 Hey guys, my name is Wilson. Today I'm going to be sharing with you the three red flags on firing your staff because if your cost of goods those are skyrocketing through the roof or your everyone hates your staff or you have these crazy negative reviews, you know that something is going on. Which is the reason why I'm going to be sharing with you the three red flags that you must see and whenever you spot you should fire that stuff right away. And on the topic how do you actually fire your staff? We're going to be jumping into that at the end of the video. Make sure you guys stay tuned. Otherwise let's dive right into the three red flags. Number one red flag is your numbers. And what I mean by that is if you've been running your business for the last year or two years and your cost of goods sold range from 20 to 25 percent and all of a sudden you hire this new cook and your cost of goods sold skyrocketed to 30 percent, 35 percent, 40 percent then you know something is wrong. And it is because of the fact that most likely they're either not handling your delivery of your cost of goods sold or your ingredients properly because you have a lot of wastage and in turn the the ingredients that goes to waste does not generate revenue for you which in turn increases your cost of goods sold as a percentage of your revenue. Another problem that may occur is that they keep giving up free food. They keep serving different items and they might be working with your friend of a house staff and giving them free food. They may be giving free food to all your staff and all your employees and that itself does not generate revenue which in turn dries up your cost of goods sold. Which is the reason why it's super important for you to understand and know your numbers. When you're actually tracking your numbers then you would know when these spikes happen and these irregular things happen. So super important to be able to track your numbers cost of goods sold is one high indication of something that is going wrong. So for example if you hired a new manager for that matter instead of a new chef and your cost of goods sold is really high then instead of not handling with delivery of the ingredients your managers might be comping a lot of meals they may be giving away a lot of meals to clients and customers and in turn that drives up the cost of goods sold but the revenue stays flat which means that your cost of goods sold are once again higher. They might be actually stealing money from you as well because if they don't put and they don't enter that meal into the POS system and in turn they have the food that is being served your cost of goods sold are increasing whereas your revenue is staying plateaued then that's why your cost of goods sold as a percentage would increase right because at the end of the day for every meal that you serve your revenue should go up so it's proportional right so after you actually understanding your numbers it is super important so whenever you have staff that you bring on board and these numbers are changing then that means something is wrong. Another example of not knowing your numbers is the labor cost okay and so what I mean by that is when you hire a manager they're doing your scheduling for you and all of a sudden your labor cost is going up from 10% or from 20% to 25% to 30% then that means they're not utilizing your staff properly then that means that your staff has a lot of idle time that means your staff has you have too many staff in your restaurant all at once right so it's up to your manager's job and duty in order for them to lower and maintain a certain level of labor costs for your food and beverage business so these are all very very key red flags knowing your numbers is something that you must must do when you're running a business because this itself is a red flag that you should always look at when figuring out whether you're someone that you hired was a bad apple or not. The second red flag that you should definitely look at are reviews okay when I'm talking about reviews we're talking about in-person reviews we're talking about online reviews from really online sites like Facebook like Yelp you need to make sure you keep a very very close pulse of what the review is like for your restaurant if you're not always there so for me because I'm not always at my restaurant I keep a very close eye in terms of all the reviews that we generate because I need to understand is and are my managers managing the shop properly and if I see a lot of negative reviews about the service that is being provided at my shop then I know exactly that something is going on at my shop whether my manager is not managing properly or my manager is having a poor attitude all the time then I know that is something that I should all attend to and start firing because they don't have that customer service needed in this industry. At the end of the day you need to make sure that you talk to your customers as well because they're the one that really gives you the honest feedback so many times we fail to talk to our customers because we don't feel like we need that outside insight we don't need that communication with them this is something that is completely not true you are serving your front line your customers are the receiving end of it so at the end of the day it's not about what you serve it's about what they receive and how they feel like they're being received how they're being preserved which is the reason why it's so important for you to talk to your customers to get the feedback directly from the horse's mouth okay so if and when you're talking to your customers your regulars and they're telling you that hey you know what you should look out for this staff or that staff or you know what I'm having poor service then you know that that staff that is on duty is someone that you should consider firing or giving them proper training or at the end of the day just identifying your values and how you want things done okay so it's super important for you to be able to keep tabs with your staff either in person or on reviewed sites like facebook and yelp the third red flag that would show up that shows you something