World class hospitality expertise
“Over the last two decades, the number of people per restaurant has decreased by around 20%. We estimate that in 2023 the growth in restaurants is outpacing population growth 3-to-1. In other words, saturation is increasing and differentiation is ever more important. Don’t be a statistic. Distinct or extinct.”
—Aaron Allen & Associates
“Menu Maestros – Crafting a Profitable Menu for Tomorrow” by Craig Shelton
The Restaurant Business Model was ways based upon financial fallacies. By understanding what the finance community got wrong when using the “Retail Store” model, we can improve profitability by as much as 3,000%.
Enlightened Menu Pricing
A. Here is an entirely different way to take a restaurant from the national average of 1% profit all the way to 28% by cutting wine prices IN HALF!
Enlightened Labor Cost Management
B. SPEND MORE ON LABOR TO REDUCE LABOR COST — Profit Goes from 1% to as High as 30%!
Charlie Munger’s Mental Models
C. Hone your critical thinking skills to uncover your own solutions to what were unsolvable before.
…LOT MORE, TOO!
“Navigating the Evolving Restaurant Landscape” by Craig Shelton
“I’m going to share a new KPI that will totally change the way you think about your business. It will expose just how incorrectly we have been thinking about our businesses and it will reveal innumerable solutions to your problems that have been hidden from view up until now.
THE IMPLICATION IS THAT PRICING AND PROFITABILITY IS MOST HIGJLY CORRELATED WITH NUMBER OF TURNS – NOT COST CONTROL
This information radically changes how one should manage a restaurant.
Managing Labor to Cost Percentage is nearly always wrong (unless you are that one-in-a-thousand restaurant enjoying the best location and the greatest number of turns in your genre.
Managing Food Cost to a Cost Percentage is always wrong if you are using the standard model pricing formula.
We will explore dozens of ways to take advantage of these unique insights in tomorrow’s module, “Menu Maestros – Crafting a Profitable Menu for Tomorrow – Craig Shelton”.
https://www.therestaurantcoach.com/the-restaurant-success-summit
Recent research from McKinsey confirms that unfulfilled purpose and unfulfilled belonging are the two greatest factors “in the current spike in employee attrition. The top two reasons employees cited for leaving (or considering leaving) were that they didn’t feel their work was valued by the organization (54%) or that they lacked a sense of belonging at work (51%).”
https://hbr.org/2021/10/to-retain-employees-give-them-a-sense-of-purpose-and-community
https://www.therestaurantcoach.com/the-restaurant-success-summit
“This paper provides evidence from the US and Denmark that managers with a business degree (“business managers”) reduce their employees’ wages. Within five years of the appointment of a business manager, wages decline by 6% and the labor share by 5 percentage points in the US, and by 3% and 3 percentage points in Denmark. Firms appointing business managers are not on differential trends and do not enjoy higher output, investment, or employment growth thereafter. Using manager retirements and deaths and an IV strategy based on the diffusion of the practice of appointing business managers within industry, region and size quartile cells, we provide additional evidence that these are causal effects. We establish that the proximate cause of these (relative) wage effects are changes in rent-sharing practices following the appointment of business managers. Exploiting exogenous export demand shocks, we show that non-business managers share profits with their workers, whereas business managers do not. But consistent with our first set of results, these business managers show no greater ability to increase sales or profits in response to exporting opportunities. Finally, we use the influence of role models on college major choice to instrument for the decision to enroll in a business degree in Denmark and show that our estimates correspond to causal effects of practices and values acquired in business education – rather than the differential selection into business education of individuals unlikely to share rents with workers.”
“Better knowledge and training can make leaders more innovative and productive, raising the returns to all stakeholders. Better managed businesses can more effectively achieve whatever objectives they set, including helping to tackle the myriad challenges society faces.
But has the MBA actually achieved these goals? Our recent research suggests a much less encouraging picture. Using detailed data on companies and workers from the US and Denmark, we looked at the effects when a chief executive with an MBA or undergraduate business degree takes over from one without such qualifications.
We found no evidence that CEOs with such degrees increase sales, productivity, investment or exports relative to the levels the company achieved before. The biggest shift when a chief executive with a business degree takes charge is a decline in wages and the share of revenues going to labour, even in countries with different cultures. In the US, wages under business-degree holding CEOs were 6 per cent lower than they would otherwise have been after five years, and labour’s share of revenues was down five percentage points.”
https://www.ft.com/content/c9eb1789-b0e1-419b-b4fb-0055020e0b3b
4 Things Gen Z and Millennials Expect From Their Workplace – GALLUP
“1. Above all, Gen Z and millennials want an employer who cares about their wellbeing.
The year 2020 brought employee wellbeing into the foreground. If the people in your organization aren’t healthy — physically and emotionally — your organization isn’t healthy either. But an organization’s stance on employee wellbeing has long been a major factor in where people want to work and how they feel about their current employer — in fact, it was a top three issue for every generational cohort before COVID-19…”
