ELECTRONIC HOUSE CALL - November 5, 2004

It's amazing how time flies when you are having fun. Ten days has just disappeared and we are on our way back to the US ... and the aftermath of the presidential election (if, in fact, it is actually over yet!)

Since I am otherwise occupied, I thought this might be a good time to recycle a rant that originally appeared in my EHC on October 8, 1999. I deleted a reference to the effects of a strong economy (pity) but otherwise it is as it was then.

Who's Running Your Business?
I, for one, am getting sick of hearing operators whine about the labor situation. "There are no good people out there," they whimper. "I'm forced to hire to a lower standard just to fill my shifts ... if I can even do that." So it is harder to find good people. So what? Is the labor market running your business?

When jobs are tight, wages tend to increase. The law of supply and demand requires it. "But I can't afford to pay that much," they chorus. "I'll lose all my customers if I raise prices." Am I the only one to hear strains of "the sky is falling" in this attitude? Well, if you don't take care of your guests, you will lose them anyway. The sky is not falling, it is just that wages are going up. You have never been able to attract the talent you need by paying minimum wage anyway! So what? Are wage rates running your business?

Don't get me wrong. I understand that it is more difficult to find the sort of people you need to give your guests the consistently excellent products and service you want them to have ... but so what? All this means is that your old methods of staffing don't work any more. Instead of griping about it, change the way you staff the place!

Can you imagine a professional football coach, losing game after game, sitting quietly in the locker room hoping that the running back he needs will accidently drop by looking for a job? Of course not! The super stars are already employed! If you want talent, you have to go out there, find it and recruit it.

You know the sort of folks you need. Are you actively seeking them out? They are everywhere ... but they are not wandering the streets looking for work. I know of one multi-unit operator whose VP of Operations is a woman he found working in a dry cleaner! He was impressed with her service ethic and made her an offer she couldn't refuse. She learned the business and is now running his company. Where else have you looked for potential super stars?

Think about it. Compared to what we do for a living, most other businesses are deadly boring. With a population so into "experiences" as ours, don't you think that you can find a few folks in your area who would trade boredom and a dead-end job for a little excitement and a chance to have more say in their lives? They are not going to knock on your door without an invitation.

What was that? Give them more say in their lives? That, too. You will not be able to attract super stars to an oppressive environment (or at least you will not be able to keep them there once they figure it out!) Even super stars need direction and coaching, but once you are sure they understand the game, you must give them the latitude to shine on their own.

Relax a little more. Train a LOT more. Be willing to achieve the results you want in ways other than the ones you would have chosen. If you give people the latitude to excel and believe in their innate ability to shine, you will rarely be disappointed. The good people demand this freedom ... and so what? They deserve it.

I also understand that higher wages and better benefits (yes, that too!) probably mean you will have to raise prices ... but so what? Are menu prices running your business? If you are in a market that will not recognize, appreciate (and pay for) a higher quality experience, you are in trouble no matter what the economic conditions. Do what you have to do to deliver to your own standards and charge what you have to charge for it.
(Hint: make sure you educate your guests about what you are offering them so they understand its worth. If you can't create a point of difference, you have to compete strictly on price.)

The sky is not falling. The basic game has not changed, only a few of its ground rules. Your choice is to acknowledge reality and change with the times or become a statistic to stubborness. The fact that you have never had to do any of these things before is no excuse to sit there whining while your restaurant slowly collapses because your guests stopped putting up with substandard products and services.

If you want to be successful in this business, you have to earn it. Who cares if it is tough? Of course it's tough. So what? The ability to prosper in spite of outside conditions is why you get to call yourself a professional. So stop complaining and start doing what you know you need to do to prosper ... or is your ego running your business?

I feel better now. :-)

The Perpetual Question
What did you learn from your staff today?

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