2. Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

3.  Direct: salaries, wages, tips, bonuses, commissions  Indirect: paid vacations, health benefits, life insurance, free meals, free living accommodations, use of employer- operated recreational facilities, discounts on accommodations at other properties within a chain

4.  Pension benefits  Social Security

5.  Labor turnover rate  Training  Labor legislation  Labor contracts  Use of part-time staff  Outsourcing  Sales volume  Location  Equipment  Layout  Preparation  Service  Menu  Hours of operation  Weather  Competent management

6. Labor turnover rate = Number of departing employees ÷ Total number of employees on staff Break-even for staying open an additional hour = Fixed costs ÷ (1 – Variable rate)

7. Wages:4 dishwashers × 35 hours × $7 per hour = $980 Benefits:$980 × 20% = $196 Total labor cost: $1,176 With all full-time staff

8. With full-time and part-time staff Wages:2 dishwashers × 35 hours × $7 per hour = $490 Benefits:$490 × 20% = $98 Full-time dishwashers Wages:10 shifts × 7 hours × $4.50 per hour = $315 Benefits:$315 × 10% = $31.50 Total labor cost:$934.50 Part-time dishwashers © John Wiley & Sons, Inc. 2009