How to Adapt to Rising Minimum Wage

Meet the Speakers

Robert Ancill

CEO, The Next Idea Group, Restaurant and Food Consultants

Robert runs an L.A.-based restaurant consulting agency that specializes in new concepts, management, design, turnarounds, franchising, operations, and international growth. He is widely considered the ultimate authority on restaurant trends, operations, and international markets.

Bruce Macklin

Consultant, TouchBistro

In the industry for more than 20 years, Bruce started in the dish pit and worked his way up to management, helping restaurant owners cut costs, manage staff, and fine tune operations. At TouchBistro, he sets restaurants up for success with deep knowledge of the industry and the technology restaurant owners need to run their businesses.

Tiffany Regaudie

Webinar Moderator & Content Marketing Manager,

TouchBistro

Tiffany led the report on The State of Minimum Wage for Restaurants to equip restaurateurs with the knowledge they need to remain as profitable and thriving as possible. She also regularly writes about how restaurateurs can run a better business.

--------------------------------------------------------------

A little Bit About TouchBistro

About TouchBistro

• #1 iPad POS in ma US.
• Used and loved in 100+ countries
• 12,000+ restaurants powered by TouchBistro
• Built for restaurant people by restaurant people
• We help restaurants make more money, deliver a better guest experience, and make better business decisions with actionable Insights

Restaurant Insights Report

Problem

Restaurants need to adapt to rising minimum wage. What are some of the best ways to do this?

Research Questions

• How much are labor costs increasing because of minimum wage?
• What is the overall impact on profit?
• What solutions are restaurants using to offset extra labor costs?
• What is the impact on employees?

About the Research

• Conducted by Maru Matchbox research firm on behalf of TouchBistro
• Feedback from restaurant owners and staff in U.S. who live in one of the 18 affected states

Respondent Profile

Report Highlights

• Expected 2018 Restaurant
• Labor cost increase

Overall, 77% of restaurants surveyed have seen shrinking profits because of the minimum increase.

--------------------------------------------------------------

WHAT WE FOUND

3 Most Common Solution for Offsetting Increased Labor Costs

Owner Behaviour If Profits Are Shrinking

Risks To Consider

So What Now ?

How do I actually deal with higher labor costs?

--------------------------------------------------------------

RECOMMENDED SOLUTION #1

Create New Revenue Streams

• Open your space for events and classes on slow nights
• Hire out your staff for outside events
• Rent out your kitchen as a commissary for food trucks or "ghost restaurants"
• Turn your kitchen into a production kitchen to sell prepackaged food (sauces, dips, frozen products, etc.)

RECOMMENDED SOLUTION #2

Strategically Adjust Menu Prices

• Calculate the true cost of each menu item
• Calculate contribution margin
• Adjust prices of individual menu items based on:
• True cost
• Contribution margin
• Competitive analysis

Benefits of Menu Engineering

• Leading customers to specific purchases (away from others)
• Increasing average check size
• Maximizing a restaurant's profitability

RECOMMENDED SOLUTION #3

Leverage New Technology

Take Out Technology

• Online ordering through your own site
• Third-party online ordering (e.g. Uber Eats, GrubHub, DoorDash)

IT'S 6% CHEAPER TO GENERATE A TAKEOUT VS. FULL-SERVICE ORDER.

 

STAFFING TECHNOLOGY

• Labor reports
• Restaurant scheduling software (e.g. 7shifts)
• Schedule according to your needs
• Reduce overtime
• Redeploy staff

AUTOMATION TECHNOLOGY

• Kitchen Prep
• Self-ordering Kiosk

--------------------------------------------------------------

 

TOP TAKEAWAYS

• You can't control rising minimum wage, BUT you can find new ways to cut costs and increase sales.

• Avoid staff cuts, blanket menu price increases, and reduced operating hours.

• Find new revenue streams by thinking about your business as more than "just a restaurant."

• Strategically adjust menu prices for single items by looking at food cost, profit margin, and the competition.

• Leverage technology to bring in new customers through takeout, make more informed staffing decisions, and improved FOH and BOH efficiencies.

 

--------------------------------------------------------------

 

About The Company

The Next Idea was built on the simple premise that Ideas and Execution must be synchronized. Contrary to popular belief; a good Idea has no value on its own, just the same as a bad Idea, executed flawlessly, and equally possesses no value. However, a good Idea implemented with methodology and immaculate execution will transcend boundaries at every level. It is this most basic of theories that represents the foundation of The Next Idea!

 

Contact Us :

Company : TheNextidea

Website : https://www.thenextidea.net/

E-mail : info@thenextidea.net

Phone : +1 818 887 7714

Reference :

How to Adapt to Rising Minimum Wage

Top Restaurant Design Ideas

People dine in restaurants for many reasons such as to refresh their mood, to celebrate their special occasions, to eat a variety of food and to gain a wonderful experience. A beautiful and attractive interior is the prime thing that a customer considers before even tasting their choice of food.

Ideas to design your restaurant

A creative, colourful and enticing interior of your restaurant is a great idea to attract customers to step in. Professional and well-dressed staffs reflect your restaurant's reputation and class that make them visit from time to time.

There are many designing ideas that you should take care for attracting a large number of customers.

