Voice of the Restaurant Industry
Responsibilities of turning around a drowning restaurant - I NEED HELP
I've had the opportunity to GM a franchise restaurant that needs a lot of work. I'm starting in about two weeks and feel I need some advice on which direction to go in.
The restaurant has never really been a part of the community out here and never tapped into teams and sports teams. It's a sports bar/restaurant with a very good menu. The owner purchasing the franchise has made it clear that portion control and food cost is way out of control and our main focus will be bringing these numbers back to reality.
I have a few questions for people they may have been in a similar situation stepping into a restaurant that needs some dire help.
1- Staffing: This will be a vital part of which direction this restaurant goes and I feel maybe introducing a new face in the back of house may be a good tactic to showing the staff we're coming here to turn it around. On the other hand I do not want the staff panicking. Should my approach be conservative with a wait and see or maybe bring someone in I can trust?
I do know I will take a month or two to get to know the front of house staff and assess who is there for the right reasons and who is willing to push forward with a new leaf. Old tricks will need to go.
2- Marketing: This company has done no marketing outside of it's restaurant and has a prime area with a lot of traffic daily. I would invite any unique marketing ideas that may bring us a new look.
I already have a team I know I would like to introduce which include a couple of old faces that are willing to come back with the turn around. Management has been a large part of this franchises problem and I need a team that is committed to turning it around. I feel old management might be set in their ways with former ownership and I would like to build success right from the get go. I am hoping for a large turn around within 6 months to a year.
Any thoughts or ideas are appreciated.
The restaurant has never really been a part of the community out here and never tapped into teams and sports teams. It's a sports bar/restaurant with a very good menu. The owner purchasing the franchise has made it clear that portion control and food cost is way out of control and our main focus will be bringing these numbers back to reality.
I have a few questions for people they may have been in a similar situation stepping into a restaurant that needs some dire help.
1- Staffing: This will be a vital part of which direction this restaurant goes and I feel maybe introducing a new face in the back of house may be a good tactic to showing the staff we're coming here to turn it around. On the other hand I do not want the staff panicking. Should my approach be conservative with a wait and see or maybe bring someone in I can trust?
I do know I will take a month or two to get to know the front of house staff and assess who is there for the right reasons and who is willing to push forward with a new leaf. Old tricks will need to go.
2- Marketing: This company has done no marketing outside of it's restaurant and has a prime area with a lot of traffic daily. I would invite any unique marketing ideas that may bring us a new look.
I already have a team I know I would like to introduce which include a couple of old faces that are willing to come back with the turn around. Management has been a large part of this franchises problem and I need a team that is committed to turning it around. I feel old management might be set in their ways with former ownership and I would like to build success right from the get go. I am hoping for a large turn around within 6 months to a year.
Any thoughts or ideas are appreciated.
Replies to This Discussion
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Permalink Reply by Kim on -
Hi Kevin, thanks for asking. Let me give it a shot:
First, since it's a franchise, you don't have any real control over the menu. So, you are stuck with three things you have no control over; (1) Location, (2) Brand and ; (3) Menu. Because of this, I think you are starting with the right first step; Labor. Great BOH and FOH starts with Great leadership. Giving a damn is a key success factor Kevin. I would get everyone rowing in the same direction, as some like to say on this site. Poll the staff. "what would you do if..." is a great way to start gaining respect and getting buy-in. Try forming a private group on FohBoh to get everyone (BOH+FOH) communicating, collaborating and discussing the workplace on line...they are cheap and easy to form. Employee engagement is a key, Kevin.
Then, work up a plan and share it. Set realistic goals and set a time-line for reflection and adjustment. Be creative and passionate. Employees will love that as long as it's focused and progressive.
On marketing...I suggest working up a social media strategy then execute those selected tactics slowly and measure them using online tools. Social media is the least expensive way to crowd source fans and get important feedback. It is not an overnight magic trick, however.
Between collaborating with your staff, making them feel like they are really part of the team and leveraging social media, then focus on the basics. Consistent execution, touching tables and caring. Inspired leadership goes a long way, Kevin. Good luck and let us know how its going.
