Leadership & Culture: How to Put the Key Drivers of Business Success to Work in Your Restaurant

Have you ever hired someone who you were convinced would be an exceptional worker and employee? They had everything you look for in a new hire: enthusiasm, positive attitude and excellent social skills. In short, the total package. A sure winner.

For the first few days and possibly even weeks, their performance met and may have even exceeded your lofty expectations.

But after the honeymoon period passed, some cracks started to appear. At first the issues seemed minor; a missed detail here or there. Then, for the first time showing up a few minutes late for a shift and then it happens a second time.

Maybe just a "bad day" or "probably had a good reason," you assured yourself. But the out-of-character behaviors continued. Then, you started noticing their attitude and interest in their job sliding. The enthusiasm that impressed you so much during the interview process became a thing of the past and their work ethic went from superior to mediocre and at times even worse. Eventually, the person you thought would be a slam-dunk superstar, instead became one of your biggest hiring disappointments.

Why Did This Happen?

Here are two possibilities:

1. You made a hiring mistake and selected a bad worker.
2. You brought a potentially good worker into a bad culture.

While it's possible to be hoodwinked by a slick interviewer, chances are, if an employee performs well for a time, even for just a few weeks, you know they have the skills to do the job. So it's not a question of skills and they didn't forget how to do their job. Something else must be going on that's affecting their attitude and desire to do their best.

What often occurs is that the promising new employee runs headfirst into a culture that saps their enthusiasm and steals any enjoyment or sense of satisfaction out of their time at work. Because of problems and frustrations, their excitement turns into disenchantment, frustration and eventually apathy; they just give up caring about their job.

The point is this: You can spend all the time and money you want on hiring quality people and that's good. But if your culture doesn't nurture and support their success once they're working in your restaurant, it will only be a matter of time until you end up with a group of dispirited, mediocre employees at best.

What Is Culture and Why It Matters?

Basically culture is how people think, feel and act while they're on the job. Merriam-Webster defines culture as the set of shared attitudes, values, goals and practices that characterizes an organization.

Whether it's intentional or not, every company, organization and even family has its own "culture." This is significant because your restaurant's culture has a profound influence on the quality of your employees' work, how they deal with their co-workers and your customers and the amount of personnel problems you and your managers have to deal with.

For example, restaurant employees are in a position to make hundreds of small yet important decisions on their own every day, often when a manager isn't looking over their shoulder. Culture provides an invisible yet profound framework that guides the quality of those decisions. Culture helps to form the standard, the expectations and even the motivation to do what's in the best interest of the restaurant and customers or, conversely, what's most expedient or easy at the moment for the employee.

How to Evaluate Your Culture

When you look closely at any highly successful organization or even sports team, you'll find that the majority of the team members tend to think and act consistent with the following positive attitudes and behaviors:

Conversely, examine a company or group of people that consistently underperforms and you'll likely find a good portion of their members possessing or demonstrating the following negative characteristics:

When the negative characteristics prevail, the culture is not set up to support success. What characteristics do the majority of your staff exhibit most of the time? Getting a sense of this will give you some insights on the current state of your own culture.

#1 Factor in Sustaining Your Restaurant's Success

Many business experts believe that creating and sustaining the right culture is the No. 1 job of any organization's leader, from the small-business owner to the CEO of a major corporation. Without the right culture, teamwork suffers and it's easy for people to get distracted into unproductive attitudes and behavior.

Culture is an essential ingredient to business success because it influences your employees' attitudes and their frame of mind while they are performing their jobs. Culture affects whether your employees dread coming to work or look forward to it. Culture also affects the level of friendliness, hospitality and care your employees bring to the table or counter when serving your guests. Indifferent people tend to deliver indifferent service.

Culture touches every part of your operation because your people control the activities and outcomes in virtually every aspect of your restaurant. Think about it: Every minute your restaurant is open your employees perform the activities that directly and materially affect all of the following -

1. Quality of service
2. Quality of food
3. Customer satisfaction
4. Sales
5. Inspection scores
6. Cost control
7. Productivity
8. Profitability

The brutal reality is, your restaurant's results are highly dependent on the performance of your people and your staff's performance is highly dependent on the quality of your culture.

