15 Grove Street, Greenfield, MA  01301 ˇ (413) 774-2786
Eastern Massachusetts Office: (617) 938-8668

August 2010
In This Issue
Training and Turnover
August Promotional Opportunities
Local Food and You
Quick Links




Yogi Berra reportedly said, "You can see a lot just by looking." Or something like that.  Are you looking at what is happening with cupcakes?  What do you see?

 
Cupcake bakeries are springing up all over the United States and doing a phenomenal business. Many are being operated by people with no previous foodservice experience
and almost all are exceeding their owner's wildest sales predictions.
 
Those who stop to analyze the situation tell us that in these tough economic times cupcakes are both a comfort food - reminding the purchaser of those simpler times when a loving family member baked cupcakes for them - and a little, affordable luxury that fits within the budget and diet. Cupcake aficionados state often state that their favorite cupcake shop has signature flavors or decorates their cakes uniquely. And they like the fact that cupcakes are casual and fun to eat.
 
Desserts typically account for less than 12% of sales in most restaurants. Perhaps it is time to look to see if your desserts are:

ˇ  Comfort food and/or affordable luxuries or neither.
ˇ  Right sized as far as the portion.
ˇ  Right priced.
ˇ  Unique.
 
While you're looking, see how your staff offers dessert is it the typical, "Did you save room for dessert?" or do they sell dessert?  If they don't sell dessert, call us. We can bring a customer sales and service program to your restaurant that we are sure will increase your sales of premium beverages, appetizers, and desserts, which will increase your profits while increasing your server's tips. Gosh, another win, win, win: happier guests, happier staff, happier owners and managers!
 

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Greetings!

This weekend Massachusetts will have a "Sales Tax Holiday" which is likely to bring many people out shopping for big ticket items and back-to-school items, so be ready for them.  While we're speaking about back-to-school, we continue to experience and hear horror stories about poor service in restaurants and other businesses. So, perhaps now would be a good time to think about and plan for training your incoming class of employees and giving those returning some refresher classes in customer service, suggestive selling, etc.

We are nearing peak produce time in New England, so we also thought we'd give you some suggestions on how to successfully serve local products.

We hope you find this newsletter useful and look forward to hearing from you.
Training and Turnover

Those of you who have attended our ServSafeŽ Food Safety Programs know how much stock we put in training. We think that every business should take the time to orient their employees to the business and train them in the correct and proper way to do their jobs. We also believe in "cross-training", training employees to perform tasks that they don't usually do, but which interact with their tasks.

In the 15 years we've been in business we have heard many excuses as to why restaurants and other businesses don't train their staffs.  Here are just a few:
  • They don't stay long enough to train!
  • It takes too much time to train them.
  • It costs too much to train them.
  • They did the same job somewhere else and should know how to do it.
  • They can read the manual and if they can't do the job . . .
And our all time favorite:
  • If I train them, they'll just go to work for my competition.
We'd like to turn that last one around:
  • If you don't train them, your customers will go to your competition!
Study after study in all types of businesses shows that one of the main reasons employees leave is because they don't get trained. An untrained employee:

- Is more likely to believe that their job is unimportant and they are expendable.
- Is less likely to follow standard operating procedures.
- Is less likely to know the efficient way to do their job.
- Is less likely to know the safe way to do their job.
- Is more likely to make mistakes that cost the business money.
- Is more likely to make mistakes that result in them having negative interactions with customers, coworkers, and supervisors.
- Is likely to be given fewer hours or shifts where they earn less.
- Is less likely to receive support and assistance from coworkers.
 

All these factors increase the stress on the employee and disconnect the employee from the company, the job, their coworkers, and the customers.  It is easy for stressed, disconnected employees to leave, with little or no notice, and to seek alternate employment, but before they do they'll have damaged the employer's business and reputation with both customers and other employees.


An effective training program can break the cycle of high turnover, low sales, unhappy staff, and unhappy customers and result in increased sales and profits for the business that trains its employees.

To be effective, training has to address the needs of all concerned: the employee, the customer, coworkers, and the business.

An effective training program provides the participant with information and skills that they can use in their jobs or lives every day. It gives them the chance to practice these skills in a "safe" environment and proves them with coaching so they can improve their skills.  Effective training is repeated time after time until the participant becomes both comfortable and proficient at the skill.  Yes, it is time consuming and costly, but the benefits outweigh the costs, let's just look at how training affects turnover costs.