• Interior colour themes: Applying the right combination of colours grabs enough appraises or comments if the combination goes wrong. How do you describe your feelings if you see someone wearing yellow pants and a green shirt? Consider the colour that matches your restaurant's theme, furniture etc. For example, if your restaurant has more vegetarian dishes then you can consider green as the main colour otherwise brown.
• Upholstery: It is important to keep a proper check on your upholstery. No one wants to eat on an untidy tablecloth. Be proactive and get them changed as soon as customer leaves. The kitchen area is more prone to stains. It is important to maintain the hygiene for a good serving experience.
• Artwork: Artwork looks fantastic wherever applied but it should be specific and according to the theme. A wrong form of art can ruin the whole picture.
• Menu Design: A menu is a very essential part that depicts the whole picture of your restaurant's cuisine. It should be designed with proper care and in a professional manner. For example, describing a simple vegetarian dish 'Cheese Pasta’ can also be mentioned as ' Red pepper pasta served with ricotta cheese and marinara'. The latter one laid a great impact on the customer's mind and also increases appetite.
• Music: Addition of a light music or according to the occasion enhances the customer's dining experience.

Designing of a restaurant is very important to boost up your restaurant's image.

To know more about, Top Restaurant Design Ideas, you must visit our website

How To Open A New Restaurant?

You need to make huge commitments once you decide to open a new restaurant. The experienced owners have a clear idea of the procedures to be followed from back to front. It simply means they know what to cook in the kitchen and also the process of registration. The most important tip to succeed in your restaurant business is that you have to give your 100%.

Things to consider before opening a new restaurant

Your staff holds many contributions in the successful running of the business. It is even more important for the restaurant owner to know the practicality of the things and to take essential steps whenever required. There are many things to watch out for when you decide to open a new restaurant.

• Define your concept: The primary step is to decide your concept that is who your target audience is? What cuisines do you offer? Are you going to serve alcohol or what type of equipment you need etc? Also, you need to conduct a thorough research of your neighbourhood, about their offerings and does your business matches their theme etc. The successful foundation of the first step will lead you in the right direction.
• Write a business plan: In the next step you have to make your business plan in a step by step process and how are you going to achieve it. This step includes describing your objectives, your restaurant's name and logo, statistics of the summary of market analysis that has been performed in step one, your restaurant's financial plan and its strategy of implementation. This step help you get reliable investors.
• Get funded: This step is to generate funds by hiring potential investors for your restaurant's business and to know where you can get business loans.
• Consider technology: Due to advancement in technology it is critical to consider introducing the most reliable for your business. Consider questions such as how customers can find you through mobile, identifying directories you can add yourself, the integration of social media to your restaurant etc.
• Hire your staff: Choose staff wisely by analysing their skills and expertise.

Proper execution of these steps helps you in setting up a strong structural foundation.

To know more about, How to open a new restaurant, must visit our website

How to choose a good restaurant franchise consultant?

A great way to grow your restaurant is its franchising. Getting the help of a good franchise consultant can be helpful for your business expansion. An experienced consultant can tell the actual condition of your restaurant and also to how much extent it requires a franchise consultant.

Selection of an efficient and suitable franchise consultant is not easy; it involves a lot of business planning and market research. An experienced consultant helps you develop your franchise concept, provides relatable guidance and support and also help in dealing with regulatory issues. Though these advantages look great to you they are not uniform or guaranteed.

Here is how you can find a quality franchise consultant for your restaurant.

Certification: It is good to ask the franchise consultants about their certification in the field. A proper certification provides you evidence of their good and appreciable work in the related industry.

Fair pricing: Pricing of the consultants depends upon the work involved, type of plan and popularity of your business. It is good to compare and consider all the aspects from various consultants to choose a competent deal.

Specialization: A specialized consultant is well aware of the current industry trends and market conditions. They can use their so far experience to conduct proper research of your business and helps in developing suitable marketing strategies that are beneficial in your business expansion.

Experience: Be specific to look for an experienced franchise consultant. The more is their experience the better job they perform in helping your business grow. Also, consider their work type and the restaurants they have worked with in the past. This can give a brief overview and make your work easy.

Successful track record: A consultant with a successful track record has enough exposure of working with various companies delivering fruitful results. It is good to consult those restaurants for which that consultancy worked. This helps you get an exact condition of their track.

Marketing expertise: Consultants should be legal as well as marketing experts. Select a consultant who can deliver marketing in your franchise plan.

Always look to hire someone who’s working style and work ethics match with yours. To learn more visit our website.

Idea About Opening A Restaurant

The idea of opening a restaurant is accompanies a few questions such as what kind of restaurant you want to start and how much are you capable of running and expand it. Here are a few questions you need to answer yourself before opening a restaurant.

Am I capable of dedicating more than 40 hours a week?

Can I efficiently manage people or do I enjoy doing it?

Will I not get distressed without being paid for my work for a few months?

Am I opening this as a hobby or my major profession?

Who will be the in charge after me etc?

Facts To Consider For Opening A Restaurant

Except for these five questions, there are many important things you should consider before opening a restaurant.

How to decide the location

Location of a restaurant plays a very important role in its successful running. The restaurants in the centre of the city, near offices etc where it is likely to happen a lot of rush every day are easily accessible to customers. People can hop in during lunch hours or can arrange an office party at your restaurant if it is at a convenient location.

Choosing kitchen equipment and raw material

Latest kitchen equipment and fresh quality raw material makes the job of kitchen owners easy and helps in delivering quality food in a short period of time.

License and registration

It is important to avail valid license and registration for your restaurant to avoid any legal complications.

Workforce or manpower

It is important to hire suitable staff and in sufficient quantity. You should not stuff your restaurant from workers as they may cost you more and also their deficiency results in unsatisfying results.

Marketing the right way

Marketing of your business is very important and the selection of right marketing strategy for restaurant is even more important. Choosing the right form of marketing can take your business to heights.

Financing

Make a note of your financial performance target, ways to accomplish your goals and how to expand further.

The plan for opening a restaurant cannot be accomplished by considering a few facts, but one can get an idea about the situations and concept.

To gather more information about the opening a restaurant, visit our website