In hospitality venues, managers and chefs are the backbone of daily operations. They oversee staff, maintain quality, and ensure customers have a great experience. However, the most successful venues are those where managers and chefs go beyond these responsibilities and think like owners. By taking a vested interest in the financial health of the business, they can make decisions that not only improve operations but also drive long-term profitability.
Here’s why fostering an ownership mindset in managers and chefs is critical and how it benefits the venue.
1. Understanding the Financial Impact of Every Decision
Owners constantly evaluate how decisions affect the bottom line, and managers and chefs should do the same.
- Chefs: Every menu item, portion size, and stock order influences food COGS (Cost of Goods Sold). A chef who understands this will work to keep COGS within industry benchmarks.
- Managers: Rostering decisions directly affect wage percentages. Managers who compare wages to sales daily can align staffing with demand and avoid overspending.
When managers and chefs think like owners, they weigh the financial consequences of their choices, leading to smarter, more strategic decisions.
2. Taking Accountability for Results
Owners are held accountable for the venue’s financial performance, and instilling this mindset in managers and chefs fosters ownership over their areas of responsibility.
- Chefs: Should track food COGS weekly, ensuring waste is minimized and portion sizes are consistent.
- Managers: Must monitor wage percentages, sales, and operational KPIs regularly, adjusting where necessary to meet targets.
This accountability drives continuous improvement and ensures everyone is working toward shared goals.
3. Aligning Daily Actions With Profitability Goals
An ownership mindset helps managers and chefs see how their daily actions contribute to the venue’s profitability.
- Chefs: Creating kitchen rosters that align wages with food sales ensures labor costs stay under control while maintaining quality.
- Managers: Monitoring total sales and wage percentages daily allows for adjustments that keep staffing efficient and costs aligned with revenue.
When profitability becomes part of their mindset, managers and chefs ensure their decisions support the venue’s long-term success.
4. Encouraging Proactive Problem-Solving
Owners anticipate challenges and address them before they escalate. By thinking like owners, managers and chefs can adopt the same proactive approach.
- Chefs: If food COGS are trending too high, they can immediately investigate issues like waste or supplier costs.
- Managers: If daily sales are lower than expected, they can implement promotions or adjust rosters to protect margins.
Proactive problem-solving minimizes risks and keeps the venue running smoothly, even in challenging conditions.
5. Fostering Collaboration Across Teams
Ownership-minded leaders understand that collaboration is key to success. By working together, chefs and managers can:
- Align Goals: Both teams can focus on improving KPIs like food COGS, wage percentages, and overall sales.
- Support Each Other: A chef’s efficiency in the kitchen can reduce FOH bottlenecks, while a manager’s rostering decisions can ensure the kitchen has the support it needs during peak times.
Collaboration ensures that everyone is working toward a unified vision, improving both operations and profitability.
6. Real-Life Example: Turning Financial Knowledge Into Action
One client’s venue struggled with high labor costs and inconsistent food COGS. Weekly coaching sessions focused on:
- Chefs: Understanding how their portion control and purchasing decisions affected food COGS. They began implementing theoretical food COGS tracking and conducted regular stocktakes.
- Managers: Monitoring total wage percentages and adjusting rosters daily to align labor costs with expected revenue.
Within months, both teams reported feeling more confident in their decision-making. Food COGS dropped to 28%, and wage percentages stabilized at 30%, resulting in the venue’s best operating profit in years.
7. Driving Long-Term Success
When managers and chefs think like owners, they’re not just managing today’s operations—they’re building a foundation for future success.
- Chefs: Focused on sustainable practices like reducing waste and creating efficient menus.
- Managers: Developing efficient workflows and strong teams that drive customer satisfaction and profitability.
This long-term perspective ensures the venue remains competitive and profitable in an ever-changing market.
Ownership Mindset Drives Better Results
Managers and chefs who think like owners go beyond their operational roles to take responsibility for the venue’s financial health. By understanding the impact of their decisions, taking accountability for results, and aligning daily actions with profitability goals, they become strategic partners in the venue’s success.
Encouraging this mindset through coaching, clear KPIs, and financial literacy not only improves individual performance but also drives the entire team toward sustainable growth and profitability.
