Last month, Kickfin sponsored FSTEC, a premier industry event in Texas, where co-founder Justin Hassan had the chance to moderate a panel of executives from top-tier franchises. He sat down with:
Panelists discussed the “hidden” costs of a traditional tip program — and how revamping their approach to tipping has improved recruiting and retention, cut labor costs, streamlined accounting, and reduced theft, human error, and compliance issues. If you missed it, scroll down for a quick breakdown of key takeaways.
Tipping Is Here To Stay
Compensation is more important than ever, especially in a tight labor market. Most hospitality workers have come to expect and enjoy the benefits of being tipped out in cash on a nearly daily basis. Tips not only help employees pay their bills, they keep your labor costs down as well. With the added tip revenue, tipped service employees’ earnings increase to $25 an hour, on average—a far cry from the $7.25 per hour national minimum wage. Can you afford to pay your employees the equivalent of what they make in tips? If not, tips may be the only way to find and retain skilled service workers.
Cash and the tip-out dilemma
Most customers are paying with credit cards or digitally—leaving restaurants without adequate cash to tip out employees at the end of each shift. Even with this roadblock, 90% of restaurants are still tipping out with cash.
But tipping out with cash comes with a host of hidden costs:
Weekly or daily bank runs
Expensive cash deliveries
Risk of theft, skimming, and human error
Tedious cash counting & distribution
Labor costs (waiting on the clock)
Rounding up to the nearest dollar
Complicated reconciliation and reporting
Tipping Transformation
These days, higher earnings from tips aren’t enough to keep your best employees around. Naturally, workers want more control over their pay—and when they receive it.
According to a recent survey of service workers:
83% want instant access to their pay after every shift
80% prefer funds to go straight to their bank accounts
81% are more likely to choose an employer that offers on-demand pay
3 Steps To Reinventing Your Tipping Program
Restaurants should aim to stay ahead of the curve when it comes to digital tipping—or you risk losing your best employees. As you revamp your traditional tip processes, follow these steps to ensure a smooth transition.
Talk To Your Employees
Present your employees with better options than cash-only tips, including instant digital tips, tip-out cards, and payroll tips. By putting the choice in their hands, you’re empowering employees to control their financial future. Most importantly, be sure to explain why this change is good for both employees and the business as a whole.
Revisit Tipping Laws
Laws vary from state to state and country to country, so you’ll need to be up-to-date and flexible when it comes to your tip structure. It’s especially important to read up on tip-pooling laws, as new litigation has been popping up frequently. With compliance in mind, seek a solution that helps you stay above board by placing guard rails around your tip program.
Choose a Vendor
Before you can implement a new tip program, you’ll need to choose a vendor. Look for a partner that has a robust customer service department to help you smooth over any bumps in the road and help you train staff. Ultimately, this relationship should help you build your business and hire new employees, while helping your employees reach even greater financial success.
Interested in simplifying your tip-out process? Request a demo to see how Kickfin works.
Tipping out in cash is one of the most analog processes in the restaurant industry. And it’s more than a headache: It’s probably impacting your bottom line.
From time-consuming bank runs to tedious cash counting to the ever-present risk of theft and human error: cash tip-outs are, quite simply, a liability for your people and your bottom line.
And yet: 90% of restaurants continue to pay tips in cash.
We get it.
Change is hard, and sometimes the status quo is the path of least resistance. But there’s never been a better time to hit the reset button on tip-outs.
Going into 2023, digital tipping will be one of the largest transformations to the hospitality and service industries.
If you’re not sure where to start: we’ve got you covered.
Get the Restaurant Exec’s Guide to Digital Tipping [2023 Edition]
Check out our free Digital Tipping Guide to learn about the overnight, measurable ROI you can expect when you make the switch. Inside the guide, you’ll get more details about the hidden costs of cash tip-outs as we move to an increasingly cashless society.
You’ll also learn about the less-obvious benefits of cashless tipping, including:
Reduced employee turnover
Robust tip payment tracking and reporting
Org-wide compliance with complicated tipping regulations
And more!
Plus: when you download the guide, you’ll get a rundown on the Top 5 “Must-Haves” when selecting a digital tipping solution. Choosing the right vendor is key to the success of any digital tipping program — and it all starts with understanding your own needs and understanding all of the options on the table.
Want the Cliff Notes version?
We’ll break it down for you. A digital tipping platform allows you to tip out your servers, bartenders, and other hospitality staff without the hassle of payroll tips, bank runs or bill-counting.
To get all of the benefits of digital tipping, it’s critical that you select a software that gives your employees the options — including (and especially) the option to have their tips sent instantly and directly to their existing bank account.
Whether they opt for instant digital deposits or payroll tips, employees appreciate having more control over when and how they get paid. On top of happy employees, your flexible payment options make for a great hiring tool to attract excellent workers, even amidst a labor shortage.
If you want to skip the guide and see digital tipping in action: schedule a demo today and we’ll give you a free, personalized walkthrough of Kickfin!
The craft brewing industry is tight-knit, and the community relies on each other for best practices, vendor recommendations, and camaraderie—especially on social media. Thanks to groups like Craft Brew Professionals (CBP), brewery owners can connect to share successes, rant, or ask honest questions about how to better run their businesses.
CBP also opens the dialogue for suppliers, tech companies and other industry leaders to discuss important topics facing breweries. Kickfin co-founder Justin Roberts joined the Craft Brew Professionals Panel to get into all things tech—and why the craft brew industry is still quite analog. The panel included CBP Host Andrew Copolon, PK Agriwal of Beer30, Dan Hornbrook of BrewLogix, Ian Purcell of BarTrack, and Ian McHarg of Country Malt Group.
Brewery visitors are seeking new experiences and digital capabilities.
Much like other service-oriented businesses, brewery owners are noticing that customers want a lot more out of their visit than an extra-hoppy IPA. Dan’s work with BrewLogix gives him lots of insight into brewery customers’ expectations.
According to Dan, “People are looking for more than just products; they’re looking for experiences.” He went on to explain how his website, BreweryDB, helps beer consumers find the right brewery for every occasion. “If you’re searching for a date night with live music or you want to make sure they have a kid-friendly menu, you can look that up and use filters to take a dive deep into the breweries before visiting.”
Part of the brewery experience is also talking to knowledgeable bartenders. Believe it or not, tech can improve your bartenders’ performance and average check size. Justin noted, “One unique evolution that we’ve seen around digital tipping is that it’s finally putting valuable data in the hands of the operator to then empower staff. They’re all there to make money and have fun, but why not show those employees the true reward of giving great service through tip transparency?”
