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Written by Tanya Lee
Ability Village
​
Thank you, Tanya, for another excellent hospitality article.

Success in the hospitality industry depends on more than just providing a service—it requires building meaningful connections with customers. In an environment where attention is limited and choices are abundant, small business owners must find effective ways to engage consumers and encourage long-term loyalty. Creating a brand that resonates with people and consistently offering value are essential to standing out. When customers feel appreciated and connected, they are more likely to return and recommend your business to others.

Stand Out with Quality and Originality
Offering something special is key to capturing attention and keeping customers coming back1. Whether it's a signature dish, a unique guest experience, or a standout service, focusing on quality and originality sets your business apart. Customers appreciate businesses that put effort into delivering value that they can’t find elsewhere. By continuously refining and improving what you offer, you ensure a memorable experience that turns first-time visitors into regulars.

Leverage Social Media for Direct Engagement
Social media provides an opportunity to connect with customers in real-time2 and keep them engaged beyond their visits. Posting behind-the-scenes content, customer stories, or special promotions keeps your audience interested and involved. Responding to messages, comments, and reviews build trust and shows that your business values customer feedback. A well-maintained social presence turns followers into loyal customers who actively promote your brand.

Craft a Memorable Brand Identity
A strong brand identity helps customers recognize and connect with your business on a deeper level. This includes everything from your logo and color scheme3 to your messaging and customer interactions. Ensuring consistency across all platforms—both online and in person—creates familiarity and strengthens your reputation. When your brand tells a compelling story, it becomes more than just a business—it becomes a part of your customers’ lifestyles.

Showcase Customer Testimonials
Sharing positive experiences from past customers helps new ones feel confident in choosing your business. Featuring testimonials on your website4, social media, or even within your establishment provides social proof of your quality. Genuine reviews highlight what makes your business special and encourage others to see for themselves. Encouraging satisfied customers to share their feedback further builds credibility and trust. Actively responding to testimonials shows appreciation and strengthens customer relationships.

Implement a Referral Program
A referral program turns happy customers into brand advocates by rewarding them for bringing in new business. Offering discounts, free services, or exclusive perks incentivizes existing customers to spread the word. This not only increases customer acquisition but also fosters a sense of community around your brand. A well-structured referral system strengthens loyalty while attracting new patrons who are already primed to appreciate what you offer.

Strengthen Your Business Acumen
Expanding your knowledge in marketing, branding, and leadership can significantly improve how you run your business. Earning an MBA equips you with essential skills to refine your strategies, make informed decisions, and drive long-term success. Courses in consumer behavior, financial management, and digital marketing can help you navigate the challenges of a competitive industry. If you have a busy schedule, this is worth your time—online programs offer the flexibility needed to balance education with daily responsibilities.

Offer Exclusive Promotions
Special deals and limited-time offers encourage customers to return and try new services. Loyalty discounts, seasonal promotions, and bundle packages create excitement and boost sales. Personalized offers based on customer preferences further enhance their experience and keep them engaged. Strategically timed promotions generate buzz and keep your business top of mind. Regularly updating promotions ensures continued interest and motivates customers to take advantage of new opportunities.
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Building a loyal customer base takes ongoing effort and a commitment to delivering exceptional experiences. When businesses focus on engagement, trust, and community, they create lasting relationships that go beyond individual transactions. Every interaction presents an opportunity to strengthen connections and reinforce a positive reputation. A thoughtful approach to customer engagement ensures that your business remains relevant and continues to thrive in a competitive industry.

1. Homebase: 20 Restaurant Ideas to Make You Stand Out in a Saturated Market | Homebase
2. icuc social: 6 Benefits of Social Media in Hospitality Industry | ICUC
3. Bentobox: Restaurant Branding: From Dish Names to Interior Design | BentoBox
4. posnow: The Importance of Social Proof for Restaurants | Epos Now
5. Polished Jar: Increase Club Membership | Keep Golfers Coming Back in 2024 - The Polished Jar
6. University of Phoenix: Master of Business Administration | MBA Degree | University of Phoenix
7. Owner: 18 Proven Restaurant Promotion Ideas That Work [2025]
8. Lopolito Hospitality Consultants: LOPOLITO HOSPITALITY CONSULTANTS, CORP. - Hospitality Coach and Management Consultant

Written by Tanya Lee
Ability Village
​
Here is another article sent to me by Tanya Lee for posting. Thank you again, Tanya.

Smart Strategies for Keeping Costs Low When Starting a Restaurant
Starting a restaurant is a dream for many, but the costs involved can be overwhelming. From securing a location to purchasing equipment and hiring staff, expenses add up quickly. However, with careful planning and strategic decision-making, you can keep costs low without sacrificing quality. By focusing on efficiency, creativity, and resourcefulness, you can build a successful restaurant while staying within budget, however, you must commit to the work.
Here are some key ideas and tips to help you achieve that goal.

Choose a Location Wisely
Finding the perfect location is critical, but it doesn’t mean you need to overspend. Instead of leasing a high-rent spot in a prime area, look for locations with lower rental costs that still have good foot traffic. Consider emerging neighborhoods, shared kitchen spaces, or even food trucks as cost-effective alternatives to a traditional brick-and-mortar restaurant. Leasing a space that already has the necessary infrastructure—like ventilation, plumbing, and kitchen equipment—can save you thousands in upfront renovation costs.

Start with a Limited Menu
A smaller, well-crafted menu can help you cut costs while maintaining quality. Offering too many dishes requires a larger inventory, leading to food waste and higher expenses. Instead, focus on a few standout dishes that use overlapping ingredients to maximize efficiency. A streamlined menu not only reduces ingredient costs but also makes kitchen operations smoother, requiring fewer staff members and minimizing prep time. As your restaurant gains traction, you can gradually expand your offerings based on customer demand.

Gain Financial Advantages by Registering as an LLC
Forming an LLC for your restaurant can help you save money by protecting your personal assets from business liabilities, which reduces financial risk and potential legal costs. Additionally, LLCs offer tax flexibility, allowing you to choose between pass-through taxation or corporate taxation, depending on what benefits your business most. You may also qualify for deductions on expenses like equipment, rent, and employee wages, further lowering your overall tax burden. When registering, consider self-filing or forming New York LLC with ZenBusiness, a reputable formation service.
Buy Used Equipment and Furniture
Purchasing brand-new kitchen equipment and furniture can be extremely expensive, but there are more affordable alternatives. Many restaurants shut down within their first few years, creating a market for high-quality second-hand equipment. Check out restaurant auctions, liquidation sales, and online marketplaces for discounted items like at Gator Chef. Leasing equipment instead of buying it outright is another option that can help you save money upfront while giving you flexibility for upgrades later.

Be Strategic with Hiring
Labor costs are one of the biggest expenses in the restaurant business, so it’s crucial to be strategic with hiring. Instead of bringing on a full staff from the start, consider hiring a smaller, highly skilled team that can handle multiple roles. Cross-training employees to work in different areas of the restaurant ensures efficiency and reduces the need for excessive staff. Additionally, offering part-time or contract positions can help manage payroll costs until your business becomes more established.

Negotiate with Suppliers
Building strong relationships with food suppliers and negotiating prices can have a major impact on your bottom line. Compare quotes from different vendors and don’t be afraid to ask for discounts, bulk pricing, or flexible payment terms. Buying local and seasonal ingredients can also be a cost-saving strategy, as they tend to be fresher, more affordable, and readily available. Another option is joining a restaurant co-op, where businesses collaborate to purchase supplies at lower rates.

Minimize Food Waste
Food waste is one of the most overlooked expenses in the restaurant industry. By implementing portion control, monitoring inventory closely, and using creative ways to repurpose ingredients, you can significantly cut costs. Consider offering daily specials that utilize surplus ingredients or find ways to turn food scraps into new dishes, like making broths or sauces. Investing in a good inventory management system can help you track expiration dates and reduce unnecessary waste.

