How & when to build your startup’s sales team, a discussion about the open governance opportunities that come with crypto, and a deep dive into the modern tech-enabled restaurant industry with Vivian Wang of Landed

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March 30, 2023

How to Build Effective Sales Teams and Leverage Technology in the Restaurant Industry: Insights from Interplay's Podcast

Introduction

In a recent episode of the Interplay podcast, Mark Peter Davis, Managing Partner of Interplay, hosted an engaging discussion on various topics crucial for entrepreneurs and business leaders. The episode featured insights from Phuong Ireland on building and compensating sales teams, Brett Palatiello on blockchain developments, and Vivian Wang, CEO of Landed, who shared her experiences and perspectives on the restaurant industry post-COVID.

When Should Startups Build a Sales Team?

Key Considerations

  1. Product-Market Fit: Ensure that your product has reached market fit before hiring a sales team. Prematurely hiring salespeople for a product that isn’t ready can lead to wasted resources and unproductive efforts.
  2. Founder's Initial Sales: Founders should be the first to sell their product to the initial batch of clients. This not only demonstrates product-market fit but also helps founders understand the sales process, which is essential for training future salespeople.
  3. Established Sales Strategy: Develop a clear sales and lead generation strategy before bringing in a sales team. This ensures that salespeople can effectively deploy and execute strategies from day one.

How to Compensate Sales Teams Effectively

Structured Compensation Plans

  1. Base Salary: Avoid commission-only structures. Offering a base salary shows that you value your sales team and provides stability, reducing employee turnover.
  2. Set Quotas: Establish clear and achievable sales targets. These should be challenging but realistic, tailored to your industry, company stage, and product pricing.
  3. Commission Plans: Implement a commission structure, typically around 10% of the revenue closed by the salesperson. Ensure that commissions are based on the first year’s revenue to incentivize new customer acquisitions.
  4. Sales Accelerators: Introduce higher commission rates for surpassing quotas to motivate salespeople to exceed targets. Conversely, lower commission rates for underperformance can help maintain high standards.

The Evolving Restaurant Industry Post-COVID

Challenges and Innovations

Vivian Wang, CEO of Landed, highlighted the challenges faced by the restaurant industry post-COVID and the innovative solutions that are emerging to address these issues.

  1. High Turnover Rates: The restaurant industry faces a turnover rate of 130%, which spiked to 200% post-COVID. This high turnover disrupts operations and necessitates continuous hiring.
  2. Technology Adoption: Restaurants are increasingly adopting technology to manage operations more efficiently. Innovations include AI-driven drive-through systems, smart order-taking software, and data analytics tools for delivery management.
  3. Employee Experience: Improving the work environment for employees is becoming a priority. This involves creating a supportive and respectful workplace culture, which can help reduce turnover and improve service quality.

Leveraging Technology for Restaurant Staffing

Landed’s Approach

Landed uses conversational AI technology to streamline the hiring process for restaurants. This includes sourcing, vetting, engaging, and setting up interviews for candidates, effectively acting as a recruiter for busy general managers.

  1. Automating Recruitment: By automating the recruitment process, Landed helps restaurants maintain staffing levels without overwhelming managers with recruitment tasks.
  2. Focus on Core Operations: Automation allows general managers to focus on guest experience and food quality, which are critical to the restaurant’s success.

Supporting Blue-Collar Workers

Vivian Wang’s Vision

Vivian Wang’s vision for Landed extends beyond just job placement. She aims to build a comprehensive livelihood platform for blue-collar workers that addresses three core pillars: job security, financial stability, and education.

  1. Job Security: Ensuring that workers have access to stable and reliable employment.
  2. Financial Stability: Providing resources and tools to help workers manage their finances effectively.
  3. Education and Growth: Offering opportunities for continuous learning and career advancement.

FAQs

How can startups determine the right time to build a sales team?Startups should wait until they have achieved product-market fit, the founders have secured initial clients, and a clear sales strategy is in place.

What are effective ways to compensate sales teams?Offer a base salary, set achievable sales quotas, and implement a commission structure with potential accelerators for surpassing targets.

What challenges does the restaurant industry face post-COVID?The restaurant industry faces high turnover rates, increased operational complexity, and the need to adopt new technologies to improve efficiency and employee satisfaction.

How can technology help restaurants manage staffing?Technology, such as conversational AI used by Landed, can automate the hiring process, allowing managers to focus on core operations like guest experience and food quality.

How can families prevent future generations from feeling entitled?Fostering a culture of value creation and self-actualization, supporting individual initiatives, and promoting continuous learning and innovation can prevent entitlement.

What is the role of a trust in empowering future generations?A trust dedicated to self-actualization can provide financial resources for future generations to pursue their passions and entrepreneurial ventures.

How can families balance wealth preservation with value creation?Establishing structures that promote entrepreneurship and innovation while managing financial resources prudently can help balance wealth preservation with value creation.

What are peak moments and why are they important?Peak moments are instances where individuals make significant contributions that are recognized and valued, enhancing their confidence and perspective on their capabilities.

How can families support the entrepreneurial ventures of future generations?Providing resources, mentorship, and a safe environment for experimentation, and encouraging risk-taking and celebrating successes are key components of support.

Conclusion

Empowering future generations through entrepreneurship and value creation is essential for maintaining a legacy of innovation and success. By focusing on human capital and fostering a culture of continuous learning and development, families and businesses can ensure long-term growth and prosperity. For more insights into entrepreneurial strategies and family wealth management, listen to more episodes on Interplay's Blog. If you're looking for an incubator to help grow your startup, explore Interplay's Incubator Program.

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