The holidays are coming – though they are likely going to look a little different this year, with fewer work gatherings and indoor celebrations filling your dining room every night. But can you still make it a season of goodwill? If you’re looking at a likely downturn in business this year because of capacity restrictions and virus infection upticks, how can you use this time to ensure that you’re still taking care of the customers who can help you come back stronger in 2021? A recent Business Insider report shared the out-of-the-box ideas that Geoff Tracy, the chef owner of several Washington, D.C. area restaurants, has implemented in recent months. He and his teams took on a number of goodwill projects in the early weeks of the pandemic, including offering free car washes for customers and even calling their top-500 loyalty point members and offering to pick up prescriptions, drop off dry cleaning and give rides to doctor’s appointments. To be sure, these aren’t the kinds of tasks his staff signed up for when they started working with him. But the next time Tracy’s customers are looking for a takeout meal – or their first indoor sit-down meal after the pandemic – how could they consider ordering from anyone else? At a time when celebrating looks different, tap into your service mindset. How can you help brighten the day of your best customers? Maybe it’s with a custom meal package created for a loyal guest isolating at home. Maybe it’s something your restaurant has never done before that could supercharge guest loyalty like never before.
Restaurant businesses have required some radical reinvention in 2020. Everything ranging from menus to service models to hours has required some assessment and adjustment – often with little advance notice. The same may be true of your staffing plan. As we approach the winter months – and the added challenge of flu season – labor is yet another wild card restaurant operators must be able to manage. Now and in the longer term, it will help you to find way to accomplish more (e.g. orders and prep tasks) with less (e.g. workers and kitchen space). If you had to operate with a skeleton crew today, what would it look like? How many staff would you need to accept and prepare delivery orders? What technology or systems could be made more efficient? Has COVID-19 made any new staffing positions necessary or existing positions obsolete? To what extent have you cross-trained staff to help with kitchen, customer service, delivery or even back-office tasks in specific cases? Could you automate any tasks that people currently oversee? Before you need it, fine-tune your crisis management strategy with an updated staffing plan – and test it to determine where it works well and where it needs further adjustment. While this year has been full of challenges, it has also rewarded operators who have been able to pivot to new ways of working. The steps you take now can help you minimize the hurdles you may face in the months ahead.
Even restaurant operators with the best of intentions struggle when it comes to building and maintaining a healthy, supportive employee culture. Will COVID-19 change that? While it may seem like an impossible time for restaurants to invest in better pay and benefits for staff, some believe the current climate will create a bigger opportunity for operators who already have the building blocks of a strong team culture in place – and create yet another obstacle for those who don’t. For instance, restaurants with a strong existing employee culture have not had difficulty rehiring staff – even at a time when many workers are not seeing the benefit of coming off of unemployment. In a Forbes report, owner of the Cincinnati restaurant MashedRoots said, “I think it has become apparent that the way the industry is structured does not create healthy, stable work environments that are able to absorb disruptions and quickly adapt to changes.” As a result, he is changing the way he runs his business and develops staff. Has the pandemic brought to light any aspects of your restaurant culture that, with some adjustments, could fortify your business to survive challenges in the long term?
Longtime restaurant workers learn a wide range of hard and soft skills that can apply widely within the foodservice industry and outside of it – from team leadership to supply chain oversight to customer care. A new AI-based service called Talent Exchange is helping workers impacted by COVID-19 to quickly find jobs that align with their skillset. Backed by McKinsey & Company, the company counts Starbucks, Mondelez International and Pizza Hut among its participating companies. It may be worth considering if you’re an operator helping a longtime team member find a temporary job or if you’re scaling your staff back up. Restaurant Business reports that companies can upload a list of information about their furloughed or laid-off employees, then AI can suggest candidates to hiring businesses based on how well they are likely to match a role. Managers can also keep track of where furloughed employees landed so they can reconnect with them down the line.
Even for an industry used to having to adapt to change, the past several months have forced restaurants to take a crash course in being flexible: Offer curb-side pickup. Adapt your online systems to accommodate curb-side pickups and deliveries. Offer delivery but avoid having to pay steep third-party delivery fees. Create an outdoor dining area. Adapt your indoor dining area. Train your staff on rapidly developing regulations. Adjust your menu to align with people’s changing daily routines and fluctuations in the supply chain. In a Nation’s Restaurant News report, the supervisor of restaurant operations for the south Florida casual dining chain Flanagan’s credits cross-training, as well as data monitoring, with the restaurant’s ability to adapt to the rapidly changing environment in the state. The restaurant has been able to keep many of its employees working by training them to package and deliver food and take phone orders, as well as serve customers arriving for curb-side pickup. As regulations have changed, Flanagan’s has relied on data to help determine how many employees they will need where – if regulations call for their dining room to serve at 25 percent capacity, for example, they can look back at their data and assess how they managed staff and service the last time they were at 25 percent capacity. What are your top tools and practices that help you shift gears when needed?
COVID-19 has turned the employee training rulebook on its head – and it’s a major area of investment among restaurant operators right now. A June survey of senior executives in retail and hospitality found that for 75 percent of respondents, employee training was their highest priority – well above even contactless payment (48 percent). At a time when fluctuations in COVID-19 cases are causing mandates to change at the state and local levels, it’s critical to be able to contact your team (and have them take appropriate precautions) before they even walk through your doors. Can you connect with your staff at a moment’s notice? Before flu season adds to the strains of the past several months, now is the time to assess weaknesses in your communication protocols and ensure everyone on your staff receives alerts about important operational changes promptly – and understands how to adjust to new mandates as needed.
