WEBVTT - Great Food, Training Fuel Restaurant Success

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<v Speaker 1>Welcome to Chopping It Up Episode eleven. I'm your host,

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<v Speaker 1>Mike Hallen. I'm the senior restaurant and food service analyst

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<v Speaker 1>here at Bloomberg Intelligence, and it's my pleasure to introduce

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<v Speaker 1>today's guests. Marvin Albali, CEO of Franchise Global Brands and

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<v Speaker 1>author of Restaurant Excellence, the Ultimate Guide to Success in

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<v Speaker 1>the Food and Beverage industry. Thanks for doing this, Marvin,

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<v Speaker 1>Thank you. Thanks for inviting me to the show. You

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<v Speaker 1>got it so You've had a unique career path. Can

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<v Speaker 1>you share a little bit about your journey in the

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<v Speaker 1>restaurant industry? Sure? So I started my career. The first

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<v Speaker 1>thing I started with was that I pursued education and

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<v Speaker 1>hotel and cattering management. I studied that for four years,

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<v Speaker 1>and after graduation, I took my first job with Chiles

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<v Speaker 1>as an assistant manager. Made all my way up to

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<v Speaker 1>a training manager and I was awarded the Operator of

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<v Speaker 1>the Year by Bricker International. The same franchise Z that

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<v Speaker 1>operated Chile's was also the master franchise of Food Ruckers.

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<v Speaker 1>So I was promoted to an operations consultant and supported

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<v Speaker 1>twenty twenty two restaurants for about four years. And then

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<v Speaker 1>one of the another franchise Z approached me. He was

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<v Speaker 1>a franchise of six restaurants food Ruckers Restaurants and approached

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<v Speaker 1>me to become a company director. He wanted to grow

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<v Speaker 1>his company, so I joined the franchise Z and I

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<v Speaker 1>opened Carribook Coffee, Marble Slab Creamery, and the Great American

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<v Speaker 1>Cookie and two more food Ruckers. In total, we grew

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<v Speaker 1>from twelve restaurants to twenty two. It was an incredible experience.

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<v Speaker 1>I was only twenty two years old and I had

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<v Speaker 1>to learn everything from designed to site selection all the

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<v Speaker 1>way to opening. After that, I joined Applebee's, the largest

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<v Speaker 1>car will dining chain in the world, as a company

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<v Speaker 1>director for one of the franchise franchise Ease. And then

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<v Speaker 1>I had a great opportunity to support sixty six restaurants

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<v Speaker 1>Burger King Restaurants in North America, and so I joined

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<v Speaker 1>the corporate office of Burger King in Miami and supported

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<v Speaker 1>sixty six restaurant in British Columbia and Alberta in Canada.

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<v Speaker 1>It was my only fast food experience QUSR experience, but

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<v Speaker 1>it was amazing. And then I joined one of the

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<v Speaker 1>most iconic restaurant companies in North America and one of

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<v Speaker 1>the oldest actually, it's called White Spot out of Vancouver,

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<v Speaker 1>about one hundred and fifty restaurants in total. They have

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<v Speaker 1>two categories. They have a fast casual brand called Triples

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<v Speaker 1>and they have sit down restaurant family dining called White Spot.

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<v Speaker 1>A fantastic company, they won Best Managed Companies for about

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<v Speaker 1>seven years in a row an amazing culture. I just

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<v Speaker 1>fell in love with that company. But then a huge

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<v Speaker 1>opportunity came my way through a recruiter to move to

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<v Speaker 1>Dubai and lead four hundred and forty five restaurants for

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<v Speaker 1>the Innercinental Hotel group. The Intercinal Hotel Group also operate

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<v Speaker 1>Indigo Hotel, Indigo Regent on the luxury side Crown Plaza

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<v Speaker 1>on Holiday Inn. So I couldn't refuse that opportunity, so

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<v Speaker 1>I moved with my family to Dubai and worked for

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<v Speaker 1>the Intercinal Group for five years. During that time, Mike,

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<v Speaker 1>they also gave me the opportunity to lead Europe in

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<v Speaker 1>Japan as well, so in total I ended up managing

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<v Speaker 1>seven hundred and seventy six restaurants and a year ago.

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<v Speaker 1>About a year ago, I joined Franchise Global brands. I'm

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<v Speaker 1>one of the shareholders, and we've been doing consulting, franchising,

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<v Speaker 1>creating concepts, improving performance for several restaurants, Boston Market, the

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<v Speaker 1>Great Harvest Bread Company, for Mosso, we consulted for a

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<v Speaker 1>Wingstop at one point, and several other restaurants in the region.

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<v Speaker 1>So that's it and a nutshell. Yeah, very cool, and

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<v Speaker 1>not many people that I know, excuse me, in the

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<v Speaker 1>industry that have experienced from QASR to fast casual casual

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<v Speaker 1>dining all the way up to find dining, which which

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<v Speaker 1>is very cool. So can you talk a little bit

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<v Speaker 1>about what motivated you to write your book? Yeah, So,

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<v Speaker 1>as you said, one of the reasons actually was, you know,

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<v Speaker 1>I look back at my career and I see that

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<v Speaker 1>I worked both for the hotel business, the luxury side,

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<v Speaker 1>where you learn finesse, culinary innovation, design, luxury, and then

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<v Speaker 1>from the franchise world I learned marketing, consistency, financial discipline.

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<v Speaker 1>So one of the one of the reasons I wanted

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<v Speaker 1>to write a book, I said, you know, I have

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<v Speaker 1>really great exposure and I want to share that experience

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<v Speaker 1>with people. And the other reason, and the more important

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<v Speaker 1>reason is, as you know, the restaurant business has one

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<v Speaker 1>of the highest failure rate in the world, and it's

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<v Speaker 1>sad to see people invest all their life savings in

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<v Speaker 1>opening a restaurant for it to fail after two to

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<v Speaker 1>three years. And I really wanted to help. So I thought,

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<v Speaker 1>maybe if I write a book that will help people

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<v Speaker 1>in every aspect of the business, we can avoid all

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<v Speaker 1>that business failure that happens with new restaurant owners. As

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<v Speaker 1>you know, in the industry, if you look in the

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<v Speaker 1>industry to if you search for books about the restaurant business,

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<v Speaker 1>you can find a book on culinary on recipes, you

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<v Speaker 1>can find a book on marketing, but you really don't

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<v Speaker 1>find a book that covers every aspect of the business.

