ELECTRONIC HOUSE CALL - January 7, 2005

As you read this, I am slaving away in Cancun, Mexico trying to learn how I can do a better job of providing information to the industry. Yes, I know that it is a rough assignment but trust me, there is no lying-around-on-the-beach time here ... at least not all the time.

What are you planning to do this year to sharpen your own axe, develop your skills and generally become more effective?

As a former client once noted, "It always bothered me that my crew resisted all efforts at training. Then I noticed that it had been forever since I had done any personal or professional development work myself. Once I started attending seminars, my staff became much more open to new ideas."

Happy New Year
The very idea of getting a whole new, clean, unblemished, untarnished, fresh year to work with is really cool. Whoever figured this "gimmick" out, here's to ya!

What a perfect opportunity to hit "Reset." Jettison last year's grudges and resentments. Forget the old year's disappointments, frustrations and mistakes. Carry over only the good stuff. Lay out a new plan on clean white paper and have at it.

Here is a psychological trick: always back your car into its parking place. This way, every time you get started, you are already moving forward.

And make no mistake about it, the name of the game is moving forward. We have all screwed things up in our lives and we all grew up in dysfunctional households. Get over it. The traumas of the past now have life only as memories and if you let them go, you can move ahead unencumbered. This business is tough enough without dragging any unnecessary baggage with you.

So form a clear picture of what you want this year to look like ... and then start taking actions that will move you in that direction. You have the better part of 52 weeks left to work with. What are you going to do with them?

Q&A
In light of some recent articles about small restaurants closing in the face of voter-mandated increases in the local minimum wage, one of my subscribers asked me this question: "Why does the restaurant industry for the most part feel that paying a living wage will lead to its demise?"

Perhaps the industry feels that way because in many cases it is true. We have built the restaurant business based on minimum wage jobs. What operators have to learn is how to get more done with fewer employees who are more productive and making more money.

Good operators may already be paying more than these new minimums, so the issue is not whether it is possible for a particular restaurant to survive at that level. The problem is that not ALL restaurants can survive at that level. That is certainly a statement about the value proposition of the restaurant, but my problem has always been that the market, not the government, should make market decisions.

The other issue is that poverty is relative -- whoever has the least feels oppressed. If minimum wage increases only affected those at the bottom of the scale, they wouldn't have such impact. But when the lowest people make more, everyone else in the organization wants -- no, expects -- a raise to maintain their position relative to the lowest paid positions. The net result is a huge increase in payroll at a time when many operators feel they cannot raise prices without pricing themselves out of the market. (Whether that is true or not is a topic for another day!)

Although it does not necessarily have to be this way, the end result of all this is that the public will pay more for meals out and there will be fewer restaurants to provide them. This may be a needed shake-out of the market but there are definite short term repercussions, not the least of which is the loss of employment for people with low job skills.
Granted, you cannot support a family on six bucks an hour, but most of our workers do not have a family to support and have not yet developed the skill sets that would make them worth $10+ an hour. So instead of a group of young people employed at a low wage, you have a group of unemployed ... and unemployable ... young people hanging out. How can that be an improvement?

To me, the key to survival lies in a shift of understanding on the part of restaurant managers.

You cannot run a successful business with the old model and the new wage rates. You need to shift your thinking, shift your management mind set and create an organization that fosters (and rewards) productivity. Few if any understand how to do that ... which, I guess, is what keeps me in business.

Be Afraid ...
... be very afraid. I just read a new book that chilled me to the core. No, not Stephen King ... a book by a couple of New Orleans waiters that details how to rip off a restaurant. I will fill you in next week.

Super Summit 2005
The goal of Super Summit 2005 will be to help impart the shift of understanding that can help you survive and prosper in the face of ever-increasing uncertainties ... like a major increase in your wage structure.

I am pleased that over a dozen people have already completed an application for Super Summit 2005. With the others from their companies that they want to bring, we probably have the program 1/3 filled before the first promotional pieces went in the mail.

Because of the nature of the program and the need to keep the group small, attendance will be on an invitation-only basis. If you would like to receive an invitation, the first step is to complete an online application questionnaire.

Find out more about what makes Super Summit 2005 such a unique event. Just click on the link below.

Get the whole story on the Super Summit at http://www.supersummit.net

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

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