Leverage Digital Marketing
Traditional advertising can be costly, but digital marketing offers an affordable way to build your brand and attract customers. Use social media platforms like Instagram, Facebook, and TikTok to showcase your food, engage with your audience, and promote special offers. Creating a website with online ordering capabilities and implementing email marketing campaigns can help drive traffic to your restaurant. Partnering with local influencers or food bloggers for reviews and collaborations is another cost-effective way to gain exposure.

Starting a restaurant on a budget is challenging, but with careful planning and smart financial decisions, it’s absolutely possible. By being resourceful, negotiating costs, forming an LLC, and leveraging modern marketing tools, you can build a thriving business without breaking the bank. Focus on efficiency and quality, and you’ll set yourself up for long-term success while keeping expenses under control.

Thank you Tanya for sharing this great article with me to post

Article written by: Tanya Lee
Email: [email protected]

​Running a restaurant demands more than just culinary expertise; it requires a strategic mindset to thrive in a competitive market. As the industry evolves, restaurateurs must adopt innovative approaches to ensure growth and profitability. Each strategic decision you make can significantly impact your restaurant’s trajectory, paving the way for long-term success.

Gain Consumer Insights

Understanding consumer spending habits is essential for driving growth and profitability in your restaurant. By analyzing these patterns, you can develop pricing strategies that enhance your revenue while meeting customer expectations. For instance, if you notice that patrons are more inclined to spend on weekends, consider introducing premium pricing for exclusive menu items during these times. Conversely, offering discounts or promotions during quieter periods can draw in more customers and boost sales.

Boost Your Business Skills with an Online Degree
Enhancing your business acumen is a crucial step in scaling your restaurant. By pursuing a bachelor in business administration, you can acquire essential skills in accounting, communications, and management. These competencies are vital for making informed decisions that drive growth and profitability. The flexibility of an online degree allows you to balance your studies with the demands of running a restaurant, making it an ideal choice for busy entrepreneurs.

Provide Exceptional Service

Exceptional customer service is a cornerstone of effective restaurant growth. Providing attentive and personalized experiences encourages repeat visits and builds loyalty among your patrons. Satisfied customers often become enthusiastic advocates, sharing their positive experiences with others. By investing in staff training and cultivating a welcoming atmosphere, you can enhance customer satisfaction and set your restaurant apart in a competitive market. Exceptional service is more than just a courtesy—it’s a strategic advantage that can drive sustainable growth and profitability.

Increase Engagement with Social Media Videos

In today’s digital age, creating captivating marketing videos for social media can significantly enhance your restaurant’s visibility without breaking the bank. By focusing on storytelling and showcasing your unique offerings, you can attract potential customers and increase foot traffic. Utilizing a free video editor simplifies this process, enabling you to make a video while adding audio, adjusting video speed, and animating elements with ease.

Provide Digital Menus

Integrating digital menus into your restaurant can transform the dining experience by offering detailed insights into each dish, such as vibrant images and ingredient lists. This technology empowers diners to make choices that align with their dietary needs, enhancing satisfaction. Moreover, digital menus can streamline operations by reducing wait times and minimizing order errors, boosting efficiency and profitability.

Utilize Sustainable Packaging

Embracing sustainable packaging for your restaurant’s takeout and delivery services can be a powerful strategy for boosting growth and profitability. By opting for biodegradable or recyclable containers, you not only minimize your environmental footprint but also cater to the increasing number of consumers who value sustainability. This approach can set your brand apart in a crowded market, fostering customer loyalty and attracting new patrons.

Expand with a Food Truck
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Launching a food truck can be a savvy strategy to broaden your restaurant’s reach and boost brand visibility without the significant costs of a new physical location. With typically lower startup expenses, a food truck allows you to explore new markets and connect with customers in various neighborhoods or cities, effectively expanding your customer base. This mobile approach offers operational flexibility, enabling you to swiftly adapt to evolving consumer tastes and trends.
Incorporating these strategies can significantly impact your restaurant’s growth and profitability. Each step you take not only enhances your operational efficiency but also strengthens your brand’s reputation, ensuring a prosperous future for your restaurant.
 
Article written by: Tanya Lee
Email: [email protected]

By Jim Lopolito
​September 11, 2024

Fundamentals in Accident Training 

Shaping how well we execute service to our guests is a primary function of hotel and restaurant training.  From the front of house to the back, and the first floor to the top floor, we support our teams on the path to guest experience and financial rewards.  This is fundamental and we hope that nothing gets in the way of our dreams.

There is, however, the likelihood your practices are overlooking a component of training that is allowing significant risk to your success.  In simple terms, if you assume your employees are performing their responsibilities correctly in protecting guests from accidents, these allusions can become an unexpected concern.  Now you’ve opened the door and allowed in the customer you didn’t train for.  Accidents happen regularly, they are a threat to success, and no business is excluded from the potential of having accidents anywhere in hospitality.

The Clues Are There: Are you Liable? 

Walk into any hotel or restaurant and observe the potential for an accident to occur.  The indications of dangerous inactions by staff are there if you take the time to look, but you must read the clues.

An employee runs into your office screaming that someone just slipped and fell on a wet floor in the lobby.  The chef calls you into the restaurant regarding an allergen incident.  The doorman is helping a guest that just tripped and injured themselves on the entry carpet.  Your facility manager is tending to a guest that fell in the stairwell.  And we cannot leave out hot coffee accidents that continue to appear, albeit uncertain as to why this keeps happening.  These incidents all have the same parallel, they are preventable.  While not often reasoned appropriately, incidents of this consequence should result in management documentation because they often can become litigated. 

Generally, hospitality law requires operators to provide a duty of care against trips and other injuries, to provide food that is suitable for consumption, and more recently truth in food labeling laws addressing allergen information.  While this duty does not ensure the guests safety, the laws do say to act “prudent and with reasonable care” and that the laws do not protect an owner against charges of negligence.
Very often, accidents happen because our people are not trained to prevent such instances.  If you stand back and watch with an open eye like I do, you will understand the reasons why so many accidents happen to our guests.  One seemingly simple reason for incidents is because risk guidance is frequently absent from employee training.  

What is Risk Guidance?

Risk guidance is what supports training to keep your business safe from many of these dangers.  

This concept is sometimes difficult to put into place because management may lack training in risk management, and a lack in experience only supports an accident victims’ case against you.

To put risk guidance in perspective and make it easier to understand, train for what can happen if an employee does not follow procedure.  Take for instance what can happen if an employee walks away from a mop cleanup and the floor remains wet or sticky.  Operators often believe placing a wet floor sign at the scene removes risk or responsibility from the business, but this rarely offers any significance of protection.  

Hidden Dangers: How is your Documentation? 

There are few hidden dangers when looking at accident conditions in our hospitality environment.  As an occasional expert witness, incident conditions like these should be foreseen and prevention in place.  Simply put, risk guidance training and the documentation that tells the story of your procedures can be invaluable.  Without documentation of procedures or proof that they have been followed reduces the chance of success when litigation comes to your door.
Do not assume everyone knows how to mop and dry a floor safely, because they don’t.  This carelessness is also true for incidents of allergen concerns that are not fully understood by employees, documented incorrectly in the point of sale, or followed up improperly in the kitchen or during delivery of service.  
When carpets are not rolled properly or left upright instead of level they tend to develop raised or turned edges or ripples.  People trip on carpets in poor condition all the time.  Stairwells can have railings or stair nosing that has come loose or cracked, when work orders continually linger.  For the hot coffee burns that continually arise, let’s just say you need to have front line delivery procedures broken down and perfected to avoid this from happening.  Coffee does not have to be served above 150 degrees, it just doesn’t.  If your risks are not realized or procedures in place and properly performed, the potential for an injury increases significantly.  