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<v Speaker 1>And that's exactly what I've done. Yeah, the book is great.

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<v Speaker 1>I think all our listeners should go out and grab it.

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<v Speaker 1>I really appreciate the level of detail in the book,

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<v Speaker 1>you know, especially for a guy like me. You know,

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<v Speaker 1>I mentioned to you before, I have a little bit

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<v Speaker 1>of experience as a short order cook, a little bit

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<v Speaker 1>of experience making sandwiches and working the cash register out

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<v Speaker 1>of Delhi, but that's it. So it definitely opened a

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<v Speaker 1>nice window for me into into how a restaurant should

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<v Speaker 1>be run. So I really appreciate it, and I was

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<v Speaker 1>really impressed by the amount of input you received before publishing.

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<v Speaker 1>Can you talk a little bit about that process. Yeah, sure,

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<v Speaker 1>So you know, I really raised the bar so high

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<v Speaker 1>that it took me three and a half years to

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<v Speaker 1>complete this book. So after I wrote it, I sent

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<v Speaker 1>each chapter to three or four top professionals in the

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<v Speaker 1>world from that subject. So let's talk about the kitchen

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<v Speaker 1>management for example, the kitchen manage and chapter nine, which

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<v Speaker 1>talks about recipes improvement. Both chapters were reviewed by actually

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<v Speaker 1>nine chefs. Some of the chefs were trained by the

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<v Speaker 1>best in the world. So some of the chefs that

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<v Speaker 1>shared their input and feedback and added value to the

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<v Speaker 1>book were trained by Gordon Ramsey, Jason Atherton, Pierre Ganying,

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<v Speaker 1>and Paul Bukuz. The same thing I've done with the

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<v Speaker 1>design chapter. Brian Tappan the former former designer of the

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<v Speaker 1>Cheesecake Factory and designed several Apple these restaurants and currently

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<v Speaker 1>works with a company that has six hundred restaurants and

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<v Speaker 1>being a Pollack who designed more than thirty five American brands,

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<v Speaker 1>restaurant brands and two so really that's the methodology that

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<v Speaker 1>I took for each chapter, and there's a ton of

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<v Speaker 1>value out of that for sure. Early on in the book,

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<v Speaker 1>he posted a picture of a viral linked in tweet

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<v Speaker 1>that you had. Basically it said, most people think they

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<v Speaker 1>know the restaurant business because they eat out a lot,

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<v Speaker 1>and that really resonated with me. I feel like a

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<v Speaker 1>lot of restaurant stock investors think they know restaurants because

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<v Speaker 1>they eat out a lot, So I definitely connected with that.

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<v Speaker 1>What are the biggest pitfalls for entrepreneurs that are taking

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<v Speaker 1>their first stab at owning and operating a restaurant. That's

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<v Speaker 1>a great question, and there are several answers to that,

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<v Speaker 1>But what I for the past twenty five years of experience,

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<v Speaker 1>what I see is the following. So new restaurant owners

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<v Speaker 1>typically in the beginning are very much focused on service,

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<v Speaker 1>food quality, atmosphere, on the top fundamentals, team training. But

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<v Speaker 1>after about a year they lose focus and the focus

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<v Speaker 1>turns on marketing, revenue, cost management, and administration work a

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<v Speaker 1>lot of computer work. And when that happens, when you

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<v Speaker 1>lose focus on what matters to the guest, you start

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<v Speaker 1>losing guests. So that's one aspect the other aspect. Some

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<v Speaker 1>of them get really excited and open another store, but

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<v Speaker 1>the second store is not even near, it's very far

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<v Speaker 1>from the first store, So then they dilute all their

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<v Speaker 1>effort and then they spend a lot of time between

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<v Speaker 1>the first store and the second store, and then lose

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<v Speaker 1>focus as well. So if you want to expand, I

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<v Speaker 1>would say expand carefully and don't go too far where

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<v Speaker 1>you require a lot of traveling time, which is a

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<v Speaker 1>time lost on the road. Other operators I see the

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<v Speaker 1>ones that fail fast and fortunately are the ones who

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<v Speaker 1>are running restaurants by calculators. So they're obsessed with cost management.

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<v Speaker 1>They're obsessed with profitability, and it doesn't work that way

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<v Speaker 1>in the restaurant business. And the restaurant business you have

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<v Speaker 1>to serve quality, deliver quality, quality of experience, and quality

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<v Speaker 1>of food. Once you impress your guest and earned their trust,

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<v Speaker 1>then you'll be successful. Very cool. So for those listening

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<v Speaker 1>in that haven't read the book, Marvin equates restaurants success

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<v Speaker 1>with levels of a pyramid, and exceptional food quality is

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<v Speaker 1>at the base. So can you speak to the importance

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<v Speaker 1>of consistency, crevability, and signature dishes at a restaurant, right,

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<v Speaker 1>these are three different elements, so consistency. The reason I

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<v Speaker 1>put consistency there. I remember watching a Netflix show for

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<v Speaker 1>Anthony Bourdaine. It was called The Last Magnificent, was about

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<v Speaker 1>a chef called Jeremiah Tower, and he said a phrase

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<v Speaker 1>in that show. What he said, the beast the religion

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<v Speaker 1>of any restaurant is consistency, and it resonated with me

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<v Speaker 1>a lot. Now, I don't see a problem in consistency

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<v Speaker 1>in the franchise world, but I see a huge problem

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<v Speaker 1>in Alans with independent restaurants and hotels. So that's why

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<v Speaker 1>in the book there's about five to six pages explaining

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<v Speaker 1>in details, how do you achieve consistency because, Mike, you know,

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<v Speaker 1>as they say, consumers trust or the lack of it,

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<v Speaker 1>comes from consistency. That's one aspect. The other aspect, which

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<v Speaker 1>you mentioned, craveability, and where in the book I talk

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<v Speaker 1>about having at least two appetizers, two main course items,

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<v Speaker 1>two desserts where people would crave. Because if people don't

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<v Speaker 1>crave your food, it's gonna be you're gonna have a

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<v Speaker 1>hard time with repeat visits or with creating loyalty. Think

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<v Speaker 1>of cinnamon, A lot of people say, oh, you know,

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<v Speaker 1>I'm craving I would like to have a cinnamon roll.

