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Labor Cost Control For The Restaurant Industry

Labor cost control is an ongoing challenge that all restaurants face. In a highly competitive market place, employee retention is necessary for sustaining a professional level of customer service. By maintaining appropriate staff levels you will also positively impact labor costs. Coming from a company with over half-a-million users and an industry leading 99% customer […]

Labor cost control is an ongoing challenge that all restaurants face. In a highly competitive market place, employee retention is necessary for sustaining a professional level of customer service. By maintaining appropriate staff levels you will also positively impact labor costs. Coming from a company with over half-a-million users and an industry leading 99% customer satisfaction rate, accurately scheduling your employees will result in a more efficient business.

Deviation from your budgeted forecast creates a variance that can increase your overall labor costs. An effective schedule, however, utilizes current staff and avoids unnecessary cost adjustments. HotSchedules maximizes a restaurant’s guest service level by using past operating trends to provide insight on future staffing. Our tools give you the ability to create multiple schedule templates from which managers can select based on projected hours and costs for each shift. Effectively scheduling your staff this way will result in greater labor efficiency.

The three main factors when considering restaurant labor forecasting are:

Cost of employment: This consists of total costs for recruiting, hiring and training of staff.
Cost of operation: This mainly consists of payroll, overtime, bonus wages and related taxes.
Environment work costs: Variables that take into account absenteeism and pay scale shift changes.

Integrating HotSchedules into your labor cost strategy provides an open communication portal between managers and employees, resulting in greater employee retention. In addition, monitoring your forecasts with HotSchedules creates a fast, proven ROI through reduced scheduling time and labor costs. Controlling your labor costs can be accomplished by creating an efficient schedule, and should be a first priority in your everyday business decisions.

Remember: The main goal of labor control is to attain the optimal level of staff without compromising service.

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