Author : Tommy Yionoulis

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OpsAnalitica’s Managed Service Offering

There are two things that I know to be absolutely true:

  1. If you use the OpsAnalitica Inspector to automate your checklists – YOUR RESTAURANTS WILL BE SAFER!
  2. Restaurant managers don’t have time to take on additional projects no matter how important they are.

That is why we have created our Managed Service License, the first in the industry.

When the restaurant tech industry is going in the direction of do-it-yourself – we are going in the direction of restaurants by providing you with more personal service.

You will get all the benefits of having safer, better, and more profitable restaurants without having to find an internal resource to learn how to run and administrate the platform. For as low as $10/month/location you can offload this work to us.

With a Managed Service License, we’ll take care of everything related to the set-up, daily administration, and report building for your organization.

The only technical thing you will need to know how to do is tell us what you want.  It is that simple.

You and your organization will be able to focus on conducting inspections, checklists and reviewing reports.

There is no other easier way to run safer restaurants and get better visibility into daily operations than the OpsAnalitica Inspector Managed Service.

The craziest thing is that our managed service license is only $10 a month more than our Inspector + license.  That is nothing.  We are going to be the cheapest employee you have that doesn’t go on vacation or require any benefits.

Click here to watch a video message from Tommy Yionoulis, one of the founders of OpsAnalitica, to learn about our new managed service offering.

NO MORE EXCUSES, YOU CANNOT AFFORD TO WAIT ANOTHER DAY WHEN IT COMES TO ENSURING RESTAURANT SAFETY.

A restaurant safety issue could wreck everything that you are working so hard to build . Could your system survive a 30% drop in sales?  My guess is not many of us could.
We didn’t want to just talk about our amazing new  Managed Service offering,  Click here to get our white paper:  4 Daily Must Do Steps to Running Safer Restaurants.

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

E-coli, Norovirus, Food Safety, and Checklist Resources

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Part of our responsibility is to provide you with content and tools to help you run your business. This blog post will contain links to other resources that we have found on E-coli, Norovirus, and General Food Safety issues.  If you know of some other great tools, please add them in the comments and we’ll update our list.

As you look at these different resources you might be asking yourself how can checklists and checklist platforms like OpsAnalitica help me run safer restaurants?

Operations checklists play a huge part in running safer restaurants because they focus managers on what is important on a shift by shift basis.  Whether your checklist is having a manager check temperatures or sanitizer concentrations.  Or they are using checklists for sanitizing or cross contamination prevention.  Manager’s who use checklists diligently run better operations than those who don’t.  The checklist keeps them focused and reminds them of all the steps that they need to complete a task and to run safer operations.

Situational Checklists can also guide managers on how to properly address situations that might not happen very often.  Checklists on how to manage a foodborne illness outbreak at their restaurant, or a cleaning checklist that they use if they send an employee home who is sick.  These kinds of checklists ensure that every “i” is dotted and “t” is crossed in an efficient manner.

A platform like OpsAnalitica takes checklists to the next level because we provide visibility and accountability at all levels of the organization.  We can see if a manager is following the checklists or pencil whipping them.  We can provide visibility from the CEO down to the manager of a unit.  Plus our system is self-documenting and organizing.  When you complete a checklist on our system it is filed and stored in the cloud accessible from any connected device.  No more scrambling to find all of your old temp logs or wasting time filing and organizing, they are just there when you need them.

Here are some resources I found that I thought were good and not too long.

Resources:

One common denominator in food service safety from HACCP to SQF, to the CIFOR response plan is checklists and documentation.  Checklists are not a nice to have they are a must have in running safe restaurants.  Check out the OpsAnalitica Inspector and see how we can help you run better, safer, and more profitable restaurants.

 

Restaurant Checklists are like Condoms

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Flavorless Pizza

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

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

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

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

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

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

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

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

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

Hope you have a safe and profitable New Years Eve!

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

7 Tips for Faster Better Line Checks

Chef Tasting Food

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

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

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

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

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

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

Here is an additional guide that you might find useful:

  1. Calibrate your thermometer

Chipotle’s Woes Could Happen to Any of Us

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

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

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

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

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

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

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

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

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

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

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

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

Why Getting Rid of Tipping in Full Service Restaurants is Stupid

Chef Instructing Trainee In Restaurant Kitchen

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

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

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

Screenshot 2015-08-09 08.41.41

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

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

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

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

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

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

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

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

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

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

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

Total tips for night $200:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Enjoy these excerpt from Office Space the Movie

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

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

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

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

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

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

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

Due Diligence and Due Care for Restaurant Managers

 

