The Secrets to Effective Management - RESTAURANT STRATEGY

Transcript

A (0:00)

Today's episode is for all the operators out there. So maybe you're listening and you are an owner and an operator. But I know there are also a whole bunch of restaurant managers who tune into this show. This one is for you. Tricks to being a more effective manager. Going to help you be better at your job, be more efficient at your job, all of that on today's episode of Restaurant Strategy.

B (0:23)

There's an old saying that goes something like this. You'll only find three kinds of people in the world. Those who see, those who will never see, and those who can see when shown. This is Restaurant Strategy, a podcast with answers for anyone who's looking.

A (0:54)

Hey, everyone, thanks for tuning in. My name is Chip Close. You are listening to Restaurant Strategy. We do two new episodes every single week. Operations on Monday, marketing on Thursday. This is an operation episode. Must be Monday. Just so you know, I wrote a book. It's called the Restaurant Marketing Mindset. I travel all around the world giving talks, keynotes at different conferences, conventions, trade shows. I do these podcast episodes every week. You find me on Instagram, you can find me on Facebook, you find me on TikTok. I also run something called the P3 mastermind. It's a group coaching program geared towards independent restaurant owners and operators who struggle with profitability. So they got a busy place doing a lot of revenue, just not seeing all of that revenue or enough of that revenue drop all the way to the bottom line. If that sounds like you, if you're ready for consistent, predictable 20% profits, then come join the program with over 150 independent operators from all over the country in that group. We have a bunch of different groups, everybody spread between them. But if that sounds like you, we should have a conversation. You start that conversation by setting up time on our calendar restaurantstrategypodcast.com schedule. You'll grab time to chat with either me or someone from my team. We'll get to learn more about you and your restaurant. We'll get to what's going on. You'll get to ask questions. So you better understand what we do and how we help restaurant owners. And let's see if you're a good fit that calls absolutely free. There's no pressure, but it's a great way to get to know each other again. Restaurants strategy podcast.com schedule as always, that link is in the show notes. Now, Torque understands that expectations for food service, sustainability and guest experience are higher than ever. That's why Torque provides products and services that help restaurants meet those demands. With more than 50 years of global for food service expertise. Torque can help you keep up with hygiene standards and food safety guidelines all all over your best ones in every single department. Foh Boh Restrooms Drive thru On and on from Express Nap. The world's favorite napkin dispenser. I love it. You love it. I'm sure you see it. Sure you use it to the multipurpose cleaning towels that clean smarter and high capacity restroom dispensers that reduce runouts. Torque offers better hygiene for better guest and staff experiences. You can check them out and get more tips@torqueusa.com Restaurant that's T O R K U S A.com Restaurant as always, you'll find that link in the show notes now today we are talking about management. We are talking about how we become, how we be better, more effective managers. Right? Here's the thing. This is where this comes from. And I've talked about this a lot. I will continue doing episodes about this because I think we have to refresh our memories on this and I think we have to continually think about this in new ways. Here's the bottom line. Most of us didn't go to school for this. I certainly didn't until much later in my career when I went back to business school. But I didn't go to school to be a restaurant manager. I was just thrust into that. And the people who taught me were doing the best they knew and they were taught by people who knew who did things the best way they know. But when you go to business school, as I did, we have classes in leadership, we have separate classes in management. We talk about principles, how to be more effective, meaning how to connect with our people, how to get higher productivity, how to measure things, how to think about productivity in ways that matter for the business. Bottom line is I think this is an area where we can all get better. So there's six different areas that I want to share with you today. Thing six things that I think if you focus on will help you be a better, more effective, more beloved manager. Beloved by your owners, beloved by your staff. Because you'll be somebody who gets things done. You'll be somebody who's fair to work for. I think you'll be better at your job and ultimately I think you're going to enjoy your job more. It's so much of what my journey has been about is learning how to do my job better and learning how to then teach others how to do their job better. That's really what this episode is all about. Again, so tricks to being a More effective manager. There's six in particular I want to share with