Tipping, a customary practice in many service industries, is a vital lifeline for workers striving to make ends meet. This practice plays a pivotal role in recognizing and valuing the efforts of individuals who provide essential services, such as waitstaff, bartenders, and delivery personnel. Beyond the simple act of leaving spare change or a gratuity, tipping symbolizes a gesture of appreciation and empathy, bridging the gap between the cost of services and the often modest wages these workers earn. In recent years, however, “tipping fatigue” has altered how people feel about leaving tips.

 

How Has Tipping Culture Changed in 2023?

A new Bankrate survey reveals that tipping practices in America vary widely, with 66% of adults holding a negative view of tipping. People express preferences for improved employee pay (41%), annoyance at pre-entered tip screens (32%), and belief that tipping culture is excessive (30%). Additionally, 15% are confused about whom and how much to tip, while 16% would accept higher prices to eliminate tipping.

Although tipping is disliked, it remains prevalent. Roughly 44% of sit-down restaurant patrons tip at least 20%. Tipping patterns differ among services, such as hair stylists, food delivery, and taxis, with generational and regional variations. Gen Z and men tip less frequently, and overall tipping frequency has declined since 2019.

 

Gen Z is Tipping Less

Gen Zers, aged 18-26, are less likely to tip the standard 20% when dining out compared to older generations. The same Bankrate survey revealed that only a quarter of Gen Zers tip 20% or more, in contrast to over half of Baby Boomers who do. The inclination to tip increases with age, with older generations being more generous in various scenarios like dining out, food delivery, and hairdressing services. Gen Z’s different approach might be due to their limited exposure to traditional tipping culture and a more accustomed interaction with pre-entered tip screens at places like coffee shops. While some older adults find tipping excessive, Gen Zers are less bothered by it. About 22% of Gen Zers believe tipping culture has become excessive, while 33% of Gen X and Baby Boomers share this sentiment. The lower tipping tendency among Gen Z could be attributed to lower incomes and a lack of familiarity with tipping norms. Some young adults may also view tipping through a social justice lens, deeming it unfair, but experts emphasize that not tipping where expected hurts individual workers, not just the business.

Tipflation

Americans remain among the world’s top tippers, with customary rates ranging from 15% to 20% of the bill. The prevalence of lower-paying service jobs and reliance on tips for income has led to discussions on “tipflation,” as digital payment systems prompt customers to tip, sometimes exceeding 30%. This trend extends to online orders and remote transactions, with nearly 75% of such interactions requesting gratuity.

The pandemic exacerbated this trend, as patrons tipped more generously to support struggling service workers, reinforcing the societal norm. However, this dependence on tips perpetuates income disparities, creates unpredictability for workers, and contributes to financial insecurity. While tipping offers advantages such as incentivizing excellent service and enabling higher earnings for some, its downsides include burdening customers with expectations, unequal compensation among workers, and the potential for income inequality.

As the conversation around tipping culture continues, finding a balance between fairness for workers and respecting established norms remains a crucial aspect of this evolving landscape.

 

Sources:

Bankrate.com
businessinsider.com

Forbes.com
openai.com

The U.S. Senate and House of Representatives have introduced a new A bipartisan bill called the Credit Card Competition Act of 2023 (CCCA). This bill aims to reduce credit card processing fees for businesses like restaurants, which currently rank as their third-highest cost. The bill seeks to foster competition among credit card processors, specifically targeting the dominant networks of MasterCard and Visa, which are used in about 80% of credit card transactions in the U.S. With the average restaurant paying between $20,000 and $50,000 each year in credit processing fees, this can be the gateway to significant financial relief.

CCCA would mandate the largest banks in the country (those with assets exceeding $100 billion) to issue credit cards with a minimum of two separate networks not affiliated with each other. This mandate would allow restaurant owners with the authority to opt for the most efficient and secure network for processing their credit card transactions.

 

If approved, this law would reduce swipe charges, enhance credit card security and performance, and provide annual savings of around $15 billion for businesses and consumers. Additionally, removing the obligation for operators to cover these inflated swipe fees would enable organizations like restaurants to invest in their staff, carry out essential enhancements to their establishments, and transfer the cost savings to customers.

CCCA is supported by organizations including the National Restaurant Association, International Franchise Association, National Association of Convenience Stores, National Grocers Association, Hispanic Leadership Fund, NATSO, and over 200 state and regional business associations.

Read more about the proposed legislation here.

