Change Your Culture or Die ‐Webinar Handouts 8/27/2015
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Change Your Culture or Die
We will be starting the webinar shortly!!
YOUR HOSTSYOUR HOSTS
JOE ERICKSONRESTAURANTOWNER.COM
JIM LAUBERESTAURANTOWNER.COM
INDEPENDENT RESTAURANTCHALLENGESINDEPENDENT RESTAURANTCHALLENGES
Staffing
Minimum (living) wage initiatives
Employee attitudes & work ethic
Competition
Technology
Demographic changes
Gov’t regulations / compliance
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COMMENTS & QUESTIONSCOMMENTS & QUESTIONS
WHAT’S YOUR #1 CHALLENGE?WHAT’S YOUR #1 CHALLENGE?
QUESTIONQUESTION
What does “Culture” mean to you?
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OUR DEFINITION . . .OUR DEFINITION . . .
Culture is how your people . . .
Think & Act
EXTRAORDINARY RESTAURANTSEXTRAORDINARY RESTAURANTS
Kingsport, TN
Austin, TX New York, NY
Ann Arbor, MI
“The biggest driving force in our restaurants in our culture.”
David McClaskey, PresidentPal’s BEI
CULTURECULTURE
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CULTURECULTURE
“Culture is everything!”
“Our culture gives us the tools to ride the waves, the inevitable challenges, we face in this business.”
Danny MeyerUnion Square Hospitality Group
WHAT WE DOWHAT WE DO
1. Business Management
2. Systems
3 Core Competencies
3. Culture
3 Core Resource Areas
WHAT DRIVES RESTAURANT RESULTS?WHAT DRIVES RESTAURANT RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
1. Business Management
Financial Results – P&L
AccountingCash Management
Budgeting
Marketing
Financial Statements
Inventory Mgt.
Strategic ThinkingCost Controls
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WHAT DRIVES THE GUEST EXPERIENCE?WHAT DRIVES THE GUEST EXPERIENCE?
Guest Experience
What’s the MOST important part of the guest experience?
ANSWER: Consistency & Repeatability
WHAT DRIVES THE GUEST EXPERIENCE?WHAT DRIVES THE GUEST EXPERIENCE?
Guest Experience
How do you create Consistent / Repeatable Guest Experiences?
WHAT DRIVES THE GUEST EXPERIENCE?WHAT DRIVES THE GUEST EXPERIENCE?
Guest Experience
Good Employees
2. Systems
3. Culture
“How people think & act”
Cooperation
Smiles
Trust
EnthusiasmRespect
Extra effort
Caring
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WHAT DRIVES THE GUEST EXPERIENCE?WHAT DRIVES THE GUEST EXPERIENCE?
Guest Experience
Good Employees
2. Systems
Checklists
Recipes
Procedures
FormsStandards
Guidelines
Training Manuals
Hiring Process
WHAT DRIVES RESTAURANT RESULTS?WHAT DRIVES RESTAURANT RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
1. Business Management
2. Systems
3. Culture
Good Employees
WHAT DRIVES RESTAURANT RESULTS?WHAT DRIVES RESTAURANT RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
1. Business Management
2. Systems
3. Culture
Good Employees
What’s the ENGINE that powers your RESULTS?
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WHY IS CULTURE SO CRUCIAL?WHY IS CULTURE SO CRUCIAL?
Your People
Service
Speed/Timing
Hospitality
ConsistencyFood & Beverage
Cleanliness
Complaints
Your PEOPLE Drive Your
Guest Experience
Accuracy
3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS3 STEPS TO EXTRAORDINARYRESTAURANT SUCCESS
1. Find out what they want
2. Go & get it
3. Give it to them
Food, beverage, atmosphere, look, service style, price, cleanliness, speed
Location, facility, design, ambience, menu, recipes, quality, staff
Execution, consistency, training, timing, service, hospitality, business management
Startup
Is it a “Good Restaurant?”
Is it a Good Business?
CULTURE
WHERE CULTURE CHANGE CAN HAVE
THE GREATEST IMPACT
WHERE CULTURE CHANGE CAN HAVE
THE GREATEST IMPACT
Independent owners who have built a good RESTAURANT and now have a strong desire to make it a GREAT BUSINESS.
