Tuesday, October 25, 2016

The Fifth P - The importance of people in successful restaurant operations


           Restaurants are people driven.   The customers are people and being a service business the restaurant employees are a critical component of making the restaurant experience a good one .    Think about it , if restaurant has 100,000 customers visits in a year there,  there are several employees that influence the quality of  each visit .  These can be direct interaction such as the server or order taker or food quality impact such as the cook or chef .  Furthermore , others impact the dining experience in areas like cleaning , maintenance , food prep ,  clearing tables, valet parking, taking out garbage , executing social media strategy , or how well the manager schedules staffing for a particular shift .   If there are 10 people directly or indirectly influencing the dining experience of those 100,000  then theoretically there are at least one million potential influence or interaction points .  
         A lot of traditional marketing text books and terminology focus on the Four P’s  . These Four P’s are Product , Price , Place or Placement, and Promotion .   I submit that in the restaurant business perhaps more than any other industry there is the Fifth P and by that I mean People .   Additionally, social media has changed the way and frequency with which consumers communicate their dining experiences . Successful restaurateurs know this and that includes some great local examples .   While effective human resource management involves many aspects including planning, selection,  interviewing , training, retention , labor scheduling methodologies ( including software ) , base compensation, incentives ,  the component that binds or is the “glue” to all this is the enterprise “culture” .    Effective enterprise culture sets expectations,  helps define what type of person is a fit for the organization ,  facilitates teamwork ,  and helps employees make decision when faced with a new situation or grey area .           
           The restaurant business is as much a people business as it is a food business .  That why People are “The Fifth P “ .           
                                                                


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