Ask the Expert:
Move Your Concept Forward by Focusing on Value By Rick Braa, CHAE
My concept seems to be losing relevance. I can see it in my guest count stagnation and the overall lack of excitement in our crew. Sales have been fine, as I’ve adjusted pricing but I can’t do that forever. My concern is within three years we’ll be in a difficult financial position. I’m in the process of planning the next 12 months, where is a good place to start? During the turnaround of McDonald’s in the early 2000’s, leadership realized the food being produced wasn’t delicious. They fixed the food first. Next, they realized that having delicious food put into the wrong bag didn’t solve issues, so they focused on speed of service and accurate packing of bags with a smile and appreciation to the guest. Lastly, they focused on the design of the restaurant. Essentially, they focused on their unique value offering. According to Technomic, 76% of adults say value is a very important factor when deciding where to dine. Value has been historically defined as quality, service, atmosphere or convenience compared to price. It is now more complicated. According to Growth Partners LLC, there are eight key components of value today: price, menu customizability, ease of accessibility, speed of service, purpose, what’s cool about you (story) and “ex”perience factor. Start bringing more value to your guest by focusing on these areas first: Product—work through every item on the menu. Focus on what the guest wants when at your restaurant. Take the top 20% of items and build the menu around those items, don’t let ego get in the way. Menus have become more specialized and restaurants are known for specific items. If burgers are the No. 1 seller, work on developing a line that is exciting around burgers and ensure that every burger on the menu is the best it can be. Ensure standards are set and met to deliver your best products at an outstanding level.
30 │ wahospitality.org
Service—speed of service allows the guest to dine at a customized pace specific to the guest. By having speedy, unhurried, hospitable service the guest feels respected and in charge of their own experience and can customize their experience in the restaurant. Those companies winning in the current environment understand and optimize speed and hospitality. Design—when restaurants start to slide the design of the restaurant is often cited as the culprit. One easy way to fix design issues is to simply ensure the restaurant is sparkling clean and fresh. The best restaurants are clean in every nook and cranny, so the staff has confidence in the environment in which they are working and the guest feels confident they made the right dining choice. Fix items that are easy to fix. Anything that can be seen or touched by the guest must be right. No exceptions. Once the restaurant is sparkling clean and fresh, then move on to making the restaurant more visually appealing and improving flow for the ever-changing delivery portion of the business, Guest flow, and speed of service for the staff. Purpose—why does the business exist and what makes it special? What difference in the world is it making, why should a guest dine-in rather than take-out, how is that purpose delivered consistently with proper messaging? What is the unique value proposition of the restaurant? Define, articulate and communicate your purpose so staff and guests can align with it. Guests will connect with a business with superior product, speedy service, clean and well-designed spaces who live their purpose. With a fully-engaged guest, sales will increase and profitability will sustain your company for years to come. For a more information on improving profitability and driving performance, contact AMP Services at rbraa@ampservices.com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.
