Restaurant Consulting NYC | The Value of A Good Business Plan Your Restaurant’s GPS - Gastronomic Positioning System | 4Q Consulting, LLC

The Value of A Good Business Plan

Your Restaurant’s GPS - Gastronomic Positioning System

For many, opening a restaurant is often a romantic idea, until reality sets in of just how difficult it actually is.  We advise clients that developing a detailed business plan is the first step.  A great business plan becomes your navigation system (your GPS) for everything from raising funds, to fleshing out a concept, to getting open.   In its simplest form a business plan is a guide for your business that outlines your goals and details how to achieve them.

A good business plan should include: a summary of your concept, mission and company goals; a market analysis of where you plan to open – including a competitive analysis; a detailed description of your product and how you plan to execute that product; a labor model; several sets of financial models and an exit strategy – in the event that your concept doesn’t work.

Before and after opening your restaurant, a business plan can:

Be a pre-investment gut check - Investing in the development of a business plan before doing anything else can save you money, time and often heartbreak. The plan gives you an opportunity to flesh out your concept and to investigate whether it can be profitable in the marketplace.  You might just discover that what you thought was a great idea won’t work:  the demographics of the area may be wrong; the rents may be too high or the financial models don’t work for your concept.  Better to know in advance than risk losing many thousands of dollars after the fact.

Help you source start-up capital and financing – Many independent restaurants that try to self fund their start-up, are often under capitalized and fail within the first year.  A detailed plan, with several detailed sets of financial models, allows restaurateurs to secure outside monies with various types of lenders and/or through alternative sources.  Your plan must be able to answer the following questions for lenders and investors: 1) how and how soon do you plan to have a positive cash flow in order to be able to repay a loan or pay out investors? And 2) what is the unique selling proposition for your restaurant – for example, why will customers come to your restaurant versus the others in the neighborhood?

Help you manage cash flow- Careful management of cash flow is a fundamental requirement for all restaurants. The reason is quite simple: many restaurants fail not because they are unprofitable, but because they ultimately become insolvent.  Most restaurants' cash flow can fluctuate dramatically from week to week primarily because of the timing of payments like payroll, sales tax, and rent combined with on-going operating expenses. Unexpected costs, such as emergency repairs, only amplify this fluctuation. Knowing your business cycle (e.g. busy season/ slow season) will help you be proactive in your cash flow management. The only thing worse than having a cash shortage, is having a cash shortage that was a total surprise.

Be used as an on-going road map to your success and should be updated often.  By continuing to review and update your plan, you can understand and develop changes to, and the growth strategy for, your business. Regularly checking your planned performance versus your actual results allows you to make the necessary changes to get you back on track.  This is a living breathing document, not a book that is thrown in a drawer and never looked at again.

We see restaurants that did not start with a formal business plan struggle to be successful - they figured their passion and optimism were enough to build a successful company. Operating without a plan can prove to be more time-consuming and costly in the long run – like driving somewhere without directions and just hoping you get there.

Don’t know where to begin?  Do you know how to write a great  business plan with appropriate financial models? www.4qconsult.com can develop business plans to meet your needs. 

All original content copyright Noelle E. Ifshin, 2016-2017. 
President
4Q Consulting, LLC 
noelle@4qconsult.com  www.4qconsult.com 
244 5th Avenue, Suite 1430, NY, NY 10001  
(212) 340-1137

Restaurant Consulting NYC | Can You Hear Me Now? Ensuring your Brand Message is Heard | 4Q Consulting, LLC

Can You Hear Me Now?

Ensuring your Brand Message is Heard

Often when we review a new client’s existing marketing and branding, we find an unclear and confused message.  In order for any marketing to be successful, it must find continuity and fluidity across all platforms; the message must be Clear, Concise, Consistent and Communicable.  If customers can easily understand who you are, it clears one obstacle in improving your top line sales. Remember, a customer’s experience with your restaurant starts long before they walk in the door. 

Here are four basics to consider in ensuring customers hear your brand message: 

Know who you are.  The reality of your restaurant has to meet the expectations you are putting out in your marketing.  As we discussed in Restaurants Know Thyself, you can't be all things to all people.  Know who you are, embrace it, and include it in all of your marketing. If you run a Mediterranean restaurant in name, design and decor, you should not have an Irish Pub menu.  Remember, marketing your brand is not just about paid advertising, it also includes items such as menus, signage, uniforms, and scripted server approaches at the table.

Be Consistent. 4Q preaches consistency a lot, in all aspects of restaurant operations. You’d be surprised how many times we see inconsistencies in basic information – such as hours of operation and menus – in different places where a restaurant promotes itself.  Are the hours of operation on your door the same as on the printed take out menu?  Are they the same on your website, Facebook Page, Google listing, online ordering portals, etc.? Additionally, does all of your media reflect a consistent message and communicate who you are (see above)?  If customers don’t get consistent information and messaging about your restaurant, they will become confused, get frustrated and turn elsewhere to restaurants that care to get it right. 

Get your message online and keep it in line. Restaurants don’t always embrace their digital strategy in this day and age of 24/7 connectedness.  Before the Internet, restaurant marketing was static: it consisted mainly of newspaper, magazine, radio, TV and the yellow pages ads.   Today, marketing a brand message has become dynamic.  There is so much noise out there in the digital/social media world with paid ads, social media pages, customer reviews, etc. that  vie for customers’ attention. You have to actively manage your image with a consistent message by:  producing and posting relevant content that draws new customers and keeps existing customers engaged; responding properly to complaints in a public setting; answering questions; and utilizing “Calls-to-Action”.   Keeping a clear, focused message in all your online interactions, can help you stand out in all this digital noise.

Teach the message.  Employees are your walking, living, breathing billboards inside and outside of your restaurant; but are they putting out “The Message”?   You must inject a clear, concise, and consistent message into your employees, and hold them accountable to communicating it.  If your message is that you are a farm-to-table restaurant, your employees must be able to explain that to any and all customers and potential customers. Additionally, as we discussed in Employees are Your First Customers, “In social situations, often the first question asked is ‘What do you do?’ or ‘Where do you work?’”  Each time your employee answers that question, is an opportunity to communicate your message.

