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 Introduction
Welcome to your restaurant operations manual! This is a reference manual designed to educate
and inform managers and supervisors how to effectively operate a successful restaurant.

Using This Manual

This Operations Manual gives you detailed information about policies and procedures.
This manual was designed to be used as:
• A reference for managers within the establishment to answer questions on daily
operations, personnel issues, production procedures, and how to handle emergency
situations.
• A training resource for training new managers and employees.

This operations manual contains information regarding the following areas:

• Daily opening and closing procedures
• Shift management
• Food ordering, receiving, and handling
• Providing exceptional service
• Food safety and sanitation
• Restaurant operations
• Personnel and training
• Management operations
• Marketing your restaurant

To get familiar with the SMART RESTAURANT Operations Manual, take a few moments, and
look at the Chapters list to see the main topics that are covered. Then, turn to a few chapters and
view their Table of Contents to see what is in them and how they are organized.
If you know what is in the SMART RESTARUANT Operations Manual, it will be much easier
to use when you need it.
One paper-based reference copy will be supplied to each restaurant and is to be kept secure in the
manager’s office.
The operations manual is updated periodically, and current copies are reissued.

SMART RESTAURANT Operations Manual Rev. 09/16/07

Confidentiality Statement
This Operations Manual contains confidential and proprietary trade and brand information and is
the exclusive property of the restaurant company. It is not to be copied, duplicated, recorded,
published, or otherwise made available to any unauthorized person or source.
The security and confidentiality of this manual are the responsibility of all managers,
supervisors, owners, licensees, and home office employees.

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 SMART RESTAURANT Operations Manual

CHAPTERS
Chapter 1: Daily Operations
Chapter 2: Customer Relations
Chapter 3: Foodservice Sanitation
Chapter 4: Restaurant Safety
Chapter 5: Employee Administration
Chapter 6: Food & Beverage Management
Chapter 7: Labor Management
Chapter 8: Financial Management
Chapter 9: Marketing
Appendix: Restaurant Forms

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 Chapter 1: Daily Operations
Contents
Introduction................................................................................................................................................. 1
Opening/Closing Procedures .................................................................................................................... 2
Opening Responsibilities ........................................................................................................................2
Shift Change Responsibilities.................................................................................................................3
Closing Responsibilities..........................................................................................................................3
Manager’s Log........................................................................................................................................4
Shift Management....................................................................................................................................... 5
Shift Planning Chart ...............................................................................................................................6
Planning a Quality Shift ..........................................................................................................................6
Running a Quality Shift...........................................................................................................................8
Daily Food Preparation Procedures........................................................................................................ 10
Prepping Standards.............................................................................................................................. 10
Prep Sheet ........................................................................................................................................... 10
Cook Prep List...................................................................................................................................... 11
Restaurant Maintenance Schedules ....................................................................................................... 12

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 CHAPTER 1: DAILY OPERATIONS

Opening/Closing Procedures
Opening and closing procedures set the tone for all other restaurant operations. You should
clearly explain each of the opening and closing tasks to your employees.
Each manager is responsible for dividing the tasks so that all of the required activities involving
staff, equipment, and products are completed properly during each opening and closing period.
If the opening goes smoothly, chances are good that the rest of the day will flow smoothly as
well. To ensure that the opening makes a good start to the day, assign your most dependable
people to the opening shift, and make sure that they consistently follow all of the procedures on
the opening checklist.
If you put the restaurant to bed smoothly, the opening crew will have an easier time setting up.
Make sure that the closers clean all equipment and leave everything in position for opening. If
time allows, perform some closing tasks early to make closing easier as well. Always be careful
not to make your guests feel that the restaurant is preparing to close. Use the pre-close period to
clean items from the kitchen and dining room.

Opening Responsibilities
The opening manager is responsible for managing employees, dividing opening tasks, and
supervising the staff’s work so that the restaurant can open for business.
‰ Use the AM Manager Opening Checklist as a guide for opening the restaurant. (A copy
of this form can be found in the appendix.)
‰ Assign opening tasks to employees.
‰ Ensure that equipment is running properly and startup procedures are being followed.
‰ Check stock levels for all products.
‰ Check the Manager’s Log for notes from the closing manager. (A copy of this form can
be found in the appendix.)
‰ Prepare and post shift plans and prepare Shift Meeting Notes before the employee’s clock
in. (A copy of this form can be found in the appendix.)
‰ Count and verify safe and drawer amounts.
‰ Get the registers ready before opening.
‰ Prepare the daily envelope.
‰ Perform an on-hand count of prepped items. Fill out and post the Prep Sheet. (A copy of
this form can be found in the appendix.)
‰ Submit orders as necessary (2–3 times/week).
‰ Prepare payroll as scheduled.

