Controlling payroll costs in food service operation

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Reference no: EM132226357

The wages and salaries of all your staff, from your head chef to your waiters, will determine your labor costs. This can include payroll taxes,labor worker’s compensation, and group insurance benefits. The most important element to balance, that will help control your labor cost, is to figure out exactly how many employees you need each week in order to provide effective service without over scheduling. Depending on how busy you are, every restaurant needs a chef, some servers, and hostess. This category offers significant cost containment opportunities. Labor costs can be improved with knowledge of a required resource allocation to demand, over-time prevention and continuous improvements in productivity – employee, or physical components of the business, e.g., labor saving equipment, optimized floor plans, etc. A smart restaurateur will figure out how to have some control over the amount spent on labor expenses, making a determination on which employees are an absolutely necessity to have on the payroll full time.

1. Discuss different ways you see yourself controlling payroll costs in a food service operation.

2. Can the Danny Meyer philosophy of hiring the right "person" assist in the process?

Reference no: EM132226357

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