From time to time you will have a guest complaint. Your managers must be trained on how to deal with such encounters. Teach the steps below for dealing with a complaint.

1.   Listen to the guestʼs complaint

2.   To ensure that you understand what the complaint is and demonstrate that you understand, repeat the complaint back to the guest

3.   Apologize for the situation

4.   Acknowledge how the guest feels

5.   Explain what you will do to correct the problem (sometimes a simple apology is enough; other times you must do more to counter a negative experience)

6.   Thank the guest for bringing the problem to your attention

David Scott Peters is a restaurant expert, speaker and founder of TheRestaurantExpert.com. Rather than focus on cheap thrills and destructive restaurant marketing tactics, he specializes in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Learn more tips, tricks and secrets in David’s free weekly e-newsletter, “Instant Action Systems.” Simply sign up to receive the e-newsletter at TheRestaurantExpert.com.

I am a restaurant expert, teaching my SMART systems to independent restaurant owners all over the world. I teach through speaking engagements, training workshops, special seminars and coaching sessions.

My primary business goal is to help independent restaurant owners not only survive, but thrive, in the sea of chain restaurants by focusing on restaurant operations.

So many independent restaurant owners get into business because they have a passion for food, for service and they’ve had a dream of creating the perfect restaurant. For these owners, making money was the side benefit, just so long as they could fulfill their passion for food and interaction with customers.

I help restaurant owners see that running a restaurant is actually about making money, not about winning a popularity contest or giving money to charity. But when it’s done right as a business, the dream can be accomplished as well.

Whatever the reason for opening a restaurant, many independent restaurant owners are missing the fundamental tools they need to run a profitable business.

I’ve seen restaurant owners who love their employees so much, they’ll go into debt or dip into retirement funds to make payroll. They don’t want their employees not to have a job, even though the business is losing money and won’t be around for long-term employment anyway.

So here are my words of wisdom on this subject…

• If you’re an independent restaurant owner, you have a responsibility to run a profitable business.
• You have a responsibility to your employees to offer them gainful employment so they can feed their families.
• You have a responsibility to you, your family and your investors to run a profitable restaurant, because that’s how you pay your bills, keep a roof over your head and create a strong financial future.
• You have a responsibility to your customers, to whom you provide a product and service that fills a need in your community.

With this in mind, put SMART systems in place that make your restaurant run smoothly and profitably. You need to make smart business decisions based on turning a profit.

This simple shift in thinking can put you on a path to restaurant success almost overnight.

How do you see your business?

Does the mere thought of writing a budget make your head spin and your heart beat with anxiety? Do you sit down to work on a budget only to find yourself involved in distracting activities – doing anything but focusing on your financial plan? Well, you’re not alone.

Most independent restaurant owners use their “gut” to determine a budget for their restaurants instead of using real numbers. I’m here to tell you this is just not enough.

Your budget is a guide to success and ultimately towards profitability.

A budget is a document that keeps you headed in the right direction. Sure, you’ll make some missteps that may have to be corrected. Sure, you’ll encounter some unexpected events and expenses that will throw your budget off course. That’s normal. That’s business. Frankly, that’s life.

But without a budget, how do you know what to aim for, what goals to set? How do you know when you’ve exceeded your goals?

A budget will help you recover from unexpected road blocks and plan for potential challenges.

But the number one reason you should create a budget for your business is because it allows you to plan for profitability!

You probably get up every morning with the idea that you want to be profitable. But what kind of roadmap do you have to guide you there?

A budget is your map on the journey to profitability. It determines what you need to reach your goals and how to get you to your destination – successfully.

Once you have a budget, you won’t have to rely on your instincts and guesses anymore.

Erase your fear of budgets today and take control of your restaurants’ financial future.

So with that being said, what scares you about creating a budget?

David Scott Peters is a restaurant expert, speaker and founder of TheRestaurantExpert.com. Rather than focus on cheap thrills and destructive restaurant marketing tactics, he specializes in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Learn more tips, tricks and secrets in David’s free weekly e-newsletter, “Instant Action Systems.” Simply sign up to receive the e-newsletter at TheRestaurantExpert.com.

By David Scott Peters

Your general manager should be your right hand person; the one person you can count on to operate your restaurant the correct way. After all, you can’t be there all the time, but your customers expect to have the same, quality experience on each of their visits. So how do you find the person who sees it the way you do and understands the importance of the systems and processes you’ve put in place?