Think for a second, how often do you perform risk assessment with your team?  The tendency in our industry is not so often, or not at all. 

Address the Concern Before it is Too Late 

The costly result from a customer’s injury or the closure of the business is not something anyone wants to encounter.  

Risk guidance and seconds to address a concern can make all the difference, preventing the customer you didn’t train for.
 
https://www.hospitalitynet.org/author/148003927/jim-lopolito.html
https://www.hotelnewsresource.com/article133119.html
https://www.myjourneyindonesia.id/the-hospitality-customer-you-didnt-train-for/
www.hotel-online.com/press_releases/release/the-hospitality-customer-you-didnt-train-for/

About the author
Jim Lopolito, President of Lopolito Hospitality Consultants, Corp. is a veteran of the restaurant, country club, catering & concert industries offering expert assistance with club management consulting, restaurant consulting, and other foodservice development. He has worked as an executive chef and general manager and has performed in a consulting role for more than 20 years. His proprietary “Expense Loss Review” program has been a highly sought after resource for his broad client base.

Obstacles of Performance
When you think about where most effort is placed toward achieving success, revenue generation has forever been the big game contender to focus on with labor costs as the biggest opposing force in collecting profits. While revenue must be king, awareness in other areas of operations has not seemed as important, misdirected by the influences of industry aficionados, too time-consuming, or just misunderstood.  I am talking about monitoring indicators that offer substance to how well your business might be doing. These factors can include menu mix, cover counts, labor productivity, average check, daily recipe costing, or cost of goods sold, all-encompassing a heap of information and hard work to calculate regularly.  Include effective purchasing/receiving procedures, inventory management, production and portion controls, or any other performance indicators and there is no shortage of procedural elements and calculations in our field, however, these all have their merits when it comes to profit generation.  Operators tend to ignore the tedious items, and this philosophy practice is not in your best interest.

Analyzing Guidance
Metrics have been around forever and if you work in hotels tracking Key Performance Indicators “KPIs” is an “SOP” or Standard Operating Procedure. If you work in other sectors of hospitality metrics is a newer equation to consider but this is becoming a mainstream conversation and a must-use consideration, although understanding what to track or which metrics to use remains a dilemma to operators.  While too much tracking is argumentative, restaurants are finding that they cannot continue to be competitive without the knowledge of certain performance factors.

Metrics Considerations
There is a lot to unpack here, but if you recognize future endurance as important, you must do the work to get ahead.  Adding generated metrics, which may already be built into your Point of Sales “POS” system, and redefining how you compile information and formulate decisions will be a significant step.  Secondly, you must control expenses just as much as you address revenue generation.  Metrics and cost management coincide as two conditions critical to better controls and higher profits.
Be aware that there are dozens of performance metrics out there and you must do the work implementing only what you can manage and what is best for you. If necessary, seek assistance to determine this, and perhaps use the same source to help manage the information while you adapt. I recently came across a metrics article by Francesca Nicasio that offers 22 restaurant KPIs. Here is the link: https://www.lightspeedhq.com/blog/restaurant-kpis/ ¹
 
Technology Driven Results
Barry Cohen, with The Astound Group, offers his reasoning that in today's data-driven hospitality industry, technology plays a vital role in tracking and analyzing performance metrics.  To stay competitive, operators must leverage advanced point-of-sale capabilities, kiosks, and artificial intelligence to streamline operations and enhance the guest experience. By integrating these technologies, restaurants can access valuable insights into customer behavior, preferences, and expectations, enabling data-driven decisions that drive revenue and profitability. Barry explains that AI-powered chatbots can help personalize marketing efforts, while mobile ordering and payment systems can reduce wait times and increase table turns. Additionally, advanced analytics tools can provide real-time feedback on menu mix, labor productivity, and cost of goods sold, enabling operators to adjust their strategies accordingly. To maximize the benefits of technology, operators must consider the following:

• Invest in integrated systems that provide a single source of truth for performance metrics
• Leverage data analytics to identify trends, opportunities, and challenges
• Implement automated processes to reduce labor costs and increase efficiency
• Utilize AI-powered tools to enhance customer engagement and loyalty
• Continuously monitor and evaluate the effectiveness of technology solutions

​Barry goes on to say, that by embracing technology and metrics, hospitality operators can create a competitive advantage, drive growth, and ensure long-term success, and I agree with his guidance.

Feasibly
I suggest feasibility as an initiative. Consider if your business strategy aligns with these questions.
1.    How will current transitions in guest habits and expectations upon their experiences affect your decisions?
2.    Are you considering innovative technology with advancements in point-of-sale capabilities, kiosks, or artificial intelligence?
3.    What are you doing to solve the heightened expense concerns?
4.    What are you implementing to address staffing declines or workforce uncertainties?
5.    What methods do you employ for marketing your product through the front-line team?

A starting point is to review the skillset and habits of your management because, without a team capable of contributing to your company’s development, your chances of business success are diminished.  Considerations must include an understanding of how information is gathered and how the decisions affect downstream results.  For instance, if you do not know how a dollar or more difference in cost or rate affects profits on an item you purchase or charge thousands of times over the year, evaluate one item and compound this over your inventory.  Consider 100 x 25 cents x 365 days equals a $9,125 loss, or the same in profit depending on management behaviors.

Considerations when looking to retrain your team.                                                                 
1)    Knowing who your guest is by gathering this information and using this to inspire their use, encourage additional sales, and elevate their satisfaction is paramount to influencing revenue.
2)    Demonstrating inclusive and noteworthy employee practices is a requirement to attract and retain good people and to build quality services.
3)    Operators should be proactive in collecting heads-up data and use metrics to help with decisions.
4)    Costs are skyrocketing, and operators must have a complete handle on all expenses and manage this process with a firm grip, as the alternative to this consideration can have adverse results.
5)    Operators must walk the floors talking with their customers to build relationships. Sitting in the office and not collaborating with the team is not a solution tactic.
In conclusion, operators often wait for revenue to come to them or expect profits to occur as a matter of natural principles of the process, and these strategies and doing as you always do will no longer stand up.  Doing nothing and hoping for the best only works for a small percentage of the industry, and your business may not be in this Metrics Equation.

1.       Article by Francesca Nicasio https://www.lightspeedhq.com/blog/restaurant-kpis/
If you like this article, you can locate Jim’s latest expense management book, Focusing On Expense Loss, at Amazon Books: https://tinyurl.com/2k2bpat3
​

www.hospitalitynet.org/opinion/4122687.html

MENU PRICE INCREASES NEED A QUICK REVERSE COURSE
 
When industry people get together to talk about hospitality there is never any shortage of enthusiasm. Topics of discussion often include new methods, advancements, current concerns, and directional advice, but how do you know what to accept as reasonable when there is so much information to consume? The advice you receive might be progressive; however, it can also be contradictory, one directional, and even shortsighted. You must research as much as possible to make the best decisions, and perhaps my outlook on this one topic can help you decide for yourself the importance of addressing your current pricing strategy. Otherwise, count me as the contradictory, one directional, and even shortsighted person, but also important and necessary to distinguish the difference.
 
Why a Reversal?
 
I believe present considerations on menu price increases need a quick reverse course. I say this because we are encountering reduced visits and guest spending irregularities that are triggering alarm bells with operators that are in turn countering with a drastic kneejerk response by increasing prices. This seismic reaction is in response to the pounding of higher costs everyone is incurring, but the customer market is hitting us right back with less frequency and buying less while in their seats. In my opinion, raising prices is an easy fix to counter increased costs but is perhaps a short-term solution that will backfire, and we all need to be much smarter than this.
 
Market adjustments are hammering the hospitality industry from all angles and competition is both waning and becoming more difficult at the same time.
 
