Awareness of the cost of labor
Managing your workforce is one of the most important factors in managing your business.
Most likely, if you do not control your work, you are likely to lose income.
What is the cost price?
Cost is the total cost of goods sold, the gross value of labor for all your employees, which includes payroll, payroll taxes, employee benefits, medical insurance and other employee benefits. For fast food or a random F & B facility, a good reference for cost is 60% or less of F & B revenue.
Examine what cost in your restaurant should be at the top of your to-do list.
Do you know the formula for labor costs?
Payroll divided by total sales = labor interest
The average labor percentage in most restaurants should be in 20 at 25% for hourly employees and 10% For driving.
A high-end restaurant will have a higher percentage of workforce. The combination of menu sales, the quality of products and services, prices and opening hours will affect your food and labor costs.
How to maintain a good percentage of labor costs?
Teach your management staff how to control their employees.
It all starts with the creation of restaurant graphics
Do not just plan employees to fill in shifts, plan enough staff to accommodate your guest in an exceptional service.
Create a sensible schedule that makes sense. Manage managers in the office; Remember to enter sales data that has exceeded projected sales.
Community events also play a huge role. See if you can get a school calendar to keep you informed about school games and other activities.
Know what happens next door, for example:
- Concerts
- Games
- Musicals
- Sport events
- Know the times of theatrical show, at what time they release?
Chamber of Commerce: Chamber of Commerce is a great way to find out what is happening in your area. Find your state or local Chamber of Commerce, there are all sorts of events on their community board.
Supermarkets are a great way to find out what is happening in your area.
How can I reduce the labor rate?
- Proper staff training: The better the training, the fewer the changes in errors or mistakes. Make sure you have an excellent training program. Train coaches are a great way to show coaches what is expected of them. In each position, there should be an appointed person who trains the staff, each trainer should undergo proper training on his hands and manage quizzes. Coaches should not train your employees, unless they demonstrate skills and training methods, these employees should train their employees the way you teach them. Management needs to follow the training so that it is executed properly.
- Cross training: Dishwashers on the podium on the fryer or bus desks. A host or hostess can help servers with orders to drink or run food for a guest. Preparatory chefs can be crossed while studying as a cook. The fact is that during peak times, you can move employees to different positions when sales are higher than usual, or if the servers are in weeds. Cross trained employees can handle multiple positions during off-hours, so you can have minimum employees for slow periods.
- Professional staff: Training staff on how to do their job in the best possible way will create WOW EFFECT if they are consistent and profitable.
- Proper shift control : Who trains managers? - Owners must participate in the daily work of their restaurant. There are several ways to learn management. When looking for a manager in your restaurant, make sure that they have previous experience and that control checks are done. Either the owner can train the employee, or you can contact a restaurant consultant who trains employees either truly or online. After proper training of management personnel, they can train the rest of the staff on how to provide WOW service each of your guests.
- Know what your labor interest per hour is: Owners or Management need to know where they stand on the labor percentage by the hour. You can redeem your sales in restaurants by reading in Point of Sale (POS), the same goes for labor dollars. Then you divide billions of dollars into total sales = labor interest. A good benchmark for the work force will be between 20 and 25% for hourly employees and 10% for management. If you use a paper verification system, because you do not have a POS, then track your sales and work by the hour. Create a sales and labor journal so you can record sales and labor. Both the owner and the management can calculate the numbers or use the hostess to count the guest by check by the hour, and management can receive labor dollars. Remember, do not cut staff before eating. The servers will try to convince the management to cut the floor, because they will make more money, so a sufficient number of staff is required to meet the needs of your guest. During the tail of any mealtime period, management must give guidance to staff regarding their side work and the closure of their assigned areas. These employees must be on time on time - do not let them milk the clock - it is your money that is lost.
- Do not overload the restaurant staff: Over restaurant staffing will be very expensive. If you are working on employees, make sure you respond quickly to sending employees home early if sales do not occur.
- How to create a sensitive graph ? Know what your planned labor dollars are and split them last week, or use a rolling sales figure in US dollars.
- Rolling Sales: Add the previous three weeks of sales in the restaurant and divide it by 3.
Example: if you are in the fourth week, add the first week ($ 1,552.00), the second week ($ 1,932.00), and the third week ($ 2,405.00) = 5,889.00 US dollars. Divide labor dollars by $ 1,300.00 for sales of $ 5,889 = 22%. Use 22% to help you create a reasonable schedule.
After creating the schedule, if the planned work exceeds 25%, you need to make adjustments. If the percentage is less than 20%, you can add more hours to the schedule.
