Independent restaurant owners: Are you sure you really know your operation?

  Stephen W. Ayers. CEO, STAY Ahead Hospitality.

In today’s ultra competitive market, restaurant owners and operators need to be in complete knowledge and control of every aspect of their operation. This is not only so they have a good chance of making reasonable profits and a living out of their establishments, but also quite simply in order to survive.

Expenses are increasing substantially and menu pricing cannot always keep up. What can be done about this?

Every independent restaurant should undergo an in-depth ‘audit’ at least once a year. We do it for our own bodies and take steps to correct failings, so why not with our businesses?

A good time to do this is during the quieter periods of the year, and the start of the year may provide that opportunity.

The points that should be covered in this ‘checkup’ are many, and if there has never been an in depth audits then I suggest that the establishment start keeping a history and make comparisons every month/year to ensure that decisions on improvements are made and kept.

The long item menus are a thing of the past, and shorter menus are in. This allows focus on getting each dish right, and keeping less range and amount of stock. Some restaurants even have only daily menus depending on the Chef and his inspiration for that particular day, or what is on offer at the market.

Use of seasonal produce keeps the costs down and freshness up and also builds your reputation in the community.

A few obvious tips, but how many follow them? :

1. Do a regular physical check of your establishment. Leave nothing out. Carpets, chairs, tables, painting WC’s, windows, everything. Check also for cleanliness.
2. Check the kitchens and all equipment for smooth and efficient running.
3. Check all the refrigerators: Hygiene, correct storage for FIFO, cleanliness, overstocks, dead stock.
4. Check dry goods store (and Beverage store):  Dead stock, overstocking, due by date, comparison to stock on computer.
5. Check procurement: Usage of seasonal produce, price quotes, amounts.
6. Check kitchen preparation and production for compatibility to business.
7. Check menu costing by recipe.
8. Check menu pricing comparison with the competitive set restaurants.
9. Scrutinize scheduling for maximum efficient use of staff, revenues per hour per staff.
10. Continuously check popularity of menu items to offer the best menu to customers, and make sure all servers know what menu items taste and look like. Taste checks.
11. Be sure to check guest experience and follow up on complaints. Tripadvisor.

These are but few of the steps you need to take to ensure that your establishment stays actual, offers the best service, the best taste and value in a great and enjoyable atmosphere, and profitability will be the outcome.

For more information and help please go to STAY Ahead Hospitality  

The important part hotels play in today’s communities.

Stephen W. Ayers. 

Lately I read an article that put forward the idea that the days of big government are coming to an end. The extremely well written piece and, in my mind logical, asserted that it was now time for cities to lead the nation. Each city knows its own citizens, the mix of ethnicity and how to govern them within the city boundaries. What is good for one city may not be the best for another, and the Mayors and city leaders know better than any large, central government what’s best for their specific city.

Even today we see strong, powerful cities standing up to centralized government. As an example, Los Angeles vowed to fight the ban against ‘sanctuary cities’ that the federal government wants to impose. There is still determination to be fair, to help those in need, and it is cities that are at the forefront of many ‘fights’.

While unfortunately many people still cling to racist beliefs I believe that in hotels all over the world there is a very positive daily coming together of people from many different nations and backgrounds. It is for the most part a very happy environment and one in which all are invited to excel at their work.

In all the hotels that I have been privileged to manage I have enjoyed working alongside people from too many countries to count.

Actually, in my second Middle East thriller I published in 2011, The Righteous Within, I wrote about this, when Jordan Kline, ex Mossad and now hotel manager, enjoys a meal in the staff dining room with some colleagues:

“Janna, your accent is cute; don’t try to hide it. It’s part of who you are and where you come from. Irit has a terrible accent when speaking English, and apart from being sexy it gives me something to tease her about. I know she likes it but pretends to hate it so she can hit me legit. We’re all from somewhere else here, and most all of us have an accent that gives that away; it’s just part of who we are. Did you know that Israel is made up of people from seventy different nationalities?”

            “Right as always Mr. GM, I guess that my kids will be the ones who grow up to talking with no accent.” She added.

            “Yeah, right as always, that’s me. Mary, let’s take a deeper look at this. It’s interesting. Janna is Russian; Dorit here is third generation Israeli. That makes her a Tzabar, the true Israeli born product. Apart from that you have Tunisians, Moroccans, Americans and I believe an Ethiopian working for you at the desk, quite apart from the fact that you hail from the Channel Islands! I, on the other hand come from Canada and am married to a Syrian, proving my point!” he laughed with them.

Of course, it is no secret that people of different cultures work in hotels, but my point is that at least for a day, we all get along well and have a great and enjoyable time doing it.  