Small or large, independent or chain, no restaurant can ignore how their marketing message is heard. Certain advertising campaigns still resonate in our culture, and are long remembered because they are clear, concise, consistent and communicable – you can still sing that 30 year old jingle.  All of the pieces noted in this blog must work together in concert:  like a choir everyone must be singing the same song, in the same key, or the audience will leave!

Don’t know where to begin?  Do you know how to put policies and procedures in place to be as successful as possible?  www.4qconsult.com can develop customized operational guidelines to meet your needs. 

All original content copyright Noelle E. Ifshin, 2015-2016. 

Noelle E. Ifshin, 
President, 4Q Consulting, LLC 
noelle@4qconsult.com  
www.4qconsult.com 
244 5th Avenue, Suite 1430, NY, NY 10001  
(212) 340-1137

Restaurant Consulting NYC | You and Me and Restaurant Makes Three | 4Q Consulting, LLC

You and Me and Restaurant Makes Three

Husband and Wife Restaurant Owners

As discussed in The Family Owned Restaurant, family business are the bedrock of the U.S. economy. Family businesses often start with a husband and wife team trying to make a better life for their families.  In many cases, the marriages and the businesses become so intertwined that it becomes hard to tell where one ends and the other begins.  Starting and running a successful restaurant can be more demanding than having a baby, and often couples do not survive the birth of a restaurant.  

In order to ensure both the restaurant and your marriage survive, here are four important items to keep in mind when opening or running a restaurant with your spouse:

Treat the business like a business, not an extension of the home.  Draw a distinction and leave work in the business. If both husband and wife are to be partners in the restaurant, having a written partnership agreement is recommended – especially if you plan on having additional business partners. By the time you realize you need an agreement, due to a dispute, it is often too late.  You should have a written agreement that includes: the division of ownership; an outline of the amount of, and stipulations for, taking salaries; and how to handle any profits or losses.

Don't assume that the role in the personal relationship translates to the roles in a work relationship. Just as you want to define the partnership agreement, it is advised that couples decide in advance the work roles within the business – which spouse is going to do what.  For example, the person who balances your personal checkbook at home might not be the best one to reconcile purchase orders and inventory.  And, when defining job roles, if there’s something neither is good at, delegate it to someone else!

Couples we work with find that the key to their success as both a married couple and business partners is to continually communicate their roles and how they can help each other in those roles.  In that regard:  

Standard operating procedures (SOP’S) should be agreed upon, set and followed. Understanding the task expectations of each role and adhering to the agreed upon SOP’S that meet them, removes the possibility of misunderstandings with couple business owners.  Even the small tasks matter: agreeing upon how receipts are filed and the books are balanced; when cash is taken to the bank and who does it; who orders food and beverages and what levels of inventory you plan to keep; and who handles staff scheduling and how are changes to the schedule made are all examples of key items to agree upon in advance.

Support each other and be unified.  Present a united front to your employees at all times.  As basic as it sounds, do not bicker, fight or have large disagreements in front of your staff.  Like another other business partner relationships, you will have disagreements on how to run the business. Remain professional at all times and take those arguments off-site or behind closed doors.

Even though you are spending a lot of time together in the restaurant, you still need to make time for each other.  Find a way to have a night together away from the restaurant – even if you end up discussing restaurant business, being in a different environment changes the conversation.  And most importantly, try not to go to bed angry.  Fighting couples don’t work well together and can have a huge impact on how the business functions.

Remember why you decided to open a restaurant in the first place.  You want to plan ahead to be as successful as possible, while ensuring that demands of the restaurant don’t pull apart your marriage!

Don’t know where to begin?  Do you know how to put policies and procedures in place to be as successful as possible?  www.4qconsult.com can develop customized operational guidelines to meet your needs. 


All original content copyright Noelle E. Ifshin, 2015-2016. 

Noelle E. Ifshin
President
4Q Consulting, LLC 
244 5th Avenue, Suite 1430, NY, NY 10001  
(212) 340-1137

Restaurant Consulting NYC | Restaurant Industry Changes to Face in 2016 | 4Q Consulting, LLC

Restaurant Industry Changes to Face in 2016

As we ring in 2016, there are some big changes facing the restaurant industry.
Restaurants must prepare to face these changes in the year ahead to mitigate disruption to business operations, reduce costs and maximize customer satisfaction. 

There is good news on the horizon, as industry analysts point to a strong outlook for restaurants relative to the US economy for 2016.  The bad news is the restaurant business isn’t getting any easier.  Restaurants, which already operate on razor-thin margins, now face rising wages and commodity costs, increasing government regulations, and additional security and safety concerns.  

Operators should focus on the following four items to move their business forward in 2016:

The Pressure of Rising Wages, High Employee Turnover and the Reduction in the Labor Force will require operators to think strategically about their HR in relation to their overall operation.   The economic shift from the customer to the employer to cover a living wage – increasing minimum wages and a move away from a tipping model – compels operators to reduce employee turnover and hold on to their best employees.  We have discussed the cost of turnover before, but now more than ever restaurants cannot be a revolving door of hourly staff.  The cost to onboard a new employee is too high and constant turnover can make it hard to maintain your desired level of product and service quality.  Additionally, as the economy continues to recover, there are, and will continue to be, fewer qualified, skilled candidates to fill critical positions.

Technology can and should be leveraged in all aspects of your restaurant from enhancing the customer experience, to managing products and staff, and even monitoring food and beverage storage and usage.  The right investment in technology can help you be more flexible and nimble, which in turn allows you to manage what impacts your bottom line in a timely fashion.  The right technology can enable you to change menus sooner to combat rising costs, launch and track promotions, and ensure that your reservation interface is in-line with what your customers want.  Operationally, new technologies can improve scheduling to reduce labor costs, and increase table turnover to increase sales. Administratively, new technologies can help small businesses with their bookkeeping, payroll and sales tax processing.  Lastly, you must stay compliant in all Federal, State and local technology regulations that keep your customers’ personal and payment information safe from data breeches – which can be a costly mistake.

Caring For and Knowing Your Customer is crucial for your restaurant’s survival. According to a recent report by Morgan Stanley, Millennial’s’ dining habits are drastically different their parents’. Millennial’s eat out more often, view “Healthy” foods differently (they don’t count calories as previous generations), demand food from ethical sources, do not want traditional “Fast Food” and prefer Fast Casual Concepts. Millennial spending habits are expected to peak in the next 3-5 years to become one of the largest growing restaurant demographics in the United States.  You must know who your customer is to be able to provide them what they want, to reach them in your marketing and keep them engaged.

