by Alastair Scott | Sep 30, 2024 | Thought Leadership
One of the most frequent questions I get asked is, if you are an ops manager, how do you organise yourself to deliver on labour in the most effective way, and in the least amount of time? The flippant answer is that it depends on a number of factors like the manager, the objective and on the ops manager themselves. But answering the question in this way is not entirely useful, so I am going to try and set out a few guidelines that will help to deliver this.
1 – Setting objectives for teams is essential, but they must be clearly defined so that progress can be measured weekly. In the past, this was often tied to labour percentage targets. Today, it is more likely to involve aligning with deployment goals that meet corporate objectives—or even hitting specific cash targets. Surprisingly, many large businesses still prefer managing at the cash level, despite having advanced deployment systems. While assigning objectives is common practice, the real challenge lies in achieving them!
2 – Establishing templates for business thresholds is more effective than relying on weekly signoffs. While you might expect weekly signoffs to be necessary, they demand excessive effort to make work and encourage sites to see if they can get away with it. This either results in a time-consuming overhaul or a repetitive process that drains resources. Managing fifteen sites could easily turn into a full day’s work. Instead, I recommend agreeing on templates for sales thresholds. Well-designed templates streamline the process and can be quickly adjusted, saving time.
3 – Schedule a weekly visit to adjust, refine, and discuss operations. This may seem like a big commitment, but it ensures each site has a deep conversation about labour roughly four times a year—a small investment given its impact on cost, service, and sales. The challenge comes if this process slips. Without regular review, template rotas become outdated, get ignored, and new, unapproved rotas will surface. If you are not careful, you will end up reverting to the process of weekly sign-off, which is time-consuming and destructive.
4– What does an effective process look like? It involves several stages, varying in length based on time and the quality of the team. Nailing these stages and embedding them into your business as best practice will really make a difference to how you deliver on labour.
Stage 1 – Tasks: First, identify all tasks within the business, categorise them, and determine whether they are fixed or slack. It is crucial to coach new assistant managers and managers on this properly, so that slack tasks do not become fixed, and fixed tasks do not get moved to pre or post opening times.
Stage 2 – Management Rota: Creating a solid management rota is key to ensuring proper leadership without overstaffing on slower days. By carefully structuring the rota, you can maintain a balanced and efficient operation.
Stage 3 – Deployment: Matching supply and demand is essential. A rota must be designed to align with these needs while delivering excellent service throughout the week. Keeping in mind that the worst service often occurs when you are the most overstaffed. The key is finding the right balance to ensure efficiency without sacrificing service quality.
Stage 4 – Shift Planning and Leadership: This is the most crucial step. By agreeing a shift plan, you focus on the essential tasks and the necessary structures to ensure the leadership team is actively managing the business. It is about organising operations to be guest-focused and effective. This level of detail is vital for maintaining a well-run, efficient operation, both on busy days and during slower times.
Stage 5 – Kitchens: Kitchens have always been the major source of overspend in our industry. Too often, we have sacrificed front-of-house teams to add more staff in the kitchen. Kitchens alone, with their challenges of line structuring, prep, and pot washing, require immense attention. In fact, effectively managing a kitchen could easily take a full day or more. But the rewards for getting it right – both in terms of cost control and operational efficiency – are substantial.
Maintaining these steps may seem challenging, but they are a crucial part of running a successful business in today’s high-labour-cost environment. By implementing these guidelines, you can create a more efficient operation that not only controls labour costs but also delivers great service across the board. It is all about putting the right systems in place to get your teams and your business set up for success.
by Alastair Scott | Sep 13, 2024 | Thought Leadership
For many of us who benefit from increased trade through the summer months, the beginning of September is a tough time. The kids go back to school, the summer holidays are over, and trade takes a dip.
I have been reading all the company results that say turnover has held up, but profits over the last year have not. I am reminded that the run from September to Christmas is a key trading period, and it also amounts to nearly one-third of the year. Like January, September is a pivotal trading period and is the time to make sure the key business targets are set to achieve the level of profitability we require.
Food and drink GP, and what we call ops costs, all need to be well-managed through this period. As of course, does labour, which I am going to talk a bit more about. My first piece of advice is to spend a decent amount of time getting a good base rota for this time of year, with a cost against it that meets the needs of the business.
For us, 10 of the 12 weeks were all within a 15% range, so if we pick the lowest number in that range, we can set a rota that works for each week. This means we can work hard on creating the perfect rota, which focuses on the following areas:
1 – Minimum staffing levels
It is too easy to decide that you need three people front of house, when two will work better. The same applies in the kitchen. Setting minimum staffing levels for quiet days or quiet times of busier days is one of the most important activities.