Andrew added, “One of my favorite metrics is tip percentage because if Dan’s behind the bar and he’s consistently getting tipped 16% but Justin’s getting 26%, Justin’s obviously engaging at a higher level.”
“Customers are looking for a higher pace of knowledge at a brewery compared to a craft beer bar, so how can breweries leverage that?” asked Andrew. “It’s about educating staff on the product so they can talk about it more effectively. In the end, hopefully they’re getting more tips and ringing in more beers. Technology really can give staff a bigger arsenal to get more tips and add more money to their pockets.”
Customers are mainly paying with cards or digitally these days and will soon expect digital capabilities with nearly every service experience, including at breweries. CBP’s Andrew Copolan asked Justin if he expects cash to be phased out in the near future.
“There will always be people that literally want to remain unbanked and pay in cash,” said Justin. “However, more people are on Zelle than ever before, and most younger people are paying digitally. People aren’t even writing checks to pay their bills anymore. As we inch toward over 98% of transactions being cashless in the next five years, I would assume that basically everything would be digital.“
Breweries are behind the learning curve.
Beer is one of the oldest industries in the world. For centuries, brewers have been refining their crafts and inventing new processes and types of beer. In such an old-world industry, it may not be surprising that technological innovation is lacking.
“I noticed when I went to breweries that used popular software systems, they would still have a binder full of paper logs, whiteboards, and spreadsheets,” said PK. “I quickly realized that there wasn’t an industry standard when it came to brewery data tracking.”
Dan agreed, “People are still shaking kegs to find out what’s inside of them, which is pretty wild that that’s still the standard practice to know how much beer is left in a keg. We have a great product that helps solve that and saw the opportunity to get some real-time data to people’s hands.”
To drive home the point, Ian from CMG added, “People put bulk malt into silos, and to check the levels, they knock on the silo with a rock or a stick. We thought, why not put automatic sensors in there to tell us when it’s time to place a new order. Or, what if we created an app where customers get prompted to order the same product they ordered last year. Again, we just want to make people’s lives easier.”
Customer feedback is a goldmine.
The panelists all shared their appreciation for customer feedback and how it shapes their business decisions. PK said, “I always tell our clients not to worry about hurting my feelings, I need to know what they hate the most about what we’re doing because that feedback is actually gold to us. It allows us to grow as a company and identify where we can improve ourselves.”
Feedback also empowers them to take a closer look at which services and features really wow their customers so they can improve even further. Dan explained, “It’s really cool to have those moments of realignment and choose to put more time and effort into building out a feature that customers really want. As leaders of our organizations, we have to be humble enough to do things not because we think it’s right but because it’s what the customer wants. It’s not easy, but ultimately, that will guide you in the right direction.”
Of course, tech-minded companies are using social media to get real, honest feedback from their consumers, which they can turn into improved products and features. “Thanks to groups like CBP, everybody can be very vocal about what’s causing them headaches,” said Ian (CMG). “Social media, for all of its challenges, has offered a platform where we can hear what the most people need and why, and that allows folks like us to try and meet those needs. It’s fantastic just to follow the pulse of the industry based on people’s comments, questions, and sometimes even rants in CBP because you learn so much.”
Measuring success.
What does success look like for brewery-tech companies? For most of the panelists, success is becoming a real partner with their customers and providing valuable data. As Andrew put it, “You’re there to be an engaged partner, holding their hand through it. You don’t want to just dump a bunch of data on them; you want to teach them to use that data and really help implement data-informed decision making.”
Dan also hoped for data to drive growth, adding, “Our goal is to deliver data in a way that helps make a business decision that will help them grow. We want it to be data customers can trust, and data that they can use to better prepare staff. Really, we want to empower them to grow their business, so if we see our partners growing, then we’re doing our job right.”
For Justin, success comes in many forms. Not only does he aim to quickly convince operators of Kickfin’s value, he also hopes to better the lives of the tipped employees. “We are always focused on a 24-hour ROI,” he said. “If we can’t show that digitizing the cash tip-out process is going to save you time, money, and a whole bunch of accounting nightmares within 24 hours, then we’ve lost our seat at the table … Kickfin offers employees a way to live more financially-sound lives by sending that digital money to their bank of choice as soon as their shifts end.”
We were honored to connect with other service-industry leaders who want to help breweries harness the power of tech and data to ultimately strengthen their businesses. To watch the full conversation, click here.
Are your managers struggling to keep up with constant cash runs to pay your employees? While restaurants have traditionally paid out in cash, it’s becoming more challenging as more and more customers pay their bills with credit cards or digital methods. Cashless tipping solutions are easier for both you and your employees, but you have some options when it comes to giving up the Benjamins. Tipping on payroll is one way to eliminate some of the issues that come with cash—but is it the best solution for your business model?
Why are employers considering tipping on payroll?
Whether your tipped employees are servers, bartenders, bellhops, valets, or estheticians, they most likely rely on tips for the majority of their pay. What’s more: they expect to get those tips at the end of every shift. (In fact, real-time access to tip payouts is one of the biggest draws of working in hospitality.)
So why would an employer suddenly make the switch to payroll tips — requiring employees to wait days or weeks for their earnings?
Well, as noted above: The increase in credit card and digital transactions has made it nearly impossible to pay out cash tips on the daily. Many employers know their people want instant access to their earnings, so they’re going to great lengths to get the cash they need to pay out tips — even if it means making late-night bank runs or paying for expensive cash deliveries.
(Of course, it’s worth noting that jumping through those hoops still doesn’t solve for other risks and headaches associated with cash tip payouts — like theft and human error, poor tracking and reporting, and the general inefficiency of counting and distributing cash.)
So it’s no surprise that hospitality employers are looking for ways to introduce cashless tip payouts. Many have turned to new technology in order to enable cashless tip payouts. But some restaurant teams are exploring alternative methods of paying out tips — like putting tips on payroll.
Pros and cons of tipping on payroll
If you’re looking for better insight into your tip-outs, going cashless is definitely for you—and tipping on payroll is one viable option. Weigh the pros and cons to determine if it’s a good fit overall.
Pros:
Reduced risk of theft
Tips, hourly pay, and taxes all input in the same place
Simpler closing duties for managers
Cons:
Employees lose instant access to tips
Potential loss of employees to other restaurants
Prepping for payroll tips
If you’ve decided that tipping out on payroll works best with your business model, you’ll need to set yourself up for success. Prepping your team, building new processes, and unlearning old habits will ease the transition to payroll tipping.
