LEADERSHIP: Go the Distance: Long-Term Success in an Industry Set Up for Failure
Boston’s beloved Trina’s Starlite Lounge, a restaurant I worked at years ago, recently celebrated its 10-year anniversary. Ten years may not seem like much on the surface, but 90% of indie restaurants close within their first year of operation. The ones that make it past that threshold have an average lifespan of just five years. So, 10 years is an eternity in this business and the way Trina’s operates business is everything right about our industry.
DID YOU KNOWS…
FDA Delayed E.coli Announcement
Last week the FDA announced a previously unreported E.coli outbreak that occurred between July & September, tainting Romaine lettuce and affecting 12 people. The Washington Post reported the outbreak nearly a month after learning that FDA officials knew the cause of the outbreak. The FDA and the CDC both knew about the tainted lettuce by Oct. 2nd. Not a good look.
Impeachment Polls
A selection of the most recent polling on the level of support among the U.S. public for the impeachment of President Trump reveals an average of 46% in favor and 42% against. The majority of polls have a plurality in support of such action, but the latest from Selzer & Co. for Grinnell College found 44% to be against, compared to 42% for.
Twitter & Facebook Backing Off Live Sports?
Execs from both Twitter and Facebook have said they have no plans to bid on live sports rights at the moment. It once looked like the social media sites would be vying with the likes of Netflix and Amazon for streaming sports rights. Netflix has consistently said it’s not interested in live sports, and Twitter and Facebook are starting to also trend that way after years of experimenting. It’s unsure if this change of heart is due to social being a bad platform for sports streaming or the fact that Millennials & Gen Z are less interested in traditional sports.
RED RED WINE [Song]
Why it matters to you: When your staff fails, you’re the one who pays.
Here’s a nightmare scenario for you: A server accidentally spills red wine on a guest and their handbag. It’s a disaster. The bag is ruined, and the guest is pissed. What do you do? We’ve all had to manage this situation whether it was a food spill or an errant wine poor, and it’s no fun. Unfortunately, for a server and his supervisors at the Alpine Country Club this exact scenario was compounded by the fact that the destroyed handbag was a $30k discontinued Hermes. So, we sort of have to start with the absurdity of owning a $30k anything that you don’t either drive or live in, but our incredulity doesn’t solve the problem. However, the lawsuit brought by the owner of the Hermes bag makes some novel claims about the responsibilities of the operator as pertains to qualification and training of their staff.
Maryana Beder claims in her suit, "The defendant had a duty to provide qualified and competent employees for its business and for the safety of its patrons." She also accused the club of failing to confirm its servers' qualifications "and determine their appropriateness for their respective positions" before hiring them. Now, Ms. Beder paid some $65k to join the club and another $19k/year to enjoy her time there. She might have a point about her expectations, but do we as operators have a legal obligation to vet our staff in this manner. We might surprise here with a resounding yes. That isn’t to say we believe the server didn’t meet any appropriately required expectations in this situation, just that we ARE responsible for it. We don’t think that should cost you thirty grand, only remind you that your team reflects you and that’s a serious responsibility.
[Source: Vice]
IT’S ABOUT THE PEOPLE
Why it matters to you: You can learn from Red Lobster’s people-centered approach.
If you are wondering whatever became of Red Lobster after it was offloaded by Darden. Well they shifted their focus to “people first.” If you are also wondering if that means anything, their rankings in a 200 brand survey may prove as verification that it’s working: The casual-dining brand had top 10 finishes for ambience (No. 6), brand loyalty (No. 8), and food quality (No. 8), as well as a No. 11 rank for service. It can’t be said with any confidence that anyone knew they could score so highly when they spun away from the largest full-service dining chain in the world. However, if your CEO Kim Lopdrup it couldn’t have been any other way. “We have really made people the heart of our strategy,” he said. And the proof is in the results.
Since the brand went private about five years ago, it has made significant investments in food quality, value, convenience, and social responsibility. This high road approach to managing their restaurants is clearly paying dividends in public perception of their quality and value, but equally important is that the people that work there are also invested in the approach. The company recently reduced its server assignment from a mandatory four tables down to three. This acknowledgement of the value of improved service and staff satisfaction over cost cutting is clear demonstration that their focus transcends and represents a real commitment. We applaud that and know we can all learn from their example.
[Source: Nation’s Restaurant News]
