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Savour

The Magazine of the Restaurant Association of New Zealand

Goal Setting: Business Planning, Professional Development & More

24 Sep 24

Feeling like you’re running in circles without making headway? In the bustling world of hospitality, it’s easy to get caught up in the whirlwind of daily tasks, looming deadlines, and the constant pursuit of quality guest experiences. Staying organised and on track might seem like a monumental challenge at times.

That’s where the SMART goals methodology comes into play. By setting SMART goals, we can measure success more effectively, celebrate achievements, and turn aspirations into tangible results—all in a structured and organized manner. But what exactly are SMART goals? How can we apply them specifically within our hospitality business environment? And what are some practical examples we can follow?

Everything you need to know about the SMART goals framework, its benefits, and how to tailor it to the unique demands of the hospitality industry is below.


What Are SMART Goals?

Let’s unpack what SMART goals mean and break down the acronym:

  • S: Specific – Goals should be clear and well-defined.
  • M: Measurable – There should be tangible criteria to track progress.
  • A: Achievable – Goals should be realistic and attainable.
  • R: Relevant – They should align with your role and our business objectives.
  • T: Time-bound – Each goal should have a deadline or time frame.

In the context of our hospitality environment, using SMART goals ensures that every team member knows exactly what’s expected, how to achieve it, and by when.


Why SMART Goals Matter in Hospitality

Increased Productivity: With SMART goals, you can focus on what truly matters, boosting efficiency and productivity. For instance, setting a goal to “reduce table turnover time by 15% during peak hours” provides a clear target that enhances overall service efficiency.

Improved Guest Satisfaction: By setting specific objectives related to guest experiences—like “achieve a 5% increase in positive guest feedback on cleanliness over the next quarter”—we can directly impact our guests’ satisfaction.

Enhanced Team Collaboration: SMART goals promote clarity and alignment within teams. When everyone understands the objectives and their roles, collaboration becomes seamless.

Better Time Management: Time-bound goals help prioritize tasks effectively. Knowing that a particular goal needs to be achieved by a certain date keeps everyone on schedule.

Higher Success Rates: With clear, attainable goals, we set ourselves up for success. This not only boosts morale but also drives the entire team toward excellence.


Setting SMART Goals in a Hospitality Business

Let’s explore how to apply each element of the SMART framework within a hospitality setting.

1. Specific

Example: “Increase the average nightly pax number”

SMART Version: “Increase the average nightly pax number from 75 to 85 during weekdays over the next six months by targeting corporate clients through a new marketing campaign.”

Being specific eliminates ambiguity and provides a clear direction for action.

2. Measurable

Example: “Improve guest service.”

SMART Version: “Improve guest service by ensuring meal checks are done along with drink checks after 5 minutes within the next two months, results will be measured by an increase in drink sales by 15%.”

Measurable goals allow us to track progress and make data-driven decisions.

3. Achievable

Ensure that the goal is realistic given our resources.

Example: Setting a goal to “double the restaurant’s pax in one month” isn’t achievable.

SMART Version: “Increase weekend bookings by 20% over the next quarter by offering special promotions.”

An achievable goal motivates the team and builds confidence.

4. Relevant

The goal should align with our broader business objectives.

Example: “Start offering cooking classes to guests.”

While interesting, is it relevant?

SMART Version: “Enhance guest experience by introducing a weekly local cuisine tasting event, aligning with our goal to promote regional culture and increase guest satisfaction scores by 10% over the next six months.”

Relevant goals ensure that we’re contributing to our overall mission and vision.

5. Time-bound

Setting a deadline creates urgency and prompts action.

Example: “Eventually reduce energy consumption.”

SMART Version: “Reduce energy consumption by 15% over the next 12 months by upgrading to energy-efficient appliances and implementing a staff awareness program.”

Time-bound goals help in planning and evaluating progress.


