Podcast Summary: Restaurant Strategy – Episode: A Four-Step Framework for Developing Your Team

Introduction

In the episode titled "A Four-Step Framework for Developing Your Team" from the Restaurant Strategy podcast, host Chip Klose delves into effective strategies for managing and developing restaurant staff to enhance profitability and operational efficiency. Released on December 16, 2024, this episode focuses on transforming the way restaurant owners perceive and handle their most significant expense: labor.

Key Topics Discussed

1. Understanding Labor as an Asset
2. The Four-Step Framework for Team Development
   • Hire for It
   • Train for It
   • Model It
   • Coach It
3. Implementing Effective Training Programs
4. Sustaining Long-Term Employee Growth and Retention
5. Practical Interview Techniques to Identify Passionate Candidates
6. Real-Time Coaching and Feedback Mechanisms

1. Understanding Labor as an Asset

Chip Klose emphasizes that labor should not be viewed merely as a cost but as a pivotal asset that can significantly impact a restaurant's profitability. He states:

"Labor represents an incredible opportunity to impact profitability. And yet our labor is not a liability, it is an asset." (00:01)

He underscores the importance of managing employees effectively to harness their potential fully, thereby contributing positively to the restaurant's bottom line.

2. The Four-Step Framework for Team Development

Klose introduces a comprehensive four-step framework designed to optimize employee performance and satisfaction:

a. Hire for It

Hiring the right individuals is foundational. Klose advises looking for candidates who possess the inherent capacity and passion necessary for the hospitality industry. He references Danny Meyer's philosophy of finding "51 percenters," individuals who can be trained technically but already possess the soft skills required, such as warmth and hospitality.

"What I can't do is make them want to care. So I have to find people who care..." (Transcript Excerpt)

Klose suggests focusing interview questions on present and future aspirations rather than past experiences to gauge a candidate's enthusiasm and potential for growth.

b. Train for It

Once the right candidates are hired, comprehensive training is essential. Klose outlines a three-tiered training system:

• Tier One: Equip employees with the basic skills and knowledge needed to perform their roles independently within seven days.
• Tier Two: Develop employees to match the proficiency of the best staff members within 90 days.
• Tier Three: Foster long-term growth to ensure employee retention and sustained excellence over a decade.

"What do you need to do to make sure this person stays with you for the next decade?" (Transcript Excerpt)

c. Model It

Leadership must exemplify the behaviors and standards expected from the team. By actively demonstrating desired actions, managers set clear examples for employees to follow.

"If I want them to focus on teamwork, I have to model teamwork." (Transcript Excerpt)

This hands-on approach ensures that employees understand and internalize the restaurant’s culture and operational standards.

d. Coach It

Continuous coaching and real-time feedback are crucial for ongoing development. Klose highlights the importance of addressing performance during shifts rather than delaying feedback until after, ensuring that corrections are timely and relevant.

"One of the biggest failures that I see in the way that we manage our people is that we don't give them feedback in real time, positive or negative." (Transcript Excerpt)

3. Implementing Effective Training Programs

Klose elaborates on the necessity of structured training programs that evolve with employee progression. By segmenting training into distinct tiers, restaurants can systematically build a competent and motivated workforce.

"Think in terms of that. What do you need to do to get this person ready to go in seven days?" (Transcript Excerpt)

This structured approach ensures that training is not static but adapts to the growing needs of both the employees and the restaurant.

4. Sustaining Long-Term Employee Growth and Retention

Retention hinges on continuous development and recognizing that employee aspirations may change over time. Klose encourages restaurants to invest in the ongoing development of their staff, whether they aim to advance within the organization or excel in their current roles.

"They have to continue to grow even if they want to be in the same position." (Transcript Excerpt)

By offering opportunities for skill enhancement and career progression, restaurants can foster loyalty and reduce turnover rates.

5. Practical Interview Techniques to Identify Passionate Candidates

Klose shares practical strategies for identifying candidates who are genuinely passionate and excited about their roles. He recommends asking prospective employees about their plans for a hypothetical day off with a monetary reward to gauge their interests and enthusiasm.

"The way they answer that tells you a lot about who they are." (Transcript Excerpt)

This technique helps differentiate candidates who are intrinsically motivated from those who may lack the necessary passion for the hospitality industry.

6. Real-Time Coaching and Feedback Mechanisms

Effective coaching involves observing employees during their shifts and providing immediate, constructive feedback. Klose emphasizes that timely feedback reinforces positive behaviors and addresses areas needing improvement before they become ingrained habits.

"If you just heard them at a table, can I just give you some notes from the shift?" (Transcript Excerpt)

By integrating coaching into daily operations, managers can ensure continuous improvement and maintain high service standards.

Conclusion

Chip Klose's four-step framework—Hire for It, Train for It, Model It, and Coach It—provides a robust blueprint for restaurant owners aiming to develop a competent, passionate, and loyal team. By viewing labor as an asset and investing in strategic employee development, restaurants can achieve consistent, predictable returns and foster a thriving, sustainable business environment.

Additionally, Klose highlights the availability of his free "Server Playbook," a valuable resource comprised of ten video scripts designed to enhance server performance and increase revenue. This tool aligns seamlessly with the discussed framework, offering practical tactics to implement the strategies effectively.

For more insights and resources, listeners are encouraged to visit the show notes and access the complimentary server playbooks and membership community offerings.

Notable Quotes

• "Labor represents an incredible opportunity to impact profitability. And yet our labor is not a liability, it is an asset." — Chip Klose (00:01)

• "What I can't do is make them want to care. So I have to find people who care..." — Chip Klose (Transcript Excerpt)

• "If I want them to focus on teamwork, I have to model teamwork." — Chip Klose (Transcript Excerpt)

• "One of the biggest failures that I see in the way that we manage our people is that we don't give them feedback in real time, positive or negative." — Chip Klose (Transcript Excerpt)

• "The way they answer that tells you a lot about who they are." — Chip Klose (Transcript Excerpt)

Resources Mentioned

• Server Playbook: A free resource offering ten video scripts to enhance server performance. Available via the link in the show notes.
• Restaurant Foundations Membership Community: Offers additional support and resources for restaurant owners, with the first month free upon accessing the Server Playbook.

By implementing Chip Klose's strategies, restaurant owners can transform their workforce into a dedicated and high-performing team, ultimately leading to increased profitability and sustained success.