Just look at all the positives that are created on a daily basis in our hotels.

Many lasting, lifelong friendships have started both within the different departments but also across departments in meetings, in the staff dining room and in hotel events held during the year. Modern hotel management demands that staffs are treated fairly and, if the guest is to be satisfied, kept happy and unified. It is an integral part of a hotel’s success in today’s industry.

Menus in staff dining rooms are increasingly widening to satisfy different tastes, and we are learning new foods and customs from each other on a daily basis.

The increasingly power of staff means that hotels are pushed to be better in many aspects, and everyone wins. Hotels are held to high standards by the guests, who in turn have new and ever increasing expectations from the hotels. They expect to see and feel the harmony among the staff that serves them, and many expect pleasant interaction during their stay. It is an integral part of the experience which is no longer limited to a clean bed, good food and good value. People will pay more for an experience that is more meaningful to them, and that includes interaction with multicultural staff.

In the same sense that the best way to cut down on road carnage is not to add hundreds of highway patrolmen but to educate the young drivers before they hit the streets, the best way to get to know different people is by working and interacting with them. Understanding and appreciation comes with knowledge, and our hotels are playing a very important and positive part in our growing and diverse society.

The rise of ‘Meaningful purchasing’

The rise of ‘Meaningful purchasing’ 

Stephen W. Ayers. CEO STAY Ahead Hospitality.

Over this past weekend I could not help but notice articles that covered purchasing trends in the highly competitive markets of today. Although the articles themselves dealt mostly with the retail sector, I realized that ‘meaningful purchasing’ has permeated nearly all aspects of our lives.

In the retail sector many of the large brands are seeing disappointing results despite aggressive mark downs and sales. Why is this happening? According to the article the reason is that the new breed of customers is no longer interested in adding superfluous items to their wardrobes. They do not want to buy a new pair of shoes just because they can. They are choosing where to spend their hard earned money much more carefully than before, and they want ‘meaning’ with their purchase. The retail articles they do buy may be chosen for ‘fair trade’ practices or other reasons that elevate the item in their mind to ‘purchase worthy’.

How does this translate into the hotel industry?

I have written about this before but would like to elaborate.

While there are of course still vacationers looking for a sun filled, relaxing holiday on the beach somewhere, there is a rising new breed of travelers looking for that ‘meaningful purchase’. This comes in a wide variety of features that prompt the client to buy into a particular vacation.

Some are looking for active vacations that contribute to both fitness and well-being. Others will look at hotels that have the lowest impact on the environment, and actively prove that they are doing their best in this important area. Another feature that attracts is originality. More and more people are looking for hotels and inns that are historic, or that have an original theme that runs through the establishment. This could be the décor, ever changing artist exhibitions, photography, lighting and many more well thought out features to separate the property from the competition. In other words, a meaning.

Another important selling point comes with hotels that are involved in the community, and that give back to their towns and are once again actively becoming the centers that they once were. This may take the form of upkeep and support for community centers, or perhaps disadvantaged children’s exhibitions on the walls of the hotels with all revenue from sales going to the homes.

I believe that the new customers, led chiefly by the millenials, have opened up huge opportunities for the independent hotelier to get back onto a more level playing field with the large brands. There are so many new ways and opportunities to stand out, not necessarily involving major investments, to be unique and underline the different identities of our independent properties. The large brands cannot move as fast as the independent operators and policy will not allow franchisees to create a completely new and ‘meaningful’ identity for properties.

‘Meaningful purchasing’ is giving independents a great chance to fight back against the generic brands, a chance to get better rates and begin the shift away from the OTA’s, and the chance to attract better clientele.

It is time to grab those opportunities! 

Even the best hotel management team deserves affordable professional assistance.

Stephen W. Ayers. 

One of the most basic human needs is to feel appreciated, and it is one of the scarcest feelings around, especially for many general managers and executive team members. I know, I have been there for many years.

They are saddled with a challenging yearly budget, a large and complicated hotel operation, a multicultural cadre of human resources in every department, hotel guests, suppliers and travel agents and a host of other subjects that need fitting into every 24 hours!

In the days of old the General Manager was more of a social position, mingling with the guests and making sure that all was to their satisfaction. Human resources were secondary, and operational policies were strict and followed to the letter.

Today’s hospitality industry is much different as we all know. OTA’s rule a huge chunk of our room inventories, marketing and sales are closely intertwined with revenue management, food and beverage trends change often, guest expectations are at an all time high as are the public means to check their satisfaction. Salaries increase along with the employees expectations for a better working environment. Shortfalls in cleaning, maintenance and upkeep are there for all potential customers to see on social media. Guests are looking for not only a great stay for a meaningful stay at an establishment that cares about the environment, community involvement and other causes.

