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Digital Checklists are More Important Than Ever To Minimize the Effects of High Employee Turnover

I’m going to do my best to keep this blog short and sweet. Here is the deal:

  1. Employee Turnover is at an all-time high but employee tenure is the more important measure to understand. Tenure is how long our employees are staying in their jobs.
  2. Because the average employee is staying such a short amount of time we have to re-design how we onboard, train, and operate our restaurants to minimize the effects of this turnover and their associated costs.
  3. Checklists are a key component in reducing employee training costs and running more consistent daily restaurant operations. The only checklists that actually work are ones that are managed through a Checklist App where you have visibility and accountability.

7 Shifts, the Scheduling Company, compiled 7 Restaurant Scheduling Stats of 2017. Click on the image below to see the whole infographic. The facts were crazy but these on how long employees on average stay in a job really stood out to me as scary.

High restaurant turnover is an all-encompassing thing, I know this because I’ve lived it. When you have high turnover you don’t have time to think about anything else, you’re constantly engaged in hiring, training, and backfilling positions. All other pro-active things that you want to do for your restaurant get neglected. How can you work on that new menu or special when you have 3 open positions for tonight’s dinner rush. It’s brutal.

The reality is, you have 57 days with a server, 54 days with a cook, and 124 days with your most expensive employee, your manager. These numbers really paint a picture of what restaurant operators are facing. Add to that the lowest unemployment in decades in the US and things are bleak for restaurant hiring.

Now that you see what the average tenure of an employee is; do you still think it is prudent to spend 4 or 5 days on-boarding/training a person that is only going to be around 54 days? That training time for a server/cook could equate to 10% of their entire employment period at a higher than normal hourly wage.

Here is what we have to do in the industry to minimize these effects.

Shift your Training to Focus on Employee Productivity as Fast as Possible

You have an employee that is going to stay 55 days. The difference between 3 to 5 days of initial training is significant. 3 Days of training is 5.4% of their tenure vs. 9% at 5 days. Think about the ROI jump on that employee when you get them productive quicker.

The easiest place to cut training cost is to reduce the initial onboarding and training period. You do it by:

  1. Cutting all superfluous training out of the curriculum and focus 100% on must-have job role knowledge. Ex: Cooks need to know recipes, servers need to know how to use the POS and steps of service. Get new hires into their stations contributing to sales ASAP.
  2. Systematize Everything: Anything that is repeatable has to be in a checklist or in-station Job Aid. You can’t spend a second training people how to remember to do a repeatable task. Instead, you need to teach them that there are systems available to guide them through these tasks as they are doing them and how to use these systems.
  3. Shift to More Daily Training: You have to shift training from a front-loaded multi-day activity and move the non-job role must-have items to a daily format. Pre-shift meetings for all members of the restaurant are a way to still deliver this culture and non-job specific training in a short couple of minute sessions. Repeating this training over time is very effective.
  4. Simplify as much as you can. For instance, and a lot of people have done this, put allergen, gluten, health information right on your menu. That makes it easy for customers to find out what items they can eat and reduces the amount of training you have to provide FOH employees on the menu. For the BOH, reduce as many steps as possible for prep and in your recipes. Anywhere you can find efficiency without compromising quality, you should make the change. A great example is a lot of quick-service restaurants have assembly cards in the different cooking stations, this helps with consistency but can also reduce upfront training time because there is a job aid right in their station. You have to do that because your employees aren’t around long enough to learn super complex processes.
  5. Use your employee’s phones to your advantage: Nothing infuriates me more than wanting something from an employee at a restaurant, waiting for them to see me, and they are looking at their phone. I get it. Phones can distract people from doing their jobs and there should be consequences when that happens. On the flip side, tablets are expensive. Cheap Android tablets with cases cost around $125 to $200. iPads can cost $400 to $1000’s of dollars. 99% of your employees have smartphones that can be used on your Wifi for free to engage in training and to complete checklists. You can’t mandate that they use their own phones, you have to provide an alternative, but you can allow them to use their devices to make your business better and their jobs easier and more convenient. Treat their devices as a force multiplier.

Short Checklists for All Repeatable Tasks and Job Aids for Singular Tasks

Most Pilot checklists are 5 or so questions. Turing the engines on isn’t one 50 question checklist that takes an hour, it might be 3 5-question short checklists with high-level items on them. We have a chain client that has a 30 to 40 total, 5 to 6 question checklists for every station. They take a minute to complete but they cover the most important items from a shift readiness perspective for each station. Their readiness went through the roof when they implemented this system.

Short checklists get done at higher percentages of compliance than longer checklists. You are always going to have a need to have some very thorough checklists and they tend be longer, line checks, food safety checks spring to mind and that is fine. Focus on making a lot of your checklists, short and easy to complete. Also, if you have long checklists, make sure you choose an app that supports real-time collaboration where multiple people can work simultaneously on the same checklist, that will help speed it up and drive higher compliance.

You should use checklists for tasks/processes that require multiple steps or multiple items. Job Aids should be used for single steps. You would use a checklist for setting up the beverage station because it involves multiple steps and multiple items. You would use a job aid to show how to make the Iced Tea.

The concept of multi=checklist and single=job aid can be applied to all departments. Also, use common sense when it comes to creating job aids. You don’t need a job aid on how to clean the front door with windex. You may want one on how to cut lemons because lemon slice size affects food cost and customer satisfaction.

Digital checklists and the OpsAnalitica Platform

Your restaurant’s team is constantly turning over. In a lot of restaurants, the most senior person could have 4 months of tenure or less. Everyone is new all the time and you are constantly training and on-boarding new employees.

You need to create systems that they have to follow so you can ensure food safety, shift readiness, and consistent customer experiences. You need systems that can be easily updated and centrally managed so that changes to operations can be quickly implemented at a minimum cost.

You also need a way to hold the team accountable for using the checklists and systems you have created. Because institutional knowledge of your operations in this environment can be very low, you need a way to bubble up issues to upper management in real-time and an ability to view what is happening at any location from any device.

Don’t forget about deep clean and preventative maintenance. You need to bring those activities into your checklist system so you track them. To make sure you are doing those activities so you don’t incur unnecessary repair costs, downtime, and losses. Also, because of the short tenure of employees, the current employees won’t have a clue if the last maintenance activities happened before they worked for you.

The entire restaurant industry has managed itself with paper checklists for years. The problem is, paper checklists don’t get done and there is no way for an above store leader to manage operations with them easily and effectively. We all know that our paper checklists are getting pencil whipped, 94% of managers surveyed said they knew their employees weren’t following them.

The OpsAnalitica Platform is the perfect platform to replace your paper checklists with. As the low-cost leader in the restaurant digital checklist space, we can provide your team with the platform that will replace your paper checklists for a cost that is less than the Red Book per month per location.

Our platform will provide you with real-time visibility, enhanced accountability, and critical notifications, in a fully customizable app that works on any Android or iOS device.

As the overall economy continues to grow, as the labor pool continues to shrink, restaurant employee turnover is going to stay a concern for the near future. As restaurant operators, we need to look for ways to streamline our hiring, on-boarding, training, and daily operation processes so that we can minimize the effect of this high turnover on our teams and on our customer satisfaction. One of the easiest and quickest ways to do this is to move your paper checklists, that aren’t getting done, to an app where you can hold your teams accountable to following your ops procedures.

OpsAnalitica Beats Paper Checklists and the Red Book

At OpsAnalitica, we were the first to preach daily checklists and their benefits for running better and safer daily operations, improving visibility and managerial accountability using an app. While our competitors were preaching auditing your way to restaurant health, we knew that audits were incapable of driving behavior change at the restaurant level.

As we have done analysis on how our prospects/clients conducted their operations in the real world before using our app, what we realized is this, their process wasn’t broken, it was their tool that was broken. I’m speaking about paper based restaurant checklists and food safety systems.

Whether you print your checklists every week or your purchase the Red Book. It doesn’t matter, your checklist compliance, shift readiness, management accountability, safety processes, and record keeping are all suffering not because they aren’t well thought out or that you didn’t do a good job of training your teams, they’re suffering from the inherent weakness of paper.

Paper based systems have the following issues:

  1. Paper can’t proactively bubble up issues to management.
  2. Data on paper is essentially useless because it can’t be viewed by people who aren’t at the location and it is expensive and time consuming to get it into a database where it can be queried and used to make better decisions.
  3. You can’t hold your team accountable to following your paper based procedures – this is paper’s biggest weakness.
  4. Pencil Whipping, your managers aren’t using your systems as they were intended and your profits are suffering.

Now there is a better way to run your restaurants, a way to ensure that your teams are following your procedures every shift. A way to have issues bubbled up to management immediately so they can react quickly to squash them. A way to have real-time visibility into all of your restaurants from your phone, and to stop pencil whipping which directly affects customer satisfaction, sales and profits.

Ditch Paper and Go Digital. The OpsAnalitica Platform is cheap, less than the cost of the Red Book per month, and an easy replacement for your paper checklists. The benefits of using the system, as described above, we fix all the accountability and visibility issues that you have with paper. We do it by simply taking your current process and changing its medium from paper to a phone or tablet, that’s it.

Imagine a world where you go into your restaurants and your teams followed every procedure during their set-up. You conduct a spot check on your line and all you food had been temped and tasted and everything is exactly as it should be. You have a restaurant that welcomes a health inspection or 3rd party audit, because things are to spec. A restaurant where guests are excited to dine because they always have a good experience. That restaurant is completely possible and there is no secret on how to operate it.

It’s shift readiness and consistent execution. It’s blocking and tackling, it’s following your checklists every shift in every location. The thing is, you already have your procedures, you have already done the hard work of figuring out all the stuff your teams need to run your restaurants with perfection. The problem is they aren’t doing it and you can’t hold them accountable to doing it while you are using paper checklists as your system.

Paper based lack of accountability affects all restaurants; regardless of size, type, and revenue. Chains and single unit operators alike face the same issues when it comes to holding their managers accountable to following procedures.