The need for many U.S. states to revert to tightening safety procedures due to rising COVID-19 infection rates has added yet another challenge to the list of obstacles restaurant operators are managing right now: How to manage fluctuating labor needs. At a time when many operators were rehiring – both to meet consumer demand and the requirements of the Paycheck Protection Program – the closure of dining rooms and renewed consumer wariness about the safety of eating out have made it necessary for operators to pull back on hiring once again. It raises the question of how restaurant operators and the industry overall can hang on to their top talent. Your practices around employee engagement and development can help you differentiate yourself. Focus on relationships. The co-owners of the a Baltimore based restaurant group told Restaurant Dive that during the temporary closure of 14 of its 15 restaurants, they called their hourly workers every week to check in, raised money (and matched it) for gift cards for those employees, and held weekly grocery giveaways for workers. Another operator assisted with employee transport via Lyft and also increased wages to demonstrate a willingness to invest in employees in not only good times but also in difficult times too. Of course, providing financial rewards isn’t possible for everyone right now, so finding ways to make the work meaningful continues to be important. In a recent Eater report, a Miami restaurant manager said she is trying to take her current service model – which is basically that of a food fulfillment center that bags food and sends it out the door – and make it a meaningful one for employees who are used to making the in-restaurant experience memorable for guests. How can you make your current restaurant experience a meaningful one for your team?
Whether we’re talking about seniors isolated at home in recent months or businesses trying to navigate the challenges of lockdowns and a strained economy, it’s clearer than ever that our relationships with other people and organisations can provide a lifeline. To support one another, businesses – particularly those with complementary needs – are creatively stretching the traditional boundaries we have grown accustomed to in an effort to keep the economy going. For example, a recent Foodservice Impact Monitor from Technomic said that to protect employees threatened with job cuts, McDonald’s and the grocery store chain Aldi created an employee-sharing partnership in Germany. The agreement allows workers from McDonald’s to sign up for temporary work at Aldi. It helps Aldi to manage the surge in business it has been experiencing and helps McDonald’s to manage its reduced staffing needs at the moment – all while keeping people employed. Looking at your operation and how your need for staff and support likely ebbs and flows, how can you make the best use of the resources you have? You may have expertise, tools, staff or inventory that can benefit other businesses and organizations in your community. Whether you compete directly or not with those organizations, you collectively contribute to what makes your community appealing to consumers. Consider what you can offer and then tap into your local network to pool resources.
In 2019, the annual employee turnover rate in the restaurant industry reached 75 percent – an all-time high. Labor challenges – whether in finding and hiring talent, providing training, allocating resources to pay and reward staff, or some combination of the above – are a key concern for the vast majority of restaurant operators. COVID-19 has added yet another wrinkle to those challenges. If labor is a challenge for you, you might learn something from Susan Reilly-Salgado, a former doctoral student who, more than 20 years ago, wanted to write her dissertation on the successful hospitality culture that restaurateur Danny Meyer had developed. She approached Meyer, agreed to work in his restaurant for six months, and then partnered with him to create the Hospitality Quotient (HQ) – a set of six soft skills they thought a high-performing employee in Meyer’s restaurants should possess. These skills – curiosity, empathy, integrity, kindness, self-awareness and work ethic – comprise just over half of the skills an employee should possess to do their job well, they believed, with the remaining skills being the technical skills needed to do a specific job. Even if your restaurant offers very different food or serves a different clientele, these qualities should translate. An empathetic employee will make an effort to ensure a guest with a severe food allergy receives the correct dish – and will be mindful of their safety as we emerge from the pandemic. A curious employee will take an interest in learning new skills on the job and will likely spark the kinds of new ideas you need to operate successfully in the current environment. As you look to bring employees back on board or even hire new staff, consider it an opportunity to elevate your service. When you screen applicants, what questions can you ask that will bring HQ qualities to the surface – or demonstrate that a person lacks those qualities?
While the news headlines may be gloomy, don’t lose hope – there actually are foodservice operators who are managing to make lemonade from a whole lot of lemons right now. The ones forging a way through these stressful times are getting creative: Wingstop, which is experiencing an uptick in sales right now, is tapping into an oversupply of chicken and offering a free delivery promotion that is driving sales. Farmers Restaurant Group has shifted to a bodega concept that sells meal kits customers can schedule for pickup using OpenTable. Another operation that has nimbly shifted its approach is Front Burner Restaurants, which operates eight restaurant brands in six cities in the southern U.S. At the start of the pandemic, Front Burner had to furlough 4,000 employees, but it quickly shifted gears to create Furlough Kitchen, a non-profit concept that offers one free meal kit a day from its restaurants to hospitality workers who have been furloughed as a result of COVID-19. Through the support of community donations and anticipated federal stimulus funding, the company rehired employees working in its catering operation, as well as some of its hourly employees who take orders, post on social media and carry food out to customers for curbside pickup. Regular customers, suppliers, vendors and others in the community have been generous with donations and other support, and tips are collected into a pool that is distributed on the pay cards of furloughed employees. Furlough Kitchens currently has two locations and expects to open five additional locations from its existing restaurants soon. In a recent Restaurant Business podcast, Front Burner CEO Randy Dewitt said they are currently funded through the next 60 to 90 days. He thinks that finding a way to keep his restaurants open – even if they’re not profiting right now – should help with their eventual recovery. The community goodwill he is building in the meantime won’t hurt.
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