In this episode of the Running Restaurants podcast, Jaime Oikle and Roger Beaudoin explore how artificial intelligence (AI) is revolutionizing the restaurant industry. They discuss AI's role in tackling labor shortages, cutting costs, optimizing inventory, and enhancing menu engineering. Real-world examples illustrate how AI boosts efficiency and profitability, while creative menu descriptions and new revenue ideas are highlighted. Despite these technological advances, the hosts emphasize that genuine hospitality and personal guest service remain crucial, urging operators to use AI as a tool to support—not replace—the human touch that defines memorable dining experiences. Find out more at https://www.runningrestaurants.com

Highlights Include:

- Impact of artificial intelligence (AI) on the restaurant industry

- Addressing labor shortages and rising costs through technology

- Importance of menu engineering and inventory management

- AI's role in enhancing guest experience while preserving hospitality

- Demand forecasting using historical data for better decision-making

- Reducing waste and optimizing inventory with AI solutions

- Improving menu descriptions and item naming for increased sales

- Generating new revenue streams and innovative profit center ideas

- Balancing technology with personal guest service and human connection

- The evolving role of AI as a competitive tool in restaurant operations

Timestamps:

What is AI? (00:00:47)

Roger explains artificial intelligence basics, how it learns from data, and its growing role in restaurants.

Current Restaurant Challenges (00:01:09)

Discussion of labor shortages, rising costs, shrinking margins, inefficiency, and the need for better systems.

AI's Rapid Evolution & Search Capabilities (00:02:04)

AI's fast-changing nature, comparison to Google, and how AI provides instant, accurate answers.

AI for Demand Forecasting & Inventory (00:02:55)

How AI predicts demand, improves ordering, reduces waste, and uses historical data for better inventory management.

Menu Engineering with AI (00:03:46)

Real-world example of a chef using AI for menu engineering, recipe creation, and ingredient cross-utilization.

Profit Loss & Menu Descriptions (00:04:47)

Pain points: lost profits, generic menu items, lack of costing, and using AI for creative menu naming.

Creating Wow Factor & Social Media Appeal (00:05:40)

Importance of wow factor in food presentation, guest reactions, and leveraging social media marketing.

New Revenue Center Ideas (00:07:10)

Using AI to brainstorm new profit centers beyond traditional options like catering or live music.

Hospitality vs. Technology (00:07:30)

Emphasis on maintaining hospitality as the foundation, ensuring technology enhances but doesn't replace the human touch.

https://restaurant.mysamcart.com/products/

In this episode, Roger Beaudoin of Restaurant Rockstars explains the crucial concept of prime cost in the restaurant industry (the combined percentage of food, beverage, and labor costs relative to sales). He discusses strategies for managing prime cost, such as accurate menu costing, promoting high-profit "cash cow" items, enforcing portion control, boosting alcohol sales, and efficient labor scheduling. Roger shares real-world examples of restaurants losing profits due to poor menu management and emphasizes the importance of understanding item profitability. The episode highlights how effective prime cost management is essential for restaurant profitability, especially amid rising costs and industry challenges.

We hit on:

- Definition and importance of prime cost in the restaurant industry

- Breakdown of prime cost components: food, beverage, and labor costs

- Industry benchmark for prime cost and its implications for profitability

- Challenges faced by restaurants, including inflation and rising wages

- Strategies for managing prime cost, including menu costing and portion control

- Identification and promotion of high-profit "cash cow" menu items

- Importance of increasing alcohol sales to enhance profitability

- Effective labor cost management through efficient scheduling

- Consequences of poor menu costing and its impact on profit margins

- Need for ongoing analysis and adjustment of menu items to optimize profitability

Timestamps

Introduction to Prime Cost (00:00:00)

Roger explains the concept of prime cost and its importance over just focusing on food cost.

Prime Cost Formula and Benchmark (00:00:05)

Breakdown of the prime cost formula, target percentage, and what it means for restaurant finances.

Other Major Expenses Beyond Prime Cost (00:00:59)

Discussion of additional expenses like lease, utilities, and the importance of keeping prime cost low.

Strategies to Lower Prime Cost (00:02:03)

Emphasis on menu costing, identifying high-profit items, and the impact of inflation and wages.

Cash Cow Menu Items and Portion Control (00:03:04)

Explanation of "cash cow" items, portion control, and the profitability of alcohol sales.

Labor Cost Management (00:04:04)

Advice on tracking labor costs and efficient scheduling to control prime cost.

Lost Profit from Poor Menu Engineering (00:04:52)

Roger shares real-world examples of restaurants losing profit due to poor menu costing and engineering.

Menu Re-engineering for Profitability (00:06:03)

Advice on re-engineering menus so all items in a category have similar profit margins.

Consequences of Not Costing the Menu (00:06:59)

Highlighting the financial risks and lost profits from not properly costing out the menu.