In light of what we discussed above - the challenges in the changing labor market, maintaining razor thin margins, trying to keep up with technology – Consistency must become your central goal.  As we discussed in Consistency Is King, “Customers should not have to spin the roulette wheel each time they visit your restaurant; they should experience the same quality of food and service every time.” When things go wrong, the first instinct is to completely change your operation.  However, as discussed in Restaurants Know Thyself, staying the course and perfecting your operations will dampen down the volatility of the challenges faced.

Modification and flexibility are critical for restaurants to survive in this day and age. However, adapting to the times does not necessarily mean an overhaul of your entire concept.  An overreaction to big changes can often be an over correction! 

Don’t know where to begin?  Do you know how to adapt to industry changes in a timely manner so you can be as profitable as possible?  www.4qconsult.com can develop customized operational guidelines to meet your needs. 

All original content copyright Noelle E. Ifshin, 2015-2016.

Noelle E. Ifshin, President, 4Q Consulting, LLC 

Restaurant Consulting NYC | Happy Holidays | 4Q Consulting, LLC

Happy Holidays and Best Wishes 

for a Happy New Year 

filled with Health, Happiness 

and Spectacular Success 

from all of us at 4Q Consulting, LLC

Restaurant Consulting NYC | Restaurants: Know Thyself | 4Q Consulting, LLC

Restaurants: Know Thyself

We have all heard the expression: “Jack of all trades, master of none” as it applies to individual people.  The same expression can be applied to your restaurant.  Your guests should not have to guess what you are trying to master or what your brand represents.  Restaurants need to decide, well in advance of product delivery, what they stand for, what their product is and what their message will be to the public. This becomes their brand’s value proposition.

Knowing what your value proposition is early on, and making that the base on which you build, is a key to presenting a unified message of who you are. It is essential not to dilute that value proposition trying to be everything to everyone: You would not offer barbeque, no matter how good, at a fine seafood restaurant; this is why well-known restaurateurs may own several restaurants, each representing a different concept or value proposition that they wanted to create.  A cohesive, singular message, as we talked about in Consistency is King, allows your guests to understand your restaurant.  If your brand message is confusing, your guests will be confused, might not return and move on to another restaurant.

Here are four brand values to help guide restaurants in finding out what their message and value proposition is:

Product Innovation – A restaurant that values being a leader in product innovation tends to be on the culinary cutting edge.  Your restaurant is continually seeking to push the envelope and the boundaries of food, beverage and service.  Whether it is exploring molecular gastronomy, sous vide cooking, rare hybrid ingredients or a new delivery system, you and your management team are never satisfied with the status quo. 

This value proposition attracts the type of customers who want to take this wild ride with you. This type of customer looks forward to your ever-changing menus and new ingredients, and likes to learn about new foods.  They come to expect this constant flux, and are disappointed if this level of innovation and product exploration stops.

Operational Excellence – When you think of large, fast casual chains and franchises like Chipotle and McDonald’s, you envision a restaurant that is a well-oiled machine.  Being consistent at what you do, from product quality and service to cleanliness, is the core value of this type of establishment. In restaurants where operational excellence is the main value, change is deliberate, well thought out and measured.  

Customers who value operational excellence expect a certain level of product and service every time, whether it is a taco at a taco stand or foie gras in a fining dining restaurant. These types of customers do not like surprises; in this type of restaurant, customers know what they’re going to get. 

Customer Intimacy – Customer intimacy is often found in smaller neighborhood restaurants, “joints”, diners, or coffee shops, where the staff comes to know the customers well.  In valuing customer intimacy, the restaurant can cater to customer needs and desires in a way that makes them feel special. A server who remembers your usual order and is able to anticipate your dining needs, creates an intimacy that attracts a loyal following in customers who value this – not all customers do.

These customers anticipate food at fair prices, knowing that it may not be the best (it still needs to be good!). The draw to this type of restaurant is that it is full of familiar faces, and has accommodating service. These customers seek a comfortable experience where “everybody knows your name”.

The Sweet Spot – It is a rarefied place when all of the above branding values intersect, creating “The Sweet Spot”. These are restaurants that have harnessed their creativity, worked out the kinks in their operation and fostered an atmosphere that is inviting.  It is important that you as an owner/operator understand your own strengths and weaknesses in relation to being able to hit this mark, as poorly implementing a core value can negatively impact the one(s) you are able to do well. Many successful restaurants achieve only one or two of these brand values - this is what they become known for and what their guests love about them.  

Product innovation, operational excellence, customer intimacy, and even “The Sweet Spot”, can be achieved at any level, from fine dining to fast food.   

When you have determined your value proposition, it should become the central tenet of your restaurant and be the basis on which you build your company culture. When everything you do is focused on your value proposition, your branding message will be clearly communicated to your customers. If your guests have to work to understand what your value proposition is, they will choose to go to another restaurant that has already figured it out.

Don’t know where to begin?  Ask yourself, do you have the proper branding values in place to help you be as profitable as possible?  4Q Consulting can develop customized branding and marketing plans, and operational guidelines to meet your needs.  Email us today for a free business consultation at www.4qconsult.com

All original content copyright Noelle E. Ifshin, 2014-2015. 

  

Restaurant Consulting NYC | Between the Lines - Operational Challenges That Can Make or Break Your Restaurant | 4Q Consulting, LLC

Between the Lines - Operational Challenges 

That Can Make or Break Your Restaurant

Today’s restaurants face many challenges: intense competition; rising cost of goods and real estate; and the slow U.S. economy - just to name a few. Restaurants average profit rates of 3-5% of sales* - thin margins by any measure. However, poor management can make those margins evaporate faster than a sauté pan of boiling water. It is no wonder that 60% of all restaurants fail within the first three years **

As a restaurant owner, you oversee all areas of your business.  These can be separated into three basics: Finance, Sales and Marketing, and Operations. Yet with only so many hours in a day, many owners neglect the breadth of their responsibilities, and only watch their revenue.  Sales and marketing is important in getting customers into your restaurant, and we covered this at length in Attracting Customers.  However, it is what happens within your operation, between top-line sales and bottom-line profits, which makes or breaks your business.