You probably don't have a line on your profit and loss statement for the cost of employee turnover. Actually it would be difficult to list all the costs of loss of productivity, recruiting, hiring, training, etc., etc., etc. on a single line.  We recently found a summary of 15 studies that were done to determine what it costs to turn over an $8.00 an hour employee. The cost ranged from a low of $3,500.00 for truck stop employees to more than $25,000.00 for hourly corrections officers. Averaging the ten lowest reported costs, which included frontline retail and hospitality employees, resulted in an average turnover cost of $5,505.00!  If you turnover 10 employees, you have more than $50,000 in hidden costs. Better hiring, orientation, and training can reduce turnover and reduce this cost.

During our search for the studies just referenced we came across a report that stated that the average US firm experiences a 12% rate of employee turnover.  Take the total number of employees you turned over (whose employment you terminated, or who resigned) last year and divide that by the average number of employees you had on the payroll to find out your turnover percentage.  How did you compare with the national average of 12%?

Most, if not all, hospitality businesses experience higher than "typical" employee turnover rates. While it may not be possible to bring our turnover rates down as low as other businesses, in part because of the seasonality of our business and the fact that many young people start their employment in our industry, it should be possible to improve on your own past performance.  We believe that training your staff is an important factor in reducing staff turnover and its associated cost.

Training is an investment, not an expense.

If you're ready to invest in your business, by investing in your employees, call us to have us develop a customized training program for your business.

 
August Promotional Opportunities

Here are some very special days you can use for promotions in August & September

August 15 - Best Friend's Day a day to celebrate with your best friend.  Share a dessert or . . . ?

August 15 - Birth Anniversary of Julia Child (1912) - America's First Television Chef - "Bon Appetit!"

August 18 - Anniversary of Adoption of the 19th Amendment to the Constitution that gives women the right to vote (1920).

August 25 - National Kiss and Make-up Day - a day to put past slights in the past.

August 29 - More Herbs, Less Salt Day - take the salt shakers out of the kitchen and get creative with herbs.

September 13-14 - Anniversary of the Bombardment of Fort McHenry that inspired the Star Spangled Banner (1814).

September 16 - Mexican Independence Day (1810) - Cinco de Mayo gets the credit, but this is the real deal.

 
If you need recipes or promotional ideas, drop us an email or give us a call. We can help you promote your business using these or other ideas we have for every month of the year that are appropriate for print or electronic media.  We also offer customer service training and suggestive selling programs that can boost your staffs' sales and tips!

Our Sept. - Dec.
ServSafeŽ Food Safety Training Schedule is now online at our website.


The Local Food Movement and You
It seems like one can hardly pick up a newspaper or magazine or turn on the television or radio without hearing about how this restaurant or that chef is purchasing "locally" grown and processed foods. We are proponents of "buy local" campaigns and encourage you to buy locally as well.

Buying locally may not be as simple as buying from a wholesaler who purchases foods or other products from outside your area and buying locally may be more expensive. It may also be more complicated.

In order for the concept to work, it is important that both the end user and the grower/supplier understand some of the aspects of each other's business and be prepared to accommodate each other.  If this sounds a little like some of the objectives of "cross-training" it is.  You know what you need to operate your business, and the local grower or supplier knows their business. It is unlikely that either of you know the other's business.  Here are just two examples of conflicts that could arise if you don't understand each other's businesses:

  • You expect produce to be delivered at a certain time on a certain day.  It doesn't arrive then because due to an impending storm, the farmer is harvesting something else ahead of schedule to prevent it from being damaged by the storm.
  • You are used to getting blemish-free produce of a uniform size and shape, but your local supplier doesn't have enough of the produce or the type of processing and sorting facilities to provide you with blemish-free, totally uniform products.

By sitting down ahead of time and discussing your needs openly, you can come to a mutual understanding as well as coming up with alternative course of action in case . . .

To compensate for a more erratic delivery schedule, perhaps you have a longer lead time in ordering or increase your par levels a little.
To compensate for less uniform product, you train your staff a bit more on being creative with the preparation and presentation of the food.
To compensate for a few minor blemishes, you market the fact that you are using local, pesticide-free produce that tastes incredibly delicious!

If you are open to the needs of your suppliers, you may well find that they have some interesting and exciting products to offer you, products that you did not even know were available. As with anything new, there may be a bit of a learning curve for you, your employees, your customers, and your new partners.  Your new partners may be willing to grow or produce or pack products to your specification, so you get exactly what you want, and they get a new or expanded source of business. By partnering with local suppliers, everyone wins: they do, you do, your customers do; and Mother Nature does as we lower our carbon footprint.

Thank you for reading our newsletter. We hope you found it interesting and informative. Our next newsletter will have more news and information. Look for it in your inbox in September.

Sincerely,

Eric Nusbaum, CHA, Ph.D.
Wheelwright Consultants