Worst Case Scenario: Popular but Unprofitable Items (00:07:13)

Warning about the danger of selling popular items that are not profitable, hurting the bottom line.

Find out more at: https://www.restaurantformula.com/

https://restaurant.mysamcart.com/products/

More than social media influencers and online reviews, your most important marketing resource is your loyal guests. Through trackable marketing, you can ensure they will keep coming back and will talk about you even beyond the table. Jaime Oikle sits down with Roger Beaudoin of Restaurant Rockstars to discuss how to keep track of your marketing strategies and boost guest frequency. They discuss how to train your team to constantly deliver impeccable services and offer customer incentives to attract new guests and retain the most loyal ones. From mug clubs to trivia nights, discover interesting ways to encourage people to visit your restaurant over and over again.

Find out more at https://restaurantrockstars.com/ & https://www.runningrestaurants.com.

https://restaurant.mysamcart.com/products/

Restaurants have to go the extra mile and go beyond food if they want to stay relevant and keep their seats filled at all times. Through the right content creation strategies, you can use social media to your advantage and keep guests coming back. Jaime Oikle sits down with Samantha Flynn, founder of Junipr Public Relations, who breaks down practical tips to market your restaurant in the vast online space, even with a tight budget. From fixing early branding mistakes to highlighting your very own signature dish in your posts, she explains what it takes to tell your story through social media, drive real traffic, and bring customers to your tables.

Find out more at https://juniprpublicrelations.com & https://www.runningrestaurants.com.

https://restaurant.mysamcart.com/products/

In this Running Restaurants Podcast episode, Roger Beaudoin of Restaurant Rockstars shares practical strategies for training restaurant staff. The discussion covers mentoring and shadowing multiple top performers, cross-training for versatility, and the value of daily pre-shift huddles focused on sales and guest experience. Roger also describes engaging role-playing exercises, like "How to Turn $100 into $1000," to sharpen sales skills. The episode emphasizes empowering staff, using creative sales props, and identifying unique "hooks" to boost revenue and set restaurants apart, offering actionable tips for operators to elevate team performance and guest satisfaction.

Highlights include:

- Mentoring and shadowing strategies for restaurant staff.

- Importance of learning from multiple top-performing employees ("A players").

- Cross-training staff to enhance versatility and understanding of various roles.

- Daily pre-shift huddles as a strategy for improving guest experience and sales.

- Key topics for discussion during pre-shift huddles, including guest needs and sales strategies.

- Role-playing training exercises to develop sales skills and team engagement.

- The impact of effective sales training on restaurant revenue.

- Use of props and unique selling points to enhance sales and differentiate the restaurant.

- Identifying and promoting profitable items or experiences ("hooks") to drive sales.

Find out more at https://restaurantformula.com/ & https://www.runningrestaurants.com/

https://restaurant.mysamcart.com/products/

In today’s highly digital world, maintaining a strong online visibility is a must if you want your business to thrive. But in the restaurant industry, hospitality marketing executive David "Rev" Ciancio has noted one alarming truth: many are not doing even the fundamentals of digital marketing. He joins Jaime Oikle to point out what restaurant owners and operators are missing out on if they refuse to post on social media, build a properly optimized website, and create engaging digital ads. Rev also highlights the benefits of publishing build videos regularly, setting up a rewards program for customers, and gathering client feedback to continuously improve your systems.

Find out more at https://handcraftburgers.com/ & https://www.runningrestaurants.com.

https://restaurant.mysamcart.com/products/

Choosing the right music for restaurants may not seem important from the get-go, but it is definitely a crucial aspect of your business that you must never set aside. Jaime Oikle emphasizes how your chosen playlist can make or break your restaurant environment with Ola Sars, founder and CEO of Soundtrack. He shares how they serve as a one-stop shop for businesses that want to secure the right music for their commercial needs while navigating all of its complicated licensing matters. Ola discusses their process in cultivating music for restaurant owners and employ AI tools to elevate their techniques. He also explains how restaurant managers should handle their music access, deal with explicit content, and determine the best music volume that works well for your place.

Find out more at https://www.soundtrack.io/ & https://www.runningrestaurants.com.

Sponsor Link: https://servicewithstyle.com/runningrestaurants

Sponsor Link: https://www.theleasecoach.com

A good restaurant is beloved not just because of its delicious food, but most importantly the lasting shareable experiences it offers to every single customer. Jaime Oikle sits down with Michael Tronn of 3 Hospitality and TIMBR to discuss the right way to deliver a complete restaurant experience anyone will love and remember. He explains how to perfectly combine good food, flawless service, and impactful branding to make your restaurant a certified go-to establishment. Michael also discusses why restaurant owners must always stay updated with current social media trends, where word of mouth is passed around almost instantly.

Find out more at https://www.michaeltronn.com & https://www.runningrestaurants.com.

Sponsor Link: https://www.RestaurantFormula.com

Sponsor Link: https://servicewithstyle.com/runningrestaurants