First of all, you need buy-in from your tipped employees. (As noted above: Switching to payroll tips will disrupt their regular payment schedule and could ultimately put them in a challenging financial situation, as many tipped employees are accustomed to daily pay. If they aren’t comfortable with the break in pay or biweekly payroll, know that they could begin looking for another job that pays tips daily. If you’re worried about losing employees in such a tough labor market, learn about other cashless payout options here.)
You’ll also need to update your accounting practices to reflect your new tipping methods. Not only will a financial revamp clear the path to input tips into your payroll process, it will also ensure that you’re not overcompensating employees due to incorrect tip credits or other payroll tax issues. Non-tipped employees, like your managers, will need updated training on how to complete the payroll process under the new conditions.
How to tip out on payroll
Calculating tips will look a bit different when your managers input them on a weekly basis rather than every night. The cash counting may be tedious, but it’s what your managers are used to. They’ll need specific guidance to make the transition to payroll tips.
For your managers to succeed, you’ll need to establish a process for tracking tips by pay period. You could simply use an excel spreadsheet, purchase new software, or see if this is a capability of your payroll processor. No matter what system you use, you should show managers how to properly apply tip credit and taxes—but be careful. Your business could face serious consequences if employees aren’t properly compensated under your new system.
As an employer, you need to be wary of the laws surrounding tip credit. While you’re likely already aware of it, double-check your state’s minimum wage to see if it differs from the federal tip credited minimum wage of $2.13 per hour. You should also ensure that managers don’t make any tip-tracking mistakes. Employers are strictly prohibited from keeping any tips, so if you accidentally underpay an employee on payroll, it could be considered improper retention and cost you over $1,000 per incident.
Moving away from cash is a big (and maybe scary) step for industries that rely heavily on tip compensation, but the saved time and more secure finances are worth it. As you weigh your options, always keep the tipped employees’ financial security as your top priority. Whether you choose to tip out on payroll or work with a digital tip solution, you need their buy-in—or you’ll risk losing them to your competitors.
An employee-friendly alternative
Unfortunately, tipping out on payroll has the potential to backfire in some big ways. Employees may not be crazy about a disruption in the daily pay schedule that they’ve come to expect, and may even question if their tips are being properly calculated each week. Bottom line: The long wait time and lack of visibility with payroll tipping can spook your hard-to-find employees.
If you’re looking for a cashless tip-out system that won’t have your best workers weighing their employment options, consider a digital tipping platform like Kickfin. Tips go straight into employees’ bank accounts the second their shift ends, and managers can digitally tip out their entire team in less than a minute. Learn more about instant cashless payments.
Restaurant trade shows are back, and we couldn’t be more excited.
We’re still in one of the most challenging times for restaurants in recent history — and the only way out is together. That’s why it’s more important than ever to connect with your colleagues in the restaurant industry.
If you’re thinking about attending a restaurant conference this year, we’ve compiled our list of favorites that give you the biggest return on investment (and can provide solutions to the thousands of questions, fears, and hardships you’ve faced since the last time you attended one). You may even see us at a few!
Why You Should Attend a Restaurant Trade Show
Let’s face it: running a restaurant can be a very lonely business. It’s the great irony of being a restaurateur — you’re in the business of serving others, but you rarely get help yourself. Restaurant trade shows and conferences give you a chance to connect with other restaurant owners who may be struggling with the same challenges you’re going through — or to learn from folks have been there, done that.
Restaurant trade shows give you the opportunity to:
Take a break! This is a tough biz — and that’s true whether you’re running your own restaurant, playing the franchise game or operating an enterprise brand. The restaurant world never sleeps, and it can be hard to get away. But it’s important to give yourself (or your team) a break from the daily grind. Restaurant trade shows and conferences are the perfect opportunity to take a breather, bond with your colleagues, and get inspired.
Learn something. So many people and ideas in one place means there’s bound to be something you haven’t tried before, whether that’s a new culinary technique, business best practice, or tech solution. So come with an open mind, and be ready to take what you learn and apply it to your business when you come home.
Meet new people. The best part about restaurant trade shows is the people. These conferences draw diverse crowds who hail from all different places and walks of life — but who have a lot of common ground when it comes to their passions and professions. And they tend to be friendly folks (hey, it is hospitality, after all). Trade shows foster an environment that’s ripe for connection, collaboration and a lot of shared learning.
What to Expect at a Restaurant Trade Show
Every trade show is a little different, but you can expect a mix of structured content (think: speakers, seminars, workshops) and downtime (perusing the exhibition hall, networking events, etc.). Often, keynote speakers kick off and end each day with high-level advice or inspiration. Throughout the event, you’ll probably have the opportunity to attend more focused sessions around industry trends or best practices; product demonstrations for specific items like appliances or software; and kitchen or food demos that show off suppliers or well-known chefs.
Formal networking opportunities like a happy hour or luncheon are often built into the event agenda. It’s also common for vendors or potential investors or partners to set up one-on-one meetings with restaurant execs and operators — either by reaching out ahead of time, or scheduling something on the spot at the event. But really: great networking can happen when you’re simply waiting in line for the elevators or grabbing a coffee. Everyone is there for the same reasons you are — to learn and make connections — so don’t hesitate to strike up conversations with fellow attendees.
Depending on the theme of the show, you may find more sessions around running the front of house, back of house, or the business overall. No matter what, though, you’ll come away from a trade show having learned, seen, or met someone new.
With COVID-19 regulations, some shows have gone virtual or hybrid, streaming sessions online and moving networking opportunities to chat or through video calls. While virtual events offer a lot more accessibility — no need to fly halfway across the country! — you should still try to give them your full attention. The more you can immerse yourself in the event, the more value you’ll get out of it.
How to Decide Which Shows to Attend
Of course, one of the hard parts about restaurant conferences is that there are so many in a given year. Which to attend? You’ll want to balance:
Goals: What do you hope to get out of a conference experience? Are you looking to meet other restaurant owners and talk shop? Find staff at a hiring event? Learn about a specific aspect of the restaurant business? Upgrade your tech stack? Every conference is a little different, and that will influence your choice.
Virtual vs. in-person: With COVID-19 restrictions in place in many locations, some restaurant trade shows have gone virtual. While that makes it easier to attend (all you have to do is open your laptop!), it can be more challenging to network or to really test drive a new fridge you’ve had your eye on, for example.
Geography: How far away is the conference? Travel time and expenses can add up quickly, so if you’re on a tight budget, consider more local events.
Type of restaurant: Each event caters to a slightly different audience. Depending on your restaurant’s cuisine, business structure, and services (such as part of a hotel or brewery, for example), you may want to choose one event over another.
