Operating a successful restaurant requires an extensive knowledge of each functional area, how the restaurant should operate relative to principals of those functional areas, and a near obsessive focus on the details of implementing those principals. Michael can review your business's current performance to determine where and how you can improve your efforts.
Over the years, the restaurant business has acquired the reputation of being a high-risk business. This is something of a misconception. The business itself is not high-risk, but, because it appears deceptively simple, many restaurateurs are not aware of the principals of effective restaurant management. Many believe all they need do is simply buy the food, prepare it, serve it, collect the money, clean up, and go home. When a restaurant is properly organized with qualified, trained employees, operating it can be almost that simple. The key is an organized focus on details-the details needed for success in the restaurant business. Through my experience in the restaurant industry, Michael has had the opportunity to see many examples of both successful restaurants and those that were failing. In all cases, the major factors that successful restaurateurs had in common was their attention to the details of planning, organizing, operating, and controlling critical functional aspects of their restaurant. There are no set formulas for success in any business, but a sure-fire formula for failure is not performing the basic tasks of management in an effective manner that allows you to profit while pleasing your customers.
Each restaurant operator, or prospective operator, comes to this business with a unique background, abilities, and the drive to succeed. What many operators lack is someone to help point out the areas where they could be doing a little better. The objective of the Restaurant Operational Analysis is to help you understand how your business is operating relative to generally accepted restaurant practices. Subsequently, through improvements in those areas you should have a more successful and satisfying business. Complete Restaurant Operational Analysis All or the vast majority of the Restaurant Operational Analysis topics would be covered. This analysis would take about five days, including report preparation (two or three days for analysis and two to three days for report preparation and further analysis). The time could be more or less, depending on the amount and complexity of information gathering and client requests.
Custom Restaurant Operational Analysis. The client selects specific areas for analysis. This could be a one to several day contract, including report preparation.
Fast Restaurant Operational Analysis. Primary areas, such as product quality, service quality, cleanliness and sanitation, employee and management morale, food and labor costs, promotions and specific client concerns are covered in one day, including the preparation of a brief report. Generally, the Fast Restaurant Operational Analysis Report would be submitted via email.
Agreement Process for Restaurant Operational Analysis: Step 1: The client and Michael determine which option is most suitable.
Step 2: A retainer is determined unless a special agreement is reached (e.g., a brief visit for a local restaurant), the minimum retainer for Restaurant Operational Analysis is $500, Projected expenses (e.g., travel) are paid up front. Any remaining balance from expenses is returned to client, any additional amounts due would be paid in Step #6 below. Hourly fee for an Restaurant Operational Analysis for up to 25 hours is $40 per hour.
Step 3: Prior to beginning work , the client and Michael review: a) specific topics and areas to be covered (e.g., theft, low morale, productivity, etc.); b) how much detail is required/desired; c) how the information will be gathered (logistics, complexity, time, client participation with gathering information); and
Step 4: Michael implements the Restaurant Operational Analysis. If client or Michael locates issues requiring additional time, the client will never accrue additional charges without notification and discussion.
Step 5: A report of findings is prepared.
Step 6: Any remaining fees and expenses are paid.
Step 7: Based on budget and logistics, the report can be sent via mail, telephonic and presented in person.
Step 8: Upon agreement Michael develops a plan to rectify noted issued and help rectify the noted problems at hand.