Let’s be honest, looking for a reliable general manager is an overwhelming task. In the best of situations you can recruit from within, but when that’s not possible, I have some tricks for finding someone who fits.

First, you have to find quality candidates. You can try management recruiters, newspaper ads or personal referrals. But you don’t usually have the luxury of a lot of lead time. To get candidates in a timelier manner, use the Internet. Post your position on places such as Monster.com, Career Builder and Craig’s List. You will get results, i.e., resumes and applications, immediately.

Once you’ve narrowed your candidates down to the top five, come up with a list of questions to ask during each interview. This is a patterned interview format. Consult with your team and find out what they would like to know about each candidate before your meetings.

One of the benefits to going with the patterned interview format and having questions prepared is you will get to evaluate each candidate equally because they all answer the same questions. Now you can compare apples to apples when looking at responses. It can also keep you out of lawsuit territory. You never know when you might be accused of unfair hiring practices by a disgruntled candidate who didn’t get the job. But if everyone answers the same questions, then every candidate is treated equally.

This process should get you to the second interview. Your initial list should now be less than five — those that made you think twice. In fact, you probably find yourself trying to visualize each of them in the position for which you’re hiring.

As you approach the second interview, ask yourself: What do I hope to discover about each candidate during this interview? What questions were left unanswered from the first interview?
Now you want to get the details of what they know and what skills they actually have when it comes to restaurant operations, marketing, dealing with employees and how they might fit in to your restaurant’s unique culture. For this interview you should have a new, preset list of questions.

After you complete the second round of interviews, you should be ready to make a selection, this is when we come down to basic human instincts — your gut.

You want someone who has the skills, experience and feels right. Don’t settle for less. And if you have to, start the whole process over again. Settling will likely only cause you more problems down the road. This is a position that is too important to your restaurant’s success. The person you choose must be the right fit in EVERY way.

Come back next week to read the second portion of this article series where I will discuss tips for extending a job offer to a potential employee.

David Scott Peters is a restaurant expert, speaker and founder of TheRestaurantExpert.com. He specializes in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Learn more tips, tricks and secrets in David’s free weekly e-newsletter, “Instant Action Systems.” Simply sign up to receive the e-newsletter at TheRestaurantExpert.com.

Last week we talked about the importance of the hiring process in your restaurant in Tricks for Hiring in Restaurants – Part 1. This week we will discuss what to do once you have chosen your ideal candidate.

You have found the perfect candidate to manage your restaurant and now you’re ready to make them a job offer. You’ll likely have to answer the following questions for yourself:

Do I offer the requested salary? If they are asking $75,000 and you’re about to offer $45,000, you’re wasting your time. It’s important that when you narrow your job candidates down to the final interview, you take salary into consideration. In this case, the $75,000 candidate would not make the final stage because you know you can’t afford him or her.

On the other hand, if someone is asking for $60,000 and you can only offer $55,000, you’re in range. Remember, it’s like anything in life; if you don’t ask, you’ll never get it. In this case, your candidates might be asking for more than they really think they’ll get just in case they do get it.

Do I tell the candidate about my current management situation, staff, business, etc.? Of course you should! When you offer the position to the job candidate, tell them everything … the good, the bad and the ugly. You want to make sure they enter the job with a clear understanding of what they are walking into. This allows them to make an informed decision when they accept the position.

If you don’t tell the candidate everything up front, when they start working for you and start to discover the ‘skeletons in the closet,’ you may find yourself looking for a new general manager much faster than you imagined.

If you follow these suggestions throughout your hiring process, it will help you turn the nightmare process of hiring in to a dream come true and you will find the perfect fit for your needs.

David Scott Peters is a restaurant expert, speaker and founder of TheRestaurantExpert.com. He specializes in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Learn more tips, tricks and secrets in David’s free weekly e-newsletter, “Instant Action Systems.” Simply sign up to receive the e-newsletter at TheRestaurantExpert.com.

Last week, in the Start the New Year Off Right with Catering and Big Profits – Part 2, we discussed drop off and set-up catering options for your restaurant. In the final installment of this article series, we will explore the concept of full-service catering:

If you want to provide full-service catering at your business, think “feast in a field.” With experience, you should be able to prepare a beautiful meal in the middle of a cow pasture without water or electricity. And you must have key staff that can carry out your clients’ expectations. Don’t even think about full-service catering if you don’t have a detailed and creative implementer. Clients pay a lot for full-service catering and they should be given exactly what they pay for.

