In this blog post, we recorded an audio podcast, of our shift readiness blog. This discusses shift readiness as tasks but also as a philosophy. To read the original blog, click here.
In this blog post, we recorded an audio podcast, of our shift readiness blog. This discusses shift readiness as tasks but also as a philosophy. To read the original blog, click here.
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:
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?
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:
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.
We are going to do a deep dive into the concept of restaurant shift readiness. Shift readiness is making sure that your restaurant is 100% ready for each meal period from a: cleanliness, stock (FOH/BOH), food taste, freshness, and safety perspective so that you can make the most of your sales opportunity each shift in every location.
Shift readiness is one of the most expensive labor periods for every restaurant and shift readiness activities are undertaken by every restaurant in the country. Getting it right is super important from a sales and profitability perspective.
We are going to go deeper and define shift readiness as the restaurant management philosophy that it is, break it down tactically, and explain how you can achieve it.
One of our clients, Darrin White, said this the other day around Shift Readiness:
We want to be habitually brilliant at the basics. If we do…. we will blow the competition out of the water.
The hospitality product by definition is a perishable product. There is only one January 10th, 2018 lunch ever in any single location, in the entire history of the world there will never be another. Every day our meal periods expire, like brown lettuce, to never generate us another penny of revenue.
If you only get 1 shot at every meal period, you have to maximize your guest satisfaction, sales, and profits each shift. This is a different way of thinking, good enough just won’t cut it when you only have 1 chance to get it done. Perishability adds a level of urgency to your thinking.
Here is some quick math to illustrate how important every meal period is to your restaurant’s success.
You only have 6 meals periods a month to turn a profit. No do-overs and no second chances!
This equation assumes that all meal periods are equal, which they probably aren’t, but that is ok. The point is, that only a few meal periods a month are going to generate all of your profits for that period. 50 of the lunch and dinners are just going to pay for your costs.
Most importantly – you don’t know which 6 meal periods are going to be the profit generators. Nor are you guaranteed 6 profit generating meal periods, as a matter of fact, you only get the 6 profit generating meal periods if you crush the other 50.
If this doesn’t create some urgency to focus all of your efforts on maximizing each shift opportunity, you are in the wrong business.
You must use this urgency, this perishability, as a motivational battle cry to your managers and your teams. Have we done enough, are we perfect, are we 100% ready? Because if we aren’t then we are going to squander this opportunity and then it’s gone forever.
Every meal period where you fail, where speed of service suffers, where your guest satisfaction is low, where the restaurant isn’t running great, can actually put you in a hole that you then have to dig out of.
Operations are the running of the business, the selling and delivering of food to our customers, they are how we generate sales and profits.
How you operate, the decisions that you and your team are making every day affects your sales, costs, and profits. A lot of the time your team is making decisions that affect your profits and you don’t even know they are making them.
This is the no-accountability trap that so many have all fallen into. We train our teams on how to do their jobs, we have checklists and procedures posted on the wall or on a clipboard in the office, but nobody is using them.
94% of restaurant managers we surveyed said that their teams weren’t following their procedures.
If you aren’t holding your team accountable for following your shift readiness procedures every single shift, then you are allowing your team to decide how to run your business and how much money you should make. Not to rub it in, but your team that isn’t compensated by restaurant profitability, that will go across the street if your business slows down, the same team that has a 73% chance of turning over in the near future is in control of your livelihood when you don’t hold them accountable to working your way.
The profitability equation breaks down like this:
Sales – Costs (labor, food, & fixed) = profits
For this analysis, we can ignore fixed costs because a lot of that is out of the restaurant manager’s control. We are also not going to spend a ton of time diving into controlling food and labor costs as those concepts are pretty well known. We are going to focus most of our conversation on how operations affect sales.
When we talk about labor costs in regards to shift readiness we really want to focus on making sure that the employees that you are paying for are working as efficiently and accurately as possible to achieve your shift readiness goals.
Because of the high turnover in the industry, we also want to focus on minimizing initial onboarding and training time by really focus on must know skills vs. nice to have info and to improve training productivity to get employees generating revenue faster. Check out our blog on increasing productivity here.
