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[Rick Braa]Engineer your business
Acclaimed restaurant consultant Rick Braa took the time to host a comprehensive webinar on financial strategies and tips to make use of during the coronavirus crisis. In part three of this webinar, he went over one of the toughest challenges in the new normal — engineering your business for success.
“Engineering your business means make your business break even or better,” Braa said. “That is a very lofty task when you have got declining sales of 30% to 70%. If your cash flow … before you pay rent is negative, it’s better to remain closed. If you don’t have any PPP money, it is better to remain closed until sales turn around. If you are losing money before you pay the rent and have to pay rent on top, that’s just going to be compounded.”
In short, if there is no realistic way to recoup losses from diminished sales, staying shut down until sales resume is the safest bet.
However, businesses have prevailed in hard times before — Braa said that during the 2008 recession there was talk of companies dying out. But “smart companies” found four key areas to work on in order to turn this around. These areas are the product, the service, the facility and the systems therein.
Working on the product can include things like engineering your menu and consolidating products to a minimum.
“Sell things you make money on,” Braa said. “We’re really in that spot where we need to be taking margin over percentage, because that will offset on the labor side.”
Make sure everything you have offers value on the product side. Anyone who purchased their products, you want them to come back.
Restaurants are losing market share to grocery stores. Whatever you are offering as a restaurant, it’s known to be more expensive than the grocery store. Make sure, Braa said, you’re always offering value.
The key to excellent service during this pandemic is flawlessness execution. Not only should your business be flawlessly executing its service, but you should hold your third-party delivery partners to the same standard and keep people accountable. Every interaction between guests and your operation should serve to create an experience. If you offer outdoor dining, make sure it’s the absolute best outdoor dining it can be. The quality of your brand should be clearly reflected.
“It has never been more important to let the guest have the experience in their own hands,” Braa said. “It’s never been more important to give the guest the opportunity to have the experience in their own hands by being fast. If they are ordering online or through takeaway, make sure they can get it very quickly.”
You can’t keep customers waiting.
“If you need to staff a little heavier to get product out, do that,” Braa said.
Be aware of the realities of outdoor seating and government mandates regulating it — the governor defines currently outdoor seating as consisting of at maximum two walls. Unless that is changed, you’ll want to offset that as you design outdoor seating to accommodate for inclement weather.
The current restrictions already limit how much dining space you can allot to your guests. Make sure you’re making use of the unused space to improve other aspects of your operation, like expanding the kitchen real estate or creating an area to aid in takeout and delivery operations.
Air purification is of high concern to customers today and in the future. This can be a great marketing area as the industry is battered by concerns and bad publicity about spreading the disease — you can clear some of this negativity by making sure you have nice, clean air.
Another investment, though they can be costly, are more advanced temperature scanning technologies. Braa noted that there are times when you have kitchen staff or prep staff who come in before even the managers do. They may work multiple jobs and they may be vectors of disease. You want to make sure they get temperature-checked, and there are technologies that will allow them to self-check-in, but they are not cheap, starting at about a $1500 investment.
Braa acknowledges the challenge of the cost, but it’s a cheaper outcome than being shut down for a day or much longer.
Cleanliness remains as critical as it ever has been. Braa also urges you consider the street appeal and how your restaurant looks both inside and out.
Braa details some internal systems that you can engineer to help your operation succeed. One example is your reservation system; Braa said that most operations benefit from having the ability for guests to reserve seating online. However, some reservation systems reserve ownership of the reservation data — this will be detrimental should you ever wish to change systems, so make sure that you work with your reservation system provider so that you own all the data you receive.
Make sure your financial systems are in similarly great working order, Braa said. You need good information coming to you every week and every pay period. Marketing and messaging are important, and communications systems are “the key to the future” according to Braa. Creating marketable videos about food or meal kit creation, showcasing the cleanliness of your facility can make sure you are on top of your communications systems.
Lastly, Braa emphasized the importance of your tech stack — computers, information technology areas, these should be sharpened up and renewed. Make sure you have the right tools and you know how they’re used.
