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Choosing the right music for your restaurant

31/3/2015

 
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Why the right music important 

Research has found that choosing the right music for your restaurant helps increase your businesses profitability. Fast music has been associated with a quicker table turnover and slow music increases average customer spend. Fast music has been found to increase excitement, meaning customers eat quicker. Slower music does the opposite. In this case customers take their time and are more likely to eat multiple dishes and drink more. However this doesn't mean all restaurants wanting to increase customer spend for example should play slow music. There are other things to consider.

Choose music that matches your restaurants personality

The crucial aspect when choosing the right music for your restaurant is to make sure it matches your establishments personality.

Choosing the right music is part of the package of factors that contribute to your brands identity. These other factors include:

  • Interior Design
  • Menu
  • Staff
Another important factor to consider is the type of customer you attract or want to attract. For example you might turn up the volume and play top 40 tunes if your restaurants wants to attract a younger audience.

Ask yourself:

What music matches the energy of my restaurant?
What music matches the food and drinks I serve?

Consider all of these things to determine your restaurants personality. You will then have a clearer picture of the type of music you should select. The result will be a better experience for your customer and your staff!

Change music according to the time of day

Choosing music for your restaurant is about knowing your establishments personality but also varying it to suit the time of day. 

If you are open in the morning then you are probably going to want a more relaxed music vibe. A soundtrack that helps guests wake up gradually.

You might still have a toned-down vibe at lunch but you could think of increasing the tempo.

Depending on the type of restaurant you have, nights could be the opportunity to increase the volume or offer a more exclusive vibe.

Don't just consider music to suit the time of day but also the days of the week. The music you play on Monday is likely to differ to Friday and on the weekend.

The music you play needs to be well thought through and planned.

Guidelines for music selection

Choosing the right music for your restaurant also involves creating guidelines for it's selection. These guidelines can include things like:

  • Who is in charge of putting playlists together. 
  • Ensuring the music played is not too similar to the competition 
  • Specifying what genre of music is encouraged/discouraged
It is advisable that you don't let customers choose your music as you are then put in a position where you have lost control and the music selected might not match the personality of your restaurant.

Choose music that is different from the competition as it can act as a key point of differentiation for your restaurant. 

By providing examples of the genres/types of songs you want played you are more likely to match your brands personality and it can act as a template if someone else needs to assume responsibility at short notice. Whatever the case you don't want to include music with any profanity.

Where to go for music inspiration

There are a range of sources where you can seek inspiration for your restaurant playlist. 

  • iTunes
  • Pandora
  • Spotify
All these services have radio stations or pre-made playlists that can match a mood you a looking to create. 

The bottom line

Choosing the right music for your restaurant is something that deserves your time and attention to get right. Your business stands to benefit financially if its does.
(Via: POS Sector; Reader's Digest; Buzz Time; My Hotel Revelation.)

How To Manage Fatigue in the Hospitality Industry.

24/3/2015

 
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Managing fatigue in the hospitality industry is a common issue that represents both a risk and a cost to operators.

The pressure for results and a more efficient workplace means that fatigue is a problem that is increasing amongst the industry workforce and therefore needs to be addressed.

What is fatigue?

Fatigue is an ongoing state of tiredness that goes beyond feeling tired or drowsy. It leads to mental or physical exhaustion which means workers aren't able to go about their work as they would normally.

Causes of fatigue

Fatigued can be cause by work and lifestyle factors or a combination of them both and occurs over a period of time.

Work related causes of fatigue

·     Roster patterns
·     Length of shifts
·     Work scheduling and planning
·     Length of time worked
·     Timing of shifts (e.g. night shift)
·     Recovery time between shifts
·     Period of time awake
·     Work environment
·     Job demands
·     Mentally or physically demanding work
·     Rest breaks

Lifestyle related causes of fatigue

·     Quality of sleep
·     Length of sleep
·     Social life
·     Family demands
·     Other employment
·     Travel time
·     Sleep disorders

Effects of fatigue

The effects of fatigue can be both short and long term and can effect the individual as well as the business. 