Budget. While your local association may help sponsor some events, ultimately, whether or not you attend an event (and how much of your team comes with you) depends on your budget.
The Top 7 Restaurant Trade Shows in 2022
This is only a small snapshot of the food and beverage events happening this year, but some of our favorites (and hey, you might even see us there!)
1. MURTEC // March 7 – 9, 2022
MURTEC, or the Multi-Unit Restaurant Technology Conference, happens each March in Las Vegas. This year the show is back at the Paris Las Vegas Hotel and Casino and designed to help restaurant owners digitally transform their operations. Past speakers hail from brands like CKE Restaurants, Restaurant Technology Network, Spyce, P.F. Chang’s, and Taco Bell.
2. Restaurant Franchising & Innovation Summit // March 30 – April 1, 2022
If you fall more on the corporate franchising side of restaurant management, this conference, which takes place every spring at the Grand Hyatt Nashville, is a great choice for you. Covering topics like product development, franchise operations, marketing and branding, and technology use and adoption, this multi-day event boasts a packed lineup with speakers from Panera Bread, Oath Pizza, Fat Brands, Fazoli’s, and more.
3. Restaurant Leadership Conference // April 10 – 13, 2022
Located at the luxurious JW Marriott Desert Ridge Resort in Phoenix, the Restaurant Leadership Conference is the event to bookmark if you want to hear from some of the biggest executives in the food and beverage space. With headliners like David Chang (Momofuku), Paul Brown (Inspire Brands), and Tucker Bryant (Google), the conference focuses on leadership skills and solving industry-wide challenges taking place today.
4. National Restaurant Association Show // May 21 – 24, 2022
The National Restaurant Association Expo is one of the biggest restaurant trade shows in the country. Located in the sprawling McCormick Place Convention Center in downtown Chicago, you’ll find miles of booths covering every aspect of restaurant management, from international suppliers to major appliances to food and beverage demonstrations to restaurant technology.
5. Your State Association Conference // Multiple Dates
If getting to Chicago feels out of reach, it’s a good idea to check your local state restaurant association to see if they’re running any events in 2022. Chances are, there will be a scaled-down version of the national show you can attend. These are a great chance to get to know your extended restaurant community, with more local networking opportunities and suppliers. Check your local chapter for dates and more information.
Some of the largest state association events include:
More than 1000 attendees and 70 speakers in the course of three days come together at the Gaylord Texan in Dallas for FSTEC every year. Known as “the event where restaurant and tech connect,” FSTEC is focused on helping restaurant industry leaders leverage technology to address real business challenges. The event features speakers from highly reputable national and global brands, including Dave & Busters, Restaurant Business, Technomic, Winsight, D’Angelo Sandwiches, Nathan’s Famous, and more.
7. Restaurant Finance & Development Conference // November 14 – 16 2022
Hosted by the Restaurant Finance Monitor, this event — taking place this year at the Wynn Las Vegas in November — focuses on the nitty-gritty operational side of running your restaurant. If you’re looking to secure funding or expand your business into a multi-unit or a franchise, this is a must-attend. Expect to hear from banks, real estate developers, private equity investors, government representatives, and more.
Restaurant industry trade shows are a great place to brush up on the latest restaurant tech. But if you’re still paying out cash tips? You don’t have to attend a conference to find a better way to pay. Schedule a demo with Kickfin to see how you can send instant, cashless tip payouts directly to your employees’ bank accounts.
Did you know tips your servers receive are taxable in the United States? But it’s not just the employee’s responsibility to track their hard-earned tips and report them as part of their taxable income. As a restaurant owner, tip reporting plays into your job, too; you have to make sure you know how much cash is flowing in and out of your business — whether it’s through regular wages or from tips.
Here’s the lowdown on tip reporting for both employers and employees.
Are restaurant tips taxable?
The short answer: Yes.
The IRS requires every tipped employee to report those tips to their employer. Generally, a “tipped employee” regularly earns over $30 a month in tips, so this likely applies to most of your waitstaff. Tips include any cash tips and tips added to credit or debit charges on a bill. If your server received it, it counts as income.
Both restaurant employers and restaurant employees are responsible for reporting tips to the IRS. The majority of the work, however, falls on the employee, and should be a part of their regular clocking out routine. We’ll talk more about what that looks like in a moment.
How do you report cash tips?
The way you report your cash tips to the IRS differs based on whether you’re a restaurant employee or the restaurant owner.
Your servers must:
Keep a daily tip record using Form 4070A, Employee’s Daily Record of Tips. This must include their legal name and signature, address, social security number, workplace, time period covered, and total amount of tips.
Report all tips to you by the 10th of the following month, unless the total is less than $20 per month
Report all tips on their individual income tax return using Form 4137, Social Security and Medicare Tax on Unreported Tip Income
While unlikely in a restaurant setting, the IRS also requires them to record any non-cash tips you receive, such as tickets, passes, or gift cards, and note the value in their individual income tax return
Employers must also report tips to the IRS. That means they need to:
Retain a copy of all tipped employees’ daily tip record
Withhold taxes based on combined wages and tip income and report those withheld taxes as part of Form 941 in your quarterly tax returns
Include tipped income as part of Form W-2, in Box 1, 5, 7, and 12
What is the FICA tax tip credit?
The FICA tax tip credit gives food and beverage business owners a tax break on employee earnings from tips. You still need to pay the FICA taxes (currently 7.65%) up to the federal minimum wage, but after that, you would be eligible for the credit. Talk to your payroll or accounting team, and learn more about it here.
Note: This is different from the FLSA tip credit, which you can opt-in to in order to save money on your minimum wage obligations. Essentially, it’s the difference between the federal minimum wage and base pay for tipped employees. For a full overview of the FLSA tip credit, click here.
5 tips for tip tracking and reporting
Tracking tips can be challenging, especially if you have multiple locations or more than one or two employees. Here are a few ways to make it easier:
Trust your accounting team. While the tip process can be tricky, it’s common practice in restaurant payroll. If you haven’t already, it may be worth investing in an accountant or accounting agency with food and beverage experience you can trust so you can focus on the day-to-day restaurant operations.
Use technology to your advantage. Depending on what you’re using, you may already have a built-in way to record tips at the end of every shift. Many restaurant POS systems do this, or you can look into apps like Just the Tips, ServerLife, or Tip Counter.
Set a reminder on your calendar and/or use your email service provider to send an automated email to your employees every month. You need the full log of the month’s tips by the 10th of the following month. Make it easy to get that information from your team by setting a calendar reminder or putting together an automated email through your email service provider you’re already using.
