Restaurant Alley

Why is health care such a pain?

Like any small business owner, I have to worry about health care for my employees.

I'd call us a mobile company (virtual company makes it sound like we don't really exist) as we have employees in different states and everyone works from home most of the time. So our first problem with health care is that there is no one size fits all since insurance plans are for a single state.

Our second problem is we're tiny. Up until a few weeks ago we had a company that was "handling" our health insurance. We paid them a small monthly fee for them to fix any issues that may come up. Well, they've done everything from ignoring our calls and emails to not canceling an old policy costing us over a thousand dollars. We were too small for them to care about our business. Not sure why it took me so long to fire them, but fortunately, they're not getting our money anymore.

The third problem is that it's complicated. I don't have a full-time HR person to worry about it, so it falls on me to handle the calls from unhappy employees and try to fix their insurance issues when I really need to be leading the company.

I know our representatives are working hard in Washington DC to "fix" our health care system, but I was definitely disheartened to see their solution to simplify things is 2,000 pages long.

Are you a social media slave?

Miley Cyrus left Twitter because she felt like a social media slave and I certainly felt like one last week as my to do list kept bugging me that I haven't blogged in a while.

No one ever said it was easy to do this social media thing, but I think it's especially challenging for businesses. I try to blog once a week. If I have ideas during the week, I just pop them into a folder and then when "blogging time" comes, I pick one. This is great when life is normal, however, any business owner can tell you that life is full of one emergency after another and it can be tough to get back into a routine when the dust settles.

So when my dust recently settled, and it came time to write a new blog post, I had nothing to say. A few days pass and then a few more and still nothing to say. How can I be out there encouraging other businesses to take up a social media strategy and not be doing it myself? Some would say, just write anything, but I'd rather be silent than inauthentic.

There's a sense of obligation that develops when you start blogging or tweeting. That you are on this ride and you can't get off. I had a few days with these feelings, but then the lightbulb came back on.

Social media is supposed to be social! It's about listening!

I had lost sight of what this was all for. It's not about what I have to say, but it's about what I'm hearing. It's a conversation, and you can't have a conversation without listening. It's such a simple point, but it makes all the difference.

For any slaves out there that feel stuck, remind yourself that social media is a two way street. The only pressure you should feel, is the pressure to listen to your customers (which you should be doing anyway). Once you refocus on that, the rest should fall into place.

Where Oh Where is my Vendor?

My mother would tell me to not blog angry, but I am going to. We are working on integrating a few additional POS systems and it is a difficult process. One POS company in particular has a client waiting to use our product with their POS system and no one is being very helpful for them or for us regarding the integration.

As a business owner, I don't understand why someone wouldn't communicate with their client. If you can't help, then tell them that, but don't ignore them. Anyone building a POS system has to know that the data will need to come out at some point for accounting or payroll at the very least. Does it really need to be difficult and clumsy? I guess we need a web 2.0 style POS product. I imagine it would not only look good, but be easy to use, and of course be easy to integrate with. And if I had any complaints I would just tweet them :)

Why I love the Shake Shack

I have been a fan of Danny Meyer's Shake Shack for many years. First of all, it's delicious, but beyond that it's simplicity perfected. It's an excellent example of philosophy "do one thing and do it well".

It's a well oiled machine. Customers wait in long, but fast moving lines, as a well-choreographed staff make their burger stand hum.

It's the perfect blend of great food and great service.

Doing the "right" thing (and getting fired for it)

Operating a business is challenging. I've managed software companies and restaurants and there was never a shortage of difficult decisions to make. I want to share a story about a choice I made, how it cost me my job, and how I was rewarded for it.

I was managing a restaurant near Rockefeller Center in New York City many years ago. It was the first week of December and business was crazy (as it always is that time of year). The owner came in to visit and dropped a bombshell on me. He decided that he wanted to be open for Christmas eve & day.

