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ME-OT-RestAtoZ-V2023[2002].ppt
- 1. M. Daou Session I Introduction/ MODS الصاللمشاريع شركة
- 2. M. Daou 45 Yearsof Restaurant industry sales (1971-2022) +6.85% Compound annual Growth Rate (CAGR)
- 3. M. Daou CHALLENGES OFRESTAURANT OPERATION Long hours Excessive fatigue can lead to health problems Little security for managers who work for others Family life can suffer For owner, possibility of losing investment and investors
- 4. M. Daou REASONS FORRESTAURANT FAILURE Lack of management traits/skills Lack of sufficient capital The expansion & competition from other restaurants Family problems
- 5. M. Daou THE RESTAURANTFAILURE RATE Results of Dr. Parsa’s study: ◦ First year: Highest failure 26% ◦ Second year: 19% ◦ Third year: 14% ◦ Failure rate for the first three years: 59%
- 6. M. Daou Ways tobe part of this industry: There are several career & investment options in the restaurant business: ◦ Manage for someone else. ◦ Purchase & operate a franchise. (QSR, CASUAL & ABOVE) ◦ Buy an existing restaurant & operate as is or change its concept. ◦ Build & operate a new restaurant.
- 7. M. Daou What isa concept? The matrix of ideas that constitute what will be perceived as the restaurant’s image. It provides the framework on which to hang the image. Applies to any foodservice operation. Should fit a definite target market. Distinguishes the establishment as D&B, different & better, than the competition. May be necessary to modify as competition arises.
- 8. M. Daou Concept include… Quality Price Location Atmosphere /décor Service Food style Management Menu
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- 10. M. Daou Symbols Aspectsof the concept seen in the: ◦ Sign ◦ Logo ◦ Colors ◦ Upholstery ◦ Food ◦ Food presentation
- 11. M. Daou BE ACOPYCAT! Analyze existing restaurants that are successful. Borrow good points & practices. Modify & improve borrowed points & practices if possible. The successful mix = one that is better than the
- 12. M. Daou Types andCategories of restaurants Types of Restaurants: • sandwich shops •Quick-Service • Fast Casual • Family Restaurants • Casual •Fine-Casual • Fine-Dining
- 13. M. Daou Types andCategories of Restaurants: Categories of Restaurants: • Hotel Restaurants • Steak House • Seafood • Ethnic • Theme • Coffee-shops • Chef-Owned • Celebrity Chefs • Centralized Home Delivery
- 14. M. Daou Who isa manager A manager is: Man of Age. Man of age is a person who can and willing to be responsible. Responsibility: is the ability to respond to certain situation. To respond: meaning to take a decision.
- 15. M. Daou Decision Maker: Implications Experience Knowledge The manager is a real decision maker, so to be a successful decision maker, he needs to have: 1. Appropriate Knowledge 2. Adequate experience 3. Forecasting its implications.
- 16. M. Daou Decision Maker: Implications Experience Knowledge To be a successful decision maker, any restaurant operations manager should work and combine different disciplines. Fusion and Synergy of these disciplines is called: Disciplines Balance for Restaurant Managers.
- 17. M. Daou Disciplines Balancefor Restaurant Managers Restaurant Industry Human Dimension Business Dimension Quality Marketing Dimension
- 18. M. Daou Group WorkSession I: IYADWUAD, YAGWUAG Each one defines in one Sentence his concept in Life, In other words his objectives.