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WHAT BUSINESS ARE YOU REALLY IN?WHAT BUSINESS ARE YOU REALLY IN?
Success in the restaurant business is ultimately about the experiences you provide your guests
“AND” employees.
You’re in the EXPERIENCE business!
WHAT BUSINESS ARE YOU REALLY IN?WHAT BUSINESS ARE YOU REALLY IN?
THE GUEST EXPERIENCETHE GUEST EXPERIENCE
High Positive
So So Little to None
None Negative
Extraordinary
Bad
Good / Average
Loyalty WOM
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WHAT DRIVES YOUR RESULTS?WHAT DRIVES YOUR RESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Guest Experience
Employees
WHAT DRIVES YOUR GUEST EXPERIENCE?WHAT DRIVES YOUR GUEST EXPERIENCE?
Sales $ Profit $Costs & Expenses- =
WHAT DRIVES YOUR EMPLOYEES?WHAT DRIVES YOUR EMPLOYEES?
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WHAT HAPPENED?WHAT HAPPENED?
Did they lose their ability to do the job?
Was it a hiring mistake?
WHAT HAPPENED?WHAT HAPPENED?
What if the employee experienced . . .
Minimal training
Nobody cared
No feedbackNo recognition
Unfriendly
Low standards
Little support
Started on a Friday
WHAT HAPPENED?WHAT HAPPENED?
The employee likely experienced . . .
A Negative Culture
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WHY CULTURE?WHY CULTURE?
What kind of employees do you need to produce better guest experiences and better results?
CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE
• Cooperation
• Enthusiasm
• Smiles
• Teamwork
• “What else can I do?”
• Flexibility
• Respect
• Accountability
Strong Culture ‐
Engagement
CHARACTERISTICS OF CULTURECHARACTERISTICS OF CULTURE
Weak Culture ‐
• Cover your tail
• Blaming others
• “It’s not my job”
• Mediocrity
• Criticism
• Distrust
• Excuses
• Whining & complaining
Indifferent people cannot deliver extraordinary guest experiences
Indifference
Indifferent people create an environment where “nice” people
don’t want to work
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Culture drives yourEmployee Experience
IMPACT OF CULTUREIMPACT OF CULTURE
RO SURVEY RESULTSRO SURVEY RESULTS
69%
RO SURVEY RESULTSRO SURVEY RESULTS
63%
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RO SURVEY RESULTSRO SURVEY RESULTS
Very Challenging 55%
THE IMPACT OF CULTURETHE IMPACT OF CULTURE
Guest Experience
Employee Experience
Sales $ Profit $Costs & Expenses- =
Culture produces Results
CONCLUSIONCONCLUSION
(The thinking & actions of your people are producing your RESULTS)
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Stop focusing on financial performance!
CONCLUSIONCONCLUSION
(Instead, concentrate your efforts on changing your CULTURE)
Primary job of a leader is to create the right CULTURE to get the
RESULTS you want
CONCLUSIONCONCLUSION
(Your CULTURE is producing your results)
LEADERSHIPLEADERSHIP
When you create a strong Culture, you become a great
leader by default!
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HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
“Do this . . .”
VALUES
ACTIONS
HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
Management “Do this . . .”
VALUES
ACTIONS“Do this”
HOW CULTURE IMPROVES RESULTSHOW CULTURE IMPROVES RESULTS
“Do this . . .”
VALUES
ACTIONS
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You can’t change people’s VALUES (beliefs)
You can’t read people’s minds
You can’t measure change in people’s thinking
THE CULTURE CHANGE PROCESSTHE CULTURE CHANGE PROCESS
VALUES
ACTIONS
Misunderstandings about working on VALUES (beliefs):
How do things REALLY work around here?
What does the owner REALLY care about?
What should I REALLY look out for?
When the New Employee asks . . .
