Restaurant Owner Labor Cost Tip: DO THIS, and you can be in Hawaii next year...
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- Опубликовано: 9 авг 2013
- Restaurant Owner Labor Cost Tip: DO THIS, and you can be in Hawaii next year...
That's right, Hawaii, on the beach relaxing and you paid for the trip with this one simple tip! Everybody talks about food cost and focus on it, but with labor cost in your restaurant, you can make little changes, with a huge impact fast.
Labor cost is one of those things that I find most managers are half in and half out. They want to cut staff to make the numbers, but they don't because sometimes it means more work for them. Watch this video to find out the one simple thing you can do to avoid the additional cost before the end of the month when it is too late.
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What is your best labor cost saving tip or strategy? Please leave a comment below to engage with others in the restaurant community! Or to really continue the conversation with your peers and get more great ideas, visit my blog at www.TheRestaurantBoss.com
How do you make sure employees clock out when they are cut?
you make sure they clock out. If they don't, then it stalls their paycheck. When that happens they will quickly make sure they clock out in the future and clock out correctly.
Thank you very much
I need the method to calculate the cost of each item in the menu and how to allocate utilities costs
I would never advise calling employees off. If they were hired under agreement to work a certain number of hours a week, they are relying on that income. Cutting those hours promotes discontent and this will begin infiltrating your work force and eventually get to your customer service in some form, especially if they think it is being done so the boss can take a trip to Hawaii. Better to know how many hours you want them to work in advance and hire based upon their agreement to meet those hour requirements. I agree, labor cost goals are critical and they should be monitored and planned, but we are talking about the lives of people..not just labor costs. Been in restaurant business for 25 years. I like this series of videos a lot.
john mutchka, I applaud you for taking your employees incomes so seriously. We need more owners like you in the industry. Obviously, our intentions are to give employees as many hours as possible. What I was trying to say, and could have done a better job, is what you just said. Don't over staff and plan to cut, but when it is time to cut, on a slow day or end of the night, make sure they get out ASAP and don't hang around. I usually ask if somebody wants to get cut, there is always somebody who wants to get cut early! So glad you enjoy the videos, so many more exciting one to come!
I agree 100%. And you're right, there is always that person who has plans and wants out early! thanks for the response.. will be looking for more of your videos! great job on all that I have seen.
bullshit....it will make them respect the fuck out of you..."gawd this guy means business" ...Nothing garners MORE respect
David Butts, No way! You're the EXACT person I would never work for. I learned this lesson a long time ago and it's never been so true and that is... respect is a 2 way street. Good luck working by yourself.
john mutchka i Walt to open m'y Own takaway can u help
Try to find ways to boost your sales instead calling off your staff. They may want to go Hawaii too😎
Exactly! But until you boost sales, you need to lower your costs. Hawaii sounds amazing!
Thank you Ryan, you are great. I love your videos
Good info...loving your videos right now.
Thank you Ryan, you are great.
Great video, thanks!
Thanks, great information. I'm currently in the planning phase of opening up a restaurant and will be contacting you in the near future.
I just saw your comment, how are the restaurant plans coming along can I help?
Simple rule to follow... track sales projections carefully, then creat a labor budget... its simple, you can't write a schedule with out a labor budget. For my restaurant personally we do about $8k -$10k a day and our labor goal is 16% total labor for hourly team members.
Yep it is pretty simple...if anybody needs a tool to help them with this, please visit therestaurantboss.com/software
10k per day ?? Can I marry you?
Love the videos.
I'm trying to get my management team to do exactly what you spell out and wanted them to view this but the Hawaii comment ruins the whole piece..."so now our owner just wants us to watch costs so HE can go to Hawaii."
Ha ha....yeah sorry about that... It is just meant as an example to show how a few pennies here and there can really add up!
"Rick Rolled"
-this message brought to you by a 5 year pawn in the food service industry.
thank you boss awesome
I love you, i am a restaurant manager for McDonald's and need this knowledge daily. Thank you ,
AWESOME!!! If you really want to take a deep dive into restaurant management, check out my Restaurant Manger Certification program at therestaurantboss.com/programs/rmc!
