We have a Pizza, pasta and wings restaurant open from 11am to 10pm and have a conveyor cooking line,
On a busy nite Fri Sat we have a 1)dishwasher/busser, 2)fry, 3)catch, 4)kitchen orders, 5)Pizza Prep(lead), 6)dough, and in the front 2 counter girls.
Thats 8 employees
On a regular nite we have 5 1)dishwasher/busser, 2)fry,catch, 3)kitchen orders and dough, 4)Pizza Prep(lead), and in the front 1 counter girl.
Thats 5 employees
During days 1 guy in back 1 guy in front and 1 counter girl (and myself and sometimes my wife)
Does this seem normal to everyone? or too much or not enough.
(We average 50 tickets on a regular nite and 85 to 135 on a busy nite
40 at lunch)
The actual number Kevin doesn’t really mater. Are you making money at these levels? How many hours is each person putting in? Are you giving good service at these levels? Can you get by on less labor? What is your goal from the question?
My goal is to find out if other restaurants are running the same as myself or am I making mistakes that are costing me $.
Thats why it MATTERS
You need to be running labour at approx 25% of sales.
Work out your sales then work out the labour - if its more than 25% you need less staff, if its less than 25% your fine.
The actual number of staff doesn’t really mean much by itself.
Maybe I looked over it, but do you account for salaried managers, or is this taken care of by your wife and yourself? We look at 14-16% for hourly staff and roughly 9% for salaried managers. So the 25% projection that was posted isn’t a bad figure to shoot for.
If you have no manager expense, or are funneling that expense back into yourself, then it should be much lower, probably no more than 18-19%.
what is “catch”
also what are sales instead of tickets and what % dinein vs takeout vs delivery
I think he’s talking about an oven tender.
Another way to figure productivity (as I’ve stated before) is to do a Labor Yield:
LY = Net Sales / total hours worked.
Not efficient…below $20
Kinda efficient…$20 - $25
Pretty efficient…$25 - $28
efficient…$28 - $32
extremely efficient…$32 - $35
Godly…$35 and up
This will give you a harsh reality check to let you know how you’re doing. -J_r0kk
Please give me some guidence here I did the numbers and got $44 so i want to make sure I am doing it right.
net sales = sales minus discounts
labor = all hours worked that time period includine salaried
Is this right?
That’s right, brotha.
You have a $1,000 day and run 25% Labor. You count hours worked for the entire day (in-store, drivers - day/night) and come up with 35.
$1,000 / 35 = $28.57 Labor Yield
P.S. If you’re at $44 LY, your labor % on a night like this would be 19.32% (paying average wages of $8.50/hr).
I use contract drivers so how would that affect the equation?
None whatsoever. As long as you can account for them being present and accounted for, simply add their hours with the hourly and salaried crew. To be accurate, you will need to do this because you want your TOTAL production hours. -J_r0kk
so if i have a 1500 day and have 49 man hours what does this work out to be
i mean how can i figure this out
wait staff=24 hrs @ 3.90 hr
kitchen=20 hrs @ 9.00 hr
driver=5 hrs @ 7.00 hr
1500 / 49 = $30.61 Labor Yield
Should I count my own hours? I mean, I work for free so does that count?
I’d say count every hour spent working by anyone. Those hours are required to produce the end resulting dollars. You might get a very skewed perception of labor costs and manhours if you leave off your “free labor” hours.
Yes, you count EVERYONE’S hours… especially yours. I know that’s one thing that I had to come to grips with in my store: My labor yield isn’t going to be above $30 because I personally, am not very productive. I’m more of a supervisory memember of the staff and customer service oriented, but I’ve still got to count myself.
With that being said, I hold my managers accountable when they run shift and I’m not there. Actually, I can’t say that… they hold themselves accountable. My guys consistently run better labor than me on my shifts. LOL. -J_r0kk
When calculating Labor. Do you guys add in
- Workerscomp Insurance. Its variable based on hours/jobs.
- Employee Benefits/Insurnace
- Delivery Fees (variable again)
Or do you just wait until you run your P&L to figure these costs into your labor? So if your running a 18% labor all month long and then you run your P&L, add those costs in… Your labor is going to go up a few percent. So your goals should actually be lower by a few percent then one would think, to take into consideration the above items.
For a 2k night we would typically need
1 Dough/Sauce Prep
2 Pizza Makeline
1 Cut Station
1 Manager (typically fills a station)
This is pretty much the minimum amount of staff we need, since we have a variety menu and it’s just very inefficient to have people running around from one station to the next.
However, if sales were to increase to say 3k, we only only have to add in maybe 1 more driver, and 1 more server. This kitchen staff is more then capable of handling a busier night then 2k but 2k is borderline where your busy enough to need those people but still slow enough to have a high labor.