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

September 2010
In This Issue
Managing Through Your People
Promotional Opportunities
Quick Links

ServSafeŽ Training en Espaňol

We are offering two Spanish language ServSafeŽ Food Safety Training Classes in September:

Thursday,
September 23 in Boston


and

Wednesday, September 29 in Springfield. 

Both classes will run from 9:00 AM until 5:30 PM, including the exam. 

Registration can be made by calling (413) 774-2786 (English) or (413) 330-9908 (Spanish). Prepayment of $225.00 is required and the textbook, study guide and directions to the site will be sent as soon as payment is received.
 
Our English language classes are posted at our website.


Massachusetts' NEW Food Allergy Awareness Laws

As a reminder, new food allergy requirements go into effect October 1, 2010.

Visit our website for more details and the latest information on the regulations.

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Greetings!

Labor Day marks both the "end" of summer and the "start" of Fall, which for many - students, parents, teachers, and others marks the start of the School Year.  As I talk to operators in the hospitality and service industries and read articles in the business press, one fact that stands out is that in tough economic times it is important that your organization have a solid foundation.  One of my "foundation" courses at Cornell was Introduction to Management and I would like to share a lesson from my first classes in that course.

Eric F. Nusbaum, Ph.D., CHA
Wheelwright Consultants
 (413) 774-2786 (617) 938-8668
Managing Through Your People

I still remember the definition of management given in one of my first college classes in September 1971.
 
Management is the accomplishment of goals and objectives by working with and through people.
 
All those years and that definition remains valid. As simple as it sounds it deserves to be taken apart and analyzed.

  • ". . . the accomplishment of goals and objectives . . ." The purpose of management is to get from a starting point to an endpoint. Without goals managers can't measure progress or evaluate performance. Goals should be reasonably specific, such as a set level of sales or profits or a set percentage of increase or improvement.
  • ". . . by working with and through people." Unless you're a one-person shop, you don't do "everything" yourself. The actual work of attracting, prepping for, serving, and accounting for the revenues and expenses associated taking care of customers is done by your people. Sure you help out in the rush and deal with certain customers yourself, but most often it is the efforts of your people that satisfy your customers and leads to the attainment of your goals and objectives.
 
To accomplish your goals, your people need you to provide them with three different types of information:

  1. What are the goals? They need to know the organization's and their own goals as well as those of their co-workers.
  2. How do I do my job? This should be provided by proper and effective orientation and training. [Last month we discussed the importance of training, we'll talk about the actual training in future months.]
  3. Where are we with respect to our goals? This should be provided on three levels: the organization, the department, and the employee. This information must be provided on a regular basis through memos, in staff meetings and in performance reviews.

Communicating Your Goals Encourages Cooperation
 
Where there is a lack of valid, reliable information, people will tend to believe incorrect information and that can hurt you.
 
Years ago I was surfing the Internet and I came across a blog whose writer assumed that a 35% food cost meant restaurants had an exorbitant profit of 65%. [I found this profit margin on a recent web search.] Shortly thereafter a venture capitalist asked me to review the financial projections for a celebrity Chef's new restaurant. The Chef listed a 35% food cost and a 20% kitchen labor cost and stated, "That leaves 45% profit for us!"
 
Your staff may be think that your profit is in the 20-25% range. They may think that the owners are making a bundle while they do all the work. If so, there is little reason for them to follow standardized recipes, portion properly, control waste, or accurately ring up sales.
 
The accounting firm of Deloitte & Touche, LLP, and others put restaurant profitability in the 4-7% range. Most employees are shocked to learn how little profit a restaurant makes.  When they understand, tend to be more willing to follow standards and to watch out for waste.
 
Accomplishing goals is like trying to eat an elephant: too big a task for one person.  So those who are responsible for reaching the goals of the organization must break them into smaller pieces and delegate responsibility for accomplishment of sub-goals to others. The Chef should be responsible for food cost, kitchen labor, and other direct kitchen expenses. The Service Manger should be responsible for service labor, direct service expenses, and for the average check. Individual servers should have goals for the number of guests served and average check for each meal period. And so on and so forth.
 
Training is a Process, not a Destination

A few years ago our printed newsletter quoted Fred Smith, "Working with people is like washing an elephant with a toothbrush." No matter how good a job you do initially, by the time you've worked your way around the elephant, it needs washing again. New employees need initial training followed up with refresher training for as long as they work in your business. This requires a planned on-going program of refreshment and renewal.
 
If you don't know where you are, you can't know where to go

We have accounting statistics - food cost, labor cost, etc. is so that we know where we are with respect to our goals and industry averages. They allow us to compare our performance in different periods and to our peers. Statistics are benchmarks that chart our progress toward our goals.
 
Our staff members need to have benchmarks as much as we do. They reinforce positive efforts and help our staff to feel proud of their accomplishments. They let staff know how they are performing and "being in the know" is one of primary factors that reduces staff turnover! Pretty much every employee can have a few benchmarks by which they can compare their own performance to their peers. It is possible to confidentially compare a server's average sales for a given meal to the best performing server as well as the "average" server. This provides a benchmark of performance and a starting point from which to progress.
 
All benchmarks need to be provided in a timely and appropriate manner.
 
With this information at hand, you can work with and through your people to reach your goals.  Next month we'll talk more about the training process.

Promotional Opportunities

There are very few business that would not benefit from increased sales. Today's marketing professionals agree that the most effective promotions are those done internally or through the web.  Wheelwright Consultants offers web marketing services, but here are a couple ideas for internal use:
 
September 16 - Mexico Independence Day (NO Cinco de Mayo is NOT Mexico Independence Day) Offer Mexican food and beverages. [Did you know that salsa already outsells ketchup?]
 
September 22 - Anniversary of the Patenting of the Ice Cream Cone by Italian immigrant Italia Marchiony (1904). Offer inexpensive or complimentary ice cream cones to children or all guests.
 
October 1 - National Diversity Day followed by October 11 - National Multicultural Diversity Day. Highlight the diversity of your employees by offering a daily special that recognizes the diversity of your employees by name and country of origin.
 
October 15 - National Grouch Day - yes, it seems that everyone has "their day".  Give grouches something to sweeten their day. Note that National Grouch Day is not to be confused with October 27 - National Cranky Co-worker's Day. You can offer special "attitude adjustment lunches" with a dessert or candy [chocolate presented with the guest check has been shown to increase top percentage] included to sweeten someone's disposition or an after work attitude adjustment party, where allowed by law.
 
We have literally hundreds of holidays and events that you can promote. Many of them can be "surprise" events for those who are in your business, but which will generate good will and "buzz" as people talk about their experience; many can be promoted with a simple poster, table tent, or posting on your website; while others require some planning to pull off successfully and may actually require a couple of repetitions before they work. Contact us for more ideas or promotional assistance.

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 October.

Sincerely,

Eric Nusbaum, CHA, Ph.D.
Wheelwright Consultants