Interesting idea. Definitely woke me up a bit more to ways I can improve business. And you gave it for free.
Thank you.
+Paradigm Wolf There are always ways we can improve, the trick is doing it, now knowing it. Let me know if I can help.
You are brilliant
Thanks for the video...
Your welcome.
wow, it made sense...love it
I am so glad you enjoyed it.
Liked and subscribed!
Awesome!!!
Thanks Ryan🌎 Greetings from Colombia. The Venezuelan Immigrant writer, ecologist, entrepreneur 🇻🇪
Nice to meet you!
Love this!
Thanks Donna!
-Dawn, Team TRB
Wow this makes sense. I'm currently opening up a bar and grill restaurant in Dallas Texas.
How is the opening going, I am going to be Austin next week.
I haven't opening it yet, due to some circumstances...
Wow, awesome. My fiancé and I are planning to open a restaurant this year and I'm learning a lot. Would love to pick your brain and bounce ideas off you!!
Please take a look at my website and when you are ready there are multiple ways we can make this happen.
How's your business going?
Well,you are talking from a point of view of owner, rather motivate your staff and build strategies to increase sales and yup keeping a check on cost is of utmost important but the employee also want to take his family to Hawaii. Employee retention is also important. Remember together we can make difference.
You are absolutely right . Once they get less they leave . Rehire and train will will cost more . Also the wastage resulted will be way more I believe
@@moshahine8138 Exactly
Great video
Thank you.
Hi sir..thanks for making videos on rest managing skills. Would like to know, is there a software to track all the details like food cost labour cost etc.....
Lots of different options, our company has one called BACON. clickbacon.com
If you want to save labor costs look at ways to reduce employee turnover. If I'm scheduled to work a shift and I've built my schedule and budget around working those hours and you call me to tell me you don't need me to come in to work....I'm gonna look for another job...some things are automated and its ok to turn a machine on and off at your whim...people are not machines...hrs on your budget....when you start thinking of employees like numbers you can manipulate you will soon find that if you are not meeting your employees needs they will leave you and find a new employer....the money you lose from unsavory employer practices resulting In high turnover will be much greater than your $10 a day....you might find yourself in a sleeping bag on a beach in Hawaii when you lose your restaurant....bad idea 💡 😕
Thanks for the comments, this video was posted 9 years ago. We were in a very different economy then. It was very expected and common that FOH team members were often looking to work less hours and happy to leave early on certain days. Things are very different now and I agree with you more than ever. We are going to film an update to this video and link over to it next week. Thank you so much for sharing your thoughts.
The point that you control your staff or following your business then you will know the trend from monday to sunday so you can organise your staff and don't need to call staff off.
Exactly! You have to know your numbers so you act proactively vs reactively.
can you pls tell me how much capital is needed to open a medium size restaurant
One thing I've noticed is that they keep scheduling according to projections even though actual sales based on d prior year are way off and we end up over staffing like 15 servers for a 4k a.m shift..how can i make them understand that they need to look at past sales as well...
So my poor worker is shorted pay for the week. But one day I may go hawaii. Love the time tracking mechanism tho.
hai chef. I am about to start a restaurant in south India. please guide me .
Thank you dear. Can you tell me pls what is the difference between plate cost and inventory food cost..and for what reason we use inventory food cost
Hi Nachaat! I have a very old video, but a very good one on calculating food cost where I talk about this exact subject. Check it out: ruclips.net/video/QpYX4GfSiHA/видео.html
@@Therestaurantboss thank you dear.,,,🌹🌹
Hey man, I love your videos. But, isn't the best way to lower labor % is to build sales??
jordan hearin I once worked for a man that said Volume fixes everything... I can't say that I agree. If you are at a point where volume is so low, that even on a skeleton staff your % is too high, then yes you need more volume. But just focusing on growth is a recipe for disaster. You MUST have you systems and efficiencies in place before you can focus on aggressive growth!
Zing Zing amazing!
Just make sure you don’t focus more on labor than your people. That short staffed shit is cool some days but no t every day so it’s important not to take it too far
Hey Joe! Have you watched the last video few I released? Especially the ones on service fees vs raising prices. I address this specific topic!