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<v Speaker 1>Think of Krispy Kreen when they first started and they

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<v Speaker 1>were extremely popular. Shake Jack as well. So you all

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<v Speaker 1>hear that, you know, I missed that burger, I missed

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<v Speaker 1>that donuts. I would love to have a cinema role.

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<v Speaker 1>If your customers are not saying those words, if you're

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<v Speaker 1>not hitting those phrases, you have a problem in the

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<v Speaker 1>R and D department. And the last part signature dishes

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<v Speaker 1>and very simple. If you know you cannot succeed by

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<v Speaker 1>fitting in, you can only succeed by standing out. And

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<v Speaker 1>if you don't have signature dishes, which goes hand in

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<v Speaker 1>hand with cravability, and you don't have unique items, then

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<v Speaker 1>if you have a Caesar salad like everyone else, if

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<v Speaker 1>you have a burger like everyone else, I wonder how

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<v Speaker 1>do you create a following? I wonder how your marketing

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<v Speaker 1>department will be able to market your brand. So I

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<v Speaker 1>think your cheft, your R and D department need to

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<v Speaker 1>come up with few items with specific marinade, a special way,

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<v Speaker 1>special sauce, special cooking procedure that no one can match

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<v Speaker 1>in your city. I think that's really important. Yeah, for sure.

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<v Speaker 1>And getting back to cinnabon man, I think the best

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<v Speaker 1>marketing ever is just the smell of a cinnabon right.

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<v Speaker 1>You can smell it if I feel like, from halfway

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<v Speaker 1>across the mall, and it smells fantastic. Definitely something that

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<v Speaker 1>creates creavability. Superior service in hospital hospitality obviously are crucial

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<v Speaker 1>next level of the pyramid for you in the book,

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<v Speaker 1>Hiring well and the importance of menu knowledge. Those are

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<v Speaker 1>two things that you mentioned in the chapter that really

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<v Speaker 1>stood out to me. Yeah. You know a lot of

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<v Speaker 1>people talk about challenges with hiring the right people and

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<v Speaker 1>they say, you know, we're not competitive enough from a

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<v Speaker 1>salary standpoint to hire the best people. I slightly disagree

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<v Speaker 1>because in my career I did hire people that minimum

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<v Speaker 1>wage who are brilliant. So what I coach about in

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<v Speaker 1>the book, especially for front of the house service employees,

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<v Speaker 1>you really need to look for personalities. So when I

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<v Speaker 1>do my interviews, I'm looking at the smile, the attitude,

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<v Speaker 1>the positive vibes, the teamwork attitude. I'm not so much

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<v Speaker 1>obsessed with the skill, because I can teach you how

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<v Speaker 1>to open a bottle of wine, I can teach you

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<v Speaker 1>how to serve food. I can teach you how to

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<v Speaker 1>prebus a table. That's not really difficult, but if you

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<v Speaker 1>have the wrong attitude, it will be very difficult to

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<v Speaker 1>change that. So if the hiring and recruitment is based

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<v Speaker 1>on that, you'll have an amazing team, very positive that

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<v Speaker 1>you know, people that help each other, very friendly, and

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<v Speaker 1>you'll do well in that department. On menu knowledge, I

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<v Speaker 1>talk a lot about it in the book for two reasons.

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<v Speaker 1>First of all, there is a food safety aspect and

0:14:49.400 --> 0:14:53.760
<v Speaker 1>there is customers health aspect. About three to four months ago,

0:14:54.800 --> 0:14:58.480
<v Speaker 1>there was a guest in Mexico, a British customer in

0:14:58.560 --> 0:15:04.640
<v Speaker 1>Mexico who's got allergy from sesame. Order the salad and

0:15:04.880 --> 0:15:08.400
<v Speaker 1>ask the food servers if they're sesame in the in

0:15:08.440 --> 0:15:11.880
<v Speaker 1>the salad and they said no. Obviously they didn't know,

0:15:12.240 --> 0:15:15.640
<v Speaker 1>but there was sesame in it. The customer ordered the salad,

0:15:15.680 --> 0:15:19.400
<v Speaker 1>had the salad, and unfortunately, Mike, the customer passed away.

0:15:19.840 --> 0:15:24.520
<v Speaker 1>Oh wow, the allergy was so strong. So when I

0:15:24.680 --> 0:15:30.400
<v Speaker 1>coach and train restaurants in the region and internationally, I

0:15:30.560 --> 0:15:35.360
<v Speaker 1>tell them nine many knowledge doesn't work, and that's one

0:15:35.400 --> 0:15:38.960
<v Speaker 1>of the reasons. Now someone might say you're exaggerating. You know,

0:15:39.080 --> 0:15:43.040
<v Speaker 1>no food server will know well. The other aspect, we

0:15:43.080 --> 0:15:45.720
<v Speaker 1>know that confident food servers sell well. If you want

0:15:45.720 --> 0:15:49.080
<v Speaker 1>to do an up selling program, suggests a selling program

0:15:49.160 --> 0:15:51.160
<v Speaker 1>without great many knowledge, you will not be able to

0:15:51.160 --> 0:15:54.720
<v Speaker 1>achieve it. Someone might say, listening to this podcast, I

0:15:54.800 --> 0:15:57.720
<v Speaker 1>know all of that. Yes, many restaurant owners know that,

0:15:58.320 --> 0:16:02.280
<v Speaker 1>but very few of them do whiz is or tests

0:16:02.400 --> 0:16:05.640
<v Speaker 1>or training on daily basis, so they end up going

