Increase Your Profit Series: Part 1 (By Simply Managing your Labor Costs)
05 Feb, 2014 | Tags: Bar Promotions, bar scheduling software, conflict free schedules, Employee Schedule, Employee schedule calendar, employee schedule template, Employee Schedules, Employee Scheduling, employee scheduling programs, Employees Schedules, job schedule, Menu, Online Restaurant Scheduling Software, Profit, restaurant schedules, restaurant scheduling software, Schedules
We all know that sales equal profits, but we don’t always think about how much profit we get from each sale. In the restaurant and bar industries there are 3 main costs that can have a significant impact on your profits. The most successful business operators are constantly checking their budget weekly to ensure that they are hitting their target costs to equal the highest amount of profits. These three main sections are food costs, beverage costs and labor costs.
Labor costs can be the trickiest piece of the puzzle to figure out, and unfortunately it usually works out to be about 60% of operations costs. You may think that a standard, repeating schedule each week can help you, but it can be one of the biggest mistakes. Yes, you can save time in creating and communicating your scheduling, but you could be faced with over- and under-staffing. Without adequate staff you are faced with the inability to provide consistent high level service to your customers and if you have too much staff working during a slower shift, you are losing a considerable amount of money. So how do you schedule the right number of staff for each shifts/days/weeks/months?
To accurately calculate the right number of staff on each shift is through reviewing past schedules against shift sales and then forecast your sales for the upcoming weeks/months. On average a good rule of thumb is that your labor cost should not be more than 18% – 24% of the expected sales. Accurate forecasting can take a while to master, but WhatTimeDoIWork.com offers the ability to help you.
WhatTimeDoIWork.com online employee scheduling software was developed by employee schedulers from the restaurant industry. The software saves and stores previous schedules for easy access when comparing to your sales reports and for creating upcoming schedules. A unique feature of WhatTimeDoIWork.com scheduling software is the ability to track and calculate labor costs as you create the schedule, telling you while you make the schedule what your labor costs will be. There are many other great features offered by WhatTimeDoIWork.com online scheduling software to help you save time and money. To learn more try our no obligation 30 free trial today!