 

Sources:

gazettenet.com
restaurantbusinessonline.com
restaurantnewsresource.com
restaurant.org
Lofgren.house.gov
Openai.com

The hospitality industry has always been a highly competitive field, constantly seeking ways to attract and retain top talent. Traditionally, recruitment efforts have been the focus, with organizations dedicating substantial resources to finding skilled individuals to join their teams. However, there has been a notable shift in priorities in recent years as the industry recognizes the significance of employee retention and its impact on overall success.

In the past, the emphasis on recruitment was driven by the high turnover rates commonly found in the hospitality sector. Jobs in this industry often involve long hours, demanding work environments, and seasonal fluctuations, leading to a revolving door of employees. The cost of constantly hiring and training new staff members became a significant burden for hospitality businesses. As a result, efforts were primarily directed toward attracting new talent to fill these vacant positions.

However, forward-thinking organizations are now realizing the benefits of prioritizing employee retention. The hospitality industry is beginning to understand that retaining skilled and experienced staff members can lead to improved customer satisfaction, increased productivity, and, ultimately, higher profits. Let’s explore some key reasons why the shift in focus is occurring.

 

1. Enhanced Customer Experience:

   Employees who have been with a company for an extended period develop a deep understanding of its values, processes, and customer expectations. They become more adept at providing personalized and attentive service, leading to an enhanced customer experience. Retained employees are often better equipped to handle challenging situations, resulting in higher customer satisfaction and increased customer loyalty.

2. Knowledge and Expertise:

   Experienced staff members possess valuable knowledge and expertise that can significantly benefit an organization. Their familiarity with internal systems, operations, and industry-specific best practices enables them to contribute more effectively to the business’s overall success. Retaining these employees allows organizations to tap into their wealth of knowledge, ensuring higher quality in service delivery.

3. Cost Savings:

   The financial implications of high turnover rates in the hospitality industry must be considered. Constantly recruiting and training new employees is not only time-consuming but also costly. Organizations can significantly reduce recruitment and training expenses by focusing on retention, leading to substantial cost savings. These saved resources can be reinvested in employee development programs, improved benefits, or enhanced workplace culture.

4. Employee Morale and Engagement:

   High turnover rates can negatively impact employee morale and engagement. Constantly working with new colleagues can create a sense of instability and disrupt team dynamics. In contrast, a stable workforce fosters a positive work environment, promotes better teamwork, and enhances employee satisfaction. Happy and engaged employees are more likely to stay with a company for an extended period and are motivated to deliver exceptional service.

To effectively shift priorities towards retention, hospitality organizations must implement strategies to engage and retain their employees. Here are some fundamental approaches that operators can adopt:

• Comprehensive Training and Development:

  Offering opportunities for skill development and career advancement demonstrates a commitment to employee growth and fosters loyalty. Organizations should invest in training programs that enhance the skill sets of their staff members and provide a clear path for professional development within the company.

• Competitive Compensation and Benefits:

  Offering competitive wages and benefits packages is essential for attracting and retaining top talent. Organizations must conduct regular market research to ensure their compensation packages align with industry standards. Additionally, providing benefits such as healthcare, retirement plans, and flexible work arrangements can significantly contribute to employee satisfaction and retention.

• Employee Recognition and Appreciation:

  Recognizing and appreciating employee contributions is crucial for building a positive work culture. Implementing recognition programs, conducting regular performance reviews, and celebrating milestones can create a sense of belonging and boost employee morale.

• Work-Life Balance:

  The hospitality industry is known for demanding schedules and long hours. However, promoting work-life balance is becoming increasingly important in retaining employees. Organizations should explore flexible scheduling options, paid time off, and other initiatives that prioritize the well-being of their staff members.

 

The hospitality industry is witnessing a significant shift in priorities from recruitment to retention. By recognizing the benefits of retaining skilled and experienced employees, organizations can improve customer experiences, reduce costs, and foster a positive work environment. By implementing strategies prioritizing employee engagement, development, and well-being, hospitality businesses can create a loyal and dedicated workforce that contributes to long-term success.

Restaurants are constantly seeking innovative ways to optimize their operations and maintain high-quality guest experiences. With the challenges posed by staffing constraints, achieving both efficiency and guest satisfaction can seem like a daunting task. However, operators can utilize valuable strategies to help your restaurant maintain an exceptional guest experience while optimizing productivity even with a smaller team.

