Kevin Hochman sat on a chair in front of about 15 Chili’s managers and general managers at a Chili’s restaurant in suburban St. Paul, Minnesota, one recent morning. The managers’ tenure ranged from a few weeks to a few decades, but each of them took turns to tell Hochman at least one thing they’d change about their operations.
One of the general managers stood up and asked that the company’s consumer surveys de-emphasize physical issues at the restaurant. Her location had some wobbly tables and issues with booths, but servers are rated on the surveys. Those problems aren’t the servers’ fault.
Hochman had earlier confessed that he didn’t like customers being asked to do surveys. (“That drives me bananas,” he said.) But he wasn’t about to change them in this instance. “That’s on you,” he told the manager.
“Money is not an issue anymore,” Hochman added. “It’s in your hands. You have to own that as a GM to get that fixed.” He even told them to email him if the GM has problems fixing those issues.
That story helps demonstrate why some brands win, and others do not, especially in the casual-dining space. And it reflects the chain’s ability to stand out in a bar-and-grill sector that is otherwise in freefall right now. Chili’s as a brand is focused on improving customer experience, even for seemingly little things such as wobbly tables.
Little things matter. Anybody who has ever sat down for a meal at a wobbly table knows how much that tiny wobble can detract from the experience.
The best operators get these problems fixed and remove any roadblocks that can prevent that from happening.
As restaurants struggle, or profit concerns put pressure on executives, that pressure filters down to the restaurants, often resulting in delayed repairs or equipment replacement. The result: More wobbly tables that go unfixed, and more negative reviews from frustrated customers who opt for something else the next time they decide to eat out. Too much of it reflects badly on the entire chain.
That is more important today than it’s ever been. Full-service restaurant sales have underperformed the broader restaurant industry for years, as consumers shift their dining to fast-food chains or just order delivery.
That means there are fewer visits available to chains like Chili’s. And when customers visit a full-service dining establishment only so often, they’re going to visit those concepts that provide the best experience. In addition, the availability of consumer ratings on individual restaurants mean that consumers can avoid bad experiences before they go out.
Hochman has been doing these market visits since he was named CEO three years ago. Last week was the first time a Brinker International CEO had ever visited the Minneapolis area market. These visits help him uncover problems and find strategies that can make employees’ lives better or find little efficiencies.
“Every time we invest” in customer service, he said, “good things happen.”
The managers all explained why they love the brand. (“I love the culture,” “It provided me with my best life,” “I’ve spent the majority of my life with Chili’s.”) They all then had ideas for improving the brand: Handheld computers for general managers; improve the allergy designation so the kitchen knows what kind of allergy the customer has; change the to-go bags from plastic to paper; get access to streaming sports so the restaurant can show key games.
The sessions generate good ideas and help executives gain insight into operations. They also make the managers feel more involved in the process, which is not an insignificant consideration at a time when good general managers are gold.
“When I first started doing these three years ago, people were like, ‘Is he serious?’” Hochman said in an interview. He’s done about 40 of these market visits so far. “Now they’re like, ‘Oh we’ve seen all the changes happen. And most of them come from the restaurants.’ They’re really fired up to let me have it.”
A lot of factors were in play that helped Chili’s generate such remarkable sales last year, including a 31.4% same-store sales number in the last three months of the year, a year that earned Hochman the Restaurant Business Restaurant Leader of the Year award. But that focus on operations is a key lesson that all restaurants can learn.
Restaurant brands cannot cut their way to long-term success. They can generate temporary profits. But at a time when competition is fierce and customers are more discerning than ever, brands need the backbone of strong operations to keep their customers and be ready for new ones.
In other words, spend some time in restaurants, listen to managers. And don’t let wobbly tables keep you from success.