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How to be a smarter bar or restaurant owner

Many highly successful bar and restaurant owners don't hold degrees in hospitality management. In fact, of the 700-plus clients I've worked with over the last 30 years, only about 50% have industry training.

Often, restaurant owners are successful entrepreneurs who have dreamed of owning a venue and leverage their business expertise to manage their operation.

Is that enough? Sometimes. However, the hospitality industry is unique - and uniquely challenging. Even a hard-earned MBA can't prepare you for some of its stickier problems.

For example, it can't teach you how to update a menu to increase average check size - a challenge many owners currently face. Or how to streamline traffic flow from the kitchen to the front of house, expediting food delivery.

There's a reason why 60% of restaurants fail their first year. This is a tricky, complex business. That said, industry knowledge is out there for the taking - if you know what you need and where to look.

Filling the gaps

Some elements of the restaurant business are easier to pick up than others. In my experience these are the key areas that require more specialized education:

Financial accounting for restaurants

It's not enough to understand a P & L statement, although it is important. Those who can truly read a restaurant's books can pinpoint at a glance what's working and what's not.

For example, theft is a pervasive industry issue. By comparing food and liquor purchases to sales - i.e., the cost of goods sold - pros can tell at a glance if theft is a problem.

Food and beverage management

This is another area of operations that's less straightforward than you'd think. You may understand purchasing and inventory management, but here, you must also factor in perishability and predict demand - a moving target that it's by multiple factors.

Similarly, menu planning may sound fun, but it's really a science. Right now, restaurant owners should be collaborating with their chefs to update their post-pandemic menus - removing less-frequently ordered items and those that require special ingredients, while adding strategically chosen apps and deserts to increase order averages.

Service quality management

Service is a big issue right now, particularly given the industrywide staffing shortage. As customers venture back into a venue, it's critical to wow them with a great service experience. Every detail matters, from how they're greeted to how long it takes to order and get that first drink to the servers' speed and attentiveness.

While this seems like common sense, it's not always clear how to measure each component of service delivery, identify the problems - and, most importantly, fix the problems in real time.

Where to pursue more advanced knowledge

There are a number of ways that bar and restaurant owners can advance their executive education.

For those who choose to go the formal route, there are a growing selection of colleges and universities that offer courses and degrees in hospitality management, in-person and online. We're fortunate to have several excellent programs in the Chicago area.

In addition, trade associations, including the National and Illinois Restaurant associations, offer classes and other learning opportunities. And for those seeking one-on-one guidance, restaurant coaches and consultants are a tried-and-true option.

In short, while there is no substitute for on-the-job training, in the restaurant industry, the learning curve can be steep and costly. In my experience the most successful bar and restaurant owners know what they don't know - and, one way or another, will take steps to acquire that that knowledge.

• Izzy Kharasch, aka The Restaurant Coach, is president and founder of Hospitality Works, Inc., www.HospitalityWorks.com, a bar and restaurant consulting company in Deerfield that helps companies worldwide improve operations and profits. Izzy can be reached at (224) 688.3512 and Izzy@hospitalityworks.com.

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