COMMONLY HELD BELIEFS IN YOURRESTAURANTCOMMONLY HELD BELIEFS IN YOURRESTAURANT
Mgt doesn’t care about food cost
Food cost doesn’t affect me
No one notices missing products
This restaurant is highly profitable
My ideas don’t matter
VALUES / BELIEFSVALUES / BELIEFS
Desired RESULT: Lower Food Cost -
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Management provides the EXPERIENCES that promote the VALUES (beliefs) in the
restaurant
VALUES / BELIEFSVALUES / BELIEFS
EXPERIENCES
ACTIONS
VALUES
Current Beliefs: Mgt doesn’t care about food cost
Food cost doesn’t affect me
No one notices missing products
This restaurant is highly profitable
My ideas don’t matter
Desired RESULT: Lower Food Cost -
BELIEFSBELIEFS
Current Experience: Mgt doesn’t measure food cost
Food cost is never or rarely discussed
Products are never counted
Owner has a new BMW
Mgt never asks me for ideas
How to you change VALUES/BELIEFS?
THE RESTAURANT CULTURECHANGE PYRAMID
THE RESTAURANT CULTURECHANGE PYRAMID
ACTIONS
VALUES
EXPERIENCES
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THE RESTAURANT CULTURECHANGE PYRAMID
THE RESTAURANT CULTURECHANGE PYRAMID
EXPERIENCES
ACTIONS
VALUES
THE RESTAURANT CULTURECHANGE PYRAMID
THE RESTAURANT CULTURECHANGE PYRAMID
EXPERIENCES
ACTIONS
VALUES
THE RESTAURANT CULTURECHANGE PYRAMID
THE RESTAURANT CULTURECHANGE PYRAMID
ACTIONS
VALUES
EXPERIENCES
Management“Do this . . .”
Leadership
Culture
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THE LAW OF CAUSE & EFFECTTHE LAW OF CAUSE & EFFECT
Your restaurant’s current results are “PERFECT”
The “CAUSES” are creating predictable “EFFECTS”
CAUSES – Leader’s values, beliefs, decisions, actions.
EFFECTS – Team’s experiences, values, beliefs, actions.
3 WORLD CLASS STRATEGIES
1. Mission
2. Rules of the Game
3. The 90 Day Challenge
THE RESTAURANT CULTURECHANGE PYRAMID
THE RESTAURANT CULTURECHANGE PYRAMID
EXPERIENCES
ACTIONS
VALUES
90 Day Challenge
MissionRules of the Game
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MISSION
Why does your restaurant exist?
What do you want to accomplish?
What would your employees say?What would your employees say?
MISSION
Why EVERY Restaurant Needs a Mission?
Gives meaning & purpose to every activity
Provides a “high performance challenge”
Becomes the basis for standards & accountability
Will help you pull your people together as a team
Will help you recruit & retain the right people
MISSION
1. What your company does
2. Who you do it for
3. Result(s) you want to achieve
Should contain 3 elements ‐
Must be: Clear & Succinct
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MISSIONMISSION
“To nourish and delight everyone we serve.”
“Our mission is to become world famous by delighting one guest
at a time.”
MISSIONMISSION
“To guarantee that every guest is delighted because of me.”
MISSIONMISSION
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“Our mission is to thoroughly delight our guests through such unparalleled hospitality, service and culinary excellence that they will rave about their experiences and have no
choice but to return.”
MISSIONMISSION
MISSIONMISSION
MISSION STATEMENT COMPONENTSMISSION STATEMENT COMPONENTS
Pal’s Sudden Service ‐
What they do To delight . . .
Who for our customers . . .
Result . . . creates loyalty.
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MISSION
What does your restaurant do?Is it clear what your restaurant does?
Who do you do it for?Is it clear who you do it for?
What result do you most want to achieve?Is it clear what result you want to achieve?