According to a recent 2024 survey by TouchBistro (600 FS restaurants across the US) consumers are ordering less dishes, fewer customers are visiting during the week and on weekends, customers are ordering
less alcohol, customers are tipping less, and many other statistics are included in this lengthy report that are impacting revenue and profits. While this report can be characterized as minor to industry proportions and perhaps subjective by the type of businesses in the research, we all know these outcomes are happening and we must decide what to do about them. To read more about this survey here is the link; https://www.touchbistro.com/blog/restaurant-industry-statistics/ ¹
 
I believe that the contrast between those that successfully implement new ideas and resist raising prices and those that don’t do much of anything except raise prices will open a division between progress and failure that we have never seen before. My advice is to start reducing your prices unless you want to lose market share. I am not talking about hotel price fluctuations or dynamic pricing. I am referring to deliberately increasing prices because your costs have risen, or your competition is doing the same. Operational costs are up, however in my opinion there are other ways to address this.
 
decisions immediately affect customers’ reactions, and profits, before they are realized in reports, and this becomes compounded in one direction or the other each time the process is repeated.
 
Alternatives to Menu Price Increase
Menu prices are often random fabricated anomalies based on gut feelings with incorrect recipe assumptions, as well as kneejerk reactions to costs and competition. This is one of the most common operational flaws I encounter as a consultant. Do the work by tearing apart the fabric of every recipe, each piece evaluated for its individual cost to be applied to the full plate presentation. Otherwise, you are fooling yourself and carelessly adding to the hopeful game of revenue surpassing expenses.
Before you raise prices, fully evaluate your costs and production.

1. Reduce menu size to reduce preparation and labor requirements.
2. Locate same items and same quality for less cost.
3. Consider recipe ingredient adjustments to lower recipe costs.
4. Consider alternate preparation ideas to reduce preparation costs and labor requirements.
5. Change items from expensive and low profitability to lower cost and higher profitability.

While you do not want to upset your regulars; you also need to remain in business. Reduce your menu size and save money but do this strategically. Your menu may be too big for efficient ordering, inventory management, preparation, and delivery performance. Evaluate preparation and menu mix performance to find sales and profit laggards, find ways to reduce prep as well as waste, and look to improve overall profits. Only top and mid-level performers should be the majority and reduce the favorites that are dogs, although a lost leader here or there is alright if the planning and execution of the item has foresight considerations. If you are not generating profits on an item, you may be wasting labor hours, overordering products, overpaying for ingredients, or performing other wasteful processes, and it's time to organize a solution.
Good Behaviors Lead to Better Outcomes
Behaviors in management and methods supporting better performance have many instruments at our disposal. While it is easy to just raise prices, this is one of the last guidance recommendations you would hear from me, unless the menu engineering isn’t properly organized. Take a glance at my book, Focusing On Expense Loss, as the material offers alternatives to raising prices and other management considerations. Take a step back and look at your behavior and the reasons you are raising your prices and think about what can be done to reduce them and remain profitable.
1.       According to a recent 2024 survey by TouchBistro https://www.touchbistro.com/blog/restaurant-industry-statistics/
 
By Jim Lopolito, President of Lopolito Hospitality Consultants, Corp. (LHC), a leading consulting firm that provides forward-thinking reviews and solutions nationwide to businesses in the hospitality industry.  Advisory services are available to restaurants, country clubs, hotels, caterers, and other food service businesses with solutions for Turnaround Purposes, Operational Development, Training, Property and Facility Management, Golf and Pool Operations.  Jim is the author of the book, Focusing On Expense Loss.
 
Jim is a member with Cayuga Hospitality Consultants, which is a network of independent hospitality professionals and senior industry leaders.
 

Cost percentages are a common metric hospitality operators use to evaluate food and beverage department performance. I removed this strategy of menu pricing and performance factoring back in the early 90’s, and I am here to suggest you do the same. Percentages can be useful as a supplementary reference when read and understood correctly, although, misunderstanding or non-use of percentages is what I generally encounter when in the field.
 
For decades, chefs have been pressured to reduce their food cost percentages, however, this is an old-school approach and provides unreliable data with misleading interpretations of how well a business is performing. My suggestions of unstable results equally occur for the beverage side, but I will focus specifically on the food department. One significant misunderstood aspect evidenced is that an operator can encourage a food cost of 40% with higher profits compared to the 35% food cost they may be pursuing if the menu engineering is correct and the leveraging and selling of menu items is managed properly.
 
Another method that has been around for a long time but not as commonly used in the industry, is Contribution Margin¹. Contribution Margin (CM) is the amount each item contributes to profits and is more valuable as a tool than the food cost (FC) percentage. The method of CM includes knowing your actual recipe costs and adding a profit amount to the cost to establish the menu price instead of using a percentage. Using CM allows operators to understand and differentiate among the best items to sell for performance. A percentage-based consideration is not efficient and considers more parameters to generate answers. Contribution Margin use is simpler and when used in connection with Sales Mix² information improves a competitive edge with more profits from the same covers, thus increasing performance factors.
 
Comparing Percentage and Contribution Margin Strategies
 
When using percentages as a metric
($5 cost of recipe / 33% food cost assumption = $15.15 menu price)
1)      You establish recipe cost and menu price variances based on a balance of return that can accommodate a 33% food cost. (Adjusted based on your desired percentage)
2)      You must have control over your sales mix, which determines the balance of the food cost percentage you are trying to achieve, however, realize that a lower percentage does not mean the best profit. (Sales Mix is the variety of items you sell daily)
3)      Purchase and preparation costs must remain consistent. (When costs change percentages change)
4)      Cost Of Goods Sold data is required for daily and monthly percentage evaluations.
 
When using Contribution Margin as a metric
($5 cost of recipe + $10.15 = $15.15 menu price)
1)      You establish recipe cost and construct the menu price by adding the amount of profit desired to the cost reasonable to achieve the best profit on each item. (Percentage is not a factor)
2)      You must have control over your sales mix, however, when you know how much each menu item contributes to profits you have an advantage in knowing what to sell. (Percentage-based menu pricing does not readily offer this information)
3)      As costs change you know exactly how much this affects the item. (Percentage-based menu pricing does not readily offer this information)
4)      Cost Of Goods Sold data is not required in determining daily or monthly profits. (Daily and monthly profits are readily available with an Item Sales Report with corresponding CM profits applied)
 
Let’s assume you have a steak, potato, and vegetable plate where the recipe cost is $12 and the cost percentage on this menu item has been determined at 35 percent. Using a 35 percent food cost the menu price on this meal is $34.28, or a $22.28 Contribution Margin. Compare this with a chicken, potato, and vegetable recipe cost of $7 with a 30% food cost and the menu price for this meal is $23.33, or a Contribution Margin of $16.33, thus the chicken has a lower food cost but a considerably lower contribution to profits. With these considerations, you must decide if raising or lowering a price will factor into revenue or profits in any way, and at the same time the percentage changes. Applying percentages and chasing a target is difficult, but selling based on proactive considerations where you know the items to sell, based on what each item contributes to profits, leads to better performance
In both food cost percentage and Contribution Margin you need to understand processing, waste, and shrinkage in recipe and menu factoring.
 
Costs Management
Decisions immediately affect profits before they are realized in reports, and this becomes compounded in one direction or the other each time the process is repeated.
Methods supporting better performance have many instruments at our disposal. If you read my book Focusing On Expense Loss³, implementing cost management is essential in today’s success, and anyone who says otherwise is suggesting that expenses do not matter. Increased revenue does not equate to increased profits unless you are managing the expense side too. In today’s climate, this book offers excellent solutions.
 