I was talking to the members of the c-suite of a brewery restaurant chain. They were telling me how thorough and important their line checks were to their operations. How they audited the restaurants once a quarter and that they checked line check compliance on the audits. So I asked the question, are you auditors seeing 180 line checks when they audit? Everyone in the room just laughed. Oh yeah, they all get done, Ha Ha Ha.

What is that old quote, the definition of insanity is doing the same thing over and over again and expecting a different result. That is the restaurant industry when it comes to operations procedures and checklists. The restaurant industry spends tons of money and time figuring out the best way to run the restaurants to maximize customer satisfaction and efficiency. We are masters at figuring out how to run these restaurants, to simplify processes so they can be executed at the most base level. We are truly brilliant at that part of running restaurants.

The crazy part is, we don’t do a good job of holding anyone accountable to following any of our procedures. Because with paper it is too hard to do that effectively so we just don’t do it. We laugh about our teams not following our procedures and yet we spend a ton of money developing those procedures. Why spend the money developing them if no one is doing them?

That pencil whipping mentality is so ingrained in our operating culture because, once again, up until the invention of platforms like OpsAnalitica you couldn’t get the visibility or accountability you would need to stop it.

It’s time for a change, it’s time for restaurant operators to hold their teams accountable to following their procedures because that is their jobs and because when they don’t do it customer satisfaction, safety, sales, and profits all suffer.

If you would like to learn more about how the OpsAnalitica platform can change your business, click here.

The System Your Ops Team Knows It Needs but Doesn’t Want

There is a better way to run multi-unit restaurants, managing an entire chain using daily checklist software in real-time, which provides your Ops Teams with store level visibility and managerial accountability. Plus when restaurants are held accountable to following your procedures, they run better, safer and more profitable locations.

Restaurant companies spend millions of dollars and untold hours developing, training and implementing procedures so that the restaurant store teams know exactly what they need to do at every part of the day so they can make sure the restaurants are ready for guests. The food is prepared correctly and it is safe and delicious. The problem has always been, that no one at the restaurants uses the checklists or follow the systems as they are designed. See our blog on the Industry’s Dirty Little Secret.

These benefits of increased visibility and accountability are what has been missing from multi-unit operations mainly because the technology to make this easy to do just wasn’t available. Today for the first time in the restaurant industry’s history, not only is the technology affordable but it is widely available. Your operations team knows that by implementing a daily checklist system that it would be better for your customers, your stakeholders, and your bottom line, but they don’t want you to implement it.

No restaurant professional is going to argue that running better daily restaurant operations at each location would be bad for business. The time spent making sure that the food you are serving is safe and tasty is wasted, or, that having a clean well-organized restaurant would be unappealing for guests.

We all know as restauranteurs or as diners, restaurants that serve good and safe food in a clean environment, with a decent staff generate more sales and profits than their competitors. Duh!

We are currently talking to a national chain about implementing our daily checklist software at their restaurants. We are speaking with their QA team, who recognizes that they could do better as a chain at ensuring that the restaurants are clean and that the food they are serving is held at proper temps and safe for consumption. Our contact told us to tread lightly with Ops because they were a little scared of our software.

Not scared of the software itself but scared of the accountability and visibility it would bring to their department.

I was speaking with a friend who manages several hundred restaurants last year and I was telling him how our software could provide his area managers with visibility into what was happening in each of his franchise stores. Alerting them to critical food safety violations in real-time. His response was, who is going to manage all these alerts?

I was talking with one of the top pizza chains in the US and I was told that their lawyers weighed in and they didn’t want to know if their franchise stores were safe or not safe. If they knew then they could assume co-liability.

That is such a lawyer mentality. 1. People can sue you for anything. 2. If you got sick at one of their restaurants, would you only sue the mom and pop who own the store. Yeah right, you would sue the multinational corporation 1st, or more than likely, Mahler Clarke would sue both parties for you.

The mentality that it’s better not to know where we have issues at the restaurants rather than discovering where we have operational gaps and fixing those ourselves to protect our brand and customers is such a short-sighted mentality and quite frankly it’s mind-boggling to me.

The question is; why are restaurant operations teams hesitant to implement Ops Management systems, like OpsAnalitica, that could help them run better daily restaurant operations?

I think it comes down to being held truly accountable, visibilyt/perceived liability, and self-preservation at the leadership level.

Now, I want to acknowledge that running 1 or 4000 restaurants is hard. From my experience, they are both equally challenging with different problems but it takes everything you have to keep the doors open at these locations.

I also want to acknowledge that the technology that one would use to get real-time visibility and oversight at the restaurant level is fairly new, we launched in 2015. There were a few players when we started but not many. This technology really became prevalent with the invention of the tablet and smart phone.

Today, most restaurant companies have very little oversight into daily operations. Because of this, they look at the following data points to determine how well a restaurant is operating:

  1. Audits: restaurant inspections that are conducted on a quarterly basis by the field teams or by 3rd party auditing companies. These inspections are thorough but happen so infrequently that they can’t be used to change behavior or ensure that daily operations are being executed to standard.
  2. Costs: looking at controllable costs: food, labor, paper, liquor, etc. to determine manager efficacy.
  3. Customer Feedback: looking at number of complaints and compliments. This number is skewed because so few people care enough to actually leave a comment. These people are the most passionate from a good/bad perspective, that they are willing to take the time to tell you what they are experiencing, you have to look at these numbers with some skepticism. You could also lump social reputation, Yelp Scores, into this category and I would suggest that social media is easier to use than traditional customer experience programs.
  4. Health Inspections: most restuarant companies don’t do much with this data because it is hard to get. Also, health inspections are notoriously skewed up according to Google, see our last blog, and they only happen a couple of times a year.
  5. Sales: Another measure that looks at manager efficacy but really need to be looked at in comparison to other restaurants in the immediate area, including competitors. A restaurant could have incredibly high sales but still not be running all that well, look at airport restaurants, who have high volumes because of location and a trapped clientele.

Traditionally, Ops Teams have evaluated all of these measures and backed into restaurant operations scores but these measures don’t tell the full story. As a side note, when you take these traditional data points and overlay them onto the data you can get from an OpsAnalitica or any other Ops Management system, that is the holy grail. You can directly correlate how operations affect sales, costs, and customer satisfaction.

Accountability

Because of the way most restaurant companies structure their organizations and how we currently measure restaurant operations, see above, there is very little direct accountability anywhere in a traditional restaurant ops team from the restaurant level to the VP level.

Restaurant managers/franchise owners are in charge of their restaurants, and in a perfect world, they would execute to all company standards.

The restaurant’s direct supervisors, Area Directors, traditionally manage multiple units and are very rarely in each of their restaurants on a daily basis. Depending on the size of the organization they may only get to a restaurant 1 time a month or a quarter.

The Area Director level of management is corporates representation within the organization but it is a very hard job to be effective at. It goes up from there with upper levels of management getting to restaurants on even a more infrequent basis.

Today chains rely on audits for direct contact with the restaurant. Audits are only so effective, because they happen too infrequently to matter. For instance most audits ask a question about how well the restaurant is doing on completing their daily food safety and operations checklists. A lot of operators will point to these questions as an example of them doing their due dilligence on food safety and ops procedures.

There are two things wrong with these “are people following procedures” questions: 1. they aren’t worth enough points to truly affect the audit score, therefore they don’t penalize people enough for not following the daily procedures. You have procedures but have no mechanism for holding people accountable to following those procedures.

2. Audits generally happen quarterly, so they don’t meet the timely standard for providing effective feedback. If you are auditing in December, it’s impossible to hold people accountable for not following procedures in October.

Restaurant organizations lack direct managerial accountability and since they’ve never had it, they don’t perceive that they absolutely need it today. I think it goes a little deeper than that. I think they know, I knew when I was in corporate ops at Quiznos, how things are at the restaurant level and they are worried about being completely overwhelmed with new issues if they started to hold people accountable.

They see holding people accountable to following procedures at least in the short-term, could be creating a ton of new work for themselves that they don’t have today because they don’t know what they don’t know.

Staffing is also a problem because current org structures are not staffed to handle real-time management of all their restaurants. This is a fair and real concern but not an impossible one to be overcome. With our technology, one or two people could effectively manage a large organization of restaurants from corporate using our alerts and reports. Staffing shouldn’t be used as an excuse for not implementing a system that would increase sales and customer satisfaction across the organization, it is an opportunity to reorganize your current teams to be more effective.

Visibility and Perceived Liability

If you start to get real-time visibility and issues are being bubbled up to management, you have a brand and legal responsibility, due care and due diligence, to address these issues immediately and get them rectified.

I would agree that this a real legal liability to know something is wrong and not take action. As an Ops Leader, you should absolutely put into place procedures to deal with issues in real-time and work to make sure that your operations are safe. That goes back to staffing and being able to address things in a timely manner.

When in the history of the world was it a better long-term policy to ignore bad things happening within your business instead of addressing and fixing them? Never!!!!!

I think that a lot of restaurant company executives would be surprised or at least overwhelmed by the amount of daily critical infractions they would find if they had the OpsAnalitica system implemented across their restaurants. I’ve seen the data coming in and it is pretty scary.

Pretending that you don’t have issues is not the same as not having issues. Not having issues because you are proactively managing them out of your business is better.

Self-Preservation

I’m not going to harp on self-preservation for 20 paragraphs. Nobody wants to be perceived as not doing a good job. It takes strong leadership to lead substantive change into an organization and to build new skills and change procedures. It’s not easy or fun.

Conclusion

Let’s pose this question to ourselves. Would you fly on an airplane if airplanes were franchised and operated similiarly to how restaurant companies operate their restaurants? Hell No!

The comparisons between airplanes and restaurants is very relevant. A busy restaurant will serve as many people as a plane would transport on a trip. Both airlines and restaurants have massive responsibilities in ensuring the health and safety of their guests. If a restaurant or an airline doesn’t do everything they are supposed to do, the results can be catostrophic. The worse case scenario doesn’t happen all that often but does happen and it destroys lives.

If you are a restaurant executive that wouldn’t fly on a franchised plane that was operated by one of your franchisees. Then you have to ask yourself why a person should eat at one of your restaurants.

