7 Must7 Must--Do’sDo’s to Controlling Labor...

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7 Must 7 Must-Do’s Do’s to Controlling Labor Costs to Controlling Labor Costs Ensure you are using your labor dollars Ensure you are using your labor dollars in the right department at the right time in the right department at the right time David Scott Peters David Scott Peters Restaurant Expert & Restaurant Expert & S t C h S t C h www.TheRestaurantExpert.com 1 Systems Coach Systems Coach

Transcript of 7 Must7 Must--Do’sDo’s to Controlling Labor...

Page 1: 7 Must7 Must--Do’sDo’s to Controlling Labor Costswahospitality.org/wp...7-Must-Dos-to-Controlling-Labor-Costs.pdf · 7 Must7 Must--Do’sDo’s to Controlling Labor Costs Ensure

7 Must7 Must--Do’sDo’sto Controlling Labor Coststo Controlling Labor Costs

Ensure you are using your labor dollarsEnsure you are using your labor dollarsin the right department at the right timein the right department at the right time

David Scott PetersDavid Scott PetersRestaurant Expert &Restaurant Expert &

S t C hS t C h

www.TheRestaurantExpert.com 1

Systems CoachSystems Coach

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BackgroundBackground

Grew Grew up in my family’s successful up in my family’s successful t t d t i b it t d t i b irestaurant and catering businessrestaurant and catering business

Was Was the Operation Manager for a the Operation Manager for a multimulti--unit independent Brew Pub andunit independent Brew Pub andmultimulti--unit independent Brew Pub and unit independent Brew Pub and Café in Phoenix, AZCafé in Phoenix, AZ..

Taught Management & HumanTaught Management & HumanTaught Management & Human Taught Management & Human Resources, and Wines & Spirits at the Resources, and Wines & Spirits at the Scottsdale Culinary Institute.Scottsdale Culinary Institute.

Was Was COO of franchisor of a COO of franchisor of a 3030--unit unit regional chain, AZ.regional chain, AZ.

SMARTSMART S tS t Si l M blSi l M bl

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SMART SMART SystemsSystems——Simple, Measurable, Simple, Measurable, Applicable, Repeatable and Trainable.Applicable, Repeatable and Trainable.

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What You’ll Discover:What You’ll Discover:

Why employees who work more than one position in Why employees who work more than one position in your restaurant have the greatest potential for time your restaurant have the greatest potential for time you estau a t a e t e g eatest pote t a o t eyou estau a t a e t e g eatest pote t a o t eclock abuseclock abuse

How this simple acronym, “PPETF”, is your key to a How this simple acronym, “PPETF”, is your key to a well trained and efficient staffwell trained and efficient staff

How this valuable report can save you thousands in How this valuable report can save you thousands in overtime payovertime payovertime payovertime pay

How to avoid cutting too soonHow to avoid cutting too soon

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Your ResponsibilityYour Responsibility

RUN A PROFITABLE RESTAURANT!RUN A PROFITABLE RESTAURANT!RUN A PROFITABLE RESTAURANT!RUN A PROFITABLE RESTAURANT!

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

1.1. Check that your staff is not clocking in too Check that your staff is not clocking in too soonsoon•• Start with proper planning and schedulingStart with proper planning and scheduling•• Before each shift Write it downBefore each shift Write it down•• Before each shift... Write it downBefore each shift... Write it down•• Periodically check the POSPeriodically check the POS•• POS system scheduling toolPOS system scheduling toolPOS system scheduling toolPOS system scheduling tool

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

2.2. Make sure your staff is not riding the clockMake sure your staff is not riding the clock2.2. Make sure your staff is not riding the clockMake sure your staff is not riding the clock•• Look for “Dragging” and “Socializing”Look for “Dragging” and “Socializing”•• Know sideKnow side work timingwork timinggg

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

3.3. Audit your time keeping, verifying that Audit your time keeping, verifying that your staff is not punching in under theyour staff is not punching in under theyour staff is not punching in under the your staff is not punching in under the wrong job codeswrong job codes•• Often lineOften line employeesemployees work more than one work more than one

iti t diff t titi t diff t tposition at different pay ratesposition at different pay rates•• Write it downWrite it down

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

44 Audit sales every hourAudit sales every hour4.4. Audit sales every hourAudit sales every hour•• Monitor POS and look for when the rush Monitor POS and look for when the rush

starts and ends by the numbersstarts and ends by the numbers•• BeBe very aware of the kitchenvery aware of the kitchen•• Simplify cutting with an EarlySimplify cutting with an Early--Out SheetOut Sheet

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

5.5. Schedule staff according to salesSchedule staff according to sales•• Must have sales forecast by day of the weekMust have sales forecast by day of the week

Use a Staffing GuideUse a Staffing Guide•• Use a Staffing GuideUse a Staffing Guide•• Three weeks make a trendThree weeks make a trend

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

6.6. Avoid overtime at all costsAvoid overtime at all costs•• Staff for salesStaff for sales

Management to approve all schedule changesManagement to approve all schedule changes•• Management to approve all schedule changesManagement to approve all schedule changes

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

77 Make selection and training a priorityMake selection and training a priority7.7. Make selection and training a priorityMake selection and training a priority•• Poor selection is worse than being short Poor selection is worse than being short

staffedstaffed•• A great training program WILL reduce costly A great training program WILL reduce costly

turnover turnover –– follow PPETFfollow PPETF

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7 Must7 Must--Do’s to Controlling LaborDo’s to Controlling Labor

11 Ch k th t t ff i t l ki i tCh k th t t ff i t l ki i t1.1. Check that your staff is not clocking in too Check that your staff is not clocking in too soonsoon

2.2. Make sure your staff is not riding the clockMake sure your staff is not riding the clocky gy g3.3. Audit your time keeping, verifying that your Audit your time keeping, verifying that your

staff is not punching in under the wrong job staff is not punching in under the wrong job codescodescodescodes

4.4. Audit sales every hourAudit sales every hour5.5. Schedule staff according to the salesSchedule staff according to the sales6.6. Avoid overtime at all costAvoid overtime at all cost7.7. Make selection and training a priorityMake selection and training a priority

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What We Covered:What We Covered:

Why employees who work more than one Why employees who work more than one position in your restaurant have the greatestposition in your restaurant have the greatestposition in your restaurant have the greatest position in your restaurant have the greatest potential for time clock abusepotential for time clock abuse

How this simple acronym, “PPETF”, is your key How this simple acronym, “PPETF”, is your key p y , , y yp y , , y yto a well trained and efficient staffto a well trained and efficient staff

How this valuable report can save you How this valuable report can save you thousands in overtime paythousands in overtime pay

How to avoid cutting too soonHow to avoid cutting too soon

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