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- Tacoma Pierce County Health offers some extensions, refunds or waives late fees
- Thurston County Extends Food Establishment Permit Expiration Dates by Six Months
- Pierce County approves $10,000 grants for 'Main Street' businesses
- Contact tracing in King County
- Property tax due at the end of October
- SeaTac Increases 2021 Minimum Wage to $16.57 an Hour
- [WIN] Snohomish County Board of Health Rethinks Fee Increase
- WIN! Pierce County Creates $7.5 Million Program to Help Restaurants
- 2021 minimum wage rate increases
- Safe Start for Taverns and Restaurants (SSTAR) Formally Launches in King County Aug 3
- $10 million in grant funding available to Spokane County small businesses
- Free PPE for Spokane County small businesses
- King County Moves to Phase 2--Effective Immediately
- Seattle City Council Passes Hazard Pay Fees for Third-Party Delivery Drivers During Pandemic
- King County Applies to Enter Phase 2
- King County issues more guidance on adding outdoor seating and best practices.
- Spokane County property tax deadline extended to Aug. 1
- Spokane County small businesses will soon have access to free PPE
- King County to apply for Phase 1.5 to allow outdoor dining at 50% capacity
- Spokane City Council paves easier path to sidewalk cafés and streateries
- Spokane launches county-wide financial help hotline
- How You Can Help: Restaurants Supporting Medical Responders
- Seattle: Keep Workers Healthy and Safe Fund is now live
- City of Spokane announces moratorium on evictions and foreclosures
- Update: March 23, 2020
- Spokane COVID-19 Business Resources
- Greater Spokane COVID-19 Updates
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- Indoor dining, bowling and other restrictions extended until Jan. 11
- Governor announces three more weeks of restrictions
- AG Ferguson issues new guidance for third-party delivery companies
- Governor announces $135 million stimulus package
- Inslee announces cap on third-party delivery fees
- Outdoor seating requirements for restaurants, taverns, wineries and distilleries
- New restrictions on restaurants and businesses announced; relief packages in development
- Health department flow chart for coronavirus testing, quarantine
- [Breaking News] Phase 1 counties now moved to Phase 2
- Eviction moratorium extended to the end of the year
- Hotel pools can now reopen in Phase 2
- [Breaking News] Restrictions lightened on dining, alcohol sales and pools
- New guidance allows business events to resume
- Inslee updates guidance for weddings and funerals
- [Federal Guidelines] Opening Up America Again, 4.16.20
- Washington State Coronavirus Response Page
- State ordered closures
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- Governor announces $100 million plan for business support, unemployment insurance rate reduction
- [WIN!] 2021 per diem rates for government travel, 8.14.20
- [Official] Overview of statewide mask order
- COVID-19 is on a path to runaway growth in Washington state, 7.17.20
- Inslee extends eviction moratorium, 6.2.20
- Washington, Oregon and California announce Western States pact, 4.13.20
- Gov. Inslee extends WA school closure through end of school year
- Help medical professionals and first responders get personal protective equipment
- Inslee letter to Trump requests federal major disaster declaration
- Inslee statement on potential national emergency declaration, 3.13.20
- Declarations FAQ
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- Spokane County Assessor’s Office delays notices to property owners
- Spokane City Council paves easier path to sidewalk cafés and streateries
- King County Public Health Cloth Face Covering Directive
- Seattle Executive Order to Extend Moratorium on Residential, Non-Profit and Small Business Evictions
- Seattle Third Party Delivery Cap Emergency Order
- Seattle Paid Sick & Safe Time Emergency Rule
- Seattle King County Public Health Quarantine Directive and Isolation Order
- City of Spokane announces moratorium on evictions and foreclosures
- Update: March 23, 2020
- Coronavirus updates for King County members
- Seattle Mayoral Moratorium on Small Business Tenant Evictions
- Seattle King County Public Health Local Health Officer Order
- Seattle Mayoral Proclamation of Civil Emergency
- Snohomish County has issued a restriction on events with fewer than 250 attendees
- Seattle and King county have additionally prohibited gatherings of 249 persons or fewer, unless precautions are met
- Thurston County issues ban on large gatherings of 250+ people
- Spokane Regional Health District has banned all events and gatherings of more than 250 people for the next 30 days
- Seattle and King County ordered closures
- King County Local Health Officer order
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- [FAQ] Fitness centers, 8.10.20
- Lodging members: Fitness center clarification, 8.10.20
- Lodging members: New updates for Phase 2 & 3 fitness centers
- [Official update] Taverns, breweries, wineries and distilleries can now serve indoors
- Memo on high-risk worker proclamation, 7.29.20
- [Outdated] Starting July 30: Big changes for taverns, breweries, wineries and distilleries
- [Official memo] Safe Start Changes, 7.28.20
- Statement on statewide face covering order expansion, 7.25.20
- Inslee extends Safe Start proclamation, eviction moratorium, 7.24.20
- Phase 2 and Phase 3 restaurant, tavern, breweries, wineries and distilleries COVID-19 requirements, 7.24.20
- [In detail] Modifications for weddings and funerals, restaurants, bars, fitness and entertainment centers, 7.23.20
- Inslee announces rollbacks to some activities to slow COVID-19 exposure, 7.23.20
- [Breaking news] WA state tightens hospitality business restrictions
- Inslee extends proclamations related to COVID-19 (including SharedWork), 7.16.20
- [Governor's Blog] Inslee announces steps to address COVID-19 spread, 7.16.20
- Inslee announces steps to address COVID-19 spread, 7.16.20
- [Updated Oct. 14] Governor extends no mask, no service statewide, rolls back Phase 3 bar seating and hits pause on phase advancement.