It’s not all in the name. Many times a catering menu is more upscale and has more variety than your typical restaurant menu. If your niche is barbecue and the word barbeque is in your name, but you also cater other types of food, you may want to consider changing the name of your catering division. If the name of your company indicates barbeque or Mexican cuisine, the chance of a bride hiring your restaurant for upscale food at her wedding reception is slim.

Don’t panic… punt. You must have a non-kitchen event supervisor who can handle anything. You need a commanding supervisor who can deliver under any circumstance. My personal motto is “don’t panic… punt.” I once had a water main blow 15 minutes before 350 guests were to arrive for a seated dinner reception in a tent. Trust me, we found water for 350 people in record time!

Be prepared. I am not trying to scare you, but think of the worst circumstances for an off-site catering event. You have to be prepared for anything and have the ability to be resourceful. Do not let these issues panic the staff or most importantly, the client.

Checklists, checklists and more checklists. Most of the time special event venues do not have a full kitchen. You are lucky if you have running water. You must have detailed checklists for all of your supplies and materials. Our company has “sets” of event and kitchen supplies in large plastic tubs that are ready to go at a moment’s notice. They go with us to every event so that if the site comes up short, we don’t.

Train versatile staff. I prefer to hire and train staff that can work in the kitchen and on the floor. Cross training is important.

Have the right staff. The character and background of the staff is critical. Background checks must be done on all staff going into someone’s home. Your clients trust that you have hired reputable and safe personnel to be in their residence.

Dress the staff well. A good looking staff goes a long way to impress your guests. Dress them alike, all starched and pressed. Cummerbunds and bow ties are out. Long sleeves are preferred. You may not mind tattoos, but does your client? My company owns the wait staff shirts. They are cleaned and brought to each event. Each staff member is charged per event for the use of the shirt. Don’t let them buy their own and bring it to the event. If you do, you will be disappointed by what some people consider cleaned and ironed.

Pay your staff well. You get what you pay for. We pay $15 – $20 per hour per staff member. Captain is $24 per hour. We have some staff that has been with us for more than 14 years. We charge the client $30 – $33 per hour for each staff member with increased rates per hour during the peak, holiday season.

Visit www.thecateringcoach.com for additional information on how to start a catering revenue stream at your restaurant

Sandy Korem, is the CEO and founder of one of the Top 20 Catering Companies in America, The Festive Kitchen, based out of Dallas, Texas. She was awarded the White House Food Service Medallion in 2008 for outstanding food service to President George W. Bush. Her company, www.thecateringcoach.com, helps restaurateurs take their off-site catering revenue stream to a different level. Korem uses her 20-plus years of catering expertise to offer insight into how to price catered events, the importance of testing and testing again, and how to train your staff so that you don¹don’t have to be at every event. Plus, learn why “charge for it” will become your company’s catering mantra!

Last week, in “Start the New Year Off Right with Catering and Big Profits – Part 1,” we talked about maximizing your catering program selling boxed lunches. This week we will discuss the concept of drop off and/or set-up catering:

Drop off and/or set-up
This catering is really good for your cost of goods sold because you can cater what you know the best and what you are already producing in your restaurant. Generally this is food like lasagna, chicken, spaghetti, etc. For more ideas, go to: www.festivekitchen.com click “Menus” and then click “Corporate Menus.”

Some equipment is required. Clients usually want plates, forks, etc., so charge for it. Hot food also requires chafing dishes. Drop some of yours off or you can use the disposable wire ones.

Knowledgeable staff is critical. They will be asked lots of questions about the food, especially if they set it up. Leave the client detailed serving instructions.

Be prepared. So you don’t forget a critical item, have a checklist and have back-up items in the delivery van.

Profits. I guarantee, you can charge more for this food than if it was served in your restaurant. If you can provide quality food that is hot on arrival, charge the client for it and make some money. That is the key to off-site catering. The client is calling you for food but they are also calling you for CONVENIENCE – so charge for it!

Visit again next week for the final installment in this series, “Start the New Year Off Right with Catering and Big Profits – Part 3” where I will provide information on initiating a Full-service catering program in your business.