Short term effects of fatigue

For the individual, fatigue can hamper the ability to:


·      Concentrate and avoid distraction
·      Think laterally and analytically
·      Make decisions
·      Remember and recall events
·      Maintain vigilance
·      Control emotions
·      Appreciate complex situations
·      Recognise risks
·      Coordinate hand-eye movements
·      Communicate effectively
·      React
·      Perceive distance, depth and speed 
·      Engage with others

For the business this increases the likelihood of:

·      Error rates
·      Accidents and injuries
·      Employees arriving late for work
·      Unplanned absences

Long term

For the individual the long-term consequences of fatigue include:

·      Heart disease
·      Diabetes
·      High blood pressure
·      Gastrointestinal issues
·      Anxiety
·      Depression

Managing Fatigue

Managing mental and physical demands of work

·      Ensure appropriate machinery and equipment e.g. anti-fatigue mats
·      Design jobs that have a variety of physical and mental tasks
·      Job rotations
·      Rest periods
·      Plan for busy periods or an unexpected increase in work hours

Managing work schedules

·      Schedule any hazardous work outside the period between 2am and 6pm.
·      Avoid incentives that encourage employees to work excessive hours
·      Provide adequate breaks between shifts
·      Work demands should gradually increase towards the middle of the shift and then reduce towards the end
·      Align shift times with the availability of public transport or provide alternative transport after long shifts

Managing environmental conditions 

·      Reduce work times during periods of extreme heat
·      Install appropriate heating and cooling devices
·      Provide adequate break facilities

Managing factors outside the workplace

·      Introduce a workplace policy to manage fatigue
·      Provide staff training

Why manage fatigue?

Hospitality businesses stand to gain financially if they are better able to manage fatigue in the workplace. This can come in the form of increase morale, less sick leave, a lower number of workplace incident and reducing the likelihood of fines and court proceedings.

As always we'd love to hear from you. What process has your business implemented that reduce the likelihood of fatigue in your workplace?

(Via: Worksafe Victoria; Worksafe Australia; NSW Work Cover; Hospitality Magazine.)

7 Steps to Handling Negative Reviews

17/3/2015

 
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Handling negative reviews left by customers online is a fear faced by many restaurant and cafe owners. 

As many customers choose to read reviews before they deicide where to dine it pays to be proactive on review sites . The aim should be to turn negative reviews into a mechanism to improve your business

Let's look at some of the steps you should take when you receive a negative review.

1. Stay Calm and Be Polite

When handling a negative review remember to stay calm and be polite. Negative reviews provoke strong emotions, especially when you feel a customer has exaggerated their complaint.

The first thing to do when receiving such a complaint is to take a break. Don't respond straight away. Take the time to calm down and investigate any of the issues raised. If you do respond straight away you risk responding in an angry and defensive tone which could do more damage.

While it is always best to take some time out before responding, don't leave a negative review unacknowledged for too long. Try and respond within 24 hours of the review being received. When you do, ensure you reply in a polite, measured tone.

2. Ask For False Reviews To Be Removed

Not all reviews are legitimate. If you believe that you have received a negative review that is false or suspect then you should contact the website on which it was posted. Explain the reasons behind your objection to a review. The more detail and evidence you have the better. The website should then investigate your claim.

Some of the reasons for flagging a review for investigation include:

  • It's false
  • You suspect it has been posted by a competitor
  • It contains a profanity
  • It contains a personal attack
  • The review contains private information
Even if you do flag a negative review to be investigated it can take time or the website might not agree with your assessment. Therefore it is worth continuing the process of handling the complaint.

3. Public or Private Response

Often it is good practice to respond both privately and publicly to someone who has posted a negative review. 

At first it may be necessary to ask for more details about the customers complaint and to offer a solution to the issues raised. It's recommended that in all but the most serious situations you invite the customer back to your cafe or restaurant.

Once you have contacted the customer privately you should then respond publicly. In the response acknowledge the customers concerns and outline how you have gone about rectifying the issue.

Remember that potential customers will be reviewing how your respond to customers and forming opinions on that basis. Being proactive and responding publicly is a great way to demonstrate that you are committed to high levels of customer service. It will have a positive impact on customers perception of your business.

In the instant that you have tried to get in contact with a customer who has made a negative complaint but you have received no response, it is a good idea to comment publicly so that you demonstrate to potential customers that you've been proactive.

4. Provide Acknowledgement

When you respond to an angry complaint it is always important to acknowledge the issues raised. As a first step thank the customer for taking the time to write feedback. Acknowledge their complaint and what you will or have done to rectify the issue. Take the opportunity to highlight any relevant, positive aspects of your cafe or restaurant.