How many restaurants do you run, if you don mind me asking?
Hi Sunny! I do not currently run any restaurants so I can operate my businesses (therestaurantboss.com and clickbacon.com). However, I have successfully run 4 restaurants in the past. You can learn more about me here: therestaurantboss.com/about/
Good video, Ryan!
I SEE WHAT YOU MEAN
I came here through Escoffier culinary school
this is 100% correct , obviously the goal is always to increase sales . I am in business to make money not to satisfy my employees. Yes we need to look out for them and pay them good , but we cannot keep them at work if it gets slow . In regards to your vacation comment , its true whats the problem owners , managers deserve vacation also not just employees!!!
Thanks for the comment, this video is less about right or wrong, obviously we want to give as many employees as many hours as possible as you said, this is about controlling things. Staying on top of the numbers, what is actually happening in your restaurant. It is amazing how small changes make a huge difference over the year, then you multiply that year over your career and it can he hundreds of thousands in added profits.
Sheesh, entitled much?
👌
My Staff dont work when Owner is not around so how to hear what they talk when I out of restaurant
It's not so much what they are saying as what they are doing.
Labour cost is the biggest outlay!
How do you lower labor cost without losing employees by calling them off to keep a solid staff to avoid employee turnover?
That's the million dollar question, right? Our CoGS are always going to fluctuate but labor prices are never going back down. We just released a video on employee turnover last night. ruclips.net/video/KRSu_MC79VQ/видео.html
If you want to go deeper, we do a new monthly training topic every month (plus a group Q&A call where you can ask Ryan anything). In January, the topic is employee onboarding. It's the most overlooked, under utilized way of avoiding employee turnover. It's a members only training and you can learn more here: www.therestaurantboss.com/membership
Dawn - Team TRB
All well and good, then on your quiet day when you have laid people off, you suddenly get slammed, and customers have to wait too long, then they don’t return!!! Answer me that one?
They probably also do other bad practices, like skimp on ingredients and anything else they can to drive the customer away.
I need some help Ryan
What can I help you with?
Who's gonna watch your restaurant when you're in Hawaii?
How can tell you never had work outside before?
I am sorry, but I don't fully understand your question. Can you provide more details?
so the workers get their hours cut while the boss is chilling in Hawaii
Rewatch the video, please - not the point at all.
Theorical ??
Sure but also factual...just do that math.
Every money saved in labor cost is another money less in income of a staff. If that money saved is for staffs incentive for the end of the year that industry will be better or maybe just continue tranning the staffs because everyone just come and go.
Training is definitely key! It helps with employee satisfaction & retention.
Why not just pay the employees minimum wage? That's like 10 trips to Hawaii.
If you do that, you will be spending all of your time rehiring employees vs. having the time to to go Hawaii.
Yeah as the owner you get these things. The manager doesn't.
this is alsome
cool
quickly its 3 minutes
I have been working in the restaurant as cook/ chef for 8 years , you are the reason why this Industry is hopeless. Your video is just talking about how the owner can save money to go to vacation by exploit the labor. Cost down by cutting labor’s hours or wage/H. Shameful!!!!
Imagine you work in the kitchen , 12 hours a day , no holiday , work in the weekend , stand 12 hours , only eat leftover employees meal, kitchen is 104 F hot, you are sweating like taking showers , stress, chef is yelling. And what you get pay is 12-14 dollars / h and no 401 k and no insurance , no other benefits, I am talking 90% of restaurant in USA. That is why no people want to do it . Think about it , the people who work in the kitchen and passion at cooking , expecting they can open their own restaurant , how can they open their own business with such low pay? Tell you what ? They can’t even pay their bill!!!! That is why so many people leave this industry, your labor is the most important asset , not the ingredients, not the table or chair , not facilities, without those people , you can’t do shit .i have seen great cook , who has passion and experienced, working in Michelin star in NY, only get paid 15 dollars per hour and no benefit, this is so sad. I can’t even understand how can some people start to say “as long as they like their job, that is fine “ or “ proud of working in the kitchen because of passionate even it pay sucks ...... “
Hey, you have to know, most of people can’t handle kitchen job. I am talking about real restaurant , not fast food, the restaurant which ask you to cook 20 different things in the same time and everything has to be perfect , perfect speed, perfect temperature , perfect plating.