0:16:05.720 --> 0:16:09.000
<v Speaker 1>nowhere with them. It's really really crucial from a sales

0:16:09.000 --> 0:16:12.720
<v Speaker 1>standpoint and from a customer satisfaction standpoint. Yeah. And speaking

0:16:12.760 --> 0:16:16.840
<v Speaker 1>of training, I mean it's really been It's really woven

0:16:16.960 --> 0:16:21.640
<v Speaker 1>throughout your book. I was. I was almost surprised a

0:16:21.640 --> 0:16:25.800
<v Speaker 1>little bit. I probably shouldn't have been. But how much

0:16:25.840 --> 0:16:29.280
<v Speaker 1>you talk about training throughout the book, and how much

0:16:29.280 --> 0:16:34.480
<v Speaker 1>you recommend restaurant tours train their employees. I mean, whether

0:16:34.520 --> 0:16:40.040
<v Speaker 1>it's daily, monthly, who you recommend does the training? Can

0:16:40.120 --> 0:16:42.600
<v Speaker 1>you can you talk a bit about your process and

0:16:42.920 --> 0:16:46.680
<v Speaker 1>how you recommend restaurant Sure, Mike, I talk about the

0:16:46.680 --> 0:16:50.920
<v Speaker 1>training a lot, because from my experience, the best operator

0:16:51.040 --> 0:16:54.320
<v Speaker 1>in the world trained well. And I'll give you last

0:16:54.400 --> 0:16:58.320
<v Speaker 1>year I was in New York with my family went

0:16:58.360 --> 0:17:01.960
<v Speaker 1>to Danny Myers restaurant Grammars Tavern, and I was impressed.

0:17:02.000 --> 0:17:05.399
<v Speaker 1>I was wowed with the food server training. Actually, on

0:17:05.520 --> 0:17:08.480
<v Speaker 1>that day two food servers came to the table because

0:17:08.480 --> 0:17:12.520
<v Speaker 1>one of them was shadowing a trainer. And we here

0:17:12.560 --> 0:17:15.439
<v Speaker 1>in Dubai we have Zooma. You're familiar with Zuma, it's

0:17:15.480 --> 0:17:20.920
<v Speaker 1>a big brand globally and another brand called Lepetite, Mizone

0:17:20.960 --> 0:17:24.439
<v Speaker 1>and or Fally Brothers. The training is incredible and they

0:17:24.480 --> 0:17:27.320
<v Speaker 1>have high volumes. They're always fully booked, so there's a

0:17:27.359 --> 0:17:33.840
<v Speaker 1>direct correlation between training and success. The problem is with

0:17:34.320 --> 0:17:37.439
<v Speaker 1>many restaurants that they get busy or because they have

0:17:37.880 --> 0:17:41.040
<v Speaker 1>hourly employees, they don't believe in training or high turnover,

0:17:41.119 --> 0:17:43.480
<v Speaker 1>saying Inston, I have a high turnover. By the time

0:17:43.520 --> 0:17:46.840
<v Speaker 1>I train an employee, they leave, But there's no way out.

0:17:46.960 --> 0:17:49.320
<v Speaker 1>You're going to train them because the other option is

0:17:49.400 --> 0:17:52.960
<v Speaker 1>having untrained employees serving your people or cooking your food.

0:17:54.000 --> 0:17:57.080
<v Speaker 1>So I offered two solutions in the book, Mike. One

0:17:57.119 --> 0:18:02.480
<v Speaker 1>of them is really easy with the daily shift briefing.

0:18:02.560 --> 0:18:05.040
<v Speaker 1>Pre shift briefing, you have at least ten minutes for

0:18:05.119 --> 0:18:07.280
<v Speaker 1>the front of the house and ten minutes for back

0:18:07.320 --> 0:18:10.679
<v Speaker 1>of the House. So what I would do and what

0:18:10.800 --> 0:18:13.399
<v Speaker 1>I put in the book, just take a menu item

0:18:14.000 --> 0:18:16.680
<v Speaker 1>and describe it well with the food servers, ask about

0:18:16.720 --> 0:18:20.000
<v Speaker 1>the ingredients, ask how do you upsell it? And share

0:18:20.040 --> 0:18:22.400
<v Speaker 1>one training tip. I'll share one with you right now.

0:18:22.960 --> 0:18:27.480
<v Speaker 1>If there's a customer complaint, what I teach is don't justify.

0:18:27.720 --> 0:18:31.600
<v Speaker 1>Always rectify. So someone says my fries are cold, don't

0:18:31.640 --> 0:18:33.960
<v Speaker 1>say I just brought them from the kitchen. Just say

0:18:34.000 --> 0:18:37.000
<v Speaker 1>I'm sorry. I'm gonna bring you a fresh portion of fries.

0:18:37.400 --> 0:18:40.000
<v Speaker 1>So this is a training tip, So think about it.

0:18:40.560 --> 0:18:45.720
<v Speaker 1>In ninety days you would have taught ninety tips. You

0:18:45.800 --> 0:18:51.000
<v Speaker 1>will notice that the team's skills have improved significantly because

0:18:51.040 --> 0:18:54.000
<v Speaker 1>you're training every day a new thing. And if you

0:18:54.240 --> 0:18:58.199
<v Speaker 1>use the service chapter, the service chapter was designed in

0:18:58.240 --> 0:19:01.119
<v Speaker 1>a way where you can use it from each section

0:19:01.200 --> 0:19:04.920
<v Speaker 1>of the book of that chapter. So that's one aspect

0:19:05.240 --> 0:19:06.960
<v Speaker 1>for Back of the House is the same way, or

0:19:06.960 --> 0:19:08.919
<v Speaker 1>I'd like to call them Heart of the house. The

0:19:09.040 --> 0:19:12.560
<v Speaker 1>same way you take your recipe. So imagine this, Mike,

0:19:12.720 --> 0:19:18.120
<v Speaker 1>You've got a grilled cook, salad salad cook, an expeditor,

0:19:18.320 --> 0:19:21.480
<v Speaker 1>a fried cook, and you're talking about an item from

