Investing In Human Capital
Doris Yuen and Ken Wan are the young, vibrant, and passionate owners and operators of Meta Asian Kitchen in Avanti Food & Beverage. Just like you, they got into the business to fulfill a sense of purpose, in their case through Chinese cuisine — authentic to their family recipes. To obtain a sense of security through financial freedom. To expand their sense of self through their Chinese heritage. They are now on a mission to fulfill their sense of place by searching for the proper location for a brick and mortar extension to their brand and to understand their sense of time — when is the right time to open. All of this will create the ultimate gift that a food and beverage business give — a sense of belonging for everyone involved; Doris & Ken, their employees and the community they serve.
The overwhelming problem they face is that the “industry standards” don’t leave enough money to pay their employees not only a livable wage, but what their actual value is. 12% BOH labor, 8% FOH labor, 10% management labor. What does that mean? Why are we even trying to get there? This doesn’t even contemplate the difference between operational labor (what you pay people either hourly or salaried) and fully burdened labor (payroll + payroll taxes + benefits). This is the root cause of two more obvious problems: the inability to make payroll and high turnover due to low wages. This can make any owner feel like they are drowning. It’s just wrong that by reaching all of the industry standards you still can’t attain success!
We understand what it is like to be stuck in scarcity mentality, and how hard it is to shift your mindset to abundance mentality. Experts like Carrie Luxem of Restaurant HR Group and Jordan Boesch of 7Shifts are here to help. They do a lot of the heavy lifting from providing 5 HR systems every restaurant should focus on improving and the employee life cycle to actual applications that ease the burden for scheduling and turnover. Turnover that costs about $6,000 per line level employee and $14,000 per manager. That’s each employee or manager you turnover.
How do you get out from underneath all of this? You utilize Carrie’s 5 HR elements; you follow Jordan to gain efficiency from the 7Shifts app and the engage tool. You invest in your most valuable asset — your people. How can you get comfortable with all of this? We have your back. Don’t become another statistic — part of the 73% industry turnover rate and 60% failure rate in the first 12 months of operations. Follow a map that will lead you to 75% employee retention and satisfaction. By letting us guide you through the work, you will transform from overwhelmed and undervalued to a pillar of culture and commerce in your community.
As you begin to shift your mindset to invest in your most valuable resource, we have compiled links to research and resources for you to dig into. Or you can contact us, and we will walk you through it all, breaking the numbers down for you into bite size pieces. Sign Up here to answer “6 Questions To Unlock Your Concept” as well as receive free content, and opportunities for more info, insights, and inspiration.
Learn more by watching the whole series of Best Served New: Meta Asian Kitchen and the episode focused on investing in people.
Episode 6 Investing in Your Most Valuable Asset Your People
Carrie Luxem’s Links:
Recruiting & Interviewing
Why Honesty is The Best Recruitment Strategy When Hiring New Employees
5 Critical Tips For Recruiting Top Talent | My Advice For Employee Recruiting & Selection
Don’t Make This Mistake When Conducting Job Interviews | Recruiting Employees
Onboarding & Training
Onboarding New Employees: How To Orient New Employees For Better Staff Retention
Compliance
How To Comply With I-9 And Why It Matters Now More Than Ever
Safety
Restaurant Robbery Safety Plan
Termination
Tip To Properly Terminate Employees
Jordan Boesch’s Links:
Andrew Parr, founder of Angry Olive Consulting and Blue Unicorn, is a restaurant and hospitality industry veteran with over 25 years of experience including consulting, project management, restaurant operations and talent acquisition. His education includes a BA in Psychology and History from the University of Wisconsin along with a JD from Hamline University School of Law.
Andrew’s professional experiences include work across multiple national markets, counting among them Denver (including Boulder, Fort Collins, Colorado Springs, Longmont and Loveland), Portland, Seattle, Chicago, Minneapolis, Phoenix, Hartford and Tampa / Clearwater. He is an advisor, mentor and business coach for entrepreneurs, owners, and industry leaders.
Andrew was born and raised in Milwaukee, WI, and currently resides in Denver with his wife Jody and their dog Cooper. Andrew currently serves as the President of the Board for the Scleroderma Foundation — Rocky Mountain Chapter with deep respect for the achievements of the Chapter and an eye toward growth in accordance with the Foundation’s mission of Support, Education & Research.