Surely the management teams, striving to excel at all the complex challenges, deserve professional assistance in their fight to make budget, improve the profitability, ROI and their operations. 

Expressing and showing appreciation for ongoing management efforts in the operations is very much recommended, but assisting them with professional assistance is no longer a shame.

In today’s complicated and operationally complex hospitality industry it is commonplace to see asset managers involved and helping hotels and their executive teams improve their operations. Asset managers of course cost money, but invariably bring tenfold payback.

Professional asset management can bring calm to an operation and act as a bridge between owners and their management teams or operators. They can not only assist with invaluable advice based on experience but can bring recommendations encompassing all aspects of the operations from audits, physical and financial, that the team has no time for. Asset managers can take up the slack left by the disappearance of many of the ‘controller’ positions, and act as monitors for the management team in areas such as hygiene, food procurement, production and storage, stocks of beverage and food, maintenance and upkeep, service standards and many more. They monitor sales and marketing, segmentation and targets to arrive at better ADR’s and investment in better returns from higher value customer segments.

One vital area that asset managers take care of is scrutinizing the financial results and bringing to attention line expenses that need investigation and correction. Monitoring these expenses is time consuming but over the course of my asset management career I have saved countless thousands of dollars in an area where the general manager and team just do not have the time to take care of.

The modern asset manager is an additional set of eyes for both the owner and also the general manager, a support system that can help him achieve even better results and that can earn him or her the real appreciation that they are so deserving of.

Asset managers should be looked at as a way to improve the operations, find new ways for revenue streams, cut down on unnecessary costs, monitor the monthly results and critique positively. Sure, asset managers cost money, although probably less than a middle manager, but can the independent operators afford not to hire one to assist their operations, especially when it is almost certain that their expense will be repaid so many times?

The ‘open secret’ chart to successful management.

The secret to successful management is to have a long term plan and strategy, but always be monitoring the market and competition for new trends and be able to adapt quickly.

The one does not go against the other but rather the two complement each other.

The first, setting a long term plan for improvement in operations, allows both owners and operators to gauge the success of improvements in the many areas of the plan. This will invariably be in ADR increases, successful transfer to higher yielding traffic segments. Less dependency on OTA’s, expense savings in HR, efficiencies in HLP, guest satisfaction, maintenance and many more are reflected in the plan.

Monthly results reflect the success or failure to reach goals, and benchmarking allows for continuous comparisons. Financial result reports and monthly meetings to discuss the result for the past month, the year to date and forecast results will do much to keep the management team focused.

Of course this is easier said than done in many cases, as it does depend on implementing new systems and reports, and adherence to in depth audits and discussions on the plan.

With clear direction and understanding of the ownership vision and the goals, management can implement the plan successfully and it will lead to improved profits and ROI.

And yet many properties and operators do not follow their own plans and targets but surrender to panic action that inevitably lead to worsening results and in some cases disaster. The OTA’s are smiling. They are usually the first pillar that operators clutch in the effort to get higher occupancies. Sure, revenues increase but the costs are much higher and the profits lower. Wear and tear also come together with the increased traffic, much of it perhaps from clients that do not take as much care of the property as others.

In other cases ‘free’ add-ons are the practice, giving away free or reduced food and beverage, free third or fourth nights, free amenities and more, all in the scramble to ‘outgun’ the competition. Then comes the HR squeeze, less employees, less service. Perhaps save some expenses on the landscaping and outdoor upkeep? That will make the arrival experience less impressive for sure. Cut down on portion sizes? Increase prices in the bar and restaurant? Smaller soap bars in the room? Increase parking rates?

The next thing to go is the planned small renovations in the rooms and public areas. They can wait an extra year while the revenue increases from the OTA’s………….NO, I don’t think so.

How many hotels have you visited or read about on Trip Advisor that sound like the one I have described? A lot!

Why? Because they did not have a plan, did not create a strategy and adhere I to it, creating a solid base on which to build a better, more profitable operation.

The clients of today, especially the millennials, are looking beyond the simple rate factor. They surely want value for their money, but they are looking for an experience when they stay. They are looking for a hotel that cares not just about the rate but is part of the community and involved in it. They are looking for a well kept hotel, clean and hygienic, and a place that they feel comfortable in, and a place that means something.

The independent operator today has to be much cleverer, redefine himself, and even reinvent himself to stay alive in the competitive field. While creativeness and trends are to be adopted when good, a long term plan and correct strategy are the right way to go about surviving and thriving in today’s’ cutthroat world.