I believe that the hospitality industry should adopt Due Diligence and Due Care as management concepts that we fully embrace and implement into our business processes.  Due Diligence and Due Care are words associated with investing, and contracts. In my last position working in cyber security, those terms were defined as:

  • Due Diligence: Identifying threats and risks.
  • Due Care: Acting upon identified threats to mitigate risks.
In the context of restaurant management, I look at Due Diligence as doing what it takes to serve safe food in a safe environment.  I didn’t say delicious food I said safe food.  Meaning that we use HACCP principles to ensure that the food products that we are serving have been manufactured, delivered, stored, and prepared safely.
Most restaurants today are, or should be, conducting daily inspections of their facilities paying attention for critical food safety violations.  Making sure food is stored safely, chemicals are stored away from food, temperature discipline is maintained both in cooling and heating.  We aren’t introducing foreign contaminants into the food preparation areas and that all of our employees are healthy and trained in proper hygene are just some of the areas that we should be inspecting every shift.  At OpsAnalitica we are learning that daily restaurant audit checklists are a key to keeping consumers safe.
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As we have seen recently with the Chipotle e-coli outbreak they don’t even know which item(s) caused the outbreak at several of their restaurants earlier this month.  This is speculation on my part, but since the e-coli outbreak happened at several locations it would make sense that it wasn’t one person that got everyone sick but that a food item that was shipped to multiple restaurants was responsible.  It will be interesting to learn what caused this outbreak.
Using a restaurant checklist app to conduct daily checklists and managers following up on all violations is the best and cheapest way to perform our Due Diligence in providing safe food for our customers.  Due Diligence is only half of the battle, Due Care is the other half.
Due Care procedures are the processes that you have in place for when you identify an issue.  The key to Due Care is consistent and documented remediation of issues.
You may be familiar with the phrase “It’s not the crime, it’s the cover-up” that gets you into trouble.  That is especially true when you are doing your Due Diligence, conducting a pre-shift inspection, and you identify an issue but then you don’t correct the issue safely.
An example:  a restaurant supervisor completes a temperature log for a walk-in refrigerator, and records a 65-degree temperature.  The person completing the temperature log isn’t aware that this temperature is in the danger zone, doesn’t do anything to fix the issue, they just serve the food and they get a lot of people sick.
We as a nation are very intolerant of companies that had enough forethought to identify a critical area on an checklist but then not have a plan to fix the issue when the dangerous conditions are identified.  We find that unacceptable, and for good reason, you wouldn’t want to fly in a plane where the pilot knew a wing was missing but decided to take-off.
In the above example, we would hold the company responsible for not having the systems in place to notify management that their was an issue and not training their supervisor well enough to know that a 65-degree walk-in is dangerous.  Using a restaurant checklist app that could automatically email an exception report of temperature violations to the appropriate managers would be a great first step in providing due care.  Correcting the issue and documenting what actions were taken would close the loop on this issue and fulfill HACCP Rule #7 for documentation.
Look at your real-world experience, we understand when people make mistakes or accidents happen.  We get furious and litigious when mistakes are made and the people responsible are clueless when they should have known better.  We get even with businesses that profit while their customers get hurt.
As hospitality professionals, we have to make sure that our organizations, size doesn’t matter, have well documented Due Diligence and Due care processes in place.  More importantly we have to train, consistently follow, and document those processes in their application.  It is when we consistently apply our processes that we have a chance of protecting our brand and our businesses when we make a mistake.
If you would like to learn more about how conducting daily checklists can help you run more profitable restaurants, I invite you to download our free white paper here.

6 Types of Food Comps and How You Can Reduce Food Costs

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I was recently talking to one of our clients about the OpsAnalitica Inspector, and he was telling me how it helps their company reduce Food Costs.

See if this sounds familiar, their managers have always been required to do pre-shift line checks. Even before they had implemented OpsAnalitica they did their line checks like most people do, on a clipboard with pen and paper.

With OpsAnalitica, each manager knows that their Area Manager can look at a report and see when and if they completed their line check each shift. Our client said that he first looks for restaurants that aren’t completing their line checks and then he looks for the inevitable increase in food cost that follows. No line check = increased comps. That is one of the ways he determines which restaurants he will be concentrating on.

When you don’t do line checks, you are letting your customer find your mistakes instead of catching them yourself.

In the spirit of this story, I have identified six different types of food comps and what you can do to stop or reduce them.

1. Crazy or dishonest customer
I mention this one first because I believe that the perception in the industry is that crazy customers are the number one reason for food comps but if you tracked your comps by reason my guess is that crazy customers would account for a small amount of total comps.

