Labor Management. NOW Simple.

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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Do you own or operate a retail or restaurant company?   Perhaps your store sells collectibles, health food products, cell phone accessories or curtains and rugs.   Regardless of the goods being offered, tightly controlling your labor expenses in the current economic climate is crucial to generate a profit.   Relevant employee expenses including payroll costs, training, and turnover should be properly managed.   With the proper procedures and a set of tools to assist with the complex chore of managing labor, your business can increase profitability.

One key to managing a labor force properly is to schedule part-time and full-time employees before they are needed for work (a theoretical work schedule), and then track the scheduled work against when employees clock-in and clock-out (the actual worked hours), a process known actual vs. theoretical, or AvT.   Good managers reduce the difference (variance) between the Actual hours worked and the Theoretical schedule, while maximizing the sales for the business.

Improper labor scheduling will lead to one of two circumstances for your business:

1. Too many employees are scheduled to work, increasing payroll costs, and reducing profits.   Alternatively, employees are sent home (or cut from the schedule) without working hours they were promised on the schedule.
2. Too few employees are scheduled to work, decreasing the number of sales that are made, and reducing profits.

Neither option is desirable, and the key to avoiding both situations is to monitor and refine the AvT at your business.

Smart managers constantly balance employee satisfaction against the needs of the business in an effort to keep payroll costs down, reduce turnover, and increase profits.   Turnover is extremely expensive, and a 2004 study by the Employment Policy Foundation found that the average turnover cost of a single full-time employee is $13,355.   To recover from the effects of the turnover of a single full-time employee, a retail store would need to sell more than 3,000 pairs of khakis priced at $35 each.   A restaurant would need to sell more than 7,613 children’s combo meals at $2.50 each.

One way to reduce turnover at your store is to implement a labor scheduling tool such as TimeForge, an online employee scheduling solution.

Peter Edwards, owner of Zeb’s General Store in North Conway, New Hampshire knows that proper employee scheduling is key to managing a retail business, especially a seasonal business.   Peter chose TimeForge to help him manage full-time and part-time shift labor at his store. reducing employee turnover and lowering labor costs.   Peter uses templates in TimeForge to rapidly build schedules for his business, and TimeForge automatically emails and text messages the schedule to his employees on a daily basis , notifying employees of their upcoming work schedule and keeping his staff happy.

Peter had this to say about TimeForge:

I own a retail company.   We employ 15 full time employees, and between 5 and 15 part time employees depending upon our season.   I signed up for the 90 day trial period and have been using the TimeForge program for about 45 days.   I have found the program to be easy to use and it hits the mark with respect to our staff scheduling needs.   The email notification aspect of the program is a great feature that I am sure our employees will like.

The most important aspect of TimeForge is the incredible customer support.   Responses to the help menu item are emailed within 24 hours, and a live person actually answers the phone to respond to your questions.   I look forward to using TimeForge and would be pleased to talk with any prospective user of the scheduling program.

If you would like to see what TimeForge can do for your restaurant, hospitality, or retail business, then please sign up today for a free trial or contact our sales department for more information about TimeForge.

How long does it take to make an employee schedule for your employees? It should take less than 5 minutes! Did you know that TimeForge can minimize costs and increase profits through effective employee scheduling at your pizza, restaurant, hotel, bar, club, or retail business. Sign up today for a free trial!

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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.

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Income Is Not the Same as Profit

When the front of the house is full and the kitchen is just short of being backed up, it’s easy to think you’re making money as you watch the cashier process ticket after ticket. And the truth is: you probably are making money; but, it’s not how much you make that counts , it’s how much you get to keep.

The secret to managing with a goal of profitability is to achieve the perfect balance between overhead costs and sales. This may sound easier said than done, but it actually is relatively easy to achieve if you understand and implement specific financial management skills. Restaurant managers are not accountants, nor should they be expected to be. However, they are the people whose decisions have the most ability to impact a restaurant’s bottom line and managers do need to have access to the tools and technology necessary to get the job done.

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.

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