The International Network of Hospitality Consulting Professionals

Is Your Hotel Sales Training a Train Wreck?

Is Your Hotel Sales Training a Train Wreck?

Hotel sales training is important, and as Ben Franklin quoted, “An investment in knowledge pays the best interest.”  I’m a lifelong veteran in the hotel industry, and over time, I’ve seen that not all hotel owners see training and development as an investment in their business. Some of the best hotel companies I’ve worked for invested in this training, but the inferior hotel groups did not. They saw this investment in training as an expense. Those hotel groups are what as I refer to as a train wreck.

There are many questions that we have to ask to try and determine why some hotel companies look at knowledge as an investment and others look at it as an expense. While it might be impossible to come up with the answers to all of these questions, I do have some ideas for why when dealing with hotel marketing, some companies look toward hotel sales training and others do not.

  • Why is it that many owners/executives in our industry do not invest in hotel front desk training and developing their team?
  • Is it that they have invested in training courses in the past, yet were unable to measure the ROI?
  • Could it be that they strictly rely on the property brand to train their staff? Do they think this training from the brand is automatic, sufficient, or thorough?
  • Do property owners think that their general manager will train the staff? Is their general manager an expert in all areas of the field?  Do they have the time and/or take the time to train?
  • Does an owner think that the hiring practices of his/her general manager is so streamlined and perfected that the staff being onboarded are already fully trained to sell?
  • Is the owner so Nano-focused on the NOI that he/she doesn’t want to invest in hotel front desk training programs?

In my experience, whenever I would join a new organization or when somebody new joined my organization, it was always refreshing to hear and implement new ideas. Many of us have our own life experiences and track records that influenced our success or failure rates.

Bringing in outside influences to train a staff can help you increase revenue. Even if you have had some training to help with hotel marketing, a third party company can bring knowledge that isn’t well known amongst hotel owners and employees. Nobody knows it all, and every hotel in existence have areas in which they could improve upon.  A consulting firm can also help because the staff will often be more receptive and open to learning when a topic is taught from an outside professional in the field.

Not only will the hotel staff learn specific new skills, but teaching them knowledge will motivate them and make them feel valued. When you invest in your employees, they can feel that. There simply are not enough of the great hotel companies out there that invest in their employees. Unfortunately, a lack of investment leaves revenue on the table that could be gathered from successful hotel marketing that goes beyond the status quo.

For example, let’s say your guest service agents are trained on a sales lead generation program.  This program has a proven track record of digging up new leads for your sales team and general manager to follow up on. In turn, this should convert more travelers to your property. You invest $3,500 into this training program, and your ADR is $100. Once you sell an incremental 35 guest rooms, you have your investment back.  Any additional room revenue generated from the program is your ROI. Keeping these goals and measuring the improvement is important, and it can really help fill your hotel.

If you are a hotel group that is thinking about investing in training, my advice is to go for it. Give it a try with an outside training program. Many are low cost, and you can see the results by measuring improvement and setting goals. Hold the consultant you have hired accountable of those results, and soon enough, your hotel’s revenue will increase from hotel sales training.


About the Author:

Jay HartzJay Hartz, CHA is Owner of Next Generation Revenue Per Available Room, LLC which is a sales and marketing Training and Consulting Firm. He has a proven track record in Sales & Marketing with his main focus on direct sales training and development, social media platforms, leveraging technology, and customized marketing plans.

Case Study: Restaurant Profitability in an Established Operation

A Case Study: Increasing Restaurant Profitability in an Established Operation

This is a summarized version of the restaurant profitability case study. The full Case Study is available at: www.LopolitoHospitalityConsultants.com

Restaurant One – For financial and business confidentiality the actual business name has been replaced in this study.

Assignment Outline:
Restaurant One in Orange County New York desired improved restaurant profitability, as well as Front-of-House (FOH) services to their customers and an understanding and possible improvement of the other perceived deficiencies. Restaurant One offers both a casual dining room and sports bar dining atmosphere with a separate banquet room for parties. Hours of operation occur all 7 days with lunch and dinner service, and there is an abundance of local competition and variety of cultural food styles in the area. Lopo lito Hospitality Consultants was asked to review the location and to assess how to improve service and increase profitability.

Introduction:
The review of Restaurant One, by the restaurant & bar consultants, began in February 2017 where initial observations exhibited numerous neglected core efficiencies causing unreliable service and a negative effect on bar and restaurant profitability.

