Sunday, August 24, 2014
WHY RESTAURANTS DIE? BY RAJNISH CHOPRA
Why Restaurants die?
The latest fad I observe in our business scenario is to be part of RESTAURANT business !
The path which lot of them undertake but only few survive !
I always joke with my buddies , that if 10 new outlets open, 15 close.
The picture looks bright from outside but there are lot of shades of grey as you start venturing into it.
Today we will discuss some critical issues which are responsible for death of an F&B outlet.
Design a product concept before you finalize on space and production and dining designs.
Lot of us make hasty decisions, and we first finalize a space and even go to extent of designing our kitchens and then we think ….What should I sell?
It has to be other way around. Start with segment we want to cater to Product to Production Equipment leading to Production Design and subesequently restaurant seating space and logistics of service.
2.PROJECT CAPITAL AND WORKING CAPITAL:
Do I have the dough? Yes I have ! I want to make it big by filling stomachs and I will be rich overnight-------MYTH
You have to logically go into Project Cost Budgeting and yes do not forget the gestation period for your baby to be healthy ! It can be anywhere between 6 to 10 months and in some cases even more.And you need the most important resource, which I call Oxygen -WORKING CAPITAL
Lot of outlets die because of lack of this Oxygen.
New outlets look amazing…..the investors spend on interiors, the designers try to impress them with award winning designs, equipment looks fresh from factories, shining crockery, cutlery, glassware, holloware , artifacts and so on.
But….wait for few weeks , maybe few months and you start seeing the hidden truth…..
Chipped crockeries, cracked glassware, dented hollowares, tarnished cutleries and maybe even incomplete uniforms of the team members……
Its catch 22-----deep sea and devil concept….your business will take the beating because of these factors and you cannot afford to replace if you are not making CASH!
That’s the first sign of DECAY…..
FOOD: I have observed lot of restaurants loosing on consistency on taste of their food and quality of service!
Reasons –many---we do not know whats the actual cause…maybe?
-turnover of chefs and waiters
-lack of standard recipes/standard operating processes
-lack of food and beverage controls
-lack of training in kitchen and restaurants
-poor job knowledge , mainly product knowledge
-lack of standard purchase specifications
-low staff morale
-lack of ownership in teams
I can go on and on………..
But this leads to final rites of the restaurant…….
4.STAFF ISSUES !
Our biggest asset-our people !
I always feel our lowest paying team members are meeting our highest paying guests maximum number of times !
They are our brand ambassadors ! If they are demotivated, and low in their morale , you can not make it happen !
Happy staff can make guest happy !
I observe rude staff in lot of outlets, they are removing their frustration on the guests !
Sad but true !
That’s the last nail in the coffin !
Rude staff, arrogant body language, unhygienic disposition will drive your guests away……
Winning restaurants have team of winners ! Ever smiling and with spirit to serve !
People leave because of people….make your managers good leaders !
Let them have followers and not sub ordinates.
5.FOOD & BEVERAGE CONTROLS:
-----lack of proper F&B Controls expedite the locking ceremony.
Improper billing softwares, back office softwares for indenting,inventory management, yield management,MIS audits,process audits and so on.
Still we manage like mom and pop shops and expect results like F&B giants who made it big…..
6.GRM-Guest Relationship Management:
I have observed guests are visiting outlets for 5th time and staff still asks their name …..
And at the same time I have observed outlets where in 2 nd visit the teams remember names as well as their favourite drink and so on…from their WISH LIST
The future is customization of our product and services..
Yes I do sound very idealistic-but that’s the truth, in todays global competition, the survivor has to provide what the customers wants and give him everytime.
GUEST IS GOD !....very old saying but very valid TODAY
Happy reading friends, the article is not to discourage you to be in F&B business, but for you to be more methodical and processed.Enter the F&B Field with eyes wide open !
I would suggest, Design your Success and not let Success happen by Chance !
Author is RAJNISH CHOPRA-F&B Specialist and can be contacted at firstname.lastname@example.org
M +91 98203 76110
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