How to Navigate the Endless Supply of New Providers

This is to my operator friends.

As an operator, we are constantly being asked to take time for a new sales pitch. A tech product that promises to “change the game”, a consultant that has a new approach, a marketing firm making guarantees, and so many more.

Let’s make this simple, you don’t have time for every pitch, and you are right that most of this stuff will not be helpful when you count in the time and expense of activation.

So, are you to trust your intuition? YES. And should you distrust everything that comes your way? NO.

Being selective with outside help starts with understanding your problems. Not easy to do, I know. We are in the weeds man. But getting a sense of what is wrong with your business is not hard to do (just look at the numbers), and finding solutions to your problems can be intuitive. Between marketing, inventory, labor, suppliers, operations and management, there are issues that are visible to you. And if they are not, then overall visibility/health of business is something you need to be addressing.

Working back from what is irking you is a great way to hone in on solutions. Once you have an idea which way you want to go, do your research on LinkedIn to find people/products that are speaking your language.

You got this.

IS a contract necessary?

Why do people sign a contract and then do whatever?

This is a question that I get a lot. What’s the purpose of going through the time-consuming and expensive process of getting a contract signed, only to watch the other party do whatever they want anyway?

Short Answer - this is binding and you can enforce it. 

There is just no way to get around a signed contract. It is enforceable! This brings initial negotiations into focus to make sure you have the best deal in front of you, but after all is said and done, the parties to a signed contract must follow the terms. If the terms of a signed deal are not followed, the aggrieved party can sue (or threaten to sue) to require the other party to do their part. 

What does this mean practically?

Practically, this means two things:

1. Negotiate a good deal from the outset. Get a good lawyer to make sure nothing important is missed. 

2. Keep a brief synopsis of the contract you signed to make sure both parties are doing what is required. Either party can remind the other of their obligations.

What if one or both parties just do whatever and not follow the contract?

This can get complicated. If a party allows another to do things contrary to the contract, there is a chance that these actions amount to a literal change to the terms of the agreement. While you don’t have to “police” the other party, if you are aware of a change in behavior you should make your objection known. 

Know this - a written and signed contract is far better than an oral one! Just make sure you know your roles & responsibilities and the other party’s as well. The point of a contract is CLARITY. 

is this good for the customer?

This is to my founder friends.

There is a growing list of companies that offer innovative solutions to restaurant groups, but seem to miss the point of who the end customer is. While a new exciting solution may be intriguing to investors and the restaurant groups that would be paying for it, the end product must be friendly to restaurant goers (the real end user) or else it’s deeply flawed.

In hospitality, tech-based efficiencies offer immediate and foreseeable savings. The kind of things investors love – because it’s “sellable”. The problem is that once efficiencies are enabled, diners hate them and sales slump.

So, please please, when ideating for the new FoodTech startup, talk to diners as well as restaurant groups. If you see that there is resistance to a new method, find a better way.

Tech Versus Food

Is there a conflict between FoodTech and Food?

When I owned Redwood, I would see many technological opportunities presented to me via sales efforts. That’s me getting sales pitch after sales pitch for foodtech products. We see these products and sometimes test them out and buy them. Tech stack purchases are very difficult at best. At worst they are a lot of work to implement and then an expensive waste of time to use. 

This creates owners that are wary of new technologies, and downright hostile to tech solutions that are perceived as coming from the tech world instead of the restaurant world. The problem is that owners are missing out on great solutions, and tech salespeople are missing out on sales.

The proper solution is to require foodtech folks to work in a restaurant, right? Right?

Okay I wish, but let’s be practical. 

To bridge the disconnect between tech and food, both sides need to lean into the other’s issues. Consultative sales is the best sales. And you can’t be consultative without knowing the plight of your customer. While working at a restaurant may not be practical (I still recommend it!), tech people should at least spend time seeing a restaurant operation through the eyes of your client. This would allow the restaurant owner to see that you have empathy for their tough situation and are actually looking to help. 

Restaurant owners should get further acquainted with technology solutions in their industry. Large companies like Toast and Square make a lot of money offering mediocre modules for restaurant people who don’t know what else is out there. 

The goal is to create a knowledgeable customer base, and product development and sales efforts that are rooted in the real issues of running a restaurant. 

THE HOSPITALITY EXPERT

What is a Hospitality Expert

I can see a hospitality expert when I close my eyes. He has that 1000 yard stare - not bothered by the day-to-day operation even as he navigates it so well. She is cheerful and excited by the service even with fires burning all over the place. They love what they do, but not enough to be weighed down by the grind. 

The best analogy is being a grandparent instead of a parent - you still love the kid, but will pass it off when the diaper needs changing. 

This is a stark difference to how I started out as a restaurant owner. Constantly panicked on customer feedback, employee grievances, equipment maintenance, the daily income numbers and the rest of the hundreds of minor to major issues that affect the daily operation of a hospitality business. It took me 2 full years to really find my groove, having made all of the mistakes along the way. All of them! 

If we can do anything at Ignite that has value to our restaurant clients, it’s to instill a sense of confidence in the process. To allow for creative expression without being bogged down by the pressures of the business. Those pressures will not go away, but how they effect you is all about perspective. 

The Problem - Food Costs

You can see bad ownership methods easily. Many owners get caught up in product pricing with the intent of cutting food costs. There are ways to cut food costs without resorting to cheap or pre-made purchasing, however many owners fall into the trap of “forseeable cost”. Pre-made frozen products with a set price, that require no expertise to prepare is a favored method. Products like jalapeno poppers, mozz sticks, fries and wings are all available as frozen and ready for the frier. Yes their fresh-made alternatives are much better, but owners can be scared off by the unknowns: Will their customers like it, will these products spoil, will a chef quit?

The Solution

Without perspective and expertise, these issues could seem insurmountable (and those Sysco reps sure do know how to sell based on these fears!). It takes time and effort to find out what really works for your patrons, but that effort is well worth it. Happy custsomers equals more profits because repeat business is cheaper to obtain then first-time customers. It also takes expertise to create a menu that uses the best possible ingredients for delicious food along with a process to maximise ingredients, all while lowering food costs. But it can be done. 

Ask us at Ignite and we’ll help.