How Your Restaurant POS System Helps You Cut Labor Part 4
How to Solve Your Restaurant's Cost and Management Challenges: https://dsp.coach/transformation-trai...
How Your Restaurant POS System Helps You Cut Labor --- Picture this: it’s a busy Friday night, getting late in the day, around 8 or 9 p.m. You close at 11 or 12, and you see a sea of people in your restaurant. You think you need all your staff, but your eyes might be deceiving you. Step four in this series about cutting labor cost is all about auditing sales every hour so your management team knows when to cut staff properly. With today’s POS systems, you can check this data every 15 minutes. The information at your fingertips is incredible.
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Welcome to my YouTube Channel. I am David Scott Peters, a restaurant coach and speaker who teaches restaurant operators how to cut costs and increase profits with my trademark Restaurant Prosperity Formula. Known as THE expert in the restaurant industry, I apply my no-BS style to teach and motivate restaurant owners to take control of their businesses and finally realize their full potential. Thousands of restaurants have used my formula to transform their businesses. To learn more about me and my coaching program, visit http://www.davidscottpeters.com.
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Waiting too long to cut staff can severely impact your budget. Remember, every minute worked is money leaving your bank account. So, what should you do? Learn how to use your POS system to help cut labor costs efficiently during each shift.
Monitor Your POS System Regularly
Every hour, at a minimum, check your timekeeping data. This will give you insight into your current labor costs. Look at what you’re paying people divided by the sales that have come in. This data helps you understand when the rush starts and ends.
You might see a sea of people, but they may have finished eating and aren’t buying drinks or desserts anymore. As you see sales dropping, you can start cutting staff. For example, in a full-service restaurant, you might say, “Server number four, start on your side work and let server number three watch your station.” This ensures no guest is left waiting, and your servers are ahead of the game.
Kitchen Efficiency and Cross-Training
Pay attention to your kitchen staff as well. In most states, the cost of kitchen production can be significant, especially where there is no tip credit. It’s crucial to stage cuts in the kitchen properly and have cross-trained staff. If you cut a grill person but don’t have anyone else who can handle the grill, you’re in trouble. Ensure your grill person is also trained in frying, so they can manage multiple stations if necessary.
Implement an Early Out Sheet
To simplify the process of sending staff home, consider an early out sheet. This is a clipboard system where employees sign up if they are willing to leave early. This method makes it fair and easy to manage. However, set clear boundaries: if someone asks to leave early once, make them wait. If they ask three times, they’re closing, and someone else goes home.
Stay Ahead of the Game
Be proactive about monitoring your sales and labor costs. This way, you can get ahead of the game instead of reacting too late.
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