Assess—Design—Implement—Reopen Up until a couple of months ago, restaurants were doing well. Our industry is an important part of the US total economy. There are over 500,000 restaurants employing over 11 million coworkers across the country. It’s now been two months since we started practicing physical distancing, and while we have managed to “flatten the curve,” nothing could have been more disastrous for the restaurant business. If you are a restaurant owner, chances are you are struggling—struggling to pay furloughed co-workers, struggling to pay rent, struggling to try to figure out how you are going to put it all back together. Independent, single unit operators, small and medium multi-unit operators and even big chains like The Cheesecake Factory have notified their landlords that they would be unable to pay rent for the foreseeable future. May will be a crucial month for our industry as governing officials ponder how to safely “reopen” restaurants, easing physical distancing mandates, while operators are dealing with the practicalities of doing so. Restaurant operators are attempting to navigate the unknowns associated with slow re-openings and what this means to their survival. Many questions revolve around capacity and seating—bars and catering require limits on group sizes at tables—difficult to source personal protective equipment needed for staff and diners alike, and how to best clean and sanitize the entire restaurant multiple times throughout the day. There are few firm answers, and even the most seasoned restaurant veterans are finding out, often day by day, what they can and cannot do and whether they will be able to survive reopening under these circumstances. Now we are hearing from various authorities in different states and cities that, under certain circumstances, some restaurants may be allowed to open. Some companies were lucky enough to receive PPP grants and keep people on the payroll, but that will only cover about six weeks of wages. Operators will need to ramp up cash flow quickly. The purpose of this information is to offer direction and provide a framework for best practices for reopenings. The National Restaurant Association, the FDA and local health departments have assembled guidelines to assist operators navigate the murky waters, but there are no guidelines for how to make it all work financially to return to successful operations. Here are our thoughts. Right now, there isn’t any single, definitive way to get your restaurant open. We don’t know how many people will be allowed to enter the restaurant—some jurisdictions recommend or require limiting seating capacity to 25%. With fewer customers, how can the restaurant pay its bills, let alone make a profit? Let’s discuss the possibilities. Review and re-engineer your menu—“skinny” it down… less is more. The 80/20 rule says that 80% of sales come from 20% of the menu items offered. Remove (for now) those slower selling items that require unique inventory SKU’s. Focus on existing Signature menu items that your restaurant is known for. Don’t have any? Work with your chef and cooks to develop unique menu items for your eating establishment that can become your Signature recipes. Make sure they are popular, easy to execute consistently, fast to produce (think table turns when you have reduced seating) and are profitable. Review your inventory—a simple rule of thumb is to only stock those inventory items that are used in at least 5 dishes or account for at least 5% of sales. This takes as much discipline as skinnying down the menu. It’s hard work, but restaurant people are creative and are not afraid of a challenge. Review your kitchen—is it safe? Is there enough room between stations to allow at least 6 feet between co-workers? Do you need to put up plastic shields to separate stations or will protective personal equipment suffice? Check your equipment and procedures. Are there ways you can reduce GET’s (guest experience time) to move more people through the restaurant more quickly, particularly at peak dining times? With reduced capacity, table turns (and take out) this will be critically important. Change and adapt to new cooking styles and equipment—consider modifying your cooking style and techniques to incorporate sous vide, Instant Pot and microwave cooking to reduce kitchen staff, decrease GET’s and still produce great, consistent food every time. Review your dining room—is it possible to maximize seating by adding physical barriers around tables and booths? Protective barriers may enable you to include a couple of extra safe and legal seats. Your guests want to feel safe when coming to your establishment or they won’t come. Review the need for protective gear—in the beginning of this pandemic we were told masks were unnecessary—that was not true. We think that authorities were simply trying to prevent a run on them when they were so critical for medical staff and first responders. Now, there is no question—masks save lives. Wearing a mask helps protect you and others and is recommended by the CDC when in public, especially in enclosed spaces like restaurants. In short order there should be enough PPE (i.e., surgical masks and N95 masks) for every need, but cloth face coverings will suffice for us non-healthcare professionals. Have your uniform designer create a signature design or logo’d restaurant face mask (or a series of them) If designer-y or fun enough, sell them to your guests as another source of revenue. It’s important to wear face masks anytime