- 19. M. Daou Session II HumanDimension
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- 21. Leadership is aBehavior Leading by Example. •Leader’s job is to help people accomplish their goals by Supporting them and removing obstacles, take accountability to cover their back, and to give them credit when things are done correctly. •They have to be Efficient and Effective. Ken Blanchard Efficiency: Meaning maximum productivity: quality of work + quantity of work in Min Timing. Effectiveness: Capabilities + Productivity Operations Functions Team Building/ Scheduling Basic Managerial Skills Leadership & Planning
- 22. Time is Money. Maximizingthe use of time= Maximize profits Planning : Restaurant journey is a sequence of projects, and every project has five phases: • Initiation • Planning • Execution • Monitor and control • Closing of the event Planning is the hardest one: Starts from putting ideas in sequence, Setting objectives, activities, and tasks. Put for each: time, cost, procurement, risk, Communication, resources, Operations Functions Team Building/ Scheduling Basic Managerial Skills Leadership & Planning
- 23. We are managers,our plan is executed by others, for them to be able to execute they need: Continuous Briefings Necessary De briefings Adequate Training Operations Functions Team Building/ Scheduling Basic Managerial Skills Time Management and Effective Meetings
- 24. M. Daou Briefing Introduction Apre-shift meeting, is the guideline for every working shift. “plan your work then work your plan.”
- 25. M. Daou Elements ofa Briefing Part 2 Demonstrative 30 % of time Part 3 Interrogative 50% of time Part 1 Dictating 20% of time it is done before the shift It takes 10 to 15 minute It is divided in 3 parts (Dictating, Demonstrative and Interrogative)
- 26. M. Daou 20% ofthe time 3 minutes Be positive Relaxed Smiling Dictating Demonstrative Interrogative • special company policies, • branch targets, new mall rules, etc… • Sect Dist., reservations, etc…. Announcement • Unavailable items Bar/kitchen • Limited Items Bar/kitchen 86 Items • We focus on one suggestive selling per week. Suggestive Selling • one element to focus on, Ashtrays, welcoming, farewell, service of drinks, debarras etc……. SOP
- 27. M. Daou 30%of the time. 4 to 5 minutes. N.B. Maintain positivity during demo, and should never point to any person. Dictating Demonstrative Interrogative SOP review: Demo for Wrong example and Right Example Suggestive selling: Demo / Examples
- 28. M. Daou 50% ofthe time. 7 to 8 minutes. Ask all the team Motivate the team, with recognition If no answer, ask another Return to get answer Positive Closure Dictating Demonstrative Interrogative L A Q A
- 29. M. Daou Timing ofa Briefing before every shift, 30 minutes to prepare one briefing start on time, Finish on time Board Note Liability of the whole Team Date: 1 4 7 2 5 8 3 6 9 Pre-Shift Meeting (Briefing) Section Distribution SOP Review Subject Annoucements (Goal of the month, Budget to achieve) 86 Items Suggestive Selling
- 30. M. Daou De-Briefing Doneafter work. States problems faced during work, Q&A for Solutions Solution Proposed and adopted Maximum 6 points Maximum time: 30 minutes.
- 31. M. Daou Adequate Training Onlywise people learns in repetition When we teach, we learn twice we are as strong as our weakest link Spare at least one third of your time to teach your subordinate something new every day.
- 32. T = Together E=Everybody A= Achieves M= More 1+ 1 = 2 in arithmetic calculations. In team work calculations, it is exponential, it might reach 20 or 121 So Teams are group of persons working in synergy towards: 1. One goal 2. Common Approach 3. Individual conviction 4. I give before I take. Every one is important and incomplete. Operations Functions Team Building/ Scheduling Basic Managerial Skills Time Management and Effective Meetings
- 33. Efficient scheduling: • ExpectedTraffic: each shift should be considered as a market niche that has its own guests. • Shift structure by position • Manning • Knowing strength and weaknesses of every team member • Labor output per $ produced • Manning adjustment on daily basis Operations Functions Team Building/ Scheduling Basic Managerial Skills Time Management and Effective Meetings
- 34. Respect: two universal wordsto be used: Please & Thank you. Operations Functions Team Building/ Scheduling Basic Managerial Skills Time Management and Effective Meetings Please Thank you Respect
- 35. As Manager, generalrules are to be respected: • Praise in public • Reprimand in Private • Respecting Hierarchy and Unity of Command •Time line, and due dates •Focus on developing teams based on three levels: Training, Coaching, monitoring and delegating. •Ability to plan •Forecasting •Evaluation: the ultimate is self evaluation. Operations Functions Team Building/ Scheduling Basic Managerial Skills Time Management and Effective Meetings
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- 37. M. Daou Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis& Budgeting Human Dimension Business Facts Marketing Dimension Quality
- 38. M. Daou Startup Cost Depreciation Revenue forecasting Average Ticket Nb of persons/ nb of transactions Partial vacancy Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis & Budgeting
- 39. M. Daou Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis& Budgeting Breakdown of revenues in a restaurant: Revenue 100% Food cost: 20-24 % Labor cost: 28-35% Rent: 12-22% Marketing: 4-6% Ops cost: 9-11% EBITDA: 27-2%
- 40. M. Daou Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis& Budgeting If we sell Mixed grill for 6.75 KD, on average we should do: 15%, so 1.012 KD If the plate is broken, its cost is 3 KD, so we should sell 3 Mixed grill without any profit only to earn the cost of the broken plate.
