Foodservice Updates is designed to help foodservice operators keep on top of all the industry news and provides tips for keeping business running smooth. We endeavor to provide the latest tips and solutions to keep you in the know.
Wage woes? Build a six-point plan to profit in 2020
For many restaurant operators around the country, 2019 has been the year of the rising wage. As the restaurant consultancy Aaron Allen & Associates reports, 21 states announced increases for 2019, and several states that already had high minimum wage rates saw major rises. California and Massachusetts saw increases above 9 percent and Maine experienced a 10 percent climb. Further increases are coming in 2020. Can your menu prices alone accommodate these sorts of increases in your labor spending? It’s not likely. To help your restaurant thrive amid labor challenges, Aaron Allen suggests operators assemble a plan that involves strategies for menu development, marketing, labor optimization, brand relevance and rejuvenation, technology adoption and even robotics. For instance, crafting a well-developed menu can lift check totals, increase party size and help you identify opportunities for limited-time offers, upsells and new profit lines. Conducting an audit of your brand and what sets it apart, as well as of your past, current and future marketing activity, can help you fine tune your strategy and avoid overspending. Similarly, if you audit how tasks are completed in your restaurant and what you’re spending on the labor required to complete each one, you might identify ways to adjust your service model or uncover tasks that can be eliminated or handled by technology. Speaking of tech, what processes can you make more efficient and guest-friendly through the use of technology? Could a tech-based solution help you minimize ongoing labor challenges? You may not need to take action in every area but knowing where you stand in these aspects of your business can help you pinpoint weaknesses that can lead to financial challenges down the line – and help you identify and build upon your greatest strengths.
Employee wellness = restaurant wellness
“We’re only as good as the people we employ and they’re only as good as their quality of life.” That’s what Mike Shaw of Boston-based Broadway Hospitality Group told Restaurant Business about the organization’s ongoing focus on employee health and wellness as it scales up. But unlike many other sectors, the restaurant industry poses a challenge when it comes to implementing employee wellness programs. The industry’s long hours, high stress and easy access to unhealthy food and drink can set the stage for poor physical and mental health. However, investing in employee wellness can have a multifaceted impact on your ability to operate your business effectively – and if you’re looking for ways to promote employee wellness, you don’t necessarily have to make a major investment. Consider Noodles & Company, which offers reimbursement toward health- and fitness-related items as hiking boots, yoga classes and gym memberships, in addition to offering paid time off. At Broadway Hospitality Group, managers organize group fitness classes and partner with local gyms and speciality fitness studios for discounts. Restaurant Business reports that in a similar vein, employees at the New York City seafood restaurant Seamore’s gather for Wednesday morning runs, yoga and bootcamp-style classes in the restaurant. (Employee morale and retention have increased as a result: The owner of Seamore’s reports that 85 percent of the restaurant’s original staff remain.)
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