Read Part 1 of the November newsletter here.

Some of the improvements to the TimeForge products are detailed below.

TimeForge Scheduling - Improvements for Employees
The employee side of TimeForge Labor Scheduling has received a number of improvements over the past few months, including some major improvements this past weekend.  These include:

• Employees can now delete their own pending requests, without requiring manager approval.  This allows employees to become “available” for work without needing to involve management.

• Searching for available shifts is now easier than ever.  Employees can view qualified “open” shifts with a single click – or they can search for specific shifts by date and time.  Once a potential shift is found, a shift swap request can be made directly through TimeForge, with a single click.

• The employee interface has been improved to show shift notes, sections, and make the screens more user friendly.

TimeForge Scheduling - Improvements for Managers
The management side of TimeForge Scheduling has received many improvements over the past few months, including some important improvements this past weekend.  These include:

• The Schedule Summary screen now includes a number of useful metrics, including the number of variable hours scheduled, non-variable (management) hours scheduled, as well as the hours, labor costs, and the costs of breaks.  A number of other important numbers are recorded on this screen as well!

• Many of our users have requested the ability to forecast – forecasting for sales, customer counts, inventory orders, schedules, or staffing levels.  Many of you want to be able to compare labor costs, labor hours, or scheduled shifts directly to the projected numbers to see how the schedule stacks up.  In Excel, this is very hard to do accurately.  It’s now available in TimeForge! Managers with TimeForge Scheduling Basic, Pro, and Max can enter daily, hourly, or quarter-hour manager projections (or actual values), and TimeForge will display and enforce labor percentages in the schedule.  Check the TimeForge Blog for an upcoming tutorial on the usage of the TimeForge Forecasting System.

• Adding and editing schedules has never been easier!  TimeForge automatically adds new shifts as you type, reducing the number of clicks that it takes to create a schedule.  Also, the schedules can now be sorted by position, start time, end time, or employee.

Other information about the TimeForge update can be found in Part 1 and Part 3 of this newsletter.

Are complicated employee scheduling practices taking up precious time at your business? Are you making the best possible labor schedule? How much turnover is created because of bad, or late, schedules? Did you know that TimeForge can reduce turnover, improve retention and increase profits at your business? Sign up today for a free trial!

During economic booms, such as those witnessed during the last few years, many businesses focused on increasing sales while their operations lagged behind.  Operational aspects such as inventory control, portion sizing, reducing turnover, improving employee retention, and training are all import details of hospitality and retail businesses that can be swept under the rug in good times.

Jim Sullivan, the chief executive of Sullivision.com recently penned “In hard times, control costs instead of hiding your inefficiencies by just pumping up volume” at Nation’s Restaurant News.  Although his article is meant for restaurants, it is also applicable to retailers, hotels, and other similar businesses.  Jim covers a number of issues, including one aspect of running a business that is often forgotten in the day to day operations:

Remember, all money is not created equal: $100 in sales is $100 less taxes and expenses; $100 in savings is $100. Here are some fiscal fundamentals to review and execute with your team in both tough times and boom times.

Now is an excellent time to revisit your business’s operational procedures, making them be more efficient and cost conscience - immediately improving profit at your business.  A variety of tools, including TimeForge, are designed to improve cost controls at your business - producing schedules in minutes instead of not hours.

Can you build a schedule in less than 10 minutes?  How many thousands of dollars do you spend making schedules every year?  Did you know that TimeForge can minimize costs and increase profits through effective employee scheduling at your restaurant, pizzeria, hotel, club, bar, or retail business. Sign up today for a free trial!

Not too long ago, I helped a user (Big Biscuit) with an inventory related question on the Foodservice Forums located at www.foodservicei.com

His questions (paraphrased) were:

• Let’s say that 15 restaurants have an average food cost of 27.50%
• If one of the fifteen restaurants has a 29.50% food cost, could the reason for the higher food cost be because of their product mix? Or, is the only option product theft or shrinkage?
• Put another way: Could a higher than average food cost at one store be because they sell more individual menu items that have higher food costs?

