Page 52 - #49 English

Management

Story by: Ed Arvidson / Photos by: coffee t&i Thailand
Controlling Your Employee

Labor Expense

To make money in a foodservice business, you brisk business, you’ll run the risk of delivering inad-
must control your cost of goods, and you must control equate service, and not being able to serve customers as
your employee labor expense. Typically, 30% to 35% of quickly as possible. Slow or poor service will definitely
the income from sales will be spent on the products you hurt your business!
used to generate those sales, and another 25% to 30% So, controlling labor begins with writing an em-
will be spent on labor. Or, think of it this way: 55¢ to ployee schedule based upon your historical hourly busi-
65¢ of every dollar you earn will be used to pay for those ness volume. Go back through your cash register tapes
two expenses. You must control them to maximize your for the last 3 or 4 weeks, and calculate what your average
profitability! We’ve talked in previous articles about how hourly sales were for each day of the week. For example,
to control your cost of goods, so this month let’s focus on if your sales between 12:00 PM and 1:00 PM for the last
controlling your labor expense. four Mondays were: $287, $305, $253, and $295, then the
While the obvious goal is to keep your expense average is $285. ($287 + $305 + $253 + $295 = $1,140 ÷
for labor as low as possible, this must be balanced with 4 = $285.) Then, after you calculate average hourly sales
having enough employees working to provide good cus- for each day of the week, plot that data on a chart similar
tomer service… at all times! If you do not have enough to the one shown below. You’ll need a sheet for each day
employees on the clock, especially during periods of of the week that you are open for business.

MONDAY < 5:00 AM < Open @6 < 7:00 < 8:00 < 9:00 < 10:00 < 11:00 < 12:00 PM < 1:00 < 2:00
Avg.Sales (Last 30-Days) N/A $45 $185 $164 $ 122 $ 58 $ 22 $ 285 $ 71 $ 4
MANGER
Baker / Food Prep Cook
Barista (Opening)
2nd Barista
Cashier (Opening)
Barista (Afternoon)
Cashier (Afternoon)
Barista (Closing)
Cashier (Closing)

52