Eliminate Complacency To Build A Thriving Catering Business

Complacency

Like any business, over time, a restaurant’s takeout, delivery and catering operation can grow inefficient. This is especially true if profitability has been high and cash flow is positive. When a business lacks urgency, it can suffer. Even in large multinational companies, at the divisional level, there needs to be urgency for the enterprise to thrive.

The most efficient place for a business to operate is just above break-even. If your enterprise is thriving above break even, then please don’t leave excess operating cash in your bank account. Not ever! Too much cash creates complacency in a business. If your catering operation is generating cash, then take the cash out and either reinvest it in the operations, pay down debt or simply put it away for another day. If you leave the cash in your business account, complacency will creep in. It will destroy your momentum.

When complacency sets in, your people will get tired, stressed and lose their sense of purpose. Many of the behaviors that made you successful in the earlier and hungrier days may disappear. When complacency sets in, it is time for change. And change is hard for everyone. But change is necessary to keep your business efficient.

In fact, change is essential in order to grow.  People, products, markets, customers and processes are dynamic and must change in order to adapt and grow. Nothing stays the same forever and if it does, it can easily lose its relevance and complacency will settle in. It’s just human nature.

We have all heard the terms before. Reorganize, downsize and streamline are all words that are common in business and is part of the dynamic and organic nature of an organization. And while these words are often discussed in business matters, they do serve a purpose.

My father used to tell me that every once in awhile, a person needs to get a haircut to grow healthier hair. And even more so, if your hair is getting out of control or wild, “don’t worry, it always grows back,” he said.

If your restaurant takeout, delivery and catering business is struggling, or if you just can’t seem to meet your budget expectations, I’d recommend a “haircut.” We’ve all been there, and as hard as it is, your business will grow again when you are on the other side of it. Take your operations down to the most common denominator and go from there.

Reorganize at the executive and divisional level. Downsize your expenses and personnel if necessary and streamline your operational processes. These steps are not easy, but they are important for keeping your business and your people on track. Don’t be afraid to raise your prices, renegotiate your supplies and leases and most important, reset the expectations for your team members. Yes, you can renegotiate their compensation packages. Put some urgency back into their day. It will serve them well.

Within my own organization I am sometimes reminded of my father’s words. And when that happens I quickly look to myself and my team to make sure complacency hasn’t set in. If it has, we work together to figure out how we got there and how we can move in a more positive direction. We change things. That’s what we do.

I’ve been in business for more than 30 years and I can attest to the fact that “haircuts” are needed even when we don’t think they are. My intuition usually tells me when it’s time to “shake it up.” I can promise you that I’ve always come out on the other side with a stronger sense of purpose for the business and the team members that are resilient enough to change follow along.

If you need to make a change In your restaurant’s takeout, delivery and catering operation, don’t wait until complacency creeps in. Just do it!  Your whole organization will grow just like you originally intended. Oh, and one more thing, remind everyone that it won’t be the last time because change is good and is essential to surviving in any business.

Erle’s Catering Sales Tip#345 – ABC

images

 

My team at the Catering Institute is working hard in the field today, as they do every day.  We spend all our time in restaurants helping them to grow sales and increase profits by educating them to be experts at feeding their customers where they Live, Work & Play.

One of the key elements that we get asked about every single day is how to sell more products and services in the business to business (B2B) channel.

Well, I have learned that in order to sell more off premise products and services into companies, we have to really focus on active selling.  We have to become professional selling organizations, every single day.  This is not for the light hearted.  It takes organizational resilience to really be selling at all levels of a restaurant company.

One idea that I like to focus on with all of our clients is on the “ABC’s” of selling.

Always Be Closing!

It is amazing to see how many of us experience an uptick in sales when we just start focusing on the basics of asking for business.

Here are 5 ideas that you can implement tomorrow to help you grow more sales.

1.  Ask for the order 3 times

2. Be persistent every single day.  If a prospect says no to you, it’s not that they are really saying no.  They are not buying for another reason and it is your job to find out.

3.  Know when to Cut Your Losses and Move on To Another Prospect.  This is part of the qualification process.  Are they qualified to purchase your products and services.

4.  Learn to Isolate Objections.  Make sure you ask your prospect “Besides {put objection here}, is there any other reason you won’t buy from me today?”

