Lessons For Launching a Startup Concept

August 1, 2014 by Leave a Comment

Tom Jednorowicz, Founder and CEO of Meatheads in Chicago, has had 20-plus years experience with fast casual early-stage high-growth restaurant concepts. While launching his own startup concept he learned a few lessons and is sharing these along with a few tips for any startup concept.

1. Any startup business plan needs to be flexible.The startup business plan should prepare for short term financial viability; it should not be interpreted too literally as it can create tension in the decision-making process which can stifle growth because it does not allow for adaptations to changes in the marketplace. Growth should not be defined solely by the business plan.

2. Execution: Create an atmosphere of winning for both employees and customers.It is crucial to implement training programs for employees in both front and back of house positions to make sure the guests are enjoying their experience. It is important to make sure this experience is consistent in order to ensure repeat clientele. Employees who excel at providing opportunities for growth within the company should be rewarded as it will result in a high employee retention rate.

3. Take care of every customer.
A guest experience is not solely based on the food but on the service in general and how it all ties in together as a whole. This is why it is important to ensure each customer is having an enjoyable experience by anticipating guests’ needs and going above and beyond to rectify minor mistakes when handling customer complaints.

4. Branding: It’s okay to modify your brand and target audience.
Embrace the changes that can be observed after opening whether it means having a different clientele than anticipated or different brand priorities. Make changes to further adapt with the updated business plan by for example, changing the logo, adding new menu items, changing the ambiance and/or physical decor, and generally finding methods to gain customer loyalty as it will drive success.

5. Community: Hyperlocal connections will help your business establish roots.
“Connect with customers in your restaurant’s backyard first, then expand your reach.” Give the community an opportunity to learn about your brand and what it represents by having a soft opening. The importance of being accepted in the local community should not be understated.

To read more advice from Tom Jednorowicz on opening a restaurant startup, click here

Filed Under: Global Market Buzz, Operations

Demand For Fresh Ingredients Driving Growth

July 31, 2014 by Leave a Comment

The restaurant trend to advertise locally sourced ingredients on the menu has now caused consumers to expect it. This demand is now beginning to be met in less expensive fast-casual restaurant chains. Guests are willing to pay extra for locally sourced fresh ingredients as is the case at Sweetgreen, Tortas Fronteras by Rick Bayless, Salata and Mad Greens. Marley Hodgson, cofounder of Colorado-based Mad Greens has states that, ” the plan is to have a dedicated portion of the menu that’s local specific.” As the chain begins to expand outside of Colorado, the availability of local produce and other ingredients will be an important determining factor for whether or not to install a new unit. For locations in markets that do not have long growing seasons the emphasis will be shifted to other ingredients that are produced in all seasons such as dairy.

Pricing structures in a fast casual business are not straightforward and the business models do not allow for much wiggle room, however, certain chains are coming up with ways around the structures in order to incorporate more locally sourced ingredients into the menu. Hodgson stresses that guests are willing to pay extra for local foods and believes that, “it’s a much more important trend than organic, but there’s a bifurcated customer base and you have to give them a choice. If you force them all to pay a higher price for local, that’s problematic, because there’s a portion that won’t pay. But there’s a large segment saying ‘yeah, I’m totally willing to pay more.’”

Salata, a franchise company operating in Texas, California and Chicago also sources local products and ingredients. Both Salata and Mad Greens are very transparent with their guests about where their food is coming from, which has proven to be much appreciated.

To read more about adding more locally produced foods to restaurant and fast casual chains’ menus and how it is helping to drive business growth, click here

 

Filed Under: Global Market Buzz, Operations Tagged With: ,

IBM’s Foodborne Illness Outbreak Detection System

July 18, 2014 by Leave a Comment

IBM has had a breakthrough in their research and managed to find a way to use technology to identify likely sources of contamination during a foodborne illness outbreak. Using past computed retail data combined with public health data, a search can be run on the system to look at billions of food items sold in supermarkets to automatically identify the probability of certain suspect products for outbreaks in a given area. Every time there is a report of an outbreak, using statistical techniques and visualization, the algorithm recalculates the probability of each food item that could be causing the illness.

This system is capable accelerating the time that is usually taken to identify contaminated food products which will in turn help reduce the economic losses experienced by food companies as well as healthcare expenses. Dr. Bernd Appel, head of the Department for Biological Safety for the German Federal Institute for Risk Assesment recently stated in a press statement, “The success of an outbreak investigation often depends on the willingness of private sector stakeholders to collaborate pro-actively with public health officials…this research illustrates an approach to create significant improvements without the need for any regulatory changes.”

This program will relieve some of the strain on the public health system in detecting contaminated food to minimize the spread of the foodborne illness. Jaes Kaufman, Manager of Public Health Research for IBM Research states, “Predictive analytics based on location, content, and context are driving our ability to quickly discover hidden patterns and relationships from diverse public health and retail data..we are working with our public health clients and with retailers in the U.S. to scale this research prototype and begin focusing on the 1.7B supermarket items sold each week in the United States.”

