Don’t Make It “In-House”

I want to make the case for not making certain things "in house".

I know...seems lazy, short-sighted or even counterintuitive, but hear me out.

This one goes out to restaurant or food & beverage owners/operators out there…put yourself in the guest’s shoes, and a server comes to the table to share:

This is a 4-day preparation

We spend 3 days making this

That was aged for 2 years

How disappointing is it to receive that as a “spiel” only to have it be indistinguishable from something “normal”?

James Clear has this great quote, “The world rewards you for value provided, not time spent."

I’ve been thinking about that a lot this week, in an effort to help you folks find more success. On top of that, I use this as a thought exercise to personally contemplate where the industry is heading.

Time Spent

It’s easy to thrust “time” out on stage as the star of the show.

It’s objective, trackable, and easy to put in relation to things. “They only age their ducks for 5 days? Ours age for 14…

Hospitality professionals often fail to account for what is actually “valuable” to the receiving end of their work (aka the customers & guests).

Ask most chefs or line cooks why guests come to their restaurant over the one down the street and most will probably comment something about the long menu structure, a time-intensive signature dish, or the speed of service. Considering chefs have close proximity to (and take a lot of justified pride in) the food, they’ll lead with that as the main value prop.

In reality, guests get massive value from everything else the restaurant does:

  • They didn’t have to do dishes tonight

  • You curated a menu for them; they just get to pick what sounds good

  • They got to get dressed up and get out of the house

  • You offered a great food AND beverage experience, which is outside their “normal” of just ordering food for delivery

  • The allergy modifications you make allow them to comfortably bring loved ones (with restrictions) to come and have a great experience

Notice, the time you spent braising your short ribs has no impact on these details ☝️

Value Provided

I’ll hammer this home with this quote from author Corey Mintz (previous podcast guest):

Chefs should take their 30 item menu, and cut it down to 16. Outsource some of those things that you have been too prideful to admit that you don’t need to make yourself.

He’s talking about two processes here, both of which (ironically) require time investments.

One involves applying an “essentialism” mindset to what you’re offering. Ruthlessly edit out what doesn’t get you excited or isn’t selling.

Secondly, the outsourcing.

Support a small local bakery by getting your bread made by them instead of making it in house.

Call up your friend who owns a pasta place and negotiate a weekly order of tagliatelle or extruded pasta from them instead of having one of your line cooks spend 2 1/2 hours a day on it.

Get a high-quality butcher to make the pâté you serve on your appetizer menu and proudly feature them as a purveyor partner.

It’s going to be different from what you make now, I know. That’s the point.

Of course you make it differently than they do, but that doesn’t mean you can’t do the work to collaboratively land on a spec for that item and buy it from them, wholesale. You can also garnish it differently, serve it in a unique way, or even use it as a base to a recipe you still finish yourself.

This obsession with everything being made in the four walls of the business is rooted in a lot of good intentions:

  • Quality control

  • Differentiation

  • Proximity to the process

  • Customization

  • Uniqueness

…I completely get it. I was asked to create a bread program from scratch at my last restaurant position - it’s wildly satisfying and super fun to do.

But if that business practice comes at the expense of the length of the work week, labor cost (or profit margin), or other details that the guest actually values, it doesn’t seem worth it to me.

The opportunity

Think about it through this framework that entrepreneur Leila Hormozi has (and I’m paraphrasing):

Every time I fail to delegate something that one of my team members could do, I’m robbing from them an opportunity to learn and grow

Chances are, you’ve never even asked if you can get your mushroom-powder-infused extruded pasta made from that pasta place. But what if it wasn’t so looked down upon to ask?

They get more revenue, you save time. They're designed for production, you're designed for experiences. It’s skill-task-alignment.

How different would our industry look if there were trusted partners in pasta, stock, bread, fermentation, etc., who were given opportunities to build businesses off the back of what you need?

Then you, as the restaurant owner, can lean into what you do best in providing a great guest experience, and the entire pie grows in your community.

On top of that, it allows folks that are obsessed with “the craft” of making pasta to be employed at that pasta place that focuses on quality and consistency (without the pace or push of a restaurant).

If the last few years has taught us anything, it’s that making more in-house isn’t a guaranteed path to better guest experiences, higher profit margins or more motivated/fulfilled teams.

I think about the work that Dry Aged Fish Guy does; where the relationship is more collaborative than "he's taking something away from us".

I suppose what I’m suggesting here is a different type of structure. It sounds complicated because the last 10 years of restaurants has become incredibly tangled and convoluted - and I want to see it get better.

Similar to how us humans used to live in tribes, over-time became hyper-individualistic, and are now seeing the rise in popularity of “compound-style living”, I think the same could be possible for food & beverage businesses. We can swing the trend back the other way.

One change I personally plan on making is to not judge or diminish a restaurant’s product if it comes from a place they’re proud to partner with. In fact, I want to applaud it if it’s done well.

This obviously doesn’t give The Willow’s Inn’s Costco chicken a pass, rather, it removes the stigma that folks will get ostracized or labeled as not being “legit” if they increase their outsourcing. Other businesses do it all the time, and we should too.

How cool would it be to see the rise in popularity in “trusted prep partners” who take some load off of restaurant’s prep lists, mental load and walk-ins? This exists in large restaurant groups, but why isn’t it available for the single-location restaurant?

In SUmmary

Embracing outsourcing in restaurants is a strategic move for enhancing guest experiences.

By forming collaborations with specialized local partners, restaurants can focus on their core strengths, leading to more memorable dining experiences.

This approach not only supports the restaurant community but also leads to efficient restaurant management and heightened guest satisfaction.

Prioritizing quality dining experiences through strategic outsourcing can significantly optimize a restaurant's operations, ensuring a standout position in the hospitality industry.

If you folks know of places that do this well or where this is exemplified, share the website or contact info of the operator, because I want to interview them for the pod.

If you end up taking action in your business after reading this, let me know - I’d love to know how you use this insight!

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