Sandy Korem, is the CEO and founder of one of the Top 20 Catering Companies in America, The Festive Kitchen, based out of Dallas, Texas. She was awarded the White House Food Service Medallion in 2008 for outstanding food service to President George W. Bush. Her company, www.thecateringcoach.com, helps restaurateurs take their off-site catering revenue stream to a different level. Korem uses her 20-plus years of catering expertise to offer insight into how to price catered events, the importance of testing and testing again, and how to train your staff so that you don¹don’t have to be at every event. Plus, learn why “charge for it” will become your company’s catering mantra!

A restaurant has downtime every day and if you want to bring in a big profit revenue stream, catering is your answer.

I have owned an off-site catering company for 20 years and in my world there are three categories of off-site catering:
• Boxed lunches
• Drop off and/or set-up
• Full-service

When it comes to any kind of off-site catering, first and foremost, I have to share my cardinal rule: test, test, test. What works in your restaurant may not transport well.

After you follow the cardinal rule of testing everything, apply these pointers for boxed lunches:

Boxed Lunches
Simple concept, but to excel you must make the lunches special. Everyone has a turkey sandwich, but how many have a hand-carved, oven-roasted herb turkey breast presented on specialty bread with a dollop of homemade basil pesto mayo?

Don’t offer too many selections. For boxed lunches and drop-offs, limit the selection just like you do your restaurant menu.

Presentation is key. Don’t use a plain white box. Find a great container where the client can see the food and label the container with your logo.

Timing is crucial. Be late for a corporate office lunch meeting once and you’re history.

Presentation of the staff is monumental. They represent who you are. Fresh clothes with your logo, a knowledgeable delivery person and a great attitude go a long way.

Establish a minimum order or you won’t make money. Our minimum is 25 lunches AND we charge $38 for the delivery too.

Don’t be the cheapest. If you have a great product clients will buy it. Don’t be afraid to charge for it.

Visit again next week when I will provide some tips on developing a drop off and/or set-up catering program in your restaurant in “Start the New Year Off Right with Catering and Big Profits – Part 2.”

Sandy Korem, is the CEO and founder of one of the Top 20 Catering Companies in America, The Festive Kitchen, based out of Dallas, Texas. She was awarded the White House Food Service Medallion in 2008 for outstanding food service to President George W. Bush. Her company, www.thecateringcoach.com, helps restaurateurs take their off-site catering revenue stream to a different level. Korem uses her 20-plus years of catering expertise to offer insight into how to price catered events, the importance of testing and testing again, and how to train your staff so that you don’t have to be at every event. Plus, learn why “charge for it” will become your company’s catering mantra!

As you plan for the year ahead, there are many tools you can use to influence purchasing behavior of customers in your restaurant.

Here are 5 easy things you can do to your menu today to increase profitability:

1. Place high-profit items where your customers are most likely to look first on your menu. There have been studies that show where a customer looks first and then the path they take with their eyes. These studies show eye movement for a one, two and three panel menu.

2. Don’t let your menu be a price list. Price list menus have an item name and then to the far right it lists the price all by itself. Stick that price at the end of the item description without a dollar sign and in a smaller font size. Let your guests read the description and want the item first, rather than shop the price they want to pay and then pick the food they will order.

3. If you have categories, such as appetizers, that have 10 items or more in them, understand that the first, second and last items will sell the most in that category. So place your priority (i.e., most profitable) items in these spots to move them and make the most money.

4. Make an item stand out with a box, highlight, star or picture. These items will sell. If you include photos of specific menu items, be prepared to sell a lot of these options. And make sure you profile high-priced, high-profit items since they are most likely to be ordered!

5. Reduce the overall number of items you have on your menu. Fewer menu items mean less money in inventory sitting on your shelves, less waste, less labor and overall more consistent food. Having too much on your menu can cost you a lot of money.

Take any or all of these actions and you will see results like lowered food costs and increased sales. Heck, maybe you’ll experience both!

David Scott Peters is a restaurant expert, speaker and founder of TheRestaurantExpert.com. He specializes in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Learn more tips, tricks and secrets in David’s free weekly e-newsletter, “Instant Action Systems.” Simply sign up to receive the e-newsletter at TheRestaurantExpert.com.