you will be around other people, especially when ideal social distancing is not possible. A significant number of cases of COVID-19 have been as a result of contact with people who are pre-symptomatic or asymptomatic. It’s a good precautionary measure to wear a face mask to try to trap virus particles that you may be exhaling. Although face masks are not perfect, they do seem to potentially have some effect on risk, so it’s a best practice. It’s important to note that while cloth face coverings are not 100% effective in preventing the transmission of the virus, the physical barrier is believed to slow community transmission, explains the CDC. Communicate with respect, patience, empathy and hospitality—now, more than ever, you will need patience and a calm demeanor to make your staff and guests feel comfortable. Both groups will look to you as an example of how and what to do. You won’t have all the answers, but if you speak honestly and respectfully with your team, and include them in offering up ideas, you won’t feel so alone, and they will feel that they are part of the solution. Even your guests may have suggestions for you. All input should be welcome. Of course, not every exchange will be positive… so take a breath, count to 10 and remain calm as you try to address complaints, concerns and issues that will inevitably arise. Check your uniforms—there was a time in this country when every restaurant co-worker wore a clean uniform every day. More recently, but before the virus crisis, most co-workers just wore their own street pants and maybe a shirt or apron (sometimes not very clean) that they carried in. Now, uniforms must be as clean as the restaurant in order for guests to believe the restaurant is doing all in their power to keep the establishment clean, sanitized and populated by immaculate co-workers. If you can afford it, you might want to consider a change in uniform style or color to signal a change to your co-workers and guests. Most importantly, impress upon your staff, both front and back-of-house, the critical need to start with clean, freshly laundered and ironed uniforms (including face masks) every day. Make the best of technology—consider contactless payment systems, automated ordering systems, mobile ordering apps, frequent website updates. Find innovative ways to reduce the need for personal contact. Stay current—Make sure your establishment meets critical FDA and local health department standards. Renew your memberships in your State and National Restaurant Association so you can stay abreast of all changes and requirements—they are your best source of information. What does the FDA require?
Good sense requires:
Things to consider to safely reopen a restaurant:
Now that you are ready to reopen, it’s time to tell guests all that you’ve done. You may find that some people will immediately come to your restaurant. It will look and be different. You must explain why all these changes have been made. Offer them bounce-back coupons to prompt a return visit/order. Offer to give them recipes of their favorite menu items that did not survive the cut. Some guests will be slow to return… if you have a mailing list contact these people and let them know the changes that have been made to make their visit both safe and enjoyable. Offer them a re-introduction coupon to prompt trial. Some people will be reluctant to visit because of financial consequences from the pandemic—keep them in your thoughts and communications. They may come back as the economy improves. There are only four strategies for building sales; these apply to virtually any retail category:
In summary:
Who is PERSPECTIVES/The Consulting Group, Inc.? Perspectives is an international consulting firm headquartered in Los Angeles. We have been providing comprehensive services to the hospitality industry (upscale, mid-scale and fast food restaurants, hotels, resorts, casinos, theme parks, supermarkets, specialty and convenience stores, airlines, and cruise lines), food manufacturing, processing and distribution companies, for over forty years. Perspectives' team of experts work step-by-step with our clients developing dynamic and innovative products and concepts for the food and hospitality industries. We understand the symbiotic relationship that must exist between internal assets and external variables. That understanding, combined with our customized research and thorough analyses, makes our client’s goals achievable. Our expertise and experience encompass the following disciplines:
#Reopen #Restaurants #NRA #FDA #PerspectivesTheConsultingGroup #NationalRestauratAssociation #Covid-19 #ServSafe
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There I was, sitting on the patio in Malibu overlooking the beautiful blue Pacific watching whales, dolphins, sea lions and pelicans and searching for the inspiration and words to tell a prospective client and his project designer what I do. “I’m a consultant,” I started. I went through the general explanation I usually used… “I’m a strategic planner, a concept developer,” I offered. I always
