Tag Archives: Erle Dardick

Erle’s Top 13 Reasons Why a Restaurant Catering Operation Fails

letstalkrestaurantcatering

Erle Dardick, CEO & Founder of the Catering Institute and MonkeyMedia Software

I was looking at some old files today and then I found this fun image that my friend Mike Tyler made for me a few years ago!  Those were from the days long before the Catering Institute!  Life is so much different today…. As the Catering Institute continues to evolve, so do I!

Today at the institute, we have successfully trained more than 2000 satisfied foodservice students using our various classes and curriculum.  We have also had tens of thousands of restaurateurs download our various resources, articles, essays and webinars.  Check out this video to see how much fun we have during our training sessions.

Much of my work these days in our software division,  MonkeyMedia Software ,is to remind and teach our team to remain true to the key principles that we have documented using the business framework of the ‘5 Pillars of Successful Restaurant Catering‘.

The way I see it, our software division has a core client responsibility.  They must use the 89 characteristics of the 5 Pillars to benchmark the operations.   (Call me at 604-831-7422 if you’d like to discuss the characteristics).  Using our scoring systems allows the group to decide as to whether or not a restaurant company is ready to implement our world class technology into restaurant operations.  We have so much experience now to know that  companies that are trying to implement sophisticated technology on top of poor business processes, are not suited for a successful implementation.  They must score high on the 89 characteristics that we have documented to succeed with software implementation.

And so of course the story goes.  It is the 89 characteristics that the Catering Institute will to continue to work on…..

And so, this leads me to today’s list of reasons why I believe off-premise programs fail.  I’m sure there are dozens more that we could add.  Here goes…..

1.  Lack of a documented takeout, delivery & catering strategy 

2.  Inability to establish standard operating procedures.  Management of off-premise business by “seat of the pants”

3.  Frequent critical incidents “putting out fires is common practice”

4.  No focus on takeout, delivery & catering as its own business unit

5.  Lack of investment

6.  Lack of  leadership and catering business experience

7.  No Separation of Menu Items between takeout and catering

8.  No differentiation in packaging between takeout and catering

9.  Too many service gaps

10.  Lack of catering authenticity

11.  Lack of management commitment to catering

12.  Lack of operational evaluation tools

13.  Inability to start entrepreneurial businesses 

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Be wary of online & mobile ordering solutions when it comes to Catering

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Alright!  This post is sure to raise a few eyebrows!

Let’s mix it up a bit today.  As we all know, Online & Mobile Ordering for restaurants is all the rage these days.  (again!).  As an industry, we suffer terribly when it comes to technology and the deployment of that technology into the operations of our restaurants.  We just don’t get it. And to make matters worse, the technology companies are using confusing marketing and messaging to further confuse everybody.

Online and Mobile ordering is just e-commerce.  It’s simple and is great for extending a transaction to the consumer, but it just won’t help you run you business better.  Not even close to better.  It has no operations based logic.

But it’s important to understand where a transaction online will impact your operations.  As restaurateurs, we must understand that catering out of our restaurants is an operations based business problem.  It’s not about just taking an order online.  It’s about how to execute that order flawlessly.  It’s about order fulfilment.  It’s not about taking the order, it’s about getting it out the door, on time, every time.  Order execution is the key to growing your catering operations, not just taking orders online.

There are hundreds of technology companies out in the marketplace that are offering online ordering.  You all know who they are.  We all see them at the trade shows.  The reason why there are so many is because taking an order online is the easy part.  There is little to no barrier to entry and so, anybody can do it.

Airlines, Floral, Books, Music, Clothing and just about every other product you can think of is now available through online ordering.

But to run a successful catering operation out of restaurants, you need a real business solution.  You need a software solution that has all of the business logic you’d expect to find in an operations based system.  Focused on order execution and fulfillment.  It’s what you do with the order that matters, not taking the order.  Clearly we have to take orders!

WARNING:  If you are going to build your catering transactions online and drive them through your POS for order execution, you are going to fail miserably as your transaction volume increases.

Today’s Online & Mobile Ordering providers will either;

1.  Send the order to a fax

2.  Send the order to an IP printer

3.  Send the order to your POS

If you attempt to scale your restaurant’s catering business using any three of the above workflows, you are doomed to fail.

And so, what should you look for?

1.  An end to end solution set that facilitates mobile & online ordering, call centre ordering, billing, accounts receivable management, raw material forecasting, delivery logs, sales team management, invoicing, statements, collection notices, distribution calendars, deposits and so many other things that they cannot all possibly be listed here.

And so, where can you find this kind of solution?  Well, I’m biased but why not call your PepsiCo Foodservice Representative and ask them if they have a catering solution? I’m sure they will point you in the right direction!

Or, just call Mo Asgari (604-215-2163) at MonkeyMedia Software and he’ll show you what you need!  If you are a PespsiCo customer, make sure you ask him about the “PepsiCo Advantage” program for preferred pricing.

Oh, and to all the online and mobile ordering guys out there, if you’d like to send your online and mobile orders to Monkey’s system so restaurants can actually grow their catering operations, just give Mo a call.  He’s happy to chat about our API.

Let’s talk catering!

 

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