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This Guest Check scenario is playing itself out every day in thousands of restaurants across the country from fast food to family dining to fine dining. With your salespeople up front, and you modeling the behavior, shift after shift, the order takers will eventually become salespeople or be squeezed out of the operation. This is a serious issue. Why? Because the order takers are costing YOU money and taking up space. Youre paying them to lose money for you.
Lets add this scenario up. Under the assumption that the average server would be working just four shifts per week just 48 weeks out of the year. Under the assumption that just one server is playing out this scenario just once per shift. Here are some numbers for you. First lets look at revenue. Your salesperson, using the above scenario is bringing in $4,437.12 MORE in revenue to your establishment than your order taker per year.
In addition, your salesperson, just by being a salesperson with this one deuce once per shift is putting an extra $1,176.96 in their pockets each year in gratuity over the order taker.
Cmon Shawn, this is all hypothetical, its really just a shell game. My servers wont fall for that. REALLY? Ill bet you already have a few salespeople on you staff currently. Compare their check averages to your order takers. Is this hypothetical?
Owners and operators natural instinct is to swim upstream on this one because it takes effort, hard work and consistency to convert your restaurant from order takers to salespeople. But lets take it a step further just for fun. Lets say you have 50 servers on your team. Lets say just half of them are converted salespeople. Lets assume that they are selling to just one deuce per shift using the above scenario. Now were talking about $110,928 extra revenue per year for your establishment.
Now lets assume that 50% of your salespeople are selling only twice during their shift. Now your restaurant is generating an extra $221,856 in revenue per year. You see where Im going with this.
Lets assume youre operating a family dining restaurant that is grossing $6 million per year. I can prove to you through simple mathematics, probability and good old fashioned hard work how you can turn your $6 million dollar a year operation into a $9 million dollar a year operation in one year of applying basic, simple rules of effective restaurant selling.
Ladies and gentleman, these are all LOWBALL figures. This is nothing out of reach for the average owner/operator.
If you are the GM and your sales increase by 50% in the course of the year (and we all know that a healthy top line means a healthy bottom line) what sort of bonus would you be expecting that year? Unless you have Scrooge as your Regional, Id count on a happy ending.
But Shawn, I run a fast food franchise, and my employees arent motivated by gratuities. Recent studies show that 75% of employees would rather be complimented by their manager or win an award in front of their fellow staff than make a monetary incentintive. You have salespeople at your registers and in your drive thrus, too. Get them up in front of the rest. Make them shine. Go ahead and cut a little out of the budget for a cash incentive every now and then. Theres nothing like a crisp $100 bill handed to your top salesperson in front of the rest of the crew to drive a point home.
Well Shawn, what about the back of the house? Theyre always getting neglected. Theyll be envious or not want to be team players. Thats where your skill as a manger/leader comes in. Find a way to involve your back of the house crew so that everyone is committed to seeing revenues increase. If your unit increased sales by 30% over last year, Ill bet you could afford to give your top back of the house players a nice raise.
The skys the limit! The only thing holding you back is YOU. Take the initiative now to make this happen. Dont put it off another day.
Remember, youre paying your order takers to lose money for you. That doesnt make much sense. Whereas, in effect, your salespeople are voluntary independent contractors showing up every day looking for ways to make you money.
Well be focusing more on retail next month. This formula can be replicated in virtually any aspect of the hospitality industry.
Until next time... Shawn October 30, 2008 TIPS October 23, 2008 TIPS October 16, 2008 TIPS October 8, 2008 TIPS October 1, 2008 TIPS Economy Report TIPS September 2008 TIPS August 2008 TIPS July 2008 TIPS June 2008 TIPS May 2008 TIPS April 2008 TIPS March 2008 TIPS Jan/Feb 2008 TIPS
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