There is an old axiom, “Vision without action is merely a dream…Action without vision is a waste of time!” I am reminded of that axiom every time I discuss scaling for growth.
What I have often seen is burgeoning chains and multi-faceted operators looking to scale up and expand their concepts simply start growing without a thoughtful plan in place. They find a great deal in a new location then simply start building. In short, action without vision.
What invariably happens is the operators wake up one day and realize things are not going so well, customers are not happy, costs are high, staff turnover is high, managers are overworked and underleveraged, and sales are declining. Growth then stagnates and potentially even reverses.
So how do you scale for growth while maintaining a high level of excellence? We could write a long textbook on all the details in planning your growth strategy, but here are our seven key tactics to aid the growth plan of your business.
1. Align your values, align your teams.
Why is this the first step? Train your managers in your way of doing business and the core values you hold most dear, and your businesses – and the people running them – will flower. Train your managers in your way of doing business and the core values you hold most dear, and they become raving devotees who, in turn, then create aligned and enthusiastic front-line employees in all departments, in all venues. Whether opening multiple units of one concept, or multiple concepts, all members of your team must align with your vision and your values. During this alignment phase, engage your management team in your vision for growth. By engaging them, they will aid your growth by giving you the freedom to focus on the processes within your operations, while providing you the people and culture to promote from within, creating a self-propagating “farm system.”
Most qualified operators “get” the idea of having common purchasing, consistent supply chain management, and corporate HR. Too often they forget to manage their human capital with the same dexterity. Sell the "Big Picture" when onboarding new employees and coaching current ones. People are more likely to do what you want them to do if it leads to a future they want. Align their future with yours.
2. Create a realistic goal, then create a realistic plan to achieve that goal.
If the plan does not work out, change the plan but never the goal. How much more needs to be said here?
The operative word is realistic. I would never tell you not to dream big…please do! Big dreams are big motivators! However, your goals for growth should be realistic, attainable, and with incremental increases in your markers at differing levels. Once you achieve one marker to your goal, stop, breathe, congratulate yourself and the team, assess where you are, then go hit the next marker. It will be much more satisfying to hit achievable markers while maintaining your high level of excellence. At every step in the plan, make sure to follow point #3.
3. Burnish the good, polish what’s tarnished, and fix what’s broken—before expanding.
Take a moment to look at existing operations before taking on expansion. Use a critical eye to evaluate every person, dish on the menu, beverage item, and process. If something is good, ask why it works, then enhance it.
If something could work but is not being used properly, ask why you are not using this system properly, then ensure that you are.
And if something is broken—whether a system or the bathroom door—fix it. Nothing is more distracting than having an existing business feel tarnished and left out while a new business opens and gets all the love and attention. Put a fresh coat of paint—literally and figuratively—on everything. How often have you heard someone say, “Once they opened the new place, the original place went downhill!” Make your existing business sparkle and feel fresh and new, and your aligned and well-trained staff will take care of the rest.
4. Put in place strong, efficient, simple systems.
Colin Powell once said, “Leadership is the art of accomplishing more than the science of management says is possible.” How do you lead a team to accomplish more than they believe is feasible? Strong, efficient, simple systems.
To accomplish the systemization of your business, as the leader of your organization you need to learn to delegate. How do you delegate? You start with strong systems and processes. Seems like a vicious circle, but it’s not.
First, train your general managers in your values and vision, work with them on creating or enhancing the systems you need in place across all businesses, vest them in the success of your expansion by engaging them in the process implementation, then step out of the way and let them run the ship(s). Every aspect of your business should have a simple, easy-to-follow affiliated process or system to operate like a machine.
Does it take hard work and effort—yes! But once these systems take root, what actually happens is that the day-to-day work and oversight gets easier. Wouldn’t you rather your managers focus on mentoring your front-line employees and managing the guest experience as opposed to constantly reworking what should be machine-like efficiency? I would!
