BUSINESS GROWTH
A successful expansion program has three basic elements, suggests Rudy Miick FCSI, principal of The Miick Companies in Boulder, Colorado. “We have both profit and positive cash flow; a proven concept. We have systems in place to track performance [and] we are doing environmental scans to anticipate economic, political and social challenges coming at us. We are anticipatory and present instead of reactionary.” Jean Pierre Grossi FFCSI,
of the Institut Paul Bocuse in Paris,
France, says: “The key is control of growth. That is to say, it is necessary to control and measure the possible leeway. Is this a sustainable movement? Are there one or more temporary favorable circumstances? Is [the decision to expand] an impression, a feeling, or the result of an in-depth study?”
Adapting to opportunity For growth to work successfully, restaurateurs “must fulfill themselves by gathering the means to succeed without improvisation,” says Grossi. “Improvisation is not a good line of thought. Each step will be taken with confidence without venturing on winding and uncertain paths.” Particularly in the wake of the
Covid-19 pandemic, says Spiegel, many operators would be wise to develop multiple versions of their concept to fit into several models: full service, freestanding, in-line models, carts and kiosks, ghost kitchens and delivery only. Having ready models will enable a concept to adapt to any opportunity. Consider operational logistics before
growing your menu. For full-service concepts, Spiegel suggests: “Have the full breadth of menu. For limited models, reduce the menu to core items only.” Employ a menu-engineering philosophy based on yield management, she adds, to ascertain best use of equipment, staff, and space to create the menu.
“First have a plan. Without a plan – even an exit plan – owners and operators will be guessing about their decisions. Determine ‘to whom will my concept have value’ and design the growth strategy with high-value partners”
Marketing and advertising The biggest mistake operators make is not doing their homework, Spiegel has found. “They get lured into a location because of vanity or because the occupancy costs are below market. However, their concept may not be a good fit for the neighborhood.” Retail branded items that can be sold from the restaurant and through specialty food channels will keep the brand on the customers’ mind, Spiegel advises. “It’s not always profitable but it is a very good source of marketing,” she says. Miick is convinced that social media “is everything. Community outreach and participation is everything. Local or private chain restaurants will always have the leg up on national chains if they execute… Know the difference between marketing and advertising. Do both and budget for both.” Hiring must also be done in a measured fashion. According to Spiegel, the original prototype model needs to develop an operating model using multi-functional equipment and robotics versus excess manual labor. “Keep labor guest-facing for hospitality interactions and keep back-of-house labor slim.” Partner with suppliers for ready-cut and ready-to-heat products to reduce labor for basic prep.
Working with a consultant If you must expand hours of operation, says Marco Amatti FCSI, the CEO of Mapa Assessoria in Sao Paulo, Brazil, “surely you must add staff, but if
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THE AMERICAS
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