11

Take Back Your Budget:THE KEY TO YOURPROFITABILITY IN 2020Presented by Restaurant Systems ExpertDavid Scott PetersFounder, DavidScottPeters.com

Workshop Session 3 - Labor

2AGENDAWhat You’ll Learn

How to easily give up scheduling without giving up control of you bank account

Why a budget is the ONLY way to know where YOUR labor cost should be

How one simple report will have you going into the week on budget

How to discover you labor efficiencies and opportunities to cut labor

The importance of and how to read your weekly prime cost budget variance report

Demo/walk-thru of three powerful solutions to help you reduce your labor cost 1 – 3%!

3

LABOR ALLOTMENT SYSTEMSCHEDULING ON BUDGET

3

4

LABOR CONTROLS

28.89%ANNUAL TARGET

Manage to Raw Labor Targets from Budget by Month, not Year

5

Manage to Raw Labor Targets from Budget by Month, not Year

32.56% 19.53% 27.61%

Annual Labor Target

LABOR COST

28.89%

LABOR CONTROLS

6

LABOR CONTROLS

BUDGETING LABOR WITH THE LABOR ALLOTMENT SYSTEM

• 200k month

• 50k week

• Show maximum coverage

• Management Salaries are $3,000

• Budgeted 30% Labor Cost

• Average hourly wage of $7.45

ASSUMPTIONS• How much money are we budgeted

for total labor?

• How much money are we budgeted for labor less manage?

• How many hours can we schedule?

• How many hours does each department get?

• Based on Avg wage by department, what are labor cost and labor cost percentages?

EXERCISE

7

LABOR SUMMARY REPORT

LAST WEEK FOR NEXT WEEK

LABOR CONTROLS

8

How much money is budgeted for total Labor?1

How much money is budgeted for Labor less management?2

LABOR CONTROLS8

9

LABOR CONTROLS

How many hours can we schedule?3

9

10

LABOR CONTROLS

How many hours does each department get?4

10

11

LABOR CONTROLS

Based on average wage by department, what are labor costs and labor cost percentages?5

BUDGET $12,000.00

DELTA $(4.59)

11

Labor Allotment SystemDemo

12

RESTAURANT PAYROLL GUARDIAN

13

Adjust your schedule by hours to go into the week on budget

x 52 weeks = $10,743/year!

LABOR CONTROLS

-14.19 Hours

14

From monthly targets come your weekly/daily targets

Labor target, less salaried management

Schedule for the needs of the business

Adjust the schedule to be on weekly budget

LABOR CONTROLS14

39.58% 32.24% 26.27% 27.98% 25.70% 28.84% 33.40%

Weekly Target

28.77%

01 02 03

15

LABOR CONTROLS

DOLLARS PER LABOR HOUR WORKEDFINDING YOUR EFFICIENCIES

15

16

Calculating Dollars Per Labor Hour

LABOR CONTROLS

17

Adjusting to Your Target Dollars Per Labor Hour17

18

Adjusting to Your Target Dollars Per Labor Hour

Dollar Per Labor Hour

Target

WEEKLY TARGET

$103.88

LABOR CONTROLS

19

BUDGET VARIANCE REPORTTHE REAL PAYOFF!

MANAGER MEETINGS - 7 STEPS

07 Measure Your Results

01 02 03 04 05 06

7 STEPS TO A SUCCESSFUL BUDGET

20

Prime Cost Resources

Search the Resource Library…

Templates, instructions and Online Courses to teach you how to implement weekly prime cost reporting.

21

See Your Sales TrendsInstantly see how close you came to your

sales forecasts

Measure COGSKnow your cost of goods sold by category

each and every week

Measure Labor CostsKnow your labor costs and how closely

you managed to budget

Know Your Prime CostMeasure your success weekly!

Find and Fix ChallengesWhen the numbers don’t look right, easily discover where the errors are

Proactively AdjustWhen you miss your targets, you can create a plan to make it back up over the next few weeks

Coach Your TeamFind out who on your team needs coaching on the systems to get results

Make MoneySTOP throwing your profitability to luck and start making the money you deserve

BUDGET VARIANCE REPORTThe payoff to implementing and using systems

Implementing systems takes time, effort, management buy-in and strong leadership. There are no short cuts to getting the results you want. The key

is to trust the process, keep moving forward and never letting up on the gas peddle. Understand that it doesn’t matter how long it takes to get the

systems in place, what matters is that you don’t let excuses stop you and then you keep using them every day. Follow your plan and you WILL have

the financial success you’ve been wanting!