• Leverage Technology: Embrace the power of technology to streamline various aspects of your restaurant. Implement a robust point-of-sale (POS) system integrating order-taking, billing, and inventory management. This helps reduce manual errors and saves valuable time for your staff, enabling them to focus more on guest interactions and service.
• Optimize Staff Scheduling: Develop efficient team schedules based on peak hours and historical data. Analyze trends and data to ensure you have the correct number of employees during busy times, avoiding overstaffing during quieter periods. Properly trained and well-informed staff can handle increased workload effectively, providing a smooth guest experience. Consider offering part-time or on-call positions, allowing employees to choose shifts that suit their schedules. This approach can help fill gaps while promoting work-life balance for your staff.
• Multi-Tasking Staff Roles: Train your staff to handle multiple roles when needed. For instance, servers who can also assist with cashier duties during slow hours or bartenders who can lend a hand with food preparation. This cross-training ensures flexibility in managing staffing requirements without compromising service quality.
• Explore Automation: Besides technological advances in ordering and payment systems, consider automating certain back-of-house tasks. Dishwashing machines, food preparation equipment, and inventory management systems can improve efficiency, requiring less staff to manage these tasks.
• Simplified Menu and Streamlined Inventory: Reduce the complexity of your menu by focusing on popular and high-margin items. This simplifies kitchen operations and inventory management, making it easier for a smaller team to handle orders efficiently. Additionally, closely monitor inventory levels to avoid shortages and waste, ensuring a smooth workflow.

• Streamline Processes: Review and optimize restaurant workflows to eliminate inefficiencies. Identify bottlenecks and areas where tasks can be streamlined or automated. From food preparation to serving, finding ways to work smarter can significantly boost overall productivity.
• Online Reservations and Order Ahead: Implement an online reservation system and offer order-ahead options. This service enhances guest convenience and allows your staff to better manage table turnover and preparation time, leading to a more efficient service flow.
• Promote Team Communication: Facilitate seamless communication among your staff with digital tools or messaging platforms. Encourage staff to share ideas, challenges, and suggestions. Real-time updates and instant communication help keep everyone informed, minimizing delays and misunderstandings and ensuring a cohesive team effort.
• Encourage Guest Feedback: Actively seek guest feedback to identify areas for improvement. Engage with reviews and comments, both positive and negative, to understand your restaurant’s strengths and weaknesses. Use this valuable insight to fine-tune your operations continually.
• Invest in Employee Development: Empower your team with ongoing training and skill development. Knowledgeable and confident staff can handle challenging situations more effectively, contributing to improved guest experiences. Allow your team to take ownership of their roles and make independent decisions. Encouraging a sense of responsibility can lead to more effective problem-solving.
• Outsource Non-Core Functions: Consider outsourcing non-core functions, such as cleaning services, marketing, or accounting, to external professionals. This frees up your team’s time to focus on the primary goal of delivering exceptional guest experiences.
• Create a Positive Work Culture: Nurture a positive, supportive work culture that values teamwork and recognizes employee contributions. A motivated and contented staff is more likely to go the extra mile to provide outstanding service.
• Prioritize Guest Engagement: Focus on personalized and attentive guest service to enhance the dining experience. Creating a memorable experience for your patrons makes them more likely to overlook any temporary staffing challenges.
• Solicit Guest Feedback: Encourage guest feedback and actively listen to their suggestions and concerns. Address issues promptly and use feedback to improve your operations, ensuring guest satisfaction remains high continually.
• Measure and Monitor Performance: Regularly assess your restaurant’s performance using key performance indicators (KPIs). Analyze data on guest feedback, table turnover, and staff productivity. Use this data to identify areas for improvement and implement necessary changes.
• Collaborate with Local Culinary Schools: Forge partnerships with culinary schools or vocational training programs to tap into a pool of skilled students or graduates seeking practical experience. Offering internships or apprenticeships can be mutually beneficial.

While staffing challenges are common in the restaurant industry, maintaining guest satisfaction is achievable with resourcefulness and innovation. Embrace flexibility, cross-training, and technology to optimize operations with a smaller team. Encourage a positive work culture, prioritize guest engagement, and remain open to feedback. Adopting these strategies allows your restaurant to navigate staffing challenges while delivering outstanding guest experiences successfully. Adaptability and a guest-centric approach are key to thriving in any staffing situation.

 

By Amanda Stokes – Operations & Training Consultant

The restaurant industry has always been a dynamic and fast-paced environment, but the year 2023 has brought forth unprecedented challenges for restaurant owners and managers in staffing their establishments. A combination of factors, including changes in labor markets, evolving employee expectations, and the aftermath of the global pandemic, have created significant hurdles. However, despite these challenges, there are strategies that can help restaurant owners navigate this difficult landscape and ensure the smooth operation of their restaurants.

