Success Story

Higher Wages & Better Benefits Leads to Happier Guests, LOWER COSTS & More Success

After 40 years in the restaurant business, Pat O'Malley knows one of the secrets to success is counter-intuitive.

"Cutting costs isn't nearly as productive as spending a little more. The more I've invested in the business, the more it makes," he observed.

Pat O'Malley's Jet Room is located on the Madison regional airport field. Floor to ceiling windows provide guests a stunning view with their meals: beautiful corporate jets and private aircraft coming and going, just 20 feet away from their tables.

"80% of our business comes to watch the planes. There aren't many places in the country where you can get this kind of experience."

Pat credits RestaurantOwner.com with changing how he approached his business.

"I learned a lot about running a profitable business from RestaurantOwner.com. Their idea that you could have a busy restaurant, but not be profitable, really hit home. I've been in that position before so the mindset shift was life-changing."

The tools on RestaurantOwner.com also helped Pat get his numbers under control.

"The prime cost tools made a huge difference in improving our costs. Nothing we've tried -- from accountants to P&L sheets - has come close."

Then he took a hard look at his hiring philosophy.

"At my last restaurant, my approach was 'Whoever I can get the cheapest will be the best.' But when times got tight, I realized our good long-term employees made the biggest difference in our guest experience and bottom line. I knew I had to do something different to attract and keep good people."

That realization led to an overhaul of the Jet Room's pay scale and employee benefits.

"We increased starting and existing wages for our staff, especially those at the lowest pay range. We added benefits for full-time employees - generous vacation, health insurance, and 401K plans. Now we find the best people we can, provide great benefits and pay them as much as we can so they enjoy their work and stay with us."

Pat raised prices to offset the employee benefits and pay bumps, but customers didn't mind the increase.

"Our guests ask how we keep such a good staff. They're happy to see the same employees every time they come in. They don't mind paying a little more for consistent service and food."

The investment in employees has paid off in other ways, too.

"Not only are our guests happy, the focus on better pay and benefits has actually decreased many of our food and labor costs. We don't have the expense of turnover, hiring and training. Our staff knows the menu, so mistakes are minimized and the food gets out faster. And morale has been great. It's amazing how harmonious things get when you don't have a revolving door."

Pat points out that it's not enough to find good people.

"A big part of what makes this system work is follow-through. You take really good care of your employees and if someone isn't pulling their weight, you need to let them go. Otherwise, the product and guest experience suffer."

Earlier this year, Pat and his wife Pam decided they were ready to sell the business. He turned to RestaurantOwner.com for advice on how to handle the difficult announcement to his team, many of whom have been with him for 20 years.

"I went on the forum and asked other members for their thoughts. One of the recommendations was spot-on and it made the dreaded announcement so much easier. We're staying on for a 12-month transition period and we're already training the new owners on RestaurantOwner.com. They love how the resources really keep you in tune with your business."