Typical Areas for Operation Analysis 1. General performance of management 2. Product quality - Food and beverage 3. Service quality - All services performed by employees for customers 4. Sales maximized by food and beverage servers 5. Effectiveness of controls (costs, scheduling, purchasing, quality, operations, etc.) 6. Equipment - cleanliness, in working order, serves its purpose 7. Labor cost percentage 8. Functional layout of restaurant 9. Cleanliness?internal and external 10. Sanitation 11. Safety 12, Security 13. Cross-utilization 14. Purchasing and inventory systems in use 15. Product specifications written for all recurrent purchases 16. Employee scheduling 17. Written policies covering all tasks 18. Employees? performance according to policies and company standards 19. Enforcement of policies
Human Resources Management 1. Planning of Human Resources functions 2. Values of the firm and how they impact employees 3. Morale and motivation of employees and management (employee and management turnover percentage) 4. Incentive programs (quality and improvement are rewarded) 5. E
mployment laws 6. Job Creation Process (Job Analysis and Design, Job Descriptions, Job Specifications) 7. Employee handbook (Effective introduction to company and general policies) 8. Recruitment efforts (a strong available pool of qualified applicants) 9. Hiring (a process that increases the likelihood of hiring the best employees and managers) 10. Diversity in hiring, promotion, treatment, etc. 11. Orientation and socialization (employees feel comfortable with their knowledge of the company-what the company is trying to achieve) 12. Training (effective procedures for each position, competency before soloing) 13. Performance evaluation/appraisal and discipline policies (positive reinforcement of company policies) 14. Overall performance of human resources activities 15. Management skills (leadership and supervisory ability of managers) 16. Management empowerment, initiative, entrepreneurship 17. Employee empowerment, initiative, entrepreneurship 18. Opportunities for promotions and personal growth within the firm 19. Working conditions conducive to peak performance
Marketing Management Menu mix (type of foods offered and number of items of each food category offered appetizers, entrees, desserts, and so forth) individual product sales, day part sales, sales by day, week, month, and seasonal fluctuations; the type of service and its compatibility with the restaurant's concept, etc.
Atmosphere and furnishings for restaurants a (meets customer's expectations and state of repair):
Interior - dining room, lobby, bar, meeting space, restrooms, hallways, recreational areas, etc.
Exterior - building features and state of repair, adequate parking services, landscaping, etc.
2. Price
Relative perceived value, price value relationship, fairness.
Pricing strategies - how set, and flexibility - ability to raise or lower prices.
3. Place distribution
The physical and geographic location adequacy of location, accessibility, parking, recognized dining area, area stability, traffic generators, and any distribution or marketing channel factors such as delivery or vertical integration (e.g., buying your produce from growers).
4. Promotions
Effectiveness of promotions - advertising, public relations, sales promotions, personal selling, merchandising.
Creativity of promotions:
An analysis of the effectiveness of present and past promotional efforts focused on employees, such as recruiting brochures, employee newsletters, and other employee communications.
5. Marketing Management
Marketing department's general planning efforts.
Research and development of new products, services and other strategies.
Market share compared to primary competitors.
Marketing information system - Keeping track of and utilization of information from internal. records, and the environmental analysis. Ability to determine consumer needs, wants, demands.
Market Position.
Brand loyalty.
Image as a socially responsible member of the community.
Financial 1. General performance of finance/accounting activities (effective and efficient accounting system - daily sales reports, daily costs report, effective monthly statements, etc.) 2. Income statement analysis 3. Sales and revenues 4. Financial strength - applicable financial ratios and liquidity 5. Ability and cost of borrowing 6. Effective cost controls 7. Total cost of sales percentage 8. Food and beverage cost percentage 9. Labor cost percentage 10. Occupancy costs 11. Management's knowledge of cost control 12. Costs compared to industry averages 13. Internal cash control 14. Advisement of CPA. Computerized accounting and management system Administrative Management 1. Performance of each level of management 2. Organizational structure - chart available, technically correct and followed 3. Accurately recognizing internal abilities (strengths and weaknesses) 4. Anticipating environmental trends 5. Setting and achieving appropriate objectives 6. Setting strategies, policies, and action plans 7. Ability to recognize the need to change course 8. Aware of latest technologies and makes use of appropriate technologies 9. Success and growth of business 10. Vision for company, communicating and selling the vision 11. Open channels of communication for all levels of the company 12. Corporate culture that values honesty and is compatible with goals of business 13. Sensitivity to diversity of local community 14. Systematic procedures for decision and Policy-making 15. Top management's leadership ability 16. Management and marketing information system 17. Strategic and functional departmental planning system in place 18. Future Plans