Cost Containment versus Responsible Management

In this topsy turvy world of economic disasters and tragedies, I am noticing what can only be described as "pushing the panic button" happening more and more frequently. What I am referring to is this: in a season of the hospitality industry that is traditionally slow, in the wake of the media's proclaimation of economic doom, we are suddenly making decisions that could potentially harm our business for years to come. Changing the units operating hours, cutting back the staffing to bare essential levels, and releasing "superflous" management staff (human resources, revenue management) is the true recipe for disaster in the long term, when the effects of these actions will surely be felt.

In the hospitality service, we are selling not only food, but the guarantee of excellent, even at times, opulant, service. When a guest arrives at four oclock in the afternoon for a nice hot cup of triple latte with half low fat half soy and a shot of french vanilla and a half shot of caramel syrup, the odds he won't care why he can't get it, he will only recall, with a rightous indiginity, that he wasn't able to get it. He will remember this experience and with 99% probability seek to fulfill his craving elsewhere the next time he is in the area. What this means to the business is not only loss in revenue that day, but the loss of potential revenue that that guest represents. When you add up the numbers, without even factoring in the power of ten (the average amount of potential guests that he will communicate his displeasure to), the results are staggering.

Responsible management is what I have chosen to accomplish in this time when my superiors are begging me to cut operating hours and lay off staff. I am paying close attention to sales versus labor versus cost. I am using word of mouth as an effective adverstising tool. With my chef, we are compiling new and exciting dishes out of the supplies we keep on hand, instead of opting for the more exotic fare that we are used to serving. I am focusing on customer service, excellent customer service, even opulent customer service (we have a guest the I personally served a four course french dinner to, he was escatic) . Through attention to these details, it is my hope that by not only keeping to the bar, but upping it, we will ppresever, and when this "economic disaster" turns itself around, as it will, our guests will recall our loyalty to them and respond in kind.
Until then....


Views: 1

Tags: containment, cost, customer, cuts, darnell, economy, labor, management, responsible, service


You need to be a member of FohBoh to add comments!

Join FohBoh

Comment by Paul Paz on January 3, 2009 at 10:44pm
Hi Darnell...
Thought my latest post would apply to your discussion here!
It's about an owner turning off the heat in the dead of winter because one employee forgot to tunn off the furnace when closing the restuarant. See the link below.
Happy New Year!

PR Nightmares




Social Wine Club for Craft Wineries


Kids LiveWell atwitter over Twitter party

In its continuing effort to promote more nutritious and flavorful children's menu options, the NRA will hold a Twitter party  -More

Starbucks could become top on-premise wine seller in U.S.

Starbucks is planning to slowly expand its evening sales of wine, beer and small plates to thousands of selected stores throu -More

The evolving nature of snacks

Snacks have shifted from an after-school treat to a meal alternative as meal times become more fragmented.  -More


Posting a job or finding a job starts here at FohBoh. Call us about special $25 posting packages to syndicate across all major jobs boards.

National News

Wahlburgers Announces Expansion Plans Including Franchise Agreement in Philadelphia

Wahlburgers has signed a franchise agreement with Hingham Associates, LLC that will bring five Wahlburgers to the metropolitan Philadelphia area over the next several years. The franchise group is actively looking at sites and is targeting a late 2014-early 2015 opening for its first restaurant.

Chipotle Mexican Grill, Inc. First Quarter 2014 Revenue Up 24.4%

Comparable restaurant sales increased 13.4% - Restaurant level operating margin was 25.9%, a decrease of 40 basis points

Jamba Juice Announces Grand Opening of New St. Louis, MO Location

Jamba Juice Company announced the brand’s continued expansion in the St. Louis market with the opening of a Jamba Juice® store at 11477 Olive Blvd. on April 16, 2014.

Expert in Real Estate Analytics Joins Luna Grill

Luna Grill, the San Diego-based Mediterranean restaurant chain, is welcoming retail real estate industry veteran Greg Thorburn to its leadership team. Thorburn has been brought on board to fill the newly created position of Vice-President of Real Estate.

Rita's Italian Ice Awards Area Development Agreement for Kansas

Rita's Italian Ice has awarded franchise and area development agreements for Kansas and the Kansas City area, which extends to the Missouri side of the city, to franchisees and local residents Jay Miller, Jeff Miller and Pat Reilly.


If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.


TED: Matthew Carter: My life in typefaces - Matthew Carter (2014)

Pick up a book, magazine or screen, and more than likely you'll come across some typography designed by Matthew Carter. In this charming talk, the man behind typefaces such as Verdana, Georgia and Bell Centennial (designed just for phone books -- remember them?), takes us on a spin through a career focused on the very last pixel of each letter of a font.

TED: Jeremy Kasdin: The flower-shaped starshade that might help us detect Earth-like planets - Jeremy Kasdin (2014)

Astronomers believe that every star in the galaxy has a planet, one fifth of which might harbor life. Only we haven't seen any of them -- yet. Jeremy Kasdin and his team are looking to change that with the design and engineering of an extraordinary piece of equipment: a flower petal-shaped "starshade" that allows a telescope to photograph planets from 50,000 kilometers away. It is, he says, the "coolest possible science."

TED: Norman Spack: How I help transgender teens become who they want to be - Norman Spack (2013)

Puberty is an awkward time for just about everybody, but for transgender teens it can be a nightmare, as they grow overnight into bodies they aren't comfortable with. In a heartfelt talk, endocrinologist Norman Spack tells a personal story of how he became one of the few doctors in the US to treat minors with hormone replacement therapy. By staving off the effects of puberty, Spack gives trans teens the time they need. (Filmed at TEDxBeaconStreet.)

TED: Jennifer Senior: For parents, happiness is a very high bar - Jennifer Senior (2014)

The parenting section of the bookstore is overwhelming—it's "a giant, candy-colored monument to our collective panic," as writer Jennifer Senior puts it. Why is parenthood filled with so much anxiety? Because the goal of modern, middle-class parents—to raise happy children—is so elusive. In this honest talk, she offers some kinder and more achievable aims.

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service