Here are the 4 biggest challenges that can make or break your restaurant:

Poor Financial Controls – Owners often watch their sales daily, while not watching their costs and expenses as diligently.  Common sense points out that if your profit margin is zero it will always be zero, regardless of sales level, unless you change something. Restaurants should measure costs in relation to sales on a weekly basis, as discussed in both Why a Weekly Food and Beverage Inventory is Crucial to your Small Business and Does your Restaurant Compile a Weekly P&L Statement.  Reviewing weekly statements allows you to spot problems and make operational adjustments much sooner than waiting until the full P&L at month’s end: improper product ordering and handling, waste, cash management and employee theft can be significant drains on your business, every day.  

As revealed in How Much of your Profits are Being Eaten by Employee Theft, many employees steal because they can get away with it, and few restaurants have the right controls in place to prevent it. Further, Measure by Measure and 4 Simple Ways Your Restaurant Employees Can Help You Be More Profitable showed how not controlling spoilage, waste and improper portioning can decimate your small margins. 

Poor Staff Training – As we stated in our Blog:  A Well Trained Staff is Your Secret Weapon, “People run your business and your business is only as good as your people. An effective training program is an owner’s key tool to ensure consistency in product and customer service, which is a basic tenet of running a restaurant.”  This is true for all staff, at all levels.  

With a properly trained staff you have less waste in your restaurant.  A short list of why this is includes: Training mangers on proper inventory and ordering avoids excess product; stewards on proper product storage and handling avoids spoilage; cooks and bartenders on proper recipe execution and production levels maintains portion controls; and servers on proper use of the POS system minimizes incorrect orders, misfires and voids.

Poor Quality Control – Quality Control is all about consistency. In our experience, consistency is best achieved by adhering to standard operating procedures that are codified in writing. As outlined in 4 Reasons Why Your Restaurant Needs an Employee Handbook, recipe books, job-specific handbooks, and training manuals standardize tasks and clearly communicate to employees your expectations and the standard to which they will be held. These procedures should cover, in detail, every process in your establishment, from purchasing guidelines to how to deal with an unhappy customer. As boring and unsexy as it sounds, excellence comes from consistency, which can only come from diligence and attention to detail. If customers know what to expect every time they walk in your door, they will keep coming back.

Poor Leadership – Whether it is you, as the owner, or an outside hire running your restaurant, there is a big difference between being a manager and being a leader. As discussed at length in Follow the Leader, “In order to lead rather than just manage, which is vital in today’s diverse, fast-paced world, one must be able to be more than a day-to-day task master. While a manager deals with the technical dimension in an organization or the job content, a leader marshals resources, human and otherwise, for the best possible results.”  Leaders communicate vision, build relationships and trust, train, coach and mentor, and encourage change and risk-taking.

Often, managers who come up through the ranks are not properly trained as managers and make common mistakes.  In the Top 4 Mistakes Managers Make in Managing People, we discuss how “Managers are the front line representation of your business and must effectively work with a diverse group of people. They must live and breathe your company core values and practices.”

Restaurant success depends on many things, but it can all boil down to one question: Where does the money go? Having a handle on your operations is a key to answering this question. Have processes and procedures to reduce economic drains, train your staff to follow them, hold them accountable and have trustworthy leaders in your organization. Additionally, you must be vigilant that your standards are upheld, and make changes as needed. It doesn’t hurt to get an outside, objective opinion from time to time as a gut check whether it is a consultant or mystery shopper

Don’t know where to begin?  4Q Consulting can develop customized business and operational guidelines to help you start and run your business.  Email us today for a free business consultation at www.4qconsult.com.

All original content copyright Noelle E. Ifshin, 2013-2014. 
   
Footnotes:
* 2005 Cornell Hotel and Administration Quarterly, http://cqx.sagepub.com/content/by/year
** NRA’s Restaurant Industry Operations Report 2013

Restaurant Consulting NYC | The Family Owned Restaurant | 4Q Consulting, LLC

The Family Owned Restaurant

Family businesses are the bedrock of the U.S. economy.  “Family owned businesses contribute 57% of the U.S. GDP, employ 63% of the U.S. workforce (FEUSA, 2011), and are responsible for 78% of all new U.S. job creation. (Astrachan & Shanker, 2003).” * Business schools have entire courses dedicated to examining the dynamics of family businesses.   According to Rocki-Lee DeWitt, Professor of Management at the University of Vermont’s School of Business Administration:

                   “When family and business are ingredients in a restaurant 
                    business, be ready for some tasty treats and momentous
                    flops. The family must ask themselves ‘What would this 
                    business look like, and how would it run, if my family wasn't 
                    involved in the business?’'"

Psychologically, families tend to be driven by a deep concern for both the well-being of individual family members and the family legacy.  When a family works together, normal family goals may come into conflict with the economic goals of the business.  

With proper planning, many of these challenges and conflicts can be avoided.  Here are four “must-haves” if you are considering owning or currently running a family-owned restaurant:

Have a Written Partnership Agreement – Many families assume they do not need to formalize their partnerships with family members.  By the time they realize they need an agreement, due to a dispute, it is often too late.  You must have a written agreement that should include: the division on ownership; an outline of the amount of, and stipulations for, taking salaries; and how to handle any profits or losses.  Additionally, and possibly most importantly, family partnerships must have defined job roles – who is going to do what?  Just as a corporation would have specific written job descriptions and job roles for executives, so should a family-run restaurant.  Do not assume how the responsibilities and work load will be divided up. If you are formally registering your company as an LLC, a Corporation or a Partnership, some of these factors will impact how you structure your business.

Have Written Standardized Procedures and Strict Internal Controls – The challenge of any family owned business is how not to run it as the family unit.  Standard operating procedures (SOP’s) should be followed by all employees, whether or not they are family members.  Having written manuals outlining SOP’s for all procedures in the restaurant, ensures that all employees are held to the same standard. For example, the owners or family members should not be doing their personal grocery shopping intertwined with the restaurant’s food ordering.