2 – Manager hours
It is critical that we move away from someone having an admin day. It is much better if we have admin afternoons, where the manager can work lunch, do admin in the afternoon, and then step back to the floor for the early evening until the end of the shift.
3 – Slack tasks
We need to determine which tasks can be done within normal working hours and do not need specific hours against them. Kitchen prep is the toughest one, but it is also important to focus on how the staff can do all the closing tasks before the customers leave, saving valuable hours after the business closes.
4 – Staffing for peaks
While we might want to focus on costs, it is still essential to ensure we have enough staff on when we are busy. Cutting staff at the wrong times just damages service levels, and thus in the end, sales, which is counterproductive. I am a massive believer that we all need to make sure the peaks of the weeks are well-staffed, as this is fundamental to growing our business.
If we do all these things we can create an amazing service led by a cost-effective rota. As I have written elsewhere, overstaffing is the enemy of good service, and we all need to ensure we do not creep into overstaffing as sales drop in September. But the great thing about this process is that you can agree a rota, and a cost, with the relevant people for a whole series of weeks, and it should be easy to manage. But what are the management risks?
1 – Ground up rotas
It still surprises me how often people write rotas from a blank sheet of paper rather than using a well-thought-through template. A template rota delivers a lower cost, better service, and takes less time to write. The only adjustments then need to be for any events or unusual trading patterns.
2 – Managing the costs before the week starts
It is essential that as management teams, we stay on top of this during this period and catch anything early and well before the week starts. The perennial problem with labour is drift, with teams tending to want more to drift back to the old, easier, ways. Pressure from teams as to when they want to work is normally the biggest factor, and we need to stay strong and help embed new habits.
3 – Adding one on
Many managers can look at the rota for the day they are running and think they are short, either through a misguided belief that service will be better or because they want an easier shift. We must train these people not to do it and really look at how the costs move in the week.
Making our business processes work in the long periods of average sales and engineering our businesses to deliver the desired level of profitability at these stages is the way we will improve our profitability as an industry. In the long run, we need an appropriate level of profit to pay down debt, re-invest, and to grow.
by Alastair Scott | Sep 6, 2024 | Thought Leadership
I’ve been thinking about the word ‘coping’ recently. It is a word I dislike because it is used far too often, without thinking about its actual implications. Whenever I have watched service in my own restaurants at times when we’ve been short staffed, I always hear ‘we coped’.
What the team mean when they say this is: we didn’t have any serious complaints; none of the staff walked out; we didn’t get asked to take money off bills. We survived a struggle.
So, if we’re only ever coping, we’re lowering the standard of our businesses. Everyone knows that as industry we have, and continue to, overcome cost pressures and labour shortages, amongst other struggles. And yes, perhaps just getting by means we are faring better than others. But, when staff say, ‘we coped’, what they are really saying is: guests were ignored at times; bills went down too late; service was very slow; our starter and dessert penetration dropped; we didn’t offer second drinks; we stopped looking at the guest in case they wanted something; tips dropped but not too badly; the customer might think twice about coming back next time. Our staff didn’t feel great about their shift, and didn’t feel that, as a company, we care about service or how their shift goes, because otherwise, we would have put more staff on. So yes, maybe they did ‘cope’, but without customers or staff, you won’t be in business much longer.
What we should be doing is solving the problem. We all love giving guests a brilliant time and feel great when they leave with a smile and a compliment. So why don’t we make the changes that can ensure all of this happens? Which of course, means rotaing the right number of staff at the right times, ensuring service standards are never compromised, and then identify areas improvement and strategies to improve productivity, whether that be through the help of consultants, or within the team.
There are many questions we could ask as to why we aren’t matching deployment levels to demand. Is it because staff don’t want to work then? Is it because we have run out of budget? Is it because we have got into the habit of only putting a certain number of people on because we believe that coping is good enough? Is it because we just haven’t got the part-time staff? Is it because we have allocated staff at a different time of the week? All of these questions require us to look into our labour habits and then find a way to manage them across the business so that we can be our best in every shift.
I wouldn’t have written this article if I didn’t think that the word coping has created a lens through which we excuse ourselves for poor service. As the owner of a labour tool which constantly highlights the need for more staff when we are busy, I am constantly surprised by the number of sessions which are planned to be short-staffed.
I am reminded of when I used to be involved in the Trout in Oxford, the beautiful pub on the river made famous by Inspector Morse. Whenever there was a sunny day people flocked to the pub, only to be disappointed by the service and then not to return until the next sunny day. If you are not careful you end up in the very vicious circle of being busier in the quieter sessions, because your reputation during peak trading times is not quite good enough.