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Permalink Reply by Justin Reeves on -
If you want to get the community behind you do what I did and started rewarding them for coming to your restaurant. I am a partner and GM of 2 steakhouses and since we launched our rewards program its has been amazing and has exploded. My quest are referring people to my restaurant because they get rewarded to do so. As well as corporations are joining so they can save money.
Drop me a e-mail or call me and I will give you the link that friend of mine sent me. You can play with the numbers to see what it would do for your place and it is also free for the first 60 days.
jreeves@justinssteakhouse.com
864-201-8221
Best Regards
Justin Reeves
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Permalink Reply by a on -
Interesting. I'm curious. You were a partner in which 2 Steakhouses? I see that your email address says Justin's Steakhouse. What exactly was your role and what does "partner" mean? When exactly did you launch this program? How do you know the program "exploded"? Are you still a partner at these Steakhouses? Is the program still in place? How is it working a year later?
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Permalink Reply by Scott Mader on -
Jeff
My team and I have a proven concept that would give you a multi-pronged attack and help you get out of your restaurant and network your community.
Let me share the local store marketing program idea with you and what you can do now to get people in the seats. (By the way- you need to start tomorrow morning- time is not not your ally if the boat is sinking.)
Send me an email and I'll send you 2o tactics you can use right away to get out into your community and build your network. The acres of diamonds are in your backyard.
KIDS KIDS KIDS, the number one demographic in local store marketing today are kids aged 6-12, for one reason- they are relatively easy to market to and they respond by bringing in mom and dad and the teenage sister to eat!
FUNDRAISERS, easy to begin when you know how.
LUNCH BUSINESS, build your lunch business. Delivery drivers, policemen, firemen, medical sales reps, - Go out and give them a reason to come in for lunch.
CHURCHES, have their members bring in their Sunday bulletins and receive 10% OFF.
This is a short list Kevin. Their are a lot of things you can do to empower yourself and go out and grab business.
Email me at scott@intrimarketing.com.
LSM is my profession and I know how to help you at the grassroots level. You need to take action soon.
Here's an online membership that we offer for only 5 Bucks for the first month- http://www.intrimarketing.com/indexphp/?page_id=317
BUT, I'm not trying to sell you anything- just email me and I'll send you 25 tactics that might jump start you.
Peace
Scott
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Non-OperatorPermalink Reply by Jay Johnson on -
Hi Kevin,
In the restaurant biz 30 yrs and self employed since 1987.
If you have serious experience then you need to go in and "feel" the restaurant. You will now immediately what is wrong.
I would not go in ans hake up the entire rest but rather identify the keep motivated positive players. Put a plan in place for marketing.
Food cost/portion control should be addressed by introducing new and elimiating those that do not sell. Review your competions pricing and portions. Also, talk to your vendors and keep them accountable. You may be getting taking advantage of.(probably are)
Keep your vision in front of your people. LEAD them by recognizing the contributors.
Attitude determines altitude every time. Interact with your customers and build your core base.
Need help let me know I am a master at motivation, systems, reduced turnover,and creating buzz.
Dig in and be prepared to be tested and don't forget to have fun.
Jay
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Non-OperatorPermalink Reply by Tony Martinez on -
Kevin,
There are so many variables to consider so here is what I would recommend...if it's a franchise, get with the Franchisor and ask for their help. They're as motivated as anyone as they're skin in the game comes in the form of royalties and brand development. They'll want you to succeed as much as anyone, perhaps more and will be able to put together all of the programs you'll need to succeed.
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Permalink Reply by Mindi Cabe on -
Hi Kevin,
I think you've received sound advice from previous replies, I just wanted to add my .02 and hope that it helps you. If you are seeking innovative marketing ideas I suggest that you look at online opportunities. Social media was mentioned by Kim and I think it's a hot channel right now, but there are other opportunities such as search engine marketing, local search optimization and email marketing that would help you turn the ship around in the six month - year time frame that you are looking at. Chances are if there has been no marketing done outside the restaurant to date then they will have minimal online presence. The good news is that you will be starting from a clean slate (no real mess to clean up); the bad news is that some of these initiatives, especially search engine optimization, may take six months or so to kick in. I wish you the best of luck in your new endeavor; keep us posted as to your progress!