Furthermore, if a family member has always been great with money, you still need internal cash controls in place.  Ensure that your policies and procedures are just as stringent as they would be if an outsider was doing the work, and have your cash and internal controls reviewed by your CPA.

Have a Higher Level of Professionalism – Just as family members must be held to standardized procedures, at minimum, in their duties, they must be held to a level of professionalism to keep personal matters out of the business.  Family members typically have insight into each other's personality and thought process that non-related business partners wouldn't have, making crossing the professional line into personal terrain tempting.  While lashing out at a co-worker would not be acceptable in most corporate positions, it's easier to lose your cool when there's a personal relationship involved.  I hear from many of my clients in family-owned restaurants “you say things to your relatives that you wouldn't say to anyone else, or you would land in court".  Leave your emotions at the door and remember your family members are your co-workers when you're at the office.

Have a Succession Plan – A comprehensive written succession plan is crucial for all businesses, especially family-owned restaurants, to avoid disputes and misunderstandings.  First and foremost, have a plan should one of the partners or family executives decide to leave the business: how will their role be covered and how will ownership be re-allocated?  Consider including estate planning in your partnership agreement for an older partner to protect the family and restaurant from estate taxes and probate costs.  Further, don’t assume younger generations will want to come into the business or that they will know how to run it when they do; start grooming your successor several years before you plan to retire.  Lastly, if no family member wants to run the business and you don't want to bring in an outsider, start to put together a detailed plan, sooner rather than later, to sell or merge.

Whether a restaurant is family-owned and operated, it is still a business and must be set up properly with clear, well-defined goals and objectives and be operated with the same standardized procedures as any other business.

Don’t know where to begin?  4Q Consulting can develop customized business and operational guidelines to help you start and run your business.  Email us today for a free business consultation at www.4qconsult.com.

Footnote:
* University of Vermont School of Business Administration, Family Business Facts             http://www.uvm.edu/business/vfbi/?Page=facts.html

All original content copyright Noelle E. Ifshin, 2012-2013. 

Restaurant Consulting NYC | Attracting Customers | 4Q Consulting, LLC

Attracting Customers

We have often been asked, “What is the best way to attract customers to my restaurant”? That is a difficult question to answer, because there is no single best way. Spending money on advertising, mailing flyers and promoting dining specials can be a good start and may get people in your door – once, especially if you’re the new place in town. However, the real trick is getting customers to come back – that is the key to a successful restaurant.

In our opinion, it is the customer experience at your establishment that drives repeat business, which will attract new business, as you will read below. Even if your publicity and marketing program is nothing more than an easel on the sidewalk in front if your sandwich shop, there are broader concepts that you can apply to bring people to your door again and again.

Here are 4 basic things all restaurants should be doing to attract customers:

Be The Best, Consistently – Seems easy enough: Strive to offer the best food and the best service. However, you should also be the best boss to your staff; hire only the best employees (with the right attitude) and enable them to be awesome through excellent training, to give the best customer service; have the highest possible sanitation standards; buy only the freshest ingredients; get involved and give back to your community.  Be mindful of being consistent in all these things so that customers have the same good experience time and time again. This will pay off, as you will read below.

Manage Your Reputation – These days reputation management needs to take place both on-line and off.  On-line reputation management is a frequent topic of debate, with review sites like Yelp and Tripadvisor providing near-real time feedback from unhappy customers. Complaining about or simply ignoring poor on-line reviews will not make them go away, they are a reality of doing business today; they require timely, professional responses that address problems, quell issues and regain customers. Using customer reviews as a training tool can actually help to improve your operating procedures; see our Blog on how to use: Customer Feedback in your Pre-Service Meetings. However, restaurant owners must also manage their reputation off-line, meaning in person at their restaurant. Additionally, training your managers and front-line staff to resolve customer issues effectively will go a long way in guarding your good reputation. See our blog: Bad Experiences Can Make Loyal Customers.

Social Media – Traditional advertising is static and communicates in one direction. Social media is dynamic and can be to be a powerful sales tool. It allows you to engage customers directly like never before, encouraging a dialogue with you, as well as between customers and their friends, to discuss your restaurant. The key to enhancing your restaurant sales through sites such as Facebook, Twitter, Instagram, or Pinterest is to use them actively - daily postings of food photos, promotions, upcoming events, specials, video instruction of how to make your recipes -  all work to drive engagement, which in-turn drives traffic to your restaurant. The most important thing that a good social media program gives you is feedback from your customers, which we noted above can help improve your operations.

Everyone is a Sales Person – Traditional marketing tells us it is easier and cheaper to have repeat customers than to attract new customers. However, that adage doesn't remind us that happy customers are the easiest and cheapest way to get new customers.  You may remember the commercial: “I told two friends, and they told two friends, and so on, and so on.” If every customer you serve has an excellent experience, from the food, to the service, to the cleanliness, to how a problem is handled, they might sing your praises to others, both on-line and off. You start to create “Raving Fans”, who will tell two friends off-line; on a social media website, that could be 2000 “friends” – they have become your salespeople.

Similarly, as we discussed in our Blog: Employees are Your First Customers, happy employees, who believe in your brand, are proud of where they work, and will give the effort needed to achieve the level of service you require.  Also, away from work, they will speak positively of your restaurant and become brand ambassadors out in the world.

A satisfied customer is the most valuable form of advertising and marketing. You can’t buy it, you can only earn it through good customer experiences, fortified by staying top of their mind. By focusing on what happens during customers’ interactions with your restaurant, in all forms, you will have a much more successful and sustainable business – And people will come to your door.

Don’t know where to begin?  4Q Consulting can develop customized Sales and Marketing plans, and operational guidelines to help you grow your business. Email us today for a free business consultation at www.4qconsult.com.

All original content copyright Noelle E. Ifshin, 2012-2013. 
   

Restaurant Consulting, LLC | Location, Location, Location... | 4Q Consulting, LLC

Location, Location, Location...

Everyone has heard the expression: “Location, Location, Location”. A restaurant's site selection is as crucial to its success as great food and service. However, many restaurants that open in “great locations”, fail because they don’t adjust their business model to the particularities of that location.  

Choosing a location involves more than picking a place and signing a lease. Your location selection will influence many parts of your business plans and operations. 

