Seven Proven Ways to Control Labor Costs and Boost Staffing Levels
Under pressure. If you are a restaurant operator, David Bowie has summed up in two words how you are considering your profit margins.
In this market, that kind of pressure isn't an unknown sensation -- we know that our margins are slim -- but right now, you feel the squeeze more than ever. That is thanks in large part to rising wages and the apparently persistent wave of legislative acts affecting your labor costs. Add in the fact that traffic is slowing down and well, you can not help but sweat a bit.
During these times of tightening, operators have a tendency to dig into the numbers even further (is that possible!?) And inspect every dollar spent and every dollar saved.
Here are seven places where operators can cut unnecessary costs to maximize your people, schedules and labour spend.
Sources:
https://www.connectpos.com/what-is-a-payment-gateway/
https://www.connectpos.com/differences-between-multichannel-and-omnichannel/
https://www.connectpos.com/shopify-pos-reviews-is-it-best/
1. Stop Paying for Historical Clock-Ins
Five minutes here, 15 minutes there. Each time one of your group members clocks in too early it is like skimming a very small sliver of gain off your bottom line. Typically, without time clock authorities, 15-20% of a restaurant's employees will clock-in a minimum of 10 minutes early/day. In addition, employees can ride the clock at the end of the shift, translating into improved overtime and increased labor hours paid out. The solution? Enforced clock-ins via an integration with your POS software. You configure the POS applications to only let workers clock-in five minutes before their shift, and an internet monitoring system like ConnectPOS goes to work making sure that your employees punch in at the appropriate moment.
2. Reduce Schedule Creation Time
Composing a schedule can take supervisors four hours or longer. On top of it all, you will find unlimited phone calls and texts to keep up with and communicate program changes. Online scheduling solutions can decrease the time necessary to create schedules by 75% since managers can replicate schedules from week to week utilizing scheduling templates and create tiny tweaks rather than always starting from scratch. Employees are updated through an employee monitoring app whenever a change is made and may ask edits to the program pending a supervisor's approval. All that automation and ease-of-access conserves your boss's' time (and you payroll costs!) , while reducing costly scheduling mistakes.
3. Reduce Unnecessary Overtime Hours
Uncontrolled overtime is a enormous labor expense. Having an overtime report, however, managers can see which employees have scheduled overtime in addition to the overtime costs for each day and week. Using the overtime reports, managers can make adjustments to programs during the week or month and track the effect on things like labour costs, labor percentage, and quantity. In HotSchedules, for example, the Overtime Warning Report can be configured by program, job code or worker. Once generated, managers can observe real employee hours and just how much is scheduled, then the date and time that the overtime could start.
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4. Use POS Data to Forecast Revenue and Project Optimized Labor
In a recent study report with Hospitality Technology, HotSchedules found that 89 percent of operators said their labour percentage information is the most valuable. After labour, came food costs and voids. The findings indicate that although restaurants are faced with different challenges such as customer experience or layout update requirements, the basic principles of running a profitable restaurant apply.
One of these basics is revenue forecasting. It's crucial for fertility as well as the best restaurant managers consistently do it. Gut instinct forecasting is no more effective in today's more complex operating environment. It is the way you can accurately predict your sales amounts, control your labor costs and be sure you have the ideal number of people working in the precise times you want them.
The correct sales forecasting solution that integrates with your Brink POS Software will help control your labour spend and attain employee scheduling efficiency. And, when incorporated effectively into your routine business best practices, it can really help your business drive revenue rather than simply save money.
5. Prevent Over-staffing
Over-staffing is rather easy to spot. Servers are standing around and folks are getting in each other's way in the kitchen (at least more than normal). Managers often over-staff to account for all those"just-in-case" peaks in quantity. There's an overall thinking that over-staffing and cutting people is far better than under-staffing and having workers on-call. The two biggest issues with over-staffing are the costs that includes paying people to stand around and the reduced productivity which comes as a consequence of the all that standing around.
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6. Prevent Under-staffing
Under-staffing appears to keep everybody occupied. However, at some point, you need to wonder at what cost? Under-staffing could cause employee burnout. It might also result in poor customer support and shortcuts that could be detrimental for employees and guests. Building a program based on guest or sales volume data which also takes into account factors like weather, events and advertising initiatives is the perfect way to maximize labor spend.
7. Stagger Arrivals/Departures
When you've got a labor prediction based on actual labor data, you have the ability to stagger coming times and departures. Rather than having block programs where everyone arrives at precisely the exact same time and leaves at exactly the exact same time, managers begin to learn which positions can arrive and depart at different 15 or half-hour increments to maximize your labor spend. With time, that additional 15 or 30 minutes adds up to significant labor savings.
References
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