3 ways to build a profitable restaurant by staying true to your values

When building Conscious Hospitality Group, my business partner and I set out to build a business that we and our families could be proud of. With our most prominent brand, Just Poké, experiencing exponential growth this year, we are thrilled to see many years of hard work result in a doubling of our restaurants — from 15 to 31 — in our hometown of Seattle. We set out to build CHG and our brands with a shared set of values while allowing the unique development of each brand to shine through. While it is not uncommon for restaurants in our line of business to shy away from a values-first approach due to a fear of costly implementation, we have found it to be at the core of our success & leading to increased opportunities by attracting like-minded partners, customers, and dedicated team members.

1. Define your values and passions – what are they, and which ones do you want to focus on with your business?
First and foremost, when building a business with your values-first approach, you must clearly understand what your values are, and which of these values you want to incorporate into your business. Get them on paper and into your business plan. If they aren't clear to you, they won't be clear to your customers or anyone interested in your business. Having clearly defined values has many benefits, but here are a few very specific examples:

• Attract like-minded partners
  When what you stand for is clear, people with similar values will be enticed to partner with you. We've been approached by several groups that want to partner with Just Poké based on our reputation ranging from potential landlords for a new restaurant to stadiums and event spaces, like Climate Pledge Arena.
• Provide added value that retains loyal customers
  Customers are savvy and notice the details – such as whether or not your utensils are compostable, if the employees are happy, reducing waste by asking customers if they are dining in or taking out, specifying needs for utensils and lids and if the space has modifications to be energy efficient. When times get tough, price-driven customers leave for a more affordable option. If you're attracting customers with other priorities, they tend to stick around.
• Having a clear ethos gives you a head start in difficult and controversial situations whether you are directly involved or not
  We live in interesting times and consumers want to know the values of organizations more than ever before. Aside from the benefits above of putting your values at the forefront, it is much easier for your company to respond swiftly & decisively if it is ever in the spotlight for an issue or if consumers simply want to know your take on a hotbed topic. Even more importantly, we know the days are long when establishing a new brand or business in our line of work. If your business is based on your values and passions, those long days are much more manageable.

2. Know when to splurge and when to save, and harness the cost savings of procuring at scale.
When sourcing our ingredients, quality and sustainability are our highest priorities. We choose vendors that have verified third-party certifications for assurance to us and our customers that the fish we serve is sustainably caught. We pay a little more for this, and we're happy to do so. We also invest in our employees with a higher wage and benefits package that goes above industry standards. We feel this investment is a good one for our business, and our customers appreciate these efforts. Cost savings we accrue are thanks to expansion, as mentioned, we are projected to go from 15 to 31 restaurant locations this year. When purchasing supplies at this volume, premium items drop to a competitive price point. While upfront investments can be higher with this approach, increased cost savings and margins multiplied by growing locations add to a winning long-term strategy.

This brings me to my final point…

3. Consider long-term value vs. short-term gains — AKA — get real on costs related to recruitment and retention (for your employees and your customers).
The hospitality industry is infamous for high turnover and lower compensation than other career options. Happy employees stay longer when they are treated well and compensated above market rate. When word gets out that you are the kind of employer people enjoy working with, good people come to you and stay, so you can allocate your energy and resources to more innovative and exciting areas of your business. Also, not to be understated, a happy employee and their good mood are infectious — they are the touchpoint of your brand for everyone who comes into your establishments. They set the tone for their experience and whether or not they will be repeat customers. While calculating the ROI of paying a higher wage than your competitors, there is likely a more complex and big-picture approach to consider for your bottom line than simply staffing wages. Be thoughtful when considering all the magnifications of investing in your employees.

I hope this inspires you to lead with your values (if you're not doing so already), and incorporate your values into your business to be an employer you'd want to work for and a restaurant you'd want to support.