ELECTRONIC HOUSE CALL - November 10, 2006

The Information Marketing conference last week was amazing! My brain is about to explode with new ideas and projects. Fortunately the Birthday Bash in Las Vegas next week is my last official function of the year. After that there is just a houseful of friends for Thanksgiving dinner ... and 2+ weeks in Italy for the annual fall planning conference.

I am hoping to take the rest of December and January off. I am SO far behind on getting things organized in my office and elsewhere around the house -- an unfortunate consequence of a hectic travel schedule (and my tendency to work in piles!) Clutter drives Margene crazy ... and when Mamma ain't happy, ain't nobody happy!

There is also lots to do to get ready for the Super Summit and all the new projects I have in mind for 2007, so a little extended down time will be very welcome. I hope you are also making plans to step back, relax and enjoy some quality time with family in the midst of the holiday madness.

POVERTY IS RELATIVE
Poverty is relative -- whoever has the least tends to feel oppressed, no matter how much they have.

This is why a professional athlete making $4 million a year feels the need to whine and complain when a peer gets a contract for $4.1 million! It is also why when the wage of the lowest-paid worker is increased, everyone else expects a raise as well. It is not about what the bottom guy makes, it’s about what they make relative to what the bottom guy makes.

On the job, if workers feel that other comparable individuals or groups have a better deal than they do, it makes them feel less secure regardless of how much they are getting. They can even feel this way if the gap between the compensation packages for staff and management seems too wide.

The feeling of having less than one's peers has a serious impact on most workers' sense of personal well-being. When an entire group is affected, the feeling of inequity can be a major factor in a lowered work climate ... and I expect you will have to deal with it in the very near future.

Six states approved an increase in their minimum wage this week and 18 others already required more than the federal minimum. With the coming shift in the control of Congress, an increase in the national minimum wage is likely not far behind. (Don't whine. It's long overdue.)

Personally I think the idea of a minimum wage is inherently flawed ... but it is the law. Get over it, adapt and move on. The good news is that increased wages will necessarily trigger higher prices and that will allow many operators to finally get their margins back where they need to be to make a reasonable profit.

I can tell you from experience that restaurateurs are more reluctant to raise prices than our markets are to accept them. Many years ago I remember months of anguish as we debated whether we could raise drink prices above $1 That price point was certainly a serious psychological barrier but when we finally did what we knew we had to do, there wasn’t a peep from my guests and business actually improved. I kicked myself for the money I lost by not doing it as soon as it was obvious that it had to happen ... but that is part of the learning process.

So you should be prepared for minimum wage to go up, but don't panic. The sky is not falling. You will survive and prosper. However, I suggest you should be cautious about giving permanent pay raises until you have a better idea of what the minimum wage picture is going to look like. (Bonuses usually work better than raises anyway.)

If you increase anyone's wages now, you will only have to do it again when the minimum wage changes, if only to keep everyone happy with their relative positions on the salary scale.

NOW WHAT?
Every month for over five years, as part of my Management Insight Series, I have produced interviews with people in the industry who were doing interesting, unusual and thought-provoking things. The CDs were sent directly to my sister Janet on Cape Cod who took care of the mailings. It was great -- I didn't have to worry about any of the logistics.

But Janet is planning to relocate to North Carolina and has started to clear out her house. She said she was going to send me all the extra MIS cassettes and CDs. I was expecting 100, maybe 200 CDs.

Four boxes arrive a few days ago (see photo) and I was stunned that the shipment weighed 150 pounds! Yesterday I got a fifth box -- another 80 pounds! That makes 230 pounds of CDs! What in the world am I going to do with 230 pounds of CDs?

I'm sure I can come up with something interesting ... but I surely have to figure SOMETHING out by the time the Birthday Bash wraps up next week. You know how Margene is about clutter!

LAST CHANCE!
On Monday and Tuesday, a select group of operators will discover how to bridge the gap between intention and implementation. In an interactive, hands-on program, marketing guru Joel Cohen and I will help them see how to get out of their own way and actually achieve the massive sales increases they have been hoping to get for years. In short, they will discover THE SILVER BULLET.

Time is certainly short, but you wouldn't be the first to make a last-minute decision to be there. When you consider the cost of NOT learning this secret, of wasting another year "meaning to get to it" while money you could have made goes into your competitors' pockets instead of yours, the Birthday Bash is truly an offer you can't -- or shouldn't -- refuse.

It is your income, your business, your life ... and your choice. Are you ready to give up excuses in favor of real results? If so, you really need to join us in Las Vegas on Monday and Tuesday. The Universe rewards action ... and we will even guarantee your complete satisfaction. But you have to be there! Flights to Las Vegas are frequent and rooms are plentiful.

The only thing that is limited is the opportunity to get THE SILVER BULLET for yourself. Find out more about the Birthday Bash and how you can attend at no charge.

THE NOVEMBER SURVEY
Look out! The first of the Baby Boomers are turning 60, meaning that the largest population group in the country is graying ... but these people are not like your grandparents.

They have led a much more active lifestyle (if you lived through the 60's you know what I mean!) and are not ready to retire into a life of shuffleboard and pablum. They will continue to stay active for many years to come.

They have money, they are used to dining out and while there are some inevitable limitations that will come with age, they still want the quality of life they have come to expect. If you can capture this market you will be set for years to come. Miss it and someone else will cash in on the age wave.

This month we look at what you are doing (could be doing, should be doing) to make your restaurant more senior-friendly and how you are -- or plan to be -- marketing to the Boomers. As usual, I will make the collected information available to all those who participate in the survey.

BTW, you can download copies of all past EHC surveys -- including the massive WOW Ideas collection.

Add your thoughts to the monthly survey.

THE PERPETUAL QUESTION
What did you learn from your staff today?

"You have to be kidding. Absolutely NOTHING! I am 66 years old and have been in this business for 56 years. I have never worked with such incompetent help. I'm so sick of baby sitting. As soon as my children take over, we're out of here." -- name withheld

Any guesses as to why my unnamed contributor is having so much trouble with her staff? The hard part of this is to understand that she is reacting appropriately based on how she sees her employees.

But what she doesn't see is that the way she thinks about them is causing them to behave the way they are. That may be confusing so let me give you an example: When I saw my staff as a bunch of crooks who would rob me blind if I didn't watch them every minute, I wasn't disappointed. When I saw the same people as intelligent adults who really wanted to make a contribution if they just had the chance, I wasn't disappointed either. They didn't change ... I did!

And that's my point here. If you are waiting for something or someone "out there" to change in order for your situation to be different, you will be waiting a long time. There is no "out there" out there. There is only your own thoughts that create your world as you see it. When your thinking shifts, everything changes as if by magic.

Did you ever work for a boss who was a "jerk" or didn't listen to your ideas? How motivated were you to excel on the job? Did you put in the extra effort and treat the place as if it were your own? What was it like to come to work every day?

By comparison, imagine a leader who has clear standards, treats you with respect, believe in you but won't accept less than your very best. Someone who listens to your ideas and considers what you have to say. What do you think THAT workplace would be like?

Never doubt that the most critical -- and perhaps profitable -- management skill you can develop is your ability to truly listen.

I will continue to collect your answers to this important question ... and you can add comments as often as you want. Just click on the link below and contribute your insights for the common good (and your own as well!)

What did YOU learn from YOUR staff today?

© 2006 Restaurant Doctor