It is highly recommended to work with a licensed real estate broker who knows your local market. They will best be able to guide you to appropriate properties, and to negotiate the best possible deal on your behalf; be patient as this process takes time.  If you already have a certain location in mind, you shouldn't become too attached until you know it meets your needs.

Before you create a business plan, write a menu, or dash off to the bank to apply for a loan, here are 4 essential elements of a location to consider:

Population Base/ Demographics – There need to be enough people who live or work in, or pass through, the area on a regular basis to keep your restaurant busy.  The population base and the different types of traffic will dictate some of your operating procedures.  For example, if you are in a thriving downtown commercial area, you might only open for breakfast and lunch but close for dinner, as there is not enough foot traffic to stay open. Your location, and its demographics, may influence your menu design, as well.

To analyze the population base of a particular area fully, you can commission a site study. A reputable local real estate broker or the local chamber of commerce can also provide some of this basic information. 

Financial Realities – Rent is usually your largest fixed expense, and you will probably have significant capital investment to prepare the space to be operational, therefore your business plan must account for covering and recuperating these expenses.  In building your business plan, you will have to budget several scenarios to determine how many guests you will have to serve, at a specific check average to be profitable at a given rent; you will also need to determine if the plan is sustainable over time, to meet your financial obligations.

Accessibility – There is a reason that major restaurant chains are often located near main intersections or highway and freeway exits. Most successful restaurants, whether in urban or suburban areas, are easy to find.  Your restaurant should be street-facing and not tucked away in a building or set back. 

How your customers get to you is also a consideration. A parking lot, easy public or street parking, and nearby public transit all improve accessibility; alternately you might offer valet service. The bottom line is that your customers need to be able to find you, and should be able to get to you - make it easy for them!

Operational Needs – A space that does not immediately accommodate your operational needs is not a bad space, it may in fact be a very good space; it just changes your financial calculations. A few examples of items that can affect the capital investment or the targeted cash flow of your business:  Many office buildings do not allow cooking in the attached retail spaces, as they do not want smells permeating the building; if they do allow it, you may have to build out proper ventilation.   Ensure the space is ADA compliant, and meets local public safety codes; if it is not, you will have to alter the space to adhere to regulations. The zoning of a location is vital; some municipalities may limit sidewalk or outside seating, or may not issue liquor licenses if you are located near a school or house of worship. 

Do your due diligence. By understanding each of these elements, and how they may affect your business plan, you can better choose the right location for your new restaurant.

4Q can provide restaurant site selection consulting services and works with New York’s best commercial real estate brokers to find a location that meets your every need. 

Don’t know where to begin?  Ask yourself, do you have the proper business plan in place to help you be as profitable as possible?  4Q Consulting can develop customized business plans, and operational guidelines to meet your needs.  Email us today for a free business consultation at www.4qconsult.com

All original content copyright Noelle E. Ifshin, 2012-2013. 

Noelle E. Ifshin, President, 4Q Consulting, LLC        

244 5th Avenue, Suite 1430, NY, NY 10001   

Restaurant Consulting NYC | We’re Having a Heat Wave, A Tropical Heat Wave… | 4Q Consulting, LLC

We’re Having a Heat Wave, A Tropical Heat Wave…

Just as Irving Berlin wrote, “The temperature’s rising/ It isn’t surprising”.

This week’s heat wave has been forecasted and we tend to have one or two every summer.  Restaurant owners should be prepared to take some proactive steps to keep both their guests and employees safe when the mercury rises.

Here are 4 areas to keep in mind to keep guests and employees safe in a heat wave:

Keeping People Safe – 

• Keep guests and workers cool, comfortable and hydrated – make sure everyone is drinking plenty of water
• Either provide both shade and air circulation or close outside seating during the hottest part of the day – to ensure the safety of both your guests and employees.
• Provide water and food for your staff – hydration is vital, but so is maintaining blood sugar levels.
• Monitor staff and guests for signs of distress or heat stroke.
• Lighten the uniforms of the dining room staff – think about a summer weight uniform, with light colors clothing and short sleeves.  
• Monitor patron’s alcohol consumption as over consumption in extreme heat can be accurately dangerous.

Maintaining Your Equipment –

• Service all refrigeration and AC units prior to summer so they don’t breakdown in a heat wave.
• Instruct your staff to keep the AC at a consistent level.  Turning the AC or refrigeration units down too far will overload and freeze up your cooling system, rendering them useless.
• Ensure kitchens are properly ventilated and have fans
• If your ice machine is air cooled and struggling to keep up, consider purchasing cubed ice for drinking; similarly, if your refrigerators and walk-ins are struggling, consider purchasing dry ice.

Monitoring Food Safety –

• Monitor refrigerator and product temperatures closely and take corrective action immediately. Remember all foods must be stored at or below 40°F.  If your walk-in is above 40°F, your food is not properly stored and can be a health hazard.
• To keep cold food cold – 
• Keep walk in and fridge doors closed as much as possible.
• Do not overload refrigerators – if the fan unit in the fridge is blocked, this will cause poor air flow and will inhibit the unit’s cooling ability.
• Do not block refrigerator’s external condensing unit with debris and storage items; which would inhibit the units cooling ability.
• Prepare food in small batches to reduce the amount of time food is out of refrigeration and in a very hot kitchen.
• Use proper thawing and cooling techniques: do not leave food out on counters to thaw; thaw all food under running cool water (water should be below 70°F).

Modifying Menu Offerings – 

• Offer lighter menu items for the summer – heavy sauces, stews and roasts are can be unappealing when the mercury rises.  These could include cold options such as salads, sandwiches and cold soups.
• Add more small plate and appetizer options as people not only eat lighter food, but they tend to eat smaller portions when it is very hot outside.
• Add frozen non-alcoholic drinks, chillers and fruit flavored waters to menus.

As Cole Porter said in song: “It’s too Darn Hot!”  A few proactive easy fixes can help you get through these periodic heat waves while keeping your guests and employees safe. Also, keep in mind for next year’s planning.

Don’t know where to begin?  Ask yourself, do you have the proper written procedures and operational guidelines in place to help you be as successful as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs. Email us today for a free business consultation at www.4qconsult.com.

All original content copyright Noelle E. Ifshin, 2012-2013.