Include tip reporting training for your employees. If they’re new to the restaurant business, or they’re working for you as their first job, they may not know that tips count toward taxable income. Include information on how to do this as part of their employee onboarding or put it on the agenda for your next family meal.
Use Kickfin to pay tips instantly. Track tips and pay out through direct deposit with Kickfin, so tracking and reporting are easy come tax time.
Track your tips more easily with Kickfin
Kickfin gives you 100% visibility in tip payment history — by individual employee, by location, or as an entire organization. Get a demo here to see Kickfin’s tip tracking and reporting in action!
If you run a restaurant and you’re not yet a restaurant podcast junkie: Your time has come.
For those restaurant owners and execs who have blissfully ignored the recent podcast wave — we get it. Every time you turn around, it seems that someone’s launched their own show. It can be hard to separate the treasure from the…well, the other stuff.
But there are some real gems in the hospitality podcast world. If you follow the right folks, you’ll get unprecedented access to seasoned, successful (sometimes famous) restaurant pros. And they’ll lay it all out there for you — from unbelievable war stories to operational insights to crazy, never-before-shared growth hacks that actually worked. And of course, some that didn’t.
So: the next time you’re commuting to work, or traveling, or washing dishes, or trying to tune out your toddler’s tantrums (just us?), grab your AirPods and add these podcasts to your must-listen list.
The Best Podcasts for Restaurant Owners
Food on Demand // Tom Kaiser and Nick Upton
Food On Demand is a monthly podcast that covers the latest news “at the intersection of food, technology and mobility,” with a heavy focus on the future of delivery and off-premises operations. Most episodes feature a specific topic or trend — e.g., drone delivery, virtual kitchens — as well as interviews with experts and operators who are driving the evolution of foodservice. Past guests include David Bloom, Chief Development and Operating Officer of Capriotti’s; Don Fox, CEO of Firehouse; and Fred Lefranc of Results Thru Strategy.
About the hosts: Tom Kaiser is the editor of Food On Demand, a media brand for restaurateurs, foodservice professionals, restaurant technology suppliers, and catering and delivery providers. Nick Upton is the Restaurants Editor for Food on Demand and Franchise Times. In addition to the podcast, Food on Demand also publishes a weekly e-newsletter and hosts an annual conference.
Catch an episode: Episode 20 of Food on Demand features Meredith Sandland and Carl Osbourn, authors of “Delivering the Digital Restaurant.” Listen here.
FULL COMP: The Voice of the Restaurant Industry Revolution // Josh Kopel
Created in partnership with Yelp for Restaurants, FULL COMP is a weekly podcast that explores the past and future of the hospitality industry. Host and Michelin-rated restaurateur Josh Kopel interviews both renowned hospitality professionals (ever heard of Wolfgang Puck?) as well as thought leaders from outside of the industry — many of whom offer smart new perspectives on an old business.
About the host: With more than 20 years in hospitality under his belt, Josh created FULL COMP to help restaurateurs “survive the present and thrive in the future.” He also hosts Restaurant Marketing School, and he’s currently the president of the California Restaurant Association.
Catch an episode: Episode 160, “Offboarding Yourself,” features Michele Hecken, an executive coach who helps business owners get out of their own way so they can foster growth and empower their team.
Hospitality Hangout // Michael “Schatzy” Schatzberg and Jimmy Frischling
A production of Branded Strategic Hospitality and Foodable Network, Hospitality Hangout is a podcast devoted to all things hospitality, technology and capital. The “Restaurant Guy” (Michael Schatzberg) and the “Finance Guy” (Jimmy Frischling) explore the latest trends and breakthroughs in hospitality tech — which includes everything from digital marketing to kitchen robots. While the two lively hosts bring plenty of personality (and smarts) to the show, most episodes also feature conversations with industry leaders who know a thing or two about restaurant innovation.
About the hosts: Michael Schatzberg and Jimmy Frischling are co-founders of Branded Strategic Hospitality. Michael is also the managing director of Branded Restaurants (which Jimmy co-founded), and he has over 35 years of hospitality brand development, management, and marketing experience. An entrepreneur and finance professional, Jimmy has over 30 years in the financial services, capital markets and hospitality industries. He serves as partner and finance director at Branded Restaurants, and he’s a principal at Oak Branch Advisors as well as a trio of municipal bond data and technology companies.
Catch an episode: Season 5, Vol. 2 features Carissa De Santis, chief information officer at Dickey’s Barbecue Restaurants, who talks about building their virtual brand, international expansion, and more.
Restaurantopia // David Ross, Brian Seitz, and Anthony Hamilton
Restaurantopia is a podcast all about restaurant management and operations. It’s heavily geared toward independent restaurants — but really, there’s something for everyone. Episodes feature a wealth of tactical content, and it’s a great podcast to follow if you’re looking for information specifically around cost control, marketing, management and personnel issues. Interviews focus on real-world learnings and successes from guests like Ken McGarrie, founder of Korgen Hospitality, and David “Rev” Ciancio, a hospitality marketing executive.
About the hosts: David Ross is a sales pro and the COO of Hillcrest Foodservice, which sponsors the show. Brian Seitz, a member of the Hillcrest management team, has a background in operations, law and finance. Chef Anthony Hamilton is a graduate of the Culinary Institute of America and has more than 20 years of restaurant and hospitality working experience, ranging from quick-service outlets to full-service catering to fine dining.
The Restaurants Reinvented podcast spotlights industry leaders and change agents — both the seasoned pros and the up-and-comers you need to know. Host Jen Kern brings a strong perspective to the show, asking her interviewees insightful questions around brand building, guest engagement, and revenue-driving strategies. The knowledge and experiences shared here inspire listeners to approach historical challenges in new ways — and they can expect to leave each episode ready-to-implement tools and tactics for their own operations.
About the host: Jen is the CMO of Qu, a centralized restaurant tech platform that goes beyond POS to connect on- and off-premise ordering, loyalty, and production experiences for restaurant chains. A long-time CMO, Jen leverages her business acumen to draw out stories and insights from her guests that resonate with restaurant owners on every level.
MP TV is an “in-person video podcast” — but unless you really want to put a face to the voice, listening in is usually sufficient. Host Matt Plapp interviews restaurant and brewery owners and operators about their successes and failures in the business. Matt isn’t afraid to ask tough questions about wins and losses, and he likes to go deep on topics like building and retaining a strong team, brand development, and customer loyalty. In addition to business owners/operators, he’ll often bring on industry vendors and advisors — like food distribution execs and CPAs with a hospitality focus.
