My family went out for dinner last weekend. The food was great, but the service was horrible. Horrible! We usually have a great experience at this restaurant, so my wife asked me “What is going wrong?!”
The answer to that question is almost always the same: They were focusing on the BOTTOM LINE and not the TOP LINE.
I can usually prove my point in under five “WHY?”s …
The service was slow.
“Why was it slow?”
They were understaffed.
“Why were they understaffed?”
They expected less business than they had.
“Why didn’t they staff a bit higher just in case?”
They wanted to save labor dollars.
“Why would they try to save the amount equivalent to 2 additional servers at $5.46/hr for 4 hours… roughly $44??”
Because they were too focused on the BOTTOM LINE!
They saved $44 in labor at a restaurant with a $55 per person check average. The tables all around us had a terrible service experience. If each person tells even 2 people (or more – thank you, social media) … that is a $44 savings that will have significant impact to your TOP line. And THAT is exactly where restaurants need to focus: driving TOP LINE sales!
Instead of focusing on CUTTING COSTS, which can have a direct impact on the guest experience, consider where you can ELIMINATE WASTE. Where did you waste $44 in labor? Could you bring a couple of cooks in later in the morning and still accomplish goals … without impacting the guest experience?
Have you had success in eliminating waste and driving top line sales? Let me hear your success stories! I’ll share a few of mine in upcoming posts.
Your guests will see you cutting cost. Your bottom line will see you cutting waste.