struggle with this. I much prefer to offer solutions to clients’ problems than to talk about myself. I wanted to say, “didn’t you look us up on the internet before you came?” I guess I should have told him that it was required reading. The truth is, I haven’t even been able to explain to my own family what I have done for a living for the last 35 years. “I help people look at their business in new ways. I stimulate creativity. I design new products. I, I , I, I stammered feebly struggling to find the words. “I am a food architect,” I finally blurted out hoping to put this test to rest. “Oh, I get it,” my client finally said. “A Food Architect! Why didn’t you just say so from the beginning?” Was it the salt air, the sun or the ocean view that finally brought these words to the tip of my tongue? Ultimately, it is a search for the right words to address a potential client’s concern for justifying engaging in our services. Believe me, if I could have found the words earlier, I would have. Here were two well-educated businessmen planning the design and construction of a major multi-million dollar sports arena. The client and his very able team of designers and architects were worrying about the look of the inspirational arena, the seating plans for different events, the colors, logos, private boxes, dressing rooms, training facilities, parking, marketing, advertising, promotion and oh yes, the food—how to feed thousands of people foods they like, rapidly, at a price-point that offers a real value, yet still has the margins to pay for this modern-day Coliseum. “We don’t want food to be just another amenity, but an additional draw to the arena,” my client insisted. I added, “ It must be an extension of the entertainment experience, not just and interruption.” I was told that they had spoken to several foodservice contractors who specialize in sports arena or stadium feeding. Each had come in with their “standard” package, claiming this is what worked in St. Louis, Dallas or Buffalo. No one took into consideration the flavor and tastes of the locale. “I’m not an operating company,” I explained, “but if you want to have something that is a draw and truly unique, you’re going to have to understand the foods that are important to the local community.” “Listen,” I quickly followed, “The anthropology of man can be traced more accurately through the foods and beverages of time rather than just the richness of art, the prose of literature, the rhythm of music or the structure of architecture.” We talked about The Varsity in Atlanta, County Line Barbecue in Austin, Pinks in Los Angeles, street corner cart pretzels in New York City, Farmer John’s famous Dodger Dogs, Vienna Beef’s Chicago Dogs, Geno’s or Pat’s Philly Cheese Steak Sandwiches and the sushi and Starbucks Coffee in Orange County’s arena. “What are the most-visited and beloved restaurants in your area?” I inquired, switching the subject quickly away from what I am to what I do. I continued. “Now all of the contractors you are talking to can do the job—they’re all capable, but you and your team have to be the major part of the planning process. You wouldn’t just turn over all of the architectural planning of the stadium to your building contractor and hope the sight lines were correct and there were adequate restrooms, would you?” “Of course not,” I insisted, I was on a roll. “That’s why you hire architects.” “And,” I continued, not trying to be too pushy, “I am The Food Architect!” We all agreed after just 45 minutes of talking, that I was to be their Food Architect. Over the next couple of days, I thought about the various degrees of success of the projects that we had been associated with over the last several years. There was the government cafeteria that had the potential to served over 4000 building co-workers. Over the last eleven years they had no less than 6 operators with none doing more than about 200 covers a day. We sat on the review boards and heard the same old story about the “canned” programs they were willing to provide. After the last vendor was in and out in less than two months, the client finally agreed to have a proprietary program developed to reflect the tastes of the population of the building. They agreed to hire me as their Food Architect and, working with the foodservice contractor and the government building taskforce, we came up with a plan that is now providing breakfasts and lunches to over 900 people a day at a check average 20% higher than ever before. This plan called for a complete hot breakfast, fresh-baked morning pastries and muffins, lunch entrees with an ethnic twist, Asian (including sushi), Italian (including pizza) Hispanic and American comfort foods, salad, grain and sandwich bars, home-baked pies and cookies, pre-wrapped ice cream novelties and a fantastic catering menu which within the first 2 weeks, was able to attract a 600-person outside event. All thanks to The Food Architect, you ask? Hardly! It was the collaboration of a team of knowledgeable and caring professionals with a passion for food—a client wanting to provide the best food possible for a reasonable price, a design architect who made the environment a most pleasant experience, a foodservice contractor who was keyed on great food and exemplary service and, yes, The Food Architect, who engineered the program and menus and also made sure that everyone delivered in a timely manner. So, the next time that question is posed by a potential client, “Just who are you and what do you do?”, I won’t need the inspiration of the sun, surf and sand. Just four little words say it all… “I’m The Food Architect.” Perspectives has been creating, building and growing value-added businesses for over thirty-five years for both our clients and ourselves. Oddly enough, it is not always a single big idea, but several smaller ideas coupled together that turn out to be the biggest opportunities that can protect you from a big company’s encroachment.
