In a recent entry, we discussed where improper labor scheduling led to very poor customer experience at a local Taco Bell store. In addition to upsetting their guests, the labor shortage caused several other problems within their store , many of which will have long-term negative consequences for the restaurant.
What did the labor shortage cost them?
- Guests were unhappy. This includes myself and the man in front of me, at a minimum. The guests inside were not very happy either. Will they come back? There is no way to know, but Taco Bell has two direct competitor’s (Mexican QSR food) less than two blocks away.
- Employee Satisfaction. There is no doubt that the employees were upset because of the increased workload, pressure, and the guest dissatisfaction. The labor shortage was likely a management decision, which has directly affected the employee morale.
- Increased Turnover. Most QSR employees have prospective jobs within a few yards, and this fast-food concept is no different. While sitting in the drive-thru, I could spot at least six other businesses that would readily hire any of the Taco Bell employees.
- Reduction in sales. One customer every six minutes? Assuming that this restaurant concept averages $1.00 in net profit per customer, they are making only $10 per hour in profit. How did we calculate their profit? 60 minutes / 6 minutes per customer = 10 customers served. $1 per customer = $10 in profit per hour. By improving their serving time to 1 customer per minute, they could have made $60 per hour!
What could they have done to properly allocate their work-force?
- Could they have chosen a more skilled cook to work alone as the line cook? A skilled worker may be hundreds of times faster than an un-skilled worker. (TimeForge can assign employees to shifts using skill levels!)
- Could the drive-thru order processing and the front-counter clerk duties been merged to one person? This would have put a second body in the kitchen, potentially more than doubling their kitchen output. (TimeForge can track labor costs, helping managers decide which job functions can be combined)
- Could they have scheduled a fourth employee? This would have increased their labor cost, but the extra worked could be sent home after their sales and labor peak passed. (TimeForge can schedule additional employees with a single click).
- And many other options!
It might be time for the management of the store to look for a cost-effective scheduling tool, such as TimeForge!
How long does it take to make your labor schedules? It should take less than 5 minutes! Did you know that TimeForge can streamline and minimize labor costs through effective employee scheduling at your restaurant, bar, club, or business.