I’ve made the case that restaurant Ops Teams have been resistant to implement Ops Management systems like OpsAnalitica, because they are concerned about being held accountable for their restaurants, the potential for an increased amount of work that would cause them in the short-term, the liability that could be incurred by knowing what is happening in their restaurants if they are unable to get those issues rectified, and their own self-preservation. All of these reasons are BS.

We now have a technology that can help us run better restaurants, keep our guests safer, and increase customer satisfaction which will lead to increased sales and profits. Restaurant leaders have a fiduciary responsibility to their stakeholders to implement systems that are going to protect and grow their investments. We have a human responsibility to run better restaurants for our customers.

If you want to learn more about OpsAnalitica, click here.

Real-time Collaboration is the Key to Getting Your Checklists Done Every Shift

Real-time Collaboration is a feature of the OpsAnalitica Platform, it allows multiple team members to work on a checklist at the same time as well as allowing you to start a checklist on one device and finish it on another. It is probably the most important feature for driving checklist compliance that we have released since we began the company and we are the only checklist platform that has this functionality.

Why is real-time collaboration so important for getting checklists done on time and why does anyone care? It splits up the work and reduces checklist completion time. Instead of a manager or chef being solely responsible to complete a very extensive and time-consuming checklist by themselves, the same checklist can be completed by a couple of team members simultaneously in 1/3 to half the time.

Checklist completion time is one of the biggest factors driving pencil whipping and non-completion of checklists. Who has an hour of uninterrupted time when running a restaurant? No one! If you are pressed for time, dealing the with the daily fires that all restaurant managers face, with the next shift rapidly approaching, it is easy to convince yourself that you don’t have time to do your checklists correctly. So most managers don’t.

94% of restaurant operators we surveyed stated that they didn’t think their teams were doing their checklists accurately.

Guest satisfaction, sales, and profits suffer when restaurants aren’t ready for the meal period. Checklists were developed to help managers ensure that they were ready for their guests every shift. When your checklists don’t get done the whole system breaks down and you run a worse restaurant.

Lack of follow-up is the other factor that drives checklists not being completed. Peter Drucker’s famous quote applies here, “What gets measured gets improved.”

If management at the store and area levels aren’t holding their employees accountable for doing their checklists, then they aren’t going to get done.  That is what we see in the industry today. Most companies have no system in place to manage daily operations at the above store level, area managers and directors don’t get notified when people aren’t doing what they are supposed to. Therefore they can’t intervene and drive the desired behavior at the store level.

Most companies have added questions on their audits about checklists compliance, but often times it is not worth enough points to significantly affect the audit score to cause a real consequence for not following procedure. This is one of the largest fundamental flaws in how restaurant companies have organized themselves.  Restaurant companies spend millions of dollars creating procedures, training materials, and on training employees but have no follow-up mechanism that ensures that the restaurants are complying and doing what they are supposed to.

Real-time visibility into restaurant operations, critical violation notifications, and checklist compliance are all things you get with the OpsAnalitica Platform, these features allow managers in all levels of the organization to see what is happening and hold their teams accountable. It is a game changer for running more consistent operations. In addition, if you use the platform to track your food safety process, the OpsAnalitica platform will be your digital recordkeeping platform helping you comply with the expected digital record-keeping mandates.

Using the OpsAnalitica platform with its real-time collaboration features will help you drive checklist compliance and run better, safer and more profitable restaurants. Our visibility and notification features will help your teams hold your managers accountable for following your procedures. This one-two punch is what is needed to run better restaurants and helps you control what you can control. If you are interested in learning more, check out Opsanalitica.com.

 

 

High Turnover = Lower Ops Consistency

The number one issue facing restaurant operators over the last couple of year, as told to us by restauranteurs at all levels in the business, is staffing and turnover. It is so hard to find good people to work in your restaurant and to keep them for any length of time.

I’m sure you are familiar with Maslow’s Hierarchy of needs, thank you grad school.

 

Maslow’s Hierarchy of needs basically lays out a pyramid of human needs. Stating that you must fulfill the needs at the bottom of the pyramid first, food and water before you can move your way up to the top which is Self Actualization. To put it another way, you can’t become Self Actualized and achieve your dreams if you are huddled, starving, and cold, living in a damp dark cave not knowing when or if you will ever eat again and worried about being killed by an animal. Neanderthals weren’t self-actualized, they most likely spent 99% of their lives in pursuit of basic Physiological Needs. That is why there were no great works of art or literature that came from the caveman.

If there was a Maslow’s Restaurant Hierarchy of needs, then staffing would replace Physiological needs. You can’t run a restaurant without a team of people. We need good people to show up, work and take their jobs seriously. I remember when I was a restaurant manager at a large high volume P.F. Chang’s in the early 00’s. I was the floor manager and the worse part of my job was dealing with night shift call outs that took place every day. I would find myself on the phone after the lunch shift between 2 and 4 calling people to come in and cover shifts that people had called out of. Now a lot has changed with scheduling programs and that is great. It was hell.

What exacerbates the staffing problem in the restaurant industry is that we are always open. If you are a typical restaurant you are open at least 2 shifts a day 363 days a year. When you lose a person, and you don’t have anyone to back them up, customers don’t care. They want food and they want to eat it now. When you can’t find people or the people you have aren’t operating at full capacity because they are new and just out of training, it is the equivalent of your restaurant being deprived of oxygen and water. You can’t do anything else. You have to fill those shifts because the customers are coming.

One of the biggest consequences of not having a fully staffed and trained restaurant team is Restaurant Ops Consistency.

Let’s define Ops Consistency, it is the ability of the restaurant team to execute the daily operations of the restaurant to service guests.  It is running the restaurant. It is sidework, it is prep, it is making food and drinks and delivering them to guests, it is menu knowledge, providing tasty and safe food in a clean and inviting environment.

Think about going to a restaurant on the day that it opens, huge mistake. The team is new, they don’t know how to do everything yet, new employees tend to make more mistakes and they work slower,  they are green. The guest experience these teams are creating is the product of being brand new at their jobs.

Take this one step further, you could manage a restaurant that has been opened for years but if you have high turnover then you are constantly staffed with a mix of new employees and seasoned employees, in some restaurants the seasoned employees have only been there for a couple of months. The guest experience you are able to provide is going to be inconsistent and less than what an experienced team could provide. Your Ops Consistency, your guest experience, and ultimately your sales and profits will all go down.

OPERATIONS ARE WHAT THE GUEST IS PAYING US TO DO, IT IS THE CORE OF RUNNING A RESTAURANT, IT IS BASIC BLOCKING AND TACKLING. IF YOU DON’T OPERATE WELL YOU WILL GO OUT OF BUSINESS!!!

Operations consistency is probably the biggest challenge that is facing operators behind staffing and turnover and because filling shifts is the immediate fire that must be put out on a daily basis, it doesn’t get as much attention as it deserves, to the detriment to the business and the industry.

How do you make your operations more consistent in this staffing market?

Understand what your Employees are Costing You and create employee retention incentives:

How often do you give your restaurant employees raises or other incentives to stay with you? Executives in big companies get golden handcuffs, usually in the form of stock options or bonuses, to prevent them from leaving. As an industry, we have to figure out ways to create affordable golden handcuffs for our restaurant employees. If we know the average cost of hiring and training a new restaurant employee is $5,864 based on a report from the Center of Hospitality Research at Cornell University. Then we know that if we can spend less than that number and retain an employee for longer then we are winning. We have already agreed that a more veteran staff is capable of providing better customer experiences than a greener staff and that when you lower turnover it gives management more opportunity to proactively grow their business vs. focusing only on how are they going to get enough bodies to work the next shift.

Restaurant Managers need to understand the ROI for every new employee and job role:

  1. Calculate how much sales and profits an individual employee in a job role is responsible for creating per hour based off of past sales. The easiest way to do this would be to look at what a fully staffed restaurant looks like from a total hours perspective and divide that number into an average sales figure over a time period. The number you are ultimately trying to get to is how much profit per hour is an employee generating for your business, it is that number that you have to divide into your costs to determine the payback period and ROI for an employee.
  2. Then calculate your current new hire training costs, employee costs, etc. for each job role. Average out any slight pay differences.
  3. Look at what the payback period is for each employee, or how long do they have to work for you before they start to generate an actual return on your investment.

Once you have the number of hours an employee has to work before you make a dime on them, you will be able to make smarter decisions. Create incentives for them to stay longer, get rid of bad employees faster.  Every restaurant manager tracks labor cost % but very few know how many hours a new employee has to work for them to break even on that investment.

Remember that incentives don’t always have to be monetary but monetary ones will be more effective. Thanking people and buying them a drink or a meal can go a long way. If they make 100 bucks a shift with you and could make 200 a shift across the street, you probably won’t keep them.

One way to approach incentives is to create certifications or levels within their job role, tie skills acquired to pay raises, recognize longevity with raises and privileges. I will start you at $10 an hour and every 90 days that you stay with us, I will give you a $.25 raise. More senior employees get the best shifts, etc..

Be creative and know the actual cost of an employee leaving. Also, carry out exit interviews with no judgment, either over the phone or on an online survey tool. Try to understand why people are leaving so you can correct those problems. Also, if a person reports a reason for leaving that is an improper conduct issue, make sure to report it to HR to protect the company.

Invest in systems more than training:

I’ve said before, in other blogs, and I will say it again. I’m not advocating not training people. We have to train our teams to do their job functions but everything that is a repeatable daily task we should systematize.

Be Aware: The LMS companies will tell you that training is the answer to everything because they want you to buy an LMS system. In reality, training is important but paying people to remember things that are repeatable in nature is waste of time and money.

The culture systems people will tell you that high performing cultures are the most important thing and that you should buy a system that focuses on your culture. Culture has to be experienced by the team at the restaurant and provided by management not preached about.

There is that famous saying ” The beatings will continue until morale improves.” I always think about that when people talk to me about culture. I’ve worked at restaurants where we went through tons of culture training and then the management team wasn’t very good and didn’t live the culture they were preaching.

The reason historically the restaurant industry has put all of our eggs in the training basket when it came to operations consistency wasn’t because it was the most effective way to drive operations consistency it was the only thing you could really control in a multi-unit restaurant operation.