is going on when your restaurant is turned over and what i mean by that is if all of a sudden a lot of staff are quitting for for no apparent reason they don't talk to you don't talk to them but then they're quitting they're like oh they're not happy then you know something is wrong you know that something or someone is the bad apple that is poisoning the rest of the pool and it's up to you to make sure you investigate and not just take these resignation letter as is don't just accept it for the fact because of the industry because this is a high turnover industry no never do that understand interview have an exit interview with every single staff that quit and truly understand why is it that they're quitting it is because when someone is quitting there's no vested interest they're going to give it to you as is so for them they're not going to be biased they're going to tell you something is going on and those answers and those feedback are just so invaluable for your business it could be other staff that is making a scene harassing the rest of the staff which is the reason why they don't feel safe and don't work there anymore or it is because your manager is not giving them and treating them fairly giving them enough shifts or treating them like crap you know at the end of the day it's up to you to investigate what is truly going on and for that matter you could be the one that is the problem you could be the one that is having that red flag in your customer and your staff's point of view which is the reason why it's so important to receive and conduct these exit interviews when people are quitting and when you have this irregular spike of turnover then you know something is wrong and if you're depending on your manager to manage your staff then you know that you need to look into your manager's performance and if you talk to them if you align with them and still things are not improving then you know that is cause for termination so there you go the three red flags that you should be truly aware of and very very clearly keeping an eye out on when running your food and beverage business now that you understand that something is going on you figured it out that it was your manager who is your friend for five years and now you want to fire them because they're not treating your staff properly and you talk to them and now you're trying to fire them how do you fire them that's the biggest question and that's the most difficult thing that I always encounter because human nature we don't like conflict we don't like talking about these things which is the reason why so many people struggle with firing people how do you fire them initially if you set the bar right and if you set the expectation right firing becomes super super easy and what I mean by that is when you first onboard someone when you first onboard a friend when you first onboard a manager clearly identify your expectation for them whether it is values great what kind of values do you do you do you have and how is it that you want to manage your your staff how is it that you want to run your business make sure you guys align in the values because if you don't when your manager do something differently and you expect something differently then there you go that's a clash but when you align with the values if you know whoever you're bringing on board should be and likes to do things your way then you know that conflict would not exist because they'll always do things the right way which is your way okay so aligning that expectation and aligning that value right from the get go is key when you want to be able to onboard someone now let's say that they don't live up to that value and that they don't serve the customers right because you know what at the end of the day they're just not enjoying their job but whereas when you hired them they said that that's what they're that's what you're expecting when these things don't align and when you're clear about it right from the get go then that manager that you hired that friend that you hired knows exactly that they're not a right fit for your organization which is the reason why they'll they'll understand it's a easy conversation when you talk to them you're like hey you know what I understand right from the get go your expectation was to hire someone that's gonna you know bite their tongue all the time that's gonna give super 200% in customer service but you know what unfortunately right now I'm not in a place to do so so you know what I understand need to part ways it's super simple like that firing becomes much more like a conversation because the expectation is set right from the get go right vice versa if you tell your staff that you're paying them 15 bucks an hour that you know what you have all these kind of holidays and in turn you don't provide that from them and that they don't it doesn't meet their expectation then in turn they might quit on you because the visions don't align expectations don't align and you know very well the reason why they quit it is because you're not living up to your end of the bargain not meeting up their expectation so at the end of the day how do you fire someone make sure you set the right expectation right from the get go this makes firing someone super easy and it makes firing someone much more like a conversation because it's not the right fit okay so now you know the three red flags to look for you know how to fire someone go out there and fire all the bad apples I really hope you have enjoyed this video if you did enjoy this video make sure you guys subscribe along the journey in the link below I've listed everything that I've learned in the last 10 years okay from choosing the right location to getting free rent to jumping into the minds of the customer and offering them exactly what they want and what they need to marketing principles that allowed us to grow our ice cream shop international chain all this in the link below so if you guys are serious about building a food and beverage business I would highly recommend you check out the link below otherwise subscribe along the journey smash that like button show me some love I'll see you guys in the next video