The aftermath of the pandemic has seen shifts in the labor market. Many individuals have reconsidered their career choices, leading to increased turnover in the hospitality sector. As a restaurant owner, adapting to these changes is essential, including reevaluating compensation packages, offering competitive wages, and providing enticing benefits. Moreover, creating a positive work environment that prioritizes employee well-being can be crucial in attracting and retaining talent in 2023.

The good news is that despite of the recruiting challenges that the industry is facing, some are figuring out how to staff their restaurants with qualified employees. Here are some best practices when it comes to recruiting top talent:

 

• Employee Referrals

Employee Referrals can be a great tool to attract talented employees to your restaurant. Good employees want to work with other good employees, so they generally recommend others that will be a good fit for your restaurant. Your existing employees will be well suited to share why working at your restaurant is desirable, and what they can expect working there. They will also go out of their way to ensure that their referrals assimilate well into the culture and are welcomed by the team.

 

• Collaborate with Hospitality Schools and Programs

Building strong relationships with hospitality schools and vocational programs can effectively tap into a fresh talent pool. Partnering with these institutions for internships, mentorship programs, or recruitment drives can provide you with access to aspiring professionals eager to make their mark in the industry. Also, the National Restaurant Association has created a program called ProStart as a workforce development program for high school students. This program allows students to gain practical work experience before they graduate. You can contact your local restaurant association and see if any local high schools near you offer this program. Many restaurants that partner with ProStart offer internships that lead to full-time employment once they graduate. This opens up an entirely new stream of talent eager to work and gain industry experience.

 

• Pull Good Employees From Outside of Your Area

This may sound harder than it actually is. Job posting boards, including Indeed, LinkedIn, and Zip Recruiter, work well to recruit within your area. However, Culinary Agents allows you to post jobs and search for candidates across multiple cities. There could be someone looking to relocate to your city, especially if you present your restaurant as a great city to work and live in.

• Have a Solid Hiring Plan

Great restaurant operators are always hiring and looking to upgrade talent before it becomes a 911. Focusing on building a strong team is key in avoiding “Panic Hiring,” which can lead to bringing on the wrong candidates that will ultimately not work out. A proactive approach can make recruiting less stressful and more productive.

 

• Know When It’s Time to Go Pro

Sometimes hiring can be a daunting process for restaurant owners and managers that can take precious time away from the day-to-day business demands. Leveraging the help of a recruiting professional to attract and screen qualified candidates can be a great way to streamline the process. Although this may be more costly than doing it yourself, being short-staffed is also costly and can lead your good employees to burn-out and eventually leave you.

So now that you have a roadmap to hire exceptional talent, it is critical that you keep them happy and engaged. Retaining restaurant workers in 2023 requires a multifaceted approach that considers employee well-being, growth opportunities, and adapting to changing workforce expectations. Restaurant owners and managers can increase employee satisfaction and reduce turnover rates by offering competitive compensation, creating a positive work environment, and embracing technology. In an increasingly competitive labor market, prioritizing employee retention will be vital to building a successful and thriving restaurant.

 

• Create a Positive Work Environment

A positive work culture can make a significant difference in retaining restaurant workers. Employees are looking to their employers to care about their well-being, work-life balance, and mental health. Encourage open communication, feedback, and recognition for a job well done. Organize team-building activities and create a sense of camaraderie amongst the team to improve job satisfaction and decrease turnover.

 

• Leveraging Training and Upskilling Programs

In a challenging labor market, it is essential for restaurant owners to invest in training and upskilling programs for their existing team. By empowering employees with new skills and opportunities for growth, you can improve job satisfaction, increase loyalty, and reduce turnover. Encouraging internal promotions and recognizing achievements can help retain talented staff, fostering a sense of loyalty to your restaurant.

 

• Opportunities for Growth and Advancement

One of the top reasons employees leave their jobs is the need for growth opportunities. In 2023, restaurant owners should focus on providing a clear career path for their team. Establishing a system for promoting from within can help your team to clearly see their potential growth within your company.

 

• Competitive Compensation and Benefits

Offering competitive wages and benefits is foundational in attracting and retaining restaurant workers. As the labor market becomes more competitive, keeping pace with industry standards is essential. Consider conducting regular reviews and offering performance-based incentives to reward employees who go above and beyond their duties. Additionally, comprehensive benefits such as health insurance, retirement plans, paid time off, and meal discounts can significantly enhance employee loyalty.