The technology didn’t exist to see what was happening in your operations or to hold your team accountable for following your procedures until the last few years. So everybody just pretended that the reason people weren’t following a procedure was that they didn’t know how to do that task. In reality, it was because they didn’t want to or didn’t remember or didn’t care about following the procedure as there was no consequence for not.

Things don’t get done in restaurants because management isn’t holding people accountable for following procedures. I’ve seen it myself, some set-up item isn’t done at the restaurant, if you walk up to the employee responsible and ask if they know how to do it, they can do it. They don’t need to be trained, they need to be reminded to do the task and held accountable for getting it done.

We as an industry have to break away from how we used to run restaurants and look at this situation critically. If you know that an average employee is only going to stay 6 months would you train them as if they are going to be with you for 10 years? Of course not. The reality is this; your employees will leave if they can make more money across the street. Stop training them on stuff that they don’t need to do their immediate job to lower your risk and cost.

Instead, invest in systems that can help employees become more productive quicker and that also increase your Ops Consistency. OpsAnalitica is Shift Readiness and Ops Consistency platform that allows you to script out the perfect shift in every location. It allows you to define what needs to be done every day from the manager to each job position so that those employees don’t have to think or remember what needs to be done.

OpsAnalitica can provide on the spot training and detailed instructions which will get employees productive quicker and ensure that all crucial tasks can be completed in a timely manner. OpsAnlitica provides you with real-time visibility into your operations so your location and above store management can see what is happening in the restaurant and take immediate action to ensure that Ops Standards are being executed and that guests are being taken care of. Most importantly it provides leadership with a feed of restaurant operations information so they can make data-driven decisions about their businesses.

This is one of the toughest restaurant labor markets in history. A combination of generational demographic changes, a strong economy, and overstepping government interference has made it harder and harder to find, train, compensate and retain good employees.  In addition to the stress of having to constantly find, hire and train new employees to keep the restaurant staffed. The second biggest consequence of this tight labor market is Operations Consistency.

Restaurants that suffer from high turnover always have a large complement of new employees who don’t have as much experience and aren’t as capable of delivering the same level of service as more experienced employees. The restaurants aren’t able to get ahead because all efforts are spent just keeping the restaurant fully staffed, leaving management little room to make the strategic decisions needed to grow their businesses.

Restaurant managers have to invest the time to create an ongoing and increasing incentive program to keep employees for longer to maximize their ROI on each employee. Restaurant companies need to invest more into systems, OpsAnalitica, that can take the guesswork out of running the restaurants for each position every shift and to focus on holding their teams accountable to following their procedures. By providing a system that can dictate what needs to be done and when, managers can get employees more productive quicker and reduce onboarding and training time, reducing those costs will increase employee ROI.

Your restaurant’s sales and profits and your strategic goals are going to suffer if you aren’t able to find, train, incentivize employees, and provide them with the systems that are going to make them better faster while ensuring that your operations consistency in every location is maintained. Ops consistency systems and retention incentives have to be your top priority for the long-term success of your restaurant.

 

 

 

Everyone has a Letter Grade in Their Window Now

If you haven’t heard yet, Yelp is now displaying health inspection scores on your restaurant page. Which means, every restaurant in the country could have a health inspection letter grade in their online window. Make sure you read the whole blog as I put together a list of things all restaurant operators should start doing in regards to this move by Yelp.

There is a great Forbes Article entitled Yelp To Display Health Inspection Ratings On Restaurant Pages Nationwide that I encourage you to read. To save you a little time I will summarize the big bullets from the article below:

  1. Yelp will be posting your Health Inspection Score on your business page.
  2. They plan to have 750,000 health inspection scores posted by the end of the year. There are about 1.1 million food service establishments in the US.
  3. They are getting the data from local governments and a startup named HDScores.
  4. HDScores has 1.2 million scores in 42 states
  5. Yelp gets 30,000,000 unique mobile visits a month, 50% of those are restaurant searches.
  6. “A Harvard Business School study, in collaboration with Yelp and the City of San Francisco, found that displaying restaurant hygiene scores on Yelp led to a 12% decrease in purchase intentions for restaurants with poor scores compared with those with higher scores.” – Forbes Article

What does all this mean to restauranteurs? It means that you have to actually take Yelp and your restaurant’s cleanliness more seriously than ever before because not doing so could affect your revenues and profits.

A lot of operators have scoffed at Yelp reviewers and Yelp the company for years. Thinking that every bad review was a competitor trying to steal your business or some snobby know-it-all that thinks they are a professional restaurant critic.  In addition, Yelp hasn’t always been the best corporate partner, accusations of review placement manipulation and strong-arm advertising tactics have been lofted at the site.

The fact is this, by posting health inspection scores, Yelp just made itself more relevant for restaurant patrons than it ever was before. With Yelp displaying health inspection scores, right next to customer reviews, pertinent data about the business, links to making reservations, and links to the menu. Most savvy customers are going to look at Yelp before they even visit the restaurant’s website.  Because the restaurant’s website isn’t going to advertise that they got 70% on their last health inspection, but it will be right there for the Yelp customer who is reviewing your Yelp page.

At first glance, Mr. Mike’s 3 stars and captioned reviews would not stop me from trying this restaurant, Their 58 out of 100 health score would. 

One thing restauranteurs have to acknowledge is that patrons have always cared about restaurant cleanliness, they want to eat in clean restaurants that serve safe and delicious food.  In the past, there was never an easy way for them to add health inspection scores into their decision-making process because it wasn’t easy to get them.

Now that this information is available, look at bullet point 6 above – a 12% decrease in purchase intent for low hygiene scores, you better believe that it will enter into their decision-making process. If you have a low Yelp star rating and a bad health inspection score, you could be in real trouble.

Another thing to consider with Yelp posting health inspection scores, it’s going to be a flawed process. HDscores and Yelp are dependent on county health departments to provide them with the inspection data. Each county is staffed differently and they all have different procedures for handling health inspections, critical violations, scoring, reinspections, etc..

In some cases, a restaurant might get a bad health inspection score with a lot of critical issues but they might correct all critical violations while the inspector is on site. They have a low score but have fixed their issues and are technically safe for business, it won’t matter because the low score is what is going to be recorded by the health department.

Another nightmare scenario for restaurant owners, you get a bad health inspection score and can’t get reinspected for 90 days because the county is backed up. Who knows how many times HDScores or Yelp query the health department databases to update their info or how quickly the health departments get their data updated from their inspectors? All of these time lags could affect how long a bad score stays up on Yelp’s website.

Normal people outside of the food service industry don’t understand the nuances of health inspections and they don’t care. Click here to see a summary of the health inspections for Mr. Mike’s above, I got to this page by clicking on the Health Score link right next to their health score on their Yelp page. The general public isn’t sanitarians and won’t know why bumpy surfaces on walls or the lack of a thermometer could be huge issues.

The general public assumes that all health inspections are equal, they are fair, and that they happen in a timely manner. They trust that the health inspector is looking out for their best interest and they are willing to believe them. My point is this, you aren’t going to be able to educate the general public on the in’s and out’s of health inspections and defend a bad score, they could care less about all the injustices in this system, they are just not going to eat at your restaurant.

The only way to make sure that these health inspection scores don’t hurt your business is to get A health inspection scores every time. The only way to do that is to implement basic sanitation and food safety programs in your restaurants and hold your teams accountable on a shift-by-shift basis to following those procedures so you are 100% ready for every health inspection.

For years, we at OpsAnalitica have been preaching for an increased emphasis on food safety, restaurant cleanliness, and increased hygiene. To be honest, this messaging has never worked for us. Restaurant Operators haven’t been reaching out to us saying, help make me safer so I can protect my customers and my brand. The reason why is because, before this move by Yelp, a bad health inspection score didn’t affect most restaurants in the country. You got inspected maybe twice a year and probably corrected most issues while the inspector was on-site. The score wasn’t posted anywhere that your customers could easily find, only a few jurisdictions post letter grades in the window, so a bad score didn’t affect customers perceptions of the restaurant. That has changed.

Here are some steps that restaurant operators need to take immediately to ensure that their restaurants aren’t negatively affected by their Yelp Rating and Health Inspection Score.

Yelp:

  1. Claim your Yelp page. An unclaimed page makes it seem that management is disengaged from its customers.
  2. Respond to good reviews by thanking the customer for their patronage.
  3. Try to contact customers that wrote bad reviews and handle customer complaints that show up on the site within 24 hours. This shows that management cares about its customers. Offer restitution for angry customers in exchange for getting them to remove or amend their reviews to show that you addressed their issues. Some people will abuse this, but in the long run, it is better to not focus on the negative scammers but to focus on wowing every guest that comes to your restaurant and to protecting your Yelp Reputation.
  4. Flood Yelp with good reviews of your own. Incent customers to review your restaurant on Yelp to ensure that you get a high star rating. Hand out cards with a shortened URL to your Yelp page or send an email with a link for a review. Offer a free dessert and have an iPad in the store, have them check-in and give you a good review and then buy them a piece of pie or cake. Every Yelp star is worth a potential 5 to 6% increase in sales. My guess is that sales stat is lower for chain and franchise restaurants but now that Yelp is showing health inspection scores, I will bet that those restaurants will start getting searched more.
  5. Accept that Yelp is a necessary evil and that it adds value to you and your customers. They provide guests with a way to learn about your business and communicate with you about their experiences in a more open way than you typically get from a one-on-one interaction or a guest satisfaction survey. In addition, they provide you with a free business web page that is on one of the most searched websites in the world. Search your restaurant and I guarantee that your Yelp page will be prominently featured on page 1 of your search results.  According to the Forbes article, Yelp is the 25th most visited website in the US. I’ve said this before many times, I was a traveling consultant for years, I used Yelp all the time to find restaurants in the cities I was visiting, I’ve never had a bad experience at a 5 star rated restaurant that I found on Yelp.

