Raising the rates – and team spirits
It has taken nearly three-and-a-half years of endless breakdowns, service visits and letter-writing, but finally we've got a result - the manufacturer agreed to replace our rogue dishwasher with a brand new one, which was installed last week.
The one which it replaced was installed, aptly, on April Fool's Day in 1998. No one was prepared to own the problem and the manufacturer incurred substantial repair costs dealing with some 40 breakdowns. While we have had a certain amount of inconvenience, the flip side is no maintenance charges for four-and-a-half years. Every cloud has a silver lining.
In readiness for the hike in minimum rates of pay on 1 October this year, we implemented our increases on 1 August. We have always sought to pay more than the minimum, and to maintain that differential we have increased our rates by around 10%.
That increase, coupled with a results bonus and Christmas bonus, represents what we feel is a fair remuneration package.
Naturally, the increase has to be paid for somehow, so we plan to increase our prices on 1 October to a level where a cup of coffee costs £1 (up from 95p). Overall, the increase should produce 6.5% more revenue, providing that our sales mix stays the same.
This summer is the fourth in which Susan and I have hosted a BBQ at home for as many of the teams from our three restaurants as are able to come. We hold it on a Sunday evening, because that gives the best opportunity for people to attend, and see it as one way of repaying the effort which everybody puts in.
It's also an opportunity to put faces to names and voices from each branch, as well as allowing everybody to mix in an informal atmosphere. It was no surprise that the chosen night was not one of the warmest and driest, but that's one thing we can't organise.
So far this year, we have only lost two of our regular team members (that's 10%). However, suddenly we are up against it. Lynne, our manager in Scunthorpe, is in hospital, and while Dee has stepped ably into the breach we are facing several booked holidays which have to be covered.
Similarly, a full-timer in Louth is moving away, and it's holiday time there as well.
Maybe, with hindsight, it's a good thing that our new site didn't materialise - what's the price on quality of life?
JOHN DOWNS is managing director of Lincoln-based Jay-Dees Family Restaurants Next diary from John Downs: 11 October