 

• Embrace Technology

Integrating technology into restaurant operations can enhance employee engagement and retention as the world becomes more tech oriented. Consider adopting digital solutions for managing schedules, training materials, and performance assessments. Additionally, invest in modern POS systems and kitchen equipment to streamline workflows, making employees’ jobs more efficient and rewarding. Eliminating obstacles and pain points for your team not only makes them more efficient but also makes them happier.

 

• Flexibility in Scheduling

Work-life balance has become increasingly important for employees in 2023. To retain restaurant workers, consider implementing flexible scheduling options. Provide employees with the ability to swap shifts, request time off or adopt alternative work arrangements when possible. Accommodating personal commitments can lead to a more engaged team.

• Listen to Employee Feedback

Actively seek feedback from restaurant workers to understand their concerns and ideas for improvement. Conduct regular surveys or hold one-on-one meetings to address their needs and preferences. When employees see their feedback valued and acted upon, they are more likely to feel invested in the success of the restaurant and less inclined to leave for other opportunities.

 

Restaurant staffing challenges in 2023 are undeniable, but owners and managers can overcome these obstacles with the right strategies and a proactive approach. By adapting to the evolving labor market, investing in training, embracing technology, and fostering a positive work environment, restaurants can secure a dedicated and talented team that will contribute to their success even amidst the most challenging times.

Quality control is of utmost importance for a restaurant as it is the foundation upon which culinary excellence and customer satisfaction are built. In the fast-paced and highly competitive hospitality industry, maintaining consistent food quality, impeccable service, and a welcoming ambiance is crucial for establishing a positive reputation and garnering loyal patrons. A 2020 study published in Future Business Journal examined the factors influencing customer satisfaction. The findings indicate that customer satisfaction, food quality, restaurant service quality, and physical environment quality positively influence revisit intention.

By implementing rigorous quality control measures, a restaurant can ensure that every dish served reflects its culinary vision, meets the highest standards of taste and presentation, and leaves a lasting impression on diners, elevating the overall dining experience to new heights.

Maintaining quality control over food is essential for any restaurant to ensure that each dish consistently meets the highest taste, presentation, and safety standards.

 

Here are several effective ways a restaurant owner can achieve and uphold quality control over their food:

Standardized Recipes:

Implementing standardized recipes with precise measurements and cooking techniques is fundamental for consistency. By providing detailed instructions, chefs and kitchen staff can recreate dishes identically each time, avoiding variations in taste and appearance.

 

Supplier Evaluation:

Conduct thorough evaluations of food suppliers to ensure they meet quality standards. Regularly assess the freshness and quality of ingredients delivered to maintain the integrity of the final dishes.

 

Fresh and Seasonal Ingredients:

Emphasize using fresh, seasonal, and locally sourced ingredients whenever possible. Regularly update the menu to align with seasonal produce, ensuring the flavors remain vibrant and the dishes are at their peak.

 

Staff Training and Development:

Invest in comprehensive training for kitchen staff to familiarize them with recipes, cooking techniques, and plating standards. Regular workshops and refresher courses can help reinforce quality control practices.

 

Kitchen Hygiene and Sanitation:

Enforce strict hygiene and sanitation protocols in the kitchen to prevent contamination and ensure food safety. Regular cleaning, sanitizing, and adherence to food safety guidelines are critical.

 

Taste Testing and Feedback:

Conduct regular taste testing sessions among staff members and management to evaluate the quality of dishes. Encourage open communication and feedback to address any concerns and make necessary improvements.

 

Quality Inspection during Preparation:

Supervise food preparation closely to ensure all steps are followed correctly. Chefs or supervisors should regularly inspect the kitchen to check for consistency and proper execution.

Portion Control:

Maintain portion control to ensure each dish is served with the correct amount of ingredients. Consistent portion sizes not only impact the presentation but also maintain cost control.

 

Continuous Menu Assessment:

Regularly assess the menu to identify dishes needing improvement or replacement. Eliminate underperforming dishes and experiment with new ones while adhering to the restaurant’s culinary vision. Consider a menu reengineering consultation from Synergy to develop a well-balanced menu for with craveable, profitable, and operationally sound items.

 

Mystery Diners and Customer Surveys:

Employ mystery diners or conduct customer surveys to obtain unbiased feedback on the dining experience. Use this data to identify areas for improvement and gauge customer satisfaction levels. Here’s a list of survey questions you can use.
 

Empowering Kitchen Staff:

Encourage kitchen staff to take ownership of their work and creativity. Giving them a sense of pride and responsibility for the dishes they prepare can enhance their commitment to maintaining quality.