There are people who don’t read menu descriptions or don’t ask questions. They order food that they hated in the past but want to give another try or they can’t eat because of allergies.  These customers don’t want to pay for it if they aren’t going to eat it.

Let’s take it one step further, there are crooks out there, they are a small percentage of people who eat at your restaurant, but they do exist.  They order food with every intention of eating some of it and then lying about it to get the dish removed from their bill.

I went through some advanced customer service training when I worked for The Grove in Los Angeles; the training was based on the Ritz-Carlton method. The Groves owner’s standpoint was this, that yes there are people who are going to lie and think they pulled a fast one on you. Those liars are such a small percentage of your customers that it isn’t worth confronting them or allowing your staff to provide less service to them because they believe that the person is lying.  The cost to your business or your reputation, if you are wrong, is so much higher than one comped dish.  If you allow you or your team to make those judgment calls, and you get it wrong with a genuine person, they may never come back. You just have to suck it up as a cost of doing business.

As a manager, I always had a hard time with this because I didn’t like the feeling I had in my stomach when I could tell that one of these liars thought they were so cool and got away with something. It bothered me, but I grinned and beared it because our owner was right, and when I was able to fix a situation for a customer of ours that we genuinely made a mistake on, I was thankful for the power that I had to rectify the situation and deliver on our service promise.

Now with Yelp and Social media I think this is even more important today to treat every customer like gold because these reviews can live online forever.

You can’t do anything about this type of food comp other than training your servers well around the menu and paying attention to items that are getting returned more than others.  If you identify certain items that are returned more often, get them off your menu or ensure that servers are fully explaining the items to guests as they order. Ex “Just so you know this isn’t your traditional calamari that is deep fried and breaded, this is a stewed calamari that is in a bowl of sauce.”  Try to head the comp off a the pass with over communication.

2. Server Screw-up
Servers make mistakes. There are any number of reasons for these mistakes: didn’t hear the customer correctly, didn’t ask clarifying questions, didn’t understand the menu item or how the dish is prepared, was overwhelmed at the moment, was hung over or tired.

I was pretty consistently hungover or overly tired in my twenties. When I came into work hungover, I made mistakes, and the restaurant comped some food.

Server orders the food incorrectly and the guest returns it.  You solve this by tracking comps by server. You coach and train servers that have more comps and if you can’t fix them then they may not be the right fit for your restaurant. You do pre-shift meetings and evaluate your team before the shift and make adjustments when you have to. Send servers home that are hung over or look like they slept in their uniforms, make an example of people and hold everyone to the level of professionalism that you expect. Spend more time training servers before they hit the floor in their sections, it’s more than just menu knowledge its table management.

3. Kitchen makes order incorrectly
This type of comp is very similar to number 2 Server Screw-up, it’s just on the other side of the house. The kitchen makes an order incorrectly, and the guest returns the item. Kitchen mistakes happen more often when there are modifications to the dish, and they don’t make it correctly. The solution is the same, train your staff to ask more questions. A cook should never complete a dish unless they fully understand what they are doing. Servers should be trained when there are a lot of modifications to an order to go back to the kitchen and explain the mods to the cooks or check with the cooks if they are doable before ordering.  If you have cooks that don’t know how to make the menu items, then you have to train and coach them and if they don’t improve this probably isn’t the right restaurant for them.

4. Kitchen makes recipe mistake
This type of comp is different from making an order wrong this is where they made an ingredient, a sauce for example, incorrectly and it tastes horrible. Kitchen prepares food with horrible tasting ingredient and guest send food back.

Kitchen recipe mistakes are one of the easiest issues to catch if you do line checks. A manager should taste every sauce, every soup, all side dishes each meal to ensure that they taste the way they are supposed to. Then you can catch your mistakes before your customer catches them for you. Recipe mistakes are 100% avoidable when doing line checks. In our experience, a restaurant that makes more of their food from scratch on a daily basis will see a greater reduction in food cost from performing line checks.

5. Kitchen takes too long to make food
Food taking too long to get to the table is a double a whammy because it is probably affecting more than one table and can generate a lot of comps when nothing was wrong with the food. There are several reasons this can happen:

  • The kitchen is just slammed because everyone sat at once.
  • The kitchen is slammed because they weren’t stocked to par and not all of their food is thawed and ready – slowing down cook times. This once again should be caught and addressed during the line check.
  • The kitchen or the service staff are making mistakes and there a lot of refires that are jumping in line and overwhelming the kitchen staff.

If this is a consistent issue, then you have to take the proper management actions and get the right people on your team.