Better Health Inspection Scores:

  1. The only way to ensure that you are going to get A’s on your health inspections is to run an A restaurant every day.  It’s not hard to do and it is what you should be doing.
  2. There are two major components to running A restaurants. Proper Procedures and Execution. Most chain restaurants have food safety procedures in place and that doesn’t guarantee that they will get an A.  Procedures aren’t enough you have to hold your team accountable to executing on those procedures every shift.
  3. If you have procedures in place focus on execution. Focus on getting your teams to follow your procedures every shift in every location. It is better to focus on high compliance for a couple of critical checklists than to try to get low compliance on a lot of checklists and procedures. High compliance on critical checks!!!
  4. If you don’t have procedures in place at this time, take critical items first approach.  Look at your local health inspections, identify the critical violations, and build procedures that check those violations every shift. If you just focus on critical violations, you will run better restaurants and you will ensure that you are not going to get dinged on an inspection.
  5. Ditch the paper. Most companies still use paper checklists, you can’t get any accountability on paper checklists. You don’t have any visibility into whether or not your procedures are getting completed if your teams are doing them accurately, or that they are identifying critical violations.  Running restaurants using paper checklists is harder than it needs to be for managers at all levels of the operation. Using a digital checklist platform, like OpsAnalitica, can provide you with effortless accountability, real-time notifications, and digital record keeping of your safety procedures.
  6. One more note on ditching the paper, digital record keeping is coming to restaurants. It has already been mandated for food manufacturers and everyone is expecting that it will be implemented by the government in the next 1 to 3 years. If you are looking to focus on execution, run better restaurants, get an A on your next health inspection, and be ready for the future, you should look at moving from paper to OpsAnalitica, a digital record keeping and shift readiness platform.

Yelp has made itself more relevant than ever by posting health inspection scores on their site. I predict that this is going to change how people decide which restaurants they are going to visit by putting more emphasis on food safety, which is good for consumers and ultimately good for the industry. For restaurants to be competitive and to not have their health inspection score affect their sales, they are going to have to focus on cleanliness and food safety as core values of their operations because if they don’t their failure is going to be on their Yelp profile.

One of the core values of the OpsAnalitica Way, our guide to multi-unit operations, is control what you can control. Restaurant operators need to realize that they are in complete control of what happens in their four walls. Food safety and clean restaurants aren’t just under their control they are their responsibility to their customers and their brands.

We know that this is going to be an imperfect process and a lot of restaurants are going to get hurt in the short term as they get bad health inspection scores and those scores stay on their Yelp profile longer than they should due to inefficiencies between all the parties involved.  This is going to sound like a jerk thing to say, I don’t care. I don’t care one bit. Don’t have dirty restaurants, that is what we should be focusing on.  Focus on being great and doing what you are supposed to do and this change will not affect you at all and may even help increase your sales.

One last prediction, I bet that Yelp will see an increase in monthly restaurant traffic over the next 6 to 12 months because of showing Health Inspection Scores.

If you want to learn more about the OpsAnalitica Shift Readiness and Digital Record Keeping platform, please go to OpsAnalitica.com.

Good luck

 

 

Lack of Team Accountability is Stealing your Profits

If you’re not holding your team accountable for running the restaurant your way, then your employees are running it their way.  SHOCKER, they are doing what they think is best (or sometimes easiest for them) and not necessarily what is best for the restaurant. They are typically less experienced so what can you expect?

Over the last couple of weeks, we have done some deep dives, through our blog, on employee productivity and shift readiness. This week we are going to talk about how holding your teams accountable for following your standards, drives consistency in your operations, increases customer satisfaction, and organically drives sales and profitability.

Every day in every restaurant there is a set-up period where we bring in our staff to start getting the restaurant ready for your first meal period.  It can be the most expensive part of our day from a labor cost perspective because, in most restaurants, you have the most staff working without any sales being generated.

It has always been a juggling act, as a manager, to get your duties completed, deal with any fires that inevitably crop up, and make sure the employees got all of their tasks done correctly before the doors open.

This gets complicated today because so many restaurants operate on a model, where employees are expected to set-up their stations without truly being held accountable for following the restaurant’s system. In most restaurants, checklists are on the wall and not being filled out or marked to show they were followed or completed by an employee.

A checklist in the beverage station that looks like this:

  • Iced Tea
  • Coffee
  • Creamers
  • Lemons
  • Soda Station
  • Glasses

The problem with a list like this is that it is too generic, too unspecific. It puts the responsibility and the burden, on the employee to make decisions on what specifically needs to happen. Also, it is so vague that it is hard to hold someone accountable for meeting a standard.

What does Iced tea really mean?

  • Does it mean to make one or two pots of iced tea? If two, two of the same kind or different kinds?
  • Do you need back up tea bags ready to go? If yes, how many?
  • Does it mean you have to assemble the iced tea buckets?
  • When do you make the iced tea?
  • If I make iced tea but don’t have backups can I say that I’m done?

Also, this assumes that the employee remembers how to do this stuff correctly. The one giant lesson from Atul Gawande’s book The Checklist Manifesto is don’t rely on anyone’s memory because we as humans aren’t great at remembering details.  Add record levels of employee turnover, relative experience of the average employee, ESL, generation z, and any other host of factors to the list and relying on your employee’s memory and decision-making ability can be a risky proposition when you are trying to run consistently great restaurant operations.

If the manager doesn’t get a chance or doesn’t catch that an employee didn’t get something done to standard then we end up finding out about it after the fact.

The problem is after the fact generally comes to light when something has negatively affected a guest. By not holding the team accountable for following the procedures that we have in place, we hurt our customer satisfaction, sales, and profits.

Here is the deal:

  1. We have to spell out our procedures specifically:
    1. To help our employees know exactly what we want to have done and when.
    2. To make them more efficient at setting up the restaurant increasing employee productivity while continuously retraining employees.
  2. We have to hold our employees accountable for executing exactly what we expect.
    1. There is no half following a procedure you either do it 100% or you may as well not have done it at all.

Processes that need to be completed 100%, are called all or nothing processes. If a pilot does everything they need to do to land the plane except put the wheels down, does it count? If you do everything you are supposed to do to set-up the beverage station and except grab glasses, does it count?

No!!!! Obviously, the plane example is more severe than the glass example but in both cases, someone is inconvenienced.  Don’t be fooled, in a lot of ways the restaurant industry has just as many life and death decisions being made every day as a pilot.  Look at the Dickie’s BBQ where the guy put cleaning chemicals in the sweet tea, and that woman took one sip and felt her insides being eaten away by the acid. If a cook grabs expired food and gets an old, recovering, or young person sick, it could be as catastrophic as a pilot forgetting to do something. 5 people died from the latest romaine lettuce E-Coli outbreak in the summer of 2018.

We need our employees to do things a certain way and we need them to do it that way every time. The only way that is going to happen is if the manager Inspects what they Expect and holds the team accountable for following their procedures.

Some signs that your team isn’t following your procedures.  80% of what is supposed to be done by any team member gets completed every day and 20% doesn’t. Regularly during meal periods things that should have been done during set-up weren’t done and you as the manager are running around trying to fix someone’s mess up.

If you are VP of Ops, go read your Yelp reviews, try to trace back the comments to your readiness procedures.  With a little reading between the lines, you will be able to trace back a lot of non-employee complaints to exactly where the restaurant fell down in getting ready for the shift.

What is interesting is that when we leave it up to the employee, sometimes their personality and how they work aligns with the goals of the restaurant and sometimes it doesn’t.

They are so good at stocking their station but they don’t do XYZ no matter how many times you ask them.  Sound familiar?

Here is what is really happening, they aren’t following any of your procedures as you have them designed.  They are setting up their station based on what they can remember or what is easiest and most comfortable for them and it is just a coincidence that on some of the items they like to do align with your procedures.

Let’s use an example of a grill cook. You have 10 things that the grill cook has to do before each shift to be ready for the meal period. One of those items is stocking their station. This grill cook stocks their station every time.  One of the other things that your grill cook doesn’t do consistently is check for expiration dates.  This grill cook is consistently grabbing whatever item is closest and easiest to reach on the shelf and that is causing FIFO and freshness issues.

If your grill cook was following your procedure then they would stock their station and check for expiration dates. What is really happening is that the grill cook hates running out of stuff because getting in the weeds is super stressful for them, so they stock correctly to avoid that personal pain. They don’t like looking for things, don’t understand the why behind FIFO or freshness, so they don’t check the labels.

Once again, they aren’t following your procedure, they are doing what they think is best based on their experience, and it may not be what is good for the business.  In this example, your business suffers higher food costs because the manager isn’t holding the cook accountable for following the procedures on using oldest food first.

The only way to get employees to do what you need them to do, to put the business and shift-readiness first, is to hold them accountable to follow your systems. To make it more painful to not follow procedures, because you are delivering timely feedback and holding them accountable for their decisions in real-time. Also you are now continuously retraining on the workings of your operations which is important.

We know we need to hold our teams accountable, how do we make it easy for restaurant managers to do this on a daily, shift-by-shift basis.

Management by Exception

We need to use software, the OpsAnalitica Platform, to give employees what they need, measurable standards and to spell out exactly what they need to do. At the same time a system that alerts managers when people haven’t done what they are supposed to or found an issue.

Management by exception assumes everything is happening as planned and has a built-in process to tell you when there are issues. This frees up mental space and time, instead of checking everything it allows the manager to go about their duties and then tells them when there is an issue that they need to check.

What is great about implementing a management by exception system is that the system takes on the task of holding your employees accountable for following your procedures.  The OpsAnalitica software is that extra person on your team who has nothing else going on but making sure people are doing what they are supposed to be doing.

The reason you would choose the OpsAnalitica platform to hold your team accountable is because we have one of the easiest platforms to use and our managed service, we will administrate the platform for you ongoing, means that you have an extra team member taking the management of this new software off of your plate freeing you up to run your restaurants.

Accountability = Consistency 

Every guest that comes to your restaurant has an expectation of what to expect based off of the brand you have created.  When they get what they expect in a timely manner from friendly people, they leave happy.  The experience reaffirms what they believe they know about your location and your brand

When they don’t get what they expect they leave unhappy.  When guests are happy they return at their normal interval or even sooner, which keeps sales the same or can increase them.  When guests are unhappy the take longer to return or may not return at all, that lowers sales.