Thanks for the comments. Here is the reality, when you have a defeatist attitude and believe that the world is out to get you, you will always be a victim. I did work in kitchens 12 hours a day, I did work for less than minimum wage. I would come to work 2 hours before my shift and clock out 2 hours after my shift making $5.15 an hour. And I shut up, did my job, learned, grew and got better and better jobs. I educated myself and I am where I am because I always had the attitude that business is designed to make money and if I can help them make money I am more valuable to them. You are right, pay does suck, but here is also the reality. My hours NEVER got cut, other did, but mine never because I was the hardest working person in the kitchen.
@@Therestaurantboss damn I just left a lengthy comment on being the hardest worker and getting my hours cut. I agree with you. Getting $4 over minimum wage on 40 hours and my rents still 45% of my income, it's rough out here. I feel like even after I dehumanize myself for the next 2 plus decades I'll have nothing to show for it. But then there's education.
Bottom line: Get to Hawaii
The math thou~
looking like you came off of superbad
Labour cost shouldn't more then 14 percent
Hawaii business trip write off on tax, and the business associates is your family... Which they are 😎
That 50$ dollars a day could very well be just as useful to the workers. While i'm not advocating running into the red ink for a business, squeezing employees for every minute and every dollar is NOT a good way to run a business. Calling people in and taking people off the schedule on short notices when the job, their paycheck, is their livelihood is not something to change and fluctuate on a daily basis.
Hi Ryan, I been following your content a few weeks and I am 3months in running a restaurant in Jamaica. I need your help. what's your email
what do you need help with? You can schedule a strategy session here: therestaurantboss.com/start-here-a/#strategy_session.
Managers adjust my hours manually. They shave off money from my paycheck....
I'm so sorry to hear that :( Definitely not what should be happening.
-Dawn, Team TRB
@@TherestaurantbossThank you, you're right. (Yikes, cutting workers when it's slow makes you unreliable as an employer. May God have mercy on your business.)
So freaking vague...
I doubt a small restaurant owner will ever go to hawaii
Why do you say that?
hey very good advice and I'm not trying to hate but it will be more professional and it will seem like you know what your talking about if you weren't reading and actually looking in to the lens of the camera and talking to the viewers.
Thanks man, I don't read off anything and do my best to look at the camera. This video was filmed 3 years ago. We get better everyday.
+Awake And Aware Reports - a little grammar studying would make the difference between you 'knowing your shit' and 'not knowing you're shit'.
Hahaha thanks for the heads up
But man I wrote that last year in November
The Restaurant Boss gotta love people to watch your free content and then complain 😂
what is "theorical"? lol, you mean theoretical, my friend.
+jordan sabo I never said I was great at spelling.
Pronunciation not spelling...Couldn't take the vid seriously after hearing that. People, here's the gist of the video: watch your numbers and you can go to Hawaii
+jordan sabo "couldn't take the vid seriously after hearing that"
As if it matters at all. He is offering free content to help with running a restaurant and you are dismissing the entire video off of one word...
People always trying to "teach something" to someone that's giving away knowledge.
So why call out the mispronounciation if you knew. #focus
B.s.
So I see your sales are weak. Strengthen sales and you won't need to be "Penny Annie" anymore.
bro I watch ur videos sometimes
but u do sound like an academic and wanna sell something, sorry didn't mean to be rude
Sorry you feel this way. I tend to get pretty passionate about the subject and perhaps that's what you feel is "salesy". It's your choice to watch or not, however.
you dont know if a 33% labor cost is good or bad?? lmao.....
depends on the business. Some restaurants in casinos actually allow up to 30-35% in labor cost. Small business tho would have lower. So thats what he meant pretty much by her doesnt know if its good or bad.
poor advice
bullshit idea. this is not a way do business.
I'm trying to get my management team to do exactly what you spell out and wanted them to view this but the Hawaii comment ruins the whole piece..."so now our owner just wants us to watch costs so HE can go to Hawaii."