To read more about IBM’s research and how this new system works, click here

Filed Under: Global Market Buzz, Operations

Coffee Operators Driving Revenue Through Mobile Payments

July 16, 2014 by Leave a Comment

There is a definite compatibility between specialist coffee shops and mobile payments due to the fact that their primary product is purchased at such a high frequency. Consumers purchase coffee daily (often multiple repeat purchases per day) and would benefit from a streamlined payment method and loyalty programs such as can be offered by mobile payment solutions. The consumer demographic is also most likely to participate in the mobile payment methods as it consists mostly of young students interested in technology and consumers who have easy access to mobile technologies.

While Starbucks was the first to launch its well-known loyalty program and mobile payment app years ago, third-party mobile payment technologies are now cropping up targeting independent coffee shops to help them drive revenue and better compete with larger chains such as Starbucks. CUPS is one example of a third-party mobile payment apps designed to engage consumers by providing incentives through loyalty programs that offer discounts and special offers based on their purchase history. BeansUP is another recently launched innovative app that allows consumers to set coffee pick-up times; this will allow for an enhanced consumer experience as the product is prepaid and the guest can avoid peak hour lines and pick up their coffee directly at the counter.

The increased demand for efficient, streamlined transactions will only continue to grow and these mobile technologies definitely help meet this need. In order for consumers to adopt mobile payment methods they must first be intrigued by the incentives and sign up for a subscription to their preferred coffee shop’s mobile app. As consumer engagement increases so too will the use of mobile payments and therefore help to drive traffic and revenues.

To read more about these two new innovative mobile payment technologies, click here

 

Filed Under: Global Market Buzz, Local Market Buzz, Operations Tagged With: ,

American Chefs Looking for Argentinian Grills

July 7, 2014 by Leave a Comment

Charles Eisendrath spent the 1970’s as the bureau chief for Time magazine in Buenos Aires, and he brought back a love for the Argentinian tradition of open-pit grilling.  He didn’t though, bring back a grill.  That’s how Grillworks was born in the early 80’s.  After a few years of working with local welders on over a dozen designs, the first grills were rolled out to much local fanfare.  Over the next few years, Eisendrath’s hobby company moved along nicely.  In 2006, his son, Ben, opted to take over the family business.

At the same time, American interest in Argentinian cuisine was growing.  Chef Francis Mallmann published his kitchen manifesto “Seven Fire: Grilling the Argentinian Way,” and his love for wood-fired food caught on in the States, from the Big Apple Barbecue Block Party to Dan Barber’s Blue Hill at Stone Barns.

It’s a labor of love, though.  Some of Mallmann’s signatures–such as whole cow–can take days to roast, but the result is worth it.  Adam Perry Lang, of NYC’s Daisy May’s BBQ, says “when you’re cooking on wood, the flavor is like nothing else.”

More chefs are chasing that flavor.  Now, Grillworks makes between 200 and 300 grills per year for restaurants and residences.  Most are custom built; Dan Barber had a second grill designed after ruining his first.  Tapas restaurant Tertulia has a gargantuan Grillworks built into the wall, and Reynard, in Brooklyn, has a wood-fired oven, grill, and rotisserie as its centerpiece.

For more information, click here.

Filed Under: Global Market Buzz, Operations, Trending Now

Papa John’s Entrepreneurial Advice on Growing A Business

June 25, 2014 by Leave a Comment

John Schnatter impressively built the global pizza franchise that is now Papa Johns. Schnatter has shared some of his most valuable lessons learned through his experiences to entrepreneur.com last month in Washington D.C. during National Small Business Week. One of the major lessons he learned from his father before he even started building his pizza empire was that hiring the best people did not necessarily mean hiring the most experienced; he stated, ” You look for people who are positive and who have integrity…That’s how he taught me to train for aptitude, hire for attitude.”

Schnatter believes in the importance of being surrounded by people with great can-do attitudes and spirits that are full of passion. The key is not to be too controlling of employees but to give them a direction to head in and provide them with the appropriate resources and lead by example. It is important to motivate and reward them when they are doing things right so that they can begin to motivate themselves.

Of course Schnatter states that one of the most important elements to growing a business is to have an effective business model. However, he also shares some advice on how important it is to make a few mistakes along the way and not get down on yourself because of them; mistakes need to be made in order to learn from them, analyze and innovate.

To read more on John Schnatter’s advice on growing a business, staying competitive and establishing a culture of entrepreneurship, click here

 

Filed Under: Global Market Buzz, Meet The Owner(s), Operations Tagged With: ,

Creating a Culture of Hospitality

June 25, 2014 by Leave a Comment

This past weekend as part of the 25th anniversary of the American Express Trade Program at the Aspen Food & Wine classic, industry experts discussed a very important topic: customer loyalty. Chef Tom Colicchio (Craft, Colicchio & Sons), Sean Brock (Husk, Charleston), Stephanie Izard (Girl and the Goat, Chicago) and Mitzi Gaskins (Marriott) led a seminar discussion on how chefs and operators can create a culture of hospitality and loyalty.

