Business VS Home Finances

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Is running your business that far off from managing your own finances? The key to success is having a plan. Whether that is creating a budget in order to monitor expenses or creating a retirement plan (investor payback), setting benchmarks for 5 or 10 years down the road will lead you towards a path of success. Click here to see how Kerry Hannon of the NY Times maps out a retirement plan that encourages you to think into the future. While reading this think about how a plan like this can apply to your business. Do you have goals for 5, 10, 20 years down the road? Once your business start turing a profit how will you allocate those earnings?

Operations, Part 2 of 6: Labor

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In part 1 of this series we linked you to a quick video, provided by Bon Appetite, that went behind the scenes of a Chick-Fil-A. Now this may not touch home with everyones operation but hopefully if made you start to think about all of the moving parts to your business and how everything is interconnected.  In todays column, we highlight one of the most critical elements to any business- Labor.

According to the National Restaurant Association’s 2016 Restaurant Operations Report, labor costs make up a third of sales in a typical restaurant. This means that any increases in labor costs can have a significant impact on your bottom line.

To cut down on unnecessary spend, make data-driven staffing decisions. Excellent customer service and staff retention are always top priorities, and your staff are on the front lines of the customer experience. Equip your employees with information they need to perform well, and strategically place them in roles where they are needed and feel passionate.

  • Compile data. Get granular with it. Dive deeper than simply identifying your restaurant’s peak service periods. Look for any overtime trends in your restaurant, and then determine how to get those numbers down without negatively affecting your operations.
  • Avoid over- or under-staffing. Too many staff standing around the dining space can be off-putting to guests, and not enough staff in front- or back-of-the house can lead to bottlenecks and frustrated customers. Analyze your data, and make adjustments accordingly.
  • Stagger departures and arrivals. Instead of setting block schedules that have singular arrival and departure times per shift, consider spreading out scheduled clock-ins and -outs by about 15 minutes for select positions. This can help eliminate the chance of not having enough employees on the floor.

This article was adapted from the Nation Restaurant Association and can be found here