It is also important to apologise, even if you don't agree with what the reviewer has said. In addition, don't attempt to explain how things 'really happened.' This will only make the situation worse. People reading the reviews will identify this defensiveness and take the side of the customer, not yours.

5. Offer To Make Ammends

When a reviewer provides bad feedback view it as a challenge to make amends. One way of doing this is by offering some sort of compensation. This could include:

- A refund
- A private tour
- A free meal

Making a disgruntled customer feel important can be a good way to reduce their anger. Hopefully extending the olive branch will help change the opinion of the reviewer. Most sites offer the opportunity to change a review.

Sometimes the most unhappy customers, with a bit of work and perseverance can turn into loyal fans!

6. Humanise Your Brand

One on-going strategy to minimise negative reviews is to show a human face to your restaurant or cafe. Social media is the perfect tool for this. 

By  showcasing pictures of the staff and behind the scenes insights then customers won't see you as another faceless business.

When leaving reviews, customers are reminded their dealing with real human-beings. Even if they want to leave a negative review they are more likely to do it in a polite, constructive way.

One technique that can also work in some situations when responding to reviews is humour.  Ensure your still taking the complaint seriously, but the use of humour can diffuse the anger of a negative reviewer.

7. Learn and Move On

Negative reviews are normal and part of business. Even the very best restaurants and cafes receive negative feedback. 

See all reviews, both positive and negative as a way to learn and improve your cafe or restaurant. You are likely to see common themes in feedback from customers.  Customers then become de-facto business consultants helping you to constantly improve.


We'd love to hear your feedback. What have you found to be the best ways to respond to a negative review?

Via: Business Queensland; Sprout Social; Word Stream; Forbes; Fast Company; Hospitality Magazine.

EightAnnoying Habits of Diners

10/3/2015

 
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As customers of restaurants and cafes we all have our gripes from time-to-time. It might be the over-attentive waiter, a staff members uncaring nature or even bad body-odour. But what about us as diners? Are we unwittingly doing things that drive restaurant and cafe staff crazy? Let's not be the patrons who do any of the following:

1. You don't respect reservations

Restaurants and cafe run on slim margins. When a guest fails to turn up for a booking they have made that is real money the establishment has lost. The bigger the booking, the higher the loss if they are a no-show.

Not only does the business lose money but it's unfair on others who could have made a reservation in your place.

If you can't make your booking, ensure you cancel it. The more notice you give to an establishment the better. If it's unavoidable even a cancellation at short-notice can give the restaurant the opportunity to use the table for another guest.

2. You seat yourself

You might think your doing the restaurant or cafe a favour by seating yourself but regardless of whether the host is busy, you should always wait to be seated.

There is a system in place at most cafes and restaurants that is upset when you choose to seat yourself. Factors include ensuring an even spread of wait staff and reservations that have been made in advance.

Just because you walk into a restaurant that is half-empty doesn't mean that will be the case in 15 minutes time.

3. Saying your ready to order when your not

Avoid being the table that holds up other guests. Don't tell your waiter that your ready to order when really you haven't event decided what you'd like to drink. 

Asking your waiter questions about the menu? Absolutely. Give the waiter the heads-up and they'll be happy to help. 

What annoys staff is when you don't ask your questions beforehand and the task of ordering your meal takes 10 minutes longer than it should. In the mean time the table next to you is waiting for the jug of water they have been waiting on since they arrived.

4. You rewrite the menu

There is a reason behind every menu item. They entire menu comes together to deliver on the restaurant or cafes concept. Chefs consider it an insult if you go and completely change what they've spent time and care preparing. 

Requesting the vegetarian option or asking for the dressing on the side are reasonable requests. However when you request an item not on the menu or substitute ingredients and seasonings, that's when kitchen staff get annoyed.

If something can't be done the way you want it then consider another menu item. If there's nothing on the menu that you like the look of perhaps it's not the restaurant or cafe you were looking for.

5. Entitlement

Every staff member at a restaurant or cafe wants to provide great service to every guest. Don't make the mistake of thinking your more deserving than any other table. This includes the situation where you know the owner. 

Understanding that the task of running a restaurant is not easy will go a long way to improving your dining experience.

