Where are the gaps in your labor systems?
In any economy, controlling labor can be the key to a profitable week. In the restaurant business, where you’re watching every dollar, the ability to trim labor costs is a survival skill.
How are you setting targets and controls?
Daily and weekly labor targets are common KPIs in many management incentive systems. But to improve labor performance, you often need a more granular view.
- Break down the sales forecast by day part. Compare projected delivery sales versus carryout or dine-in or catering.
- Note differences by hour. Are there other factors this week that could change the forecast?
- Look at events, weather, road construction, and big pre-orders that could have an impact—and adjust.
- Be accurate with your forecast: it’s the basis for the week’s labor targets.
A few more considerations:
- If you set labor targets manually, would a labor yield calculation be more effective?
- Have you included all related overhead to determine your true labor cost?
- Have you set up the POS to track and enforce breaks and overtime restrictions? Labor code compliance?
How are you controlling labor costs throughout each shift?
- With their eyes on the dash, shift supervisors can control labor all day long.
- Watch labor dashboard metrics throughout the day and send staff home during slow times.
- Ensure limits are set on early and late clock-ins to decrease the likelihood of staff trying to cheat the clock.
- Force a manager override for exceptions to ensure you’re paying only for the hours scheduled and actually worked.
- Use biometric security (e.g., fingerprint sensors) to build accountability and eliminate time clock abuse.
- Set up the POS to track the correct pay rates for the different jobs an employee may work during a shift.
Are you shifting phone orders online?
At some chains, half of all sales today come from web and mobile channels. How much more business could you handle by shifting more phone orders online?
Do you have the systems in place to make that happen?
