CHAPTER 9

Chef, Sous-Chef, and Kitchen Help: Employees

No matter how small your specialty food business starts out, you may find a time when you need to hire help. Perhaps it is just temporary employees to help with specific projects—maybe a corporation has asked you to provide your product for a companywide event or you decide to have a booth at the large convention in the nearby city to sell whoopie pies to attendees—and you simply need some short-term, part-time help to get such a large order made and ready. If you plan to start bigger or have a retail storefront, you will likely want more permanent employees whether they are part time or full time.

Choosing employees—whether temporary or permanent—can be a deal maker, or breaker, for your growing company. You need a reliable team around you.

 

      tip

When hiring employees, consider the types of benefits you will be able to offer. These are an important incentive when choosing employees, as you will tend to field a better applicant pool if you offer benefits, whether that means paid vacation, sick days, personal days, flexible work schedules, trips to professional conferences, company-funded professional training, and health insurance, for instance. One way to do that is to join an association, like the local chamber of commerce, that might provide certain benefits for member employees at group rates.


 

Who to Hire

Someone, whether yourself, a permanent staff member, or a temporary employee, will be needed to fill each of the following roles:

        Office manager. Oversees and coordinates employees and may also handle administrative, clerical, and office-supply duties.

        Sales staff. Sells from a retail site or on the phone and possibly networks to gain additional business.

        Director of marketing. Takes charge of advertising and promotion; often the person in charge of marketing also handles public relations and getting timely publicity to the media.

        Bookkeeper. Tracks all business expenses, and may also prepare tax returns; if you hire an accountant to do some of the higher-level tasks, you may be able to do the bookkeeping yourself.

        Chef. This is the chief foodie—probably you since food is probably what attracted you to the business to begin with.

        Sous-chef. This is the chef’s assistant—the second-in-command that the chef entrusts with the implementation of the actual preparation. For example, perhaps the chef creates the recipe for the batter of the whoopie pie cakes and the filling; the sous-chef might be responsible for baking the cakes, making the filling, and putting the two together. Final taste and presentation are likely under chef’s approval. Sous-chefs are most often employed by large restaurants and hotels, but if your business can afford it, you may find having a sous-chef-type position very helpful, especially if you, the business owner, are the chef.

 

    Be Upfront

When you decide it’s time to hire employees, write a clear and detailed job description that outlines objectives. Use bulleted points to target the position’s responsibilities, the working conditions, and the position’s relationships to other jobs. Also clearly delineate the ideal candidate’s skill set. This is critical because when you interview prospective candidates these will act as a type of checklist. It is tempting to hire employees who you immediately like, but do not necessarily have the strongest skills. Try not to let emotion take over when hiring employees. Of course, it is important that you and your employees’ working styles mesh. Just remember to ensure they are also qualified candidates.


 

        Kitchen help. This depends greatly on the size of your operation. If you have a large specialty food business that operates out of its own commercial kitchen and needs to fill significant orders on a daily basis, kitchen help from dishwasher to restocking person may be necessary to keep up with production. You do not want to pay the salary of a sous-chef or chef to have that person wash the dishes.

 

      tip

Write your own job description. This will help you write the job descriptions for those you need to hire to do the things that aren’t in your own job description.


 

Note that the above list is about roles, not titles. There is considerable variety in titles given to employees, but whether you use informal titles or more formal ones, the tasks are the same. Also don’t feel like you absolutely need to hire a separate employee for each of these duties. It is more likely that you end up fulfilling all or most of these duties yourself.

Reaching Out to Candidates

Once you have determined the type of positions you need to fill, you will need to advertise these open positions. Don’t skimp on this step. Cast your net as widely as possible to garner the best employees.

Advertising

Consider placing an advertisement in your local and regional newspapers. If the job you are filling is a more senior-level position, then also consider advertisements in larger newspapers as well as trade journals. These national ads, though, will be much more expensive, so plan on placing national ads only when the position warrants. National searches will likely attract candidates who will need to relocate so their salary expectations may also be higher in order to warrant a move.