6. Food runners make mistakes

Food runners sometimes drop off food at the wrong table. I think the rule is that if they leave the food on the table and walk away or the guest touches the food then they can’t give it to the correct guest, and now we have a comp. This is a training and communication issue. They should be trained not to leave a table where there is any question that the food isn’t correct. If they keep the dish on their tray or off the table, they can figure out what is happening and avoid the comp.

Take Aways

After looking at these different types of food comps, you can boil them down to a couple of core issues.

  • Managers that have not confirmed they are ready for service – line checks and pre-shifts.
  • Bad communication – training and hiring decisions.

1. Using line checks and pre-shifts to confirm that you are safe and ready for service are a no-brainer is the low-hanging fruit in these scenarios because you are 100% in complete control of doing this. Whether you are the manager of 1 location or 100’s of locations you can benefit from implementing a pre-shift/line check protocol in your restaurants. The key to making your line check protocol a success is following-up with your managers on a daily basis to make sure they are doing these pre-shifts correctly. If you implement pre-shifts with follow-up you could see your comps and food waste go down; we’ve seen as much as 1/2 to 2% with some of our clients.

2. Bad communication stems from hiring and training issues and are much harder to address because each person is different and each shift that they work is unique. When you are training your team, make sure they understand the why behind what you are asking them to do. Make sure you train them on using clarifying questions and always to get more information before ringing up an item or making an item.

3. Show the team what comps cost the restaurant. I think that it’s beneficial to do training around food cost and how it affects the business. I’ve seen this attitude where employees compare what they would buy a steak for in the grocery store and how much the restaurant sells it for. They believe that the restaurant is swimming in profits, anyone who has ever managed a restaurant knows the truth.

Hold a training session where you show your BOH and FOH teams the cost of each part of a menu item. Factor in labor and everything else that goes into serving this plate to a guest, go crazy here and really dig deep into your costs. A good way to do that is to divide the average meals served in a month into all of your fixed costs (insurance, rent, loans, etc.) and do the same with your non-food variable costs (profit % of rent, power, etc.).  Calculate the true all inclusive plate cost and watch your teams reactions when they understand that there is really only a small percentage of profit on every dish. Explain to them that when we make a mistake or have to comp a dish how that adds up. By explaining the numbers to your team and how comps affect those numbers, you will hopefully see some change in behavior.

If you don’t do this already, I recommend that you track the causes of your food comps in your register system or on paper. It could be as simple as:

  • Server Error
  • Kitchen Error
  • Food Runner Error
  • Customer Didn’t Like.

Review those numbers after a period and look for patterns.  This exercise should tell you where you can focus some attention to your business.

Comps are a fact of life because we are in a people business. I’m a big believer in Control what you can Control and manage to the rest. So many of the comps that we highlighted were because of a lack of communication between the customer and the server, the server and the kitchen team, the kitchen team and the server, or the kitchen team and the food runners. Those people comps we have to manage to as best we can and make the hard decisions when we have to.

Doing line checks and pre-shifts is part of the control what you can control philosophy.  Restaurant managers should be doing line checks every shift and following up with their teams to ensure they are getting done accurately. If you do this, you will be able to reduce comps and food waste.

If you would like to learn more about how OpsAnalitica can help you with line check compliance and reducing your food comps, click here  to watch our OpsAnalitica demo video.

Face the Facts: It’s a Drag and Drop World – Part III

Here’s part III of the series, the final installment. To catch up on part I click here, part II click here.

How to Craft a Workflow Strategy

  • Seek out a check-list driven workflow app provider that has restaurant specific knowledge.
  • Examine the pedigree of the management of the app provider.  The restaurant business is perhaps the most idiosyncratic business in the world.  Do they really know what goes on in the kitchen and on the floor?
  • Don’t be a guinea pig for a company that’s trying to break into the restaurant sector with new app development.
  • See how quickly the workflow app provider can implement you with their “off the shelf” apps, and how quickly they can customized a new workflow app for you.  Sometimes, as with OpsAnalitica, it’s as simple as upoading a spreadsheet.
  • Make sure your provider offers dashboard views of procedure compliance.
  • Make sure your provider offers analytics of your operations, because they are the “window into the soul” of your business. 

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Maximizing Your ROI

  • Technology at any cost is worthless unless it quickly pays back your investment.
  • Accountability management workflow apps, like those from OpsAnalitica, are famously quick to earn back initial investments… in part because they are relatively inexpensive to put in place to begin with.
  • When searching providers, be sure to look for an ROI calculator, or case studies that show how quick the earn-back was.

Finally, ask your accountability management workflow app provider for their input on which apps will do the most to optimize your restaurant locations.

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