- 41. M. Daou StandardRecipe Card Ideal Cost/ theoretical cost Real Cost Inventory Turnover Par levels Menu Analysis. Pricing Strategy Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis & Budgeting
- 42. M. Daou Budgeting: ◦Capital Budgeting ◦ Operations Budget Occupancy Theory Reducing Waste/ 1$ Theory Cost Control/ Inventory Financial Analysis & Budgeting
- 43. M. Daou Group WorkSession III: Solve Exercises
- 44. M. Daou Session IV MarketingDimension
- 45. M. Daou Guest Driven Strategy Developing internal Marketing plan/ externalPlan Cost of Losing one Guest Human Dimension Business Facts Marketing Dimension Quality
- 46. M. Daou Cost oflosing one guest: 1 guest who had A bad experience Will tell to: 10 to 12 persons Those in their turn Will tell to 6 others, who In turn will tell To 3 people each. 1*12*6*3= 216 guests. If for a frequency of 1 time/week with an average of 8KD per person, It will total: 1728KD/week. It will total: 90,000 KD of loss in potential gross sales. So we have an impact loss in sales for 90,000 KD just by losing one guest per location. Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 47. M. Daou Cost oflosing one guest in 2022: A bad experience can reach 1 million guests in one click: Social Media, Bloggers etc……. In 2025???????? Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 48. M. Daou Guest drivenstrategy: The message is clear and simple: Guest-Driven Strategy Products Policies Guest Voice Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 49. M. Daou 49 Guest drivenstrategy: Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 50. M. Daou Guest-Driven strategy: Quality Excellence: Ability Consistent Behavior Quality- Consistency Curve Guest Driven Strategy Developing internal Marketingplan/ external Plan Cost of Losing one Guest
- 51. M. Daou Marketing: Bring new guests •External Marketing plan Retain new guests • Internal Marketing plan Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 52. M. Daou Service Excellence: Service Excellence Internal Marketing Plan Guest Driven Strategy Developing internal Marketingplan/ external Plan Cost of Losing one Guest
- 53. M. Daou Guest-Driven strategy: ServiceExcellence/Internal Marketing Plan Guest Entranc e Welcome Table Captain Waiter Waiter Mgr/ Ass Mgr Atmospher e Kitchen/ Bar WC Bill Farewell Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 54. M. Daou The theatrestory: Theater Audience Actors Key actors Stage Responsible Back Stage/technician Restaurant Guests Front Liners Floor Managers Managers Kitchen/Bar Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 55. M. Daou The theatrestory: Every time you unlock the front door of your restaurant it’s opening night. May be your theater will entertain only a half-full house. So it doesn’t depend on ticket sales, it depends on the audience buying tickets. This is show biz. Whether full or not, you should do the act and perfectly well. At the end you may have the best show in town, but if you can’t sell it, you still got it. Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 56. M. Daou End Resultfor Customer Service: • Moments of Truth Restaurant • Guest Complaints • Positive Experience • Loyalty • Ambassador Guest Guest Driven Strategy Developing internal Marketing plan/ external Plan Cost of Losing one Guest
- 57. M. Daou Group WorkSession IV: Take a Real comment from Trip Advisor Put a plan on how to solve it, internally by strengthening our internal marketing.