By implementing these strategies, a restaurant owner can effectively maintain quality control over the food served, consistently ensuring that customers receive exceptional dining experiences. Quality control not only reflects the restaurant’s dedication to excellence and plays a pivotal role in building a loyal customer base and securing long-term success in the competitive restaurant industry. Make sure to add them to your SOPs so your staff has clear guidelines on processes and procedures that enable the highest quality outcomes.

 

Sources:

Fbj.springeropen.com
Surveysparrow.com
openai.com

Safety is of paramount importance in a restaurant setting due to the potential risks associated with handling food, working with kitchen equipment, and serving customers. Maintaining a safe environment protects the well-being of staff and patrons and safeguards the restaurant’s reputation and financial stability.

While many restaurants prioritize safety, certain areas are commonly overlooked, leading to potential hazards for employees and customers.

 

Some of these overlooked safety areas include:

Food Safety:

While it’s a critical aspect, certain restaurants might overlook proper food safety practices, such as maintaining correct food temperatures, preventing cross-contamination, and ensuring the hygiene of food handlers. See our article about preventing a norovirus outbreak.

 

Slip and Trip Hazards:

Restaurants can be prone to spills and cluttered walkways. Failure to promptly clean up spills, maintain dry floors, or keep paths clear of obstacles inside and outside of the restaurant can lead to slip and trip accidents for staff and patrons. It’s essential to identify and control all risks.

Fire Safety:

Restaurants have multiple fire hazards, including open flames, hot cooking surfaces, and electrical equipment. Lack of proper fire safety measures, such as fire extinguishers, sprinkler systems, and employee training, can escalate minor incidents into major emergencies.

 

Chemical Handling and Storage:

Improper training and handling of cleaning chemicals can result in accidents or health issues for employees. Poor storage practices can lead to chemical leaks or contamination.

Electrical Safety:

Overloading electrical outlets, using damaged cords or equipment, or neglecting regular electrical maintenance can result in electrical fires or shocks.

 

Ergonomics:

Repetitive tasks and poor ergonomic design in the kitchen or service areas can lead to injury or even musculoskeletal disorders for employees. Ignoring ergonomics can cause long-term health problems and decreased productivity.

Knife Safety:

Insufficient training in knife handling and improper maintenance of kitchen equipment can result in accidents and injuries.

Proper Equipment Use and Maintenance:

Neglecting regular maintenance of kitchen equipment can lead to malfunctioning appliances or, in extreme cases, fires or other accidents.

To ensure a safe environment, restaurants should regularly assess their operations, conduct safety training for employees, and promptly address any potential hazards. By being proactive about safety measures, restaurant owners can protect their staff and customers from avoidable accidents and promote a positive and secure dining experience.

 

Sources:

Nfpa.org
safeatworca.com
modernrestaurantmanagement.com
openai.com

Restaurant ownership can be a fulfilling career and investment, although it has a poor reputation for longevity, as the statistics have shown. Restaurant failure is not the first thought that comes to mind for a person looking to start a new concept or launch a new venture in the foodservice industry. But this oversight can be fatal to a business. Further, those already operating a restaurant but not keeping up with the competition and failing to assess their operations for efficiency are likely doomed to fail. This is where restaurant consulting comes in.

 

What Do Restaurant Consultants Help With?

Restaurant Operations

Whether you’re looking to grow your independent bar, café or restaurant, or turn around an under-performing venture, your restaurant consultant should provide more than ideas that work well on paper. An expert restaurant consultant understands the challenges faced by management and front-line workers who will develop solutions that work at the unit level. They will review the following aspects of your restaurant operations:

• Menu development and reengineering
• Operations optimization
• Sales optimization
• Team development

 

Concept Innovation

A successful restaurant is more than just making delicious food – it’s about delivering an extraordinary guest experience. If you have a concept and need help bringing your vision to reality, a restaurant consultant can help you fill in the blanks, determining exactly what you need to achieve your dream.

A restaurant consultant would go over the following areas:

• Concept development
• Brand design
• Program development
• Brand positioning
• Marketing

Training & Education

Worrying about high turnover and hiring should not be at the forefront of restaurant owners’ minds. Ongoing training and education are crucial to keep this in check. A restaurant consultant would help with the following:

• Professional Development Courses
• Restaurant Management Training Programs
• Virtual Operations Management

 

Choose Expertise

Synergy has an experienced history spanning over three decades. We are genuinely industry-leading restaurant consultants who deliver practical solutions that help you achieve bottom-line results whether you’re a restaurant chain, independent operator, or entrepreneur. Questions? Check out our FAQ page here or request an initial restaurant consultation now.