First, I have worked lots of Christmases at other restaurants in the past, but it was always busy and we knew going in that we had to work. In this scenario, Rockefeller Center is dead on Christmas so there's barely any money to be made, and it's three weeks before Christmas and the staff had already made plans.

I expressed to the owner as politely as possible that we would barely break even for the day and that even if we made some money, it would devastate the staff to force them to work after they had already planned their holiday.

His reply was that it was his restaurant and he is in the business of making money and if he wants to be open, we'll be open.

I calmly said that I disagreed with his decision and would be unable to schedule the staff for Christmas. He asked me if I was refusing to do my job. I answered, "if that's how you see it, then I guess I am."

He held out his hand and said, "I guess you're done then. Take care." I picked up my things and left the restaurant. I was fired.

Others may disagree with my actions, but I felt like it was the right thing to do. I'm no crusader, I've certainly stood by on many occasion and said nothing when I felt that something wasn't right. But since that moment, it's been much easier to speak up when I felt I needed to.

I think we all have this little voice inside of us telling us the right thing to do. Sometimes we listen, sometimes we don't. When it comes to "making money", it can become harder to hear that voice. However, I have found that the world has a way of rewarding companies and people that try to make the "right" choices.

Of course the story has a happy ending. The staff heard about what I had done and I suddenly had 50 best friends. The owner decided not to open for Christmas (never found out why, but I'd like to think that I played a part). I quickly got a job at another restaurant where I made more money, had more fun, and the best part is... I met my wife.

Where do parents take their kids to eat?

USA Today published an article yesterday about how IHOP and other restaurants are trying to lure in parents by letting kids eat free. Now this is not a discussion about the power of free. It's just a look at dining from a parent's perspective.

I have a very vivid memory about one particular lunch in Manhattan two years ago. My wife and my two young daughters (ages 1 & 5) went to one of our favorite Indian places in midtown. As we walked in, the other diners looked at us as if we had the plague. I get it. No one wants a bunch of kids creating a disturbance during their lunch hour, but the issue I had is that this attitude was also on display from the waitstaff and management. They never even gave us a chance. What if my kids were well-behaved and quiet? (Which they were.)

Well I got the message that we were not welcome there and have not returned with or without my family.

That's obviously the extreme. The typical experience is often indifference, but let me point out another experience we had. We ate at another Indian restaurant in upper Manhattan (I guess we eat a lot of Indian food). We had one child at the time. She was about one year old and a little fussy and I think our waiter sensed that my wife and I were a little stressed out. He started to play with our daughter and then offered to pick her up. She gladly went with him and he and the rest of the staff entertained her for about 10 minutes while my wife and I ate a peaceful meal. It was only 10 minutes, but it felt like an hour. Needless to say, I left a very good tip.

We have told that story dozens of times to other people in the neighborhood and went back to that restaurant any chance we got.

The point is that eating out with your kids can be difficult and stressful and if there's a restaurant that is a little nicer to my kids or has some crayons to throw at them they will get my business almost every time. 

In these economic times, it makes sense that some companies are letting kids eat free. How much does a grilled cheese sandwich cost to make anyway? Not only do they get the parents for a meal, but they have a chance to create some loyalty and get them back for more.

I've worked at "nice" restaurants that did not cater to children and always tried to make them feel welcome when they came, because it's just another chance to delight a guest, and I know if I have a delighted child, I definitely have two delighted parents.

Is Pizza Hut's iPhone app a success?

The Pizza Hut iPhone app has been downloaded over 100,000 times. What does this mean for them? How will it affect their sales? How do I get an app for my restaurant? These are the questions that come to mind.

Well first things first. It's a great looking app. The design team that put it together did an excellent job. It's sexy, fun, and functional.

So what does a great looking app get you? Well, it gets you 100,000 downloads. The ease of adding an app to your iPhone means there is no time or effort barrier. So once the social media crowd starts chirping about this cool new app, everyone wants to check it out. Then they show their friends, and then their friends have to get it, and so on until the idea is "so two weeks ago", then they move on to the next new thing.