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 CHAPTER 1: DAILY OPERATIONS

Prior to Opening the Doors to Customers

‰ Check that all scheduled employees are present and prepared to work.
‰ Verify that all staff are properly dressed and following the standard uniform and
appearance policies.
‰ Double-check that all restrooms are clean, sanitized, and stocked.
‰ Turn music, lighting, heating, or air conditioning to appropriate levels.

Shift Change Responsibilities

Proper planning ahead of time will assist in a smooth transition for the shift change. A few hours
before the shift turns over, have employees re-stock items and clean their stations. This should
help smooth the shift change period.
The manager should be on the floor throughout the shift change to make sure that it flows
smoothly.

Closing Responsibilities
The closing manager is responsible for preparing the restaurant for opening the following day.
During closing, the manager will perform end-of-day administrative tasks, delegate employee
closing duties, and dismiss staff when they have completed their shift duties.
Many closing tasks can begin prior to closing; just make sure that you are still providing top-
quality service to your remaining guests. A customer should never feel like the restaurant is
closing or that he or she is in the way.
Follow security procedures closely—closing time is when the risk of robbery is at its highest.

Prior to Closing
‰ Follow the PM Manager Closing Checklist when closing the restaurant. (A copy of this
form can be found in the appendix.)
‰ Remove any cash drawers that are not in use from the service areas.
‰ Assign pre-closing tasks and oversee employees as they perform them.

At Closing
‰ As customers finish, lead them to the door and wish them a good night.
‰ Lock all the doors to the restaurant, making sure that all customers have left the
restaurant and lobby.
‰ Turn off the outside lights and signs.
‰ Verify that all cleaning tasks were done to standard.
‰ Verify that equipment is properly cleaned and shut down.
‰ Assign any last cleaning tasks to staff.
‰ Count the cash and check out the server and bar drawers.

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 CHAPTER 1: DAILY OPERATIONS

‰ Conduct any inventory that is scheduled.

‰ Fill out the Manager’s Log. (A copy of this form can be found in the appendix.)
‰ Double-check that all doors are locked, and leave the building with employees through a
well-lit exit. Whenever possible, instruct employees to park their cars near the exit in
anticipation of leaving at the end of the night.

Manager’s Log
The Manager’s Log is a valuable communication tool to opening and closing managers. The PM
manager does not see the AM manager at the opening shift of the restaurant, so the closing
manager uses this tool to log anything that he or she would like to communicate to AM manager
regarding the restaurant’s operation.
At the closing of the restaurant, the PM manager writes down his or her notes in the Manager’s
Log. The AM manager reviews it prior to opening the restaurant, and then initials the form to
acknowledge that he or she has reviewed the information.

The Manager’s Log is a legal document, so keep that in mind when writing your
notes. All correspondence should be professional and work related.

SMART RESTAURANT Operations Manual 1-4 revised 9/24/07

 Chapter 5: Employee Administration
Contents
Introduction................................................................................................................................................. 1
Minimizing Turnover ...............................................................................................................................1
Hiring Employees ....................................................................................................................................... 2
Preparing a Job Description ...................................................................................................................2
Recruiting Sources .................................................................................................................................1
Employment Laws ..................................................................................................................................2
Screening Potential Employees..............................................................................................................4
Interviewing ............................................................................................................................................5
Checking References .............................................................................................................................8
Final Selection........................................................................................................................................9
Company Policies..................................................................................................................................... 10
Employee Conduct and Work Rules..................................................................................................... 10
Confidential Information........................................................................................................................ 11
Disciplinary and Separation Polices ..................................................................................................... 11
Anti-Harassment Policy ........................................................................................................................ 13
Grievance Procedure............................................................................................................................ 14
Leave Policies ...................................................................................................................................... 14
Open Door Policy ................................................................................................................................. 16
Payroll Procedures ............................................................................................................................... 16
Schedules............................................................................................................................................. 17
Smoking ............................................................................................................................................... 19
Storage of Personal Belongings ........................................................................................................... 19
Telephone Use ..................................................................................................................................... 19
Uniforms/Personal Appearance............................................................................................................ 20
Theft ..................................................................................................................................................... 21
Drugs and Alcohol ................................................................................................................................ 21
Violence & Weapons ............................................................................................................................ 21
Worker’s Compensation ....................................................................................................................... 21
Communication Board.......................................................................................................................... 21
File Retention ....................................................................................................................................... 22
Employer Posting Requirements .......................................................................................................... 23
Helpful Resources ................................................................................................................................ 23
Employee Orientation & Training............................................................................................................ 24
Orientation............................................................................................................................................ 24