- How to encourage customers to mask up
- Governor's Amended Proclamation To Safe Start Plan
- Secretary of Health Order on Statewide Face Coverings
- Inslee announces statewide mask mandate, 6.23.20
- Governor issues statewide mask order
- Inslee extends 23 proclamations relating to coronavirus, 6.18.20
- [Golf] State issues Phase 1 updates, Phase 2 requirements
- Inslee announces contact tracing initiative, 5.12.20
- [OFFICIAL] Phase 2 restaurant & tavern reopening requirements
- [Who is approved?] Faster reopening for smaller, coronavirus-free counties
- Five Washington counties approved for early move to next phase of reopening, 5.8.20
- Governor extends ratepayer assistance and DOR, LCB relief from payments, fees until May 31, 2020
- Governor extends 12 proclamations until May 31
- Inslee signs new COVID-19 order for phased re-opening of Washington's economy, 5.4.20
- Inslee signs new COVID-19 order for phased re-opening of Washington’s economy, 5.4.20
- [Chart] Washington's Phased Approach, 5.1.20
- We're up next: Governor lays out 4-phase plan to reopen
- Inslee announces easing of outdoor restrictions, 4.27.20
- Golf courses: Ready, set, reopen May 5 - How to prepare
- Inslee expands eviction moratorium, adds protections for residential, some commercial tenants - 4.16.20
- Governor issues order to protect high-risk employees, 4.13.20
- Protecting high-risk employees: Workers’ rights, 4.13.20
- Temporary moratorium: Garnishments and accrual of interest, 4.14.20
- Gov. Inslee extends WA school closure through end of school year
- Inslee extends Stay Home, Stay Healthy Order through May 4, 4.2.20
- Governor extends stay-home order through May 4
- Inslee on statewide shutdown of restaurants, bars, gatherings to protect against coronavirus, 3.15.20
- Inslee announces statewide school closures, expansion of limits on large gatherings, 3.13.20
- Inslee issues emergency proclamation that limits large events to minimize public health risk during coronavirus, 3.11.20
- Inslee issues coronavirus emergency proclamation, 2.29.20
- Stay at Home, Stay Healthy Order March 23, 2020
- Essential Critical Infrastructure Workers defined
- Gov. Inslee: Stay Home, Stay Healthy -- for at least two weeks
- Governor’s complete statement
- Gov. Inslee’s full press conference with King County Executive Dow Constantine
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- Washington state adopting new CDC quarantine guidelines.
- [Webinar Recap] Free testing locations
- Contact tracing in King County
- [Webinar recap] Best practices for employee coronavirus screening?
- What distinguishes flu from coronavirus?
- Health department flow chart for coronavirus testing, quarantine
- Pierce County Mobile Testing Unit
- New CDC interim guidelines for essential services workers who may have been exposed to the coronavirus
- Social distancing is critical to containing the spread
- Coronavirus Fact Sheets
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- Can the government issue a closure of restaurants?
- Will grocery store deli's still going to be allowed to serve?
- How do I ensure my employees are well and can safely work?
- Health Dept. FAQ
- Reducing food waste during temporary closures
- What do I do if my employee has coronavirus?
- What should we do if our business is impacted by coronavirus?
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- Secretary of Health Order on Statewide Face Coverings
- DOH, DOR guidelines for selling grocery and pantry items during the Stay Home, Stay Healthy Order
- Concerned about Legionnaires' disease? DOH offers guidelines for restarting water systems that have been shut down for coronavirus
- What do I do if my employee has coronavirus?