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Non-OperatorPermalink Reply by harleylever on -
Hi Kevin,
With regard to staffing, there will always exist good "lessons learned" by current staff members. I would sit everyone one of them down and ask them "What is going right?" and "What is going wrong?". Some may take some time to open up to you, but once you build rapport, they will eventually open up. Invariably there will be some people that will need to go. However firing people right away and putting everyone on the defensive will not create the type of team you need to succeed.
Another great way to see what is wrong with the restaurant is to go to www.yelp.com and pay particular attention to the negative feedback. There is not better way to pinpoint a problem then to read the negative feedback. Look for trends... slow service, rude server, terrible food. Once you identify a pattern, put the most complained about issues on your priority list.
Food costs and portion control is a function of both inventory and pricing. Make sure food costs are not out of control because your prices are too cheap. I have seen way too many owners complain about their food costs only to find out their prices are the reason for the high costs. Develop a theoretical food cost based on usage and sales. Compare this to the actual food cost and identify the cause of the discrepancies... portion problems, stealing, too many mistakes, too much comping etc. When possible pre-portion items... buffalo wings, chicken tenders, fish sticks, french fries, etc. In the heat of things it is easy to grab too much product. Look for employees eating, not ringing in food, taking home "To Go" containers, etc.
You are a Sports Bar, make sure you have the games people want to see!!! When in doubt ask your patrons what they are looking for.
Marketing... Mindi is absolutely right, the single best marketing tool currently is search engine optimization (SEO). SEO is the process of designing or modifying a website in order to rank highly in search engines for a particular keyword or phrase. For example "Seattle Sports Bar". The goal of this strategy is attract people who are actively searching for the service you want. Actually, you can get much faster results than 6-months. I get clients ranked within days. However to feel the full effect of SEO, it will take up to 6 months for brand new web sites. Once optimized, your site will work for you 24/7 without any further cost and will actually create revenue for you. If you want to expand the site to target more keywords, then reinvest some of that money in expanding the site.
This is not "Pay-per-click" or SEM. If someone tries to sell you pay-per-click RUN!!!
Also develop and email marketing campaign and a Twitter campaign. You can collect email addresses from clients through a form on your website, giveaways, comment cards, and contests. You can set up an email marketing campaign for as little as $15/month and you can send out as many emails as you want. You might want to spend some money to have a graphic designer make a nice looking template for you, but you can use it over and over. Advertise food special, sporting events, and any new marketing effort. Twitter is much the same. Ad a twitter "Follow Me" icon on your website and send out Tweets about events, food specials, etc.
The above marketing strategies leverages the latest in technology, provides some of the best ROI, and can be easily implemented.
If I can clear anything up for you please let me know.
Good luck!!!
Harley
harley@wesprout.com
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Non-OperatorPermalink Reply by Richard Allen on -
What you are asking is not easily answered. In the 70's I spent 5 years traveling around the country turning around hotels and restaurants and several years taking over the financial role.
If you seriously want to discuss a turnaround for this restauant that can be done in the first 60 days, contact me. rallen@1-clk.com
Regards,
Richard Allen
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Permalink Reply by Brandon Berman on -
I created a product that uses advanced Organic Search Engine Optimization techniques to get restaurant listings on to the front page of the major search engines (i.e. Google, Yahoo). None of our techniques are considered "black hat" and they in no way can affect a restaurant's existing websites or reputation. Promotion Surge uses safe and effective techniques to help push our listings to the top of the search engines in front of the eyes of potential customers.
As soon as a listing is purchased from us, we immediately be place it on the front page of Google. We continue to promote listings to push it even higher to the top of the results after a purchase is made. We aren't selling a service that gives results a few months from now. Our service gives results immediately.
Our listings are targeting those customers who don't know what restaurant to go to yet but who know that they want a specific food type in a specific area. These are the customers who don't know about your restaurant but want to come in. By purchasing a listing from us, restaurants can put themselves in front of those customer's eyes and convert them into new customers.
I can do this for $100 or less a month. Feel free to email me at brandon@promotionsurge.com
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Non-OperatorPermalink Reply by Kenneth Hoffman on -
We Can Help you. we have done tis for 100's of companies around the world. Check out our site.
Ken
http;//www.IRHCgroup.com
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