Companies that are intentional about their culture have guiding principles. People know what they stand for and their rules of the game (how they do business) are clearly spelled out. Everyone knows what to expect and there is consistency between actions and words. This helps everyone to work together toward accomplishing a common mission and becomes the force or bond that keeps the company together, moving as a team in the same direction.

A positive culture means happier, more productive employees, lower turnover and better company performance and results. Owners, employees and even customers have a much better chance of getting what they want in restaurants where a positive, high-performance culture is maintained.

What a Positive Culture Can Do

The financial return for elevating your restaurant's culture can be extraordinary. We know a highly successful businessman who has bought and sold numerous small- to medium-sized businesses over a long and highly successful career. Some of the small businesses he has owned include car washes, collision shops, dry cleaners as well as other basic and common enterprises.

When he purchases a new business, guess what he does for the first six to nine months? HE WORKS ON THE CULTURE! THAT'S IT!. He makes virtually no change to prices, products, marketing, systems or processes within the business. He may tweak something if it's having a negative effect on his people or the customers, but his primary objective in those first few months is to build a more positive and productive culture for his employees.

By focusing exclusively on culture, he claims that the lowest amount of profit improvement he's seen in any company over the past 30 years is 50% and it's often much more. Improving your culture fosters and creates superior employee and customer relationships, which is the foundation of success in any business.

Key Point: Improving your culture may be the most effective and dramatic way for you to improve the profitability and maximize the value of your restaurant.

Ways to Create a Better Culture

There are a multitude of factors that affect an organization's culture. Yet many high-performance companies have many similar characteristics. Here are some of the best and most effective practices and approaches that we've learned from companies that have created and sustained a high-performance culture for many years.

1. Have a world-class mission.

Communicate and live by a philosophy, mission or purpose that goes beyond your bottom line. Companies known for having outstanding cultures stand for something that is often outward focused and appeals to a higher or common good.

For example, the massively successful Union Square Hospitality Group states their philosophy of "enlightened hospitality" like this:

"The basic premise is simple. We take care of each other first. Because to be champions, we need a team that supports all the individual players. Our next priority is to our guests, then our community, our suppliers and our investors. Enlightened Hospitality is a virtuous cycle that perpetuates the positive energy that drives us toward our goals.

"This is why we love where we work and why people love working with us. It's the way we leave our guests feeling great and wanting to return to us, to get that feeling again."

Pal's Sudden Service is a 25-location QSR (quick-service restaurant) chain that boasts an average annual sales volume of more than $1,500 per square foot. Their mission statement is short, to the point and focused entirely on the customer: "To delight our customers in a way that creates loyalty." They credit their mission statement as one of the primary reasons for their success and in being awarded the prestigious Malcolm Baldrige National Quality Award. Pal's received this award in 2001 and at the time was the only restaurant company to ever receive it.

...If the rules of the game in our restaurant are loose or nonexistent,consider beginning the process by communicating the three basic guidelines mentioned earlier. But be forewarned, merely communicating your rules won't change a thing unless you, as the leader, are willing to enforce it...

In both of these organizations their philosophy and mission serve as a constant "North Star" that drives their policies, practices and ongoing decisions. They aren't just written on a plaque and hung on a wall. They are guiding principles communicated and referred to formally and informally on a regular basis and they are reflected in the daily actions and attitudes of their owners and top management.

Pal's for example, has identified key business drivers that directly ties their mission statement to specific factors in the restaurant that they must excel at to carry out their mission statement objectives. Pal's key business drivers include quality, hospitality, speed, accuracy, cleanliness, value and people. One reason -- perhaps the primary reason -- Pal's has succeeded in accomplishing their mission is their relentless commitment to achieving excellence in each of these areas for EVERY customer, EVERY time.

If you don't have an effective mission statement or guiding principles that your entire staff understands and can see in action, then start here. There's no better way to begin creating a better culture than deciding to stand for something that speaks to accomplishing a worthwhile common goal that inspires teamwork, cooperation and excellence.

2. Communicate and enforce your rules of the game.

Every organization needs rules that define how the people within the organization are to function and interact with each other. Chances are, if your culture is not what you want, your rules of the game are either not appropriate, haven't been adequately communicated or aren't enforced. For any organization to function properly, everyone on the team should clearly understand the following:

• What's acceptable and what's not
• What's expected of everyone
• How to interact with each other
• How to hold one another accountable

Here are some basic, essential guidelines for establishing your own rules of the game -

A. Do the best you can.

The standard and expectation is that everyone comes to work expecting to play at the top of their game, every day. Accomplishing the mission (notice how the mission ties into everything) depends on how well every task is performed; therefore every job in the restaurant is important and serves a noble purpose: the mission.