Restaurant Consulting NYC | 4 Warning Signs That Your Operational Procedures are Impacting Your Bottom Line | 4Q Consulting, LLC

4 Warning Signs That Your Operational Procedures are
Impacting Your Bottom Line –
Mid-Year Review

As we enter the second half of 2013, now is the time to take stock of your business’ operational inefficiencies. Whether you are restauranteur, caterer or food service provider, examine which procedures are currently working and get rid of those that are not.

Here are 4 warning signs that indicate that you have a problem with some of your operating procedures that may impact your bottom line:

High Employee Turnover - This is an indication of a larger human resource issue.  Exit interviews can uncover a pattern of something amiss in your organization. For example, are your managers adhering to the guidelines of your employee handbook?  Our Blog,  4 Reasons Why Your Restaurant Needs an Employee Handbook,  takes a look at this.  High employee turnover becomes expensive due to the cost of recruiting, hiring and training new staff.  High turnover can also make it hard to maintain your desired level of product and service quality, as it pulls management away from running the business to train new staff and by always having novice front-line staff.

Theft - If you think you don’t have any, you are wrong; and if you are aware of some theft, the problem is larger than you think it is. Re-examine the obvious places where theft occurs to ensure your controls are in place and being used.  But also look at the less obvious places.  In our previous blog we discussed, how theft is a major drain on your bottom line. Our Blog entitled: How Much of your Profits are Being Eaten by Employee Theft? Four Basic Ways to Prevent Employee Theft in your Establishment, examines this more in depth.  Holding your staff accountable with strict controls, checks and guidelines can help you to maintain your bottom line profits.

Safety and Sanitation – Poor safety and sanitation can lead to waste, unnecessary health department fines, and a PR nightmare. Now is the time to review your food safety and sanitation training program.  As discussed in our blog entitled  4 Reasons why it is Vital that All Employees are Trained in Food Safety,  having dirty bathrooms, employee accidents, fruit flies at the bar, or violations from the health department can hurt your quality, effect employee morale and lead to a loss of business.

Quality –There are many components to quality.  They all lead back to proper training and execution of operating procedures by your staff.  Seeing an increase in improper order taking, plates being returned to the kitchen and general complaints about service and cleanliness are often red flags, as are negative on-line reviews. A positive customer experience is the ultimate goal. Turning poor customer experiences into positive ones can be a valuable training tool and learning experience, and can lead to customer loyalty.  Our blog Bad Experiences Can Make Loyal Customers explores this.

The issues above can erode your profit margin quickly and lead to your business’ demise. If procedures are not working now, they won’t work in the future and need to be changed. Improving upon your guidelines and procedures can ensure that 2013 is your most profitable year yet.

Don’t know where to begin?  Ask yourself, do you have the proper written procedures and operational guidelines in place so you can be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs.  Call or email us today for a free business consultation!

All original content copyright Noelle E. Ifshin, 2012-2013.

Restaurant Consulting NYC | Happy July 4th! | 4Q Consulting, LLC

Happy July 4th!

Restaurant Consulting NYC | Risks and Responsibility of Owning and/or Operating a Restaurant Series: Accident Prevention | 4Q Consulting, LLC

Risks and Responsibility of Owning and/or Operating a Restaurant Series:  

Accident Prevention

When you decide to own or operate a restaurant there are inherent risks and responsibilities that you are undertaking.  It is important that you take every measure to minimize these to protect yourself and your employees from possible injury, harm, litigation and financial loss.

As a restaurant owner, it is your responsibility to keep both your guests and employees safe, while they are in your establishment.  Restaurants are full of hazards and can be dangerous places, if safety is not top of mind.  Injuries from accidents in your restaurant of either a guest or employee create a no-win situation for everyone involved.  The injured party experiences pain, suffering and incapacitation while the company suffers from the loss of the injured person's contributions, possible litigation and financial loss.

Here are four basic steps to help prevent accidents in your restaurant:

Cleanliness & Maintenance – Slips, trips and falls are the most common types of accidents in restaurants and these are most often caused by wet, greasy or unclean floors; uneven, improperly secured and/or frayed flooring or carpeting can also be the culprits.  Spills and wet floors should be cleaned up as soon as they occur, and trip hazards should be fixed as soon as they become apparent. Additionally, handrails should be properly secured, outside walkways should be well lit and all stairways should be kept clear.  Another common cause of injury is poorly maintained or broken equipment: This could be as small as chipped glasses in the dining room or as large as frayed electrical wires on the Robot Coupe. Ensure that all equipment is routinely inspected, serviced or replaced for the safety of your employees and guests. 

Safety Tools for the Job – Proper clothing on your employees can be one of the most valuable safety tools in your restaurant.  Starting from the bottom up, all employees should wear sturdy leather, anti-slip shoes specifically designed for hospitality workers.  Moving upwards, legs, arms and heads should be covered in kitchens to prevent cuts and burns; in the dining rooms, uniforms should fit properly to avoid trips on pant legs and sleeves getting caught on service items or in machinery.  Additional types of supplies for safety include, but are not limited to: “caution when wet” signs, knife guards and gloves, proper eye protection, and guards on slicers.

Safety Protocols – Written guidelines for safety procedures must be developed, communicated to all employees and adhered to.  These procedures should become part of the routine, with managers and supervisors integrating them into their daily activities: training, pre-service uniform line ups, and regular facilities inspections. Job-specific protocols should be included in position-specific written manuals, and general safety protocols should distributed to all employees in writing.  Never assume that your employees know even the most basic safety protocols, and always put them in writing.

Train, Train and Train Again – Safety training should be a major focus when on-boarding new employees, however training should not stop there. Accidents often happen when employees become complacent; incorporate safety procedures into employees’ daily job responsibilities and reinforce these protocols with refresher training.  Pre-service staff meetings are a convenient time to discuss safety issues and keep them top-of-mind. It is also helpful to have reminders of safety protocols throughout the work areas: For example, in the delivery receiving area posters reminding proper lifting technique, or signs near large kitchen equipment reminding proper use of safety guards.

The points above are employee training issues at their core.  Properly educating your staff in all manner of restaurant safety is crucial in preventing accidental injury of employees and guests and protecting your business from potential litigation.

Don’t know where to begin?  Ask yourself, do you have the proper procedures and operational guidelines in place to help you be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs.  Email us today for a free business consultation at www.4qconsult.com.    