About the host: Take one look at Matt’s website, and you can tell he’s a busy guy. In addition to running MP TV, Matt is the founder and CEO of America’s Best Restaurants, an industry consultant for major franchise brands, and three-time author. He’s kind of the “king of content” for restaurants; if you’re ready to take your business to the next level, Matt’s probably got a resource for you.
Catch an episode: “Crunching The Numbers With Chris Rogers” features the CEO of AEH Accounting, who shares advice and ideas about restaurant marketing and finance.
BDO To-Go Podcast // Jeff Tubaugh and Dana Zukofsky
BDO To-Go is a monthly podcast hosted by Jeff Tubaugh and moderated by Dana Zukofsky. Each episode features subject matter experts who explore industry trends and best practices. The conversation often revolves around the impacts of ongoing consumer and economic shifts — and how to leverage constant change to achieve meaningful growth and success.
About the host: Jeff is a partner at BDO and Dana is a director in the firm’s National Restaurant Practice. Both Jeff and Dana have deep expertise in restaurant/hospitality accounting, compliance, and other financial aspects of the business.
There’s a special niche in the podcast world just for coffee shop and cafe owners (and plain old coffee-lovers). Chris Deferio’s podcast is a definite stand-out. Keys to the Shop provides coffee retail professionals the insights and tools they need to grow their business or advance their coffee careers. Chris, an expert himself, leans on fellow industry vets to deliver actionable advice around management, leadership, and personal development. At the time of this publication, Chris has produced over 300 episodes.
About the host: Chris has spent more than 20 years in the specialty coffee retail industry. His roles have included barista, trainer, multi-unit cafe operations manager, consultant — and of course, podcast host. His clients range from small-but-growing cafes to large, well-established brands.
Ask any seasoned restaurateur, and they’ll tell you the same story: Restaurant theft is a problem in the hospitality industry.
The nature of the restaurant business — and all-too-common messy accounting practices — open many restaurants up to everything from inventory theft to skimming to full-blown embezzlement. It’s not uncommon for restaurant theft to go unnoticed for days, weeks or even years — which can have a major impact on your bottom line.
While “inside jobs” account for a lot of the issues, you can’t assume that every employee is out to get you. (Of course, it’s never a bad idea to revisit and refine your hiring practices.)
But you shouldsafeguards and policies in place to protect your business and your people from restaurant theft. Here’s what you need to know.
A rundown of restaurant theft statistics you should know
The best defense against any type of fraud is data. Here’s what you need to know about restaurant theft:
75% of employees have fessed up to stealing from their employer — and up to 30% of business failures may be due to this kind of employee-based fraud. (U.S. Chamber of Commerce)
Restaurant theft causes up to $6 billion in lost revenue for restaurants annually. (Forbes)
The average employee steals 4.5 hours of work each week from their employer. (Connecteam)
80% of white-collar theft occurs at companies with fewer than 150 employees, and 50% occurs at companies with 25 or less. (Hiscox)
Who steals from restaurants: 5 different types of restaurant theft
Restaurant theft takes several different forms — not just making off with cash from the safe in the middle of the night. You may also experience:
Food and inventory theft: This could be as innocuous as snacking or drinking outside family meals, taking leftover food home or delivering “free” meals to friends or family stopping into the restaurant. But it could be much more serious, like swiping supplies off of delivery trucks.
Point-of-sale (POS) theft: This kind of theft is much more serious, from taking cash out of the register to inflating tips, or improperly ringing up items and pocketing the difference.
Accounting fraud: This can be a lot harder to spot, especially since you may have outsourced your accounting to a bookkeeper. This looks like underreporting earnings, skimming cash, setting up fake accounts, or manipulating the books in some way — and if caught, can lead to jail time for embezzlement.
Intellectual property theft: You’ve likely spent years fine-tuning your recipes and cultivating just the right ingredients or processes. If you have staff that work in multiple restaurants — or a chef that leaves to start their own thing — you may find eerily similar recipes or techniques popping up at other spots in your neighborhood.
Time theft: This is common for any kind of clock-in system, and can often happen just by accident if an employee forgets to punch out. This looks like taking unscheduled breaks, arriving late or leaving early, “buddy punching” (when a coworker punches in for you, to cover), or doing some generous rounding on time sheets.
How to prevent theft in your restaurant
The good news? You can prevent restaurant employee theft by putting safeguards and policies in place, including investing in the right kind of technology:
Pay your employees well and on time
Don’t be that boss.
One other type of theft we haven’t talked about is wage theft — when employers hold out wages, or don’t pay their workers in full — and it’s increasingly common. In fact, 34% of workers reported an increase in wage theft since 2020. Viral stories like this waitress who only received one cent for six weeks of work illustrate the gap in trust between employees and employers.
The best way to prevent theft is to make sure that your employees feel like they’re being treated fairly, and that means paying them well, on-time, and including benefits like transportation stipends, health insurance, or paid time off.
State expectations and policies up front to employees
A lot of restaurant theft isn’t actually done with malicious intent — things like comping meals, snacking, or taking breaks are rarely done in an effort to hurt the restaurant — but they do add up. Make sure when you’re training your employees that you include a session on expectations with employee policies like this, so that everyone is on the same page (and so if they do violate the rules, you’ve at least warned them once.)
Build an open, fulfilling work environment
Creating an open, accountable working environment is the biggest way to prevent employee theft. You may still have a bad actor in your midst, but if your team trusts one another, it’s much more likely that you’ll hear about it. Instead of wondering where that extra cash went, you’ll be able to address the deeper, underlying issues if someone does engage in restaurant theft (for example, it could ironically be the only way for them to put food on the table — restaurant workers are twice as likely to experience food insecurity compared to the rest of the population.)
For your part, don’t assume that your employees will automatically steal from you. The more trust and empowerment you give them, the more likely they’ll respond positively.
Use technology to your advantage
It’s a lot easier to cook the books if there isn’t an AI humming in the background, looking for fraud patterns. Installing accounting software can alert you to potential mistakes (or worse, embezzlement) while a POS system can help keep receipts, cash-outs, and payments on track.
Back-of-house, inventory management systems can check what goes in and what goes out, and there’s nothing wrong with installing an old-fashioned security camera at key points in the restaurant, like above the register, at the delivery dock, and upstairs in the offices.
If you’ve already experienced this problem, it may also be worth investing in a more rigorous background check for your employees. If someone is lying on their resume, hiding a previous conviction or employee fraud incident, or otherwise untruthful, you don’t want them serving your customers anyway.