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 Job Training.......................................................................................................................................... 24
Maintaining Performance Standards ...................................................................................................... 27
Informal Monitoring............................................................................................................................... 27
Formal Monitoring ................................................................................................................................ 27
Annual Performance Reviews .............................................................................................................. 28
Employee Relations ................................................................................................................................. 29
Counseling Employees......................................................................................................................... 29
Access to Employee Files .................................................................................................................... 30
Scheduled Employee Meetings ............................................................................................................ 30
Daily Shift Meetings.............................................................................................................................. 31
Weekly Management Meetings ............................................................................................................ 31
Handling Disciplinary Action & Termination.......................................................................................... 31

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 CHAPTER 5: EMPLOYEE ADMINISTRATION

Employment Laws
Make sure that you know the labor laws before you start recruiting and selecting employees.
The following sites provide information regarding employment laws and procedures:
• [Link]/elaws – This Internet site provides business owners with information about
federal employment laws.
• [Link] – This Internet site contains useful
links to information regarding hiring procedures, equal employment opportunity, wages,
benefits, taxes, minors, privacy issues, and termination.

At Will Employment
The employment relationship is at will, meaning that the employment may be terminated by
either employer or employee at any time for any reason, with or without notice or cause. No
permanent employment or employment for any term is intended or can be implied by the
statements in this handbook.

Criminal Convictions
We reserve the right not to hire or retain anyone that has been convicted of a criminal offense,
the nature of which is reasonably related to the applicant’s fitness for the job or for which a
pardon has not been granted. Conviction of a crime while employed that involves dishonesty
may result in termination. Before any decision is made, the nature of the crime and
circumstances surrounding the conviction will be considered by management.

Equal Opportunity Employment

We are committed to providing equal employment opportunities to all individuals without regard
to race, color, religion, sex, national origin, age, disability, marital status, sexual orientation, or
any other characteristic protected by law.
We do not discriminate on the basis of gender in compensation or benefits for women and men
who work in the same establishment and perform jobs that require equal skill, effort, and
responsibility and which are performed under similar conditions.
We will make reasonable accommodations for qualified individuals with known disabilities,
unless doing so would result in an undue hardship. An employee with a disability for which
reasonable accommodation is needed should contact a manager to discuss possible solutions.
Employees with questions or concerns about any type of discrimination in the workplace are
encouraged to bring these issues to the attention of a manager. Employees can raise legitimate
concerns and make good faith reports without fear of reprisal. Anyone found to be engaging in
any type of unlawful discrimination will be subject to disciplinary action, up to and including
discharge.

Immigration Law Compliance

It is our policy to hire only citizens of the United States and non-citizens who are authorized to
work in this country. As required by law, employees will be required to provide original

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 CHAPTER 5: EMPLOYEE ADMINISTRATION

documents that establish this authorization within three days of their date of hire. If the
documents are not provided within the three-day period, we have no choice, under the law, but to
terminate the employee until the appropriate documents are provided. Employees and employers
are both required to complete a form furnished by the Department of Labor, Form I-9. In Section
1 of Form I-9, the information provided by the employee must be valid and authentic. If at any
time during an employee’s employment it is discovered that any document used was invalid or
not authentic, the employee must, by law, be immediately terminated.

Personnel File
We keep personnel files on all employees. These files are confidential in nature and are managed
by a human resource representative. They are not to be copied or be removed from the premises
unless there is a legitimate business reason to do so.
An employee may view his or her personnel file by contacting a human resource coordinator
during business hours. No employee may alter or remove any document in his or her personnel
file.

Employment References
We do not provide employment references for former employees. Employees who need
reference letters should contact the general manager. Otherwise, the human resources department
will provide dates of employment and positions held only.

Evaluation Period
During the first three months of employment with us, new employees will be in an “evaluation
period.” During this time, their supervisor will continually evaluate their performance and
compatibilities. Should an employee’s performance not meet the standards set forth by the
supervisor, the employee’s employment will be terminated. In some circumstances, the
evaluation period may be extended at the discretion of management. This policy does not alter
the fact that the employment relationship is employment-at-will.

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 CHAPTER 5: EMPLOYEE ADMINISTRATION

Screening Potential Employees

Screening applicants before entering into the interview process will save you valuable time by
allowing you to reject those candidates that are not suitable for the job right from the start.

Employee Application Form

Always have a job candidate fill out an application form. This will provide you with an idea of
the person’s skills and experience. Use a standardized employee application form, which can be
found in the appendix.

The application form must be kept on file for at least three years, whether you
hire the candidate or not.