Crafting your mission ‐
IMPLEMENTING YOUR MISSION
1. COMMUNICATE the mission
Owners & managers must ‐
COMMUNICATING YOUR MISSION
Interviews
Orientation & training sessions
Training manuals, handbooks
Management meetings
Pre‐shift meetings
Decision‐making discussions
Whenever the opportunity arises
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IMPLEMENTING YOUR MISSION
1. COMMUNICATE the mission
2. MODEL the mission
3. COACH the mission
4. PRAISE progress toward the mission
5. REDIRECT resistance/roadblocks to the mission
Owners & managers must ‐
MORE REASONS YOU NEED A MISSION
Will greatly enhance your leadership effectiveness
Becomes the impetus for continuous improvement
It’s obvious who should leave
Can make working at your restaurant more than just a job
It becomes easier to manage & coach your people
MISSIONMISSION
“It makes it very easy to sit down with people to discuss what your standards are based on your mission statement without emotion. When you take out that emotion, there is no more stress when you know you have to discuss disciplining your employees.”
Brian Bailey, Owner & ChefThe Bistro at Marshdale
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“You say, Listen, we’ve had this discussion, you know what our business is about. If you’re not showing up on time we can’t provide the customer experience that we say we’re going to provide. If you don’t have the right attitude, then it doesn’t match our mission.”
Brian Bailey, Owner & ChefThe Bistro at Marshdale
MISSIONMISSION
3 WORLD CLASS STRATEGIES
1. Mission
2. Rules of the Game
All Organizations Need a Framework of Rituals & Rules
What’s acceptable and not acceptable
How things are done
What is expected of everyone
How we interact with each other
How we hold each other accountable
RULES OF THE GAMERULES OF THE GAME
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MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”
SAFE
According to a 2011 Monster.com survey . .
“66% of respondents admitted to being a victim of workplace bullying”
MANY WORKPLACES ARE NOT SAFE ZONESMANY WORKPLACES ARE NOT SAFE ZONES
SAFE
Honesty
RespectCourtesy
Transparency
Trust
Caring
Consistency
MAKE YOUR RESTAURANT A “SAFE ZONE”MAKE YOUR RESTAURANT A “SAFE ZONE”
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CREATING A “SAFE ZONE”CREATING A “SAFE ZONE”
Customers will never love a company until the employees love it first.
- Simon Sinek
HAVE YOUR OWN
“RULES OF THE GAME”HAVE YOUR OWN
“RULES OF THE GAME”
1. Do your best
2. Do the right thing
3. Show people that you care
Basics
Goal is to create a climate for cooperation, transparency and hospitality to thrive.
Goal is to create a climate for cooperation, transparency and hospitality to thrive.
HAVE VALUES THATEVERYONE IS TO LIVE BY
At LongHorn Steakhouse our Core Values are the ruling cornerstone behind every decision we make. We believe in them and manage our restaurants accordingly.
We treat each other with DIGNITY, RESPECT, HONESTY and INTEGRITY.
We hire GREAT PEOPLE, we set CLEAR EXPECTATIONS, we provide regular feedback and we CELEBRATE great performance.
We function as a TEAM, "we all look good together, we all look bad together."
We are COMMITTED to continuous TRAINING and DEVELOPMENT.
We ACT GUEST FIRST, we DO IT RIGHT or FIX IT FAST.
We believe in CONTINUOUS IMPROVEMENT, in getting better day‐by‐day and shift‐by shift.
We are a GOOD BUSINESS CITIZEN…we follow the law and we POSITIVELY CONTRIBUTE to our community.
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BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
K&N Management ‐
Friendly
Engaging
Authentic
Harmony
Strong work ethic
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
BEHAVIORAL NORMSHOW WE ARE EXPECTED TO ACT
Pal’s Sudden Service “No Gossip” Rule ‐
Talking about team members when they aren’t there
Anything you wouldn’t say to a person’s face
Why? Can be disruptive to work climate, morale, teamwork
Gossip can affect the mission
3. THE 90 DAY CHALLENGE3. THE 90 DAY CHALLENGE
Create a New Accountability Structure ‐
Everyone is responsible for finding & reducing waste
Everyone is responsible for delighting the guest
For the next 90 days, everyone responsible for 2 new ideas a month to reduce waste or delight our guests
The status quo is not an option
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** CAUTION **** CAUTION **
Please do NOT embark on ANY culture change initiative unless you are 100% committed to seeing it through!
GAUGING YOUR CULTUREGAUGING YOUR CULTURE
On a 1 to 10 scale, how would you rate your restaurant’s culture today?