0:19:21.520 --> 0:19:24.840
<v Speaker 1>the growth station. When you're talking about an item from

0:19:24.840 --> 0:19:28.840
<v Speaker 1>a growth station, you're indirectly cross training the salad employee

0:19:29.240 --> 0:19:34.280
<v Speaker 1>and the frye employee. So that's the beauty about training

0:19:34.280 --> 0:19:36.960
<v Speaker 1>every day during appreciative briefing and the other The other

0:19:37.000 --> 0:19:41.159
<v Speaker 1>solution is at least once a month classroom training but

0:19:41.400 --> 0:19:44.919
<v Speaker 1>not lectures is full of role play, role play and

0:19:45.040 --> 0:19:48.320
<v Speaker 1>role play because that what makes the real behavior, and

0:19:48.560 --> 0:19:51.040
<v Speaker 1>that's where you see the mistakes and you can correct

0:19:51.080 --> 0:19:54.120
<v Speaker 1>the team and coach them. So these are a very

0:19:54.240 --> 0:19:57.199
<v Speaker 1>very brief way some of the things I mentioned in

0:19:57.240 --> 0:20:00.880
<v Speaker 1>the book about training, I thought that was I think

0:20:00.880 --> 0:20:03.880
<v Speaker 1>you mentioned too that the gms and the assistant gms

0:20:03.880 --> 0:20:07.760
<v Speaker 1>aren't doing all the training correct. Yeah. So when I

0:20:07.800 --> 0:20:11.880
<v Speaker 1>worked for Chili's and Applebee's, we had food server trainers,

0:20:12.320 --> 0:20:17.000
<v Speaker 1>we had hostess trainers, we had a grill station trainer,

0:20:17.160 --> 0:20:20.280
<v Speaker 1>a prep trainer. So these are our employees that run

0:20:20.520 --> 0:20:23.600
<v Speaker 1>a regular shift, but they were trained on how to

0:20:23.640 --> 0:20:27.440
<v Speaker 1>train others. And when we have a new employee, they'll

0:20:27.520 --> 0:20:31.280
<v Speaker 1>learn the best behaviors, the best standards from those guys.

0:20:31.640 --> 0:20:33.920
<v Speaker 1>So we just don't put you with a senior employee,

0:20:33.920 --> 0:20:36.520
<v Speaker 1>because sometimes you might have a senior employee who's got

0:20:36.520 --> 0:20:39.640
<v Speaker 1>a lot of bad habits, so you create a problem

0:20:39.640 --> 0:20:41.960
<v Speaker 1>for yourself. Yeah, and i'd imagine it creates a good

0:20:41.960 --> 0:20:46.160
<v Speaker 1>pipeline for potential managers down the road. Right, Absolutely, Sorry,

0:20:46.160 --> 0:20:49.359
<v Speaker 1>I forgot to mention that. So those trainers that you

0:20:49.400 --> 0:20:53.040
<v Speaker 1>were training at least once a month become the backbone

0:20:53.040 --> 0:20:56.720
<v Speaker 1>of the operation and become part of your succession planning.

0:20:57.320 --> 0:21:01.920
<v Speaker 1>And actually one key point here, Mike, become the protector

0:21:02.160 --> 0:21:05.800
<v Speaker 1>of high standards at your restaurants. When they see something wrong,

0:21:05.840 --> 0:21:07.800
<v Speaker 1>they stop it. When they see a short cut, they

0:21:07.840 --> 0:21:11.440
<v Speaker 1>stop it because they're the ones who are leading high standards.

0:21:11.560 --> 0:21:15.560
<v Speaker 1>I like it. In your experience, is there pushback from

0:21:15.600 --> 0:21:19.439
<v Speaker 1>employees about that much training? How are you and how

0:21:19.480 --> 0:21:22.360
<v Speaker 1>are your gms taught to lead and motivate your hourly workers.

0:21:23.119 --> 0:21:26.640
<v Speaker 1>I have never experienced or faced and employee who doesn't

0:21:26.680 --> 0:21:29.840
<v Speaker 1>want to learn. Be it. Nowadays there's a lot of

0:21:29.920 --> 0:21:34.199
<v Speaker 1>online learning. It's all on a cell phone, gamifications and

0:21:34.280 --> 0:21:37.439
<v Speaker 1>quizzes and all of that. I've never experienced someone saying no,

0:21:37.480 --> 0:21:40.600
<v Speaker 1>I don't want to learn. But I've seen managers who

0:21:40.600 --> 0:21:43.680
<v Speaker 1>were too busy to follow up with the trainers to

0:21:43.720 --> 0:21:48.000
<v Speaker 1>ask about employees and see what they've learned. And that's

0:21:48.080 --> 0:21:52.960
<v Speaker 1>counterproductive productive, to be honest, Cole, and I appreciate your

0:21:53.040 --> 0:21:57.360
<v Speaker 1>willingness to seek suggestions for operational improvements from your teams,

0:21:58.160 --> 0:22:00.760
<v Speaker 1>and it seems like you did it on a regular basis,

0:22:00.800 --> 0:22:03.960
<v Speaker 1>and I'm sure the employees appreciate that as well. Do

0:22:04.000 --> 0:22:07.760
<v Speaker 1>you have examples that were especially successful, maybe something that

0:22:08.359 --> 0:22:12.920
<v Speaker 1>you recommend everyone thinking, thinking, everyone think about doing. Yeah,

0:22:12.960 --> 0:22:18.120
<v Speaker 1>so one of the that's a great question, Mike. At

0:22:18.119 --> 0:22:20.880
<v Speaker 1>one point in my career, I was managing a restaurant

0:22:20.920 --> 0:22:24.760
<v Speaker 1>company of twenty two stores, and I came up with

0:22:24.760 --> 0:22:28.360
<v Speaker 1>an idea of I want to I heard at one

0:22:28.359 --> 0:22:31.400
<v Speaker 1>point that the big Mac came either from a franchise

0:22:31.480 --> 0:22:35.119
<v Speaker 1>z or from an employee, and it became the number

0:22:35.160 --> 0:22:38.680
<v Speaker 1>one sandwich for McDonald's worldwide. So I said, I want

0:22:38.680 --> 0:22:43.240
<v Speaker 1>to ask the employees, even the dishwashers, about what could

0:22:43.280 --> 0:22:45.440
<v Speaker 1>we do better? So what I would do every quarter,

0:22:45.640 --> 0:22:50.200
<v Speaker 1>sometimes every month, I would ask for questions to every employee.

