Research about managing the lablour costs of food production - Speech or Presentation Example

It is important to note that a restaurant operating on a labor cost which is as low as 20 percent has a promising future. If levels of labor cost begin to rise, the company should begin to seek on ways of lowering lest it cause a sham to the business. During my work experience at Royal restaurant, if the restaurant made a total daily sales of $10 000, then it had to spend no more than $2 000 paying for labor. Although employees’ salaries which match the volume of sales may help ease the labor costs, key issues such as improvement of productivity at workplace and wise roster plan of employees yield marvelous results.

While working at Royal star restaurant, it was a common rule that if the number of customers visiting the restaurant was below 200 per day, the daily sales were over $8000.This also meant that the hotel spends less than $1500 on labor cost. Rostering allowed the hotel to know the working hours of part time workers while comparing it with the sales made during the time. If for instance the sales reduce, the number of part time workers was reduced to cut the cost of labor. Other issues that help control labor costs include, cross-training employees, performing frequent staff audits and reviews, employing adequate employees among other measures.

Championing Labor Cost Awareness This is normally calculated from the volume of sales made. Labor costs percentage can be calculated as follows: A restaurant that hopes to run successfully must seek to operate at a minimum labor cost percentage that is below 20 percent. At Royal Hotel for instance the labor cost was normally 10 to 16 percent. Cross-Training staff Employee training is vital in any business venture. It is therefore important to cross train employees and the business with a view of equipping workers with vast skills necessary in restaurant service.

This is important because the management can schedule fewer workers to various sectors of the restaurant while still being in a position to achieve same results in the level of production as well as service delivery standards. Cross training can be done by training prep cooks to perform food grilling, training hostess on the work done by the servers and busses to serve food. At Royal hotel, the receptionists were often taken to seminars on public relations and customer satisfaction. Superannuation and Retirement Superannuation is a way of gathering for the retirement of your employees.

This is done by making contributions to the super funds of each employee. In Australia for instance, an average of 9% of the employee’s salary is paid into the employee’s super fund. At Royal Star restaurant, the fund is awarded upon retirement or demise of any staff. Conducting Frequent Staff Audits and Reviews The cost of labor depends on a large extent to improvement and level of productivity. Therefore, it is important to perform regular audits. This can be done by assessing the performance of employees.

The assessment should focus on working days and hours of employees. If found that a substantial amount of time is lost through long breaks or down time, a review should be done to adjust the time accordingly. Care must be taken to aid in proper communication among the employees in helping communicating concerns and ideas. An audit was done after every three months at Royal Hotel. Control Labor Cost With