It seems as if that extra day in February this year may have been helpful for many restaurants, according to the National Restaurant Association's latest index report.
You may be keeping the books for your restaurant in-house, which takes a certain number of hours each day, week, and month. You may also have someone on staff or in your immediate family handling the accounting needs. At some point, maybe you decided to outsource your payroll or you installed a new point-of-sale system to track hours. Shortly thereafter, as your business began to grow, you found another service to handle tax preparation and filing.
This type of piecemeal approach for handling your financials can sneak up on you in a hurry. And while you may be making the right decisions in the moment, such an approach is not ideal for long-term profitability and growth.
The restaurant industry tends to experience high employee turnover rates compared to other labor forces, which puts a strain on owners and managers to recruit, train, and retain top talent within their local labor pool. The latest numbers from a National Restaurant Association report indicate a turnover rate of 66.3% in the restaurants-and-accommodations sector, compared to 44.4% overall in the private sector.
Restaurant margins are slim. To maximize profitability in today’s economy, you need an accounting service that acts as a true business partner -- one that is as concerned about your restaurant's success as you are in each stage of growth for your business.
Creating a weekly schedule in the restaurant business is an arduous task -- you have to consider employee availability, peak hours and days, upcoming local events, potential employee training, and even elements outside of your control, such as severe weather.
Many operators will use a POS system or scheduling software to help them in the process. Others may still be using a hand-drawn matrix to complete the task. Regardless of the system you have in place, if you are not using sales projections as part of the criteria for scheduling employees, you may be leaving money on the table in terms of labor cost as a percentage of sales.