Using Systems to Reduce Prime Cost
David Scott Peters, the founder of TheRestaurantExpert.com, is a consultant and one of our most popular Nightclub & Bar Show workshop presenters and session speakers. He specializes not only in teaching independent restaurant owners how to use systems for increased sales and increased profits, but also in teaching bar, nightclub, and other hospitality venue operators how to apply these same systems their businesses.
“The realization is there’s no difference in any restaurant when it comes to the same systems. So, our company is called TheRestaurantExpert.com and we apply to bars, restaurants, nightclubs, caterers…everybody,” says David. “As long as you have people, you have product, and you’ve got to deliver that to your guest, they’re the same systems; it’s just different products or different processes but it’s all the same. Whether it’s food related or liquor related, they are the exact same systems.”
The nationally acclaimed restaurant coach who developed the unique SMART Systems and Restaurant Owner Matrix will be presenting an intensive workshop at the 2016 Nightclub & Bar Show in Las Vegas entitled The Operational Systems You Need to Dramatically Reduce Your Labor Cost. David will also be presenting an education session called Survival Tools: Costing Cards Rescue. If it isn’t apparent yet, David teaches systems that target prime cost, reducing it, and helping operators make more money. Use discount code SAVE30BARNEWS when you register for your conference pass to receive a $30 discount and make sure to attend David’s presentations.
On Tuesday, February 16, we will be hosting a free webinar presented by David focused on helping operators understand who they are as a restaurant owner, embracing change, reducing costs, putting systems in place, and boosting profits. In order to better understand who an owner or operator is within their business, David created the aforementioned Restaurant Owner Matrix. To better prepare for the free webinar, please download TheRestaurantExpert.com's Special Report. This is an invaluable resource that can help you realize what sort of operator you are, how to become a leader, and what systems you can put in place to become just as successful as your big-chain competitors.
“I wanted to understand who my demographic was,” David says. “Who is a restaurant person?”
What he has found is that there are 4 distinct types of owners: The Crazy Maker, the Pencil Pusher, the Social Worker, and the Head Coach.
“If I have very few systems in place and I don’t communicate, I’m a victim in my business; I’m a Crazy Maker. This is a person who is very much a victim in their business and allows things to dictate what goes on around them,” explains David. “Now, the more I pay attention to the numbers and the systems, the more I become a Pencil Pusher. Often these people can be impatient and run their businesses via the security camera which is not how you run a business.”
David goes on to explain that Social Workers pay more attention to guests and delivering Wow customer service, incredible drinks and food. They’re really focused on the people-side of things – guests and employees – rather than their numbers.
“Ultimately, to be successful, we’ve got to be a leader. We’ve got to be a head coach.”
That means forcing the Pencil Pusher to communicate. It means making the Social Worker focus on numbers and put systems in place. Systems, says David, make an operator a leader regardless of whether they take to that role naturally or need to work on it. But what are these systems?
“There’s no system too big or too small,” David explains. “A system can as simple as counting out a bar drawer the same way every single time. For instance, in a bar situation it’s all too often that each manager has a different way to get that bar drawer back to $300 each night. There’s an inconsistency and it makes it difficult for you to check on what they’re doing and not missing money.”
Systems help operators impose their will without being on site. In order for these systems to work, however, they need to be documented, specific and clear. Leaders – Head Coaches – need to tell their employees exactly what their job is, how to do that job, and how well it should be done. When systems are implemented in this way, they’re trainable. Essentially, you have to say, “I don’t care that there may be a faster way, you’re going to do this my way.” It can either be as complex as dollars per labor hour analysis, costs of goods sold, and recipe costing cards or as simple as checklists.
So, who should attend David’s workshop, session and free webinar? You, if you’re prepared to take action.
“If you’re ready for change, you want to make more money in your business and actually have people understand why we do these things, and get motivated to get it done, that’s who needs to show up,” says David. “It’s all worthless if you go home and do nothing. The key is making sure you do something – it doesn’t matter how much.”
To register for David’s free webinar, 7 Simple Systems to Control Your Food Cost and Explode Your Profits, click here.
To download a copy of TheRestaurantExpert.com's Special Report in PDF format, click here.