6. Etiqutte

There is a basic etiquette when eating out that all of us should observe. Poor etiquette is something that is a turn-off not only for staff but your fellow guests. 

Here are some examples of what not to do:

  • Smelling the dish of another diner whose meal you like the look of
  • "Same-siding" being a loved up couple seated next to one another makes other guests feel uncomfortable
  • Talking loudly so everyone can hear
  • Taking calls on your mobile phone at the table
  • Swearing
  • Being drunk
  • Constantly coughing 
  • Dressing inappropriately for the occasion

7. Your mean 

As customers at a restaurant we can help create a great dining experience. By ensuring our general tone and demeanour is positive we create a positive environment that is reciprocated by staff. Empathy can go a long way.

8. Being the last table

While you have every right to stay as long as the restaurant or cafe is open, consider that they are likely making very little money the longer you stay. Given the cost of wages to stay open it might even be costing them money. 

In addition, if you come in at the last minute it's likely that the full menu won't be available. Staff will have gone home and food will have been put away. If you come in at the last minute you'll most likely receive last minute options.

Via: Bon Apetit; City Lab; TopTenz; Serious Eats

7 Factors to Consider When Calculating Food Costs

3/3/2015

 
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The pricing of your food plays a critical role in the success of your hospitality business. It is important to spend the time required to get it right. Manage it on-going to reflect any changes in the business landscape. 

If you've avoided an evaluation of your hospitality venue's prices for a long period of time, chances are that you're not as profitable as you could be. Welcome the opportunity to ensure the continued success of your business.

There is no exact formula when it comes to calculating food costs but there is a range of factors you should consider.

1. What are your Cost of Good Sold (COGS)?

How much does it cost to serve each item on your menu? Remember that every cost incurred in running your business has to be covered by the food and drink that you offer.

Let's take the example of producing one hamburger. The costs would include:
  • Patty
  • Bun
  • Each individual salad item
  • Condiments 
Say for example the cost of all these items is $15.

That means that before you even consider any other overhead costs you have to charge at least $15. 

The cost of producing each item also includes any other expenses directly related to purchasing the food and can include:

  • Delivery fees
  • Interest
  • Return charges
Don't forget to include these in your calculations.

2. How much do you spend on overheads?

The costs associated with the day-to-day operation of your hospitality business need to be added to the cost of producing each menu item to get a better picture of the price you should charge.

Wages are a big part of a hospitality business expenses but also consider things like:

  • Utilities: gas, water, electricity
  • Advertising
  • Cleaning
  • Spoilage
  • Theft
This list is by no means exhaustive. When thinking about your overheads ask yourself two questions:

  1. What costs do I incur as I make more sales (variable costs)
  2. What costs do I incur regardless of whether or not I make a sale (fixed costs)
When you have considered all your expenses you can use the numbers of customers you serve each day to calculate an overhead cost per person. An electronic POS system should be able to give you this data. 

As an example:

  • On average you serve 100 customers per day
  • The total cost (variable and fixed not including COGS) to run your business based on serving 100 customers per day is $1000
  • This means your daily overhead per person is $10 
Using the previous example of the burger, this means we have to charge at least $25 for this menu item to make a profit. 

Depending on your hospitality business this may or may not cater for you target customer. If it doesn't then consider not using as many ingredients or substitute for a cheaper product.

3. How much is your customer willing to pay?

Depending on your target customer, the quality of your food and the dining experience, customers will have a rough idea for the prices you should be charging.

Depending on the hospitality venue that you operate a customer might be willing to pay more or less depending on the following factors:


  • How often they expect to visit
  • How much time they expect to spend in your venue
  • How much food they expect to order
Take for example a take-away pizzeria. Customers would be expected to visit more often, spend little time on the premise and would be unlikely to order a 3-course meal. In this case customers would expect cheap to mid-range pricing.

To increase customer perception of how much you should be charging consider advertising how ingredients are grown, whether it is organic or free-range. Using these words to describe a menu item can often command a premium. So too can items that require more effort, artistry or talent to prepare. 

Your business location as well as general supply and demand also play a crucial part in how much you can charge, with these factors being more difficult but not impossible to influence.

4. What's your competition doing?

Your competition can be a good gauge for how to price your food items. Give some thought though about who it is that constitutes your competition. Consider asking your customers what other businesses they frequent. Make sure that any business you choose to compare your prices with is doing well themselves.

