May 15th, 2024

Justin Newton Interviewed by Tim Kummerfeld at the Foodie Coaches Sydney Retreat – March 2024

Interview with Justin Newton and Tim Kummerfeld

Justin Newton, a seasoned restaurateur and entrepreneur from Sydney, has a rich and varied background in the hospitality industry. He’s now one of the partners of the leading Sydney hospitality group House Made Hospitality. Here’s a summary of the interview with Justin Newton and Tim Kummerfeld at the Foodie Coaches Sydney Retreat in March 2024.

After working behind a bar during his university days, Newton set off on an international journey that developed his skills and shaped his perspective on hospitality and people management. This included roles in London and at prestigious hotels in the Maldives and Montenegro. After this, he returned to Australia and started to shape Sydney’s hospitality scene.

During the interview, Newton discussed the key issues that drive his hospitality businesses. He stressed the importance of cultural alignment within a team, explaining that recruitment should focus on matching personal values with the company’s culture rather than solely on skills. This develops a supportive and productive work environment and true teamwork.

He also emphasised the challenges of scaling a business: maintaining quality and culture across multiple venues requires a structured approach to leadership and training. High-quality systems and processes help embed the company’s values into everyday operations, ensuring consistency across all venues. One distinctive approach he highlighted is the terminology and philosophy behind referring to managers as ‘leaders’ within his organisation.

The Importance of People and Systems

Leaders, Not Managers: Newton explained that the term ‘leader’ suggests someone who guides and influences others through inspiration rather than direct command. This subtle shift in title and role emphasises the importance of interpersonal skills in managing teams, especially in service industries where staff morale directly impacts customer satisfaction. By developing leadership based on motivation and support, his venues can maintain a high standard of service even as they scale up. Examples of changes are Restaurant Managers, are now called Venue Leaders or Assistant Venue Leaders. For Head Chefs, the title remains, but the role expectations extend beyond culinary duties to include leadership in kitchen management and team development.

Staff Training and Development: Newton emphasised the importance of comprehensive staff training to maintain service quality. He detailed a training regimen that involves not just initial training but ongoing education, ensuring that staff members are well-versed in the company’s operational standards and customer service expectations. This focus on continuous professional development helps maintain high service standards, which is particularly crucial as the business scales.

Systems and Processes: He also touched upon the practical aspects of scaling a business, such as the need for meticulous process management. Newton stressed that a well-defined process is vital for embedding the company’s values into every aspect of operation, from customer service to internal management. These processes ensure that every venue operates to the same high standards, creating a reliable and predictable customer experience regardless of location.

Customer Experience and Value: Newton discussed crafting a memorable customer experience and ensuring clearly perceived value. He talked about how every aspect of customer interaction, from the ambience and service to the quality of the food and drinks, needs to contribute to a sense of value. This approach is critical in building customer loyalty and encouraging repeat business.

Growth and Business Development

Maintaining Consistency During Growth: As the number of venues grows, so does the difficulty of ensuring that each new team member absorbs and reflects the company’s values and operational standards. Newton addressed this by implementing robust training programs and maintaining clear communication channels to reinforce the company’s core values. This strategic focus on culture is crucial for preserving the quality and ethos of the customer experience across multiple locations.

Adapting to External Challenges: He shared insights on navigating external challenges, such as economic downturns or the COVID-19 pandemic, significantly impacting the hospitality industry. Newton highlighted how strategic decisions during these times, such as seizing expansion opportunities when other businesses were contracting, played a crucial role in his business’s growth and resilience.

Innovative Business Practices: Introducing innovative practices, like calling managers ‘leaders’, reflects a broader strategy of rethinking traditional business models. Newton’s approach includes integrating technology and new management practices to streamline operations and enhance the customer experience.

Sustainability and Responsibility: He touched upon the importance of sustainability in business operations, which is increasingly relevant in today’s market. This includes ethical sourcing of ingredients, responsible business practices, and a focus on community and environmental impact, aligning with consumer values and expectations.

Financial Management: Newton also discussed the critical importance of financial management, especially in a business characterised by thin margins and high volatility. Effective cost control, strategic investments, and financial planning ensure the business survives and thrives in the competitive landscape. It can also seize opportunities when other businesses or developments become available.

Partner Roles: Newton highlighted the diverse expertise each business partner brings to the enterprise. They specialise in different aspects of the business, bringing a comprehensive skill set to senior management. Specific roles include one partner who is executive chef and culinary consultant, another who manages beverage and bar operations, and another who focuses on sales and maximising yield from events, reservations and revenue optimisation. A fourth partner acts as the commercial director, managing financial and strategic growth. Newton overseas operations and front-of-house activities, ensuring that each venue operates smoothly and maintains high service standards.

This summary of the 60-minute interview with Justin Newton and Tim Kummerfeld shows the multisided approach needed to manage and grow a hospitality business. Newton’s strategies emphasise operational excellence, leadership, and a deep commitment to staff development and customer satisfaction. His entrepreneurial journey reminds us of aligning team values with company culture, the importance of adaptive leadership in scaling operations, and the entrepreneurial spirit required to thrive in a highly competitive industry.

Some of the venues owned by House Made Hospitality…

Interview with Justin Newton and Tim Kummerfeld

Check the other useful blog posts on the Foodie Coaches website…

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