guests out of the restaurant. Once again there is a fine line between pushing someone out the door, which if the guest feels rushed could affect the server’s tip percentage vs. being very efficient at delivering the check and processing payment so the guest leaves and the server can get another party at that table.

To sum up servers are incentivized to deliver great service, to maximize check value without going overboard, and to move customers in and out of the restaurant as quickly as the guest allows. When servers work toward these incentives, they maximize their earnings for that shift.

The restaurant owners benefit from servers that take great care of guests, increase sales by upselling, and move guests efficiently through the restaurant maximizing throughput and sales each meal period.

Both groups incentives are properly aligned with each other, and they both win and lose together.

Another point that needs to be made is that both teams lose together as well.

If servers provide horrible service and guests stop coming both the servers and owners of the restaurant will suffer. The owners will suffer more as the servers will eventually leave and the owners will be stuck with a business that has become known for bad service.

If the owners don’t do a good job of delivering a great product the servers and the owners will suffer because people won’t come to the restaurant, sales will be down, and the servers won’t make as much money.

In this relationship the servers and owners once again are linked at the hip.

There are other employees in the restaurant that are directly compensated off of the servers earnings. Bussers, bartenders, food runners, and sometimes hosts are all affected by server tips. When I was a waiter at P.F. Chang’s this is how we distributed our tips:

Total tips for night $200:

  • Busser: 15 to 20% or $40 – a busser usually served 2 to 3 servers, and I always tipped 20% because a busser can bury a server, or make it hard for the server to turn tables. It was important to me to make sure that I took care of my busser.
  • Food Runner: 10% or $20
  • Bartender: 1% Sales or $10
  • Bartenders and food runners, if there are more than one working, pool their tips from the servers and distribute amongst the team that was working that shift and are paid a higher minimum wage.

A lot of these cities are proposing a $15 minimum wage and getting rid of tips. When I was working as a server on a good Friday night, I planned on making $120 to $140 net in 5 to 6 hours. At $15 an hour and a 6-hour shift you are making $40 less a shift than you would have been if you were working for tips.

I’ve read an article that we blogged about in the spring that was pro no tips where the servers said they liked the paycheck but that they were making less money. I don’t know of a great server that would trade working for tips for an hourly wage because they know that they will make less money.

Another argument that is being put forth by people who don’t like tips is in regards to BOH staff: cooks, dishwashers, prep cooks, etc..

These are completely different jobs and have different risk levels and different rewards. A cook is guaranteed a higher base wage each hour of each shift. A cook gets paid their full wages for the hours they work if the restaurant is slow or busy. Therefore, a cook or BOH employee assumes no risk or variance in their wages shifts to shift.

An FOH staff member: server, busser, a bartender is completely dependent upon the level of business and their service for tips. The FOH staff assumes a large amount of personal risk and opportunity cost each day that they go to work.

I can’t tell you how many times I was sent home early because the restaurant wasn’t busy. Each shift the restaurant staffs themselves anticipating being very busy and if the business isn’t there the manager’s cut staff and send people home early.

What is amazing about sending people home early is that it isn’t looked at as a bad thing by most restaurant employees. I would say that schedule flexibility is one of the main reasons people chose to work in the hospitality industry.

Managers ask the staff who would like to go home early, and there are usually volunteers who have something else they want to do and they leave and the people who need money stay.

In my experience if you get cut and sent home early too often you will probably go and look for another job at a different restaurant.

The argument that BOH employees aren’t treated fairly because of tipping is wrong. Salary is based on upon risk and reward and in my experience working in both the BOH and FOH it isn’t an issue for the employees working those jobs.

Also, we live in a free country, and we are all employed at will, nobody is forced to work anywhere or in any position people choose their jobs and employees and can quit at any time.

What happens if we get rid of tipping across the board?

When you work for an hourly wage, your incentives change and, therefore, your behavior will change as well.

In the examples above we discussed how servers are incentivized to take great care of their guests because that level of service will influence their tip percentage. That incentive no longer exists because the level of personal service you give doesn’t directly affect your wages.

You can make the case that a bad server who gives bad service will eventually be fired.