Menu Mix Salesmanship
Innovative training to sell the correct menu mix is not a common tactic used by establishments as operators are afraid to share data with the teams responsible for marketing the menu. However, if your frontline people are provided the 5-10 most profitable items to market most often when tableside, higher profits will follow.
If you want higher profits, sell the higher profit items more often, but you must know what they are and not guess.
1.      Contribution margin - Wikipedia
2.      Sales Mix: Definition, Uses, and Examples (investopedia.com)
3.      https://www.lopolitohospitalityconsultants.com/focusing-on-expense-loss.html

lwww.hospitalitynet.org/opinion/4119280.html
Setting the Stage
A 363 room hotel and conference center was purchased early in 2021, but one year later, there remained significant inconsistencies between the expected operational goals by corporate and the actual performance of management. The hotel was located in Clarksville, Indiana, just a few miles from Louisville, Kentucky, the home of the Kentucky Derby.

Lopolito Hospitality Consultants “LHC” was initially tasked with a remote chef search and to restore the operational factors of the restaurant and catering, which included staffing and equipment repair or replacement. However, this initial role quickly transitioned into a request asking Lopolito to oversee all hotel operations when it became clear that his knowledge would be helpful in improving the hotel’s performance.

The Problems: Out of Order Rooms, Low Occupancy and Catering Operations
The hotel was purchased in early 2021 during COVID. The existing finance manager transitioned into the General Manager position at the time of the takeover.

As of December 2021, there were over 45 Out of Order rooms, and corporate was not being provided the exact reasons for these conditions.

Housekeeping staff was minimal and unable to keep up with the occupancy fluctuations, especially when spikes occurred. There was a regular daily occurrence of 50 or more Out of Service rooms, dirty due to inadequate staffing in housekeeping, in addition to all of the OOO rooms.

As of January 2022, the occupancy percentage was 27% with an Average Daily Rate ADR: of $67.73. Revenue coming in was minimal.

All special event catering was contracted through an off-premises caterer when food and beverage was required, as all internal food and beverage services were shut down. Revenue from these services was kept by the off-premise caterer with a small fee to the hotel, as there was no clear written agreement between parties. The Hotel opened a new café in the lobby in January 2022, providing coffee and a small number of snacks and beverages, however, the hours of operation were inconsistent.

Digging In: Executive Search
In November 2021, Lopolito, president of LHC was tasked to perform a remote chef search. To begin the search process, Lopolito immediately visited the hotel to establish the criteria of the search. The owners additionally informed Lopolito they were not pleased with the overall management. Corporate’s statement to LHC was that hotel management was not delivering efficiently on room sales, and online reviews contained abundant guest complaints and low ratings. During this initial visit, the owners asked Lopolito to perform a full review of all operations and offer a direction for improvement. Within two weeks, Lopolito presented a 16-page outline of the operations, which established development criteria.

Two months into the chef search, Lopolito was able to recommend a candidate and upon their independent review the Hotel hired the chef in January 2022. Within a few weeks after the chef arrived, the foodservice was reopened.
On February 7, 2022, Lopolito was asked to revisit the hotel to discuss the report he provided. Corporate decided that Lopolito could be helpful in turning the hotel around and asked him to take a lead in operational oversight for two months simultaneously to a search for a new General Manager.

Assessing the Hotel Issues
At the time, the hotel was still in a minimal state of operation due to COVID, but there were many issues preventing the desired growth.  Lopolito’s findings indicated there were ongoing issues of disrepair.

• Roof leaks where water was pouring down during storms in the restaurant, hallways, lobby, and in the main ballroom.
• (40) out-of-order “OOO” rooms (11% of the property) due to broken PTACs, missing refrigerators and microwaves, missing TVs, water issues with plaster collapsing, and torn drapery issues.
• Significant complaints by guests were the water issues and rooms not being ready on time.
• Kitchen equipment required repair or replacements.
• Retraining and new hiring to be performed to improve services.

Defining the Strategy: Where to Make Investments
Lopolito informed the owner’s COO that if they wanted to resolve the issues at hand they must agree to a few conditions. Lopolito was immediately provided with the approval to take charge of the following conditions outlined.

1. Two months of continuous authorization for Lopolito to enact the processes in repairs and for all hotel management and employees to respond to Lopolito’s recommendations. 
2. To allow repairing of the roof membranes affecting room repairs, the restaurant roof, the lobby roof, the ballroom roof, and the hall roofs.
3. That there be a significant budget approved to renovate the main ballroom, as this was in an unsellable condition.  Renovations required a search and meetings with vendors that could provide new ceiling tiles, 20 new chandeliers, painting of all walls, new carpeting, and other work.
4. An outside housekeeping service be contracted for a short period during the rebuilding of staff.

Lopolito will be permitted to spend as necessary to repair the forty rooms that have been out of order since purchase.

• Purchase and install 21 PTACs
• Purchase and install 25 TVs
• Purchase and install 25 Refrigerators
• Purchase and install 20 Microwaves
• Repair or replace 30 rooms with drapery
• Purchase and replace five broken on-floor ice machines

Significant to the timing of these repairs was the upcoming month of May, the busiest month of the year for the hotel due to Derby week. Without these repairs, the ability of the hotel to sell out would fall very short.

Success in Terms of Hotel Revenue
Due to Lopolito’s persistence in addressing these issues during February and March, this allowed the hotel to reach sold-out occupancy for Derby week, and a high occupancy over the course of May and beyond. 
According to the Hotel’s controller, the Hotel achieved well over $900K in revenue for the month of May 2022, beating prior years revenue by over $250,000 dating back to 2016. 

In an effort at success, there is oftentimes miscommunication between managers and their corporate entities. This may occur when repair and maintenance concerns become overwhelming, and decisions cannot be agreed upon for a path going forward. Managers must be diligent and believable in their role to achieve successful outcomes, especially when corporate expectations do not follow the same path of understanding actual circumstances or have in place an effective repair and maintenance program. 

Image via Freepik

Entrepreneurs in the hospitality industry, recovering from the grips of addiction, encounter distinct challenges in revitalizing their financial and operational frameworks. This journey, though complex, is critical for establishing enduring success and stability. It requires a nuanced blend of personal reevaluation, professional re-strategizing, and reigniting the passion for hospitality entrepreneurship. Tanya Lee of Ability Village shares more:

Recognizing Addiction's Impact on Your Business
The initial step in this transformative journey is an honest evaluation of addiction's toll on both personal finances and business dynamics. Such introspection forms the bedrock of recovery, laying the groundwork for informed decision-making and strategic development. Understanding these past influences is key to effectively steering future endeavors.

Selecting the Right Inpatient Treatment
Embarking on the road to recovery often begins with choosing the right inpatient treatment. In this selection process, factors such as the quality of accommodations, the facility's accreditations, the variety of treatment modalities offered, its location, and reviews from former patients play a significant role. Researching New York City rehab centers can help you find a facility that resonates with your needs and facilitate effective recovery.

Establishing a Supportive Network
Recovery thrives on a solid support system. Engaging with recovery-specific support groups provides a sense of community and shared experience, while financial advisors offer tailored advice for unique business challenges. This blend of emotional and financial counsel is invaluable for hospitality entrepreneurs working towards recovery.

​Crafting a Comprehensive Business Plan
Developing a thorough and realistic business plan is vital in the wake of recovery. The document should detail clear objectives, strategic approaches, and precise financial forecasts. Whether you’re in hospitality or any other industry, your business plan serves as a navigational chart for the business, guiding you through each stage of your hospitality venture's resurgence and growth.

Leveraging Digital Marketing Through Core Content
Creating compelling, high-quality content is crucial in the digitally-driven market. For hospitality businesses, focusing on Cornerstone Content is integral to maintaining brand identity and effectively engaging the target audience. This foundational content is a key component in digital marketing strategies, which are essential for rebuilding and expanding the business's digital presence.

Implementing a Feasible and Balanced Budget
Central to financial recovery is the establishment of a feasible budget. This involves prioritizing necessary expenditures, reserving funds for unexpected needs, and balancing immediate requirements with long-term plans. A well-structured budget is fundamental in regaining financial control and steering the business towards profitability.

