HINDSIGHT: 2020

It seems only through the crucible of Covid-19 could I truly gain the perspective needed to address some of the systemic economic and social problems inherent in the hospitality industry. As we begin to emerge from the pandemic, I have made it my mission to provide my employees/teammates with a renewed vision of what the hospitality industry can and should look like, and my ideal is ever evolving as we progress and learn about what works and what doesn’t move the needle as much as I hoped.  I’m confident my business model may not be feasible or desirable for all business owners, but I wanted to share our revelations in the hope our peers and colleagues may choose to follow or take inspiration in order to adopt their own needed changes to push the industry forward. 

The Standard Model

One of the things that we saw that needed mending was the way that foodservice employees are compensated in the state of Georgia (in addition to many other states). Unlike wait staff, kitchen and stewarding employees are traditionally paid hourly by the restaurant, often at the laughable state minimum wage of $7.25 per hour. Based on my experience in the industry, the average hourly wage for cooks at fine dining restaurants is between $15-$19 per hour and $15 per hour for stewards on the HIGH end. Keep in mind, in this widely accepted model, the busier the restaurant is, the harder the cooks and stewards are expected to work...for the same amount of pay, something which can lead to division and resentment between the front of house (servers) and back of house (cooks).

In the front of house, the M.O. has always been that the servers live or die by their tips. In the state of Georgia, a restaurant is permitted a “tip credit” that allows them to pay their service staff a measly $2.13 per hour (plus tips). This would be very attractive to a restaurant owner on the surface as it greatly decreases the amount of labor for front of house and can help to significantly lower your labor costs. However, I dare say that the cons drastically outweigh the pros. Yes, if the restaurant is busy the servers are making a killing on tips at a marginal cost to the employer, however, when the business takes a dip, even temporarily, the owner will likely find themselves with a crew of servers looking to jump ship (and rightfully so).  This results in additional hiring and training costs (often much higher than $2.13) to get the trained and qualified staff levels back to operational before the cycle inevitably repeats. On average, I believe the cost of turnover outweighs the benefits of retaining productive, trained employees.  

“All for one”

Given the opportunities to revamp our business model presented by Covid, we decided to approach compensation from a fresh, some would say radical, viewpoint. Due in-no-small-part to the relaxing of tip sharing laws in Atlanta, and the need for change in general, we enacted what we’ve called the “All for one” plan. Every hourly employee, whether front or back of house, makes $10 per hour, $2.75 above the state’s minimum, non-tipped wage. In addition, the hourly employees all receive 1 point of the communal tip pool; our steward makes $16 per hour plus .5 point share of the tip pool. This means our FOH and BOH average $25 per hour and our Steward averages $23 per hour. Furthermore, the busier the restaurant is and the harder the employees work, the better they are compensated. It is a win/win. This approach also helped stamp out the potential FOH-vs-BOH hostility because everyone is in the same boat, compensated equally, and striving to achieve our common goals of satisfied customers, a busy reservation book, and an efficient restaurant. 

Quality not quantity

The second thing I realized post-Covid was that we were working too much. It was as simple as that. When the pandemic closed much of our entire industry, a HUGE portion of the foodservice industry fled to various other fields, and I’ll bet a large reason for their exodus was the number of hours and days one needed to work to make a living in our industry. 

Pre-pandemic, my restaurants were no different. We were open 6 days a week, and many folks worked 70+ hours while barely squeaking by both financially and physically (not to mention the damaging effect this was having on mental health). In our revised plan ,I decided that we would only be open for 3 days of service with a half day of prep/admin for hourly employees. This abbreviated schedule would ensure our team was fresh, well-rested, and ready to perform at their highest level. Having service Thursday-Saturday would also concentrate the not-yet-pre-pandemic demand for business and (hopefully) guarantee that the likely to be slow first half of the week was not a slow labor suck as we waited for the busy weekend. 

I knew that in order for this plan to be remotely feasible, I would need to increase the total dollar amount coming in per guest (or PPA). This was done by revamping the Southern Belle style of service from a la Carte to a 4-course tasting menu. This almost doubled our PPA and proved easier to execute from both the kitchen and service staff point of view, another win/win. Additionally, to help compensate for the reduced number of operating days, we supplement our regular operations with a monthly events such as a wine class or guest chef dinner to help add additional revenue. 

Be the boss you’d want to work for

A previous employer and mentor of mine once told me that if the cooks are comfortable and happy at work, the food will taste better. I think he hit the nail on the head there. It has been my goal as a leader to inspire, encourage, motivate, and teach my team rather than intimidate and belittle. I believe that everyone employed at our restaurant should (actually) like being there. I spend as much time with my coworkers as I do my own family, therefore, why should they not be treated as such? This may seem like a simple concept, but it is often overlooked in the business. 

Chefs are often stressed out by much more than simply what is going onto the plate. This often manifests itself through outbursts or public beratements of their subordinates, and self-destructive behaviors in private. I genuinely try to keep a light-hearted demeanor at work and to thank each employee for their hard work and service every night. We truly cannot do it without each teammate contributing to our success. When someone makes a mistake, I try to be patient and correct the issue and treat it as a teaching moment rather than a situation where I can ruin someone’s day. I also have a strong focus on mental health as I myself have struggled with alcoholism and depression and strive to provide a healthy and safe environment for the staff which includes a no-shift drink policy, taking much needed time off (we offer 2 weeks paid vacation to ALL employees), and promoting a healthy work/life balance. We also host the Atlanta chapter of Ben’s Friends meetings each Sunday, a non-profit support group providing addiction help for those in the service industry.  

 In conclusion, I do not claim to be some shining knight sent from down from on high to save the lowly restaurant industry, rather just a first-time small business owner who has seen the error in my ways and has been inspired to make a change. One thing is for sure, what we were doing pre-pandemic was not working.  It is my hope that in at least some small way, my story inspires others to make a difference in their own businesses, and ultimately the entire industry. 

-Chef Joey Ward