One of the biggest factors on whether a guest is happy or unhappy comes from their last dining experience, which is completely under the control of the restaurant management team.  Shift readiness plays a huge part in servicing guests and meeting expectations.  Holding your team accountable for following your procedures so your restaurant operates as designed is how you accomplish that.

If you want to be successful you have to spell out exactly what you want your employees to do, and hold them accountable for doing it your way every shift.  Those are the first steps to driving customer satisfaction, which leads to increases in sales and profitability.

Increase Employee Productivity

With the 100% turnover rate in the industry and some of the lowest nationwide unemployment in years, according to Modern Restaurant Management’s Success Survey 60% of restauranteurs indicate that finding and retaining employees was the top area of opportunity in the industry. #3 was attracting/retaining customers. #4 on the survey was optimizing speed and efficiency to drive productivity.

This has brought the topics of customer satisfaction and employee productivity top of mind for managers looking to maximize employee ROI and minimize the affects of employee turnover on their business.  .

When you are looking at employee productivity you only have two main levers to pull: reduce labor cost and/or increase sales.

The fastest way to increase employee productivity is to generate more sales with the same number of employees working the same amount of hours.

The easiest way to increase sales organically is to make sure your restaurant is 100% ready for every shift, this gives you the best chance to wow customers and exceed their expectations. Also, being ready is completely in your control as a restaurant manager and your job.

The best way to improve shift readiness is to use the OpsAnalitica Platform for holding your team accountable to be 100% ready for every meal period. Check out our case study to see how we helped increase productivity and sales for one our clients here.

In this guide, we are going to assume you are at maximum sales and you are looking for other ways to increase employee productivity.

Here are some of the realities operators are struggling with on a daily basis that affect employee productivity.

  1. High turnover – you hire employees, train them at a considerable cost, then they leave.
  2. No hand – to quote George Costanza “I‘ve got no hand, Jerry!” The Status Quo in restaurants today is that you have made huge investments in training and figuring out the best procedures to run the restaurant,  your teams kinda use them but it’s hard to enforce, and your customer satisfaction is taking a hit.
  3. Can’t get ahead – you are so busy staffing and training that you can’t focus on anything else.

Does any of this sound familiar? Here are some quick thoughts:

  1. You can’t stop people from leaving, don’t build your business around individuals, structure your business around roles and systems. Consistently move people into different roles throughout the restaurant, this could be different stations or jobs.
    1. Provide systems, a shift readiness app, to support your team and to ensure consistency of operations on a shift-by-shift basis.
    2. Take a more generalized approach to your team, don’t rely on a few rockstars or lock them into one role, try to create a deep bench of people who can do everything. Think Moneyball.
    3. Reward people for giving you two week and 1 month notices if they work out there time, this feels weird because their leaving, but your goal should be to keep the restaurant operating as consistently as possible and this could give you some breathing room to find someone new and get them trained.
    4. Pay a referral fee even if the person is leaving if they can help you find their replacement.
    5. Try to streamline initial onboarding training, to reduce the initial labor cost, and get new hires on the floor quicker.
  2. You know the best way to run the restaurant, you have spent countless hours/dollars training all employees on how to do their jobs and you have checklists/procedures posted on the wall, and nobody including your managers are using them fully. It’s your customer satisfaction, sales, and profits that are suffering. Now with mobile technology and apps like OpsAnalitica you can get literally script out the entire shift for each role by day and hold people accountable to executing the exact way you want them to on a location-by-location, shift-by-shift basis. This is a game changer for running better operations!
    1. You can dictate what needs to be done and when by each team member.
    2. You can see what has and hasn’t been completed in real-time.
    3. You can hold people accountable for following the system and making sure that the restaurant is 100% shift ready at the beginning of every meal period, which gives you the best chance to maximize your sales and profit opportunity every shift.
    4. One of the most infuriating things for a restaurant operator is to have to comp a meal, get yelled at by a customer, or get a bad social media review for something that the team was supposed to do.  You are shooting yourself in the foot for sloppy management. 
  3. I know from personal experience when you are caught in the turnover trap, that it is so hard to execute on other priorities because staffing is always the fire that needs to be put out immediately.
    1. Be patient, power through, and execute on items 1 & 2 above as much as you can every shift, keep chipping away every chance you get.
    2. Also, remember that OpsAnalitica offers our platform as a managed service, so we are that extra employee who can set-up and get the software set-up in your restaurants with minimal effort on your part and keep it up to date ongoing. Not one of our competitors offers this level of service or partnership.

Let’s dive deeper into how we can increase productivity. We are going to focus on efficiency, accuracy, and we are also going to look into strategies to shorten and maximize training efforts.

Efficiency

Let’s first examine a typical employee shift in the restaurant industry, this can go for managers and employees.

  1. Set-up: getting ready for the meal period – Employees are a Cost
  2. Meal Period: selling food to guests – Employees are Generating Revenue 
  3. Restock/Closing: getting prepared for next shift or closing down operations for the day – Employees are a Cost

Everything we do is in support of maximizing our sales and profit generating opportunity during the meal period and minimizing our costs during the before and after periods. If you can make your employees more efficient so they can execute their set-up and closing tasks quicker while maintaining accuracy then you are increasing employee productivity.

The best way to increase employee efficiency is to use a shift readiness platform for every position on the shift, including managers. Don’t just post checklists on the wall, use a system like OpsAnalitica, where employees can walk around the restaurant with the tasks on their phone or a mobile device. This cuts down on time and errors.

Here is an example of station set-up checklist with a help file spelling out directly what the employee needs to get.

Ex: Instead of getting one thing, the iced tea bucket, an employee can go to the dish area and grab all of the things they need to set up the beverage station at one time because you can spell out in detail everything they need to get in one trip vs. having to walk back to the station to consult the checklist posted on the wall or try to remember everything they need. Unnecessary walking around is a waste of time you are paying for and leads to missed items which reduces your shift readiness and is inefficient.

I hope you understand that making people more efficient and productive isn’t going to be one big thing, like everything else in the industry, it is going to be the sum of a lot of little changes that are going to add up to big savings.

Atul Kwande wrote the Checklist Manifesto, an amazing book about checklists how they are used in different industries, here are a couple of quotes to illustrate these points:

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.
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.

An example of an all or none process is getting the restaurant set-up for the meal period.  It doesn’t matter that you got the entire iced tea station set-up but forgot to make the tea. As a customer, I’m still waiting for my tea. In today’s world, something as stupid as that can cost you a customer or get you a bad review on Yelp.  Every person literally has 10, 20, or 50 other options in their area where they can go to eat.  We have to be perfect because the competition is so fierce.

The ultimate goal is to get more done with less: less employees, less hours, less mistakes. In real terms, you are looking to bring in fewer set-up employees or reduce the time it takes to set-up/close the restaurant. Even a 15 minute labor reduction per shift will have a positive affect on your bottom line and increase your employee productivity.

Accuracy

Using a shift readiness platform will also increase accuracy. Accuracy is as important as efficiency when trying to increase employee productivity. It doesn’t help you if you cut labor cost if the restaurant isn’t set-up correctly and you are upsetting customers. Once again using a shift readiness platform increase accuracy because everything is spelled out and mobile.

You will never achieve accuracy and meet your employee productivity goals if you aren’t holding your team members individually accountable to following your shift readiness procedures.  If you aren’t using a shift readiness platform in your restaurants and you are still using paper systems, holding your team accountable is a nightmare and quite frankly your systems don’t get done. What are you going to do, have everyone fill out a paper checklist, take a picture, scan it in, or fax/email it to you every shift. What a nightmare and a huge waste of time? We surveyed restaurant operators who weren’t using a shift readiness system and 94% of them believed that their teams weren’t executing their checklists properly or were pencil whipping.

When I was in charge of the Franchise Assistance Program at Quiznos I saw the wrong team destroy sales volume in months that took the owners year to build. The restaurant team isn’t executing, the customers stop coming back, sales start to drop slowly at first but then quicker, all the employees jump ship and go across the street and you as the owner or manager are left trying to rebuild.

If you want to increase employee productivity you have to implement a system that will effortlessly allow you to hold your teams at all levels accountable for doing their jobs. You can’t do it on paper, you need a shift readiness application that will alert you when things are wrong or not getting done so you can quickly hold people accountable and keep moving your operations forward. With our platform we focus on management by exception, we focus on alerting you to issues and when you get no news that is good news because everyone did what they were supposed to do.

Right there, if you move to a system where your team uses mobile checklists to set-up and restock the restaurant. They will be able to accomplish these tasks faster and more accurately than the status quo of today. This will mean that you will be able to increase employee productivity, profits, and by being 100% ready for every shift you will organically grow sales.  Once again, we have seen this in the real world, check out our case study.

A New Training Focus

One of the largest employee costs is new hire training. The standard in the industry is a mix of book work (LMS/online training/training manuals) and practical following training, where the trainee follows the trainer, paying two employees to do the job of one.  It is incredibly costly and it is very focused on memorization and skill display. Any cost savings in that initial and ongoing training program can greatly affect employee productivity by reducing total employee labor costs and turnover by getting new employees productive quicker.

Right now in the industry, we are overtraining our teams. I know that sounds like heresy and let me be clear that I’m not advocating not to train people, but let’s look at the facts, we have had and will continue to have a 100% employee turnover rate in the industry. Every dollar of extra training that you engage in is one more dollar you have to earn back to get an ROI on an employee.

The goal should be to effectively train a new employee so they can execute their job to standard in as little time as possible. You don’t get extra points for overtraining someone who is going to leave; is there any amount of training you can do that will keep someone at your restaurant even though they can make more money across the street? 

The LMS companies will tell you all day long that job and culture training are the keys to everything employee related, and we have typically spent more on training than operations systems in the past because we could better control training than operations, OpsAnalitica has changed that paradigm.

