Restaurant Consulting NYC | Happy New Year! | 4Q Consulting, LLC

Wishing Everyone a Safe & Profitable Year Ahead

 

Restaurants, Caterers and Food Service establishments, it is time to review your operating procedures from 2012?! Do you have the correct operating systems in place to be as profitable as you want to be? 

Take a look at our last blog, 4 Warning Signs That Your Operating Procedures are Impacting Your Bottom Line and then call or email 4Q Consulting, LLC today for a complimentary business evaluation!

 

Noelle@4qconsult.com

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

 

 

 

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 –
Year in Review

As 2012 comes to a close, now is the time to take stock of your business’ operational efficiencies. 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 | Top 4 Mistakes Managers Make in Managing People | 4Q Consulting, LLC

Top 4 Mistakes Managers Make in Managing People

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. Unfortunately, many managers lack fundamental training in people skills, which prevents them from being truly successful in running your business.

Here are 4 common mistakes managers make in working with people:

1 – Managers fail to get to know employees as people.  Developing a relationship with team members is a key factor in managing. You don't want your managers to be your employees' divorce counselor, therapist or best friend, but they do want to know what's happening in the lives of their employees. Getting to know employees can make a manager more responsive to employee needs, moods, and life cycle events.  However, managers should not get too close to their direct reports: this makes it difficult for managers to direct, supervise and discipline fairly without the perception of impropriety or of playing favorites.

2 – Managers fail to treat all employees fairly.  It is not necessary to treat every employee the same, but they must feel as if they receive fair treatment. The perception that managers have pet employees or that they play favorites can undermine their efforts to manage the team. This goes hand-in-hand with why befriending reporting employees is a bad idea. This perception of favoring one employee over another destroys teamwork and harms productivity.

3 – Managers fail to provide clear and open communication.  Work with your managers to communicate clear expectations to all employees. Ensure that the directions are specific for every task and project.  Managers need to achieve an appropriate balance that allows them to lead employees without dictating or destroying employee empowerment and  engagement.  Managers should ensure open lines of communication in both directions with their subordinates.

4 – Managers fail to take responsibility or give credit.  When things go wrong, managers should take responsibility for the entire team.  The manager needs to understand where things went wrong within the team and correct the actions as needed. When managers blame others, they look unprofessional and their employees will not respect them.  Managers need to understand that nothing breaks trust more than blaming someone else or taking credit for work that isn’t theirs.

Hiring a manager based on technical skills is often the route owners follow, however a manager who is deftly able to handle interactions with people will add immeasurable value to your business.  The four points above are basics that even the least “warm and fuzzy” manager should be able to handle, and can have a positive impact on your employee satisfaction, product quality and customer service.  This, as we have shown, can lead to greater productivity, lower turnover and an improved bottom line.

Don’t know where to begin?  Ask yourself, do you have the proper written procedures and operational guidelines in place so your manager can 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!

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

Restaurant Consulting NYC | The Role of the Restaurant Manager | 4Q Consulting, LLC

The Role of the Restaurant Manager
4 Basic Areas of Focus

You’ve decided to hire a Restaurant Manager.  As the owner, you will want to define the manager’s focus while they run the day to day operations of your business.  Whether you groom an internal candidate or hire an experienced manager to run your business profitably, you will need to provide them with a roadmap of your expectations of their responsibilities.

The following four tips suggest the global basics for any restaurant manager to help your business run effectively and more profitably:

1. Manage Costs
Managing costs is a critical function in the restaurant. The largest controllable costs include labor, food & beverage and waste. A good manager will need to know how to staff at the level of service you want, work with the kitchen to maintain costs and oversee standards and procedures to minimize waste, while maintaining the budget.  Managers need to be able to record and explain all costs.

2. Manage Quality
Managers are your eyes and ears when you are not in the restaurant.  You rely on them to uphold your product quality standards.  Managers should know and maintain food preparation procedures, food storage standards and presentation quality at all times.  They must be able to train the staff to uphold these standards and correct mistakes in real-time.

3. Manage Service
Managers play an important role in providing superior guest service.  Proper oversight of the flow and function between front-of-house and back-of-house and how this impacts the guest experience.  Managers must be properly trained to handle any situation that comes up in course of service and must guide the team through these situations.

4. Manage Team
Managers are role models for the rest of the staff.  They are your point person for maintaining your company culture. Managers should treat all staff members fairly, consistently, positively and respectfully.  They must set the example for acceptable behavior, without exception.