Make sure that the applicant meets your needs before you spend a lot of time in the process. You
should have a condition of employment sheet to hand out along with the application. The
conditions of employment sheet lists what requirements must be met before the applicant can fill
out the application, such as dependable transportation and work availability.
There are primarily four keys to selecting the right applicant. They are:
1. The application
2. The interview
3. The reference check
4. Selection

Screening Criteria
The criteria you base your preliminary screening on should be:
• Appearance. When filling out the application, did he or she appear to be neatly dressed
and clean?
• Experience. Review the experience listed on the application. Does the candidate appear
to be qualified for the job?
• Legality. Does the applicant meet the legal requirements?
• Availability. Do the applicant’s desired work hours meet your needs?
• Reasons for Leaving. Are there any red flags in the candidate’s reasons for leaving his
or her past jobs, such as didn’t get along with management or was fired?

Make sure that the application is signed and dated by the candidate. Also, no
one other than the candidate may write on the application at any time. No post-
it notes with notes or codes.

SMART RESTAURANT Operations Manual 5-4 revised 9/24/07

 Chapter 8: Financial Management
Contents
Introduction ...................................................................................................................................................................1
Forecasting Sales .........................................................................................................................................................2
History....................................................................................................................................................................2
Plans for New Year ................................................................................................................................................2
Projecting Sales .....................................................................................................................................................3
Accounting Principles....................................................................................................................................................4
Why It Is Important to Understand Accounting.......................................................................................................4
Demystifying Financial Statements ........................................................................................................................4
Reading a Balance Sheet ......................................................................................................................................4
Accrual Accounting Method ...................................................................................................................................7
Reading a Profit & Loss Statement ........................................................................................................................7
Opening Accounting Procedures ................................................................................................................................10
Preparing Daily Envelope.....................................................................................................................................10
Writing Checks .....................................................................................................................................................10
Cash Handling Procedures .........................................................................................................................................11
Tips for Counting the Deposit...............................................................................................................................11
Deposit Slip ..........................................................................................................................................................11
Master Bank .........................................................................................................................................................11
Nightly Accounting Closing Procedures......................................................................................................................13
Checkout Procedures...........................................................................................................................................13

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 CHAPTER 8: FINANCIAL MANAGEMENT

Forecasting Sales
Putting together your monthly sales forecasts and budget puts you in position to be a proactive
restaurant manager and will, ultimately, ensure that you make money, not waste it.
There are three distinct sections to forecasting sales: History, Plans for New Year, and Projecting
Sales.

History
The first thing you must do is gather as much pertinent data from your records as you can,
especially from the last 12 months in operation. This data should include the following five
reports:
• Sales history by day for each month by category – food, liquor, bottle beer, draft beer,
wine, merchandise, and gaming or vending sales
• Customer counts and average ticket
• Sales log with:
− Sales by period
− Total daily sales
− Customer counts or covers sold by meal period
− Weather
− Events (sports, fair, election, road construction, etc.)
− Comments
• Item-by-item sales mix reports by sales category.
• Catering events and sales

Plans for New Year

The second thing you must do is take the time to put into writing what you are going to do
differently next year that will impact your business, whether positively or negatively. Then you
should ask yourself the following seven questions:
• Will I be changing any menu items?
• Will I be raising my menu prices?
• Will I be raising my liquor prices?
• Will I be implementing any new marketing campaigns?
• Will I be adding or removing any seating (new patio, etc.)?
• What type of revenue do I think we will do in banquets and catering events?
• What outside factors am I expecting that can affect my sales (construction to the road,
etc.)?

SMART RESTAURANT Operations Manual 8-2 revised 9/24/07

 Appendix
The following forms are available on the SMART RESTAURANT Operations Manual data CD.
• Accident/Injury Report Form
• AM Manager Opening Checklist
• Bar Comp Sheet
• Bar Requisition Form
• Bar Spill Sheet
• Cook Prep Sheet
• Customer Complaint Form
• Daily Equipment Maintenance Form
• HACCP - Hazard Analysis & Critical Control Point Chart
• HACCP - Hot/Cold Holding Chart
• HACCP - Receiving Checklist
• HACCP - Timed Hazard Analysis and Critical Control Point Checklist
• Inventory Worksheet
• Invoice Log
• Kitchen Checklist Day
• Kitchen Checklist Night
• Liquor Order Form
• Liquor Perpetual Inventory Form
• Manager's Log Form
• Master Scheduling forms – Bar, Bus, Cook, Dish, Host, Server
• Monthly Equipment Maintenance Form
• Order Form - China
• Order Form - Glass
• Order Form - Merchandise
• Order Form - Silver
• Perpetual Inventory Worksheet – Bar
• PM Manager Closing Checklist
• Prep Sheet
• Purchase Order Form
• Recipe Costing Card
• Shift Meeting Notes
• Waste Sheet
• Weekly Equipment Maintenance Form

SMART RESTAURANT Operations Manual revised 09/24/07