Employment ads are typically placed in the classified section. Call your local paper and ask for an advertising representative who can walk you through the options. You may choose a simple three-line ad, or select a splashier, larger ad with a border helping to draw readers’ attention. Be specific about your needs: hours, responsibilities, pay range, benefits, and qualities the applicant must possess (e.g., previous food experience). Finally, make sure no words are misspelled in this ad. Sounds simple, but, too often, classified ads make their way into print filled with typos. This will make you look less than professional. Run a spell check and make sure everything is in tip-top spelling shape. Here are additional venues in which to advertise your job availability:

        Online newspaper advertising. Check with the advertising representative at your local paper to see if the newspaper offers an online option. Most newspapers offer packages, including print only, online only, or both types of advertising. If the newspaper offers an online option, plan on placing an online as well as a print version of your advertisement.

 

      warning

Although it might be tempting to take up your mother’s offer to help staff your growing business, these arrangements too often end in misunderstandings, with mom, perhaps, feeling underappreciated. If you do choose to work with friends or family, it is best if you treat this as a professional arrangement and pay them as you would other employees.


 

        Online job sites. Online employment advertising on sites such as www.Craigslist.org and www.Monster.com is booming with more and more food businesses turning to it to find employees. However, you really are pulling in a national audience whether you intend to or not—make it clear in your ad where the job is located to weed out far-flung candidates who will likely not be moving 1,500 miles to take the job you have to offer paying $14 per hour.

        Colleges and universities. Colleges and universities often have their own newspapers as well as websites on which you can post your job openings. This is an excellent source for finding able candidates, especially for less senior positions.

        Word-of-mouth. Word-of-mouth is often invaluable in finding key employees. Let your vendors know that you are looking for employees. Call culinary schools in the nearest city and let upcoming graduates know that you have an opportunity for them to start getting the experience they need.

 

    Succession Planning

You have worked so hard to build your business. It’s still small but it is successful and provides you with a good income. Or perhaps it isn’t still small but has grown into a business that not only provides you with a good income but provides others with employment.

You won’t stay in this business forever. Hopefully you will live a long life and perhaps it will be the thoughts of retirement that make you decide to call it quits—a large number of small businesses are started late in people’s lives so this is a very realistic scenario. Or you decide to move on to something else. And of course, there is the possibility—however small—that you may have a fatal accident that removes you suddenly from your business.

In the latter case you may think, What do I care what happens with my business if I am simply no longer around? But we suspect you do care. That’s why succession planning is important no matter what the ultimate reason you are no longer holding the reins.

William Vanderbloemen, in an article for business.com titled “From One Leader to Another: Succession Planning Tips That Build Better Business Leaders,” offers the following couple of things to think about:

             1.  Admit that every leader is an interim leader. Some day your business will be gone altogether or you will be gone from it.

             2.  Write down a plan that states what things you do in your business right now that only you can do—name people who can take on these things and then talk with them about it.

Vanderbloemen claims that each year he reviews himself by asking one overriding question: Was I able to make myself less essential to the operation and growth of our company this year? However you decide to go about addressing your not being at the helm of your company forever, at least make some plans.


 

Interviewing

As you begin hearing from prospective applicants, you will want to read through their resumes and create a point system, perhaps from 1 to 10, giving 1s to unqualified candidates and 10s to top candidates. If you wrote an accurate job description, you shouldn’t have many 1s. Nor should you have many 10s—dream candidates are rare. As you survey the resumes, use your rating system to decide which applicants to interview.

Interviewing Strategies

Plan on interviewing five to ten applicants for more senior positions, fewer for less senior openings. When an applicant arrives for an interview, have her complete an application form. These are available at local business supply stores such as Staples. You’ll want to ask all candidates the same series of questions, ensuring a fair process. For help in formulating these questions, check www.job-interview.net. This site offers tips and advice about job interviewing and appropriate questions.

Take notes during interviews so you can review your notes later and winnow these candidates to two finalists. Ask these two for a second interview. Again, ensure fairness by asking both candidates the same series of questions. Take notes so you can access responses of both candidates after the interviews and make a final selection.

After the second interview, you will need to write an offer letter to the winning candidate, laying out your proposal, complete with pay structure and benefits. Once you and the applicant have signed the letter, you should let the other finalist know that the position is filled. Wait until the winning applicant has formally accepted before letting the losing candidate know the bad news. Too many times, the winning candidate has to decline the offer. Perhaps she received another offer and decides to take that. You will want to be able to turn to your second candidate.

