This post was last updated on Nov 14, 2019.
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By involving your staff in financial meetings and decisions, they understand their actions add up significantly and contribute to your underlying profits. They’ll be incentivized to make better business decisions and use as much of the inventory as possible and reduce waste.
“We believe that if we take this concept and educate the team about the financial realities of a business and make them more conscious of what makes the business profitable, then we all win,” explains Henry Patterson, restaurant consultant at ReThink Restaurants.
Josh Lewin, of Juliet Restaurant in Somerville, says “Using open-book management and profit-sharing, we’re able to create incentives through alternative means. Everybody’s incentivized by the success of the restaurant because they play a direct role in it. The incentive in a traditional service environment is to sell as much as possible to each individual person because it’s literally your own money. What we're looking for is a more comprehensive view of what success looks like, what revenue growth looks like over time, and how our team can share the wealth.”