you, man. I could probably fill three hour episode all about this, but I'm going to narrow it down to the biggest six. Here we are. In no particular order except this is the way that they came to mind, right? Number one is clarity. You have to get really good, right? Danny Meyer said this in his book Setting the Table. He says this on and on. Really smart people say this, right? Words matter what you say and how you say what you say matters quite a bit. Clarity is a really crucial skill for a great manager to have. You have be really clear on what you need someone to do, how it needs to be done, and then you have to explain to them why it matters, that they do it and that they do it in the way that you've explained, right? This is about making your expectations known, making sure there are no assumptions, right? That everything is clearly articulated. This is everything from when you interview and when you start training, right? Expectations on what this job is about, what's going to be expected of someone, right? The way you train them and the things you teach them and the order you teach them and how you show them how to do it and the way that you explain as to why it matters, that they do it that way, right? All of that matters, right? So that there's no fuzziness, there's nothing vague about what you need them to do so they can't say, well, I didn't, I didn't know I was supposed to be doing that, or I didn't know you wanted it done that way. If you can get really good at that and that doesn't happen overnight, right? But if you can look at all of the things that you do and all the things that you ask of your team and the way that you explain things to your team, if you can just bring clarity to the table, it will make a profound difference in the, that you manage and the way and sort of the output you get from the people who work for you. I promise. The next thing is sort of counterintuitive, but it's curiosity, right? The hard part about being a restaurant manager is everyone comes to you for answers. And for sure, you have to be an expert or more of an expert on the restaurant than let's say the server or the buser or the barista or the bartender. You need to have more of the answers. Hopefully you've been around longer, you've got more experience to draw from and you are better at this job than they are. But nobody expects you to have all the answers. Nobody expects you to be able to read the minds of the people who work for you. So curiosity is a really important skill to bring into the table. My mentor, I've talked about him quite a bit on this show. He did two things really well every single day, right? He was key to say he was, he was, he was keen on saying every single day, I don't know, right? So somebody say, hey, what should I do here and there, he'd say, I don't know. What do you think we should do? Right? I don't know. What are some of our options? That becomes really crucial. The other thing is he would ask questions of people, and he was really key in saying, really keen in saying, my bad, my bad, I screwed that up. What do you think we should do to fix this? Right? Curiosity. When you do that, right? When you do that, it takes all the pressure, number one, takes the pressure off yourself. When you ask questions, other people give answers, and then you can react, you can respond to the answer that's given, right? When you ask three people a question and you get a bunch of responses, you then get to determine which of those three answers sound the smartest. Or maybe none of them. Maybe you still have a better idea, but now you're at least armed. Now you know more about how your people think about certain problems, right? Whether that's the other managers who work for you or the line level employees, the cooks, the servers, the busers, et cetera below you, right? You don't have to have all the answers. And sometimes, sometimes just polling the crowd, sometimes being curious will help you, right? Also being curious keeps you from jumping to conclusions, right? So somebody comes in late and you want to jump down their throat for being late. Again, curiosity injected into that moment will help you be a more effective manager. Because maybe the baby, their babysitter was late, maybe the kid was sick. Maybe they were, you know what, maybe the bus was late and had nothing to do with that. Maybe they can't afford their car and they have to take the bus. Now, maybe their car broke down just by saying, hey, what happened? I think you'll get an answer, right? By bringing empathy to the table, right? And that's. That's sort of folded up into that curiosity word. So clarity and curiosity are the first two things that I think help you be a better manager, right? And every time you think that you're supposed to give an answer, instead inject curiosity. And when it does come then time for you to give an answer or to tell someone what to do, being able to be articulate becomes really crucial. So those two, strangely enough, go hand in hand. The third thing I want to talk about is the importance of measuring everything, right? What gets measured gets managed. And as a manager, your job is to manage, specifically managing the profitability of the restaurant. I