All original content copyright Noelle E. Ifshin, 2012-2013. 

Restaurant Consulting NYC | Risks and Responsibility of Owning and/or Operating a Restaurant Series: Responsibly Selling Alcohol | 4Q Consulting, LLC

Risks and Responsibility of Owning and/or Operating a Restaurant Series:  

Responsibly Selling Alcohol

When you decide to own or operate a restaurant there are inherent risks and responsibilities that you are undertaking.  It is important that you take every measure to minimize these to protect yourself and your employees from possible injury, harm, litigation and financial loss
.
One of the first decisions you make in planning a restaurant is if you want to apply for a liquor license. The sale of liquor is controlled differently in each state in the US, and often at the local level, under laws referred to as “Dram Shop” law. The process of obtaining a liquor license, and the types of licenses available, differ as well. Your local and state law may influence your decision on the type of liquor service you will have in your restaurant – beer and wine only, full bar, bottle service, or “bring your own”.  It is imperative that you know the laws regarding your legal responsibility in each of these situations.

Your bartenders, and anyone else on your staff that handles and serves alcohol, must be properly trained in how to limit your liability. In some states even, individual servers need to obtain permits to be able to serve alcohol.  

Here are four basic ways to ensure the responsible sale of alcohol:

Check Identification – The first step in serving alcohol responsibly is to eliminate underage drinking; to do so, you must verify age by checking Identification.  It is essential to train your staff on how to check, and what are acceptable forms of ID.

Do Not Over Serve – It is never a good idea to continue to serve inebriated patrons.  It is your right to refuse service to guests who are drunk, whether they arrive drunk or become so at your restaurant.  It seems simple enough to figure out when someone has had one too many, however, some people can hold their liquor very well. If your staff is not properly trained, they may not realize the patron is drunk until it is too late.

Offer Options – Cutting a customer off is never any easy task.  When having to say “no” to alcohol, offering other options such as food and non-alcoholic beverages softens the blow.  This allows the customer to still be served in your restaurant.  Be aware that food and coffee will not sober someone up; the only proven method is time, and keeping the customer in your restaurant allows time to pass. 

Ensure Safe Transit – Do not allow the guest to leave your restaurant drunk if they are driving.  Either be certain another member of their party is able to drive, or offer to call a cab or another ride home for them.  In many instances, by permitting an inebriated customer to leave your establishment, you, your bartenders and servers could be held liable should that individual cause harm in an accident.

A restaurant’s liability in serving alcohol is a very complex matter and these points are only the beginning. Two of the top nationally recognized training programs in this area in the US are TIPS® (Training for Intervention ProcedureS) and ServSafe Alcohol®. Having members of your staff properly trained in this area can prevent situations where you might have potentially significant liability. Additionally you may be able to receive credit on your insurance premiums by having members of your staff certified in these programs. 

The points above, though crucial in protecting your business from potential litigation, are customer service issues at their core. Properly training all of your staff in how to handle difficult situations so that they are not embarrassing for the customers involved has tremendous value in customer loyalty.

Don’t know where to begin?  Ask yourself, do you have the proper procedures and operational guidelines in place to help you be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs.  Email us today for a free business consultation at www.4qconsult.com.


All original content copyright Noelle E. Ifshin, 2012-2013.

Restaurant Consulting NYC | A Well Trained Staff is Your Secret Weapon | 4Q Consulting, LLC

A Well Trained Staff is Your Secret Weapon

Restaurant owners are often frustrated by not achieving their goals in relation to quality, customer satisfaction and financial benchmarks, yet many times they have not given themselves the appropriate tools to do so. Tools for your restaurant such as the newest, most integrated POS system, the most expensive kitchen and bar equipment, and even the best operating systems and procedures do not mean anything without a well-trained staff. 

People run your business and your business is only as good as your people.  An effective training program is an owner’s key tool to ensure consistency in product and customer service, which is a basic tenent of running a restaurant.  

Here are four key elements of such a program:

Proper Training Materials – Codifying operating procedures so they make sense to you is easy, however organizing and presenting the materials in a way that your staff will understand them may not be. Your staff probably comprises a diverse combination of people from different socioeconomic backgrounds and cultures with varying levels of education; additionally, research shows that people learn in three very distinct ways: visually, auditorily or tactilely. A training program that takes all of these factors into consideration should include: job specific written manuals (perhaps in more than one language), demonstrations and/or illustrated step-by-step procedure instructions, and hands-on or role-playing exercises.

Validate & Reinforce Your Training – To validate the efficacy of your training you must quiz, test and confirm that the information has been learned and absorbed. It is also important for managers to reward and reinforce the “good behaviors” done on the job - those that follow operating procedures as trained, as we discussed in our blog Keeping Employees Happy at Work – Happy Employees Part 2. Through reinforcement, you will discover who needs more training, how effective your training is, and perhaps what changes need to be made to your program.

Train your Trainers – Many restaurants often make the mistake of assigning their best employees the task of training new staff without taking the time to instruct them on proper training techniques and methods. Just because an employee is good at what he or she does, does not mean that he or she can teach someone else how to do it. Your trainers must be fully inoculated with company culture including policies, procedures and daily work tasks, as well as customer service values; they must have a complete understanding of the written manual for the job they are training; and they must be taught how to impart information in the way you want, so that training is consistent.

ABT – Always Be Training! – Training should be ongoing, not limited to the initial on-boarding process, and incorporated into the daily routine of your operations. As we wrote in our blog Are Your Pre-Service Meetings a Waste of Time?, there is an opportunity every day to share new information and keep your staff’s knowledge up-to-date. Work closely with your managers on what needs to be retrained, as they should be most aware of how policies and procedures are being followed by their direct reports.

A well-run restaurant can survive without the newest technology or the latest equipment. However, it cannot succeed without people trained to execute your vision, product and service ideals.  If you do not invest the time and energy to have a full training program, hitting your business targets becomes increasingly difficult.  As an owner or operator, a well-trained staff – from your Executive Chef to your Bussers – is your primary and most valuable tool.

Don’t know where to begin?  Ask yourself, do you have operational guidelines in place so you can be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs. 
Email us today for a free business consultation!

All original content copyright Noelle E. Ifshin, 2012-2013.