0:22:51.440 --> 0:22:56.880
<v Speaker 1>What are the top your top ideas to drive sales?

0:22:57.800 --> 0:23:02.800
<v Speaker 1>What are your top suggestions to reduce cost? What are

0:23:02.840 --> 0:23:06.720
<v Speaker 1>your top three challenges at work and any other concerns

0:23:06.760 --> 0:23:10.320
<v Speaker 1>or suggestions. So I remember doing that, and at one

0:23:10.320 --> 0:23:14.159
<v Speaker 1>point we had an employee who noticed that we have

0:23:14.320 --> 0:23:17.600
<v Speaker 1>no curtains in all of our walking coolers and freezers.

0:23:18.280 --> 0:23:20.280
<v Speaker 1>And you know, I always knew that when you work

0:23:20.359 --> 0:23:23.000
<v Speaker 1>in a place for a long time, your eyes get

0:23:23.080 --> 0:23:25.679
<v Speaker 1>used to it. So I was like, that's a great idea.

0:23:26.000 --> 0:23:28.639
<v Speaker 1>So we bought the curtains. We put them everywhere, and

0:23:28.680 --> 0:23:33.119
<v Speaker 1>here's what we achieved, less insects going to the walking cooler,

0:23:34.320 --> 0:23:40.480
<v Speaker 1>better temperature of food, so less spoilage, and the compressors

0:23:40.520 --> 0:23:43.600
<v Speaker 1>of the walking cooler and freezer would work less, which

0:23:43.640 --> 0:23:48.920
<v Speaker 1>means less electricity cost. So we took John, took his picture,

0:23:49.680 --> 0:23:53.399
<v Speaker 1>gave one hundred dollars reward, and circulated his image this

0:23:53.560 --> 0:23:57.000
<v Speaker 1>photo throughout the company. Then next month, when we did

0:23:57.000 --> 0:24:01.119
<v Speaker 1>the same exercise, guess what, we received a ton of

0:24:01.240 --> 0:24:06.440
<v Speaker 1>suggestions and ideas. And that point that was a turning point, Mike,

0:24:06.520 --> 0:24:12.159
<v Speaker 1>because I was no longer leading alone. I started leading

0:24:12.280 --> 0:24:15.960
<v Speaker 1>with everyone and everyone who was putting their ideas. So

0:24:16.480 --> 0:24:19.720
<v Speaker 1>you changed the game completely. So that's one of the

0:24:19.760 --> 0:24:22.040
<v Speaker 1>best things that I ever happened in my career. Actually,

0:24:24.280 --> 0:24:28.600
<v Speaker 1>very cool um. In the book, you also advocate advocate

0:24:28.680 --> 0:24:32.640
<v Speaker 1>for monthly bonuses. So, um, you know, I'd imagine there's

0:24:32.680 --> 0:24:35.719
<v Speaker 1>some benefit there because it's it's a high turnover business, right,

0:24:35.720 --> 0:24:39.520
<v Speaker 1>so people are motivated to actually see that bonus money.

0:24:40.160 --> 0:24:43.280
<v Speaker 1>But are there any other benefits to monthly bonuses that

0:24:43.320 --> 0:24:45.359
<v Speaker 1>you like to speak of. Yeah, so I don't believe

0:24:45.400 --> 0:24:48.120
<v Speaker 1>in any in an annual bonus or quarterly bonus. So

0:24:48.240 --> 0:24:53.600
<v Speaker 1>the way I structured the bonus at my company was

0:24:53.640 --> 0:24:56.240
<v Speaker 1>on monthly basis. And this is how it worked. So

0:24:56.440 --> 0:24:59.040
<v Speaker 1>if you were a restaurant manager that worked for me, Mike,

0:24:59.320 --> 0:25:02.600
<v Speaker 1>you would res one third of your bonus if you

0:25:02.720 --> 0:25:07.000
<v Speaker 1>achieved the sales target for the month, and two thirds

0:25:07.080 --> 0:25:10.920
<v Speaker 1>if you achieve the profit target, an additional one third

0:25:11.280 --> 0:25:15.399
<v Speaker 1>if you achieve the guest satisfaction target. And the reason

0:25:15.560 --> 0:25:18.400
<v Speaker 1>I had those three because if I say only profit,

0:25:18.720 --> 0:25:24.160
<v Speaker 1>you can cost and kill guest satisfaction and get your bonus.

0:25:24.200 --> 0:25:26.360
<v Speaker 1>And I didn't want that to happen. So the way

0:25:26.359 --> 0:25:28.480
<v Speaker 1>we did it, at the end of every month, when

0:25:28.480 --> 0:25:31.119
<v Speaker 1>the P and L came out, you would come to

0:25:31.200 --> 0:25:34.840
<v Speaker 1>my office. The finance manager will come to my office,

0:25:34.880 --> 0:25:38.000
<v Speaker 1>and as a restaurant manager, you had to take me

0:25:38.080 --> 0:25:42.200
<v Speaker 1>through your expenses and how are they going up or

0:25:42.240 --> 0:25:44.520
<v Speaker 1>down from last month. You have to show me your

0:25:44.560 --> 0:25:50.240
<v Speaker 1>guest satisfaction scores either on Google on open Table. Also

0:25:50.760 --> 0:25:55.520
<v Speaker 1>whatever in house program we had, like in Pathrica. And

0:25:56.040 --> 0:25:59.000
<v Speaker 1>of course the sales targets when I used and I

0:25:59.119 --> 0:26:02.280
<v Speaker 1>used to issue the check right there and then if

0:26:02.320 --> 0:26:04.880
<v Speaker 1>you achieve the three even if you achieved only one