What an interesting question! This question isn’t specific to the hospitality / food-service industry, and could easily apply to a car dealership (average price of a vehicle), retail store, or plumbing repair shop. Without getting too deep into statistical analysis, the general answer to an anomaly in inventory is “it depends”, as the problem could be related to:

1. Vendor changes (perhaps one store gets smaller cuts of beef, so they have to use more beef to get the same amount of stew).
2. Personnel changes (a new cook may use more or less butter than her predecessor)
3. Shrink or Shrinkage (fraud, theft or loss of a product, accounting errors, or perishable inventory)
4. Different product mix (using or selling different quantities of inventory items)

To illustrate this particular problem, let’s assume we have two stores:

Store A and Store B sell the same “stuff” (menu items), and each store has sales of $1,000 per day.

Store A is located in a place where only “locals” would know about it, and most of the locals order burgers, which run $5 gross, but have a food cost of $1 (20%). The patrons also occasionally purchase steaks, at a gross of $20, but with a higher food cost of $10 (50%).

In this case, Store A has a product mix of 20 steaks ($400 gross, $200 in food cost), and 120 burgers ($600 gross, $120 in food cost). Total food cost is $320, or 32% ($320 / $1000) food cost, and each of the 140 clients spent an average of $7.14

Now, let’s say that Store B is located on the boardwalk, and sells more steaks than burgers. With 40 steaks ($800 in gross, and $400 in food cost), and 40 hamburgers ($200 gross, $40 in food cost), Store B’s product mix has an average food cost of 44% ($400 + $40 / $1000), and each of the 80 patrons at this store spent an average of $12.50

In this case, Store B has a 12% higher food cost than Store A. Interestingly enough, Store B only served 80 patrons, compared to the 140 clients that Store A was able to serve - another excellent indicator for tracking shrinkage. What is the average of the two stores? 38% food cost and $9.82 per person on an average check. Both stores are 6% away from the “average”.

As illustrated by the above example, varying product mix can certainly cause food costs to fluctuate, and one should be very careful when comparing averages against each other.

How do you compare product mix at your location?

How long does it take to make an employee schedule? It should take less than 5 minutes! Did you know that labor costs could be as much as 30% of your expenses? TimeForge can help streamline and minimize labor costs through effective employee scheduling at your restaurant, bar, or club.

One of the newsletters that we receive at TimeForge is the excellent (weekly) Restaurant Report Newsletter. Two weeks ago, this question was posed in the newsletter:

“Inventory Control Programs - What would you recommend as the best inventory control programs that is easy to read, follow and upkeep with information. As well we are looking into a new computer system and program for the front of the house….what would you recommend. We are in Canada and service and maintenance of course is very important.”

Several years ago, we did a study of food-service industry inventory programs, and looked at the adoption and usage of inventory procedures in the marketplace. During this study, we also spoke with many of the “obvious” players in the industry - so we sent the poster a response to her question, which was published in this week’s Restaurant Report:

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As I’m sure you are aware, there are dozens of inventory systems on the market today, and even more if you consider systems which are part of the “back-office” software suites.

The interesting thing about inventory systems is that….few people use them. We did a study about 2 years ago of all of the major players, and how many people used their products. Less than 20% of the market uses inventory control (with a computer). That being said, there are some amazing programs out there that will help reduce food costs and/or track inventory.

Some of the main vendors include:

Eatec, MenuLink (part of Radiant), and Compeat are all “high end” systems. Expect to spend between $10k and $40k for your store to get started with one of their packages. Really designed for very large chains. These guys own about 3 - 4% of the hospitality inventory market.

iPro is (was) a one-man show, and is the “bargain bin” version of inventory software. I would stay away from this product, even if it’s only $99. They own about 1% of the market (mostly eBay purchases).

ChefTec is “the” independent inventory product in the US, and is based out of Colorado. Getting support isn’t always easy, but they are very knowledgeable about their product. About 20 employees (as of 2 years ago), and their product starts around $1k. About 2-3% of the market (on the high end).