When we look at food cost specifically in regards to shift readiness we want to make sure we are practicing FIFO, proper portion control (make sure people are using the right size scoops and spoons and not just grabbing any utensils), and that we are stocking stations to PAR to keep ticket times low.
The single most important thing you can do before each meal period is to taste the food before you serve it to guests to ensure that it is delicious and safe, this will reduce comps and lower food costs.
So much of the shift readiness discussion we are going to be having is how proper shift readiness can positively affect your ability to generate sales and how poor shift readiness can hurt sales.
A restaurant is a lot like a factory, we have meal periods where we are producing goods and selling them. One of the biggest factors for success is that we maximize customer throughput, or speed of service, during the meal period.
Another way to phrase that is we want to serve as many people as we can every meal period and anything that slows down our ability to take their orders, deliver their food, and get them out of the restaurant to make room for the next guest is costing us sales and profits.
Let’s look at a couple of common examples and how poor shift readiness affects sales and customer satisfaction.
These are the types of scenarios that you run into all the time in good enough restaurants but rarely see in great restaurants. None of them are horrible, no one got a finger in their chili, but they erode customer satisfaction and lower sales and profits, it’s death by 1000 cuts.
Are these kinds of scenarios playing out in your restaurants?
The good news is that any restaurant can be 100% shift ready, the key is to hold your teams, at all levels, accountable to work your systems. This was very hard to do in the past but technology has jumped forward, and it is now possible to provide everyone all the data they need to do their jobs, effectively manage and coach right from their phone.
The systems you have already created, the checklists, the procedures, the training will all work and deliver the intended readiness if you can hold people accountable in real-time to using them.
There isn’t a magic bullet to being successful, it is a relentless focus on the basics, of controlling what you can control such as coaching, and inspecting what you expect that is going to deliver the results that you want.
It all comes down to this. Every meal period is a new opportunity to take exceptional care of guests, generate sales and profits. The only way you can maximize this opportunity is to be 100% ready to go before customers come into the building.
Making sure that the restaurant is clean and inviting, that you are fully stocked at every station both FOH/BOH so that when you are in the rush you never have to slow down service. Most importantly, that your food is tasty, safe, fresh, and prepared to the recipe.
If you do all these things every shift in every location and your people are friendly and happy to be there. Then your customers are going to get exactly what they expected to get and turn into repeat customers.
The best marketing you can do is deliver on your brand promise in every interaction with your customers.
That is how you organically grow your guest satisfaction, sales and profits. Scroll up and read our case study and be blown away at how much running better operations and being shift ready can do for your business.
Shift readiness is a restaurant management philosophy that understands that every meal period is perishable and that you have to treat it with urgency and respect if you want to be successful, that you/your employee’s operations decisions affect customer’s satisfaction, sales, and profits.
It knows that the only way you can be a profitable restaurant is to maximize every meal period opportunity. It holds ownership responsible to implement the tools that will hold your team accountable for following your systems consistently across all your locations on a shift-by-shift basis.
Every day, in every restaurant, you and your team make a conscious decision to do get 100% shift ready for that meal period and maximize your opportunity or not.
Great restaurants are systematized operations and focus on readiness and service every shift, and good enough restaurants don’t.
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.
Does any of this sound familiar? Here are some quick thoughts:
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.
Let’s first examine a typical employee shift in the restaurant industry, this can go for managers and employees.
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.
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.
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.
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:
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:
To learn more about OpsAnalitica can help you achieve all of this, please click here to schedule a quick introduction call.
Scheduling doesn’t have to suck. I know that the government is trying to make it as horrible as possible when it comes to labor laws. Listen to this interview with Michael Pullman with Zuus Dynamic Scheduling to learn more about scheduling software and how it can help you navigate the new labor laws and save you a ton of money.
The traditional field structure in multi-unit restaurant organizations starts at the restaurant level and goes to an Area Mgr or Director, eventually rolling up to a VP of Ops and COO. For bigger organizations, there is obviously going to be more layers of management between the store and top people.