Reduce cash on premises
One easy way to help with theft is to simply reduce the amount of cash you keep on premises by using software like Kickfin. We help keep businesses safe by minimizing cash touchpoints, increasing visibility into tip payments and tracking, and eliminating the need for managers to make bank runs late at night — keeping your employees safe from theft, too.
When diners first step into a restaurant, there’s a lot to take in: the decor, the layout, the guests and employees, the overall “vibe.”
But for 99.9 percent of restaurants, it’s the menu that really matters to your guests — and to the success of your business. Your menu doesn’t have to be fancy or even unique: Whether you’re offering quick-service burgers or fine dining at its finest, strategically planning out your menu is a critical factor when it comes to restaurant profitability.
And even if your menu was thoughtfully planned: it’s wise to constantly evaluate what you’re offering, how it’s performing, and why it belongs there. Here’s what to think about when you’re planning (or revamping) your restaurant menu.
Menu planning overview
Menu planning starts with your restaurant concept. The best menus have a sense of creativity that feels true to a restaurant’s brand, whether that’s an homage to a childhood favorite dish or a masterpiece that took months and months of tinkering with flavors to create.
Planning your menu requires three steps:
List out all of your menu items, including descriptions of each item.
Categorize your items into different areas, like appetizers, entrees, or seafood.
Set prices for each item.
Sounds easy, right? Not so much.
Why is menu planning important?
The menu planning process is actually one of the most complex you’ll go through as a restaurant business, because it combines business analysis (profit margins and cost/benefit analysis) with creativity (what inspires you) and design (what it looks like on paper or on your website). That’s a lot!
But it’s one of the most important processes your restaurant undergoes, especially if you rotate your menus with the seasons and suppliers. Menu planning, done right, evokes a feeling, harnesses your back-of-house skills and creativity, and flows together so that every diner leaves your restaurant happy and satisfied — and you turn a profit.
5 factors to consider when planning a menu
As you build out your menu, keep in mind:
Length. Your menu should probably be smaller than you think! Unless you’re the Cheesecake Factory — known for their 21-page, 250-item coffee table-sized menu — you’ll want to come up with a short list of items that truly represent the best of what your kitchen has to offer. In fact, small menus are back in style — not just for fancy bistros but for well-known spots like Applebee’s, Red Robin, and iHOP, which have all downsized their menus in the last year.
Quality. Every kitchen has strengths and weaknesses. Acknowledge where your staff is at and what they do well…and what doesn’t always hit the mark. If timing is an issue for a particular dish, cut it. If your customers complain about your breadsticks, cut them. Focus on what you do spectacularly well, and that’s what you’ll become known for.
Costs. Prices have gone up, up, up this past year for everything from kale to cardboard boxes, shrinking already slim profit margins. Do the math for each menu item and cut the ones that don’t help you break even.
Delivery. With takeout and delivery a core part of any restaurant model today, consider how each menu item handles transit time. Maybe now isn’t the time to debut too many fried or saucy items that don’t hold up well. Consider how you’ll package each item, too.
Names and descriptions. You don’t order a double cheeseburger at McDonald’s — you order a Big Mac. While you don’t have to trademark every item you make, think about common mouthwatering descriptors to use for your menu items, like crispy, crunchy, fresh, hearty, smoky, or juicy. Keep your descriptions brief and specific so customers know exactly what they’re going to get when they order it.
How to develop a more profitable restaurant menu
The secret to a more profitable menu isn’t just about the food.
It’s about psychology. The average diner spends only 109 seconds looking at your menu. That mean they’re probably not reading it like a book; they’re skimming and scanning — often distracted by fellow guests, or servers coming and going — so you’ve got a short amount of time to make an impact. Whether you’re using a physical menu or putting it all online using QR codes, the way you design and lay out the menu matters just as much as what’s on it.
Here are a few steps to follow for a more profitable menu:
As you evaluate your menu item ideas, create a grid with profitability on one axis and popularity on the other. Ideally, you want to maximize both profitability and popularity (the top right quadrant), as that’s where your big money-makers are that your customers love. Sort each item into the different quadrants, so you can identify your hits…and your duds. This is sometimes called menu engineering.
Once you can see everything on one chart, you can start to take action. Cut anything that’s low in popularity and low in profitability, and then evaluate cost-saving opportunities for anything that’s popular but not very profitable. Your customers obviously love ordering that item, but can you make an ingredient swap that won’t impact the quality, but may help your margins? For anything that’s profitable but unpopular, consider a social media promotion, asking servers to talk it up at tables, or running a discount. Maybe your customers don’t know about it — or maybe your prices are a little too high.
Think about how you’re putting your menu together to maximize your high profitability items. In vertically arranged menus, for example, the eye tends to gravitate toward the first and last items in a list, so any dishes in those spots will be big sellers. Another sweet spot? The upper right corner.
Use visual cues like boxes, graphics, or typography to highlight big-ticket items and maximize space for your layout.
As you work on your menu planning, test your menu designs and items and don’t discount customer feedback. If you have customers clamoring for a pastrami sandwich (or you’re known to have that as a “secret” item), offer it!
Similarly, if you receive negative feedback on a specific menu item after more than one service, then you know you need to revisit it. Test out different menu designs, ask your customers what they think, and have fun with it — your menu is what makes you stand out!
Optimize your restaurant operations with digital tip payments
If you’re revamping your menu, it might be a good time to revamp your tip payment process, too. Digital tip payments cut your labor costs, eliminate bank runs, and reduce the risk of theft and error — all while helping you hire (and retain) more workers. See Kickfin’s digital tip payment platform in action!
He’s done every job that exists in this industry: dishwasher, prep cook, line cook, busser, server, bartender, DJ, bouncer. But the majority of his career has revolved around restaurant management and operations.
He’s been a GM for Wolfgang Puck, and he’s also managed a $18.5 million revenue restaurant, where he oversaw a team of 13 salaried people and over 100 employees.
To say Monte is qualified to coach other restaurateurs is an understatement. And the ever-elusive, oft-forgotten concept of work-life balance is one of his favorite areas to focus on. Here’s what Monte has to say about living your life while successfully scaling your restaurant. (Yes, it’s possible.)
What’s your restaurant coaching philosophy?
It’s about mindset and habits. It takes 67 days to develop and keep new habits. But we tend to abandon behaviors before they become habits. And that’s the crux of why I started doing 90-day coaching.
