• Apr 9

The Profit Tool You’re Already Paying For

  • Small Plate Hospitality

If you’ve been pulling your hair out trying to squeeze a few more pennies from shrinking food cost percentages, I’ve got good news. There’s something you already possess that can lead to a five to ten percent increase in profits almost immediately.

As a restaurant consultant, I’m engaged in a lot of online chatter about the success and failure of restaurants, and most of the discussion lands on food and labor costs. It’s true that every profitable establishment must operate with clear standards of measurement when it comes to profit and loss.

If you’ve been pulling your hair out trying to squeeze a few more pennies from shrinking food cost percentages, I’ve got good news. There’s something you already possess that can lead to a five to ten percent increase in profits almost immediately.

It’s your front of house staff.

If your first response is, “Those guys? They have terrible attitudes and a poor work ethic,” then here’s even better news: the one thing standing between you and higher profits is you, and that also means you’re in full control of changing it.

I often see complaints in industry forums about employees with bad attitudes, but the truth is that employee performance is built by managers. Yes, there will always be a few people who can’t pull it together even with great leadership, but the vast majority of the people already working for you are capable of transforming your business from a source of stress into a profitable and enjoyable operation almost overnight.

All you need to do is create an environment where they can succeed. My consulting work usually guides operators through this transformation over ninety days, but today I want to share three things you can implement right now that will lead to a stronger staff and higher sales.

First, create clear systems.

Clear systems lead to clear expectations, and clear expectations lead to higher performance. This does not require a binder full of procedures that no one reads, and it does not require a complete overhaul of your operation. It can be as simple as a few written service standards posted in the server station, or a short checklist for opening and closing duties. It can even be a one page guide that defines what great service looks like in your restaurant.

When people know what success looks like, they can aim for it, but when they do not, they guess. Guessing leads to inconsistency, and inconsistency leads to frustrated guests and frustrated managers. A simple system gives your team a map, and without a map, even the most motivated person struggles to reach the destination.

Second, commit to regular training.

I see this pattern all the time. A manager spends two or three shifts pouring information into a new hire, and when that person struggles a month later, the manager feels confused and disappointed. You did tell them everything, but you told them everything too fast and only once.

Training should never be a one time event, and it should not live only in onboarding. It should be a steady rhythm. Five minutes in lineup is often enough. Use that time to reinforce one service standard, and share one sales focus, and teach one small detail about a menu item or a beverage.

When training becomes part of the culture, your team feels supported instead of judged. Knowledge builds confidence, and confidence builds pride, and pride shows up in the guest experience. Guests feel it, so they visit for often longer and they spend more.

Third, lead with respect.

Nothing kills morale faster than a lack of respect from management, and no amount of systems or training can fix a culture where people feel small, blamed, or ignored.

Respect shows up in simple ways. Address problems in private, and never in front of guests or coworkers. Praise effort as often as you correct mistakes, and stand up for your team when a guest is unfair. Listen when someone tells you they’re struggling.

When people feel respected, they care more, and when they care more, they try harder. When they try harder, your service improves and your turnover drops. Retention alone can save thousands of dollars a year, and the bonus is that long term staff almost always outsell new ones.

These are just three small shifts you can make that cost nothing and can change everything.

When you build a team that feels clear, trained, and respected, the results show up in your profits. They also show up in your stress level, your guest feedback, and your ability to enjoy running your restaurant again.

Small Plate Hospitality helps busy restaurant owners build a business they can love... and leave. Check out our online training here.