Keeping your wage costs under control is a necessity in this industry- due to business flow changing at any moment, it remains important to rely on crunching numbers.
The last thing you want is to end up in heavy debt, with money management falling behind and stock being low at a daily rate- so tackle your payments from the beginning and be sure to make those tough cost decisions with a few tips;
Watch The Clock
You must keep the ball rolling on wages, by schooling yourself before any business has even begun. Your staff rely on you to maintain their salary and keep the cash flow in- as they stick to their scheduled roster and service duties. However, if management is all over the place, time issues can arise and slowly turn into a bigger pay issue than expected. If staff happen to be signing in early or clocking out later, then their pay will automatically boost, unless someone is watching the clock and noticing which behaviour is called for. It may be beneficial to go over the roster and see if time is being used efficiently, with meal and floor prep- if not, staff’s hours might need to be changed around as a better option.
Pursue Productive Staff
Reliable, fast paced and productive staff won’t stick around if their left to carry the team during every shift. This type of staff member wants to be part of an efficient team, where motivation and results are kept at a high level. It is likely that a few staff members may slack off during their shift, but it’s important that management are able to pick the most consistent staff to keep on service. They may cost a little more in the long run, but it’s worth the cost, as you might be splurging a high amount on a lazy employee that merely gets away with it. So, leep on the lookout and engage with your employee’s in order to get a better idea of their perspective and job habits- because losing a few members could be beneficial.
Adjust and Track Costs
For an accurate understanding of where each payment is going, set up a detailed spreadsheet to manage stock and outsourced products, whilst moving the weekly roster to an online platform. This allows costs to be adjust at a daily rate, as management is able to monitor and track every cheque that goes through the system. In terms of rostering, detailed online sites could be a lifesaver- try ClockIt or QuickStaff for a thorough outline of where each employee should be and how their payment will look by the end of the week. This type of engagement allows management to apply their roles in more advanced way, leading to better adjustments to pay roll and a clearer insight into which areas need to be cut in cost.
Quality over Quantity
Re-doing menu prices may be required, as quality products can be either appreciated or kept at a distance by incoming customers. If it looks like the rib-eye is $1 too much, then scratch it off, because it could just buy you a few more customers. This all depends on where your pride lays, if you know the product has been sourced and finely dealt with then don’t touch those numbers, but be sure to work harder on your marketing scheme!
Create Your Budget
Overall, you must know your final numbers. In terms of stock, if there is a decline or increase in business then of course these numbers will significantly waver- so be sure to add for more than expected. Next, each area of service needs to be budgeted for, for floor staff, ranging from expertise their pays need to be monitored, bar staff will also note how many employees’ they need on certain nights, along with the Chef’s. There needs to be a balance maintained within the venue, hours cannot go through the roof because the head chef or the bar manager relies on others to make the night go smoother- there much be efficiency and overall payment management to keep costs tallied.
These tips can be integrated with ease, as long as the appropriate time has and research has been put into your venue’s set up and scheduling processes. Also keep in mind that maintaining a profitable margin can seem quite unimaginable in the beginning, but following a detailed plan may just help you in the long run.