MEASURING SUCCESS

BUDGET VARIANCE REPORT

MEASURING SUCCESS

BUDGET VARIANCE REPORT

MEASURING SALES

BUDGET VARIANCE REPORT

25

Key systems

• Budgets• Sales forecasts

Look at your budget. Are sales trending up or down? Is this trend out of your control? Do you need to adjust your sales forecast to better plan?

Plan sales your sales increase. Instead of just accepting what walks through the door each day, you’re supposed to create and implement a plan to increase your sales.

Budget VarianceSALES

MEASURING COST OF GOODS SOLD

BUDGET VARIANCE REPORT

27

Key systems• Budgets• Sales forecast• Track daily sales by category• Paid out log• Invoice log – track by product

Do an eyeball evaluation. Do your numbers look off? If so, you need to look for the error(s).

Check your product usage. If the dollars value of the product use is extremely high, was it counted by the wrong unit of measure, ie. counted ounces with a case price.

Are your purchases missing. If you find there is a negative usage of a product, you started with 0.5 cases, purchased 0 cases and end with 1.5 cases you would have a -1 case use. You may be missing an invoice.

Did you purchase from a different vendor. Does a product usage look wrong because you haven’t combined the same products from different vendors.

Budget VarianceCOST OF GOODS SOLD

• Batch recipe costing cards• Shelf to sheet inventory• Waste sheets• Key item reports

Advanced systems• Recipe costing cards• Menu analysis• Ideal vs actual product

usage

MEASURING LABOR

BUDGET VARIANCE REPORT

29

Budget VarianceLABOR

Key systems• Budgets• Sales forecast• Track daily sales by

category

• Labor allotment system• Schedule variance report• Labor tracking system• Dollars per labor hour worked

system

Schedule the week on budget. Go into the week on budget using the labor allotment vs bringing people in and praying your busy. Key is getting your schedule variance report to zero.

Look at effiencies. By looking at dollars per labor hour system, you will be able to identify what days of the week you need to cut labor hours based on production.

Track labor daily. By tracking each shift, you will see where your labor costs are by day of the week vs waiting till the end. Now you can make small changes over several days to get back on budget.

Look at effiencies, again. By looking at dollars per labor hour system, you will be able to identify what shifts went according to plan and what shifts you need to coach a manager on cutting.

MEASURING PRIME COST

BUDGET VARIANCE REPORT

By only being $658.15 over budget this week, that translates to an almost $32,000 annual loss!

31AGENDAWhat You Learned

How to easily give up scheduling without giving up control of you bank account

Why a budget is the ONLY way to know where YOUR labor cost should be

How one simple report will have you going into the week on budget

How to discover you labor efficiencies and opportunities to cut labor

The importance of and how to read your weekly prime cost budget variance report

Demo/walk-thru of three powerful solutions to help you reduce your labor cost 1 – 3%!

January 2020 – Week 1

S M T W T F S

12 13 14 15 16 17 18

January 2020 – Week 2

S M T W T F S

19 20 21 22 23 24 25

January 2020 – Week 3

S M T W T F S

26 27 28 29 30 31

Take Back Your Budget:The Key to Your Profitability

ONLINE LIVE WORKSHOP SERIES JANUARY 2020

January 14 – WORKSHOP SESSION 1• Seven steps to creating a budget

• Demo of Restaurant Sales Forecast Generator

• Demo of Budget Builder MVP• The one number you must know• The importance of a good COA• The key budget related systems• YOUR QUESTIONS ANSWERED

January 16 – LIVE GROUP Q&A90 mins of your questions answered

January 21 – WORKSHOP SESSION 2• Reducing food cost by 2–3%

• Demo of Restaurant Checkbook Guardian

• Demo of Key Item Tracker• Demo of Waste Tracker

• Food cost calculation, plus four• Calculating ideal food cost• Why knowing ALL three food cost

numbers is critical to your success!• YOUR QUESTIONS ANSWERED

January 23 – LIVE GROUP Q&A90 mins of your questions answered

January 28 – WORKSHOP SESSION 3• Reducing labor cost by 1–3%

• Demo of Restaurant Payroll Guardian

• The key labor report for results• Busting the labor costing myth• How to discover your efficiency• That which we measure improves• YOUR QUESTIONS ANSWERED

January 30 – LIVE GROUP Q&A90 mins of your questions answered

Time to answer your questions…