Practical SMART Goal Examples for Restaurants and Cafes

In our dynamic restaurant and cafe environments, setting SMART goals can significantly enhance operational efficiency, customer satisfaction, and overall profitability. Here are some tailored examples:

Goal: Serve more customers efficiently.”
SMART Goal: Reduce the average table turnover time from 60 minutes to 50 minutes during peak hours over the next two months by optimizing the seating plan and training staff on expedited service techniques.”
By streamlining service, we can accommodate more guests, increase revenue, and improve the dining experience without compromising quality.
Goal: “Elevate the guest experience.”
SMART Goal: “Increase our customer satisfaction ratings from 85% to 90% on post-dining surveys over the next quarter by implementing personalized service training and introducing a new feedback incentive program.”
Delighting our guests leads to repeat visits and positive word-of-mouth, essential in the hospitality industry.
Goal: “Promote our specialty dishes.”
SMART Goal: “Increase sales of our signature coffee blend by 25% over the next three months by featuring it prominently on the menu, offering limited-time promotions, and highlighting it on social media platforms.”
Focusing on what makes us unique enhances brand identity and profitability.
Goal: “Minimize kitchen waste.”
SMART Goal: “Cut food waste by 20% within the next six months by implementing a waste tracking system, optimizing inventory orders, and training kitchen staff on efficient food preparation and portion control.”
Reducing waste not only saves costs but also aligns with sustainable practices that resonate with our customers.
Goal: “Improve team performance.”
SMART Goal: “Ensure all front-of-house staff complete a customer service excellence course within the next two months to enhance guest interactions and increase upselling opportunities.”
Investing in our team leads to better service and higher sales.
Goal: “Boost revenue per guest.”
SMART Goal: “Increase the average customer spend by 15% over the next four months by introducing a new premium menu section and training staff on suggestive selling techniques.”
Higher per-guest revenue directly impacts our bottom line without the need to increase foot traffic.
Goal: “Enhance our digital presence.”
SMART Goal: “Grow our social media following by 50% and increase online reservations by 30% over the next six months through engaging content, influencer partnerships, and targeted advertising campaigns.”
A robust online presence attracts new patrons and builds community around our brand.
Goal: “Ensure top-notch hygiene practices.”
SMART Goal: “Achieve a 100% score on the next health inspection by conducting monthly internal audits, updating sanitation protocols, and providing comprehensive training to all staff within the next three months.”
Maintaining the highest health standards is critical for guest trust and regulatory compliance.
Goal: “Increase customer retention.”
SMART Goal: “Enroll 500 customers in our new loyalty program within the next quarter by promoting it at checkout, through email marketing, and on social media platforms.”
A loyalty program encourages repeat business and fosters a stronger connection with our guests.
Goal: “Expand off-premise sales.”
SMART Goal: “Increase takeaway and delivery orders by 40% over the next six months by optimizing our online ordering system, partnering with delivery apps, and promoting special deals for off-premise dining.”
Adapting to the growing demand for convenient dining options taps into a broader customer base.

By setting these SMART goals, we’re not just aiming for arbitrary targets—we’re strategically planning for measurable success that aligns with business goals for service and operational excellence. Each goal supports an overarching mission to provide outstanding dining experiences while driving business growth.


Remember: The key to achieving these goals is consistent effort, regular monitoring, and a willingness to adapt as needed. Encourage others in your workplace to work together to turn these objectives into realities, enhancing both our guests’ satisfaction and our restaurant’s success.


Avoiding Common Pitfalls

When setting SMART goals, be mindful of these common mistakes:

Setting Unrealistic Goals: Overly ambitious targets can demotivate the team. Ensure goals are challenging yet attainable.

Not Tracking Progress: Without regular monitoring, it’s hard to know if you’re on track to meet your goals.

Being Vague: Clarity is key. Vague goals lead to confusion and lack of direction.

Ignoring External Factors: Consider market trends, seasonal fluctuations, and other external influences that could impact your goals.


Staying Accountable

1. Regular Check-Ins: Schedule weekly or monthly meetings to review progress towards goals.

2. Use Visual Aids: Implement dashboards or charts in staff areas to display progress, keeping goals top-of-mind.

3. Celebrate Milestones: Recognise and reward the team when interim targets are met, boosting morale and motivation.

4. Adjust as Necessary: Be flexible. If something isn’t working, don’t hesitate to reassess and modify the goal.

In hospitality, where every detail contributes to the guest experience, setting SMART goals is essential. It transforms abstract ideas into actionable plans, ensures alignment with core objectives, and drives a venue in continuous improvement.

By embracing the SMART framework, you can not only enhance operational efficiency but also elevate the guest experience, staff progression, retention and so much more. Using SMART goals can help engage your team and involves them in your business’s success as an outcome of their success.