The people who hire me are owners, often owner-couples. They run a restaurant, usually one to three locations. Maybe they’ve got kids. And ultimately they want to know: how do we grow our business and make sure we’re successful without having to be “in it” every day?
What does life look like for the typical restaurant owner “couple?”
Well, it’s busy. If they’ve got kids, there’s lots of daycare, after-school programs. Figuring out who’s picking up the kids and a million other logistics. Who’s handling chores and repairs and general maintenance at their house. Who’s going to be at the restaurant when.
It’s really, really tough for a married couple. They’re at the top of the line. It falls on them to share challenges with each other — they don’t want to take worries and complaints down to employees. They act like business associates, and a lot of times, they don’t know how to create a boundary between that relationship and their personal one.
"You can have success in this industry without sacrificing your whole life. You don’t have to choose."
What are the consequences of making your restaurant business the center of your universe? Of always being in “go mode”?
I had a client in LA; she and her husband had not taken a vacation in 7 years. Seven years! The wife had been in that restaurant every single day because she felt like no one cared as much as she did.
The mindset of a restaurant owner is full-throttle, full-sprint — constantly. And yes, there are times when more is required: New Year’s Eve, Mother’s Day. Sure, there are going to be longer hours.
But it doesn’t have to be that way all the time. You can have success in this industry without sacrificing your whole life. You don’t have to choose.
When a couple opens a restaurant, they usually want to create revenue streams. They want to work for themselves. And usually there’s a level of passion there. But the thing is: if you let it take over, this lifestyle will burn you out.
In our business, if you don’t figure out some kind of work-life balance, it inevitably leads to mental health issues and things like depression, divorce, drug abuse, suicide. It’s a huge risk to yourself, your family and your business if you don’t put systems in place that allow you to breathe.
What are prevailing myths or misconceptions about the restaurant business that you have to help your clients “unlearn?”
There’s a big myth about restaurants not being profitable. The average person doesn’t get into this business thinking they’ll be printing money. They come into it assuming margins will be low. But that’s wrong, and part of that problem is driven by an outdated operating model.
For example: Currently, everyone talks about your P&L and keeping your controllables between 60 to 65 percent, and your non-controllables around 10%. That’s the old model. So yeah, profitability of restaurants isn’t great when you compare it to other investment opportunities, but that’s because the P&L was set up a really long time ago.
Another big myth: You have to work 70 hours a week to be successful or to see major growth. Again, that’s no longer true.
And then there’s this myth that if you underpay people, you’ll have more profit.. That’s a big one — because you get what you pay for. Think of your people as an asset versus a liability. You get owner-operators with no experience, and they’re trying not to pay much, so they bring on unseasoned management, and it becomes a problem.
Ok. So if you’re looking for profitability and growth, but you don’t want to work 70 hours a week, where do you start?
Time management is so important. We tend to multi-task all the time, and that’s not always good. It leads to mistakes and jobs that are only halfway done.
Less multitasking, more focus. It’s little things — like if you’ve got people in a meeting, make sure they’re in the meeting. Not checking phones, working on their laptops. Everyone needs to be engaged, which ultimately saves time because things don’t have to be repeated and nothing gets missed.
Stop multitasking during business hours. Block off time to get work done before the doors open — because once that happens, your guests should be your only priority. You shouldn’t be in the office writing schedules, or holding counseling sessions, or placing your produce order — you should be fully engaged in execution on the floor.
When you’re trying to focus on a million things at once, the hospitality aspect of your business is going to suffer.
If you get the right people — people you really trust — then you give yourself a whole new level of freedom. You can work on growth and expansion. You can take care of your family. You can take a vacation.
That makes sense — but it’s also easier said than done, isn’t it? Given the fact that it’s so hard to hire and retain staff, it seems like owners have no choice but to take more on.
Everyone is talking about the worker shortage. But I haven’t had issues during Covid, and my clients haven’t had issues.
If you create a great culture, and you become the kind of boss you’d want to work for, you’ll be the employer of choice. People will gravitate toward you. And once you’ve got a few great employees — well, they say eagles fly with eagles. Tell your top employees, “I need another you,” and have them bring you more great employees. Then cut them a generous referral check if those new employees make it through their trial period.
That’s far better than signing bonuses. Instead of saying — “Hey, we’re going to pay new people, but not you,” you’re showing your current employees that you value them, and they become your ambassadors.
Or: instead of paying someone a signing bonus, pay them an extra dollar an hour instead. That’s going to take 90 days before you pay $500 extra. So if someone isn’t working out, you save money. And if they’re doing a great job, then they’re worth that extra dollar.
The idea is that if you get the right people — people you really trust — then you give yourself a whole new level of freedom. You can work on growth and expansion. You can take care of your family. You can take a vacation.
What do you tell your clients to look for when they’re hiring?
Again, you want to hire people who you can trust so that you don’t have to micromanage, you don’t have to babysit.
Talent and skillset are important. But not as important as mindset. Find an employee who really cares, who’s responsible, who is self-managing. You can teach them the skills later.
How do you hire for mindset?
I worked in a Nashville steakhouse. I had 250 applications for 25 spots. A 10 to 1 ratio. I put them in order of experience level. At the very top, the servers had around 15 years of serving experience in high-end establishments, and at the other end of the spectrum they had less experience at lower-end restaurants.
I interviewed them in that order — but the interview itself had nothing to do with experience or skillset. It was all about mindset. What was their family like? What do they like to do in their free time? It’s like a sports team: yes, you want the skillset, but you need to bring on players who can play together.
Sometimes I ended up hiring someone farther down the line just because of the interview. I hired one guy who volunteers with the blind. That’s a person who cares about people. Another server was the oldest of three kids, his mom was a single mom, he took on a lot of responsibility to provide for his family. That’s a dude you want on your team.
Another source of heartburn for owners is turnover — maybe you get the right people, but they move on. How do you combat that?
Restaurateurs tend to not proactively search for people, and that’s a mistake. Two servers give notice, suddenly you’re scrambling. You hire the first person who walks in.
I encourage my clients to always accept applications. Always be hiring. Are there applicants who can raise the bar? Are there toxic employees you can remove? And are there super employees who you can help advance in their career?
So what’s the big takeaway for restaurant folks who feel like they are drowning?
You don’t have to do it all to be profitable, or even to experience significant growth. You just need the right foundation and a team you can trust. Getting all of those pieces in place is an investment on the front end for sure, but it’s the key to work-life balance in this industry.
Want to learn more about optimizing your systems, product and people to achieve work/life balance in the restaurant industry? Contact Monte to learn more about his service offerings at hashtagrestaurateur@gmail.com
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