Colicchio stated that it all comes down to the servers; they have two main jobs: 1) make the customers happy, and 2) create regulars. The goal for the servers is to really become friends with the diners and get to know them so that it really becomes a personal experience. It is important to have the servers make those little extra steps that go beyond the eat-then-pay transaction. The chefs mentioned that they use computer programs (such as OpenTable) to track their guest information. Servers can make notes of the guests’ personal preferences (sparkling water vs regular, etc.) and input it into the computer at the end of service. They then analyze this collection of data to connect more with the customer. Recognition is absolutely key in fostering customer loyalty; as a diner it is the best feeling to enter an establishment and have the staff remember your name and dining preferences.

Gaskins also stressed upon the importance of attracting the right talent. The recruiting process should never be taken lightly. It is important that the staff you keep truly fits the profile created by your brand. It is then equally important have appropriate training systems and provide the staff with the tools necessary to make the guests happy. Colicchio makes an excellent point which is that in order to create brand loyalty among your customers, your staff has to be loyal to your brand; it all begins in-house. Both Colicchio and Gaskins spoke about how a little positive reinforcement can go a long way, and how stories of hospitality successes will spread amongst the staff.

Social media is also a relatively new and important way to connect with fans and customers. Operators should research what works for them and what doesn’t. It is important to keep the customer engaged and incentivize them to come back to your restaurant without flooding their twitter feed or email inboxes. For instance, Izard mentions that perhaps it is smart to run quarterly specials vs running specials every few days. Izard also spoke of the importance of building relationships with customers in the community. She recommends engaging with the community through charitable events and choosing organizations that you are proud to be a part of.

To watch the seminar on the evolution of customer loyalty click here

 

Filed Under: Events, Global Market Buzz, Local Market Buzz, Operations Tagged With: ,

Customer Service is of Utmost Importance

June 20, 2014 by Leave a Comment

Customer service should always be a top priority for any business, but especially for the service industry. It is simply bad business not to ensure that you have efficient customer service systems in place. You want to be that business that is known for setting high customer service standards. Put simply, a lack of strong client services will lead to a lack of business. Here are a few suggestions to strengthen your customer relations:

ONLINE:

  • Make the business able to be easily located and accessed online
  • Build a professional website
  • Index the website on the most popular web search engines
  • Make the website easy to navigate from desktops, tablets and smart phones
  • List your business on popular directories such as Yelp, Yellow Pages, etc.
  • Establish your business through social platforms such as LinkedIn or Facebook

PHONE:

  • Make sure customers rarely get a busy signal when trying to reach your business by phone
  • If you can’t hire a full time receptionist, consider hiring an answering service
  • Install a hosted phone system such as VirtualPBX or Grasshopper so you can receive alerts when a call is received
  • Have a system in place to record when calls are received (a simple Excel spreadsheet would work just fine)
  • Always return phone calls

The most important aspect is to always be available and accessible. Keeping in touch with your past customers will most likely lead to continued service and loyalty. This will make your customers want to write good reviews online, refer you to a friend, and generally create a positive buzz about your services.

To read more about the importance of smart customer service, click here

Filed Under: Global Market Buzz, Local Market Buzz, Operations Tagged With: ,

Oracle Acquires Micros Systems in $5B Deal

June 18, 2014 by Leave a Comment

Oracle, the world’s leading supplier of information management software, is now close to acquiring Micros Systems for over $5 billion. Micros Systems sells point-of-sales hardware to restaurants, stores and hotels; it also sells customer-relationship management software, invetory-tracking software and analytics software. This acquisition would diversify Oracle’s product lineup as it would now include more hardware. It will also enable Oracle to pick up many of Micros’ customers in the food , retail and hospitality industries.

Last year a few of these customers included:

  • Cracker Barrel
  • Burger King
  • Arbys
  • Hard Rock Café
  • Hilton

To read more about the acquisition click here

Filed Under: Global Market Buzz, Operations Tagged With:

New App Means New Competition for Fast Casual

June 11, 2014 by Leave a Comment

In an effort to add more emphasis on speed and hospitality, BJ’s Restaurant and Brewhouse launched an app last Tuesday that allows diners to place their orders before arriving at the restaurant. BJ’s Chief Executive Gregory Trojan believes that being hospitable is the most important task for a waiter. The casual-dining restaurant chain’s goal in launching the app is to shift the wait staff’s duties to enable them to focus on being more conscientious of the customer.

The customer is placed on the wait list once they have ordered via the app, eliminating the need to wait at the host stand upon arriving at the restaurant. The kitchen fires the meal once the customer is seated to ensure the food is hot when it arrives at the table. The app also offers a mobile payment option at the end of the meal eliminating the need to wait for the check.Trojan assures that the app will not mean less waiters but simply that the waiters will be removed from the ordering process.

The increase in speed and service will be an added draw to the customer which will enable BJ’s to better compete with fast casual establishments. Panera Bread and McDonald’s have also been experimenting with different ways to include the customer to streamline the ordering process.

 

To read more about the app launch and what it means for the future click here

 

Filed Under: Global Market Buzz, Operations Tagged With: , , ,
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