The are a number of different strategies you can employ when pricing yourself against the competition

  • Undercut the competition with the aim of bringing in more business
  • Charge more by providing a higher value offering

5. How often do you change your menu? - Seasonality

A good way to keep the cost of your menu items under control is to offer a seasonal menu. Food that is season is usually cheaper to purchase and fresh. This is a win for both  you and your customers. By changing your menu items to reflect the season you are  forcing yourself to review your pricing on a regular basis. 

6. Can you limit the consequences when increasing prices?

It is a fact of life that there will be times when you will have to raise your prices. There a ways of doing this though that will mean you don't lose customers though.

Consider the following tactics:


  • Decrease the portion size of the menu item but keep the price the same
  • Create a more attractive name, add a special sauce or theme to the food
  • Ensure the more profitable items are given prominence on your menu
  • Increase menu items by small increments 

7. How can you add to the experience?

Lastly, when it comes to your hospitality business it should be the total value of the experience not just the food that you should reflect in your pricing.

Customers are more likely to judge a restaurant on the quality of your food, the level of customer service and how it is perceived by others before they worry about price.

Finding ways to add more value to the experience of dining at your establishment gives you more leeway when setting menu prices for your hospitality business.

5 Technologies Changing The Hospitality Industry

24/2/2015

 
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Technology is changing the hospitality industry. How can your business benefit?

Online ordering

Online ordering is one piece of technology that is becoming increasingly popular. Customers appreciate the convenience of being able to order outside of business hours or when they can't get to a phone.

As a restaurant or cafe owner you can choose a third party online booking service or develop one that's customised to your needs. Investigate each option to see which works better for your business.

Regardless of which option you choose, the key is to make online ordering easy with a website that is easy to navigate. Make sure your website is mobile friendly as well. Not only are more people ordering online but they are doing it via their smartphones. 

Social media

The importance of social media to the hospitality industry only seems to be strengthening. Social media has democratised which restaurants and cafes get noticed. Most restaurants and cafes are run by small business owners who should embrace social media as a low cost tool for building awareness and getting customers through the door. 

When deciding what social media platforms you should have a presence on, consider your target customer and where they spend most of their time. 

Explore sites like Facebook and Foursquare which allow diners to check-in to your restaurant or cafe. 

Review sites like Yelp and Urban Spoon are a great way to monitor feedback of your customers and make any necessary improvements. 

One Increasingly popular piece of social media technology in the US is Facebook ordering. Sites like Net Waiter can add this function to your site. It's low cost and has the potential to grow sales. 

No matter what social media platform you choose, creating compelling content and interacting is they key to ensure engagement with your existing customers and attracting new ones 

E-Waiter

The use of tablets is becoming more prevalent in restaurants and cafes because of the potential efficiencies they offer. The use of tablets means diners can order and pay for their meals quicker and your business can serve more people. 

Some restaurants have found they are able to reduce their wage bill as they do not need the same amount of staff to serve the same amount of customers. 

Not only is the use of tablets more efficient but it can improve customer service. Customers appreciate efficient service and the added benefits like the ability to ensuring their credit card is always in view when paying at the table.

CRM 

Customer Relationship Management (CRM) is a system for organising your ongoing relationships with customers and ensuring important information is stored. There are many CRM tools on the market that are constantly being updated and readily cater for the the hospitality industry. 

A CRM tool should enable you to access details such as:

1. Customer contact details
2. Frequency of visits
3. Meal preferences
4. Average spend per visit

You can then use the information provided by your CRM system to tailor customer promotions. This will ensure the you are not only encouraging repeat business but increasing the profitability of each visit also.

Electronic POS

Electronic POS systems are making the humble cash register redundant. They allow restaurants and cafes to operate more efficiently and provide better customer service. When integrated with a CRM tool they provide a wealth of data on your business.

Here are just a number of things that a POS system can record and measure for your business:

  • The popularity of menu items
  • Busiest days
  • Busiest time of days
  • An overview of your business revenue
  • Makes bookkeeping, BAS lodgement and tax returns hassle free
Via: Hospitality Magazine; Forbes; The Next Web; CRM Solutions

3 Tips When Interviewing Hospitality Staff

17/2/2015

 
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The hospitality industry is notorious for it's high staff turnover. Reasons for this include:
  • Unsociable working hours
  • Physically demanding work
  • Temporary nature of many employment contracts
However another factor is a poor process when interviewing hospitality staff. 

