Why Restaurants Struggle to Eliminate Tips

“It’s been three years since Danny Meyer became the unofficial leader of a movement to abolish tipping at restaurants, in an effort to level the playing field for front-of-house and back-of-house employees, among other things. In the process of converting his own restaurants to his so-called Hospitality Included model, he convinced a number of major restaurateurs to adopt similar pay structures. The upside, of course, is that these tip-free models theoretically decrease pay discrepancies between people who work in the dining room and the kitchen, and don’t rely on diners to essentially supplement workers’ incomes.

But after giving it the ol’ college try, two major restaurants have returned to the old way of doing things. The Wall Street Journal reports that Agern, the Nordic restaurant from Claus Meyer, and Michelin-starred Cafe China in midtown have both returned to the traditional tipping model and have seen great results.”

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Best Restaurant POS Tools: How to Choose the Right System for You

Breadcrumb POS inside of a restaurant

“Understanding the needs of your restaurant is a most important first step in choosing the best POS software. After all, the needs of a small brewery with no food service differ greatly from those of a large restaurant. To assess your needs and find the best restaurant POS system for your growing establishment, here are a few things to consider.”

“You’re likely already using tools to manage your accounting, payroll, food costs and scheduling. These tools are essential for the daily operations in your restaurant. That’s why we suggest choosing a POS system that integrates with these tools that you already use. This will reduce the organizational disruption in your restaurant and ensure that your POS leverages data from the past to make more informed suggestions for the future.”

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How To Address Lack Of Employee Engagement

Image result for RESTAURANT EMPLOYEE WINNING CULTURE

“Your culture can propel your profits, sales, employee retention over the goal post or have it fall short. The cost of not making it over the goal line is something any small to mid-size business cannot afford.”

“In the U.S., according to the US Census Bureau, 97.7 percent of all U.S. businesses have fewer than 20 employees. Many of these employees wear multiple hats to keep costs down and profits up.”

“The most recent survey suggested approximately a third of employees are actively engaged leaving two thirds not engaged or actively disengaged. The cost of disengaged employees is estimated to be 34 percent of their salary due to lost productivity, missed shifts, disruption to others, tardiness, etc., Gallup found. Recently I attended a meeting where the CEO asked for some input from his advisers regarding what to do with negative, complaining people. He made the remark several times this was a small thing, but the behaviors of the negative people were hurting his efforts to more the organization forward. He had inherited longtime tenured employees where their beliefs were “We will be here after you leave.”

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Court Clears The Way For Servers To Sue For Full Minimum Wage

“The ruling by the U.S. Court of Appeals for the Ninth District overturned a lower court’s decision that servers, bartenders and other tipped employees in essence do not perform two jobs. The lower court’s ruling allowed restaurants to pay tipped employees on a single scale, a lower direct wage, provided gratuities made up the rest of the minimum compensation they were due under law on a weekly basis.  In its opinion, restaurants weren’t required under federal law and stated Department of Justice guidelines to pay employees a different wage for pre-shift work like cleaning restrooms, slicing fruit for the bar, or cleaning the heads of soft-drink dispensers.”

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TripAdvisor Plans A Social Network Via New Feed, Site And Partners

“TripAdvisor wants to be a one-stop-shop for consumers to share, plan and learn about trips. To reach that goal, the Needham, Massachusetts-based travel site is unveiling a new website and mobile offering later this year that gives consumers the option to connect with friends, influencers, brands and publishers to build social feeds and plan trips.

“One size fits all becomes a personalized trip for you,” said Stephen Kaufer, chief executive and co-founder of TripAdvisor at an unveiling event in New York on Monday morning. “I’m an individual, I’m unique,” he added, noting that consumers want to hear what other voices are saying, and then pick and choose accordingly. According to TripAdvisor data, 66 percent of trip planning incorporates reviews from other travelers, and 62 percent comes from friends and families sharing tips.”

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This is how Google motivates its employees

“Google is consistently rated as being a top employer, and the culture it created helps to attract and retain top talent. The company optimizes its talent by designing and motivating strong teams—an ability that is essential to be successful, says Robert Bruce Shaw, author of Extreme Teams: Why Pixar, Netflix, Airbnb, and Other Cutting-Edge Companies Succeed Where Most Fail.

For example, Google is known for tough and thorough screening, says Shaw. “Everybody who is hired is highly qualified,” he says. “Fitting the culture is not a factor because candidates are screened for it. With high-caliber talent, culture fit can be taken for granted. If you have that, you can use their techniques. If you don’t, you have to be more deliberate.”

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FSMA Status Update: Compliance Requirements and Upcoming Deadlines

FSMA-roasting_photo

“One of the most notable pieces of federal legislation addressing food safety in the past century, the FDA Food Safety Modernization Act (FSMA), was enacted on Jan. 4, 2011 — amending section 415 of the Federal Food, Drug, and Cosmetic Act (FD&C Act). Companies that manufacture, process, pack, or store food, including coffee, must comply.

The FSMA requires companies in the United States with these food facilities to submit additional registration information to the FDA. It also requires companies to renew the registration on a biennial basis, providing the FDA with authority to suspend the registration of a food facility in certain circumstances.”

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How Restaurants Can Cut the Costs Of Handling Cash

Image result for restaurant operations cash handling

“One of the last things a quick-service restaurant manager wants to do at the end of a long shift is count down registers and fill out reports. They’ve been on their feet all day, helping customers, prepping food and putting out fires (only the figurative type, hopefully).”

“(…) Counting, reconciling and depositing money manually causes unnecessary inefficiency and risk in the business. Managers and staff remain on the clock at the end of the day, making the simple act of counting and reconciling cash costly in itself. Other risks include:

  • Potential for errors
  • Opportunity for theft
  • Untracked deposits
  • Time away from customer-facing activities like cleaning, service or food prep/safety.”

“According to a 2018 study of cash by IHL Group, 41.1 percent of quick-service transactions are in cash. While debit and credit might prevail in other areas of retail, the Federal Reserve reports that cash is still the payment of choice for transactions under $25—certainly within the sweet spot for average quick-serve tickets. Shake Shack learned this lesson recently as its customers demanded the ability to pay cash at a previously cashless location.”

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5 Free Ways To Get Customers Talking About Your Brand

Image result for brand“Most fast-casual operators believe that competency creates conversation. That being “good” equals word of mouth. But it often does not, because almost every competitor is at least good. If you want customers to tell others about your restaurants — and you do — you must be different in addition to being excellent.

Talkable generosity
In this style of Talk Trigger, you give your customers a little something extra, Five Guys Burgers and Fries is legendary in this area, as they provide each patron a substantial volume of “bonus fries.” Social media chatter about this largesse is constant, propelling the chain’s growth.”

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Dunkin’ Donuts Invests $100 Million in Brand Refresh

A Dunkin' Donuts store in New York.

“The coffee and doughnut chain plans to unveil 50 U.S. test stores this year that aim to make it easier for customers to grab coffee on the run with dedicated pickup areas, digital kiosks and expanded drive-through windows that prioritize orders via mobile app.
Dunkin’ is launching the redesigned store concept to keep pace in the hot competition over coffee. McDonald’s Corp. and Starbucks Corp. also have attempted to cater to on-the-go customers ordering through mobile apps. More than half of Dunkin’s $100 million investment will go toward store equipment to aid the on-the-go beverage strategy. The rest will go toward technology infrastructure and training.”

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