It’s hard to think clearly when we’re hungry.
Laugh when we feel threatened.
View ourselves positively when we have no friends.
Our basic needs must be taken care of before we can work on becoming the person we want to be.
The same is true for any business. The most ambitious owner or manager still has to satisfy a handful of fundamental “lower level” operational requirements before they can focus on “higher level” priorities for the business.
The pain of unsatisfied needs is even more acute in the restaurant world. There’s a tangible hierarchy to the needs required to operate a brick-and-mortar business that any manager will feel immediately the moment there’s a crack in the foundation. Similar to how we find it difficult to think and focus when we’re really hungry, a restaurant business owner finds it extremely difficult to work at higher levels of the business when a lower level operational gap exists.
I’ve taken a stab at articulating this hierarchy below, in hopes it will be useful in helping me and the Kitava team identify operational gaps before they become gaping holes. If done right, this framework will help us identify where critical gaps might exist at any given time, provide a language to describe those gaps, and make it easier to come up with solutions to patch them up as effectively and efficiently as possible.
For example, if management keeps getting pulled back into the weeds of daily service, it can be helpful to know if the problem is due to a lack of adequate staff, adequate training, or a flawed process, and at which levels in the hierarchy the problems might exist before coming up with potential solutions.
How to interpret the hierarchy
Similar to Maslow’s Hierarchy of Needs, a restaurant operator must satisfy the needs at each level of the hierarchy from the bottom up before they can comfortably focus on the next level. It starts with the basic requirement to “keep the lights on,” while the ultimate goal for an owner or operator is to focus their efforts on having broader societal impact (“the greater good”).
It’s worth noting this hierarchy refers to operational needs. There are, of course, other table stakes requirements for the business to survive (such as quality food, a profitable business model, and great guest service). But it’s possible for a business to succeed financially yet stagnate operationally because there are gaps in the hierarchy, causing managers to keep getting dragged into the weeds when they could be focusing on growth, scale, and positive impact on their guests’ lives.
A simple way to look at it – an owner or manager can only spend their time at a given level of the hierarchy once the level(s) below are taken care of first.
Restaurant Business Hierarchy of Needs
Each level of the hierarchy is presented from the bottom up (i.e. Most crucial to highest level work).
Keep the Lights On
The storefront can operate effectively as a restaurant.
Baseline Requirements:
- Line Level Staff – line cooks, dishwashers, cashiers, servers, bussers, etc.
- Documented Processes (SOPs) – standard operating procedures that outline how to get things done (e.g. opening / closing procedures, recipes, prep lists, ordering, etc.)
- Leads & Supervisors – “adults in the room” who can guide line level staff through service and daily operations
Breathing Room
The owner or manager can breathe a little, knowing the business is safe and secure without them having to be there 24/7.
Baseline Requirements:
- Systems & Technology – to help streamline key operational tasks for the location (e.g. scheduling, invoicing, ordering, inventory, HR paperwork, etc.)
- Store Level Managers – managers responsible for the operations and financial success of the location (e.g. General Manager, Kitchen Manager)
Financial Insight
Transparency into key metrics that show the business is working.
Baseline Requirements:
- Financial Pro – hire a team member solely focused on finances, accounting, budgeting, invoice payments, and P&L reporting
- Measure & Track KPIs – key performance indicators that reveal store performance, paired with a process to review and evaluate results on a regular basis
Positive Impact
Happy guests that love your food and experience, and tell their friends.
Baseline Requirements:
- Devoted Regulars – guests that visit often and tell their friends
- Positive Reviews – excellent reviews on Yelp and similar platforms (4.5/5 stars or greater)
Scale
The concept can spread beyond the efforts of one manager and one location.
Baseline Requirements:
- Multi-Unit Management – mid level managers that help operate, train staff, and ensure the success of each location (e.g. Director of Operations, Culinary Trainers, Marketing)
- Tech Stack Upgrade – transition to software that helps the business operate across multiple locations, and provides insight into company-level financial performance
The Greater Good
The business can influence a broader societal mission.
Baseline Requirements:
- Brand Building – marketing, storytelling, and fan engagement efforts to amplify the company’s ethos
- Partnerships – with like-minded brands that share the same values and vision for the future
- Beyond Storefronts – efforts to maximize the positive impact of each location on local communities, while developing programs to add value and give back at scale
Summary
Every business has a hierarchy of needs that must be met in a very specific order if it wants to achieve its potential.
For restaurants, this starts with ensuring the business can successfully serve guests food and drinks, and slowly graduates to providing managers with more and more breathing room so they can focus on higher level tasks like creating a positive impact, scaling the concept, and influencing a broader societal mission beyond any single brick-and-mortar establishment.
—
If you’re a restaurant operator or business owner, I’d love to hear your thoughts. Does this resonate with you? Is there anything you disagree with, or feel I left out? Send me a message so I can hear your feedback!