A recent study by Griffith University found that Australian hotels have more than a 50% staff turnover rate. The study put the figure to replace those staff to be on average $770,000.  

What the study makes clear is that the financial cost of high turnover directly effects your business bottom line.

Hospitality businesses operate with very tight profit margins. So it makes sense to get your hiring right. You stand to improve your profitability if you do.

Here are 3 tips you should focus on when interviewing hospitality staff to ensure you hire candidates that are going to stick around.

1. Watch Body Language

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A candidates body language during an interview can give you great insight into their personality.

Here are some of the things you should be on the look-out for:

  • Posture: poor posture can be a sign that the candidate is disinterested. If they're not engaged now it's unlikely that's going to change on the job.
  • Eye-contact: if a candidate can't look you in the eye during an interview this can be a worrying sign. Sometimes people are nervous or shy but if the candidate can't hold eye-contact at crucial stages of the interview it could be that they are not telling the truth. If they hold eye-contact too much it could be a sign of aggression which is a dangerous also.
  • Fidgeting: someone who is constantly fidgeting is often impatient or frustrated. In the often highly stressful hospitality industry this is unlikely to be the candidate you are looking for.
  • Hand gestures: relaxed, easy-flowing hand gestures are a good sign. Be on the look out for sharp, over the top gestures that can indicate aggressiveness.
  • Arms: a good posture with relaxed arms and legs is what you should look for. If the candidate has crossed arms and legs this is usually a sign of defensiveness. 

2. Ensure staff are a good fit with your business

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When interviewing staff for your hospitality business one of your goals should be to determine whether the candidate will make a good fit with your business. Think about the personality of the brand, the customers you serve and your existing staff. Do you see this candidate fitting in?

Some questions you can ask to uncover whether the person you are hiring is a good fit for your business include:


Why do you want to work here?
  • You want the candidate you are hiring to be enthusiastic and keen to join your team. 
What are your greatest strengths?
  • By asking this question you can determine whether the candidate is a good fit for the role you are hiring. You can also match their strengths against the rest of your staff. Does this candidate fill a gap that you might need?
Where do you like to go out to drink and eat?
  • A candidates personal interest is a good way to discover their personality. You are then in a better position to assess their fit with other members of you team and other business stakeholders.

3. Interviewing is a Team Process

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When interviewing hospitality staff for your business determine ways to involve more people in the process. Existing staff who will be in regular contact with a new employee are prime candidates to have input into the hiring of a new staff member. This is one way to ensure that when someone new is hired they are readily accepted, fit in and can make an impact straight away. It also promotes open communication, a good team atmosphere and culture which is critical in the hospitality industry.

Once the new staff is hired have a mentor system in place whereby they shadow an existing staff member. They will get a better insight into the processes and procedures of your business and will learn their role as well as those of others.

Via: Hospitality Magazine, Frontline Hospitality, HR News Daily, Open For Business


We'd love to hear your thoughts. What have you found to be a critical part of your hiring process to ensure that your hire the best staff for your hospitality business?

10 Tips for Cafe Owners

10/2/2015

 
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Running a cafe is tough. At ViViPOS we're all about making things simpler. So we've compiled ten tips for cafe owners. In 2015 consider implementing them in your business.

1. Realise and exploit your point of difference

Running a cafe is just like running any other business and a successful business has a point of difference. This is something you do better than your competitors. Ask yourself what makes your cafe unique?

One way to find the answer is to analyse your competition. What are their strengths? What are their weaknesses? Compare them to your cafe. Another option is to ask your customers, especially repeat customers. What is it that brings them back time and again?

Once you have determined what makes your cafe unique, your job is to exploit it. Make sure all the marketing your do for your cafe conveys the message. 

2. Have a mobile friendly website

According to the online hospitality booking website dimmi, 42% of restaurant and cafe searches in Australia are done on a mobile device. This makes a mobile-friendly website a mandatory marketing tool.

3. Have a great sounding menu

Your cafes menu is usually one of the first points of contact for customers. You need to make a great first impression. 

Your menu should be an extension of your cafe's brand and convey the same message.

