Perspective Helps!

Getting away – really away – from the workaday world is a great way to get perspective on one’s business.

Recently I was fortunate to spend two weeks in Australia. Take it from me… if you get the chance to go to Australia, take it. Australians are probably the nicest people you will ever meet. They are patient, approachable, engaging, and fun loving. The only minor issues are 1) Australians talk funny 2) getting there takes forever and 3) Aussies drive on the wrong side of the road. Avoid driving “down under” unless you want an extra dose of excitement in your visit.

Talking with restaurateurs and vintners on the other side of the world gives another perspective to the issues and challenges of the Atlanta restaurant industry. The restaurant industry there, as here, is vibrant, dynamic and challenging. Here are a few principles that unite restaurant operators from these two countries:

· Sales cover a lot of sins – Driving revenues is important in Australia as it is here. There is just no replacement for have robust and consistent revenues. Operators can make mistakes but can recover when sales are strong.
· Local and fresh ingredients are king – It is remarkable how incredibly similar to the US is the focus in Australia on fresh ingredients used “in season” and from local growers.
· Prime cost rules – No matter where your restaurant, prime cost is a critical measure of success. Restaurants that get prime cost right are likely to be profitable and long-lived.
· Talent out the ears – Increasingly well-trained, conscientious cooks can be found in the US in the most unlikely places. In Australia it is not at all unusual to run into a classically-trained chef working away in her own shop in a small “outback” town
· Diversity "It's what's for dinner" – Not long ago Australian restaurants were mostly known for fish and chips. Not unlike our own Southern fried chicken and BBQ. Thanks to more lenient immigration policies in the US and Australia new international flavors, cooking techniques, spices and dishes are flourishing.

To be sure there are major differences between operating a US restaurant and one in Australia.
· Volume is less there – Australia is a country the size of the US but with only the population of New York State. Outside of the 3 or 4 big cities, there just isn’t the population or the sales volume found in the US. And yet professionals still pursue their passion for food and wine. It makes for a slower pace of life but no one appears to mind.
· Labor is higher but tipping is less – In the US servers are typically paid $2.13/hr. So they live on what they make in tips. This has a salutary effect of encouraging servers to see that tables turn efficiently but quickly. The owner has the same objective. In Australia restaurants are required to pay servers a higher wage. Naturally this results in higher menu pricing. But tipping does not carry the same importance there. Servers make higher wages and therefore are less incented to see tables turn quickly.

Visiting other restaurant operators reminds us that some universal principles apply to our industry. It may even raise the curtain on future trends and developments we are likely to experience in our Atlanta restaurant market.