So far our labor series has touched on the need for emphatic leadership & positive modern company culture in restaurants. However, we have yet to discuss why restaurants ALSO need to modernize how they look at their P&L. It’s time to ditch looking at labor costs as a percentage of gross sales. Your focus should instead be on employee productivity, zoning in on a ratio of labor costs to people, rather than labor costs to sales.
To help us explore the importance of data in modern restaurant operations, we have invited Jim Taylor to the show. With our host, Jen Kern, they will discuss the importance of data in measuring restaurant success, the impact of a people-first approach, and the need for benefits packages for restaurant employees.
Jim Taylor is the CEO and Founder of BenchmarkSixty. After 20 years in restaurant operations, Jim is now helping restaurants change the way they look at and manage labor costs in order to protect both people AND profit!
A modern restaurant is one that is can provide a quality experience for guests with efficient use of labor. By thinking more about the output and productivity of a restaurant, operators can eventually predict how many employees are needed to get the job done.
“Once we identify the number where you want to see the business land, it’s just about hitting that number every day. And we can accurately predict what will happen because if the number gets too high, essentially, what that means is that your staff is working too hard. The output level is too high. And if you think about that in terms of experience, it probably means you’re either short-staffed, or the staff has too big of a section. This, in turn, is likely to create a negative experience for them, and there’s a very good chance it’s going to hurt service.”