0:26:04.920 --> 0:26:11.600
<v Speaker 1>portion the sales, and it changed everything, Mike, because people knew, oh,

0:26:11.680 --> 0:26:13.440
<v Speaker 1>in thirty days, I'm going to get my bonus. I'm

0:26:13.440 --> 0:26:15.639
<v Speaker 1>gonna work hard for it. I know how to achieve,

0:26:15.800 --> 0:26:17.680
<v Speaker 1>and I'm going to make sure I don't have repair

0:26:17.720 --> 0:26:20.840
<v Speaker 1>and manance issue, I don't have waste issues, because I

0:26:20.840 --> 0:26:22.920
<v Speaker 1>don't want my food costs to go up, which will

0:26:23.000 --> 0:26:27.440
<v Speaker 1>kill my profit. So I turned the restaurant managers into entrepreneurs,

0:26:27.760 --> 0:26:31.800
<v Speaker 1>into business managers, not just employees. And I recommend this

0:26:31.880 --> 0:26:36.960
<v Speaker 1>bonus plan to every single company on Earth because nobody

0:26:37.000 --> 0:26:40.400
<v Speaker 1>wants to wait a whole year to get a bonus. Yeah,

0:26:40.480 --> 0:26:42.919
<v Speaker 1>that's great, And you know, and in the restaurant business,

0:26:42.920 --> 0:26:45.760
<v Speaker 1>there's a lot of examples that you know, if you

0:26:45.840 --> 0:26:50.600
<v Speaker 1>get the culture right and you hire hard working entrepreneurial people,

0:26:50.600 --> 0:26:53.280
<v Speaker 1>and you have that entrepreneurial type structure. You know, think

0:26:53.600 --> 0:26:57.200
<v Speaker 1>outback Steakhouse back in the day and places like Texas

0:26:57.280 --> 0:27:01.240
<v Speaker 1>Roadhouse right now, those places humming man, you know. And

0:27:01.320 --> 0:27:06.280
<v Speaker 1>it's and it's because of the quality of the gms

0:27:06.520 --> 0:27:09.920
<v Speaker 1>and how hard they're working at it. So, um, that's

0:27:09.960 --> 0:27:12.959
<v Speaker 1>good stuff. The top of your pyramid. It's restaurant profits.

0:27:13.000 --> 0:27:15.719
<v Speaker 1>But you only gave it one and a half pages

0:27:15.760 --> 0:27:18.680
<v Speaker 1>in your three hundred page book how Come? And that's

0:27:18.720 --> 0:27:24.280
<v Speaker 1>intentional because throughout the book, the message that I'm trying

0:27:24.400 --> 0:27:30.320
<v Speaker 1>to to express the philosophy is as follows. When you

0:27:30.359 --> 0:27:35.480
<v Speaker 1>have great food, great service, great atmosphere, highly trained, the

0:27:35.520 --> 0:27:41.080
<v Speaker 1>employees motivated and inspired, and you're active in marketing, and

0:27:41.160 --> 0:27:46.080
<v Speaker 1>you manage your cost reasonably well, profit becomes a natural outcome.

0:27:46.400 --> 0:27:49.520
<v Speaker 1>You don't even have to worry about it. That's and

0:27:49.600 --> 0:27:53.199
<v Speaker 1>that's what exactly all right in the book, because you know,

0:27:53.280 --> 0:27:56.760
<v Speaker 1>you cannot achieve profit when you have low sales because

0:27:56.800 --> 0:28:01.720
<v Speaker 1>of bad food or bad services, as simple as that. Yeah,

0:28:01.760 --> 0:28:05.199
<v Speaker 1>it was awesome, all right. So yeah, great job on

0:28:05.240 --> 0:28:07.679
<v Speaker 1>that book, man, I really enjoyed it. I'd like to

0:28:07.720 --> 0:28:11.480
<v Speaker 1>move on. Ask you a couple of other questions outside

0:28:11.480 --> 0:28:14.800
<v Speaker 1>of the book. Are there any interesting or challenging projects

0:28:14.840 --> 0:28:17.879
<v Speaker 1>that you're working on at FGP at the moment, or

0:28:17.960 --> 0:28:20.400
<v Speaker 1>is there an issue that clients are especially worried about

0:28:20.520 --> 0:28:25.919
<v Speaker 1>right now? Yeah. Look, the internationally, franchising slowed down a

0:28:25.960 --> 0:28:31.240
<v Speaker 1>lot because what I'm seeing globally, Mike, people are going

0:28:32.240 --> 0:28:36.159
<v Speaker 1>or more entrepreneurs or more in favor of chef inspired restaurants,

0:28:37.520 --> 0:28:42.240
<v Speaker 1>mom and pop restaurants versus about ten fifteen years ago

0:28:42.600 --> 0:28:46.000
<v Speaker 1>was all about franchising, at least on the international front.

0:28:47.040 --> 0:28:51.040
<v Speaker 1>What people are worried about are what you're worried about everywhere,

0:28:51.120 --> 0:28:56.400
<v Speaker 1>inflation and employee turnover, which been the case for a

0:28:56.480 --> 0:29:02.120
<v Speaker 1>long time and for both. Yes, in the US, a

0:29:02.200 --> 0:29:06.480
<v Speaker 1>lot of people did menu downsizing, they reduced their menus,

0:29:06.480 --> 0:29:09.320
<v Speaker 1>but it's much more than that, Mike, and sorry, I'm

0:29:09.360 --> 0:29:11.160
<v Speaker 1>going to use the book as an example. In the

0:29:11.200 --> 0:29:16.920
<v Speaker 1>cost management chapter, we explain about cross utalization, minimizing single

0:29:17.000 --> 0:29:21.600
<v Speaker 1>use items. You know, counting how many ingredients you buy,

0:29:21.680 --> 0:29:25.240
<v Speaker 1>and questioning why do you buy those ingredients? And not

0:29:25.360 --> 0:29:27.920
<v Speaker 1>everything should be passed to the consumer because there is

0:29:27.920 --> 0:29:30.360
<v Speaker 1>a certain point where you can't raise prices anymore, and

0:29:30.440 --> 0:29:34.120
<v Speaker 1>you have to be very intelligent in your processes and procedures.

