See How Better Systems Creates Happy Employees, Low Turnover & Better $$ Results at The Mad Hatter Restaurant
Success Story

See How Better Systems Creates Happy Employees, Low Turnover & Better $$ Results at The Mad Hatter Restaurant

What Liz and Tim Koch, proprietors of The Mad Hatter in Anoka, MN, have most gained from their association with RestaurantOwner.com has been an appreciation of the need for "systems, systems, systems. They work, and your staff will love you for it."

The Mad Hatter Restaurant & Tea House
Owners Tim and Liz Koch
Location Anoka, Minnesota
Year Founded 1999
Concept Daily Brunch, Daily High Tea, Weekend Dinner;
Special and Private Events in the 158-year-old
Historic Woodbury House located on the Rum River
Seats 75 inside/25 patio (seasonal)
Annual Sales $880,000; on target to reach $1 million in 2017
Average Per-Person Check Brunch $22/Dinner $34
Website www.madhatteranoka.com

As Liz recounts, "We discontinued dinner service for a year because we were losing money. We decided to bring dinner back just on Friday and Saturday nights, and it's been a great success. We have used many of the templates on RestaurantOwner.com to establish systems for everything," including the restaurant's hiring process, job descriptions, handbooks, reviews, checklists and more.

"Our staff loves that we are systematized," she adds. "It takes the guess work out for them, and sets a standard that they all achieve to reach."

Koch also hired a business coach, which she calls "the best investment we could have ever made." The step was taken so that she and her husband could "learn everything we needed to know to become successful restaurant owners. Neither Tim nor I have hospitality or foodservice backgrounds or experience. We moved from a smaller location in the summer of 2014, and offered high-tea service and a small lunch menu only. We had seating for 30 and were dead in the water. We couldn't generate enough income to make our business profitable, and we knew we needed a new location."

The pair had become aware of the issue due to the restaurant's constant turnover and employees being, in her words, "afraid of our chefs." Having established systems in place brought employee turnover to a screeching halt," Koch underscores. "We hire better, train better, reward and recognize better and have a great team mentality. No more frustration or hostility between the back and front of the house."

The couple approached Anoka officials when they learned the city had purchased The Historic Woodbury House, and asked them what they thought of them renting the property in order to expand and remain in the city.

See How Better Systems Creates Happy Employees, Low Turnover & Better $$ Results at The Mad Hatter Restaurant

"They extended an RFP (request for proposal), meaning the city was going to review all proposals that people submitted," she says. There were several elements that had to be submitted with each RFP, including projected P&L's and a business plan. "We used the templates on RestaurantOwner.com, which took all the guesswork out of what to do. It was hard work, but the basic information was there for us. We would not have had such a solid proposal if we didn't have the resources and tools available on RestaurantOwner.com."

The process helped by eliminating the need for employees to guess about what they should do, and by establishing what she deems a "culture of excellence." Since then, Koch has seen "minimal" turnover and maintained a "great staff that are happy to come to work and work hard for us with enthusiasm. Our sales are up and costs are down."

In the months to come, Koch promises to create more special events aimed at increasing revenues and help The Mad Hatter become a more prominent and unique establishment. Bottom line, RestaurantOwner.com has also helped by permitting Koch and her husband to "work less hours, with less stress, have happy employees and make more money."