At Choclatique, our own premium chocolate company, we have built a sizeable following and substantial sales in just a short 10 year span. How did we do it? Follow the money… be strategic in your thinking and planning. Understanding where the money is and how to get the money is a good way to start planning a successful business. It is essential to understand what the customer will buy and how to drive the customer purchase. In other words... defining the “battle plan.” Post-audit research to understand whether you are getting the money is crucial in keeping the product lines or services offered relevant. Using the graphic posted at the end of this blog can mean the difference between success and failure. Do your homework… learn everything you can about the business and the products in the segments you are entering. In our case, it was to study what others were doing with chocolate from “bean to bar to piece.” Reading both current and non-current publications was a great insight. Going to food, candy and packaging expos in the US, Europe and Asia was also very informative. Eating lots of chocolate was very rewarding, but also very fattening. Break the paradigm… don’t copy others. Our culinary research and development department, not at all familiar with chocolate, was given no special education or classes in chocolate manufacturing. We struggled on our own. We wanted chocolate confections that were very different from any others in the marketplace, positioning our products in the premium category. If we had sent our R&D chefs to chocolate school in the very beginning we would have developed chocolate just like everyone else was selling. We felt that this was not market-wise. Today, it is amazing to hear from well-established candy and chocolate makers, “You can’t do that with chocolate!” “How are you doing it?” Not being confined to standard processes, we didn’t know all that we “couldn’t” do,” and felt totally unrestrained. This is where … chocolates out of the box comes from. It was our out-of-the-box thinking that created the brand, the name, the products offered, the packaging, the sales approach, the distribution/delivery system and the marketing of the products. Don’t just stay one step ahead… leap-frog over the competition. Try to envision where your competitors might be in the next 5-7 years and get out in front of the market as quickly as you can—years before your competition. In the food and confection businesses (as in all businesses today), “Speed is Life.” Develop “Strategic Alliances” with vendors… suppliers can be your greatest intelligence tool. They can tell you what is going on in the industry and your specific marketplace. They can help you understand the technical aspects of a new product and/or technology. In some cases, they are willing to invest in your dream for the opportunity to secure the business of a sharp and savvy group of strategic-thinking entrepreneurs who are going to be the next Apple, Microsoft, Google or Hershey. Use vendors who are compatible to your style of management and are flexible enough to think out of the box. Test it, before you launch it... all of the planning in the world won’t totally prepare you the reality of live customers. Test all the elements of the sales chain. How does the order-taking chain function… in our case how was our website designed and how did it behave? How did the product pack out… how easy was it to fulfill the order? Did the packaging protect the item… how did the customer receive the product? When the package was received did it look as good when ordered? There are two important “touch points” … when the product is first ordered from the website and when the product is received a day or so later. The customer shouldn’t have to ask, “Why did I order that anyway?” Launch it when you’re ready… not a moment before. Make sure all of the tested elements are ready to go and that you are prepared to fulfill all orders, as you will only get one chance to make a good first impression. If the order comes in and you are not ready, you will be disappointing customers. At Choclatique we understood from day one that we were not just selling chocolate... we were selling memories. Imagine an anniversary or Valentine’s Day gift that doesn’t arrive on time or as expected. How will you be remembered? Understand the sales matrix… there are only four ways to build and increase sales — increase reach... attract new customers; increase frequency... bring customers back more often; increase party size... encourage customers to bring “in” additional family members or friends; and increase check size... sell more items per order or trade up customers to premium products (size or quality). Embrace and harness technology… get ahead of the game. EPKs, Facebook, keywords, and websites are just the tip of the iceberg for keeping up on your customers' interests and communicating with your "community". Create the BUZZZZZ… get the biggest bang for your buck. When looking for an ad or PR agency look for the best that you can afford. And if you can’t afford the best, put it on your credit card. In our case, we wanted agencies who could get the brand the buzz. None of the traditional food or restaurant agencies were attractive to us. We wanted an agency who may have handled a Brittney Spears, Paris Hilton or Kim Kardashian… agencies who were getting their clients in the news on a daily basis to create the buzz. Surround yourself with the best… only work with the best people that you can find. You are looking for out-of-the-box thinkers; not stinkers. Learn to recruit, train, retain and reward only the best. Perspectives continuously conducts research with consumers with the ultimate goal of redefining the American shopping experience. How can today’s restaurateurs and retailers attract and engage the consumer, customer or guest on an emotional level in an effort to overcome consumer’s perceived negativity toward shopping.
To accomplish this task Perspectives developed an approach which includes elements of primary and secondary research along with our proprietary research technique, Benefit Structure Analysis. The research includes both quantitative and qualitative evaluations conducted around the country with cross section of respondents. The primary purpose of this research is to discover which elements of the shopping experience, as well as which store or restaurants are most enjoyable to shoppers in an effort to develop new shopping and dining experiences that are emotionally driven. In general American consumers have learned to hate to shop. This is a far different attitude than has been seen in other countries and cultures around the world. The reasons are much more far-reaching that can be explained by the economy, family time famine, rude service and lack of value as noted by our respondents. They, American Consumers, have simply lost their will to shop. To learn more contact us. There I was, sitting on the patio in Malibu overlooking the beautiful blue Pacific watching whales, dolphins, sea lions and pelicans and searching for the inspiration and words to tell a prospective client and his project designer what I do. “I’m a consultant,” I started. I went through the general explanation I usually used… “I’m a strategic planner, a concept developer,” I offered. I always struggle with this. I much prefer to offer solutions to clients’ problems than to talk about myself.