To clarify, common systems across multi-unit operations include, but are not limited to, human resources, interviewing and hiring, onboarding, training, the employee evaluation process, corporate purchasing and inventory management, and numerous others. These are the tactical operational systems that could and should be common to all your businesses as you expand. By utilizing common, straightforward, simple systems, you allow the individuality of each business and person within it to flourish.
Relentless repeatability in operations is paramount for growth. Consistency in operations is the most effective marketing strategy for continued expansion.
5th: Collateral materials prevent collateral damage.
Too often I have watched as expanding entrepreneurs keep reinventing the wheel for every new business they open, or just as bad, operate by the seat of their pants. It makes no sense to me.
Every multi-unit organization needs to have common collateral materials to work from. All your businesses should share the same employee handbook for all employees, the same new hire applications, the same employee evaluation forms, the same service manuals, the same training materials, and many others. They should vary only by virtue of differing concepts, meaning the menu descriptions, beverage descriptions, specific steps of service, and side work for the operations could change venue to venue, but not those materials that are intrinsic common operations.
Once again, too many people believe this is too much work to accomplish. I say, how can you afford not to? Once the materials are in place, give ownership of the updates to one department head or manager and allow them to keep the materials fresh while not changing the common structure and information.
In today’s world, much of this can be done digitally, which avoids the unnecessary step of printing and handing out hard copies. Many of these materials can be placed in a cloud file accessible to all employees via their phone, computer, or tablet, making it even easier to ensure the materials are read and understood.
Just like having common systems, having common collateral materials allows for virtual plug-and-play application when you are ready to open the next location—giving you and the team time to focus on the fun stuff because the hard stuff is already handled!
Let me repeat: Relentless repeatability in operations is paramount for growth. Consistency in operations is the most effective marketing strategy for continued expansion.
6. Common purchasing and inventory management.
As the saying goes, a penny saved is a penny earned; therefore, saving pennies adds up to earning dollars.
Many years ago, I was working with an independent multi-unit organization that had six different concepts under one common ownership. While trying to organize them for common purchasing, the chefs in each location were up in arms. Each thought corporate purchasing would bring down their quality, take away their entrepreneurship, and inhibit innovation. I heard every argument from “we have different concepts,” to, “we have different ingredients."
I finally locked the team in a room with a stack of peanut butter sandwiches and pitchers of milk and told them not to come out until they outlined what they had in common—I already knew the answers. It does not matter that the Indian concept had a different menu and spice usage than the Italian concept or that both were different from the Mexican concept. Guess what? Every business uses salt and pepper, kitchen towels, toilet paper, and cleaning supplies. What about chicken, dairy, lemons, and vodka? I could go on and on.
There are different ways to handle group buying. One approach is to warehouse your own bulk items, such as toilet paper, straws, paper napkins, and other non-perishable goods. To me, this method is best suited for multiple units of the same type of operation as they share the exact same printed materials, cups, to-go materials, and much more. (Let me not get into discussing corporate commissaries here, as that is a more complex issue and full article on its own.)
The second approach is to have a limited number of approved vendors where deals are made at the corporate level, while the unit level handles the specifics of ordering. To me, this approach seems best suited for multi-unit operations having multiple concepts. All units get the benefit of a “bulk deal” while still ordering the specific needs for each concept.
Neither method is right or wrong; it's about what is best suited for your needs.
7. Enjoy the ride!
Whatever plan you put in place, let me leave you with one final piece of advice: Have fun doing it!
Scaling a business is hard, but it is also an absolute blast. How exciting to watch the fruits of your labor ripen and flourish. Enjoy mentoring the people you work with—they make your life easier. Take joy out of your growth.
Nick Mautone has 40 years of hospitality industry experience. A highly regarded consultant, investor, and restaurateur, Mautone is the architect of an inventive process called "Hospitality Sabermetrics"-- think Moneyball for hospitality. He has a sixth sense when it comes to foreseeing trends, and he is known for nurturing sustained succcess, streamlining operations, and aligning core values in every sort of hospitality business.
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