However, the effects from taking a quick ride on the social media popularity train can be lasting. First of all you have brand exposure. People that haven't thought about Pizza Hut in years are suddenly showing their friends this fun new app they found. Secondly, the quality of the look and feel says something about the brand message. Perhaps getting someone to "try them again." But they will have to execute well to keep them.

So will any iPhone app work? I don't think so. I'm skeptical about the success of the Burger King app that was released a few months ago. The biggest issue I see there is that I can't see someone ordering fast food from their phone when it's probably faster to go through the drive up window, but I do think that they could see success with something else that isn't about ordering food.

I look forward to seeing the sales numbers for July and August. It will be interesting to compare iPhone orders to overall sales. While I think there will be some bump in the iPhone channel directly, I think the "brand buzz" will elevate all sales.

The Johnny Rockets Talent Show

In an effort of full disclosure, I will admit that I love to eat at Johnny Rockets and I used to be a Broadway wannabe.

I was very intrigued by the new Johnny Rockets campaign. They are partnering with the studio behind the new "Fame" movie and promoting a talent contest called "FAME National Talent Search." They are encouraging their guests to show their talents either at contests in Six Flags theme parks, or guests can submit videos on myspace.

I like this new campaign for a few reasons:

1. It pairs food with entertainment - Some of my best meals have only been heightened by the music playing. From burger joints to steak houses, the ambiance created through thoughtful music, decor, menu design, and food presentation makes a memorable impression when done right. Food at any level can be creative and artistic and is made even better by pairing it with other artists.
2. It fits their brand - For any unfortunate souls that haven't experienced Johnny Rockets, it's a 50's style malt shop with burgers and fries. To me that says Americana. And like it or not, America has been devouring talent shows like American Idol, America's Got Talent, and So You Think You Can Dance for several years now. We like to watch the underdog with a dream have a chance to rise to stardom.
3. It's unique - Now there's nothing unique about a restaurant franchise partnering with a film studio, but this partnership is certainly different. I suspect that they hope to use social media to bring together a community to help judge the talent. While it's not a campaign to bring people in the door per se, I do think it's a great way to insert their brand into new conversations online and elsewhere.

Time will tell if this is successful, but I have a hunch it will work out well for them.

Restaurant Menu Clichés

Here is a fun article on some popular phrases used in describing items on restaurant menus. Things like "world famous" and "garden fresh" are certainly overused are good examples of "me too" marketing.

Instead of coming up with more interesting, creative, or honest descriptions for their items, they just take a trip to the well of clichés that can be found on any other restaurant menu.

Any business can fall into this trap, but it's important to distinguish your brand from everyone else. Dare to be different as they say.

Does anyone choose to visit a restaurant after seeing an ad stating that the food is "grilled to perfection" or that they serve "world famous" chicken?

Now tell me that you serve enough chicken every month to fill a football field or ship takeout across the country and I'm interested.

RE: The Internet devalues everything it touches . . .

I just read a very thought provoking article entitled "The Internet devalues everything it touches"

After I first read it, I started to wonder what I was devaluing by using the Internet to help restaurants save money. Am I putting people out of work or reducing the value of alternatives?

If I take a step back, I think the Internet is the same as any technology. Did robots devalue the earning potential of an assembly line worker? What about the steno pool? Rooms full of typists were instantly devalued by the introduction of the photo copier.

It's a cycle, a new technology comes along and introduces new efficiencies, disrupts the market, then as the market gets saturated with the new tech, you have commoditization. Then repeat.

The Internet was a new technology, but it is also an enabling technology, like a microprocessor, or the ability to make steel. These foundation technologies (for lack of a better term), are disruptive, but also have amazing longevity as they are building blocks for the next great new innovations.

So while it may feel like everything around us is getting devalued by the Internet, we have to step back and see it for what it really is... a cycle. There will be another one coming. Green tech anyone?