The truth is, I haven’t even been able to explain to my own family what I have done for a living for the last 35 years. With a background in motion picture and television design and direction, a degree in architecture and PhD in psychology, having graduated from Le Cordon Bleu in Paris, and opening hundreds of my own restaurants, it's sometimes challenging to put into just a few words exactly what I do for my clients. “I help people look at their business in new ways. I stimulate creativity. I design new products. I, I , I," I stammered feebly struggling to find the words. “I am a food architect,” I finally blurted out hoping to put this test to rest. “Oh, I get it,” my client finally said. “A Food Architect! Why didn’t you just say so from the beginning?” Was it the salt air, the sun or the ocean view that finally brought these words to the tip of my tongue? Ultimately, it is a search for the right words to address a potential client’s concern for justifying engaging in our services. Believe me, if I could have found the words earlier, I would have. Here were two well-educated businessmen planning the design and construction of a major multi-million dollar sports arena. The client and his very able team of designers and architects were worrying about the look of the inspirational arena, the seating plans for different events, the colors, logos, private boxes, dressing rooms, training facilities, parking, marketing, advertising, promotion and oh yes, the food—how to feed thousands of people foods they like, rapidly, at a price-point that offers a real value, yet still has the margins to pay for this modern-day Coliseum. “We don’t want food to be just another amenity, but an additional draw to the arena,” my client insisted. I added, “It must be an extension of the entertainment experience, not just and interruption.” I was told that they had spoken to several foodservice contractors who specialize in sports arena or stadium feeding. Each had come in with their “standard” package, claiming this is what worked in St. Louis, Dallas or Buffalo. No one took into consideration the flavor and tastes of the locale. “I’m not an operating company,” I explained, “but if you want to have something that is a draw and truly unique, you’re going to have to understand the foods that are important to the local community.” “Listen,” I quickly followed, “The anthropology of man can be traced more accurately through the foods and beverages of time rather than just the richness of art, the prose of literature, the rhythm of music or the structure of architecture.” We talked about The Varsity in Atlanta, County Line Barbecue in Austin, Pinks in Los Angeles, street corner cart pretzels in New York City, Farmer John’s famous Dodger Dogs, Vienna Beef’s Chicago Dogs, Geno’s or Pat’s Philly Cheese Steak Sandwiches and the sushi and Starbucks Coffee in Orange County’s arena. “What are the most-visited and beloved restaurants in your area?” I inquired, switching the subject quickly away from what I am to what I do. I continued. “Now all of the contractors you are talking to can do the job— they’re all capable, but you and your team have to be the major part of the planning process. You wouldn’t just turn over all of the architectural planning of the stadium to your building contractor and hope the sight lines were correct and there were adequate restrooms, would you? Of course not,” I insisted, I was on a roll. “That’s why you hire architects. And...,” I continued, not trying to be too pushy, “...I am The Food Architect!” We all agreed after just 45 minutes of talking, that I was to be their Food Architect! Over the next couple of days, I thought about the various degrees of success of the projects that we had been associated with over the last several years. There was the government cafeteria that had the potential to served over 4000 building co-workers. Over the last eleven years they had no less than 6 operators with none doing more than about 200 covers a day. We sat on the review boards and heard the same old story about the “canned” programs they were willing to provide. After the last vendor was in and out in less than two months, the client finally agreed to have a proprietary program developed to reflect the tastes of the population of the building. They agreed to hire me as their Food Architect and, working with the foodservice contractor and the government building taskforce, we came up with a plan that is now providing breakfasts and lunches to over 900 people a day at a check average 20% higher than ever before. This plan called for a complete hot breakfast, fresh-baked morning pastries and muffins, lunch entrees with an ethnic twist, Asian (including sushi), Italian (including pizza) Hispanic and American comfort foods, salad, grain and sandwich bars, home-baked pies and cookies, pre-wrapped ice cream novelties and a fantastic catering menu which within the first 2 weeks, was able to attract a 600-person outside event. All thanks to The Food Architect, you ask? Hardly! It was the collaboration of a team of knowledgeable and caring professionals with a passion for food—a client wanting to provide the best food possible for a reasonable price, a design architect who made the environment a most pleasant experience, a foodservice contractor who was keyed on great food and exemplary service and, yes, The Food Architect, who engineered the program and menus and also made sure that everyone delivered in a timely manner. So, the next time that question is posed by a potential client, “Just who are you and what do you do?”, I won’t need the inspiration of the sun, surf and sand. Just four little words say it all… “I’m The Food Architect.” |