Embarking on the journey of starting a restaurant can be an exciting and rewarding endeavor. However, it’s essential to understand that launching a successful restaurant requires careful planning, focus, and financial investment. Our clients often ask us, “How much does it cost to start a restaurant?” That question has no single answer; however, we have outlined the various expenses associated with starting a restaurant to shed light on the key factors that influence the overall investment and critical steps required for developing a focused concept to help minimize expensive mistakes

 

Market Research

Before spending any money, thorough market research is essential. Analyzing the target market, identifying potential customers, and studying competitors will help you make informed decisions throughout the process. This preliminary step will enable you to fine-tune your concept and estimate the overall cost more accurately.

Pre-Opening Budget Considerations

 

Location and Lease

Securing the right location for your restaurant is crucial and can take many months to secure. Factors such as visibility, foot traffic, and demographics play a significant role, as well as parking access, immediate competition, or beneficial concepts in the area that will draw your target to your location. Costs can vary depending on the region and size of the space as well as the desirability of the location. Leasing a commercial property usually involves upfront costs like security deposits, leasehold improvements, common charges and in some instances, a percentage of sales.  It is critical to evaluate all associated costs against the potential for sales as the occupancy cost will be a fixed feature on your P & L, and typically, we like to see occupancy at 6% to 10% of sales.

 

Licenses and Permits

Budgeting for the necessary licenses and permits to comply with local regulations is often overlooked. These include health permits, liquor licenses, signage permits, and more. The costs associated with licenses and permits vary by jurisdiction.

 

Professional Services

In addition to the cost of permits, professional services may be required for legal work, architectural services, construction management, technology installation, and support. You may decide to engage a restaurant consultant to help develop operating standards for your concept or to coach you on developing those standards yourself.  This investment in professional advice may seem like a burden on your pre-opening budget, but expert advice can help you open your doors more quickly and profitably.

Equipment and Furnishings

Outfitting your restaurant with the necessary equipment, such as kitchen appliances, refrigeration units, tables, chairs, and décor, can be a significant expense, especially if a remodel or build-out is required. The cost will depend on square footage, equipment required to execute your menu offering at desired sales volumes, service model, bar requirements, and level of finish that fits your brand (i.e., luxury vs. value).  Oftentimes an estimated dollar amount per square foot can be used to give a reasonable budget line item for your space.

 

Kitchen Setup and Utilities

An efficient kitchen layout that meets health and safety standards is crucial. Costs, including plumbing, electrical work, ventilation systems, and fire safety measures, will need to be included in your pre-opening budget, while ongoing utility costs, such as water, electricity, and gas, will need to be factored into your working profit and loss plan.  Choosing energy-efficient kitchen equipment may increase your initial outlay, but pay for themselves in utility cost savings over the first several years of business.

 

Initial Inventory

Our clients often don’t anticipate the cost of purchasing the initial inventory of ingredients, beverages, and supplies before opening.  This purchase will need to cover pre-opening parties, grand opening events and staff training.  Careful planning and vendor selection can help manage these costs; however, operators can anticipate some waste during the first 30 days while the team gets accustomed to operations, and sales mix information allows for predictive prep planning.

Ongoing Operational Costs

 

Staffing

Employee wages and benefits are recurring costs that must be accounted for in your budget and will be managed by your GM. Hiring and training a skilled workforce, including chefs, cooks, servers, and support staff, will be the responsibility of your manager ,who will set the tone for your culture and will be responsible for the success of your operations, so it is worth investing in a strong manager either through base salary plus bonus for hitting sales targets or through offering educational advancement. Your restaurant’s labor costs are more than just employee wages. They’re comprised of the total dollar amount spent on labor across your operation, including overtime pay, healthcare, if applicable and payroll taxes.  Most restaurants aim to have labor at 28 to 33% of total revenue.

Marketing and Advertising

Promoting your restaurant through various channels, including social media, online listings, and traditional advertising, is essential to attract customers. Allocating a portion of your budget to marketing, often from 3-10% of revenue, depending on your concept and market, can help establish your brand and generate awareness. Third-party platforms like Door Dash have fees that can be off-putting, but their service functions as a marketing tool for your brand, and working with them can be considered a marketing cost.

 

Cost of Goods (COGS)

Sourcing quality ingredients while managing food waste and inventory control is vital for a profitable restaurant, as is managing the cost of packaging and other disposables used in your operations. Keeping track of these costs and optimizing menu pricing can help maintain profitability.  Food cost percentages are an average of the cost of raw materials against revenue, so a 30% food cost means that for every dollar of revenue a restaurant earns, it will have spent between 30 cents to buy the ingredients. This percentage varies widely based on raw ingredients and sales mix as well as whether or not alcohol is served and together with labor will make up your prime costs.