Managing Debts Through Negotiation
A pivotal aspect of financial recovery involves addressing existing debts. Engaging in negotiations with creditors and considering debt consolidation options can lead to more manageable repayment terms. Professional assistance is often advantageous in these complex financial discussions. This process not only alleviates immediate financial pressure but also paves the way for a more sustainable financial future, crucial for the revitalization of your hospitality business.

Remaining Positive and Goal-Oriented
A positive mindset and focus on long-term objectives are crucial throughout recovery. The path is fraught with challenges, but maintaining an optimistic outlook and dedication to future goals is essential for achieving lasting financial stability and entrepreneurial success in the hospitality sector. Embracing this positive attitude fosters personal well-being and injects vital energy into every aspect of your business, inspiring innovation and attracting success.

Summary
Embarking on this journey to rebuild finances and reestablish business success post-addiction is a true demonstration of resilience and resolve. It demands a comprehensive approach encompassing personal reflection, strategic planning, and effective financial management.

The path of ongoing learning and growth leads not only to financial recovery but also to a richer sense of personal achievement and revitalized entrepreneurial spirit in the hospitality industry. Remain steadfast on this path, and the future will reveal opportunities brimming with potential and promise.

For additional information regarding hospitality industry consulting services, reach out to Jim Lopolito at www.LopolitoHospitalityConsultants.com

Tanya Lee is a writer supporting handicapped individuals in hospitality.
The posts by Tanya Lee reflect her vision of support for the hospitality industry, but may not reflect the opinions of this site or Jim Lopolito, and Lopolito Hospitality Consultants does not represent Tanya Lee on her issues. 

BY TANYA LEE
​
In the high-speed, demanding environment of the hospitality industry, achieving career success requires a specific combination of skills and personal qualities. Fortunately, there are several things you can do to ensure that you’re ready for such a career no matter what your goals are. This article offers a comprehensive guide, outlining six critical strategies that are essential for your career advancement in this field.
 
Master the Art of Communication
Verbal and written communication skills stand as the linchpin of the hospitality business. The quality of interactions you have with guests, teammates, and higher-ups can make or break your career. Elevate your command over language to ensure that your guest interactions are not just transactional, but transformational. Being a clear and empathetic communicator fosters a better work environment and leads to more satisfied customers.

Commit to an Unwavering Professional Ethos
The importance of commitment and rigorous professionalism in the hospitality sector is paramount for anyone aiming for success. Core aspects that construct a robust work ethic are not limited to just showing up on time, but also encompass steadfast reliability and a proactive attitude. Being prepared to stretch your limits and take on tasks outside your comfort zone demonstrates your commitment to your role. Meeting challenges head-on is an opportunity to not just fulfill but exceed guest expectations, setting a high standard for quality service.

Amplify Your Career Profile with Digital Aids
In today's digitally-driven landscape, your resume essentially serves as your virtual handshake with potential employers. To craft an eye-catching and current CV, try this free online resume builder. The tool can help you structure your qualifications, skills, and experience in a format that's both modern and professional. The focus should be on highlighting your relevant expertise, significant career milestones, and any special achievements that set you apart. A well-crafted resume can be your ticket to standing out in the crowded field and landing that crucial interview.

Keep a Finger on the Industry's Pulse
Long-term success in the hospitality arena necessitates an in-depth understanding of its ever-shifting landscape. Make it a habit to read up on market trends, technological advancements, and emerging consumer preferences. Attend relevant workshops, trade exhibitions, and industry conferences. Networking with professionals can open doors to opportunities and help you stay ahead of the curve.

Foster Genuine Connections Through Compassion
The heart of the hospitality sector lies in human connection, made meaningful through empathy. Develop your capacity for understanding the needs and feelings of others, be it guests or co-workers. This ability can transform ordinary customer interactions into memorable experiences. Furthermore, a compassionate approach towards team members encourages a cooperative work environment, which is indispensable for career advancement.

Optimize Your Time Management Skills
​Managing your time efficiently is especially vital in an industry where juggling multiple tasks simultaneously is the norm. Acquire the skills needed to make quick but informed decisions under pressure. Learn to prioritize your duties effectively and delegate tasks when necessary. A disciplined approach to scheduling can help you meet deadlines and deliver top-notch service without feeling overwhelmed.
​
To solidify your trajectory in the hospitality field, focus on becoming an adept communicator, cultivating a disciplined work ethic, creating a solid resume, staying updated on industry trends, establishing meaningful relationships through empathy, and mastering the art of time management. By diligently implementing these six pivotal strategies, you will be creating a foundation for a rewarding and enduring career in a sector known for its dynamism and challenges.
​
Are you a business owner in the hospitality field? Get in touch with Lopolito Hospitality Consultants today to learn more about the services provided.

Tanya Lee is a writer supporting handicapped individuals in hospitality.
The posts by Tanya Lee reflect her vision of support for the hospitality industry, but may not reflect the opinions of this site or Jim Lopolito, and Lopolito Hospitality Consultants does not represent Tanya Lee on her issues. 

​For young adults with disabilities, making decisions about your future career can be difficult. You may not necessarily know which industries will be the most accommodating, or you might be hoping to secure a remote position so that you can work from home. However, you could be perfectly suited for a career in the world of business! Here are a few tips to get you started on your journey.
 
The Benefits of a Business Career
 
Why should young adults with disabilities consider studying business and entering this field? You’ll find relevant job openings no matter where you live, and today, you can easily translate your business skills to remote positions. Plus, employers will generally offer good benefits packages, which means you’ll receive the coverage you need to cover any medical expenses.
 
Another benefit of a business career is that you have the opportunity to complete your work from home. Remote work has become more commonplace, especially for those who work in business or own their own business. However, make sure you are legally allowed to work or operate a business from a home, especially if you rent.
 
Choosing a Lucrative Degree
 
“Business” is a broad umbrella term, so if you’re interested in going to college, you have plenty of degree options to choose from! Majoring in a subject like finance, economics, business administration, or management information systems could lead to particularly lucrative job offers.
 
Whether you’re enrolling in an online degree program or attending classes at a brick-and-mortar campus, you are entitled to reasonable accommodations from your professors. University Business states that you will need to get in touch with your school’s disability services office before your program starts.
 
Landing Your First Internship
 
While studying for your degree, you can also pursue internships! You may want to reach out to your university’s career services office to see if they can recommend any companies to look into. Make sure to polish up your resume and practice your interview answers before you send out applications.
 
You can always request accommodations in the workplace—and yes, this applies at your internship! Whether you need schedule adjustments, certain technical tools or programs, or even structural accommodations in your office space, you can talk to the human resources department about these matters.
 
As part of your internship search, it’s a good time to set up a LinkedIn profile if you haven’t already done so. While it is a social networking platform, LinkedIn is different from others in that it is professionally focused, so there are mistakes you want to avoid. Be sure to complete your profile including adding a professional headshot. When listing your personal information and professional accomplishments, always be truthful. Lastly, keep any status updates you post generally positive.
 
Starting a Freelancing Business
 
Many people with disabilities turn to freelancing for the flexibility that this career path offers. You can take on clients whose needs mesh well with your own schedule and turn down time-consuming projects if you know that they would prove to be overwhelming. Plus, you can work comfortably from home! If you need to flesh out your resume, or if you haven’t landed the job you want yet, freelancing is a good way to advance your career.
 
Which professions allow you to freelance easily? There are plenty of options! For instance, you could work as an app developer, a business consultant, or a digital marketer. To begin looking for your first clients, check out online job boards. You can make a profile and browse available projects. You’ll be able to evaluate delivery times and rates before pitching, and clients can also check out reviews of your previous work.