Cost Guard is an excellent product, which was recently upgraded and a lot of new documentation was written for the product. The owner lives in New York, and runs a tight ship…but there are only about 4 employees at last count. Probably have about 1.3% of the total market. Given the opportunity, I would recommend Cost Guard over ChefTec.

Optimum Control is a Canadian company, and as of 2 years ago, had about 6 or 8 employees. They claimed to have 3,000 installed restaurants, or about .3% of the market. Pricing is around $1k.

If I was you, I would recommend that you give Optimum Control and Cost Guard a try, and see which one works better for you. I believe both of the products have online or downloadable demos.

Regarding the front-of-house…are you interested in a POS system, a reservation system, a scheduling solution, a marketing solution, a video surveillance system, bar and liquor control, or something else? There are all-in-one solutions (I don’t recommend them), and there are individual pieces to the puzzle.

Of course, if you need a labor management tool - please take a look at our software.

Hope that helps - good luck!

Anthony Presley
Founder
TimeForge.com: Restaurant Employee Scheduling Software
P: 866.684.7191

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After writing this, I was contacted by Kenny at Cost Genie, and am currently reviewing their product. So far, it looks like something you might want to review as well.

How long does it take to make your employee schedules? It should take less than 5 minutes! Did you know that TimeForge can streamline and minimize labor costs through effective employee labor management at your business, bar, club, grocery, convenience store, or restaurant.

Because guests and employees leave!

I went to get a late lunch at a local Taco Bell store at about 4:00pm today. I only had a few minutes (which is why I went to Taco Bell rather than Rosa’s Cafe just down the road) before I needed to be at my next appointment. I pulled into the drive-thru line behind 3 other cars (all of whom had already ordered) and waited for the attendant.

About three minutes went by before the employee inquired about my order. Our conversation was:

• Me: “I’d like a Zesty Chicken Bowl.”
• Employee: “Ok sir. We don’t have any Zesty sauce, is that OK?”
• Me: “No. I prefer the Zesty sauce. I suppose I’ll just have a soft taco and a bean burrito.”
• Employee: “Thanks sir. Would you like hot, mild, or fire sauce? Would you like a drink?”
• Me: “Yes, I’ll take some fire sauce. Don’t need a drink.”
• Employee: “That will be $1.92 at the window.”

As soon as I was done ordering (the line of cars did not move at all), a lady in a white car pulled in behind me, blocking any escape. Three more minutes went by before the line in front of me moved forward. One car. Six minutes. The man directly in front of me moved forward, and turned his car off. And we waited. I cleaned out my car and dumped the trash in Taco Bell’s trash can. Six more minutes went by – and the car at the second window drove off. The gentleman in front of me turned his car back on, and after yelling at the clerk, moved forward to receive his food from the first window.

I rolled down my window and paid the female clerk $1.92 before she sprinted off to help the kitchen. I was given the opportunity to listen to three more songs (six more minutes!) on the radio before food arrived for my compatriot in front of me, and I got to the first drive up window to receive my food. From my vantage point – I could see the problem.

Taco Bell had two dozen customers in the front, eating or waiting on their food. One clerk was attending the front counter. One girl was standing at my window, with receipts printed out and placed on napkins (for quick placement into bags). She also appeared to be taking the drive-thru orders. The clerk who took my money was running all of the food lines by herself – making and assembling all of the food, then running back and taking money from drive-thru guests. She obviously was not the fastest line cook that they employed.

Six more minutes went by, and the clerk opened the window, said “I’m sorry about the wait”, and shoved my food at me.

Had Taco Bell appropriately scheduled their labor force for a Sunday afternoon, getting my food might have taken less than one minute. More importantly, they would have served six-times (6x) the number of customers, which would mean six-times (6x) the profit.

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.

Controlling Profitability

Controlling profitability can be relatively easy to achieve if you understand and implement specific financial management skills. Food/beverage costs and labor are the two highest controllable costs for any restaurant, regardless of size. Since food costs can consume as much as 33% or more of every sales dollar, it is important to have systems in place that address portion control, inventory management, waste, prep and pull procedures, comp and coupon control, and more.