Managers are the walking embodiment of your employee handbook; you are paying your restaurant manager to ensure that your restaurant runs efficiently and profitably.  By clearly communicating job expectations and objectives, the owner can be certain that the manager understands their role.

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

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

4Q Consulting, LLC | Restaurant Consulting NYC | Does your restaurant compile a monthly P&L Statement?

Does your restaurant compile a monthly P&L Statement?

If it doesn’t, it should.  Here’s why:

A profit and loss statement, or P&L, is a basic income statement that serves as a financial report card for your business. It is an important tool in measuring cash flow and controlling costs. The more frequent and more detailed the statement, the more accurate picture of your business you will have.

Here are 4 important measures that a monthly P&L Statement exposes:

1. Cash Flow – by recording and categorizing sales on a monthly basis, you can quickly identify trends in customer demands or the result of a marketing campaign.  Knowing the week over week sales permits you to spot areas that require attention to build or to prevent potential issues from becoming problems.

2. Inventory Control – a weekly cost reading of inventory bought and/or held of all items sold, consumed or used allows you to react to rising costs by adjusting menu offerings and portioning. It also permits adjusting purchasing practices in relation to your cash flow and business volume. The restaurant must purchase enough products to serve customers without running out and without having too much left over going bad on the shelves.

3. Cost Control – detailed tracking of fixed and variable costs, such as payroll, operating expenses and occupancy costs can highlight wasted resources. Labor cost is often one of the largest expenses, but is also one of the most easily controlled (how many workers do you need on a Tuesday night while maintaining high-level customer service?). Tracking efficient use of all resources minimizes unnecessary expense.

4. Profit Margins – the most important piece of your P&L will be the end results.  What is actually left over from your sales, once all your expenses are deducted from them?  You’re in business to make a profit and if you are not in any given week, you need to consider making changes to your business.

Knowing this information in nearly real time allows you the best opportunity to effectively manage your business for profit. A weekly review allows you to be more nimble and flexible in making business decisions in a timely manner and know their impact on the bottom line.

Every business will vary based on product offerings. Don’t know where to begin? 4Q Consulting, LLC can create customized tracking systems for your business.  Give us a call today for a free consultation.

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

4Q Consulting, LLC | Restaurant Consulting NYC | 4 Reasons Why Your Restaurant Needs an Employee Handbook

4 Reasons Why Your Restaurant Needs an Employee Handbook

The employee handbook is one of the most important documents for your business. It establishes the policies and procedures employees must follow in your restaurant, catering business or food service establishment. As we have discussed in previous blogs, having specific procedures in place reduces waste, the possibility of fines and other unnecessary costs. There are tremendous long-term savings and potential for increased profits that can be realized by having clearly defined policies and procedures that are enforced, are adhered to, and become part of the culture of your business.

Here are 4 reasons why every restaurant needs an employee handbook:

1. Communicate Employee Expectations and Job Functions
Restaurant employees do better work when they fully understand their job requirements and specific procedures. A good employee handbook clearly defines job functions, behaviors and work expectation policies for each job role.  Consider translating this document into other languages to improve communications with staff. From an operational efficiency standpoint, the goal is to have every employee doing the same task consistently, which in turn can reduce waste and cut costs.

2. Improve Operational Efficiencies
A detailed handbook can be your most effective training tool, as it spells out how your establishment functions (policies) and how employees are expected to perform their duties (procedures).  You may consider creating procedure-specific manuals for different job functions. A higher level of detail can translate into increased operational efficiency, reduced training time, better continuity, less employee turnover and better customer service. The more specific you are, the better off you will be in the long run.

3. Create a Culture of Accountability
We have discussed creating a culture of accountability in previous blogs; written policies and procedures can facilitate this. With written policies, you can consistently hold employees responsible for their actions, both good and bad. Should you need to take disciplinary action, the employee handbook gives you clear, defined policies on which you are basing your actions.

4. Protect the Business
Having a well written manual in place can protect your business from potential labor disputes and costly legal fees, which can destroy your business.  It should outline unacceptable employee behaviors and related disciplinary policies.  It is important to know your local employment and labor laws to be sure that you are not setting policies that violate them.

There are many issues to consider when writing an employee handbook. Always consult with an employment lawyer or restaurant human resource professional before finalizing and publishing your handbook, as this often becomes a legal document. You will need to update the handbook periodically to reflect changes in your business as well as regulations and applicable employment laws.

Don’t know where to begin?  Ask yourself, do you have the proper written procedures and operational guidelines in place so your staff can help you be as profitable as possible?  4Q Consulting can develop customized operational guidelines and training programs to meet your needs. 

Call us today for a free business consultation!

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