Every Business Should Follow These 3 Principles from The Restaurant Industry

According to the author in his early years, he spent a decade in the restaurant business — owning several places and dealing with every challenge we can imagine. If he has learned anything from his time in the restaurant industry, it’s how to stay sharp, pivot fast and manage chaos calmly.  Years later, as a tech CEO, he still rely on the lessons he learned in those kitchens and dining areas. The restaurant industry runs on principles that translate seamlessly to any sector, and the smartest businesses are the ones that take a page out of their playbook. Three practices are crucial for success, no matter your business.

1. Have a contingency plan.  Always be ready. You know things may go sideways really quickly if you have ever worked at a restaurant. One minute, operations are running perfectly — then in the next moment, the fryer goes down mid-dinner rush, or worse, the point-of-sale system (POS) crashes.  Successful restaurant managers have mastered the art of managing panic. They pivot quickly. Handwritten orders are scribbled out, alternative cooking methods are deployed and the operation continues without missing a beat. This approach of adaptability is something every business needs to adopt.
2. Study your competitors.  In the restaurant business, every thriving establishment keeps a close eye on its competitors. As they say, “Success leaves clues.” If the new place across the street is packed every night, you’d better believe the local owners are heading over there, taking notes. What’s their pricing strategy? How are they marketing? Are their menu items seasonal or trendy? Restaurants study this information not to copy but to adapt and innovate.  Paying attention to the reasons behind your competitors’ success is crucial, yet simply replicating their strategies will not lead to significant progress. The real value is found in recognizing opportunities for improvement. Although studying the competition has statistical significance, too much attention to them can limit your own potential. You run the risk of moving from proactive to reactive. Use competitor analysis as a springboard for innovation. By studying their strengths and weaknesses, you can push your business in a direction they haven’t considered.
3. Work on soft skills.  Soft skills are just as important as technical skills in the restaurant industry. It may sound like something that belongs in an HR training module, but in business, they’re essential for survival and growth. For instance, it is imperative for the cook to notify the dining staff and guests right away when a popular dish runs out to manage expectations. Real-time communication among staff, clients and managers helps reduce preventable errors, minimize frustration and preserve high standards of service.  In a more general corporate environment, relationships must be maintained by soft skills, including feedback, empathy and communication. Minor difficulties could develop into major issues if you struggle with effective team and client communication. Maintaining trust, loyalty and efficiency depends on handling circumstances as they abound, whether it means telling a client about a delay or providing a team member with constructive criticism. Leaders who master soft skills tend to have happier teams, lower attrition rates, and more satisfied clients.