talk about this a lot, right? The only thing that matters in a business is profit. And if that sounds cold and callous, I promise you it's not. But great food, great service, warm hospitality, beautiful decor, all of that is in service of the bottom line. And if we can generate a greater bottom line, then we can reinvest those profits into a second location, into a better location, into growing this business in some way, which means we get to feed more people, we get to employ more people. All of that ends up being good. I see profit as. As a, I don't know, as a ratchet for good, because that's exactly what it is. Great food, for great food's sake, who cares? You're going to cook great food for three months, you're going to go out of business because you can't do it sustainably. So, you know, whatever a couple hundred people had, your great food doesn't matter if you can't do it sustainably. So make no mistake, profit is always the goal. And a restaurant manager's job is to manage the profitability of the restaurant. Now, the good part is that being warm and gracious and providing great service and having, you know, intelligent, articulate staff and cooking great food and having beautiful lighting and, well, you know, well designed menus, all of that goes into that and goes into creating a great guest experience. When people have a great experience, they are more apt to come back, obviously, or at least it's obvious to me. Right? But the point, right, It's a means to an end. Great food is not, is not just about great food. Great food is about creating a business that is profitable, that can sustain itself for many, many years to feed more people and employ more people, serve the community in which it's a part. Right? You have to measure everything. You have to understand the metrics that matter for your business. So for me, that's revenue, cogs and labor. Those are the things that. Those are our controllables in business. We control the controllables. As a restaurant manager, you want to know what you have control over? Those are your controllables. You can influence the amount of revenue that's generated in the restaurant tonight, right? There are things you can do. You can manage the amount that we spend on food, our Food cost percentage, our beverage cost percentage. Right? Our cost of goods. That ultimately has a great deal to do with the profitability. And same thing with labor. We get to pick who we hire, how much we pay them, and how much we schedule them. We are in control of our labor percentage, right? To a degree. I know there are other forces that in. There are other forces at play here. But for the most part, revenue, cogs, and labor are our controllables. So as a restaurant manager, I want to measure those areas in particular so that I can better manage them, right? And I want to work with an owner and a management team who understands that we have agency when it comes to those things. If that is not immediately obvious, then I am the one, hopefully, that is pointing it out to you. If that you didn't know that before, you now know that you know that. Now, a restaurant manager's job is to manage the profitability. It's not your job to unlock the doors, turn on the lights, check in the staff, do the bank drop, deal with customer complaints, handle all the voids and comps, and, you know, check everybody out. You know, do the cash out, close the doors, you know, lock it on your way out. All that is stuff that needs to be done while you're there. But what you're there to do is to manage the profitability of the restaurant. And while you're there, we'll have you do all this other stuff as well. So I know it becomes a laundry list of all that other crap you got to do, but you need to make sure to be efficient with that stuff, because what you really need to measure, what you really need to focus on, is how do we drive more revenue? Meaning how do I get more butts in seats? How do I maximize each butt that's in my seat, right? How do I increase check average for every single guest and make sure they're having the best possible time? Because PS the more they order, the more good stuff they have, right? The more they get to experience about our restaurant. That is good. It's good from a customer's perspective, and we drive more revenue. It's good from a business perspective, right? So you can affect revenue. How do you get more people in? How do you make sure that those people are enjoying the very best that we have to offer? Maximizing the spend of each guest in there, right? We can manage our cogs, meaning the products we order, the way we portion them, the way we price them, the amount of waste we have, the systems that are in there to safeguard that. And then our and then our labor. Those are the things that you really need to focus on. All the other stuff has to be 20% of your job. 80% is the most important stuff. 80% of your focus should be on the profitability. And if that wasn't clear before, I hope it's clear now. Clarity, curiosity and measurement. Those are the first three things that will make you a beloved manager, both to your owners and for the staff that you're in charge of below you. Those are the first three. Second three in just a second.