5.  Once Isolated, ask the Prospect, “If {put objection here} was not an issue, would you buy then?  Then solve for their objection.

Let’s sell more catering together!

 

For Restaurant Catering To Succeed, We need Executive Alignment

 

Let’s Talk Catering!

imagesHere at the Catering Institute and MonkeyMedia Software, we work with the most amazing restaurant companies in America.  I am always dissecting new ways of doing things, and always looking at ways of how to make catering work in restaurants.  After all, a restaurant is a complex manufacturing plant!  Adding more revenue channels is complicated.

The single most important lesson I have learned is that we need executive alignment to make catering work inside these complex operations.  It requires commitment.

So, here are 5 things to think about as you consider growing catering sales.

1.  Slow Down – We have to take the time to understand the 360 degree strategy of takeout, delivery and catering.  They are all closely related.  They are interdependent on each other.

2.  Plan – We have to take the time to make a proper plan.  We ALL need to do a better job at that.  Planning is hard for everyone.

3.  Menu Differentiation – We need to focus on markets.  The market for these services is different from our current restaurant products and services.

4.  Sales – We have to become very active in our selling process.  It needs to become part of our culture at all touch points of our companies.

5.  Patience – All great things take time.  Growing catering out of our restaurants is a major commitment and it will take investment and time.

Of course, I could make a list of a hundred more ideas… just call me at 604-831-7422 if you want to chat more.

I am living and breathing this material all day long!

Restaurant Catering: An industry commitment

For the last 16 years as CEO at MonkeyMedia Software and the MMS Catering Institute, I have been hyper-focused on a single transformative idea. Catering out of restaurants.

I am proud to say that today, we support more than 5000 restaurants with our restaurant catering software and our consulting/education services.

I have always maintained, that the more our industry commits to this business strategy, the more we will get consumers to spend more money with us.

To demonstrate commitment, look at the high quality of the videos below. Each is specific and speaks highly to the commitment our industry is making to restaurant catering.

To grow restaurant catering sales you need a plan

At the MMS Catering Institute we help our clients to build their business plans for growing catering sales out of their restaurants.  You can’t expect real results without a solid and well thought out roadmap.

It’s basic business.  Don’t just take my word for it, listen to the catering kid in the video below.

Let’s talk catering!

Think “Carpe Diem: Seize the Day” when it comes to catering!

Carpe Diem - Seize The Day

When I was a kid in Montreal, Canada I used to walk around the block knocking on doors and ask to shovel sidewalks and driveways to make a few quarters. On one occasion, I actually shovelled the snow on my neighbours walkway before I knocked on the door.  Luckily, I got paid anyways!  Not bad considering I was only 10 years old at the time.

In 1734, Richard Cantillon defined entrepreneurs as “non-fixed income earners who pay known costs of production but earn uncertain incomes”.   I mention this because shoveling snow in those days, was the beginning of when I got the buzz of providing services for an uncertain reward.

And while an element of risk is a fundamental part of entrepreneurism, I believe that the true essence of being an entrepreneur is carpe diem.

Carpe diem, to seize the day, is an old Latin saying that is commonly used in English and is a very important aspect of all business. In business, windows of opportunity rarely stay open for long so every second counts.

At MonkeyMedia Software and the MMS Catering Institute we do our best to take hold of every moment because we know that you can never get back wasted time.

Catering is the restaurant industry’s equivalent of carpe diem because, very much like a certain young kid walking around shoveling driveways, it brings our services directly to the customer.

When you wake tomorrow, think carpe diem when it comes to catering out of your restaurants!

Travelin’ Brand by Sam Smith – Good Article about Restaurant Catering

Increase Catering Sales

The article “Travelin’ Brand” in the February Issue of Restaurant Business is very thoughtful.  As I have been pursuing the restaurant catering conversation for the last 16 years, I find it very refreshing to see other writers covering the subject matter.

So many of our customers and friends at MonkeyMedia Software and The MMS Catering Institute ask about the “size of the prize”.  While I am not convinced that the numbers presented in the article are perfectly defined, I think it is a great step towards helping our restaurant community understand the subtleties of the marketplace.

The following link will provide you with digital access to the article which begins on Page 47.

http://digitaledition.qwinc.com/publication/?i=194650

Great Job Sam Smith and kudos to Restaurant Business Magazine for providing coverage on such an important topic.