So, the next time you hear the word cope, please do explore it a bit more.
by Alastair Scott | Aug 27, 2024 | Thought Leadership
A few rather dangerous things seem to be coming together at the moment. Not long ago, I wrote about the challenges faced by the younger generation. As a result of Covid, educational attainment has fallen behind across the world, and social skills have also taken a hit. Prolonged isolation and disruption of normal routines have left many struggling to catch up, both academically and socially. These setbacks are becoming a serious issue for the future of this generation and their employment prospects.
Actually, England has held its ground and is even moving up in global rankings, though this is largely because it hasn’t worsened. The Scottish, on the other hand, because of “progressive” child-centric policies have sadly fallen down the world rankings. As a result, the generation that went through school during the pandemic (perhaps there will be a name for them, but for now, I will call them the Covid generation) faces disadvantages in the workplace in terms of both social skills and educational attainment.
The new Labour government is planning to make significant changes to wage and employment policies. They intend to remove the lower levels of the minimum wage, which would bring younger people up to the same rate as those in higher age brackets. Young workers could earn the same as their older counterparts, regardless of age. They also aim to improve immediate employment rights by giving new workers the same protections and entitlements as those who have been employed for longer and have already proven their worth in the job.
Both activities clearly have a significant cost on our industry. Another increase in the minimum wage will inevitably add a substantial financial burden. This will undoubtedly affect our bottom line. Additionally, the plan to bring forward employment rights will make it increasingly difficult to manage underperforming employees. It will not only make it harder to let go of those who are not meeting expectations but will also drive up our HR costs.
However, I am not sure that any financial argument will have much of an impact on a government that is so firmly focused on its mission. Perhaps, then, our worries and arguments will end up seeming parochial and irrelevant in the grander scheme of things. The government’s determination to push through its agenda may well overshadow any industry-specific concerns, no matter how valid or pressing they may seem to us.
What I do think will matter, though, is youth unemployment. We are currently at a time when youth unemployment has been rising again. Over the last 12 months, it has increased from 11.4% to 13.9%, according to the Office of National Statistics. Additionally, the economic inactivity rate for young people has also been climbing, going from 38.8% to 41%. These statistics are the most concerning for our country, as it seems to me that the greatest risk to society is when young people fail to develop a work ethic in this crucial phase of life, whether after school or university. This, in my view, is the real measure of a government’s success—not just whether people are paid enough when they work or how many rights they have.
As an industry, we should be campaigning hard for young people because we are one of the key recruiters and one of the main developers of skills for 16- to 24-year-olds. As I sit here on a beach holiday, surrounded by Irish staff, I am reminded that the option for European summer employment has also largely disappeared. We need to make a strong case for our industry’s role in helping the Covid generation become an asset to the country. But we also need individual incentives. Without them, employing young people will become a last resort rather than a priority.
Funnily enough, one of our customers, a highly successful businessman, recently suggested that his 16-year-old daughter should get some work experience at one of our pubs this summer. He clearly understands the importance of her gaining real-world experience to help her grow and develop essential skills. Of course, we will ensure that everything is done within the bounds of legislation, but we will make it work. It is a perfect example of how important it is for young people to engage in the workforce early on.
But our real objective, as a country and an industry, should not be to fail the covid generation a second time be not letting them work. Food for thought.
by Alastair Scott | Aug 9, 2024 | Thought Leadership
We have recently introduced iPad tills into our pubs at long last. Many of you are probably, and rightly, laughing because you did this ages ago. In fact, I have many unhappy memories of trialling mobile tills fifteen years ago at the Trout in Oxford, when Gavin Smith, now MD of Pizza Pilgrims, was the manager. Back then, the theory was great, but the practice was awful. The screens weren’t powerful enough to be used in the sunshine, the configuration was so poor that staff abandoned them for the old tills, and they would drop in and out just when you needed them most, especially in the garden.
Flashforward to today, and I am really happy to say that all these problems are now completely solved. There are two significant reasons to adopt iPad tills if you haven’t already. The first is efficiency. Our measurements show a 15% increase in front-of-house efficiency from not having to take the order twice (once from the customer and once into the till) and from reducing unnecessary walking. This efficiency alone will save us a team member on busy shifts and allow for many more slack tasks to be undertaken during quieter shifts.
The other big benefit of iPad tills is the positive impact on shift planning. This move allows our best team members to stay focused on serving guests, manage larger sections, and be supported by food runners and bussers who can also take orders. Our old shift planning methods need to be revamped entirely. Investing in new technology like this offers a fantastic opportunity to place the right people in the right roles, ensuring our top team members are front and centre, smiling and delivering the best possible experience for our customers.