Doing your best means not accepting average and doing just enough to get by. When confronted with a problem, look for a solution. Ask for coaching for feedback on how you can get better.

B. Do the right thing.

Take responsibility, be dependable and accountable. Do what you said you'd do, be on time and in the right frame of mind. When you see a problem, don't ignore it. Own it and solve it. Don't pass on inferior work for someone else to fix.

C. Show people that you care.

Show respect to everyone. Be generous in the use of "Please," "Thank you," "My pleasure," "I'm sorry" and "Pardon me."

Let others know you're on their side and have their back. Express and demonstrate appreciation often.

Think for a minute the type of culture your restaurant would have if the majority of your staff abided by just these three basic principles.

If the rules of the game in your restaurant are loose or nonexistent, consider beginning the process by communicating the three basic guidelines mentioned earlier. But be forewarned, merely communicating your rules won't change a thing unless you, as the leader, are willing to call it tight.

As the leader, calling it tight can be tough. It takes courage to enforce high standards consistently, every day. However, no organization or team has ever achieved excellence while tolerating mediocrity. You get what you tolerate.

Calling it tight means that your rules of the game are enforced, consistently, no exceptions, no sacred cows, every single day. You MUST be willing to enforce your rules of the game.

3. Raise your standards.

What would your restaurant look like if you no longer accepted average and insisted on excellence in every part of your operation? What effect would that have on your food quality, guest experience, cleanliness, cost control, word of mouth, customer loyalty and your profitability? I'm sure you'd agree that if your restaurant achieved excellence in the execution of the tasks and activities that affect your guests and your costs it would transform the financial results of your restaurant.

Raising your standards is not a theoretical pie-in-the-sky statement, but something that is manifested in measurable, tangible ways. Raising your standards can take many forms and might include the following:

• Strict employee dress code and appearance standards
• Spotless restrooms
• Recipe cards required when preparing any recipe
• Food is hot when it leaves the kitchen
• Periodic ticket time audits
• Line checks completed prior to EVERY shift
• Tables bussed within 60 seconds of guest departure
• Replace burnt-out bulbs or sign lights the same day
• Dining room floors kept immaculate -- never allow crumbs or debris
• Handwritten thank-you notes from staff to guests
• Any employee able to reject subpar food or beverage
• Dish room kept orderly and uncluttered
• Staff never passes a table with an empty dish without clearing it

Communicate your standards and then enlist your people to help you devise systems and procedures that will allow them to meet those standards every time. Don't overwhelm. Take on one or two at a time. Explain to them why (they MUST know why) and show them how this fits into your mission (very important) and you're on your way to creating a new culture, a better restaurant and a more stimulating and rewarding place for your employees to work. If done right, most employees (at least the ones you want to keep) WILL respond positively to leadership that provides direction, focus and purpose in what they do.

Why aren't more restaurants performing at the level of excellence already? Many don't think it's possible or don't believe it's worth the extra effort. We believe both of these reasons are based on flawed assumptions. It IS possible to raise standards and move a business from being ordinary to extraordinary and while it does require doing things differently, the results can be very well worth it.

For example, 10 years ago Austin, Texas-based K&N Management started working with Pal's Business Excellence Institute to raise the standards in their Rudy's Country Store and Bar-B-Q and Mighty Fine Burgers outlets. Pal's BEI is affiliated with Pal's Sudden Service, mentioned earlier. K&N co-owner Ken Schiller said, "Our sales at Rudy's and Mighty Fine Burgers are now two-and-a-half times what they were when we started the (Pal's BEI) Institute."

Having high standards isn't just for the benefit of your guests. High standards help you attract and keep a team of the best people in your area.

Good people want to work for a good company. They want to be challenged and are drawn to companies that offer the opportunity to be part of something special and where their efforts will be recognized and appreciated. Good people lose enthusiasm when the bar is set too low and they intuitively know that average doesn't lead to personal growth or job satisfaction. When you have high standards, you foster a culture of excellence that customers notice and respond by giving you loyalty in return.

When you notice more mediocrity than excellence in a business, it's because the owner, in some way, is allowing it to happen. The good news is that, in any business, the owner can also change it.