The person with the hardest job in the management structure is the Area Manager. They have the most direct responsibility; when I worked at Quiznos, our Field Business Leaders had around 50 restaurants each. They were directly responsible for these locations with very little actual control.
Even on a great day as an area manager, you may only be able to visit a couple of restaurants for an hour or two. Forget it; if your patch is spread out over a large geographic area, you might not visit some of your restaurants more than one time per quarter.
The area managers role has also expanded over time. Area managers were originally there to provide operations supervision. Assist the store level managers to execute better, conduct some training, make sure that the restaurants were following the corporate standards.
In a lot of chains, area managers are expected to handle the ops roles from above and to be franchise salespeople, auditors, tech experts, new store openers, etc..
The Area Manager’s role and patch size have continued to expand over time, and it is becoming harder and harder for them to make a difference at the restaurant level.
I could write a whole other blog on area managers being used as franchisor salespeople and auditors. Those two roles are in direct contrast to each other, and the incentives are misaligned.
One last point on area managers, they are expensive. The median salary, bonus, and benefit cost of an area manager in Denver, CO is $146K. Now if they have to travel for work or they get a car, you can add another 25 to 50K to that number.
What is one way we can help area managers be more effective?
We need to give them the management tools that allow them effectively manage their territory.
Area managers need systems that give them real-time visibility into their store’s operations and financials. The POS systems can provide you with the daily sales numbers from each of your locations.
The issue has always been in getting real-time restaurant operations data that would allow an area manager to see what is happening in all of their restaurants; this has always been a problem in the past because daily operations checklists and audits are manual and in most restaurants still on paper.
That is where the OpsAnalitica Platform comes into save the day. When our platform is deployed in all of your restaurants, your area managers will have real-time visibility into what is happening operationally at all of their locations. They will know when things aren’t getting done, they will be alerted to critical violations and will be able to hold their managers accountable right from their mobile device.
This is a game changer in multi-unit restaurant management because for the first time an area manager can see what is happening at every location right now. They can effectively follow-up with restaurants from anywhere. They can identify and help restaurants mitigate problems before they become forest fires.
Real-time field management is a completely new way to manage restaurants, it becomes a force multiplier for your field team, and it saves you money. As a matter of fact, it pays for itself in increased restaurant sales and the subsequent franchisee fees from those sales, check out our case study to see how much money using OpsAnalitica can generate in your restaurants for the franchisor and the restaurant operator.
Let me give you a real-world example to illustrate this fact. When we launched Torpedo Sandwiches at Quiznos, we inspected every location in our chain. For two weeks every field person and about ten corporate employees traveled the country and physically visited and audited every restaurant, over 4000 in total. What do you think that cost us?
The big things we were looking for:
– the restaurants were displaying all of the marketing materials
– the restaurant knew how to make the sandwiches
– the restaurants were ready for the promotion
With OpsAnalitica you can deploy a checklist that requires the end user to take photos of their menu boards, photos of the different sandwiches, you can gather readiness data on all of your restaurants. Remotely. You can see which restaurants have done this and haven’t done it before the promotion and then follow-up appropriately.
Another client of ours runs over 50 short checklists a day and restaurant readiness has gone through the roof. Their field teams know when each restaurant is doing what they are supposed to through the day and are alerted when a restaurant is falling behind. A quick text message to the store is all that is needed to get the restaurant back on track. If critical violations are discovered the field team member can investigate right from their phone and determine the best cause of action to take.
If you couple the OpsAnalitica Platform with a centrally managed checklist program, where corporate provides the mandated checklists and is consistently refining those checklists to address business goals, it becomes a potent operations combination. One of the features that make OpsAnalitica unique is that corporate can create core checklists but still allow restaurants and franchisees to build their own for their locations. Check on this blog on the OpsAnalitica way.
For area managers to be effective, they need the tools to manage their ever-expanding job responsibilities. OpsAnalitica can provide area managers with real-time ops visibility into their locations allowing them to more effectively manage restaurant operations in their territories.