Contingency Fund

We tell our clients to establish a contingency fund to cover unexpected expenses and potential downturns. It acts as a safety net during challenging times, ensuring the continuity of your restaurant’s operations.

 

Starting a restaurant requires serious financial considerations and understanding the costs involved is key to planning and executing a successful venture. While expenses vary greatly depending on location, concept, and scale, thorough research, realistic budgeting, and efficient management will contribute to your restaurant’s long-term success.  We help our clients navigate these decisions to work within their pre-opening budget and establish realistic operating budgets for their concept’s long-term financial and operational viability. If you would like to speak with someone about your start up, we would be happy to discuss your plans during an initial phone conversation at no cost to you or check our resources page for more information on starting your new concept.

 

A restaurant kitchen layout plays a critical role in optimizing workflow, ensuring smooth operations, and enhancing overall efficiency. An inefficient restaurant kitchen layout can result in a variety of adverse outcomes. It can hinder workflow and communication, leading to delays, mistakes, and inefficiency. Additionally, a poorly designed layout may compromise food safety protocols and increase the risk of accidents or injuries in the kitchen.

 

The Importance of an Efficient Commercial Kitchen Layout

An efficient kitchen layout is essential for several reasons. Firstly, it facilitates smooth communication and collaboration among kitchen staff and the front-of-house, minimizing errors and delays. Secondly, it enhances food safety and hygiene by ensuring proper segregation of tasks and efficient workflow. Thirdly, an optimized layout minimizes unnecessary movements, reducing fatigue and increasing productivity. A well-designed layout can significantly impact operational efficiency by carefully considering the needs of the restaurant and the tasks performed in the kitchen

 

Key Considerations for Kitchen Layout Design

 

Workflow: Analyze the flow of operations in the kitchen, from food receiving and storage to food preparation and plating. Arrange different stations logically, minimizing cross-traffic and allowing for a smooth, unidirectional workflow.

 

 

Zoning: Create distinct zones for food preparation, cooking, plating, and cleaning. Each zone should have the necessary equipment, supplies, and ample space for staff to work efficiently without interfering with other areas.

 

Space Optimization: Utilize the available space effectively by considering aisle widths, equipment placement, and staff movement. Choose compact and versatile equipment to maximize usable space.

 

Ergonomics: Prioritize the comfort and safety of kitchen staff by designing workstations at appropriate heights, minimizing reaching and bending, and providing sufficient space for movement and maneuverability.

 

Equipment Placement: Strategically position equipment to minimize unnecessary steps and movements. Consider the sequence of tasks and ensure that essential tools and appliances are within easy reach of each station.

 

Ventilation and Safety: Adequate ventilation systems and fire safety measures are crucial for a restaurant kitchen. Ensure proper placement of exhaust hoods, fire suppression systems, and appropriate ventilation to maintain a safe and comfortable working environment.

 

Storage and Organization: Incorporate sufficient storage space for dry goods, refrigerated items, and cookware. Well-organized storage areas reduce clutter, facilitate inventory management, and enhance food preparation and service efficiency.

 

Optimized Commercial Kitchen Layout Configuration

While there is no one-size-fits-all solution for restaurant kitchen layouts, some standard configurations have proven effective in maximizing efficiency:

 

Straight-Line or Assembly-Line Layout: Great for smaller kitchens or establishments with limited space, this layout arranges stations in a straight line, allowing for a simple and efficient workflow from prep to plating.

 

L-Shaped Layout: Suitable for medium-sized kitchens, this layout provides flexibility by separating the cooking and prep areas. The L-shape facilitates efficient movement between stations and promotes collaboration among staff.

 

U-Shaped Layout: Effective for larger kitchens, this layout places the cooking equipment and prep stations along three walls, forming a U-shape. It enables a logical and efficient workflow with easy access to all areas.

 

Island Layout: Designed for larger kitchens, this open layout features a central island with cooking stations and prep areas surrounding it. It provides ample workspace and promotes collaboration, allowing efficient movement and task segregation.

 

Designing an efficient restaurant kitchen layout is crucial for optimizing productivity and streamlining operations. By considering factors such as workflow, zoning, space optimization, ergonomics, equipment placement, ventilation, safety, and storage, restaurant owners and designers can create a functional and efficient kitchen that enhances the overall performance of the establishment.

 

Sources:

webstaurantstore.com
get.grubhub.com
openai.com