  1. Training Musts
    1. Job role functions.
      1. Grill cooks need to know how to make hamburgers and servers need to know how to serve tables.
    2. How to be a human
      1. This covers customer service, sexual harassment, appropriate speech in the workplace, etc..
    3. Rely on Systems
      1. Train people to use the systems that are provided to them to be more productive. We don’t want people relying on their memory nor do we want to pay them to memorize.
  2. Area’s to cut Training Costs
    1. Culture
      1. I think it is important to impart history and values, but a culture has to be lived not preached.
      2. When it comes to culture hold your teams accountable for living the culture not wasting time training the culture.
    2. Repeatable Tasks
      1. This is where using a shift readiness app can greatly reduce training costs, don’t spend a dime teaching people how to do these repeatable shift readiness tasks other than how to use the app to complete the process. 
      2. Ex: Instead of paying two people to do closing sidework, hand the trainee the app that outlines specifically what to do and where to find everything and let them execute the list and complete the task. Then can ask questions when they aren’t sure.
      3. This will train the employee on how to use the app while actually completing the work.

By reducing initial training time, you lower labor cost, and total employee costs, and by using a shift readiness app to drive behavior you will drive productivity and consistent service. This is such low hanging fruit, any reduction will show up in your bottom line.

Next Steps

If I was your restaurant consultant and you tasked me with the goal of increasing employee productivity, this is how I would go about it:

  1. Focus on creating role-based shift readiness system for your restaurant.
  2. Implement a shift readiness app, OpsAnalitica, and get it implemented in my restaurants.
  3. Focus on achieving 100% shift readiness for every shift, in every location, each day. This will start to help you organically increase sales by wowing customers.
  4. Once I had my role based app working, I would turn my attention to streamlining my training program cutting out unnecessary training that is being covered by program.
  5. Evaluate how long it is taking my employees to set-up/restock/close the restaurant accurately with the new system and look for places where I could reduce hours or team members during those periods.

This methodology has you focusing on 100% readiness first, which will help increase your guest satisfaction, and lead to organic sales increases as guests get what they expect every visit and will make you a better restaurant.  It will also provide you with the system infrastructure to help you deal with employee turnover and get new employees productive faster and with less expense. Once you have achieved these goals, you can then start to look to optimize your labor spend reducing your costs. Basically, with this approach, you will be able to increase sales and reduce costs which is an employee productivity double whammy.

To sum this whole blog up, using a shift readiness app like Opsanalitica is one of the keys to increasing employee productivity. OpsAnalitica will:

  • Take the guesswork out of running the restaurant for your managers and teams
  • Make your employees more efficient and more accurate as they complete their job tasks
  • Reduce your initial new employee onboarding training time and costs
  • Provide you with the data you need to reduce labor costs without compromising your standards
  • Increase your guest satisfaction by ensuring that your restaurants ready for guest every shift.

To learn more about OpsAnalitica can help you achieve all of this, please click here to schedule a quick introduction call.

Creating and Executing a World Class Restaurant Audit Program

 

Restaurant Audits, OER’s, Quality Inspections are just some of the names that restaurant/hotel chains use to describe their location audit process. The names are different, but the intent is the same, get a fresh set of eyes on the location and measure how they are doing vs. the brand standards.

Remember the reason you conduct restaurant audits is that you need to protect your brand from yourself. Poor operations or unsafe restaurants can erode brand equity and lower sales for the entire chain. Food Safety is of paramount importance, and with our current social media-driven culture a foodborne illness outbreak can spread like bacteria over the web and can reduce sales by about 1/3 nationally and keep them there indefinitely.

For some chains, especially franchise systems, the conducting of the restaurant audit may be one of the few times a year a representative from the corporate office will visit the location so it can’t be overstated that you don’t want to waste that visit with an ineffective audit program.

When designing or updating your audit program, there are a couple of questions that you want to answer first.

  1. What technology are you going to use to conduct these audits?
  2. What are you looking to get out of your audits?
  3. How often are you going to be visiting the locations?
  4. Who is going to be conducting the audit?
  5. How comprehensive, how much stuff are we going to cover, in the audit?
  6. How long do you expect this audit and any subsequent coaching to take?
  7. How are you going to handle action plan items?
  8. Have you thought about Site Visits?

1. What technology are you going to use to conduct these audits?
You do not want to do your audits on paper, Google Docs or a combination of paper/Excel for scoring. Your audit is one of the most important interactions you have with the location, and you need to make sure you are capturing as much data as possible at the question level including photos and auditor comments and paper and excel are not made for this.

We have heard from some of our clients that have switched from paper to the OpsAnalitica Platform that we have cut their audit times by 75%, in most cases this results in several hours of busy work per audit. This reduction in needless paper pushing provides your auditor more time to interact with the restaurant teams coaching and training or if that isn’t their role it allows them to conduct more audits per day.

These are some features that you should be looking for when choosing auditing software.

  • Tablet/Phone/Laptop based software – you will use mobile devices to conduct the audit, but most people will want to use their computers to plan and manage themselves.
  • Geolocation – the ability to know that the auditor was on-site when conducting the audit.
  • Able to inspect offline – you won’t always have wifi at the location
  • Ability to take pictures
  • Ability to leave additional comments at the question level
  • Auditor Help Functionality – where an auditor can get more information about the standard at which a question is being judged or easily share the corporate standard with the location management team.
  • Flexible scoring
  • Tagging – question, and response tagging aids in deep dive analysis of the audit results.
  • Audit Report – this needs to be auto-generated by the system, printable is fine, but an online version is better as audit reports with photos and comments can be very long, and you want to make sure that people can enlarge the photos.
  • Action Plan Tasks that can be tracked and verified.
  • Auditor Functionality that allows them to plan their audits effectively
  • Reports that allow you to compare auditors to chain for auditor calibration
  • Gap and Question level reporting where you can look at the audit results across the organization to identify Operations issues that need to be addressed.
  • API – to pull app data out of the system and use in other BI tools.

To wrap of the technology portion of this blog, you want the technology you choose to be robust but also easy to use and bulletproof. When people are in the locations, they need to be able inspect and not be screwing around with their tech. Your field teams need a platform that will assist them in the planning, conducting, and follow-up stages of their audits. That provides them and the management teams their auditing with a seamless experience. From a corporate perspective, you want the software you choose to be flexible, easy to update, and you should be looking for a software partner that can work with you to refine your process over time.

2. What are you looking to get out of your audits?
We have found that a lot of people don’t have an answer to this question.

  • Are audits just an excuse for sending the field teams to the restaurants?
  • Are you looking to capture operations data so you can refine your internal procedures and run better restaurant operations chain-wide?
  • Are you just concerned with food safety or adherence to brand standards?
  • Are you auditing because that is what we do, but you don’t use the data unless an individual restaurant needs to be shut down for violations?

It’s ok, based off of your business model to subscribe to any of the above or something else. I would suggest that you get clear with your team about your stated audit goals. I am a firm believer that you should be auditing to collect data on your restaurants and to use that data to identify locations that put the brand at risk and to drive system-wide operational changes.

You should know what kind of results you want from the audits you are conducting because the answer should influence every other question.

3. How often are you going to be visiting the locations?
Audit frequency is a determining factor in a lot of different parts of your audit program. The fewer times a year you plan on visiting a location, the more comprehensive your audit should be. If you are going to be visiting more often, then you can have a shorter inspection, or you can vary certain sections of your audit so that you look at core critical issues every time and less important sections alternate between different visits.

Most restaurant chains that we have worked with audit between 1 and 4 times a year. Chipotle for instance is auditing 12 times a year, though we haven’t heard many restaurant companies conducting that many audits per year.

We have worked up a use case that can save a company a lot of money if they use daily checklists to augment their auditing program, they can conduct fewer audits per year on the top 20% of their restaurants without sacrificing brand protection or overwhelm their field teams. If you want to learn more about that, schedule a short call here.

Two other factors to keep in mind when determining how often you are going to be visiting.
1. How complicated are your operations? If you are a quick service chain with a minimal amount of on-site prep, examples would be a sandwich or ice cream chain; then you may determine that fewer audits are fine for your business because you have less risk based on the simplicity of your food prep and model.

Whereas if you are a full-service restaurant that is prepping most of your food on-site, you incur more food safety and quality risks, and therefore it may warrant more audits.

2. What is your geographic footprint? Are your restaurants in one city or are they spread out around the country? Are your auditors going to be traveling to audit the restaurants, incurring travel expenses for each restaurant they visit or do they live in their territory and can just drive to their locations to conduct the audit?

Travel expenses should be factored into determining auditing frequency. In some cases, it may make more sense to use 3rd party auditors when travel expenses dictate. This can also be affected by who is conducting the audit and what their role in the company is.

4. Who is going to be conducting the audit?

We have found that there are people in 3 different roles conducting audits in restaurants, they all have their pros and cons:

  • Field team member: usually an area manager or director.
  • Dedicated QA person: this person works for the brand, and their whole job is to conduct audits.
  • 3rd Party Auditor: like Steritech of EcoSure

Field team members are usually directly responsible for the restaurants they are auditing.  This is a very cost-effective model because the person is already on the team, they have intimate knowledge of the restaurants, and they are well versed in the operating standards of the chain, which allows them to audit and coach as they go.

The cons of using your field team to audit are that they aren’t impartial and there are inherent conflicts of interest in their scoring. For instance, a field team members performance is often tied to their patch of restaurants.  So by being completely honest and scoring restaurants appropriately, especially if the restaurant is underperforming, that score can reflect poorly on the field team members ability to manage their territory. In some cases, this could affect their take-home pay or bonus.

We know of many chains, Focus Brands and Quiznos for instance, where auditing is a small part of the field team members job.  A lot of their job is more sales related, selling franchisees on upgrades to systems, technology, remodels, etc..  Or just selling the franchisee on following the brand standards.  If your job is to sell and to audit, there is another conflict of interest where doing both parts of your job are at odds with each other, and most people will choose the path of least resistance.

Whenever you have conflicts of interest with your auditors, you can expect to get inaccurate audit scores, with the scores skewing up.  The problem with this is that you will have a false sense of security when it comes to the operational readiness and food safety aspects of your chain. You could believe everything is fine and then be blindsided by an issue.  Remember with data; garbage in is garbage out.