Podcast Summary: Restaurant Strategy – "The Secrets to Effective Management"

Episode Information:

Title: The Secrets to Effective Management
Host: Chip Klose
Release Date: December 2, 2024

Introduction

In the latest episode of Restaurant Strategy, host Chip Klose delves into the essential strategies that restaurant managers can employ to enhance their effectiveness and drive profitability. Aimed at both restaurant owners and managers, the episode provides actionable insights to foster better management practices, ultimately contributing to a more successful and beloved establishment.

Key Strategies for Effective Management

Chip Klose outlines six pivotal areas that restaurant managers should focus on to become more effective and beloved leaders. These strategies not only improve operational efficiency but also create a positive and productive work environment.

Clarity

Clarity is fundamental in management. Chip emphasizes the importance of clearly communicating expectations to staff to eliminate misunderstandings and ensure tasks are performed correctly.

“Clarity is a really crucial skill for a great manager to have. You have to be really clear on what you need someone to do, how it needs to be done, and then you have to explain to them why it matters.”
[04:10]

By setting precise guidelines during training and daily operations, managers can foster an environment where employees understand their roles and responsibilities, leading to higher efficiency and accountability.
Curiosity

Curiosity drives continuous improvement and problem-solving. Chip advises managers to adopt a curious mindset, encouraging them to ask questions and seek input from their team.

“When you do pre-shift meetings, I think you should try to have your staff talking 80% of the time and management speaks 20% of the time.”
[12:45]

This approach not only empowers employees by valuing their input but also helps managers gain diverse perspectives, leading to more informed and effective decision-making.
Measurement

Effective managers measure everything to ensure they are managing the profitability of their restaurant effectively. Chip highlights the importance of tracking key metrics such as revenue, cost of goods sold (COGS), and labor costs.

“What gets measured gets managed. And as a manager, your job is to manage, specifically managing the profitability of the restaurant.”
[07:15]

By focusing on these controllable factors, managers can optimize operations, reduce waste, and enhance overall profitability.
The 1-3-1 Principle

The 1-3-1 Principle is a structured problem-solving approach that Chip recommends for effective management. It involves identifying one problem, proposing three potential solutions, and presenting one recommended action.

“You come up with one problem, you identify three potential solutions, and then you make your one recommendation.”
[11:05]

This method fosters proactive problem-solving, encourages critical thinking, and streamlines decision-making processes within the team.
Systems and Goals

Establishing clear systems and goals is crucial for achieving consistency and scalability in restaurant operations. Chip explains how defining specific goals and the systems to achieve them can lead to repeatable and replicable processes.

“Everything we do in business goes back to systems and goals. Point A is where we're at now. We need to set a goal to solve that problem.”
[09:30]

Implementing standard operating procedures (SOPs) ensures that all team members are aligned and can execute tasks efficiently, paving the way for growth and expansion.
Effective Communication through the 80-20 Rule

Communication within the team should be balanced, with staff contributing the majority of the discussion during meetings. Chip introduces the 80-20 rule, where 80% of the conversation is driven by employees and 20% by management.

“When we arrange a pre-shift meeting, I think there should be some structure… but when we talk about the reservation book, why not have the host talk about it?”
[13:50]

This approach encourages engagement, ensures that important information is shared efficiently, and fosters a collaborative team environment.

Conclusion

Chip Klose concludes the episode by reiterating the significance of these six strategies in transforming managers into more effective and beloved leaders. By prioritizing clarity, curiosity, and measurement, and by implementing structured problem-solving, streamlined systems, and balanced communication, restaurant managers can significantly enhance their leadership capabilities and drive their establishments toward greater profitability.

“Owners will love you more, your staff will appreciate you more. You will be better at your job if you can do this. I can't stress that enough.”
[15:50]

Chip encourages listeners to reach out with questions or for further guidance, emphasizing his commitment to supporting restaurant professionals in their journey toward success.

Takeaways:

Prioritize Clear Communication: Ensure that expectations and responsibilities are explicitly communicated to eliminate confusion and enhance performance.
Cultivate a Curious Mindset: Encourage team members to share ideas and solutions, fostering a collaborative and innovative work environment.
Focus on Key Metrics: Regularly measure and manage revenue, COGS, and labor to maintain and increase profitability.
Implement Structured Problem-Solving: Use the 1-3-1 Principle to address issues methodically and efficiently.
Establish Systems and Goals: Develop and maintain SOPs to ensure consistency and scalability in operations.
Balance Communication: Utilize the 80-20 rule in meetings to promote engagement and effective information sharing.

By integrating these strategies, restaurant managers can enhance their effectiveness, contribute to a positive workplace culture, and drive their businesses toward sustained profitability.