There was a consistent absence of immediate attention to the customer upon their arrival, followed by a common showing to the table and throwing down menus. This was followed by a service standard of simply taking orders and delivering product with no special steps to create an elevated customer experience. There were compounding service issues with regular and similarly made errors on food and beverage orders that were distressing customers, as well as, FOH and BOH effectiveness. In addition to the FOH training needs that were apparent, issues distressing profits included evidence of severe over pouring with occasional under pours of alcohol, Call brands poured when Well brands were charged, inexperienced wait staff mixing their own alcoholic beverages for their tables, frequent food and bar item returns, no inventory taking procedures, arbitrary menu price practices instead of formula based, lack of training in secondary floor managers, and there was a neglect to parking needs affecting diners coming to the location especially during parties, and this was additionally burdened with employees taking up guests parking spots.

Case Observations Presentation:

  1. The general manager was never trained in essential skills like inventory management, COGS, menu engineering, and is unfamiliar with the percentages that are necessary to understand cost evaluations.
  2. There were no employee position descriptions in place, onboarding or training programs.
  3. Wait staff make their own drinks for their tables resulting in poor quality. Call brands are being poured when Well brands are charged, there is no recipe consistency.
  4. Upon our initial review we performed a short audit of alcohol cost percentages by reviewing of invoices and sales during the same time period. These first month results are as follows;
    1. Bottled wine pouring percentages were at 45%-63%.
    2. Wine by the glass pouring percentages were at 24% to 44% on paper, however most wines by the glass were being over poured so these results were estimated lower than actual.
    3. Alcohol pouring cost percentages were at 40%. d) Beer pouring cost percentages on bottled and tap combined were estimated at 35%.

LHC Management and Outcome:

  1. Position responsibilities were formulated and LHC wrote a guide for each of the four segments; Front Desk, Runners, Bussers, and Wait Staff. Training to each segment progressed.
  2. Meetings with the general manager began in March to train in inventory and COGS management.
  3. Inventory training with the General Manager included the creation of their first inventory spreadsheet, understanding FIFO & COGS, and evaluation and calculations of alcohol pouring cost percentages.
  4. To address the inconsistent drink making, over pouring, and other cost issues, LHC designed a 4 hour comprehensive alcohol pour training program for all wait staff and bartenders to attend.
  5. June 2017 presented a second full month of strong inventory and COGS results for pouring cost assumptions resulting in the following.
    1. Wine combined COGS is $3,119 on $14,381 revenue for a 21.7% cost to sales (down 7.3% from May)
    2. Bottled & Tap Beer combined COGS is $5,981 on $21,510 revenue for a 27.8% cost to sales (down 2.2% from May) c) Alcohol COGS is $5,080 on $22,447 revenue for a 22.6% cost to sales (down 10.4% from May)

Discussion:

This case was coordinated over a 9 month term, February 2017 to October 2017. The initial project concerns by the owner was training of the FOH staff in better service standards and perhaps the idea that no inventory taking was affecting profits.

Conclusion:
A discussion of financials in October 2017 offered an average increase to restaurant profitability of $3,000 per month over the term beginning June 2017 through September 2017. If maintained, the resulting outcome for 2018 has a minimum expected 2% increase in annual profit, or $36,000 additional profits based on $1.8 million revenue.

Follow –Up:
A follow-up call was made to the manager at 3 months following the completion of this project. Here are the results of this conversation.

Q: LHC introduced and trained staff in drink making and how to use the recipe books LHC created for the bars. We also introduced and trained to use the jiggers. Are the bar books and jiggers being used?
A: Yes, continually used, especially by new staff working with the recipes. Also, we do not push the few seasoned bartenders to use the jiggers when very busy, but all wait staff use them continuously. Customers have become accustomed to the jiggers.

Q: LHC introduced a comprehensive program of training with materials for bartenders, wait staff, bussers, and runners. How well has this program continued?
A: Staff is performing better with fewer mistakes. Drinks are more consistent for us with the bar recipe books LHC designed. We have a number of new employees that recently started, and they will receive the position descriptions. Fewer mistakes are occurring with orders though.

Q: Have you reviewed financial with the owner regarding profits?
A: Yes, while I have not seen the recent reports myself, the overall talk is profits are better and are continually getting better since LHC program implementations.


Meet the Author:

Jim LopolitoJim is president of Lopolito Hospitality Consultants and a veteran of the restaurant, country club and catering industries offering expert operational review, club management consulting, foodservice training, and team development. His consulting services include his proprietary “Expense Loss Review” program. The ELR program reviews variances between money that is currently unsystematically expensed on product, services, or equipment and the amount expensed upon our review and implementation of practical methods of spending behavior. Jim has worked in virtually every position in foodservice, from executive chef to general manager in restaurants, country clubs, and catering in well-known organizations throughout New York. His background includes 12 years in restaurants, 19 years in private clubs, and 10 years in high-end catering and concert production.