Using quantitative as well as qualitative measurements enable restaurant managers to keep their fingers on the financial pulse of the business, while never losing sight of the service quality or customer and employee satisfaction levels. It is equally important for managers to know the percentage of each dollar of revenue that is consumed by labor costs and how to control those labor costs by using available labor metrics. Of course, knowing your labor costs and controlling them are two entirely different subjects. That is why it is also necessary for managers to be scheduling experts with the skills and abilities needed to balance service quality standards and customer experience against the costs of operating the business effectively and profitability.

How long does it take to make an employee schedule? It should take less than 5 minutes! Did you know that labor costs could be as much as 30% of your expenses? TimeForge can help streamline and minimize labor costs through effective employee scheduling at your restaurant, bar, or club.

The Financial Side of Labor Management

In the previous articles, we have had a look at tangible and measurable variables that contribute to operating costs. We discussed how inventory control, portion control, budgeting and other sound business management practices work together to keep food costs down to a reasonable percentage of gross sales.

We have also had a brief look at labor costs and their contribution to overhead expenses. Now it’s time to take a closer look at the financial side of labor management and how effective scheduling can keep labor costs under control without negatively affecting the customer’s experience.

One of the most important tasks that any manager faces is staff scheduling. Oddly enough, as important as this task is, few managers receive any formal training in personnel scheduling. It’s something they are simply expected to know how to do. Unfortunately, many restaurant managers do not understand how to effectively schedule staff – and this costs the restaurant money and contributes to the amount of frustration among the managers and employees.

How long does it take to make an employee schedule? It should take less than 5 minutes! Did you know that labor costs could be as much as 30% of your expenses? TimeForge can help streamline and minimize labor costs through effective employee scheduling at your restaurant, bar, or club.

Using Qualitative Controls

Although many issues can be measured using quantitative measures, some issues contributing to your P&L, such as employee turnover and customer satisfaction, need to be measured qualitatively. Qualitative controls can also be extended to purchasing by ordering specific brands based upon their quality and cost attributes and buying food, beverage, sanitation, and other products in the most appropriate weights or package sizes to optimize costs.

Stringent inventory control procedures also contribute to managing food costs. While a manual inventory control system is better than no inventory control system, computerized systems offer a method for easily managing the entire inventory control process, which includes receiving, storage, issuing, quality control, waste and theft-prevention measures. Beverage management, while a part of overall inventory control, requires additional oversight in order to regulate pours and to ensure that each drink served is priced correctly, according to liquor brand. By using qualitative measurements in specific aspects of your restaurant, such as inventory control, you can greatly minimize the excessive expenses that your business may be experiencing.

Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.

Factors Affecting Inventory Control

With today’s food costs running as high as 33% of gross sales in some markets, there is no margin for error when it comes to managing costs. An effective cost-control program must be multifaceted in order to close all of the profit-draining holes that exist both in the front and the back of the house. Any comprehensive cost control system must take into account several factors, including inventory and portion control, just-in-time ordering to avoid spoilage, vendor price comparison, accurate receiving procedures, waste, prep and pull procedures, compensation, and coupons control.

Of course, quantitative techniques, or “number crunching”, is a basic step in the process of reining in food costs and keeping them under control. The ability to create a budget and track all expenses against that budget provides an accurate snapshot of actual food costs and other overhead, but it does little to identify all of the factors that contribute directly or indirectly to those expenses. Likewise, knowing your average ticket and table turnover statistics provides a good foundation for sales and revenue forecasting. Use a budget in conjunction with measurements and ratios for an accurate idea of how to improve your restaurant’s profits.

Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.

How to Quickly Minimize Labor Costs

There are a minimum number of employees necessary to open a restaurant up for business every day and close it down at night. Anyone else that is generating payroll expense during any particular shift should be there because their presence is in direct relationship to the current shift’s business volume, not because their name showed up on the schedule. Payroll costs are not a hard-and-fixed expense. They can and should be as variable as the number of covers on any particular day.

Understanding key ratios and effective scheduling principles can bring runaway payroll costs under control quickly and easily. Likewise, understanding how to implement portion control and a variety of other cost reduction methods are an essential part of every restaurant manager’s day-to-day responsibilities.

Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.