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- 60. M. Daou Identifying Competitive Advantage System Thinking Technology Across the ValueChain Value Chain Example
- 61. M. Daou Identifying Competitive Advantage System Thinking Technology Across the ValueChain Value Chain Example Operations management is a source of Competitive Advantage. It can be done bydelivering products and services better, faster and or cheaper than competition: Creating Value Matrix
- 62. M. Daou Identifying Competitive Advantage System Thinking Technology Across the ValueChain Value Chain Example
- 63. M. Daou Example appliedon Restaurant Identifying Competitive Advantage System Thinking Technology Across the Value Chain Value Chain Example
- 64. M. Daou Conclusion: Itis simple: our industry needs Managers that are decision makers. They have to rely on this balance to perform those decision. Implications Experience Knowledge
- 65. M. Daou 10 Commandmentsfor Restaurant Managers: Managers are rewarded not for what they do, but for what their people do. Plan ahead and carry out those plans: “Plan your work than work your plan Don’t get stuck in any one area too long. Work the room, don’t manage it, and market the restaurant. The primary goal of a manager is to Teach employees something new every day. When we teach, we learn twice. Welcome your employees with a smile and a kind word . Never loose your showbiz face at work. Manage your income. Manage your health, stay away from too many CATS ( Caffeine, Tobacco, Alcohol, Salt/sugar). Remember that good enough never is.
- 66. M. Daou Session VI Foodservice 2025
- 67. M. Daou Food Service2025 What will successful foodservice companies be doing right in three to five years? What will unsuccessful ones be doing wrong?
- 68. M. Daou Food Service2025 The 5 Persistent Challenges 1. External/Internal Marketing – Acquiring & Maintaining Customers – Menus: Food & Beverage – Same Store Sales/COGS/Profitability 2. Process & Procedure 3. People – Recruiting/Hiring/Retention – Training & Development/Bench Strength 4. Real Estate 5. Technology
- 69. M. Daou Food Service2025 Key Trends Next 1‐5 Years • Higher Wages • Shallower Labor Pool (non Lasting ones) • Digital Servers • Mandatory Customization • Decline of Tipping • Evolution of On Boarding Stages • The End of Cash Registers? • Technology applied to Training • The End of The Casual Customer • Competition no longer linear in segments • Design: Color/Texture/Atmosphere/Plating
- 70. M. Daou Food Service2025 Technology • Sharing Economy (Offices space, car usage, etc…) • BYOT even more BYOD Bring your own technology/ bring your own device • POS Disappears as mobile ordering Increases • Omnidirectional Communication (Social Media/website/POS) all directions • Smart Restaurants • Frictionless Payment • Digital Watches for Mgrs (Labor/Food/Utility Costs)
- 71. M. Daou Food Service2025 Process/Procedure Reduce Complexity Minimize Staff Get Brilliant at the Basics Make the Experience Ridiculously Amazing
- 72. M. Daou Food Service2025 What would the ideal foodservice company culture look like? Re-Examine: Every Process & Procedure How you Train/Onboard/Career Path Caring Culture
- 73. M. Daou Food Service2025 All Goals are dependent on Shift Execution Do this at managers meetings Continuous Improvement 14 shifts/wk 56 /mo, 168/qtr., 672/year
- 74. M. Daou Food Service2025 Make every detail perfect and limit the number of details to perfect. Your primary job is to eliminate the things that cause conflict with your customers. 1. Focus 2. Build Strong Teams 3. Serve Better 4.Sell More 5.Control Costs 6. Relentless Marketing 7.Out-Teach/ Out-Learn 8.Lead Smart 9. Execute
- 75. M. Daou Food Service2025 No one can go back and start a new beginning, but anyone can start today & make a new ending. If Not Now, Then When? If Not You, Then Who?
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