May/June 2007
Debby Cannon, Ph.D., CHE
A restaurant operator buys a new piece of equipment. Of course, there is an expected return on this investment. Perhaps it expands the restaurant’s capacity to offer more menu items or to offer a more consistent product. Maybe there will be enhanced productivity. New china is purchased and, again, a return on this investment is assumed � enhanced plate presentations, adding to the restaurant’s ambience.
No less should be expected of training when it comes to return on investment. Training does incur costs but, if properly designed, the benefits can outweigh the costs. How does a restaurant maximize ROI?
1. Evaluate where the gaps are between your restaurant’s standards and the performance of employees. This evaluation may come from customer feedback (comment cards, direct verbal comments, declining business). Or the gaps could relate to safety issues (increases in slips, falls, cuts, back injuries), breakage or waste. Training that directly relates to priority needs in your establishment will have a greater chance of providing significant ROI.
2. Establish definite training objectives. Objectives should follow the SMART formula:
- Specific
- Measurable
- Achievable
- Relevant
- Time-Specific
Instead of having a goal to “improve service,” objectives should be stated using the above formula. Service-related examples include:
- All servers (100%) will be able to describe all (100%) menu items including ingredients and cooking techniques.
- Drink orders will be taken within two minutes of guests being seated.
- All servers will check back with their tables to see if anything is needed within three minutes of entr�es being served.
Training based on these goals can be evaluated to determine if the behaviors were accomplished and to what degree.
3. Use repetition freely to reinforce training – Pre-shift meetings offer a great opportunity to daily reinforce training that has occurred. Utilize contests, games and other entertaining approaches to support performance standards and make them fun and memorable.
4. Evaluate training with ROI in mind. There are four possible approaches to how training is evaluated:
- Reaction – Did the employees enjoy the training? Find it entertaining? Informative?
- Increase in knowledge and skills – Was knowledge increased? Skills enhanced?
- On-the-job behaviors – Are employees performing the new behaviors at work? Is the knowledge learned being applied effectively on the job? Are the new or refined skills being used on the job?
- Results – Are there tangible results in your restaurant that prove the training is benefiting the operation?
For example after a training program on pairing wine and food, are servers observed making more wine suggestions? This level of evaluation would target “on-the-job behaviors.” Are wine sales increasing and by how much?
This takes the level of evaluation to “results.” Calculating the increase in wine sales (results) as compared to the costs of the wine training program (employee wages, product) results in a very tangible Return on Investment figure. With refreshers along the way, the positive impact of the wine training program could be felt for several months or more which definitely expands the ROI benefits.
Focusing the evaluation solely on the levels of “reaction” and “increase in knowledge and skills” will not be sufficient in determining ROI for training activities. It is imperative that on-the-job behaviors and results be evaluated. If training is not transferred to positive job behaviors, it is of very limited benefit to your business.
You may ask, “How about soft skills – service techniques, interpersonal skills, communication – how do you calculate the ROI in these areas?” The soft skills are definitely more difficult to quantify but we know these areas are of extreme importance in delivering quality service. In evaluating this type of training, aim for the SMART objectives to make the training efforts as focused as possible. For example, instead of aiming for “friendly service” try to be specific about the types of behaviors that might be perceived as “friendly” such as:
- Servers provide a warm, sincere greeting upon approaching the table;
- When children are at the table, the server acknowledges the children and offers a special “hello.”
- When there are older or disabled individuals, these individuals are not ignored but included in the warm greeting.
- The server asks if suggestions would be helpful as the party is ordering.
- The server gauges the timing of how fast or relaxed the party would like to pace their meal.
As you can see, there are many ways that “friendly service” can be more targeted. The standards for your restaurant will be the guiding force in what to include in a training program.
Monitor the areas impacted by these “soft skills” such as guest comments, complaints, returned orders, percentage of return guests, sales volume. Although it may be hard to put an exact dollar amount on the interpersonal skills, we know that these factors have a tremendous impact on the success of your restaurant.
Ongoing and effective training can directly benefit your bottom line as well as serve as a tool in the retention of employees. Consider various forms of recognition for completed training programs (a lapel pin, a framed certificate). These are low-costs ways to create employee enthusiasm for on-going professional development � another ROI for your establishment.
Debby Cannon, Ph.D., CHE is Director of the Cecil B. Day School of Hospitality, Robinson College of Business, Georgia State University.
