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Warren Daniel Seacoast Regional Director NH-SBDC

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Presentation on theme: "Warren Daniel Seacoast Regional Director NH-SBDC"— Presentation transcript:

1 Warren Daniel Seacoast Regional Director NH-SBDC
Restaurant Tools Warren Daniel Seacoast Regional Director NH-SBDC

2 Source: Restaurant Finance Monitor. http://www. restfinance

3 Industry Considerations
Technology Types of Restaurants Industry Standards Labor Cost Solutions Food Waste Solutions Startup Pitfalls

4 Technology More restaurants byte into technology
POS Systems (see handout)

5 Types of Restaurants Full Service Quick Service Restaurants (QSR)
Fine Dining Family Restaurants Quick Service Restaurants (QSR) Fast Food Coffee Shops

6 Industry Data Resources
IBISWorld Businessrg.com Restaurant.org (National Restaurant Assoc) Restfinance.com Qsrmagazine.com

7 Industry Standards: Cost Drivers
Independent Restaurant Average Based on Experience, Business Resource Guide & IBISWorld Type of Business Revenue/ Employee Wages Purchases Prime Costs Marketing Rent & Utilities Location Considerations Single Location, Full Service $52,600 33-35% 28-35% less than 65% 2.2% 9-10% Rent less than 8% Quick Service Restaurant $55,000 30% 32% 60% 2.8% 6-8% 10% Catering $44,400 25-40% 2.0% 5.4% Location does not have to be prime

8 Industry Standards: Labor Costs (Generalities)
Includes employee wages, salaries & benefits Second highest cost in food service industry (after food/beverage costs) Target: 30-35% of total sales (10% manager salaries, 20-25% hourly employee wages) Source:

9 Labor Cost Solutions: Manage Seasonality
Costs fluctuate from busy to slow season Average the weekly labor costs to get monthly costs Use monthly averages to obtain annual average Busier periods see better labor % vs. sales Excellent customer service when busy is key! Staff accordingly

10 Labor Cost Solutions: Minimize Overstaffing
Cut down to “skeleton crew” when possible Discuss labor cost concerns and goals with everyone involved in scheduling Partially base management bonuses on reaching budgeted labor percentages

11 Labor Cost Solutions: Employee Productivity
Low productivity at slow times drives up labor costs Cross-train employees Front-of-the-house: train some wait staff behind the bar  Don’t need to staff bartender during slow times Back-of-the-house: train staff on multiple food stations  One person can work multiple stations on slow nights

12 Food Waste: Top Three Culprits Driving Waste
Overbuying Fear of Running Out Poor Knife Skills

13 Food Waste Solutions: Minimize Overbuying
Can’t waste food you don’t buy Use production sheets – collect data Cross-Utilize Menu items Forecasting

14 Food Waste Solutions: Smart Menus
Plan A, B & C for all purchased items Avoid single use ingredients Cross utilize as many ingredients as possible Menu according to season, weather, local events Test potential new menu items

15 Food Waste Solutions: Production Sheets
Staff should know amount to prep each day Forecast based on collected data Use production sheets to order smart

16 Food Waste Solutions: Track Waste
You can’t fix it, if you don’t know it’s broken Base future orders on past data Tracking waste is eye opening Tracking leads to goal setting

17 Food Waste Solutions: Proper Training Is Key!

18 Startup Pitfalls Overspending on equipment – consider used options
Overspending on technology too soon Spend on marketing! Remodeling/Decorating is expensive! Food Expenses Work out systems prior to opening Evaluate your menu Identify areas of waste from Day 1!

19 Warren Daniel Seacoast Regional Director Warren.Daniel@unh.edu
Thank you Warren Daniel Seacoast Regional Director


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