Our team members who are less adept at smiling or engaging with guests are being moved to supporting roles. This ensures that those in direct contact with our customers are the most engaging and personable. I like this hierarchy, as it creates an incentive for those who don’t naturally smile or engage to improve these skills if they aspire to the top front-of-house positions. We encourage all team members to elevate their customer service abilities. Those who may initially find themselves in supporting roles now have a clear pathway for growth and development within the business.
The implementation of iPad tills has completely changed our service capabilities, especially in previously challenging areas like the garden, which were too far away. Drinks can keep flowing all day, and the adage that people should only get up to go to the toilet or to leave, can really happen. We have been given the opportunity to be more on it than we have ever been.
It is too early for us to know the exact uplift in second drinks and upsells, but initial evidence suggests that this might be in the order of 10%. If so, this is massive. Even 5% on our turnover would be amazing. £70k of extra sales will be another £45k of profit – hardly a number to be sneezed at.
It wasn’t long ago that I attended a conference where I spoke about my biggest mistakes as an operator. Ironically, I emphasised how my regrets often stemmed from opportunities I didn’t seize, rather than the actions I took. Now, I would certainly add iPad tills to that list. Having tried and failed twenty years ago, I now realise I should not have given up for this long. The implementation and adoption were so much easier than we all expected, and I really believe the results will flow through much faster too.
The journey to modernise our operations has been a learning experience, but the rewards have proven to be well worth the effort. The transition to iPad tills is a testament to how embracing new technology can address long-standing issues and propel us towards a more efficient future. I am excited to see the continued positive impact on our business and am confident that we are now better equipped than ever to provide an outstanding service for our guests.
by Alastair Scott | Jul 30, 2024 | Thought Leadership
I recently had the most marvellous dinner debate with a few senior restaurant owners. There were five of us at the table, which allowed for a single, engaging conversation that covered a vast array of topics.
We started with discussions on working with private equity and ended up pondering how many more pizza concepts the UK could handle. The debate was fascinating, sometimes argumentative, but always informative. We all walked away feeling more energised and clearer on certain issues than we had been before.
This experience reminded me of the importance of spending time with industry peers to debate both pressing and not-so-pressing issues. It’s crucial to find ways to improve our future together, and I feel very lucky that my job allows me to talk to people frequently. I find that I am given the opportunity to listen more often than most, which really is invaluable in an industry like ours. I get to hear and better understand different experiences of those around me. And, as someone who is both a supplier and an operator, I also hope that I can relate to challenges more easily than others.
One of my reflections after the dinner was why the pub and restaurant industries seem so far apart. I don’t see them as fundamentally different. I often argue that my own village pub has a higher percentage of food sales (70%, for those interested) than the average restaurant. We serve less alcohol because someone is always driving.
I concluded, perhaps incorrectly, that the biggest difference between the two industries is scale and finance. The restaurant sector seems more focused on rapid scaling and has a higher level of ambition than the pub sector. Consequently, it needs more financing, with private equity often backing these businesses. One might conclude that private equity has also fuelled this need for growth. To achieve a threefold return in five years, you have to grow quickly. As a result, the types of people and the necessities of the business model create very different landscapes.
I recently attended a business leaders forum for high-growth companies. Richard Harpin, who chaired the session, asked an intriguing question: who was an accidental business founder and who was a purposeful one? Who had wanted to do it since they were young, and who just stumbled into it? I was fascinated to learn that about two-thirds had always wanted to do it. I was one of those who stumbled into it. There must be a different personality type at play here, but I’m not sure what it is, especially since he mentioned that the best leaders have low ego (not sure where I stand on that either!)
This leads to the question of how we define success. Oijon Rogers, founder of the Devonshire Arms, defines success as having one amazing business. One of the worst questions people ask at conferences is how many sites you have. I hate that question, but I still ask it myself. Should we be asking how many sites you have and how many you want? Should we be asking how much money you make, or is that too personal? Should we be asking what success looks like for you and how you will get there? Or should we simply be asking how much you enjoy it?
One of the five attendees was an operations manager for a chain of restaurants. We spent a lot of time debating whether he wanted to go out on his own and what was stopping him. Friends of his had done well, and he really wanted to, but wasn’t quite brave enough. Yet. Maybe he will be like me and become an accidental business founder. And like his friends, he might start in pubs, not restaurants.
By the way, the consensus on private equity was clear: avoid it if you can. Sure, it presents incredible opportunities, but the relentless pursuit of growth isn’t for everyone. Many of us simply aren’t wired that way. As for our thoughts on pizza, we agreed it has lasting appeal. It’s a versatile vehicle for a variety of flavours and has the distinct benefit of being challenging to replicate perfectly at home.
So, gather your group of five, enjoy a hearty meal, and, like me, emerge with renewed energy and passion.
