When The Easy Way Is the Colossally Wrong Way

In today's challenging restaurant business climate, many successful operators find themselves stuck despite mastering two or three key areas of their business. This episode explores why consumer sentiment is impacting restaurant spending, how restaurant entrepreneurs can break through growth barriers by tackling areas that don't come naturally to them, and the critical importance of developing comprehensive business skills to achieve true scalability. Matthew discusses real examples of multi-unit independent restaurant owners who are struggling with leadership development, profit optimization, and operational systems, while providing actionable strategies for restaurant business growth in a flat market where guests are more selective than ever.

Key Topics Covered

• Consumer sentiment data showing widespread concern about inflation and job security affecting restaurant spending
• Why restaurant owners get stuck knowing only 2-3 of the 10 essential business skills needed for growth
• The difference between working ownership hours versus creating actual business output
• How to master areas that don't come naturally to achieve economies of scale in restaurant operations
• Leadership development challenges for managers who run shifts but can't inspire teams
• Profit level optimization and restaurant valuation considerations for retirement planning
• Service and menu upgrades to boost online reviews and customer acquisition

Links Mentioned

• University of Michigan Surveys of Consumers
• How to Conquer My Three Stages of Restaurant Business Growth
• How Restaurateurs Avoid the Perils of Owning the Only Company They've Ever Known

Resources Mentioned

• Website: www.surrender.biz
• Free initial consultation available

Connect with Matthew Mabel

Matthew works with owners of successful, independent, multi-unit restaurants to improve:

• Profit growth
• Sales optimization
• Guest count increase
• Unit expansion
• Employee engagement
• Brand loyalty

How to Support the Show

• Subscribe to the Restaurant Success Podcast and Newsletter
• Rate and review the show
• Visit www.surrender.biz for additional resources

Transcript

Hello, and welcome to the Restaurant Success Podcast. I'm Matthew Mabel, veteran restaurant advisor, coach, consultant, and speaker devoted to multi-unit independent restaurant unit, profit and revenue growth, internal harmony and ownership freedom and flexibility.

This is your weekly entree of the advice, strategy and tactics that I currently provide to my best clients.

Today we're going to talk about something that might sound counterintuitive at first.

I want to tell you about the times when the easy way in your restaurant business, is also the colossally wrong way.

We'll explore what's really happening with consumer sentiment right now, why some operators are stuck despite knowing a few things really well, and I'll share some real examples of restaurant owners I've met recently who are facing these exact challenges. Most importantly, we'll talk about how to break through these barriers and identify that one thing you could tackle that would significantly improve your business.

So here's a News flash.

Consumers do not feel super-excited about spending money with you right now. That's not so much because of the current economy, but because of their concern about the "Future" economy.

One set of numbers I never thought I'd look at would be the University of Michigan Surveys of Consumers, which I understand to be the mother of all consumer sentiment research.

The survey shows that, across all demographics and political lines, people currently agree on only one thing: they're concerned about inflation and the possibility of losing their job. In that kind of flat market - when guests are counting every dollar and dissecting every restaurant experience: do you still just do the same old thing?

In our business, people are able to live fantastic lives only knowing two or three of the ten things you really need to know. But they then become stuck when they don't tap into those new skills and understanding. As a result, they often replace ownership hours worked for actual output - spending that sixth and seventh day at work when they could be doing something else. In a way, that has created my business - because I come in and put in all the missing pieces.

The whole key to growing guest count and profit now involves mastering the areas that do not come naturally to you, to realize economies of scale. You provide better experiences for your guests. You rely on business practices behind the scenes and develop people. Then turn that revenue into a more-than-acceptable level of profit.

Recently, I have met a lot of operators I can help, who can raise revenue and management capability and retention over their tens of millions of dollars of volume and critically acclaimed concepts. They have had to figure out leadership and systems by themselves because they grew with the company, without mentors or role models to tell them what the industry had already figured out.

I'm also meeting operators who will only be able to build more restaurants when they stop feeling frustrated since their managers run shifts but don't seem to be able to lead or inspire. Raising up these managers will mean they can grow with confidence.

Then there are those who no longer think their profit level works just because it has always been that way, because since they've never compared theirs to other similar operations. They've started to think about retirement and have been jolted by reality when realizing the valuation they want must be supported by higher profits.

And others who figured out that a service and menu upgrade and a compelling effort to boost positive reviews will raise their Google and Yelp scores - scores that currently stop people from dining in their restaurants.

In a flat market, more than ever you must master the areas that do not come naturally to you. Then things really take off.

Even if it might, at first, seem impossible in a flat market, what one thing could you tackle? What's something that would "significantly" improve your business?

Now, before we wrap up, I want to mention a couple of articles I've written that really connect to what we've been talking about today.

The first one ties directly into what I mentioned about raising up managers so they can lead and inspire rather than just run shifts. I wrote a piece called "How to Conquer My Three Stages of Restaurant Business Growth" that breaks down exactly where you are in your business journey and what you should focus on next.

Whether you're in the Adrenaline-Espresso Years, the Chill-Out-and-Reflect-stage, or the Should-I-Stay-or-Should-I Go phase, understanding your stage changes everything about how you should be spending your energy.

The second article relates to those operators I mentioned who had to figure out leadership and systems by themselves because they grew with the company. It's called "How Restaurateurs Avoid the Perils of Owning the Only Company They've Ever Known."

This is a surprisingly common situation - owners who have incredible companies with strong heritage and pride, but who are missing one or two pieces essential to how the industry works now, simply because they've never worked anywhere else.

You can find links to both of these, in the show notes.

Let me tell you about how we might work together. I work with owners of successful, independent, multi-unit restaurants to grow their profit, sales, guest count, and unit count. My unique approach bonds employees and guests to restaurant brands and allows owners to enjoy the freedom and flexibility they have earned.

To schedule a call with me to discuss how to achieve your biggest goals, follow the link in the show notes. The initial consultation is complimentary, and we can discuss which big moves might be right for your operation.

Thanks for listening. If you haven't already subscribed to the Restaurant Success Podcast and Newsletter podcast, please do so, and rate and review the show. Find more information in the show notes at Restaurant Success Podcast dot com.

Also find tons of information you can use in print, audio and video form at my website, www dot surrender dot biz. Thanks again and see you next time.