- Washington State Department of Health issues specific guidance for food workers and establishments
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- [NEW] Complete list of LCB guidelines for license holders
- LCB guidance for adding or extending outside liquor service
- Liquor and Cannabis Board says YES to cocktails
- Restaurants: What to do with your leftover beer
- What delivering spirits, beer and wine really means for your business
- LCB -- temporary expansion of curbside liquor service to accompany 'to-go' food sales
- Returns of Alcohol Product
- Beer/Wine delivery rules (LCB guidance)
- Liquor and Cannabis Board: Help for Licensees During COVID-19 Restrictions
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- Dine-Out (DO) Washington: Digital Take-Out Dining Guide
- [Webinar Recap] Masks and Social Distancing
- [Webinar recap] Best practices for employee coronavirus screening?
- [Rick Braa] PPP coverage periods -- how they work and what you need to know
- [Rick Braa] Essential Strategic Decisions
- [Rick Braa] Outsource non-operations
- [Rick Braa] Delivery and pickup service
- [Rick Braa] Fundamental Routines
- [Rick Braa]Plan and Forecast
- [Rick Braa]Engineer your business
- [Rick Braa] Negotiating Agreements
- [Rick Braa] Use all available government programs
- [Legal guidance] 5-step action plan for handling anti-mask guests
- Creating QR codes is an easy and free way to reach restaurant customers
- Best practices for hotels during coronavirus
- Concerned about Legionnaires' disease? DOH offers guidelines for restarting water systems that have been shut down for coronavirus
- Department of Labor and Industry Division of Occupational Safety and Health Letters
- Washington restaurant shutdown checklist
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- [Rick Braa] Fundamental Routines
- [Rick Braa]Plan and Forecast
- [Rick Braa]Engineer your business
- Tips for cleaning POS equipment
- Safe Start for Taverns and Restaurants (SSTAR) Formally Launches in King County Aug 3
- Decision Tree For Teams Who May Have Been Exposed to Coronavirus
- [Updated Oct. 14] Governor extends no mask, no service statewide, rolls back Phase 3 bar seating and hits pause on phase advancement.
- Coronavirus basics -- sanitation, staffing and more
- FDA announces best practices for food establishments
- How to optimize your delivery and take-out operations
- Ready for delivery? Avoid driver insurance pitfalls, 4.2.20
- How restaurants can preserve cash to weather the coronavirus outbreak
- OSHA guidance on employee and workplace safety during coronavirus
- Cleaning and disinfecting guidance for hospitality
- No-contact delivery visual guide
- Hands-free hospitality: How to make no-contact delivery part of your business model
- Small Business Development Center business survival strategies
- Adapting amid coronavirus: Important aspects of takeout business
- Get Ready to Deliver
- Social Distancing: What it means and what you should do
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- [Toolkit] How to set up outdoor seating (Open Air Guidance)
- Tips for cleaning POS equipment
- [Outdated] Starting July 30: Big changes for taverns, breweries, wineries and distilleries
- Sysco Coronavirus Resources
- [Updated Oct. 14] Governor extends no mask, no service statewide, rolls back Phase 3 bar seating and hits pause on phase advancement.
- Zero Cost Marketing Resources
- Restaurants: Use the crisis as a business reset
- Business insurance claims and grace periods during the coronavirus outbreak, 4.1.20
- OSHA guidance on employee and workplace safety during coronavirus
- Cleaning and disinfecting guidance for hospitality
- New guidance to auto insurers about covering delivery services
- Free ServSafe classes for safe takeout and delivery
- Does the Association have a standard letter to communicate to staff what COVID-19 is and why we might need to close?
- Staying in business: Coronavirus checklist
- [Webinar recap] Small business relief loans, survival strategies and more
- Social distancing is critical to containing the spread
- Small Business Development Center business survival strategies
- Some small businesses and residential renters to get relief
- Washington restaurant shutdown checklist
- Reducing food waste during temporary closures
- Show all articles ( 5 ) Collapse Articles
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- Videos -Advisory Network Podcast: Buying or Selling Other Q&A’s
- [FAQ] Should my employees wear masks? 4.6.20
- What if anything do I need to do for my employees so that they can travel to work?
- Does the Association have a standard letter to communicate to staff what COVID-19 is and why we might need to close?
- Small Business Development Center business survival strategies
- Should hotels shut down the complimentary breakfast area?
- Can my landlord still demand rent from me if I'm forced to close?
- Operations FAQ
- Should we adjust our cancellation policies?
- How can we communicate with customers?
- What should I be doing in my business?
- What if I temporarily close?