Dedicated QA people are a great way to combat the inherent conflicts of interest with using your field team people to conduct audits as QA people aren’t tied to the operating metrics of the restaurants they inspect.

The biggest cons to using QA people is that they often aren’t able to coach or train as well because they aren’t operators they are QA people.  There is also the inherent cost of having QA people on your payroll, having dedicated people who just inspect increases your audit costs in a lot of cases because you will still be sending your field teams to visit the restaurants.

3rd party inspectors are probably slightly less independent than QA people and more expensive per audit.  3rd party inspection services, like Steritech, field highly trained auditing teams that go around the country inspecting many different kinds of restaurants.  Because they have sophisticated equipment and training, they are very good at auditing.  Plus Steritech calibrates their auditors to brand standards and keeps them honest.

They can be very expensive, several hundred dollars per audit. You have to take cost into account when deciding to use a 3rd party vs. your own resources.  We have heard that Yum uses 3rd party auditors and pays for the initial quarterly inspection but if a unit fails the inspection, then the franchisee has to pay for a reinspection.

I’ve always been suspicious that 3rd party auditors could skew scores to ensure that their company keeps the contract. I don’t have any evidence of this and I’m sure the 3rd party auditing firms control this but there is an incentive to tell corporate what the want to hear so that they keep using the 3rd party firm.

5. How comprehensive, how much stuff are we going to cover, in the audit?

This goes back to everything we have discussed so far.  What are you going to do with the data, how often are you going to audit, and who is going to be conducting the audit?

You have to decide for yourself and your goals about how comprehensive your audit is going to be.  Here are some things that definitely should be in a comprehensive audit.

  • Food Safety – a must have for audits
    • This should include checking for all critical health violations.
      • Dishwashing – Dishmachine rinse and chemicals or 3 compartment sinks
      • Sanitizer Buckers
      • Handsinks
      • Proper food storage both dry and in the coolers
      • Labels on all food
      • Dumpster areas and rodent control
      • TEMPERATURES!!!!!!!
  • Restaurant Cleanliness and Maintenance – speaks to brand standards
    • General restaurant cleanliness
    • Wear and tear on building
      • Obvious signs of damage
      • Lack of upkeep
    • Bathrooms and dining areas
    • Kitchen cleanliness and organization
  • Food Taste
    • Pick random items, especially if they are prepared on-site and taste test.
    • Tasting food reduces comps when you catch your own mistakes.
  • Brand standards
    • Menu boards and POP
    • Guest service – observe transactions and rate the service provided
  • Administration
    • Proper employment records for all employees
    • Checklists and food safety documentation
      • Food safety documentation is one that often gets overlooked and not having this should cause a massive hit to audit score.
      • We have a pencil whipping problem in the US when it comes to food safety documentation, and it is unacceptable.
      • If you ever get someone sick at a restaurant, it is your documented adherence to food safety procedures that will give you the best chance of limiting your liability.  The FDA subpoenaed all of Chipotle’s logs a couple of years ago.  When you can’t supply that documentation, you are basically admitting to not following established best practices for food safety and therefore are more guilty.
      • You can effortlessly track and keep all your food safety records, track checklist compliance, and more if you use the OpsAnalitica Platform for daily checklists.
    • Required Employment Signage
    • Food Safety Certification Training

6. How long do you expect this audit and any subsequent coaching to take?

Audit time needs to be understood for planning reasons.  How many audits can you do a day? How many audits are you expected to do a month or a quarter?

We ran some numbers for a time savings business case a couple of years ago, and it is staggering how quickly audit time can add up.  As an example, if you can save 2 hours per audit and you do ten audits per month, that ends up being six weeks of time saved at the end of the year.

Understand for yourself how long these are expected to take so you can properly plan your audit program and make sure that your team can conduct their audits and do their other job functions if applicable.

7. How are you going to handle action plan items?

This is probably the most important part of auditing, and subsequently, one of the hardest things for auditors to do is to manage all of the action plan items that are created on audits. Action Plan items speak directly to the legal concepts of Due Diligence and Due Care.

In very lay terms, due diligence is doing your audit, self-policing your locations to make sure they are operating up to your brand and food safety standards.  Due care means having a plan in place to handle deficiencies and document that those issues are rectified.  The problem becomes when you audit your restaurants, identify issues, and then don’t take care of them.

We have all seen the news reports, the company knew this was an issue but didn’t do anything to fix it.  Knowing but not fixing greatly increases your liability but more importantly plays horribly in the media if it ever comes to that.

The basics for handling action plan items are:

  1. You have to identify action plan items.
  2. You should create one action plan task per item to ensure that all are handled.
  3. Assign the responsibility of rectifying the item to a person(s).
  4. Assign a due date for when the issue needs to be fixed.
  5. Verify, usually through pictures or re-inspection, that the item has been fixed.
  6. Document all of this in case the issue you identified caused someone harm.

Following up on action plan items is best accomplished by a task management program.  You can use email if you don’t have a task management program but email is very lax on enforcement, and you are more prone to miss action plan items.

We hear from our clients and prospective clients that completing action plan items is one of the hardest things they have to deal with because often time the auditor has moved on to their next audit and aren’t at the restaurant to supervise. Obviously, if you do several audits a week and you identify multiple issues per audit, it starts to add up very quickly.

I don’t know how other software platforms handle this but we have an explicit action plan task that can be created off an inspection report and links back to the item. You can track all of your action plan tasks in your inbox and you are notified as they are completed or if they are late.

It is great to have people fix their audit issues on the spot when possible.  Just like using tasks, you need a way to document the fix for reporting purposes. In our system, if you don’t want to create a task you can add additional photos and comments on the inspection report for documentation purposes.

Put together a system that allows you to easily assign and track that each deficiency that you identify is fixed in an appropriate time frame.  You open yourself up to a lot of liability if you can’t ensure that items are being fixed.

8. Have you thought about Site Visits?

There are three levels of operations inspections that chains should be doing to drive better operations.

  1. Audits: used to identify operating trends and restaurant performance
  2. Site Visits: quick critical only focused checklists that non-location employees complete every time they visit a restaurant.
  3. Daily Checklists: used to drive behavior and to document food safety procedures on a daily basis.

Site visits are seldom used and recorded by most major chains, I believe that their audit software doesn’t do a great job of facilitating multiple inspections, and this is a huge mistake.  Site visits are 10 to 15 question checklists that focus on the most critical operating standards from a FOH/BOH perspective.  They should be completed everytime a person from the restaurant chain, that doesn’t work at the location, visits the restaurant.

Site visits provide the following benefits:

  1. You collect more operations data:
    1. These are quick and take place at different times of the day so you can get interesting data about how well the restaurant is operating during the rush or right after.
  2. More flexible than audits:
    1. You don’t want to be changing your audits to constantly reflect current operational priorities because this dilutes their historic relevance. Instead, you can use site visits to gauge how well the restaurants are doing on current operational initiatives.

Using site visits in conjunction with your Audit program will help you understand how the restaurant is performing in between audits and provides very interesting operations data. It also allows you to identify and quickly address critical issues.

In conclusion, auditing is about protecting your brand from yourself. It is about ensuring that your restaurants are operating at or above standard. Audits are about teaching and coaching your team members, providing feedback, and holding people accountable.

Restaurant Audits are an integral part of managing multi-unit restaurant and hotel chains.  They provide us with a report card on how we are doing.  I highly encourage you to review your audit process using some of the standards I highlighted in this post. If you are looking for consulting assistance to review your audit program or restaurant audit software to conduct your audits on, please feel free to schedule a call with us at OpsAnalitica by clicking here.

We welcome the opportunity to discuss what you are currently doing, show you how our software could help you optimize your process, and to give you a quote.

 

 

 

The number one metric driving cloud software is…

It’s called Customer Success, and it’s going to be one of the major forces—perhaps the overall #1 driver—that will reshape the cloud-computing industry in 2018. Bob Evans

Bob Evans recently wrote a great article in Forbes about Customer Success and how it is one of the biggest drivers for cloud companies.  I highly recommend that your read the full article entitled: Why Salesforce.com, Workday And ServiceNow Are Obsessing Over This New Cloud Metric by clicking here.

Before I get into a high-level recap of the article, we at OpsAnalitica have known about the importance of customer success from day 1. That is why we offer the OpsAnalitica Managed Service and we are the only restaurant checklist and audit platform who does this.

Meaning we’ll administrate the platform for you and we do that for the same price our competitors charge to leave you swinging in the wind. You cannot find a partner that is more committed to your success than us because we’ll manage the software for you, if you want.

Article Recap

Bob quickly covers the history of enterprise software.

  1. In the past: 5 years ago, a software company sold you some software. You paid for it and it was your responsibility to get it to work in your environment which is where 90% of software problems occurred.
  2. Cloud computing: now you pay for a subscription to software, the software company does everything you used to do for you, like installing, hosting, managing, uptime etc. That is why everyone wants you to pay for the software every month because they are incurring costs on your behalf monthly.  Gone are the days that you bought software once and never paid for it again.
  3. Just having software in the cloud that is working all the time isn’t enough. Cloud companies have to focus on delivering the ROI that they promised when they sold you and that is Customer Success.

A customer success focus is a natural evolution of cloud computing.  Cloud computing solved getting the software to work and now we are turning our attention to getting you a return on your investment which should have been everyone’s focus from day 1.

The article goes on to interview several CEO’s and speaks with them about their takes on customer success.

I’m going to wrap up with this.  Your software vendors are your partners.  You are entrusting them with your information and they are promising you a return on your investment that will make your business better.  Hold your vendors accountable, choose your vendors wisely, and remember that we work for you.

I know that a lot of people miss the good old days when you could buy some software and you only paid for it once.  I think a lot of those people don’t remember how hard it was to get the software up and running and to keep it working.  I’m going to leave you with one thought last thought; I remember that the salespeople for a large sales company used to say, “don’t confuse sales with implementation” meaning your job is to sell at all costs and if what you sell is impossible to implement that is someone else’s problem, usually the customers.

Cloud computing is here to stay so are monthly software fees, it is truly a better way to go, and with the right vendors, it can make all the difference.