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Restaurant Ecademy in the news:
In Nation's Restaurant News
In Franchise Times
What's making the news!
Diversity training: e-learning solutions for important business needs.
Technomic raises 2002 growth estimate to 2.1% for full service restaurants.
Benchmark your turnover.
Franchise Times discusses potential impact of distance learning.
U.S. News and World Report (October 15, 2001) describes e-learning successes.
Customer service, a saving grace in recessionary times.
It's time to start re-training.
Benchmark your turnover performance.
Is your staff strategic enough and trained enough to react to changing market conditions?
According to survey, operators conveying “intense pessimism.”
Diversity training: e-learning solutions for important business needs.
According to a February 4, 2002, Nation's Restaurant News article, diversity issues continue to challenge restaurant chains and operators:
- In 1993 Shoney's settled a discrimination suit for a whopping $133 million.
- In 1994 Denny's settled racial bias lawsuits with a $46 million settlement.
- Cracker Barrel is in the news because it was named in a $100 million lawsuit filed
in December of 2001 that alleges racial discrimination.- A Waffle House franchisee was sued in January 2002 by guests who claim mistreatment.
The article goes on to note that high turnover makes operators more vulnerable to these types of charges because training in a high turnover environment can become difficult:
“‘High turnover at restaurants also can frustrate efforts to maintain a well-trained staff,’ [Robert Derrington of Morgan Keegan & Co.] adds.
‘You can train all day long, but in three, four weeks, the staff turns over and you have to train another group,’ Derrington says. ‘Now it’s the Southeast chains, but the whole industry is vulnerable to these kinds of charges. When the turnover is high and diversity is not that strong, you have that many more times for a customer to come in contact with employees and end up feeling mistreated for whatever reason. The food was served too hot, too cold, took too long, they were seated in the wrong section.’”
Technomic raises 2002 growth estimate to 2.1% for full service restaurants.
Improving economic indicators and sales results from some family and casual dining groups have motivated an increase in Technomic's forecast for 2002 industry growth from 0.2% to 2.1%.
From a recent Nation's Restaurant News article:
“The Cheesecake Factory, with management turnover of 13 percent and hourly turnover of 69 percent, revealed . . . that such enviable numbers occur only when employees feel they have a future with the company.”
Franchise Times discusses potential impact of distance learning.
The January 2002 issue of Franchise Times quotes David McKinnon, chairman and CEO of Service Brands International, and head of the International Franchise Association’s committee on technology, on e-learning applications for restaurants:
“‘Distance learning is really the killer application of technology for franchisees,’ says McKinnon. ‘We've been slow to adopt this technology, but today, it has been refined. . . .This is going to be huge.’”
U.S. News and World Report (October 15, 2001) describes e-learning successes.
After a description of the various applications for e-learning, the article quotes a Circuit City executive on the company's e-learning initiative: “In the year since the system debuted, the time needed to educate a new hire has fallen in half, and Circuit City has pared it training department from 83 people to 13. ‘Within a few hours, we reduced the training budget by 50 percent and improved effectiveness,’ says Wells. So far, at least, he has seen no downside. At outlets like the Sterling, Va., store, E-learning has translated into happier customers-and more sales.”
For the complete article go to www.usnews.com and search “e-learning” for the October 15, 2001 article by Mary Lord.
Customer service, a saving grace in recessionary times.
From Nation's Restaurant News, January 7, 2002:
“Richard Feinberg, director of the Center for Consumer-Driven Quality at Purdue University, said [high levels of customer service] is nothing savvy restaurateurs have not heard before. But, he added, it does not diminish in importance.
‘This new emphasis on service begs a question,’ Feinberg said. ‘What is it? Do I really need one more person to greet me with a smile when I enter a restaurant? No. But in a slowing economy I do need to feel appreciated, valued and comfortable.’
‘The real key for restaurant owners in these times is how to turn a first-time visitor into a regular.’”
It's time to start re-training.
A Letter to the editor of Nation's Restaurant News, November 19, 2001:
“Operators must seize chance to fine-tune their business”
Editor, NRN:
Since the Sept. 11 attacks I've heard scores of restaurants complaining about their lack of sales. I've done my part these past weeks-I have eaten out no less than 20 meal periods.
To my amazement, whether fine dining, casual or quick-serve, the experience has been the same-mediocre to lousy. Now is the time for operators to be fine-tuning their businesses and focusing on the cornerstone, which is training. [bolded by RestaurantEcademy]
The restaurant industry will weather this storm, and, as we all know, this business is cyclical. There will be another shakeout of the poor performers.
The point I am trying to emphasize is that successful operators will take this opportunity to develop their staff and plan for the future. As for the others, well . . .
--Peter D'Andrea, Charlotte, N.C.
Benchmark Your Turnover Performance
A recent Nation's Restaurant News (NRN) article reported an average turnover rate for hourly restaurant workers for 2000 at 154%. Overall turnover rates for managers were at 37%.
The article went on to describe a continuing shortfall in the number of jobs and the number of eligible candidates to fill them through 2008.
Is your staff strategic enough and trained enough to react to changing market conditions?
According to a recent NRN feature, Ruby Tuesday has opened curb-side take out at 50 locations and could expand the service to over 100 of the chains 575 restaurants.
Outback does 8-9% of sales in take-out. Carrabba's does 5-6% of sales in take-out.
According to the article, others like Red Lobster, Olive Garden and El Torito are also providing the convenience of stay-in-your-car takeout.
Are you in a position to serve this customer set and compete effectively?
According to survey, operators conveying "intense pessimism."
According to a recent survey (the full text is available at FFCA.com) the confidence level of restaurant operators is at the lowest point it has been since the survey started in 1994.
What are operators concerned about?
- A weak domestic economy
- Continued labor related issues--finding and retaining employees, and the higher cost in wages and benefits
- Insurance costs
- Intense competition-too many seats and too few customers