Consider:

  • Describing how the menu-item has been cooked. Use evocative words like pan-fried, poached and wood-fired.
  • What makes your dish unique. Is it organic, locally sourced or gluten-free?
  • Highlighting seasonal or unique ingredients.
  • Including where ingredients are sourced from. As with wine, a foods location can add value to a meal.
  • Adding greater description. What type of bread are you serving, what type of grains are you serving in your muesli? Giving greater detail can enhance the perception of a dish.

4. ... and update it often

All good cafes update their menu regularly. Customers will want their menu favourites but adding new items gives customers a reason to come back and try something new. The price of food and overheads can change. Updating your menu regularly can help you reflect the cost of doing business and keep margins sustainable.

5. Have room to expand

Your cafe is more profitable if you serve more people. If your just starting out select a space that is adaptable and gives you room to grow as your business does. 

If you are already in your space be on top of local council laws and consider how you can expand your service area. If you decide to expand your space be careful when you select your contractor. Often the cheaper option can be more expensive in the long run.

6. Small things can save money

In the cafe business where margins are thin, even the smallest cost savings can add up over time. 

Consider:

  • Switching to energy efficient light bulbs
  • Invest in energy efficient appliances 
  • Eliminate slow moving food items from your menu

7. Focus on your guests mood

Inc.com gives the example of US restaurant that assigns each guest a number. Based on a scale of 1-10, staff rank the customers mood. Anything below a 7 indicates the guest is unhappy. The ranking is placed in a number of spots around the restaurant so every staff member can see. Staff make it their mission to get all dinners up to a 9 by the end of their meal. Complementary drinks and tours of the kitchen are just two examples of methods employed to improve a customers mood. The owner considers it their duty to make their customers happy.

8. Build a customer database

A customer database makes it easy to attract business. It's widely acknowledged that it is easier to attract repeat customers than new ones. With social media sites like Facebook increasingly restricting the amount of people who see your content, a customer database makes sense. You own the list and have more control over who sees your marketing messages.

9. Take time out

We mentioned it at the start. Running a cafe is tough and can get stressful. Take time to relax. This includes taking small breaks during the day, switching off after work and longer breaks when you can. If your less stressed you'll be better with customers, staff and your business will see the results.

10. Setup a POS system

Implementing a POS system arms you with knowledge to know what's going on in your business. Is it time you throw out your cash register? There are many advantages to implementing a POS system including:

  • Simplify management
  • The ability to track sales, cash flow and inventory
  • Help save money on food costs and payroll
  • Identify the popularity of menu items
The more informed you are about what's going on in your cafe the better decisions you make. The result: a more profitable business with less stress.
Via: Hospitality Magazine, inc, about money, Dummies

How to Handle an Angry Customer

2/2/2015

 
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In the hospitality business we aim to keep customers happy. Unless your Basil Fawlty nobody deliberately sets out to make a customer angry. It doesn't matter who you are though, there will be a situation where a customer is unhappy with a product or service that you provide. Here's how to handle an angry customer.

Remain Calm

The first step in how to handle an angry customer is to stay calm. If a customer starts yelling at you do not respond by yelling also. The focus will immediately turn to who can yell the loudest. This escalates the situation and will not help solve the cause of the anger. Focus on deep breathing as a way to remain calm.

Change your frame of reference

From the outset assume the customer is right and take that frame of mind rather than being defensive. By changing your frame of reference from being defensive to a position of empathy, you put yourself in a better position to defuse the situation.

Don't take it personally

Remember that if a customer is angry, they are angry at the product or service, not you as a person. Repeat this to yourself as a method to remain calm.

Listen

The best thing to do when a customer is angry is to listen. By actively listening to the customers complaint you put yourself in the best position to understand the cause of their frustration. Allow the customer to keep talking until there is silence. This will help diffuse the customers anger. Only once the customer has finished speaking should you talk. Summarise what you have heard from the customer and clarify with any questions. Confirm with the customer that what you've heard is correct. By listening to the customer you should be able to determine the emotional reason and the technical reason for the complaint. For example a customer may complain when they don't receive the correct meal they requested. After listening to the customer you may discover that they are now late for a movie. Deal with the emotional issue before you deal with the technical as this is the cause of the frustration.

