Managing employees in the foodservice or hospitality industry is a process that can quickly become a nightmare for both staff and managers.

Staff expectations and requirements will not mix well with business requirements leading to lower employee retention, higher employee turnover, and a reduction in profits for your restaurant.

Most businesses in the restaurant, foodservice and hospitality industries such as table service restaurants, bars, clubs, country clubs, and quick service / fast food restaurants have very little control over the monthly budget. After a lease is signed the building and utility costs will remain relatively fixed, licensing fees and insurance rates will not change drastically month over month, and credit card processing fees usually scale with the business growth.

Managers, however, can directly influence three of the largest budget line items:

  • Advertising expenses are normally purchased in 3 – 12 month quantities, and are not likely to change on a monthly basis.
  • Inventory including food and beverage expenses can change based on a number of factors, and switching suppliers is difficult and time consuming.
  • Labor costs will vary on a monthly basis based on the prevailing wage, employees leaving (or being fired), staff communication, management practices, and a number of other factors that can be directly controlled by managers.

Of these three line items, managers have the most control over labor costs, which can be manipulated to improve business profits. Inversely, improper management of labor costs will reduce the business’s ability to satisfy customers and expose the business to the risk of liability lawsuits and labor violation fines – instantly slashing the restaurant’s profitability!

Improving employee labor scheduling and time / attendance management should be an ongoing effort in your business that results in happier staff members, better customer satisfaction, and higher profits for your company.

TimeForge is a leading provide of powerful and simple-to-use employee scheduling and online labor management software for the restaurant and retail industries. TimeForge software is used by restaurant owners and operators around the globe to increase profits, reduce turnover, and improve retention.

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