0:29:34.120 --> 0:29:36.320
<v Speaker 1>And again we go back to training, right and the

0:29:36.360 --> 0:29:40.560
<v Speaker 1>importance of training, so that these are you know, inflation employees,

0:29:40.600 --> 0:29:45.120
<v Speaker 1>turn over, and slowdown of internationally franchising. This is these

0:29:45.160 --> 0:29:48.040
<v Speaker 1>are the top three challenges that I see. Very cool, yeah,

0:29:48.040 --> 0:29:53.200
<v Speaker 1>And productivity improvements and are you know are something that

0:29:53.280 --> 0:29:56.560
<v Speaker 1>management teams are talking a lot about. They're also talking

0:29:56.600 --> 0:30:01.520
<v Speaker 1>about reducing waste and continu continually trying to get better

0:30:01.560 --> 0:30:04.840
<v Speaker 1>at that aspect to save money on their food costs.

0:30:04.920 --> 0:30:09.080
<v Speaker 1>So all good stuff. And are you familiar with the

0:30:09.080 --> 0:30:12.640
<v Speaker 1>new Burger King US turnaround plan? Do you have any

0:30:12.680 --> 0:30:15.600
<v Speaker 1>thoughts on the plan specifically or any ideas about what

0:30:15.720 --> 0:30:18.840
<v Speaker 1>your former employer can do to boost sales and operations

0:30:18.920 --> 0:30:21.960
<v Speaker 1>right now. It's interesting you asked that because at the

0:30:22.040 --> 0:30:25.600
<v Speaker 1>time when I worked under Steve Weiberg was the president

0:30:25.640 --> 0:30:31.400
<v Speaker 1>for Burger King for North America, we were experiencing kind

0:30:31.440 --> 0:30:35.200
<v Speaker 1>of a turnaround. At the time Whopper, which is the

0:30:35.200 --> 0:30:38.960
<v Speaker 1>most important sandwich in the burger and the brand we

0:30:39.360 --> 0:30:45.960
<v Speaker 1>were doing freshly caught lettuce, freshly caught tomatoes. We reduced

0:30:45.960 --> 0:30:48.960
<v Speaker 1>the shelf life of Burger holding the burger patties, we

0:30:49.160 --> 0:30:52.280
<v Speaker 1>changed the French fries, we brought smoothies, we brought digital

0:30:52.320 --> 0:30:55.520
<v Speaker 1>menu boards. So it was an amazing period, by the way,

0:30:55.560 --> 0:30:59.680
<v Speaker 1>and I admire what Steve has done at that time.

0:31:01.240 --> 0:31:04.520
<v Speaker 1>I've read a little bit about what Burger King trying

0:31:04.560 --> 0:31:07.840
<v Speaker 1>to do now with a lot of remodel and technology

0:31:07.960 --> 0:31:11.360
<v Speaker 1>and investing in the restaurants. And that's the right way

0:31:11.400 --> 0:31:16.560
<v Speaker 1>to go because this it's so competitive right now, and

0:31:16.760 --> 0:31:19.760
<v Speaker 1>other QSR brands have invested a lot of money in

0:31:19.800 --> 0:31:22.840
<v Speaker 1>the last few years. So if you're viewed as dated

0:31:23.000 --> 0:31:26.800
<v Speaker 1>and and and old, you're kind of losing market share.

0:31:26.880 --> 0:31:30.080
<v Speaker 1>So I support it. But the only thing I would say,

0:31:30.640 --> 0:31:34.680
<v Speaker 1>sometimes companies spend a ton of money into on technology,

0:31:35.600 --> 0:31:39.200
<v Speaker 1>not on product. I am a firm believer. I think

0:31:39.200 --> 0:31:42.720
<v Speaker 1>of Chippotli, for example. Chippotle did not invest a ton

0:31:43.640 --> 0:31:47.800
<v Speaker 1>on technology. It was always about great ingredients, great food,

0:31:48.040 --> 0:31:52.120
<v Speaker 1>and that's what the philosophy of their CEO, Steve, if

0:31:52.240 --> 0:31:56.400
<v Speaker 1>I remember the name correctly, So I would spend if

0:31:56.760 --> 0:31:58.600
<v Speaker 1>if it were me, I would spend a ton of

0:31:58.640 --> 0:32:01.760
<v Speaker 1>time on making sure I serve the best food. Ever,

0:32:01.880 --> 0:32:04.400
<v Speaker 1>it doesn't matter if it's a digital menu board or

0:32:04.400 --> 0:32:06.880
<v Speaker 1>a regular menu board. I think I think that what

0:32:07.000 --> 0:32:09.440
<v Speaker 1>brings people back. It's not the menu board that brings

0:32:09.480 --> 0:32:13.000
<v Speaker 1>you back, it's the hot, tasty burger that brings you back.

0:32:13.360 --> 0:32:15.200
<v Speaker 1>I think that's great advice, and I think that's a

0:32:15.240 --> 0:32:17.280
<v Speaker 1>great plug for your book because you cover all of

0:32:17.320 --> 0:32:20.440
<v Speaker 1>that in there. Marvin, Thank you so much for doing this.

0:32:20.440 --> 0:32:23.080
<v Speaker 1>This is great. How can our listeners get in touch

0:32:23.080 --> 0:32:26.920
<v Speaker 1>with you? Well, they can either find me on LinkedIn

0:32:27.120 --> 0:32:30.840
<v Speaker 1>Marvin Albali also or they can go to our website

0:32:31.000 --> 0:32:35.760
<v Speaker 1>ww dot Franchise Global Brands dot com and UH and

0:32:35.800 --> 0:32:38.640
<v Speaker 1>listeners can also reach out to me at m Helen

0:32:38.760 --> 0:32:41.560
<v Speaker 1>one at Boomberg dot net and I'll be happy to

0:32:41.600 --> 0:32:43.960
<v Speaker 1>connect you all right, Thanks again for doing this, Marvin,

0:32:44.040 --> 0:32:44.360
<v Speaker 1>Thank you,