Sympathise

Having discovered the cause of the customers anger the next step is to sympathise with their anger. The first step is to speak softly. Summaries what you have heard from the customer to show you've actively listened to what they've said. Ask questions if you need to and ask the customer to confirm what you have relayed back to them is correct. Part of sympathising with the customer is focused on body language. Ensure eye-contact, stand or sit upright and make sure your arms aren't folded. Showing you understand a customers frustration through words and body language can go a long way in addressing the concerns of an angry customer.

Apologise

Whether you feel the customer is right or wrong the best thing to do is to apologise. For whatever reason their expectations of your product or service have not been met. A simple "I'm sorry, let's make this right," is enough.

Own the problem

The customer has come to you to express frustration at the business, you should be the one to help. You may feel tempted to pass off the issue to someone else because it's not your responsibility. This is likely to make the person more angry because they have taken their time to explain their situation to you and now feel powerless to have it resolved. Call on any assistance you need but ensure you remain committed to resolving the problem.

Find a Solution

Solving the problem for the customer is a two step process. Having listened to the customers concerns you should have identified the emotional issue and the technical one. Using the example above, the technical issue may have been that the waiter misheard the patron when they ordered. The emotional issue is that the customer is now running late and is what has made the customer angry. Resolve the pressing emotional issue first and then go about rectifying the technical. Work out what went wrong and implement a long term fix to at least minimise the likelihood of the situation repeating.

Take time out

Confronting an angry customer can be a stressful situation. This is the case even if you've handled the situation well. Make sure you take at least a few minutes to yourself after such an event. Go for a walk, talk to a friend, do what you need to do to get back in the right frame of mind to talk to customers again.

Follow up

It is likely that the technical side to any complaint will involve a longer term fix. Ensure that the customer who made the complaint receives a follow up. Reassure them that steps have been taken to rectify the issue. By reassuring the customer and showing attentiveness you are more likely to avoid the loss of a customer and may even attract new ones based on your determination to set things right.
Via: Forbes, BusinessKnowHow.com

How to boost your business profitability

30/1/2015

 
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Branding & Collateral

In the hospitality industry we know better than anyone the power of a first impression. What does your branding, collateral and fitout say about your business? 

From the signage and the look of your shop-front to the presentation of the interior. Is it clean, clear and well presented? It's important that this is the case. 

Your business should stand out for the right reasons. Don't let customers choose your competitor because your not making a good first impression. 

Simple things can make all the difference. 
They should all come together to create an ambience that is inviting. 


Ensure:
  • Prominent signage
  • Appropriate lighting
  • An inviting interior 
  • Clean and well maintained premises

Customers often make a snap decision when walking down a busy street full of competing businesses. Potential customers can make a connection with the look of the business and the quality of the food. 

Get  your branding and the presentation of your business right and you increase the likelihood of potential customers choosing you.

Layout 

The layout of your establishment should be something you consider in your quest for profitability.

A well considered layout can increase the amount of patrons you are able to serve at the one time. Many businesses make the mistake of having too many tables of four at the expense of tables for two.

Consider square tables instead of round ones. This allows for tables to fit more closely side by side.

A POS system will help you look at your sales report history. This will give you an insight into the most popular group sizes in your establishment.

Don't only consider your floor layout. What about your menu? Make it clear and easy to read. People need to quickly find their way around the different food choices. If items are easy to locate, patrons will order quicker and tables will be freed up sooner.

Table Turnover

Serve more people in the same amount of time. It's an efficient way of becoming more profitable.

One way to do this is through the increasingly popular trend of two sittings. 20% of restaurants in Australia now have limits on how long patrons can occupy a table. According to dimmi.com.au 50% of customers have settled their bill within 90 minutes of sitting down. A total of 85% have done so within two hours.

It must be a balance though. If your customer service starts to slip the extra profitability will be short lived.

Customer Service & Up Selling

Simple and easy to implement sales and customer service techniques can ensure a win-win situation where both customer service and profitability increase. 

Staff should:

  • Greet customers when they enter and ensure they are promptly looked after
  • Offer recommendations
  • Know the menu well
  • Be aware of any specials
  • Recommend an accompanying drink with a menu selection
  • Offer an accompaniment while they wait for their entrees or mains
  • Offer dessert
  • Ask if patrons enjoyed their meals

All these techniques will speed up service time. It also and encourages patrons to order more menu items. Above all they will appreciate the extra help they get from staff. 

Via: SMH; Hospitality Magazine, LinkedIn
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