Corporate can keep a finger on the pulse of their operations, creating a feedback loop and constant improvement cycle.
The program pays for itself from restaurants running better operations and will lead to better operations chain wide.
There is one last key to success to make this kind of force multiplier program work. You need complete system adoption. You can’t leave it up to restaurant managers/franchisees to decide for themselves.
If you don’t mandate the solution then you will be managing two systems, and it will not be sustainable nor will you reap any benefits. When everyone is on the platform that is when you get the economies of scale.
To learn more about the OpsAnalitica platform check out OpsAnalitica.com or check out our case study.
OpsAnalitica is a restaurant Ops Excellence platform that makes it easier to manage multi-unit restaurant organizations. With the OpsAnalitica platform you are able to script out the perfect shift from a guest readiness, food quality and safety perspective. Most importantly, you are able to hold your teams accountable to executing your plan.
We know that when restaurant teams focus on the basics of: cleanliness, readiness, food taste, and food safety, they run better restaurants. Customers get what they expect and are more satisfied, which equals increased sales and profits.
What does OpsAnalitica do that is different than what we are already doing?
Accountability; shift level accountability has always been missing from multi-unit restaurant organizations because there was no easy way to be everywhere at once. In the past we were forced to create tons of training and spend countless hours and dollars getting that training into the locations only to have it be ignored when the restaurant teams weren’t being directly observered.
We solve this age old problem by giving upper management real-time visibility into operations and a way to hold their teams accountable after the fact. This control allows management to oversee their restaurants while simultaneously being able to focus on growing their business. This is truly revolutionary because in the past you couldn’t do both.
Running great multi-unit restaurant operations is all about upper management focus. Where your focus is directed is what is going to get done. If you are focused and setting all of your expectations on running great operations, then that is what is going to happen. If you are focused on adding new restaurants, then that is what is going to happen.
With OpsAnalitica we become your consistent daily focus on running great operations, and we allow you to manage that in real-time remotely so you can also focus on growing your business.
This blog is going to explain our entire multi-unit restaurant management system and how it works. It assumes that you are going to use OpsAnalitica or another daily checklist software to accomplish your goals because attempting to do this without the visibility and accountability that software can provide is impossible.
Here is how the OpsAnalitica Way works.
What we have created is a feedback loop that uses real-world data to help Operations teams to run better operations across multiple locations. When you do this right, you are building a culture of excellence, and you will be able to slowly and methodically raise and maintain your operations levels across all of your units by slowly cranking down on your own issues and addressing them promptly.
This is how using OpsAnalitica will help you run safer, more profitable, and better restaurants fulfilling your brand promise to your customers and helping you exceed your business goals.
If you want to learn more about the OpsAnalitica platform, click here to learn more about our free trial.
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?
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.
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.
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, you can learn more 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 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.
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:
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.
8. Have you thought about Site Visits?
There are three levels of operations inspections that chains should be doing to drive better operations.
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:
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.
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.
Bob quickly covers the history of enterprise software.
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.
We recently asked our email list of over 9,000 recipients “what was their biggest restaurant operations issue?” The unequivocal 1st place answer was:
Finding, Hiring, and Keeping employees.
Which sucks for me because I don’t have a magic solution to this issue, especially one that I can make money on.
To be a service to you guys, I went and found some articles about hiring and retaining for you and I will link to them below.
When I was a restaurant manager, here is what I used to do to hire and keep employees. By the way, finding good employees is easy if you can keep good employees because you will get referrals and friends of your current team.
Here are a couple of articles about the restaurant industry’s turnover and hiring issues:
I know it’s hard out there in this market. Implementing changes is always a slow process, and it requires discipline and consistency. It is possible to thrive in this market as well. Focus on the basics, your daily operations on a shift by shift basis. Focus on controlling what you can control, which is everything in your four walls and ignore the outside distractions. Take care of your people, and your customers and your business will grow.
If you want to learn how OpsAnalitica can help you run better operations on a shift-by-shift basis, go to OpsAnalitica.com