GAUGING YOUR CULTUREGAUGING YOUR CULTURE
1. In the last seven days, have you received recognition or praise for doing good work?
2. Do you feel someone in management cares about you as a person?
3. Do you feel like your job matters?
4. Do you feel like you’re in on things and know what’s going on in the restaurant?
5. In the last six months, has someone talked to you about your progress?
How would your employees answer these questions?
* From The Gallup Organization Q12 Survey
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CHANGING YOUR CULTURECHANGING YOUR CULTURE
What’s one thing that you could begin doing or stop doing now that would improve your culture?
What type of changes in your restaurant would you expect to see if your culture rating moved up a few points?
CHANGING YOUR CULTURECHANGING YOUR CULTURE
WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Sales $ Profit $Costs & Expenses- =
Guest Experience
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WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Guest Experience
Sales $ Profit $Costs & Expenses- =
Employee Experience
Culture
WHAT DRIVES YOURRESULTS?WHAT DRIVES YOURRESULTS?
Sales $ Profit $Costs & Expenses- =
CultureChange Your Culture. Change Your Results.
Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture to Create More Loyal Guests & Positive WOM
Dates: October 12-14, 2015
Location: San Antonio, Texas
RestaurantOwner.com/culture
3 DAY WORKSHOP3 DAY WORKSHOP
Change Your Culture or Die ‐Webinar Handouts 8/27/2015
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SAN ANTONIO WORKSHOP – MAY 2015SAN ANTONIO WORKSHOP – MAY 2015
With 35 years in the restaurant and hotel business, this was the best and most impactful workshop I've attended. The subject matter is so relevant and important today and is becoming more and more so. It is a subject that many put words to but I've never experienced before getting a detailed step by step road map to implement successfully. If one has the desire to improve their culture this will give you all the tools. We saw meaningful results within weeks.
Gene SingletonThe Boat HouseBaltimore, MD
COMMENTS FROM MAY
WORKSHOP ATTENDEESCOMMENTS FROM MAY
WORKSHOP ATTENDEES
Thank you for sharing all this information at your workshop, it was the best workshop I have ever been to. There are no guarantees in the hospitality industry, but following the guidelines from this workshop is as close as it will ever get. We have shared our P&L’s with you and I am pleased to tell we will exceed our expectations this year. It has been directly affected by our New Culture, Systems & Positive WOM. We are currently ranked #1 & 2 on Trip Advisor. Our Staff continues to learn and grow every day.
Bob TheszNew England Fish Market & RestaurantJensen Beach, FL
COMMENTS FROM MAY
WORKSHOP ATTENDEESCOMMENTS FROM MAY
WORKSHOP ATTENDEES
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The culture at Petra was mediocre when we started this journey. When we focused on creating a culture of accountability, it was like a weight had been lifted off everyone’s shoulders. Smiles became part of our uniform! Our guests have noticed the change! Our reviews on Yelp, Facebook, Google and Trip Adviser are consistently better and our guest service is mentioned often! So not only is our team proud of the improvements, but our reputation has grown into one of excellent service. Our loyal guest count continues to grow each week and we see many new faces coming to experience Petra.
Bonnie LongPetra Restaurant VenturesMcKinney, TX
COMMENTS FROM MAY
WORKSHOP ATTENDEESCOMMENTS FROM MAY
WORKSHOP ATTENDEES
Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM
Dates: October 12-14, 2015
Location: San Antonio, Texas
3 DAY WORKSHOP3 DAY WORKSHOP
RestaurantOwner.com/culture
WHAT BUSINESS ARE YOU REALLY IN?WHAT BUSINESS ARE YOU REALLY IN?
Success in the restaurant business is ultimately about the experiences you provide your guests
“AND” employees.
Change Your Culture or Die ‐Webinar Handouts 8/27/2015
Copyright © 2015 RestaurantOwner.com 34
Achieving Extraordinary Results with Ordinary PeopleHow to Unleash the Power of Culture & Systems to Create More Loyal Guests & Positive WOM
Dates: October 12-14, 2015
Location: San Antonio, Texas
RestaurantOwner.com/culture
3 DAY WORKSHOP3 DAY WORKSHOP
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