Be as respectful of your candidates as you would expect them to be of the process. Always keep all candidates apprised of your time frame for hiring and let them know when to expect news. Always follow through, including making the tough calls, letting candidates know when they aren’t selected. It’s just part of doing business.

Pay

There are many variables to consider when paying your staff. For instance, in more urban areas of the country, pay tends to be higher. Compensation is also based on the employee’s experience level and amount of responsibility. Median wage for a chef or head cook, according to the U.S. Bureau of Labor Statistics as of May 2014, is $45,390. An inexperienced worker with only moderate responsibility makes anywhere from $22,460 to $27,720. If you hire temporary help, hourly wages run around $10 per hour.

 

      tip

If a local college offers culinary courses, part-time employees and interns should be easy to find. Contact the head of the department and ask about their internship program or whether you can help to create one.


 

Training

Be a good boss and take the time to adequately train your new hires and give them the benefit of the doubt for getting quickly up to speed. When they arrive for their first day of work, find a way to let employees know that you have been thinking about them and how to make this a good experience for both the new employee and the business. Show them how you like things done, where the things are that they need to perform the job they were hired to do, and the basics of your operation. You’d be amazed at how many employers show the employee to their station (desk, dishwasher, counter, whatever the case may be) and leave them to find the bathrooms or the break room on their own. There is simply nothing more frustrating for a new employee than being left to flounder. Plan on providing each employee with a detailed job description, delineating his or her responsibilities. Clarity and open lines of communication are key factors when dealing with employees.

Letting Employees Go

Unfortunately, if your business is open for any length of time you will likely find that at some point you will have to let an employee go for some reason.

Seasonal Workers

This is perhaps the simplest of all employee dismissal. You hired them with a specific timeframe and you let them go when that time frame ends. If your business, for example, is particularly busy for the Christmas season you may advertise to hire seasonal employees who start in early November to get up to speed on your products and your business by the famous “Black Friday” shopping day. When you hire these part-time, seasonal employees you make it clear that after the holiday—or the first of the year if a lot of gift certificates may get cashed in—their employment ends. Cut and dry, you both know that this is a short-term gig.

Layoffs

If your business is facing financial difficulties, letting go of employees is an important step. While you don’t want to harm your business by not being able to make or sell your product because there is no one to do it, you also don’t want to harm your business by retaining one of the largest business expenses there is—employees.

Layoffs are difficult but there are a few things to keep in mind:

        Employees are typically quite aware there are financial issues with the business.

        Layoffs typically allow for an employee to collect unemployment.

        Layoffs mean that you can provide a good reference for an employee, that you are not letting them go for lack of performance.

        Layoffs can be temporary—but don’t mislead employees into thinking they will definitely get their jobs back. And vice versa, don’t expect employees to be waiting in the wings for you to rehire them; they have their own needs and will find another job if possible. Sometimes a layoff can end if a big contract comes through, but contracts fall through all the time, so don’t make any promises even if a contract is being negotiated.

Termination for Reason

Terminating an employee for poor performance, for not doing what he or she was hired for, for something egregious such as suspected (or proven) embezzlement, stealing property, etc., is where your retention of a lawyer comes in handy. Do not do these kinds of terminations without first consulting with a lawyer about how to handle the situation.

Then prepare yourself to do one of the unpleasant tasks of being a business owner. Nolo.com recommends the following:

        Hold the termination meeting somewhere private where the employee is comfortable unless you fear the employee may become violent.

        Prepare for the meeting by having a final paycheck, severance pay if applicable, and termination letter. Include date of termination and a list of things you have done to help the employee meet performance expectations.

        Start the meeting by informing the employee you are terminating employment. Don’t add insult to injury by beating around the bush, exchanging pleasantries, etc.

        Explain your decision briefly. Don’t go into extensive detail, which risks sounding apologetic or like you might be convinced to change your decision.

        Anticipate questions ahead of time and have answers—what should I do about my appointments later this week? Do I leave immediately? All these things should have answers.

        Unless the termination is for potentially criminal activity such as suspected embezzlement, end the meeting as positively as possible given the situation. Be sure the employee knows who to contact if he or she has further questions.

Talk with your lawyer in advance about the key things that you should avoid saying or talking about to help avoid a potential lawsuit. You never know how an employee is going to react, but you don’t want to say something that may come back to you in court.