4. Story Telling Rewards & Inspires

Changing culture boils down to changing the way people think and ultimately act. Nothing gets people to change the way they act better than first changing the way they think. That's why the practice of storytelling can be so powerful and effective in changing the way people think and ultimately act.

As is common in many hotels and restaurants, the Wynn Las Vegas Hotel and Casino conducts preshift meetings in all of their departments. So before employees in the dining rooms, kitchens, bars, rooms, front desk and casino begin their shifts, they have a short meeting with their supervisor. Instead of giving them mundane or the usual preshift information, the top management at Wynn decided to train their supervisors to include storytelling in their meetings.

In every preshift meeting the supervisors ask their group, "Does anyone have a special story that they've had with a guest?" Then they facilitate the responses. Here's an example of one:

A bellman tells the bell captain about an older couple from California who arrived the day before to check in. As the bellman was loading their bags, the woman let out a hoot when she realized she had left a small hand case containing her husband's diabetes medication on the hallway table at home. Immediately she informed her husband they needed to get the bags back into the car and return home.

Overhearing this, the bellman asked where they lived and if anyone is home. The couple's home is in Pacific Palisades and their housekeeper is there. Then the bellman explains that he has a brother who lives nearby and can pick up the bag and he will personally find a way to get it to the hotel. It's 3 p.m. and the bellman asks when the husband needs the medicine. He needs it by 7 a.m. the next day.

The bellman asks the lady to tell her housekeeper that his brother will be coming by to pick up the bag later today and he'll make sure it's delivered to their room by 7 a.m. tomorrow. The couple takes a minute to think about it and they call their housekeeper. The lady then asks, "Are you sure you can do this?" The bellman assures them he can and encourages them to go have a good time and that everything is going to be fine.

The bellman explains the situation to his supervisor, jumps into his car and drives five hours to his brother's house, picks up the bag and gets back to Las Vegas at 4 a.m. He takes the bag to the bellman on duty and says make sure this bag gets to Room 1050 by 7 a.m. The bag contains medicine that must be in the room by that time.

Everybody in the preshift meeting congratulates the bellman for a great story and a job well done.

Now imagine the effect the bellman's action had on this couple. Where do you think this couple will stay on their next trip to Vegas, as well as the trips after that? And how many friends and relatives do you think this couple will tell about the over-the-top care and attention they received at the Wynn?

Wynn Resorts CEO Steve Wynn says there are a thousand stories like this a month.

To multiply the effect of the stories, Wynn has a special website area for the employees and they have a sign shop and they make signs for the back of the house. Immediately a picture is taken of the bellman in this case, his story is encapsulated in large print, they make paper signs and decorate the back of the house and publish his picture and story on the website. It's all over the employee's staff dining room and everybody is reading about this bellman who is now a local hero. He's proud and he feels great because of the recognition he's getting from his peer group. Now, everyone in the preshift meeting is looking for a story so they can tell it the next day.

Wynn says, "We found the key to making a single employee interaction with a single guest instantly gratifying and increasing of their self-esteem. Now every employee in the hotel is looking for a story." He went on to say that the results of storytelling have been astounding.

Storytelling or recognizing "hero stories," as some companies refer to them, can have a tremendously positive influence on an organization's culture because it instantly changes the way employees think and ultimately act when there's an opportunity to assist a guest. It focuses every staff member's attention on looking for ways to delight a guest so they can have a story to tell the group at their next preshift meeting. What storytelling does is recognize and communicate the type of behaviors and customer interaction you want and inspires more of it.

Incorporate storytelling or hero stories regularly into the preshift meetings of your entire crew. Start by making a big deal out of acts someone does that in some way go above the norm to benefit a customer or even help a fellow employee. What you recognize and reward will be repeated, usually in greater frequency and intensity.

Conclusion

While this article has barely scratched the surface of all the dynamics and factors that contribute to a company's culture it does highlight what can happen when leaders are intentional in creating and maintaining a purposeful and positive working environment and experience for their employees.

We believe that culture plays a dominant role in the performance and ultimate accomplishments of any organization. While much more has been written and said about culture, we hope that this article has created some awareness and insights into the effect it can have in the performance of your people and your restaurant's results. We encourage you to think deeply about the influence that your culture is having and how you might go about improving it.