We discussed how servers were incentivized to upsell and make recommendations to increase the check to a level that will enhance the customers experience without going overboard. That incentive is now gone because the one thing that we didn’t mention earlier is that upselling and making recommendations requires more work of the server.  The server has to think, react, ask questions, put themselves out there if the recommendation isn’t liked, deliver more food, and do more work.  It is much easier to be an order taker and not do any of that stuff.

On an hourly wage system, you are not incentivized to do more work. Hourly workers that don’t get compensated by output are incentivized to do the least amount of work per hour.  An example: why would you go through the hassle of selling a bottle of wine, presenting it, opening it, letting the guest taste it, and then serving it if it doesn’t directly enhance your bottom line.  If a server is in the rush and they have to do a wine service it can take a couple of minutes and can throw them deeper into the weeds.  Why tipped servers sell bottles of wine today is because a $30 bottle can enhance your tips by 5 to $6 dollars for that table.

Enjoy these excerpt from Office Space the Movie

Peter Gibbons: The thing is, Bob, it’s not that I’m lazy, it’s that I just don’t care.
Bob Porter: Don’t… don’t care?
Peter Gibbons: It’s a problem of motivation, all right? Now if I work my ass off and Initech ships a few extra units, I don’t see another dime, so where’s the motivation?

Finally, we discussed that servers working for tips are incentivized to turn tables quickly to maximize their tips per shift. This incentive is removed as turning tables is once again more work for a server with no reward. The server that is paid an hourly wage only incentive is to stay on the clock as long as possible per shift to maximize their personal revenue.

If you think that I’m making this stuff up, or I’m overly dramatic, eat at a restaurant in France or any other country where the service staff is paid hourly and not by tips. There is a reason that French waiters are stereotyped for horrible service it is because they majority of them deliver horrible service. The service in other countries doesn’t compare to the level of service that we get every day in the America.  Check out this blog from a Frenchman about service.

These are my predictions for the industry if we move to no tipping policies:

  1. Restaurant owners that move to a no tipping policy will make less money than they did when they had employees that were compensated with tips.
  2. Servers who work for an hourly wage will make less money than they did when they worked for tips.
  3. Full-service restaurants that are less expensive will have a harder time with no tips than more expensive fine dining restaurants because they are more dependent on volume than price premium.
  4. Americans will enjoy worse service in restaurants that don’t have tips then they will in restaurants where tipping is still the norm.

At the end of the day, the American full-service restaurant is a highly successful social experiment that demonstrates that when you have alignment of incentives and goals employees and ownership can win together.

One last thought:  why do you get better service at Nordstroms then Macy’s when the job is exactly the same?  My guess is that the Nordstrom employee gets a % of their sales.

Checklists May Become An Integral Part Of The Food Code

More responsibility and awareness might be coming for restaurant managers based on information coming out of the 10th Annual Nation’s Restaurant News Food Safety Symposium.

At the symposium future additions to the U.S. Food and Drug Administration Model Food Code were speculated in detail by food safety experts including Miriam Eisenberg of EcoSure.

The Food Code is updated every four years, but may include yearly supplements in between updates if needed. The latest update was released in 2013.

Eisenberg believes that we’ll see a requirement that a certain number of managers be certified by an American National Standards Institute accredited program in food safety knowledge. She envisions restaurant managers being the front line when a regulatory agency walks in the door asking questions. Managers will be required to provide more information about the understanding of monitoring for foodborne illness in their operations.

More and more the food safety initiatives that were mostly focused on manufacturing are creeping their way into the retail restaurant industry to help battle foodborne illness outbreaks.

Here’s an excerpt from an NRN.com article on the 2015 supplement:

The 2015 Food Code supplement talked about managers needing to be able to verify and monitor cooking temperatures, holding temperatures, hot and cold, and cooling temperatures, she said, but is not particularly clear about how they are to do that. Eisenberg said her group is a strong believer in checklists, but such changes will require more checklists and training people to do more checklists and then monitoring the checklists.

This goes right along with what we are preaching every day at OpsAnalitica. You need to be doing daily checklists and following up on them consistently to ensure they are being done diligently, either through exception reporting and/or coaching sessions. This is the only way to know that you are running safe operations and that the most important things in your operations are being checked frequently.

Click here to watch a recording of our webinar, Setting Up An In-House Inspection Program.