If freelancing is your passion and you decide to pursue this as a career path, don’t forget to officially start a business by establishing a business structure, registering your business name, purchasing a domain name, starting a website, starting up a marketing campaign, and so on.
 
When choosing a tax designation and deciding between C corp vs S corp, know that S corps are subject to special tax treatment, meaning that profits and losses are passed through to shareholders, who then report them on their individual tax returns. C corps, on the other hand, are taxed separately from their shareholders.
 
When you're ready to start your business, you'll also need to start thinking about how to get funding. One of the first things you'll need to do is pull your credit report. This will give you an idea of what potential lenders will see when they look at your credit history. If you have a strong credit score, you'll be more likely to get approved for a loan or line of credit.
 
Getting a Job Offer
 
If you were happy with your experience at a particular company as an intern, you may want to inquire about job opportunities with the same employer. But if you’re ready to try something new, you can ask your former supervisor for a positive reference and begin looking elsewhere! No matter where you work, it’s important to remember that you always have the right to advocate for yourself.
 
Being a young adult with a disability in the workplace is not always easy. Unfortunately, barriers to gainful employment do still exist. But by starting your own company or working toward a career in business, you can find jobs that allow for necessary accommodations while providing a sustainable income and benefits.
 
 
Tanya Lee
abilityvillage.org


Tanya Lee is a writer supporting handicapped individuals in hospitality.
The posts by Tanya Lee reflect her vision of support for the hospitality industry, but may not reflect the opinions of this site or Jim Lopolito, and Lopolito Hospitality Consultants does not represent Tanya Lee on her issues. ​
 

The All-Electric Commercial Kitchen
Electric kitchens? Yes, if you are looking to open a restaurant, I say that this may be the time to consider an all-electric commercial kitchen, especially with the high costs of hood exhaust systems, return air, Ansel Fire Suppression Systems, gas and air relay cutoffs, inspection and permitting waits and requirements, and other excessively high costs to open and run a commercial kitchen using gas. The upfront costs to open a restaurant are exorbitant.
Don’t be mistaken, electric cooking in a commercial environment is an entirely different way of production, and adjusting to this way of cooking takes consideration. The available equipment to decide upon varies, however, there are excellent electric fryers or air fryers, pizza ovens, flat-top grills, induction elements for sauteing, conventional convection, and fast cooking microwave combi-convection ovens to select from.
To consider this path means your menu must be simplified with a transition away from the traditional, however, there are great foods to be had in the process. And, while there are no more flames, you may have a lot less grease.
Take chicken wings or pizza for that matter. These are both mainstream items for bars and restaurants, and they can be cooked to perfection in only a matter of a few minutes. Each item created has the potential for the same perfection every time, due to regulated timers and crafty recipe building. The search for quality products that cook well when using electricity is part of the challenge.
LHC just completed a design and implementation of an all-electric kitchen in Middletown New York at an indoor amusement center. While the kinks to our menu and use of the equipment by the new cooks have some getting used to, the decision to build this kitchen has the owners ecstatic. Previously, the patrons would purchase their food from a neighboring restaurant, the staff would go pick this up for their guests, and who do you think footed the bill for this and cleanup and disposal?

The Electric Menu
Think Simplicity in the Beginning.
​
Let’s start with simple menu items that are easy to prepare and cook. Nachos, pizza, hot dogs, fries, and chicken wings are all great bar food items that can give you the ease of preparation and rapid cooking times. From there, you can develop your menu to afford casseroles, stuffed proteins, and other main course dishes. The important thing is the ease and quickness of preparation and simplicity in cooking. Some meals will require one step of cooking while others will require two or three steps to the cooking process. Many items are already programmed into the microwave convection ovens, however, I have found that adjusting these presets is often necessary.

Equipment & Electricity
The equipment you select must be mapped out just like a normal kitchen. First, the menu ideas should be considered, and an accompanying piece of equipment would coincide with this. For instance, French Fries or Chicken Wings would require a microwave/convection combination oven, whereas, a pizza can be cooked similarly or in a tabletop pizza oven that can reach 800 degrees. Pizza in a combination oven, however, can turn out less crisp if not regulated properly. The importance here is to know the equipment best suited for your needs and results.
Many of these units will require various electrical connections like 120V, 208/240V single or three-phase, where some are interchangeable with breakers but expect 20-50 amp breakers to be needed. I suggest, hiring a qualified electrical technician. For code requirements.
 The bottom line is, that commercial electric kitchens may be our answer to significantly cutting buildout costs.

Without clarity, you may think this phrase is pretentious and absurd. I had the nerve to say this to my club’s treasurer years ago, then he immediately threw me out of the office. Really, this happened.
I have a philosophy behind this assertion.

While people react passionately to food, there must be a united establishment behind the affair.

I tried to explain this to the treasurer, as I could call any member and they would get on the phone within moments. You may say your membership does the same, however, this club’s memberships were doctors and executives associated with a leading medical school and numerous well-known hospitals. Try to reach your doctor with a quick phone call or call the office of the president or the dean and see how quickly you are talking to the leadership. In my case, I was able to talk almost immediately to doctors, presidents, the dean, and many executive members within moments, or they would call me right back. This was the relationship, and without hesitation, I can say this was power. Not power in the sense of control, or oversight, or strength over another, but acknowledgment from providing quality, and services, and comfort, and especially loyalty. This was loyalty to the position and the role behind the responsibility, and the membership responded with the same gift of respect. They did not perform this way because they had to, but willingly for they knew the value and wanted this relationship to be maintained.

I say food is power when this ability is compounded by many exceptional factors. The membership in this club was respected by me. Every member was regarded with the organization of knowing their likes, their needs, and their wants, oftentimes even before they knew what they wanted. Called by name upon arrival, seated immediately and oftentimes their favorite table, and offering their favorites while keeping them delighted with surprises as often as possible. The compounding of concerns to service and attention to details is especially important to success, yet the engagement of this commitment is oftentimes invisible or inconceivable in foodservice.

The consideration of treating people exceptionally, both guests and employees, is generally a common denominator in the club industry, but not in restaurants. However, this mindset may be needed in the transitioning of restaurant services in 2021 and beyond. The contemplation of a dramatic change is upon us, and without this consideration, we may see a further collapse of restaurants. Beware, a back-to-business-as-usual concept will be a cause for disappointment.
​
The understanding behind food is power is when an owner or manager realizes and provides the unquestionable realities that are required for success. If you harness an incredible atmosphere, encourage creativity, employ people that pass along this passion, and offer it unconditionally to your members and guests you will create an outcome that will attract business, and everyone will reap the pleasures that you have to offer.  

We have the power to change people’s lives, albeit only for a moment.

You make sacrifices, you treat people well, you perform the role with heart and caring, and you change people’s lives. Hospitality is about power, but the kind that is given, not received.

By the way, the club’s treasurer was the Senior Associate Dean Director of Finance and whenever he was too busy to talk to me, I would return with hot fresh chocolate chip cookies, and he would always wave me in. True story.

Jim Lopolito, President
Lopolito Hospitality Consultants

THE DILEMMA OF HOSPITALITY TEAMS AND SALARIES IN 2021

When we compare satisfied employees with good pay the hospitality industry has been in a condition of instability and this began prior to 2020. While a solution has encompassed different directions but never resulted, the dilemma is being further plagued by an unexpected new competitor paying all our staff, and they are paying them a higher wage.

Rates of pay have been a hot topic for some time now, however, the burden upon businesses satisfying salary expectations has been further complicated in 2020 and now 2021. Front of House and Back of House staff have been talking better pay for years. With the current unemployment benefits going until September 2021, it will be difficult to get employees to return to work. The new unemployment benefits are offering the customary amounts plus an added three hundred dollars in supplemental pay. This means $500 to $800 a week salary for sitting home. Will we see staff return to a job that has many hours of stressful work, often difficult conditions, sometimes low morale and poor treatment, and less pay, or will this cause workers to stay home?