Unless you stay small and a one-person shop forever, unfortunately, terminating employees is a cost of doing business, so you can’t hide your head in the sand about this topic. Be prepared to be professional at all times, even in this type of situation.

Vendors

Besides employees, at the heart of a successful business is a team of reliable vendors. It can’t be overstated: Your business can be badly marred by even one bad vendor, if you can’t fill an order because your supplier doesn’t come through for you. You must do your due diligence when it comes to finding top-rate vendors.

 

      aha!

Whenever you introduce a new product or make a change to an existing product—making, for example, fall “pumpkin flavored” whoopie pies—let your staff be the first taste testers! When you have the recipe down, have a little celebration with the finished product. Let everyone join in being proud of the product.


 

Most of your vendors will be food-related. This means picking suppliers who have reliable products, especially when it comes to perishables.

Don’t just let your fingers do the walking (or sliding, in the case of searching on your tablet instead of in the Yellow Pages . . .) when it comes to finding the best vendors. Research the vendors on your A-list, recording the following information:

        Vendor name, address, contact information

        Area of service

        Prices

        Lead times required

        Payment policy

        Refund policy

        Discounts offered

        Specialty items/services

Most vendors will be willing to share client names with you so you can call and get testimonials that their product is top-notch and their delivery is reliable.

 

      tip

If catering events is part of your specialty food business, consider joining the National Association for Catering and Events.


 

Professional Help

You will, at times, need to hire professionals, some just for consultations, others on a regular basis. Although these services sometimes arrive with a rather steep price tag, it is absolutely money well spent. These professionals will help to ensure the success of your specialty food business.

Professional consultants with whom any small business may work include:

        Accountant. A good accountant will be your single most important outside advisor and will have the greatest impact on the success or failure of your business. You will have to decide if your volume warrants a full-time bookkeeper, an outside accounting service, or merely a year-end accounting and tax-preparation service. Even the smallest unincorporated businesses employ outside public accountants to prepare their financial statements. Accountants typically charge $75 to $150 per hour. Be sure you keep your day-to-day books in good order, which will cut down on the amount of time you need to pay an accountant.

 

      save

If you plan on doing most of your bookkeeping and are looking primarily for tax help, consider hiring an enrolled agent rather than an accountant. They can be found in the Yellow Pages or through the National Association of Enrolled Agents (www.naea.org).


 

        Attorney. Finding the right lawyer early is critical. Although you hope never to need an attorney in an emergency or in negative circumstances, there are many other reasons to have a lawyer on your list of professionals before you have legal difficulties. Lining one up that you can trust and are comfortable with can be very helpful when things crop up. You may need your lawyer to help ensure that your business is in compliance with licensing and insurance regulations. A lawyer can also check documents before you sign them and help you draft documents like vendor and client agreements—you may have boilerplate agreements but hopefully you will get larger, complicated contracts that will go smoother with an attorney to browse them. And, of course, an attorney will help resolve any legal problems that may arise. Attorney’s fees range from $100 to $500 per hour.

 

    Choosing a Lawyer

Consider these factors when choosing an attorney:

               Will the attorney meet with you in person for an initial consultation—rather than a phone consultation?

               What is the attorney’s background and experience? Specialty? Length of time in practice?

               Does the attorney have other retailers or food businesses as clients?

               Will the lawyer or paralegals perform the bulk of the work?

               Is there a charge for the initial consultation?

               What is the charge for routine legal work?

               Will the attorney work on a contingency basis?

               Is the attorney’s website professional and appealing to you?

               Always check with your state bar association as well (www.abanet.org).


 

        Business consultant. You may consider hiring a professional to analyze your business plan and check your ideas for feasibility. A good consultant can keep you from making costly mistakes. And it’s always good to have a different but knowledgeable perspective.

        Banker. The right banker can be a tremendous asset to any small business startup. If you have a financial crunch—say a gap between having to pay for supplies to do a large contract and getting a deposit—a banker who has a good relationship with you may “float” you the required funds.

        Insurance broker. Another professional you will rely on is your insurance broker. Get one who will work with you. If you buy several types of insurance from the same company, you should receive a more attractive deal on the package.

Remember, investigate well and give careful thought to hiring those who will work with you. The time you invest in choosing your employees and other professionals will pay off in the end as you create a solid, smoothly running team for your business.