While I applaud the much-needed money for many families, how must we react to keep our businesses open and staffed?

Hospitality staff have been running to other jobs outside the industry for some time and even more so after COVID canceled their jobs. Many social posts by foodservice employees and especially chefs are all talking and telling each other about the difficult work environment with less available workers by their side. They are sharing discussions about better jobs and reasons to not return. The industry is a killer when it comes to hours worked for the often talked about unrealistic workload to pay received. Changes have been occurring to better the level of income; however, it may be a little late. While passionate staff will hopefully remain, it is more difficult to keep required staff levels, and turnover is only going to increase in the months ahead.

The options to bring staff back may be limited right now, and do not believe that this is going away any time soon. Staff is running to other industries than food services and they are taking their friends with them. If you do not settle upon a way to secure your team, and soon as summer is coming, you may be left holding up the business with limited staff. As the owner or manager, you will do a lot more than you expected or can accomplish.

We are in a serious position with staffing our restaurants, our private clubs, our café’s, and our catering businesses unless we can come up with solutions.

In addition, low levels of staff and high turnover associate with guest dissatisfaction. We all know the outcomes of poor service and lower quality food output. From losing customers to paying the price in online posts that kill business, now is the time to step up with a plan.
 
What can you do short term?

1)     Enlist good quality ad-hoc staff on the busy days and pay them well so that they will work the days offset from unemployment benefits. If they can pick up a Friday, Saturday, or Sunday at a good rate, and perhaps still receive a good portion of their unemployment benefits, this is a win for both.
2)     Reboot your menu with lower-cost items with less prep and cooking needs to reduce staff requirements. Pay the people you have a higher wage to keep them. While not for every category, this may suit smaller locations over the short term of 2021.
3)     You made it through the 2020 season and want to meet the demand of added revenue from the locations nearby that may have closed. Put this to the test and increase your rates of pay, add between 10-50 cents per menu item, concentrate on other cost reductions, and teach your team what items have the highest potential for profits. Keep in mind that the higher-cost items may yield the most profits. Sell profits.
4)     Purchase the restaurant next door that closed during COVID. Utilize this addition to maximize your staff needs and your preparation needs. IE: all prep is done at one location, the staff has more hours available and work security with two locations, transfer product between locations as necessary to improve utilization, use one location as a commissary kitchen (Ghost Kitchen), etc.
5)     Sell safety over food and service. Guests are more interested in how safe they will be over how good your food or service is. Tell guests what you are doing and Sell Safety to get them in the door.
Whatever you come up with, business as usual is not coming back anytime soon. You cannot wait until things settle down because too much has changed.

The way you did business in the past is gone for now. Step up and plan.

Jim Lopolito, President
Lopolito Hospitality Consultants, Corp. (LHC) is a New York based consulting firm that offers Recovery Facilitation, Startup Development, Feasibility Studies, and Forward-Thinking Solutions alongside Operational and Management Practices to businesses in the hospitality industry.
 

 The Consideration of Ghost Kitchens
If you do not know what a Ghost Kitchen is you are paying too much attention to running your hospitality business and not enough time to look at other avenues of revenue to remain solvent. Being tied to operations can cause inaction to other opportunities and can prevent revenue growth, and this year more than ever adjustments to daily developments have consumed management. While a Ghost Kitchen may not be for you, as they can certainly fail if not properly planned, let’s study the possibility of more revenue out of your existing kitchen or perhaps at another location.
 
The Do’s and Don’ts in Considering a Ghost Kitchen “GK”
 
While a Ghost Kitchen is not for everyone, if you have the capability for additional output from your existing kitchen this may be something to consider. Even if you do not believe it, the COVID era has brought on opportunity like no other to the restaurant industry. If you plan right, you can gain some of the lost revenue through the closed locations in your area.
 
Looking past the difficulties, rethink what is going on right now in your kitchen and decide if other possibilities can be realized.
 
Do You Have?
 
1) A double line setup?
a. Two sets of kitchens.
b. Two sets of equipment.
c. A section of kitchen and equipment not being used.

2) An unused room that may be adjacent to the wall that occupies the existing hood?

3) Enough prep area, additional space, and storage to accommodate two or more concepts separately?

4) Enough daily downtime to offer alternative cooking preparations, simultaneously or not?

5) A team that has various cuisines experience?
 
While the GK idea has been around for a while, the COVID era has opened the door as the perfect time for this concept to be further evaluated. Also called the delivery kitchen and other names, and with the numerous restaurants unfortunately closing, this opens the path for new business to be established right away at your location. Look around to notice how many of your neighborhood restaurants are now closed. While this is really unfortunate, it’s also an opportunity.

1) What are some of the successful cuisines in your area that are now gone?

2) How much revenue is now available for you to pick up from these closed locations?

You need to be asking yourself these and other questions right now. Yeah, we all feel bad about our neighbors and this is really unfortunate, but you also need to survive, don’t you? Stop thinking that it is the end and you are unable to compete, and start planning for next year right now.
 
We can safely assume that your revenue of the past has some time for rebounding, so taking this time to add services might work out just fine. However, be warned, I believe that this is a short-lived concept that only the best will succeed with over time. This must be planned, designed, fully incorporated into current operations, or unless you can provide another location. This is not just a prototype even if you believe you will only do this for a year. You must go full barrel and it must be heavily marketed. You must have significant delivery capacity in your area and the ability to produce great food that travels well to succeed. (Think hamburgers that arrive well done when ordered medium-rare. If only we could consume the fact that food keeps cooking during delivery)
 
You may even close your dining room and go full out GK if you want, but I would not advise losing current revenue just yet. However, this is just like opening a new business, so the planning is similar and so are the licensing requirements. You can also forgo the dining room. Yes, the dining room and bar do not exist in the GK scenario, just the kitchen, and storage. You could also outsource the portion of the kitchen and charge rent; however, this can become troublesome as a partnership so think this through beforehand, as I am not recommending this strategy. Do it right and do it yourself.
 
How can you decide if a GK is for you?
 
1) You need more revenue, or else.
a. If you are contemplating closing and have no other revenue sources.

2) You have the capability to create another one or two concepts internally.
a. Discuss other concepts with your team and create a small delivery menu.
b. Can you offer another cuisine alongside your current offerings, staff, and same equipment, or does this need to be accommodated off-times or from another kitchen?

3) You have the room in the kitchen and the equipment to support additional volume.
a. You have great cooks with multiple cuisine knowledge.
b. You are in a delivery stable location.
c. This is a no brainer. If your equipment is standing still, use it.

4) You have an additional space that may even be adjacent to the wall that occupies the existing hood.
a. Costs to tie-in to an existing hood and the location of gas lines in the adjacent wall can save you renovation money. Make sure the hood can accept the additional capacity, or add a higher capacity fan, and the gas measurements hold up for the additional equipment.
b. You will still have to obtain building permits just like anything else.
c. You will need to register and license the new concept.

5) You have use of your own delivery staff or outsourced services from food delivery organizations. 
a. Remember, this is a delivery-only service you are building, although pick-up can be offered.

6) There is a small restaurant next door that closed. Can you revive this as a stand-alone Ghost Kitchen?
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You began your first restaurant and you may even have more than one now. Consider this an extension operating simultaneously or at random intervals consistently. If you do not want to encumber your current location but have the funds to open another restaurant, think GK instead. Additionally, consider opening a GK at an offbeat location behind a warehouse, still within delivery opportunities, with low rent, and just build a kitchen operation.
 
Whatever you go GK or not, don’t sit still. Now is the time to start planning your growth. Whether this is a Ghost Kitchen or another restaurant, get to work. The time to plan could not be better.
 
Good luck!
 
Jim Lopolito, President
Lopolito Hospitality Consultants